• Industry, Investment and Commerce Minister, Senator the Hon. Aubyn Hill, has welcomed the expansion of the Jamaica Packaging Industries (JPI) operations in Jamaica, with its new 130,000-sq. ft. complex located at 693 Spanish Town Road.
• This is the latest investment by the company, resulting in the consolidation of its manufacturing, distribution and retail sales operations under one roof. The investment increases JPI's production capacity by 250%.
• Minister Hill noted that the company’s expansion augurs well for domestic industries, providing locally produced corrugated packaging¹, given that an estimated 60% of cartons used in Jamaica were imported over the last year.
• “They have put in enough capacity to make sure they can make enough to cover that 60% and to cover more later as the market grows. We are looking for this expansion to employ a lot more people. This is an important new investment in the Jamaican manufacturing landscape,” he said.
• Notably, the investment covers property, plant, machinery and equipment, which includes a state-of-the-art corrugator; a high-speed folder gluer machine capable of high-quality printing, slotting, glueing, and folding of cartons; a modern die-cut machine capable of producing more complex display cartons and display trays; and an effluent treatment plant.
• Chairman of JPI, Conrad George, said the facility, located on Kingston’s major industrial belt, is a strategic move that will be beneficial to the country and its local manufacturing, distribution and export sectors.

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¹Corrugated packages are made up of a few layers of material rather than just a single sheet like cardboard. These packages are typically resilient and lightweight and are good when shipping a significant number of packages.

(Source: JIS)

• Trinidad and Tobago’s Finance Minister Colm Imbert has announced that EximBank's forex window has been reopened, with a US$25Mn monthly allocation. In a release on November 3, Imbert noted that the decision to resume the window from November 1 was made by the Cabinet after a comprehensive review by his ministry.
• The window was created in 2020 in response to the COVID-19 pandemic and ran until September 2024. The foreign exchange (FX) facility consumed US$30Mn monthly since its inception.
• Additionally, the government will allocate US$25Mn a month to EximBank for the window, a reduction of US$5Mn from the previous iteration, noting that the forex window for export manufacturers is not being adjusted and will remain.
• The government is also reviewing the role and impact of locally manufactured products, which substitute for imports and will consider greater access to forex for inputs for local consumption. "Further details of this aspect of forex distribution will be announced after consultation with stakeholders."
• Business groups have welcomed the reintroduction of a restructured forex window from the EximBank for essential imports and economists have joined them in rejecting the idea of a "floating" foreign exchange solution to the country's shortage.
• Amid continuing tension about foreign exchange availability, there is a broader trend among local banks being forced to adapt due to FX shortages impacting the banking sector over recent years. Most recently, Scotia Bank T&T announced last week that effective December 1, 2024, it would reduce the maximum US dollar spending limit per calendar month on its credit cards to US$5,000 and US$2,000 until further notice and that the ScotiaCard Visa debit card would no longer offer overseas point-of-sale purchases.
• The decision drew public criticism amid outcries from business owners struggling to access foreign exchange.

(Sources: Trinidad and Tobago Newsday & Trinidad and Tobago Guardian)

• The Dominican Republic’s tourism sector reached a historic milestone with 8,362,285 visitors from January to September, the highest number ever recorded for this period.
• Tourism Minister David Collado announced the figures, highlighting 580,617 visitors in September alone with 468,916 arriving by air and 111,701 by sea. This marks a 55% increase over September 2019 and 21% over 2022.
• So far in 2024, the country has welcomed 6,430,400 air travellers and 1,931,896 cruise passengers. Minister Collado noted this total visitor count reflects a 45% rise from 2019, a 36% increase from 2022, and a 10% increase from 2023. He projects the year will end with 11.5Mn visitors, setting a new record.
• Leading tourist source markets include the United States (39%), Canada (9%), and Colombia (8%). Punta Cana Airport received the most visitors at 56%, followed by Las Américas (27%) and Cibao (12%).

(Source: Dominican Today)

• Trump, 78, recaptured the White House on Wednesday by securing more than the 270 Electoral College votes needed to win the presidency, Edison Research projected, following a campaign of dark rhetoric that deepened the polarization in the country.
• The former president's victory in the swing state of Wisconsin pushed him over the threshold. As of 5:45 a.m. ET Trump had won 279 electoral votes to Harris' 223 with several states yet to be counted. He also led Harris by about 5 million votes in the popular count.
• Republicans won a U.S. Senate majority, but neither party appeared to have an edge in the fight for control of the House of Representatives where Republicans currently hold a narrow majority. Major stock markets around the world rallied following Trump's victory, and the dollar was set for its biggest one-day jump since 2020.
• Trump’s victory will have major implications for U.S. trade and climate change policies, the war in Ukraine, Americans' taxes and immigration. His tariff proposals could spark a fiercer trade war with China and U.S. allies, while his pledges to reduce corporate taxes and implement a spate of new cuts could balloon U.S. debt, economists say. He has also promised to launch a mass deportation campaign targeting immigrants in the country illegally.

