• Listed energy company FESCO has officially launched its line of liquefied petroleum gas (LPG) products.
• Speaking at the launch on Thursday, FESCO’s Managing Director Jeremy Barnes said the company has been testing FESGAS in the market since April.
• The company has tripled its throughput capacity at its location by just testing the market. This month, the company will be targeting commercial customers. Currently, the company operates in Kingston and St. Andrew, St. Catherine, Clarendon, Mandeville, and parts of St. Mary through its distribution outlet in Stony Hill.
• Barnes boasted that FESCO's innovation includes the use of no-BLEVE (boiling liquid expanding vapour explosion) cylinders, which is a technology that makes it safe for apartment use.
• He further highlighted that FESCO has already captured 2.5% of the market share in the few months since it began offering LPG.
• The company’s entrance into the LPG market adds a new product line that will be a growth driver for FESCO that will ultimately bring value to its shareholders.

(Source: RJR)

• The Trinidad and Tobago-based ANSA McAL Group of Companies will be investing more than $150 million in its operations in Jamaica this year as part of the management’s strategic thrust to improve the entity’s efficiency and profitability.
• Chief Executive Officer (CEO), Anthony N. Sabga III, made the disclosure while addressing a special reception hosted by the entity for Jamaican business stakeholders on Thursday (July 6) at The Jamaica Pegasus Hotel in New Kingston.
• Sagba noted that the company will invest more than $150 million in retooling Jamaican operations to drive further efficiencies and capacity expansion. He further noted that Jamaica is part of the company’s journey of achieving its ambitious target, which is to double its size and profitability by 2027, to achieve US$300 million profit annually.
• ANSA McAL Limited, which comprises 48 companies, is one of Trinidad’s largest conglomerates. Its activities encompass the automotive, beverage, construction, distribution, financial services, manufacturing, real estate, retail, media, and service sectors. The Group, which has been operating for 140 years, has business interests in eight territories in the Caribbean, Europe, and North America. In 2017, the entity completed its acquisition of Lewis Berger Overseas Holdings, a major shareholder of all three Berger paint companies in Trinidad and Tobago, Barbados, and Jamaica.
• Minister of Industry, Investment and Commerce, who was happy to hear the announcement, noted that the planned investment has significant potential for the local manufacturing sector.
• One of the major benefits of this development will be gainful employment for more individuals which by extension, will be beneficial to the country’s employment and output figures.

(Source: JIS)

• CARICOM Heads of Government have decided on free movement for all CARICOM nationals by March of next year, going beyond the current CARICOM Single Market and Economy (CSME) regime of free movement of agreed categories of skilled nationals.
• The decision came at the historic 45th Meeting of the Conference of Heads of Government which coincided with the golden jubilee anniversary of CARICOM.
• CARICOM Chair, the Hon Roosevelt Skerrit, Prime Minister of Dominica, made the announcement on Wednesday, July 5 at a press conference at the conclusion of the meeting.
• “We have taken the decision to seek to have the free movement of all categories of people to live and work. Obviously, there are some legal issues that we have to examine, and we have given the legal people some months to examine those legal issues and to ensure that they could come to us by the 30th of March 2024 to take a definitive position on this. We understand that there are some challenges for some, but we are committed to this,” Prime Minister Skerrit said.
• Prime Minister of Barbados, the Hon. Mia Mottley, who holds responsibility for the CSME in the CARICOM Quasi Cabinet, pointed out that “out of an abundance of caution and to be sure-footed, there are some aspects of the Treaty that will require amendments, and therefore, we are giving ourselves between now and the 30th of March 2024, to make the amendments, because we recognise as well that there may have to be an approach that does not make countries liable to any form of suit with respect to some of the rights.”
• Prime Minister Mottley also indicated that Heads of Government have agreed to Haiti’s request for a derogation of the free movement agreement given the circumstances of that Member State.
• This free movement of people would in turn lead to greater job opportunities as people are now afforded the opportunity to travel and work in areas that require their skill set without legal restrictions; which by extension is anticipated to drive remittance receipts and prompt transfer of skills.

