• Senator Hon. Aubyn Hill, Minister of Industry, Investment, and Commerce, has announced that the Government is strategically positioning Jamaica to become a regional hub for technology and innovation – a key pillar of the country’s economic growth agenda.
• During the Global Services Association of Jamaica (GSAJ) President’s Breakfast Forum in Montego Bay on November 22^nd, Senator Hill said the Government is incentivising innovation and digital transformation to foster an environment that is conducive to high-quality research and development in digital technology, including artificial intelligence (AI).
• Senator Hill emphasised the Government’s proactive embrace of artificial intelligence (AI) as a transformative technology. He noted that a National AI Task Force was established last year to lay an evidence-based foundation for crafting a comprehensive AI policy framework. The policy is expected to leverage AI, by integrating into sectors, like health, agriculture and education and, the Global Digital Services Sector (GDSS), to enhance productivity.
• Meanwhile, he urged GDSS businesses to capitalise on the advantages offered under the Special Economic Zone (SEZ) regime. He noted that companies operating within SEZs, including those engaged in outsourcing, can enjoy significant incentives, such as a 50% reduction in their corporate income tax rate.
• He noted that in the domestic economy, companies pay a corporate income tax rate of 25% to 33 1/3%, while companies in Special Economic Zones (SEZ) pay as little as 12.55%, which can be further reduced to 7.75% through the application of promotional and employee tax credits.

Source: (JIS)

• Prime Minister of Canada, Justin Trudeau, on Tuesday, November 26, said Canada must stay united against a threat by Donald Trump to impose tariffs. Two major provinces quickly called on him to address the U.S. President-elect's concerns.
• Trudeau, due to meet the premiers of the 10 provinces to discuss U.S. relations, often notes his Liberal government has four years' experience dealing with the first Trump administration.
• Notably, Trump affirmed on Monday that he would impose a 25% tariff on imports from Canada and Mexico until they clamped down on drugs, particularly fentanyl, and migrants crossing the border. Such a tariff would badly hit the economy of Canada, which sends 75% of all goods exported to the United States.
• The premier of Ontario, the most populous province and the country's industrial heartland said Trump had good reason to be worried about the security of the long-shared frontier.
• In another early sign of strain, the premier of the oil-rich province of Alberta said late on Monday that Trump had valid concerns related to illegal activities at the shared border.
• "We are calling on the federal government to work with the incoming administration to resolve these issues immediately, thereby avoiding any unnecessary tariffs on Canadian exports to the U.S.," Premier Danielle Smith said in a social media post.

(Source: Reuters)

• China's industrial profits fell again in October but less sharply than the previous month as deflation pressures dragged, while demand remained soft in the crisis-hit $19Tn economy. Fresh headwinds from additional U.S. tariffs could also threaten China's industrial sector next year, reducing export earnings.
• The sprawling sector, which includes mining, processing and manufacturing companies, has struggled to stay profitable in the face of feeble domestic demand hit by a years-long property crisis, unemployment and rising trade tensions.
• According to National Bureau of Statistics (NBS) data, Industrial profits in October fell 10% year-on-year (YoY), better than a 27.1% slump in September. These consecutive months of YoY declines meant earnings slid 4.3% in January-October of 2024 versus a 3.5% decline in January-September.
• Separate economic indicators earlier this month pointed to broadly soft demand, with consumer prices at their weakest in four months while industrial output continued to trend downward and new home prices fell at their fastest pace in nine years.
• Outside of the tepid economic data, China's export earnings will also be squeezed by U.S. tariffs, hammering manufacturers. Trump could impose 40% tariffs on imports from China, a Reuters poll of economists showed. If tariffs are gradually increased to 40% and not all at once, expedited shipments ahead of new tariffs could help offset the impact of subsequently higher levies, resulting in a 2025 export decline of 1.7%, according to Minsheng. If only an additional 10% tariff is imposed, China's 2025 export growth could come in at 0.2%, the Chinese securities firm said.

(Source: Reuters)