(Source: Reuters)

• U.S. services sector activity unexpectedly accelerated in October to a more-than two-year high, and employment strengthened, giving more evidence that the economy is in solid shape as the nation headed to the polls to pick the next president.
• The Institute for Supply Management (ISM) said on Tuesday that its nonmanufacturing purchasing managers (PMI) index accelerated to 56.0 last month from 54.9 the prior month. It was the highest level since August 2022. Economists polled by Reuters had forecast the services PMI declining to 53.8.
• A PMI reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of the economy. The ISM views PMI readings above 49 over time as generally indicating an expansion of the overall economy.
• The ISM survey's new orders measure eased to 57.4 in October from 59.4 in September. The ISM's prices paid measure for services inputs ticked down to 58.1 from the prior month's eight-month high of 59.4.
• ISM's measure of services employment rose to 53.0 in October, up from 48.1 in September, a signal of strengthening job growth. The reading appears at odds with last Friday's Labor Department report showing employers sharply slowed hiring last month, adding just 12,000 jobs.
• However, the report was widely seen as overstating job market weakness, given an ongoing Boeing strike that hammered manufacturing jobs and a pair of hurricanes that kept more than half a million people from work.

(Source: Reuters)

• Despite solid growth in total revenues and contained costs, Wigton Windfarm’s profits for the first six months of its financial year ending March 31, 2025 (H1 2025) softened in the absence of one-off income tax adjustments it experienced the prior year.
• In keeping with the Government of Jamaica's policy to facilitate growth in the renewable energy sector, Wigton benefitted from a one-off tax adjustment in H1 2024 given its operations in the renewable energy sector, which bolstered its financial performance. However, there was no tax adjustment for H1 2025, which led to a 38.6% dip in earnings. Excluding the one-off tax adjustment in H1 2024, earnings would have grown by 121.3% in H1 2025.
• Notably, the benefit was enacted within the financial year ending March 31, 2024, allowing the Company to file its 2023 tax return at a rate of 25% while making the relevant adjustments in its financial statements beginning in the second quarter of the financial year ending March 31, 2024.
• Total revenues (sales and other income) rose by 12.9% to J$1.42Bn for H1 2025, reflecting growth in other income to $0.42Bn (+105.6%) which more than compensated for a 4.9% decline in sales to $1.05Bn. Downtime of the wind turbines associated with Hurricane Beryl resulted in a 32.5% reduction in energy sales to $0.38Bn in Q2, weighing on the overall H1 energy production and consequently revenues. With the downtime caused by Beryl, Wigton made provisions for the anticipated proceeds from its business interruption insurance, which boosted other revenues, resulting in a 105.6% increase in other income.   
• Cost of sales (COGS) and general administrative expenses declined by 13.5% and 10.8% to J$228.79Mn and J$190.56Mn respectively for the review period. Continued expense management and operational efficiencies supported the reduction in direct costs. Finance expenses also declined by 13.1% YoY for H1 2025, as the Company continues to benefit from the March 2022 restatement of its Bonds, which introduced lower interest rates and quarterly principal payments.
• At the close of the stock market on November 4th, 2024, Wigton's share price stood at $1.06, implying a P/E ratio of 17.10x, which is above the peer average for the Energy, Industrials and Materials (EIM) industry¹ of 10.69x.
• Looking ahead, Wigton will concentrate on five (5) strategic pillars to achieve sustained profitable growth, one priority being growth through diversification. The company is focused on diversifying into other renewable energy solutions while improving operational efficiency and seeking solo or partnered investment opportunities. This shift is crucial for sustaining shareholder value and ensuring long-term growth by diversifying into new areas and expanding the company’s capabilities to improve earnings.

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¹The EIM industry consists of CCC, MPCCEL, WIG, TJH, KW, and BRG

(Sources: JSE & NCBCM Research)

