• Record heat and droughts this summer - which scientists say are exacerbated ​by global warming - have wreaked havoc in power production, shipping and public health systems, while this wildfire season is on track to be Europe's biggest ever.
• Together, the hit to the region's economy can already be ‌measured in the hundreds of billions of euros, economists and academics estimate. But they warn this is just the beginning, as costs are set to rise faster than temperatures.
• Temperatures hit records in June and July, and the ​economic damage will likely exceed all previous marks, economists say. Traffic on the Rhine and the Danube rivers, key cargo arteries, is severely limited because of low water levels; more ⁠than a half dozen nuclear generators have shut or curtailed production due to cooling difficulties. Agricultural yield estimates have been cut with crops harvested late, such as maize and sunflower, suffering a 6-7% loss already in July 2026.
• Heat curtails human productivity and ​has already claimed tens of thousands of lives, with Germany alone reporting more than 10,000 heat-related deaths. Meanwhile, the costs of the emergency response, like fighting fires or curtailing power use, further stretch budgets.
• ING Bank estimates that the halt of traffic on the Rhine ​alone will lower the GDP of Germany, the world's third-largest economy, by 0.3 percentage points this year, while Hungary's MBH Bank sees a 0.1 percentage point GDP hit for every week the country's largest nuclear generator is offline.
• Allianz, the German insurer, estimates the two-week June heatwave alone will cut the GDP of Europe by 0.3 percentage points, and climate change will shave 5-7% off growth by 2030 for the most exposed economies like Spain, France and Italy. “The total bill for this year will be much larger," said Hazem Krichene, an economist at Allianz. "This figure ​doesn’t account for the fires, droughts, different flood events or the expected El Niño." Given that the euro zone is expected to grow just 1% this year, the hit is sizable.

(Source: Reuters)

• On Sunday, US President Donald Trump made clear that inflicting economic pain on Iran is part of Washington’s strategy. “We are only semi-negotiating with (Iran). We are just watching Iran with its huge inflation and the fact they have no money,” he said.
• President Masoud Pezeshkian has frequently warned of the social consequences of Iran’s economic meltdown, and even state media acknowledge the risk of renewed social unrest. As long as inflation, unemployment, declining purchasing power and a sense of inequality persist, “social discontent will continue to reproduce itself,” state news agency IRNA reported last month.
• Earnings are certainly not keeping up with inflation, according to government statistics. The rate of inflation for food has soared by nearly 130% over the past 12 months; the wages of low-paid workers have grown by less than half of that.
• The government has recently warned it may add to the pain by reducing gasoline subsidies, which would trigger a new wave of inflation and potentially lead to higher unemployment.
• Even a swift resolution of the conflict with the United States would take months to feed into a better economic picture, according to analysts. Tehran could secure “up to $20 billion of frozen assets, $8 billion a year from a US oil-sales license, and $5-10 billion a year from Strait of Hormuz fees,” according to the Eurasia Group, a think tank.
• The International Monetary Fund has projected that the Iranian economy will shrink 6% this year, largely due to lost output and physical damage caused by the conflict. At the scale of a national economy, that figure represents an enormous destruction of wealth and livelihoods.

(Source: CNN)

