• 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)

• U.S. President Donald Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, raising the average U.S. import duty to its highest in a century and leaving major trade partners such as Switzerland, Brazil, and India hurriedly searching for a better deal.

• The U.S. Customs and Border Protection agency began collecting the higher tariffs of 10% to 50% after weeks of suspense over Trump's final tariff rates and frantic negotiations with countries seeking to lower them.
• The leaders of Brazil and India vowed not to be cowed by Trump's hardline bargaining position, even while their negotiators sought a reprieve from the highest tariff levels.
• The new rates will test Trump's strategy for shrinking U.S. trade deficits without causing massive disruptions to global supply chains or provoking higher inflation and stiff retaliation from trading partners.

(Source: Reuters)

• Food and Financial Services conglomerate, GraceKennedy Group Limited (GK), reported net profits of $2.12Bn for the three-month period ended June 30, 2025 (Q2 2025), a 12.2% decline compared to $2.42Bn in Q2 2024.
• Revenues for the quarter were up 6.6% to $44.80Bn aided by an overall uptick in revenue generated from its products and services as well as interest revenue.
• However, direct and operating expenditure growth outpaced revenues with an 8.6% increase year-over-year, closing the period at J$42.92Bn from J$39.52Bn. This contributed to profit before tax for the quarter to be J$2.95Bn, down 11.0% from J$3.31Bn in Q2 2024, as elevated group-wide costs offset revenue gains.
• With only a modest 3.0% expansion in earnings in Q1, the 12.2% earnings contraction in Q2 resulted in a falloff in GK’s six-month (H1 2025) earnings. Operating profit fell by 4.9% to J$7.07Bn for the six-month period due to a 28.6% decline in GK’s Money Services division. The division was adversely impacted by lower transaction volumes and remittance flows in Guyana and Trinidad & Tobago. However, gains in the Jamaican market helped soften the overall impact.
• GK’s stock price declined by 8.9% year-to-date, closing at $71.95 as at Tuesday. At this price, the stock is trading at a P/E ratio of 8.7x, below the Main Conglomerate Sector average of 11.4x.

(Sources: JSE Stock Exchange & NCBCM Research)

• Prime Minister, Dr. the Most Hon. Andrew Holness, has commended Best Dressed Chicken on the investment in the installation of a Liquified Natural Gas (LNG) Cogeneration Plant, which will boost efficiency in the company’s operations.
• Holness noted that the poultry producer, which is a division of the Jamaica Broilers Group, has now secured for itself greater energy efficiency. “It means that they are far more insulated from the volatility of international shocks in the energy market, which would be chiefly responsible for any unpredictable rise in the price of chicken,” he said. He further pointed to the cost savings from converting LNG into energy.
• “The company saves quite a bit relative to what they would pay JPS (Jamaica Public Service) or what their original costs would be using heavy fuel oils. It also gives them the opportunity to use the same energy to generate electricity and to generate steam,” Dr. Holness pointed out. Group President and Chief Executive Officer, Christopher Levy, shared that it is an important investment, aimed at making the company more competitive and its products more affordable.
• Levy added that the new LNG plant will offer a multi-tiered return on investment for the company. “The chicken plant uses a lot of steam. That steam is collected from the exhaust heat of the energy and that exhaust heat goes through what is called a heat recovery boiler and produces steam. So, we don’t burn any other energy at this plant. We burn energy once and right now it’s gas and that produces all the steam that we need, hot water that we need, electricity that we need,” he explained.
• The increased energy efficiency and self-generation capabilities from the LNG cogeneration plant are expected to further lower the company’s utility expenses, reducing production costs and improving operating margins—developments that could positively impact future earnings and enhance price competitiveness in the local and export markets.

(Sources: JIS & NCBCM Research)

• Mexico’s government announced during a press conference on Tuesday, August 5, 2025, that it aims to cease funding Pemex by 2027, when the highly indebted state energy company should become financially self-sufficient, supported by a series of measures to pay down debt and stabilise production.
• President Claudia Sheinbaum presented a ten-year plan that outlined steps to achieve the government’s goals of making Pemex financially self-sufficient. Officials reiterated its ambition to pay down debt, both maturing bond debt and what the company owes to providers. To achieve all this, a new government-backed investment vehicle will seek to raise up to 250 billion Mexican pesos ($13 billion) for Pemex projects in 2025 alone to help lift declining production. This follows a $12 billion debt offering to ease Pemex's short-term financial pressures and support debt refinancing.
• According to President Sheinbaum, over 20 mixed contracts could help lift declining production by as much as 450,000 barrels per day (bpd). At the same time, it would refine more at home and therefore reduce crude oil exports to 393,100 bpd in 2035, from 487,900 bpd in 2026. The target for local crude oil processing, including at the new Olmeca refinery in the port of Dos Bocas, is 1.3 million barrels per day. This would help wean the country off gasoline and diesel imports.
• Pemex CEO Victor Rodriguez also outlined several operational initiatives to support the plan, including leading the development of the Zama and Trion fields and reactivating other fields with potential. In addition, Pemex intends to build three new pipelines.
• Pemex, the world's most indebted energy company, reported last week a financial debt of around $99 billion and a debt to providers of around $23 billion, which is down from earlier years but still has investors worried. This year $5.1 billion of debt is due for repayment, followed by $18.7 billion next year and $7.7 billion the year after. Finance Minister Edgar Amador said that through a capitalization and financing strategy currently underway, Pemex's financial debt should close this year at $88.8 billion and $77.3 billion by 2030.

(Source: Reuters)

• The Central Bank of the Dominican Republic (BCRD) reported that foreign direct investment (FDI) reached US$2.89Bn in the first half of 2025, marking a 15.3% increase compared to the same period in 2024. This growth reinforces the country’s position as the leading destination for foreign investment in the region for the third consecutive year, according to UNCTAD.
• The bank attributes this performance to strong investor confidence and projects that total FDI for the year will surpass US$4.7Bn. Nearly half of the inflows were concentrated in the tourism and energy sectors.
• Tourism also saw positive results, generating approximately US$5.8 billion in revenue from January to June—up 1.8% from the same period in 2024—driven by the arrival of 6.1 million visitors by air and sea.
• Combined foreign exchange inflows from FDI, remittances, tourism, exports, and services totaled around US$23.9 billion during the first half of 2025, helping maintain exchange rate stability.

(Source: Dominican Today)