• Britain's jobs market has weakened again, official data showed, with payrolls falling for a sixth month and vacancies dropping further, wage growth stayed strong, underscoring why the Bank of England is so cautious about cutting interest rates.
• With the central bank's policymakers split over the risks of a hiring slump and a pickup in inflation pressures, the Office for National Statistics' figures pointed to a continued cooling of the labour market, albeit less sharply than in recent months.
• The number of employees on company payrolls, as measured by tax office data, fell by a provisional 8,000 in July from June, extending a run of declines that began in February but was the smallest decline in that run. The reduction in June was revised down to 26,000, fewer than the originally reported fall of 41,000.
• Employers have said Finance Minister Rachel Reeves' decision to raise a tax on them is weighing on their staffing and pay decisions, as well as causing an increase in their prices. Basic wage growth in the private sector - watched closely by the BoE - edged down to 4.8% in the three months to June. But overall average weekly earnings, excluding bonuses, grew by 5.0%, unchanged from the three months to May and above the 3% level seen as consistent with the BoE's 2% inflation target.
• "Today's labour market figures underline the stagflation quandary facing the Monetary Policy Committee," Jack Kennedy, senior economist at job website Indeed, said. "While a further rate cut in November remains on the cards, it's not a done deal with wage growth remaining elevated amid concerns over inflation persistence."
• The BoE last week cut interest ratesto 4% from 4.25%, but only after a tight 5-4 vote by the MPC, which expects headline inflation to hit 4% soon, double its 2% target.

(Source: Reuters)

• Driven by continued strong revenue performance, TransJamaican Highway Limited (TJH) reported a net profit of US$8.71Mn for the second quarter ended June 30, 2025 (Q2 2025), a 24.4% year-over-year increase.
• Second quarter revenues, which consist mainly of toll collections, increased by 13.2% to US$22.50Mn. This was primarily driven by sustained growth in toll collections and increased traffic volumes, supported by wider adoption of the t-tag system. The t-tag is an electronic toll system that lets drivers pay via a prepaid account linked to a T-Tag device, allowing quicker toll plaza passage, and offers a special rate to customers and a free pass on their 10th trip.
• Operating expenses (OPEX) for the quarter rose at a slower pace than revenues, up 10.4% to US$5.90Mn. Increased investment in tolling equipment and spares linked to ongoing technology upgrades, aimed at modernising operations and improving efficiency for commuters, was behind the increase in expenses. The increase also reflects higher marketing spending to support expanded T-Tag adoption and elevated bank charges. Meanwhile, administrative expenses, which primarily consisted of staff costs, depreciation of plant and equipment, and other routine office expenses, inched up 0.7% to US$2.47Mn.
• With revenue growth outpacing OPEX and administrative expenses, its margins expanded. Q2 operating margins increased from 62.1% to 64.7% while net profit margins increased from 34.0% to 36.7%.
• Ultimately, TJH’s strong Q2 performance supported a 27.7% increase in its six-month earnings to US$17.78M. Nonetheless, management continues to explore avenues to expand earnings. TJH signalled a strategic focus in its customer engagement, toll processing, and operational scalability by embracing artificial intelligence and a suite of digital enhancements, which could drive greater cost efficiency. This, alongside increased revenues from higher traffic volumes, fuelled by ongoing residential and commercial developments, and the implementation of its annual toll rate adjustment, is expected to strengthen earnings and enhance shareholder value.
• Despite its strong financial performance and solid dividend payments, TJH’s stock price has decreased by 21.7% since the start of the calendar year and is up 1.1% since its offer for sale in March. The stock closed Monday’s trading session at $3.64 and currently trades at a P/E of 8.3x, which is below the Main Market Energy, Industrial, and Materials Sector Average of 14.5x.