• Sister companies, LASCO Manufacturing (LASM) and LASCO Distributors (LASD), both opened FY2027 with stronger year-on-year earnings. LASM grew net profit by 9.0% to $674.11Mn, while LASD stole the spotlight with a 45.4% surge to $441.95Mn, supported by stronger revenue growth and improved margins.
• LASD took the lead on sales, with revenue climbing 16.1% to $8.44Bn, supported by strong demand across its food, home care & personal care, and pharmaceutical segments. Its export business also continued to gain momentum, underscoring the merits of the company’s diversification strategy. LASM also kept pace, growing revenue 7.2% to $3.13Bn buoyed by demand across its beverage portfolio.
• Importantly, both companies converted higher sales into improved gross profitability, as revenue growth outpaced the increase in cost of sales. LASM’s gross margin expanded by 67 basis points to 39.10%, supported by a more favourable sales mix and strategic price adjustments to offset higher supplier costs. Meanwhile, LASD’s gross margin widened by 95 basis points to 18.31%, helping gross profit increase 22.4%, compared with growth of 9.1% at LASM. The margin expansion across both businesses is particularly encouraging as it suggests that growth is being accompanied by improved pricing and product-mix economics rather than volumes alone.
• Growing the family business, however, came with higher operating costs. Operating expenses increased 15.8% at LASM, outpacing its revenue growth, as selling and administrative expenses rose amid continued marketing and promotional investment. LASD proved more efficient in this regard, with operating expenses increasing at a comparatively slower 8.3%, despite its 16.1% revenue growth.
• Similarly, finance costs increased across both companies during the period. LASM's finance expenses rose 1,098.6% to $19.11Mn, albeit from a very low comparative base of $1.6Mn. Meanwhile, LASD's finance costs more than doubled to $16.33Mn, driven by additional debt incurred to support its warehouse expansion strategy and enhance distribution capacity.
• Looking ahead, the LASCO sister companies remain positioned for further growth, though each is pursuing a slightly different path. LASM’s J$1.00Bn+ capacity investment should support greater factory automation production efficiency and regional export expansion, providing scope for stronger operating leverage as utilisation improves. LASD, meanwhile, continues to build on its expanded warehouse capacity, easing logistics pressures, broadening its presence in higher-margin pharmaceutical and healthcare categories, and carefully managing working capital to enhance shareholder value.
• Continued export expansion across the wider LASCO group also provides an avenue to diversify revenues beyond the domestic market. However, even the strongest families face challenges. The ongoing US-Iran conflict could drive oil prices higher and disrupt global supply chains, creating risks for LASM's raw material costs and LASD's reliance on imported goods.
• Despite LASD delivering the stronger earnings performance, the market has rewarded LASM more heavily so far this year. LASM’s stock has advanced 29.7% year-to-date, compared with just 0.9% for LASD, to close at $7.47 and J$3.41, respectively, on Wednesday, August 5, 2026. Even after LASM’s rally, however, both companies continue to trade below their sector benchmark. LASM trades at a P/E of 11.2x, while LASD trades at 10.0x, compared with the Main Market Manufacturing & Distribution sector average of 17.6x.

(Sources: JSE & NCBCM Research)

• One Great Studio Company Limited (1GS), has acquired the business of FarmHouse Creative Marketing Ltd, a Jamaica-based creative agency founded by Vanessa Henderson. The acquisition supports 1GS’s strategy of building a diversified portfolio of specialised marketing and communications agencies across the Caribbean.
• FarmHouse Creative brings established expertise in branding, creative direction, social media management, and strategic marketing, enhancing 1GS’s ability to provide broader end-to-end services to clients. The agency’s experience spans sectors including hospitality, real estate, consumer goods, and lifestyle brand.
• The acquisition has a total value of J$36Mn, inclusive of a performance-based earn-out arrangement that will be paid over a three-year period. This structure aligns the acquisition with future performance and continued growth of the FarmHouse brand within the 1GS group.
• Vanessa Henderson will continue to lead FarmHouse Creative following the acquisition, ensuring continuity for clients and maintaining the agency’s existing culture and identity. She will also serve as Director of Brand & Creative for 1GS, contributing her expertise to the wider group’s creative strategy and development.
• While retaining its name and operating as a distinct brand within 1GS, FarmHouse will benefit from access to the group’s broader team, technology, specialist talent, and resources. The agency will serve as 1GS’s dedicated creative, social media, and brand strategy arm while continuing to pursue independent client opportunities.
• The FarmHouse acquisition represents the third acquisition completed by 1GS as it continues expanding its portfolio of specialised agency brands. The group’s portfolio now includes High Voltage Digital, DRT Communications, and FarmHouse Creative, reinforcing its ambition to build a leading regional marketing and creative services platform.
• 1GS’s stock price has decreased by 32.1% since the start of the year to close at $0.24 on August 5, 2026.

(Sources: JSE & NCBCM Research)

• Banco de Mexico (Banxico) Mexico's central bank, held its benchmark interest rate at 6.50% on Thursday, ​extending a pause that began in June and pushing back the ‌timeline for inflation to return to target. This underscores the challenge of taming price pressures in Latin America's second-largest economy.
• This decision was ​in line with market expectations and said it would likely maintain ​the current setting for now. "Both headline and core inflation are still ⁠expected to decline throughout the forecast horizon, albeit more gradually than previously ​anticipated," the bank said in its policy statement.
• Banxico left its 2026 forecasts for ​both headline and core inflation unchanged at 3.5% but said headline inflation would now converge to its 3.0% target only in the fourth quarter of 2027, later than the second ​quarter of 2027 projected previously.
• This delay pointed to stubborn underlying price pressures as a key inflation risk. Other risks include possible trade disruptions, global conflicts, climate-related shocks, rising business costs and the chance of a weaker peso. It also said changes in U.S. policy and worsening international tensions were making the outlook harder to predict.
• Mexico's economy rebounded in the second quarter after contracting in the prior three-month period. Preliminary data released last week ⁠by statistics agency INEGI showed gross domestic product grew 1.5% ​in the second quarter from the previous quarter, after a 0.6% contraction in the first quarter.