• Deputy Governor of the Bank of Jamaica (BOJ), Jide Lewis, says that all banks are expected to be prepared for the increased demand for cash during the upcoming holiday season. He mentioned that the seasonal increase in demand for currency during Christmas time would likely mean that banks will need to stock up on additional funds.
• Mr. Lewis, who is responsible for the Financial Institutions Supervisory Division, was addressing the BOJ’s Quarterly Monetary Policy Report Press Conference on Monday. He noted that banks are being held to the minimum service standards for the operation of the machines, which were announced earlier this year
• In April, the BOJ issued new service standards as guidelines for the operation of automated banking machines (ABMs) by deposit-taking institutions (DTIs). These standards were implemented to address (i) the availability of cash (ii) infrastructure maintenance and the management of service disruption (iii) ABM fees and charges (iv) the deployment of machines (v) accessibility and ease-of-use (vi) fraud minimisation (vii) the safety and security of customers and (viii) financial education of ABM users.
• Designed to address long-standing consumer concerns, the standards subject banks to heightened scrutiny without imposing fines for non-compliance. They mandate that at least 90% of Automated Banking Machines (ABMs) must remain operational at all times, with those in service maintaining a functionality rate of at least 95%.
• Additionally, ABMs in urban or resort areas must not remain out of cash for more than 60 consecutive minutes, while those in rural areas are required to be restocked within a maximum of 180 minutes (three hours).
• Although fines are not currently in place, the Bank of Jamaica (BOJ) is set to implement a new regulatory framework for the financial sector in 2026, which will introduce penalties for banks failing to comply with ABM service standards.

(Sources: JIS & NCBCM Research)

• In a groundbreaking move for the Caribbean, the Jamaica Tourist Board (JTB) has partnered with the Jamaica Travel Channel (JTC) to stream destination-focused video content across multiple digital platforms, reaching a global audience. The newly redesigned Jamaica Travel Channel, which already attracts over 250,000 monthly online viewers, highlights some of Jamaica’s finest accommodations, captivating experiences, and breathtaking landscapes.
• This partnership aligns with the Ministry of Tourism's mandate to enhance awareness and drive visitor arrivals, ultimately increasing occupancy across the destination.
• Director of Tourism for JTB, Donovan White, highlighted that this initiative will expand its audience reach. Originally launched in 2015 as Jamaica’s first and only visitor in-room TV channel, the JTC already enjoys a robust presence in almost all hotel rooms island-wide, where it is viewed by tens of thousands of on island tourists daily.
• Kimani Robinson, Founder and Director of Jamaica Travel Channel, emphasized the impact of this new venture, “We currently receive hundreds of emails monthly from tourists thanking us for our platform which acts as a guide for them while on island. Streaming the Jamaica Travel Channel online significantly boosts our visibility before travelers even arrive in Jamaica.
• Beyond offering valuable content for prospective travelers, the online channel also serves as a resource for travel agents globally, equipping them to recommend Jamaica's premier experiences to their clients. The channel’s stream already features iconic brands such as Dunn’s River Falls, RIU Hotel, Couples Hotel, Jakes Hotel, Island Routes, Mystic Mountain, and The Artisan Village in Falmouth, among others.

(Source: Jamaica Tourist Board)

• The Dominican Republic continues to strengthen its international presence in the beef market, with recent exports to El Salvador and Guyana following the successful entry into the US market in 2022.
• Eric Rivero, Agricultural Advisor to the Executive Branch, emphasized the government’s commitment to fostering national production and strengthening the country’s livestock sector. “These achievements not only guarantee our food self-sufficiency but also generate foreign exchange and position our livestock industry as globally competitive,” said Rivero.
• The re-entry into the US market marked a significant milestone for the Dominican beef industry. After years of restrictions due to health and safety standards, the US Department of Agriculture’s Food Safety and Inspection Service (FSIS) approved the export of raw beef and beef products from the Dominican Republic.
• Over the past two years, the country has exported over $14 million worth of beef to the US. This success is attributed to the efforts of four to six certified slaughterhouses that adhere to strict quality standards.
• The expansion into El Salvador and Guyana represents a major step in diversifying the country’s export markets. Rivero stressed the importance of meeting international standards and continuously improving production processes. “These new markets present both challenges and opportunities,” he noted. “We must strive to maintain our high standards and adapt to evolving market demands.”
• The Dominican Republic’s beef industry is poised for further growth and development. By focusing on quality, sustainability, and market diversification, the country aims to solidify its position as a reliable supplier of beef products to the global market.
• The global beef market size was valued at US$430.23Bn in 2024 and is expected to grow at a CAGR of 5.8% from 2025-2033. In developing countries, rapid urbanization is driving a shift in dietary preferences toward Western-style diets that emphasize higher meat consumption. In China, the world’s largest importer of beef, and in Southeast Asia, beef consumption is outpacing pork and poultry consumption, reflecting the economic development and urban growth in these regions.