(Sources: JSE and NCBCM Research)

• Jamaica Observer Limited (JOL) and The Gleaner Company (Media) Limited (GCML), one of Radio Jamaica Limited’s subsidiaries, have signed a Memorandum of Understanding (MOU) to examine the feasibility of using common printing and distribution logistics services, i.e., print production and distribution only. Both companies will remain fully independent, with separate ownership, operations, and editorial control.
• The MOU signals the shared intent of two of Jamaica’s most respected media companies to build out a coordinated and efficient print and distribution logistics model. This exploratory agreement marks the start of an important phase of planning and development, during which both entities will work together on the processes and procedures required to form a stand-alone joint venture (JV) while ensuring all relevant regulatory bodies are notified.
• Under the MOU, the companies will collaborate on a range of preparatory activities related to the feasibility of forming a JV, including communications with stakeholders, testing of new processes, staffing assessments, logistics planning, and operational modelling. This phase will also allow both parties to address any regulatory, technical, or organisational considerations ahead of the formal registration of the joint venture entity.
• Through its subsidiary GCML, RJR stands to reduce operational costs if the proposed joint print and distribution venture with JOL proceeds. Consolidating logistics could eliminate redundancies in delivery networks, printing infrastructure, and staffing, all significant cost drivers in the print media sector, which could reduce costs and driving profitability.
• Over the last 5 years, RJR’s earnings have been volatile, and it has recorded a $528.75MN loss in 2024. Its stock price has decreased by 0.80% since the start of the calendar year.

 (Source: JSE & NCBCM Research)

• Brazilian total egg exports, including fresh and processed products, rose almost 305% to 5,259 metric tons in July, reflecting strong demand from the United States after its bird flu outbreak, according to data compiled by industry group Brazilian Association of Animal Protein (ABPA) on Monday.
• The U.S. turned to Brazil after bird flu reduced domestic egg supplies, raising prices and inflation. However, President Donald Trump imposed a 50% tariff on Brazilian goods, including eggs, on August 6.
• In the first seven months of 2025, the U.S. was the main destination for Brazilian egg exports, with 18,976 tons shipped there in the period, representing a 1,419% rise and almost $41Mn in sales, ABPA said.
• Despite strong U.S. demand for egg imports, the tariff on Brazilian food imports, including coffee, beef, and eggs, risks reducing trade. ABPA said it could not predict the impact of tariffs on the egg trade yet.

(Source: Reuters)

• The National Statistics Office (ONE) published its Macroeconomic and Sectoral Statistics Bulletin for the April-June 2025 period, offering a preliminary overview of the performance of the country’s main economic sectors.
• Exports of agricultural and livestock products showed moderate growth. The value of the main agricultural products exported increased by millions of dollars, and livestock products registered positive variations in metric tons. Between April and June 2025, more than 4,000 tons of eggs were exported, representing an increase of more than 109% and more than 600 tons of milk were exported. However, there was a decrease in exports of raw tobacco, avocados, and chilli peppers.
• The private sector demonstrated dynamism, marked by an increase in licensed construction and the appraised value of housing units. In the second quarter, the majority of homes built were apartments, accounting for more than 62%.
• Electricity generation and installed capacity, including renewable sources, showed relative increases. In maritime transport, a positive variation was observed in international cargo, especially in general cargo vessels and container ships.
• The average hotel occupancy rate increased compared to the same period in 2024. Registering 74.2% occupancy between Punta Cana and Bayahibe. In addition, the arrival of non-resident passengers by air increased by 2.5%.
• The Monthly Economic Activity Indicator (IMAE) reflected a slight year-over-year expansion. The stock market registered an increase in net asset value and implicit operating rates. Lending to productive sectors also grew in aggregate terms. Family remittances received and net international reserves showed positive changes. The average exchange rate of the US dollar remained stable, with slight fluctuations within the range predicted by the Central Bank.

