• A surge in new business helped Britain's services sector to grow by the most in more than a year last month as concerns about U.S. tariffs eased, but firms remained worried about the prospect of tax rises at home.
• The S&P Global Purchasing Managers' Index for Britain's services sector rose to 54.2 in August from 51.8 in July, reaching its highest level since April 2024. The figure was above a preliminary reading of 53.6 and comfortably exceeded the 50 mark, which divides growth from contraction.
• The composite PMI - which includes Monday's downwardly revised manufacturing PMI - rose to a 12-month high of 53.5 from 51.5 in July and an initial August reading of 53.0. The upbeat data is likely to relieve finance minister Rachel Reeves as she looks ahead to her autumn budget. Many businesses blame her decision to hike their social security contributions in last year's budget for weak demand and higher costs.
• Firms reported the biggest increase in costs in three months and continued to reduce staff numbers. Employment as measured by the PMI has fallen for 11 consecutive months - the longest continuous period since a run between 2008 and 2010 aside from the COVID-19 pandemic.
• Although Britain's economy grew faster than elsewhere in the G7 in the first half of this year, much of that reflected higher government spending and a temporary boost to exports as businesses sought to avoid some U.S. tariffs. The PMI's measure of new business in the services sector saw its biggest one-month gain since March 2021, reflecting stronger consumer demand and the first rise in exports since April.
• Expectations for future business volumes were also boosted by lower borrowing costs and reduced fears over U.S. tariffs. "However, many service providers still commented on elevated government policy uncertainty and worries about forthcoming tax-raising measures expected in the autumn Budget," Moore said.

(Source: Reuters)

• Japanese corporate spending on plant and equipment climbed 7.6% y/y in Q2 (Apr-Jun), but the outlook for business investment has clouded as manufacturers' profits slide on pain caused by U.S. tariffs.
• On one hand, the healthy rise in capital expenditure supports the case for the central bank to raise interest rates again later this year. The same finance ministry data also showed, however, that while overall, recurring profits increased 0.2%, they tumbled 11.5% for manufacturers, led by a 29.7% plunge for automakers.
• Economists noted that exporters have so far absorbed higher U.S. tariffs by cutting prices, but sustained margin pressure could weigh on future investment. Preliminary GDP data showed 1.0% annualised growth in Q2, but revised figures due Sept. 8 are now expected closer to 0.8% as capex estimates are adjusted lower.
• Risks loom in Q3, with July exports logging their steepest drop in four years and industrial production dragged by a 6.7% fall in auto output.
• A Japan- U.S. trade deal in July is expected to lower auto tariffs to 15% from 27.5%, though the timing remains uncertain pending U.S. presidential approval.

(Source: Reuters)

• Global stocks fell and long-dated bond yields in Europe hit multi-year highs on Tuesday as investors grew increasingly worried about the state of finance in countries around the world.
• U.S. indices closed lower, with the Dow Jones down 0.55%, S&P 500 off 0.7%, and Nasdaq falling 0.8%.
• Meanwhile, European bond markets saw sharp moves, with France’s 30-year yield at 4.5% (16-year high), Germany’s at 3.4% (14-year high), and UK gilts at their highest since 1998, as investors looked warily ahead to the government's autumn budget plans.
• French Prime Minister Francois Bayrou looks set to lose a confidence vote as opposition parties balk at his cuts to government spending, while British finance minister Rachel Reeves is expected to raise taxes in her autumn budget to remain in line with her fiscal targets.
• "Global bond markets are starting the month with a nervous glance towards upcoming government budget discussions in the U.S. and in Europe," Paul Christopher, head of global investment strategy at the Wells Fargo Investment Institute.
• Bond yields move inversely to prices and yields, especially on super-long-dated 30-year bonds, have been soaring around the world, with investors concerned about the scale of debt in countries from Japan to the United States.
• Kenneth Broux, head of corporate research FX and rates at Societe Generale, noted that "the flurry of new primary issuance that awaits investors in the coming days and weeks threatens to exacerbate the global selloff in the long end.

(Source: Reuters)

• President Luis Abinader announced that the Dominican Republic is now the second country with the highest air connectivity index in Latin America, growing from 878 to 1,096 air routes between 2020 and 2025, thanks to the Open Skies policy.
• He emphasised that aviation is projected to contribute US$15.0Bn in direct and indirect revenue by the end of 2025, representing 11.0% of the national GDP in tourism-related contributions. The sector is also expected to create over 40,000 direct jobs and more than 540,000 indirect jobs.
• Abinader credited this progress to coordinated efforts by the Civil Aviation Board (JAC), the Dominican Civil Aviation Institute (IDAC), the Airport Department (DA), and the General Directorate of Customs (DGA).
• Recent reforms, including Laws 57-23 and 17-24, have strengthened the aviation framework with tax incentives, regulations for drone operations, improved navigation systems, and expanded training programs.
• As at 2025, the country hosts 365 active airlines—13 of them domestic—marking a 365% increase in available seats for Dominican carriers. Airlines like Arajet and Sky High Aviation have expanded connectivity to 414 destinations across 75 countries.