(Source: Dominican Today and GlobeNewswire)

• On November 25, 2024, The Bahamas and Guyana signed an open skies Air Services Agreement to promote and facilitate airlines to operate air services between the two countries, as well as other countries.
• Signing the Agreement on behalf of The Bahamas was Isaac Chester Cooper, deputy prime minister and minister of tourism, investments and aviation and for Guyana, Bishop Juan Edghill, minister of public works.
• Minister Edghill noted that the agreement is in keeping with the government’s commitment to connecting Guyana with the rest of the world and it is anticipated that Bahamas Air will soon add destination Guyana to its regional network.
• Consistent with the government’s model of open skies agreements, the Agreement facilitates acceptance of the Principal Place of Business, meaning that the airlines could benefit from foreign share capital and investment once they establish their main economic and operating base in either The Bahamas or Guyana.
• The Principal Place of Business condition for airline designation is now a common inclusion in Air Services Agreements and creates a very advantageous position for small States with limited capital or financial resources.
• Presently, there are no direct flights between Guyana and The Bahamas. However, this Agreement puts in place the legal framework that opens market access for airlines to operate and enhance competitive air transport services, trade, and economic growth between the two countries.

(Source: Caribbean News Global)

• The American economy expanded at a healthy 2.8% annual pace from July through September on strong consumer spending and a surge in exports, the government said Wednesday, November 27, 2024, leaving unchanged its initial estimate of third-quarter growth. Consumer spending, at 3.5%, was revised down from the previously estimated 3.7% rate, but up from 2.8% in the April-June period and the fastest growth since the fourth quarter of 2023.
• Furthermore, slight downward revisions to consumer spending, government outlays and exports, were offset by upgrades to private inventory accumulation, and business investment as well as state and local government spending
• The Commerce Department reported that growth in US gross domestic product, the economy’s output of goods and services, slowed from the April-July rate of 3%. However, the GDP report still showed that the US economy is proving surprisingly durable. Notably, growth has topped 2% for eight of the last nine quarters.
• Despite the resilience, the US economy is expanding at a pace that is well above what Federal Reserve officials regard as the non-inflationary growth rate of around 1.8%. Nonetheless, most Wall Street traders expect the Fed to cut rates again in December, with growth remaining steady, unemployment at a low of 4.1%, and inflation (12-month CPI), which hit a four-decade high of 9.1% in June 2022, having fallen to 2.6%.

(Sources: CNBC & Reuters)

• Inflation edged higher in October as the Federal Reserve is looking for clues on how much it should lower interest rates, the Commerce Department reported.
• The personal consumption expenditures price index, a broad measure the Federal Reserve prefers as its inflation gauge, increased 0.2% in October and showed a 12-month inflation rate of 2.3%. Both were in line with the Dow Jones consensus forecast, though the annual rate was higher than the 2.1% level in September.
• Excluding food and energy, core inflation showed even stronger readings, with an increase of 0.3% on a monthly basis and an annual reading of 2.8%. Both also met expectations. The annual rate, however, was 0.1 percentage points above the prior month.
• Fed policymakers target inflation at a 2% annual rate. PCE inflation has been above that level since March 2021 and peaked around 7.2% in June 2022, prompting the Fed to go on an aggressive rate-hiking campaign.
• While the inflation rate has dropped significantly since the Fed started tightening, it remains a nettlesome problem for households and figured prominently in the presidential race.
• According to traders December remains in play, but further rate cuts in 2025 are fading as policy gets closer to neutral. “Today’s data shouldn’t change views of the likely path for disinflation, however bumpy. But a lot of observers, probably including some at the Fed, are looking for reasons to get more hawkish on the outlook given the potential for inflationary policy change like new tariffs.”

(Sources: CNBC & Reuters)

• Tropical Battery Company Limited (TROPICAL) announced that on September 19, 2024, it acquired a property for $950Mn in Ferry Pen, Kingston 20.

• The property was acquired from Diverze Properties, an associated company under the DAI Diverze (Jamaica) Limited group.

• This acquisition supports Tropical Battery's growth strategy, enhancing its operational capabilities, reducing related-party loans, and is expected to have a positive impact on its financial performance.

• Since the beginning of the year, the company has been making headlines with several key partnerships, including becoming the authorized reseller for eGauge Systems, a provider of commercial, industrial, residential and renewable energy monitoring solutions based in US, and the official dealer for electric car manufacturing giant, Tesla.

• In addition, the company acquired Silicon Valley, California-based Rose Electronics for almost US$20Mn earlier this year, which contributed 55% and 65% to its Q3 revenues and operating profit, respectively. The acquisition was completed through Tropical’s US subsidiary - Tropical Battery USA LLC. This acquisition reaffirmed its commitment to transforming Tropical Battery into a multinational organization at the vanguard of innovative growth in emerging segments driving the transition to more sustainable energy solutions.

• Tropical Battery’s stock price has increased by 28.2% since the start of the calendar year fueled by strong year-to-date earnings growth and promising growth opportunities driven by recent strategic developments. The stock closed Wednesday’s trading session at $2.50 implying a P/E of 15.8x last 12 months’ earnings, which is above the Junior Market Distribution Sector Average of 20.0x.

(Sources: JSE & NCBCM Research)