 (Source: CARICOM)

• Fitch Solutions forecast Guyana’s fiscal deficit will widen from 2.2% of GDP in 2022 to 3.0% in 2023 given the government’s planned 41.4% increase in headline expenditure over the year.
• While this suggests a slight deterioration in the market’s fiscal trajectory, Fitch notes that the projected deficit remains comfortably below both the 5-year and 10-year historical average deficits of 5.0% and 4.3%, respectively.
• The successful offshore oil field explorations and developments in Guyana in recent years have prompted the government to increase headline expenditure by double-digit growth rates since 2019, and 2023 will be no exception to this trend.
• Nonetheless, Oil revenues will record large gains in the medium term as production continues to rise amid stabilising prices, suggesting that Guyana will hit its first surplus in Fitch’s records by 2024.
• Overall, Fitch sees limited risks to Guyana’s medium-term fiscal trajectory due to persistent surpluses and a low debt-to-GDP ratio (24.6% in 2022 and averaging 25.6% between 2023 and 2027).

(Source: Fitch Solutions)

• As the dust settles from a string of government seizures of failed midsized banks, the forces that sparked the regional banking crisis in March are still at play.
• Rising interest rates will deepen losses on securities held by banks and motivate savers to pull cash from accounts, squeezing the main way these companies make money. Losses on commercial real estate and other loans have just begun to register for banks, further shrinking their bottom lines. Regulators will turn their sights on midsized institutions after the collapse of Silicon Valley Bank exposed supervisory lapses. 
• What is coming will likely be the most significant shift in the American banking landscape since the 2008 financial crisis. Many of the country’s 4,672 lenders will be forced into the arms of stronger banks over the next few years, either by market forces or regulators, according to a dozen executives, advisors and investment bankers who spoke with CNBC.
• After 10 straight rate hikes and with banks making headline news again this year, depositors have moved funds in search of higher yields or greater perceived safety. Now the too-big to-fail-banks, with their implicit government backstop, are seen as the safest places to park money. Big bank stocks have outperformed regionals. JPMorgan shares are up 7.6% this year, while the KBW Regional Banking Index is down more than 20%.
• Compounding the industry’s dilemma is the expectation that regulators will tighten oversight of banks, particularly those in the $100 billion to $250 billion asset range, which is where First Republic and SVB slotted.
• “Higher fixed costs require greater scale, whether you’re in steel manufacturing or banking,” he said. “The incentives for banks to get bigger have just gone up materially.” Half of the country’s banks will likely be swallowed by competitors in the next decade, said Chris Wolfe, a Fitch banking analyst. In the meantime, banks are already seeking to unload assets and businesses to boost capital, according to another veteran financials banker and former Goldman Sachs partner. 

(Source: CNBC)

• The European Union signed a free trade agreement with New Zealand on Monday that the two sides expect will increase bilateral trade by up to 30% within a decade. New Zealand will gain up to 1.8 billion New Zealand dollars ($1.1 billion; €1 billion) in exports to the 27-country bloc every year, a government statement said.
• The deal brokered over five years will cut NZ$248 million ($153 million; €140 million) a year in duties, a European Commission statement said. “New Zealand is a key partner for us in the Indo-Pacific region and this free trade agreement will bring us even closer together. With today’s signature, we have taken an important step in making the agreement a reality,” European Commission President Ursula von der Leyen said.
• Duties will be removed on 91% of New Zealand’s goods exported to the EU from the start of the agreement, rising to 97% after seven years. The deal has yet to be ratified by the two sides' parliaments and a start date set.