(Source: Dominican Today)

• U.S. President Donald Trump extended a tariff truce with China by another 90 days on Monday, August 11, 2025, a White House official said, thereby staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season. The executive order signed by President Trump delays the start of higher tariffs until mid-November 2025.
• The tariff truce between Beijing and Washington had been due to expire on Tuesday, August 12, 2025. However, the timing of the extension until early November 2025 buys crucial time for the seasonal autumn surge of imports for the Christmas season, including electronics, apparel and toys at lower tariff rates.
• Earlier this year, imports from China had surged to beat Trump's tariffs, but dropped steeply in June 2025, Commerce Department data showed last week. The U.S. trade deficit with China tumbled by roughly a third in June 2025 to $9.5Bn, its narrowest since February 2004. Further, over the past five consecutive months of declines, the U.S. trade gap with China has narrowed by $22.2Bn - a 70% reduction from a year earlier.
• Notably, the new order prevents U.S. tariffs on Chinese goods from shooting up to 145%, while Chinese tariffs on U.S. goods were set to hit 125% - rates that would have resulted in a virtual trade embargo between the two countries. Instead, it locks in place - at least for now - a 30% tariff on Chinese imports, with Chinese duties on U.S. imports at 10%. "We'll see what happens," Trump told a news conference earlier on Monday, August 11, 2025, highlighting what he called his good relationship with Chinese President Xi Jinping.
• "It's positive news. Combined with some of the de-escalatory steps both the United States and China have taken in recent weeks, it demonstrated that both sides are trying to see if they can reach some kind of a deal that would lay the groundwork for a Xi-Trump meeting this fall," said Wendy Cutler, a former senior U.S. trade official who is now a vice president at the Asia Society Policy Institute.

(Source: Reuters)

• US President Donald Trump said Monday, August 11, 2025, that gold imports will not face additional tariffs, days after confusion flared on whether recent hikes applied to certain gold bars, threatening to upend global trade of the precious metal.
• Trump's comments came after US customs authorities made public a letter saying that gold bars at two standard weights, one kilogram and 100 ounces (2.8 kilos), should be classified as subject to duties. "Gold will not be Tariffed!" Trump said on his Truth Social platform, without providing further details.
• The letter, which was made public last week and dated July 31, 2025, was first reported on by the Financial Times, sending the price of gold on the US futures market to a record high. According to a White House official, the Trump administration plans to "issue an executive order in the near future clarifying misinformation about the tariffing of gold bars and other specialty products."
• Gold, seen as a safe-haven investment, already reached record highs this year on tariff worries and geopolitical unrest. On Friday, August 8, 2025, gold for December delivery hit a record high on the Comex, the world's biggest futures market. The concern is whether gold products would be exempt from Trump's "reciprocal" tariffs impacting goods from dozens of economies, including Switzerland, which sees a 39% levy. One-kilo bars are the most common form traded on Comex and comprise the bulk of Switzerland's bullion exports to the US, the Financial Times said.

(Source: Reuters)

• Driven by strong topline growth and lower finance costs, Wigton Windfarm Limited (WIG) reported net profits of J$259.17Mn for the three-month period ended June 30, 2025 (Q1 2025), a 56.3% increase relative to Q1 2024.
• Total revenues for the quarter were up 32.2% to J$822.23Mn primarily due to a 10.5Mn kWh or 26.6% increase in energy production. However, a decrease in other income of 23.7% partially offset revenue gains. Consequently, total revenue, sales and other income for the first quarter was $890.95Mn a 25.1% increase, when compared to the amount earned in Q1 2024 of $712.15Mn.
• The overall topline growth came despite an average plant availability of 87.6% for the first quarter, compared to 93.3% for Q1 2024. The reduced availability was due mainly to the repairs to two (2) wind turbines following the passage of Hurricane Beryl.
• Cost of sales grew slower than revenues, up 15.6% to J$230.48Mn. As a result, Wigton’s Q1 2025 gross profit increased by 40.0% to J$591.74Mn and its gross profit margin inched up to 72.0%, from 67.9% in Q1 2024.
• General administrative expenses also increased by 16.1% to close at J$228.60Mn, largely due to the investment made in staff and other areas of the business as it gears up for growth through diversification. However, finance expenses for the period were 15.6% lower, as debt amortisation reduced the company’s debt and with it the cost of debt servicing.
• Management noted that Wigton is progressing on two utility-scale solar projects totaling 70.53 MW. This includes its 49.83 MW flagship, which is advancing through contracting, land access, financing, and permitting stages. The company and SunTerra Energy received permits and financing to build 49.83 MW and 50 MW solar farms in Jamaica. Each has with 20-year licenses to supply power to the national grid by 2027. While these developments mark a significant step in its clean energy diversification strategy, execution risks such as regulatory delays and financing conditions could affect delivery and the timing of any boost to earnings.
• Wigton is also pursuing commercial and industrial solar projects, monitoring new Requests for Proposals (RFPs), and exploring regional renewable and battery storage opportunities, though regional expansion will require competitive pricing and strong partnerships.
• WIG’s stock price has declined by 15.1% year-to-date, closing at $1.18 as of Thursday. At this price, the stock is trading at a P/E ratio of 30.3x, which is above the Main Market Energy, Industrials and Materials Sector average of 14.7x.