(Source: Dominican Today)

• The Organisation of Eastern Caribbean States (OECS) Commission said yesterday it has signed a memorandum of understanding (MoU) with the International Solar Alliance (ISA) to strengthen support for the member countries of the sub-region in advancing their sustainable energy goals.
• ISA is an intergovernmental organisation working to accelerate the adoption of solar energy technologies by providing policy support, capacity building, and technical assistance to 124 members across Africa, Latin America and the Caribbean (LAC) as well as Asia and the Pacific (APAC) regions. The OECS was represented by Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines.
• The meeting discussed advances in solar energy and opportunities to best leverage financing and partnerships to increase the uptake of solar energy. The OECS Commission said the MoU acknowledges the critical role that clean energy plays in building resilience to climate change in the Eastern Caribbean, as well as the pivotal role indigenous energy can play in transforming the economies of small island developing states (SIDS).
• It said the partnership framework establishes several areas of cooperation, including supporting the promotion of solar energy, the OECS Sustainable Energy Framework, the OECS Sustainable Energy Greenprint, and the Caribbean NDC Finance Initiative.

(Source: Trinidad Express)

• A.S. Bryden & Sons Holdings Limited (ASBH) announced that it purchased a 50% interest in Armstrong Agencies Limited (AAL), creating a partnership between the two companies. The transaction was carried out through ASBH’s subsidiary in Barbados, Retail Acquisition Company Limited (RACL), which also owns Stansfeld Scott (Barbados) Limited. In the transaction, RACL is both injecting additional capital into AAL to support future growth and purchasing shares from its existing shareholders.
• Armstrong Agencies Limited is a premier Barbadian distributor representing global brands across the food, beverage, confectionery, personal care, and pharmaceutical sectors. The family-owned enterprise has served the local market for over three decades.
• "This investment marks a significant milestone in our strategic vision for regional expansion," said Richard Pandohie, CEO of The Brydens Group. "Armstrong Agencies is a highly respected company with a deep-rooted presence in the Barbadian market. This partnership strengthens our portfolio and allows us to build upon our shared values and commitment to delivering quality products and services to the Caribbean."
• The agreement formalises a long-standing relationship between ASBH and AAL, which previously saw the two entities jointly own and operate Armstrong Healthcare, an affiliate of Bryden PI in Barbados. The investment is designed to enhance the existing partnership and enable ASBH to broaden its footprint in the Barbadian market by introducing the full range of its product portfolio.
• "We are thrilled to embark on this new chapter with A.S. Bryden & Sons Holdings," said Christopher Lambert, CEO of Armstrong Agencies Limited. "Their history of success and commitment to excellence aligns perfectly with our own. This collaboration ensures the continuity of our legacy while providing the resources and expertise needed to achieve new levels of growth and innovation. We are confident that this partnership will be of great benefit to our customers, suppliers, and employees."
• AAL's current leadership and operations team will remain in place, ensuring business continuity and a smooth transition. The acquired business will fall under the purview of Rakeesh Bernard, who serves as the CEO of the Barbados Business Unit for The Brydens Group.

(Source: JSE)

• Output prices for producers in the Mining and Quarrying industry, a component of the producers' price index (PPI), increased by 15.5% for July 2025, while another PPI component, the index for the Manufacturing industry, increased at a much slower pace of 1.1% according to the Statistical Institute of Jamaica (STATIN).
• The outturn for the Mining & Quarrying industry was driven by a 16.4% rise in the index for the major group ‘Bauxite Mining & Alumina Processing’. The PPI for the other major group, ‘Other Mining & Quarrying’, moved up by 0.1%.
• The increase in the PPI for the Manufacturing industry was largely due to the major groups ‘Food, Beverages & Tobacco’ (0.3%), ‘Refined Petroleum Products’ (4.5%) and ‘Chemicals and Chemical Products’ (1.5%).
• For July 2024 – July 2025, the point-to-point index for the Mining & Quarrying industry decreased by 6.3%. This was primarily due to a decline of 7.2% in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• Meanwhile, the point-to-point index for the Manufacturing industry increased by 1.2%, mainly due to a 3.2% increase in the index for the major group ‘Food, Beverages & Tobacco’. The industry’s overall increase was; however, tempered by an 8.6% fall in the index for the major group ‘Refined Petroleum Products’.
• The rebound in Mining & Quarrying prices in July 2025 may provide a short-term boost to export earnings, but the year-over-year decline signals persistent external headwinds that could weigh on foreign exchange inflows and government revenues. Meanwhile, the steady uptick in Manufacturing points to greater stability. Looking ahead, the divergence between these two industries will remain a key factor influencing Jamaica’s overall price dynamics and balance of payments performance.