(Source: Reuters)

• The 2026-2027 El Niño could affect jobs and livelihoods across the Caribbean, with agriculture, fisheries and tourism among the sectors most exposed to the climate phenomenon, according to a new report by the International Labour Organisation (ILO).
• El Niño is a naturally occurring climate pattern marked by unusually warm sea surface temperatures in the central and eastern Pacific Ocean. It can disrupt global weather patterns, bringing drought, heatwaves or excessive rainfall to different regions.
• The ILO says the Caribbean is among the regions expected to experience drought, water shortages and heatwaves during the 2026-2027 El Niño, putting agriculture, fisheries and tourism at particular risk.
• In a policy brief examining the likely labour impacts of El Niño across Latin America and the Caribbean, the ILO said the 2026-2027 event could reduce employment, lower incomes and worsen working conditions, particularly for informal workers, rural communities and people who work outdoors.
• The ILO also cautions that the effects of El Niño could extend beyond the workplace, contributing to food insecurity, higher food and energy prices, reduced productivity and an increased risk of child labour as vulnerable households struggle to cope. These pressures could be especially severe in the Caribbean, where high levels of informal employment leave many workers without access to social protection and other support mechanisms that help people recover from climate-related shocks.
• The ILO says the impacts are not inevitable, stressing that governments can reduce the risks by strengthening social protection, investing in climate-resilient infrastructure, improving occupational safety and health, expanding early warning systems and promoting social dialogue.

(Source: Barbados Today)

• Oil prices settled more than US$3 per barrel higher on Thursday, August 6, 2026, after an Iranian parliament committee began reviewing a bill that would ban U.S., Israeli and other vessels deemed hostile from transiting the Strait of Hormuz. Brent crude rose 3.83% to US$82.49 per barrel, while WTI gained 2.75% to US$77.29.
• The proposed legislation, which would also impose fines of up to 20% of cargo value on vessels that violate the ban, comes as negotiations over reopening the Strait continue.
• Geopolitical tensions remained elevated as Yemen's Houthis claimed missile and drone attacks on Saudi deployments in Yemen and reported attacks on Saudi oil tankers in the Red Sea and Gulf of Aden. The attacks underscore that risks to global energy supplies now extend beyond the Persian Gulf, with the Red Sea also remaining vulnerable to disruption.
• Gulf countries' crude oil and condensate exports stood at about 40% below pre-war levels in July. Meanwhile, Iran warned Gulf states that any new U.S. attack on its territory would trigger strikes on critical regional energy infrastructure.
• The outlook for oil prices remains closely tied to developments surrounding the Strait of Hormuz, with investors continuing to monitor negotiations and shipping conditions for signs of a durable agreement. Traffic through the Strait remains low, and the path to a lasting deal remains unclear, leaving investors focused on further developments.

(Sources: Reuters & Bloomberg)

• The number of Americans filing new claims for unemployment benefits rose slightly by 1,000 to 199,000 in the week ended August 1, remaining below economists' expectations of 202,000. Meanwhile, planned layoffs fell 27% to 33,429 in July, the lowest level in two years, consistent with a stable labour market.
• Claims have fallen considerably since surging in early June and remain near the lower end of this year's range. Layoffs have also remained low despite the oil price shock from the U.S.-Israeli war with Iran. There were no signs of widespread job losses linked to the AI buildout, with announced layoffs down 46% from a year ago and 41% lower year-to-date.
• Continuing claims, a proxy for hiring, increased by 24,000 to 1.801 million, while economists expect nonfarm payrolls to increase by 80,000 jobs in July, following a gain of 57,000 in June. The unemployment rate is forecast to remain unchanged at 4.2%, although weaker consumer perceptions of job availability suggest some downside risk.
• Worker productivity increased at an annualised rate of 1.4% in the second quarter, well above economists' expectations of 0.6%, while unit labour costs rose 1.3%, below the 2.1% forecast. Economists said stronger productivity, partly supported by businesses adopting artificial intelligence, helped contain labour cost pressures.
• Despite the favourable productivity data, economists noted that unit non-labour payments surged 14.0%, the fastest pace in four years, suggesting inflation pressures remain beyond labour costs alone. The Federal Reserve is therefore expected to remain focused on inflation, with some economists still anticipating an interest rate increase next month if price pressures do not ease.
• The combination of a stable labour market, faster productivity growth and contained labour costs gives the Federal Reserve greater room to focus on inflation risks stemming from the Middle East conflict. However, economists cautioned that stronger productivity alone will not be sufficient to return inflation to the Fed's 2% target while non-labour costs continue to rise.