(Sources: Wigton Windfarm Limited & NCBCM Research)

• Fosrich Company Limited (FOSRICH) reported a net loss of J$120.96Mn for the three-month period ended June 30, 2025 (Q2 2025) compared to $44.89Mn in Q1 2024. The outturn was due to lower prices for its PVC pipes and solar panels along with upward pressure on both direct and indirect costs, which ultimately eroded net profit.
• Revenues for the period were J$734.40Mn, a 17.0% contraction from J$884.63Mn. The quarter was adversely impacted by the substantial fall in PVC and solar panel costs on the world markets. Therefore, despite achieving higher sales volumes, because theproduct’s price reductions are passed on to customers, the company achieved lower total sales income.
• Challenges in the shipping industry have also resulted in significant delays in shipment for both finished goods and raw material, which weighed down the company’s performance in Q2. Raw material delays significantly interrupted the company’s manufacturing operation during the quarter, which limited its ability to keep the market supplied with these products.
• Higher direct costs (16.3%) compounded the company’s challenges. Though slightly offset by a marginal contraction in administrative expenses, the company reported operating losses of J$64.02Mn compared to a J$134.43Mn profit in Q2 2024.
• As a result, the company reported a net loss totaling J$120.96Mn for the period. This performance, in turn, contributed to an overall net loss of J$189.56Mn for the six-month period in 2025 (6M 2025) relative to earnings of J$77.88Mn in 2024.
• Notably, construction of the new FosRich Superstore & Corporate Offices at 76 Molynes Road is advanced, with completion date now projected to be Q3, 2025. However, the company have halted plans to enter the United States market, until further notice.
• Despite the weaker 6 months results, FOSRICH’s stock price appreciated by 15.8% year-to-date, closing at $2.71 on Thursday.

(Sources: FosRich Company Limited & NCBCM Research)

• Brazil's central bank did not merely pause its tightening cycle but halted it, Director of Monetary Policy Nilton David said on Thursday, August 7, 2025, stressing that interest rates remain in restrictive territory and the bank's plan is broadly unfolding as expected.
• The central bank held its benchmark Selic rate steady at a near 20-year high of 15% in late July, following seven consecutive hikes since September last year that lifted rates by 450 basis points in an effort to tame inflation. "It was not a pause. It was an interruption for us," said David at an event hosted by financial group Porto in Sao Paulo. The halt aims to give the central bank time to feel and understand the effects of past moves before deciding on next steps, in a context that has become more uncertain due to trade tariffs, he stressed.
• Policymakers have been signalling since June 2025 that their strategy would now be to keep rates at current levels for a "very prolonged" period. According to the Director of Monetary Policy, "Monetary policy will work even for those who don't believe in it,". He also noted that the central bank is fairly confident Latin America's largest economy is currently growing above its potential and added that labour-intensive sectors, such as services and construction, are likely to take longer to fully feel the effects of the tightening already in place.
• The central bank had already been preaching caution before the U.S. imposed 50% tariffs on goods from Brazil - a policy stance David said now proves even more necessary. Still, he said the sectors that export to the United States are "highly professional" and will likely find ways to redirect their production over time.
• Regarding the Brazilian real, which has gained more than 10% against the U.S. dollar so far this year, David said part of the currency's appreciation reflects a decline in risk premiums embedded in local yield curves, as well as investor perception that the central bank is firmly committed to bringing inflation back to target.

(Source: Reuters)