(Sources: STATIN and NCBCM Research)

• Kingston Wharves Limited (KWL) saw its second quarter ended June 30, 2025 (Q2 2025) earnings surge by 37.6% to J$922.05Mn. The increase came as higher direct revenues outpaced the rise in direct and indirect costs.
• Q2 2025 revenues rose to J$3.18Bn, (up 25.1% or J$638.714Mn year-over-year), driven by robust terminal operations and logistic services revenues. This growth came on the back of increased transshipment activities, a key area of strategic focus for the company, along with strong growth in motor units handled, increased container activity, higher volumes in bulk, and breakbulk operations.
• In line with revenue growth, direct expenses grew by 16.4% to J$1.69Bn. However, with the robust pace of revenue growth, gross profits increased by 36.8% to J$1.49Bn and the gross profit margins increased from 42.8% to 46.7%.
• Operating expenses also rose 22.3%, primarily due to head office charges to the logistics division and cost increases in connection with improved safety, security, customs protocols and technology systems. However, operating profits remained strong at J$1.13Bn (+34.1%), with operating margins rising from 33.2% to 35.6%.
• KWL’s Q2 2025 results, coupled with solid earnings in Q1 2025, contributed to higher six-month earnings (H1 2025). Net profits experience a 21.3% increase in H1 2025 to $1.72Bn, with net profit margin inching up to 28.7% from 27.7% in the previous corresponding period.
• Looking ahead, the management of KWL is approaching the remainder of 2025 with cautious optimism, navigating a more complex global trade landscape influenced by new tariffs and shipping-related charges between the United States (U.S.) and other countries. These developments continue to challenge and disrupt established supply chains and trade routes for shipping lines, cargo owners, and broader economies.
• Nonetheless, KWL’s strategic focus remains on expanding its role as a terminal and logistics centre by advancing digital transformation, upgrading infrastructure, promoting sustainability, and investing in human capital. The Company is also focused on targeted infrastructure investments that are critical to improving operational efficiency and strengthening links with key shipping services.
• As at the close of trading on Monday, September 1^st, KWL shares’ price was J$30.00, reflecting an 8.8% year-to-date decline. At this price, the shares trade at a P/E of 15.87x, which is above the Main Market Energy, Industrials and Materials Sector average of 15.85x.

(Sources: KWL Financial Release & NCBCM Research)

• Fitch Solutions anticipates that Jamaica’s fiscal trajectory will remain sustainable in FY2025/26 (FY: April–March) and beyond. For FY2025/26, the agency anticipates that total revenues and expenditures will equal 32.7% of GDP, resulting in a virtually balanced budget.
• A nearly balanced budget in FY2026/27 is also anticipated, with total revenue and expenditure at 31.2% and 31.7% of GDP. Furthermore, the primary balance (expenditures less interest payments) is set to come in at a healthy 5.3% of GDP for FY2025/2026 and 3.5% for FY2026/2027.
• Provisional estimates of government expenditure and revenue for the first three months of FY2025/2026 support this near-term view. Total expenditure for April–June 2025 was 6.5% less than the budgeted amount for this period, while total revenue aligned with the government’s budget estimates, with J$232.2Bn in total revenue collected.
• While prevailing wisdom would suggest an uptick in government outlays in the months prior to a high-stakes general election, scheduled for September 3, the most recent central government operations data does not show such a trend. Instead, data show continued fiscal restraint, which will likely continue over the near and longer terms, due to broad political commitment to fiscal responsibility, underpinning our upbeat outlook for Jamaica’s public finances.
• Overall, Jamaica’s sustainable fiscal path is supported by strong institutional and policy frameworks. Jamaica’s Fiscal Responsibility Law, established in 2010 and amended in 2014 following successful debt reduction efforts, has shaped the country’s fiscal policy and enabled successful debt reduction since its inception.
• Jamaica has also reduced its overall debt-to-GDP ratio over the past 10 years, from 121.0% of GDP to under 70% by 2024. Furthermore, the debt-to-GDP ratio will likely meet the 60% of GDP goal by 2027, in line with projections from the IMF and Jamaica’s Independent Fiscal Commission (IFC).

(Source: BMI, a Fitch Solutions Company)

• The Dominican Government, through the Ministry of Energy and Mines (MEM), signed a production-sharing contract with the Global Mining consortium for the exploration and eventual production of hydrocarbons in the Cibao Basin, a strategic step toward the country’s energy diversification and security.
• The contract was signed by the Minister of Energy and Mines, Joel Santos, and Félix Manuel Santana Reyes, the consortium’s representative, and established an eleven-year concession for the exploration and exploitation phases of both blocks.
• With this signing, the Ministry of Energy and Mines strengthens its strategy to continue consolidating a national oil and gas exploration and production industry, while preparing to launch the Second Oil Round in 2026, with new available areas that will expand investment opportunities and strengthen the Dominican Republic’s energy security.
• Minister Santos expressed optimism about this new project, as it represents a historic opportunity to confirm the country’s energy potential and lay the foundations for greater energy independence and security. The official explained that, in terms of benefits, the State will receive a minimum share of 43% of total oil revenue, along with the creation of direct and indirect jobs, technical training programs for youth, and community development initiatives.
• He also specified that the contract includes strict provisions for environmental protection and industrial safety, ensuring that activities are carried out in compliance with international sustainability standards. “Respect for the environment and sustainable development are fundamental pillars of our policy. The Global Min consortium will embrace this commitment at every stage of the project,” Santos added.

(Source: Dominican Today)