(Source: Reuters)

• Renewable energy producer Wigton Energy Limited ran low on energy in the quarter ended June 30, 2026 (Q1 2026), with net income declining 34.8% YoY to $168.99Mn. The weaker performance was largely driven by lower revenues and other income and higher general and administrative expenses, which took some wind out of earnings.
• Revenues for the quarter lost some power, declining 4.4% to $786.19Mn as lower electricity generation reduced output. Electricity production decreased by 2.0% to 49.2 million kWh. Meanwhile, other income lost its spark, falling 68.0% to $22.02Mn due to lower interest income and the absence of foreign exchange gains, contributing to a $46.70Mn reduction.
• Despite lower revenues, cost of sales remained fully charged, rising 21.3% to $279.51Mn, which could be a result of fixed costs and maintenance costs that are independent of high revenues. The mismatch between costs and output generated pressure on margins, with gross margin losing voltage and contracting 7.5 percentage points to 64.4%.
• General and administrative expenses also encountered headwinds, climbing 7.8% to $246.44Mn. The increase was primarily driven by higher operating and maintenance costs associated with the lingering effects of the 2024 and 2025 hurricanes, together with continued investment in people, technology, and organisational capabilities to power the Company's long-term growth plan.
• While operating performance faced headwinds, finance costs provided a welcome tailwind, declining 44.8% to $43.15Mn due to continued debt repayment and disciplined treasury management.
• Looking ahead, Wigton is shifting gears and broadening its energy mix, expanding beyond traditional wind generation by pursuing key growth initiatives, notably advancing two major Jamaican utility-scale solar projects totalling 70.53 MW (with a 49.83 MW project currently finalising financing, land access, and approvals) while actively exploring commercial/industrial solar, battery energy storage, and broader Caribbean expansion.
• Successfully bringing these 70+ MW capacity and storage pipeline online would diversify its revenues, drive long-term revenue and cash flow growth, and support sustainable capital returns and dividend capacity backed by high standards of corporate governance.
• WIPT’s stock price has decreased by 14.7% since the start of the year to close at $1.10 on August 4, 2026. At this price, the stock is trading at a price-to-book (P/B) ratio of 2.1x, which is below the Main Market Energy, Industrial and Materials (EIM) Sector’s average of 2.5x.

(Sources: JSE & NCBCM Research)

• Jamaica and the Republic of Ghana are poised to deepen cooperation in key areas, including health, education, tourism and air services, following extensive bilateral discussions between the leaders of both nations. Prime Minister, Dr. the Most Hon. Andrew Holness, held bilateral talks with Ghana’s President, His Excellency John Dramani Mahama, at the Office of the Prime Minister in Kingston.
• President Mahama is in Jamaica on a State Visit through Wednesday (August 5). He is accompanied by Ghana’s Minister of Foreign Affairs, Hon. Samuel Okudzeto Ablakwa, and Deputy Minister of Defence, Hon. Ernest Brogya Genfi. In a media statement, Dr. Holness noted that President Mahama’s visit underscores and strengthens the long-standing diplomatic relationship between Jamaica and Ghana.
• He noted that the health cooperation agreement is already delivering tangible benefits, including the expected arrival of Ghanaian nurses to help strengthen Jamaica's healthcare system. Dr. Holness also highlighted last month's Virtual Investment and New Markets Ministerial Business Mission, part of a broader strategy to deepen engagement with continental Africa, saying the initiative fostered meaningful business connections between Jamaican and Ghanaian companies.
• By strengthening connectivity between their ports, Jamaica and Ghana could provide exporters and investors on both sides of the Atlantic with a more efficient gateway to new markets. “We can make it easier for your Ghanaian exporters to reach the Caribbean and the Americas and easier for a Jamaican exporter to reach Africa, particularly within the context of the African continental free trade area,” the Prime Minister affirmed.
• Holness added that Jamaica places great value on its relationship with Ghana, as a trusted friend and partner with whom it shares common aspirations for sustainable development, inclusive growth, and a stronger voice for developing countries and the international community. In his remarks, President Mahama noted that, building on their historic ties, Jamaica and Ghana have fresh opportunities to strengthen solidarity and advance the economic empowerment and prosperity of their peoples.
• President Mahama said engagement would provide a strong foundation for promoting cross-investment opportunities between both countries. He also highlighted that President Mahama indicated that he was looking forward to meeting with Jamaican business leaders to discuss investment opportunities in Ghana and, by extension, across Africa through the African Continental Free Trade Area (AfCFTA).

(Source: JIS)