(Source: Yahoo Finance)

• The House of Representatives, on Tuesday (June 27), approved the Bauxite and Alumina Encouragement (Relevant Concession Period) Order, 2023. The Order will facilitate further extension of the duty concession on fuel for the bauxite sector, for the next five years.
• The Bauxite and Alumina Industries (Encouragement) Act was previously amended to grant the duty concession for the period July 1, 2018, to June 30, 2023. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, informed that while the bauxite industry continues to make a tremendous impact on the economy, the sector continues to rely on the concession to remain afloat. Due to this, a policy decision was taken to extend the concession for an additional five years.
• The Act allowed for this concession period to be amended simply by issuing an Order, subject to affirmative resolution after review of the needs of the industry, thus eliminating the need to embark upon elaborate legislative changes, going forward.  Dr Clarke noted that withdrawal of the benefit would have grave economic implications for Jamaica, inclusive of a potential closure of the industry.
• However, he gave the assurance that the relevant engagements are ongoing to encourage the bauxite and alumina sector to reduce their dependence on the type of fuel being utilized, based on the Government’s move to utilize cleaner energy resources in all sectors.

 (Source: JIS)

• Electrical, lighting and PVC company Fosrich Limited is seeking to raise J$139.32Mn by way of a provisional allotment under a non-renounceable Rights Issue of 55,729,647 New Ordinary Shares.
• Existing ordinary stockholders as of the record date (June 2, 2023) may participate. The offer, which allows existing shareholders to acquire new shares to be issued by the company, will open on July 11 and close on August 18, 2023.
• Each existing ordinary stockholder on the record date will be provisionally allotted: One new ordinary share for every 90 existing ordinary stock unit(s) held on the record date (and so in proportion for any other number of existing ordinary stock units then held).
• The new shares will be sold for $2.50, which is 11.1% higher than its market price ($2.25) at the close of day on Wednesday July 5, 2023.
• The Company intends to use the proceeds to complete the second phase of the new 30,000 square foot Fulfilment Centre located at 76 Molynes Road as well as to pay the expenses associated with the Rights Issue, which it estimates will not exceed J$9 million inclusive of General Consumption Tax.

(Source: JSE)

• The head of the Ministry of Economy and Finance (MEF), Héctor Alexander, highlighted Saturday, July 1, that in the region, Panama leads economic growth, while maintaining lower inflation.
• "We have low inflation and, above all, what has been done in terms of public finances allows us to continue with investment grade (and pro-business) economic policies, being one of the few countries in the region that have it and one with the lowest level of risk, which benefits not only the government and its transactions but also to the operations that are carried out in Panama”, Alexander highlighted upon arriving for the installation of the National Assembly.
• “The Panamanian economy has been growing very well, 15.8% in 2021 10.8% in 2022, and it is estimated that at the end of the year, growth will be 5%.”, Alexander detailed to the media on the outskirts of the chamber.
• He added that Panama's economic growth continues to lead the region, and along with that, it can be said that the country also leads one of the lowest inflation rates, not only in Latin America but in the world, recording 2.6% in 2021, an estimated 2.1% for 2022 and a forecasted 0.5% for 2023.

(Source: Newsroom Panama)

• Costa Rica has unlocked a total of around $519Mn for its economic reform programme and a climate and sustainability programme, the International Monetary Fund (IMF) said.
• Around $274Mn went to the economic reform programme, which is one instalment in the more than $1Bn Costa Rica has received from the IMF under the arrangement, the fund said. Another $245Mn goes to the resilience and sustainability arrangement.
• The Central American country met its fiscal targets by large margins, further strengthening debt sustainability, Kenji Okamura, acting chair of the IMF board, said in a statement.
• Additionally, proposed tax reforms, including recently submitted legislation, will make the system more progressive, equitable, efficient, and environmentally friendly. The steady improvement in public debt management is also welcomed.
• "While there is scope for further monetary easing in 2023, policies should remain attentive to risks to the inflation outlook," he added.
• The IMF pegged Costa Rica's real gross domestic product (GDP) growth for this year at 3.0% and 3.2% in 2024.

(Sources: IMF & Reuters)