• Minister of Education, Skills, Youth and Information, Senator Dr. the Hon. Dana Morris Dixon, affirmed the Government of Jamaica’s (GOJ’s) commitment to strengthening the country’s financial regulatory framework to safeguard citizens’ interests and ensure full compliance with global standards.
• Minister Morris Dixon was contributing to a debate on the Financial Services Commission (Amendment) Act, 2024 in the Senate on Friday, November 1, 2024. The Bill seeks to address deficiencies in existing laws to fight money laundering and ensure compliance with international anti-money laundering standards.
• Dixon noted that the legislation represents an essential step to modernise and strengthen Jamaica’s regulatory framework to respond to local needs and put its systems on par with international standards and best practices. She cited the tireless work done to implement policies and laws, which resulted in the country being removed from the Financial Action Task Force’s (FATF) Grey List on June 28 this year.
• Minister Moris Dixon also pointed to the Twin Peaks Model of Financial Regulation and Supervision as one measure in enhancing the country’s financial sector supervision and regulation. Under the twin peaks model, the Bank of Jamaica (BOJ) will be fully responsible for the prudential supervision of all bank and non-bank financial institutions. Meanwhile, the Financial Services Commission (FSC) will be transformed into a new regulatory entity that will supervise the market conduct of all bank and non-bank financial institutions to protect consumers.
• Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, in piloting the Bill, said…the legislation gives Jamaica another regulatory tool to enhance financial sector stability and offer a greater level of protection for financial consumers.
• While the GOJ pushes for a stronger financial framework, Jamaica faces stability challenges like high interest rates and consequent credit and market risk increases, financial groups’ interconnectedness, climate, and cyber risk. These risks are prevalent in other Caribbean countries. That said, Jamaica has some specificities compared to its Caribbean neighbours like a developed security market and the significant role played by security dealers. Against this background, financial stability is equally as important as other policies requiring comprehensive strategies and the support of the government and other key stakeholders like the Central Bank to support financial stability.

(Sources: JIS, IMF & NCBCM Research)

• The Central Bank of the Dominican Republic (BCRD) released preliminary economic activity results for September 2024. The monthly indicator of economic activity (IMAE), a key indicator of robust economic performance, recorded a 4.7% expansion during September of this year, with an average year-over-year (YoY) growth of 5.1% from January to September 2024.
• This growth was largely due to the performance of construction (+4.4%) and free trade zone manufacturing (+6.5%), with exports under this regime amounting to US$6,404.1Mn in the referred period.
• Likewise, service activities experienced an accumulated increase of 5.3% relative to the same period of the previous year, among which financial intermediation (+7.9%), hotels, bars and restaurants (+6.3%), transportation and storage (+5.9%), real estate and rental activities (+5.7%) and communications (+5.1%) stood out.
• Financial intermediation’s real aggregate value grew by 7.9%, influenced by the 16.2% (or RD$309,554.3Mn) expansion of local currency credit granted to the private sector. While the added value of the hotels, bars, and restaurants activity increased by 6.3% primarily influenced by passengers’ arrivals through the different airport terminals.
• Of note, although mining declined by -6.1% from January to September, it increased by 8.5% in August and 16.9% in September, following increased gold production in the country’s main deposit.
• The overall performance occurred in an environment of price stability, supported by effective monetary and fiscal policies that have mitigated risks to Dom Rep’s economy.

(Source: Dominican Today)

• The Lodging Econometrics‘ (LE) Q3 2024 Latin America Construction Pipeline Trend report signals growth for the region’s hospitality industry. The pipeline currently stands at 642 projects and 104,513 rooms, representing robust year-over-year (YoY) increases of 11% in project count and 10% in room count.
• At the close of Q3 2024, Latin America had 269 projects with 47,151 rooms under construction, reflecting a 10% YoY rise in both metrics. Additionally, the number of projects scheduled to start construction within the next 12 months grew to 183 projects and 30,184 rooms, up 7% by project count and 9% by room count YoY. Even the early planning pipeline expanded, increasing 17% YoY to 190 projects and 11% YoY to 27,178 rooms.
• Mexico (229 projects/35,975 rooms) and Brazil (103 projects/15,731 rooms) accounted for a 52% of the total project count and 50% of the room count. The Dominican Republic followed with an all-time high of 59 projects/14,407 rooms, then Colombia with 27 projects/3,671 rooms.
• Looking at completed projects, the region saw 49 new hotel openings comprising 9,688 rooms through the third quarter. LE forecasts an additional 42 new hotels with 5,661 rooms to open in Q4 2024, bringing the total for the year to 91 new hotels and 15,349 rooms.
• Furthermore, projections point to a sustained growth trajectory, with 108 new hotels and 19,551 rooms forecast to open in 2025, followed by a further increase to 138 new hotels and 19,513 rooms in 2026.

(Source: Travel Daily News)

• Bond investors are keeping a defensive but neutral stance in managing portfolios ahead of this week's Federal Reserve policy meeting, which is being eclipsed by the too-close-to-call U.S. presidential election.
• Investors widely expect the U.S. central bank's policy-setting Federal Open Market Committee to cut its benchmark interest rate by 25 basis points to the 4.50%-4.75% range at the end of its two-day meeting on Thursday, which was delayed one day because of Tuesday's election. The Fed slashed its policy rate by a hefty 50 basis points when it launched its easing cycle in September.
• The election has been the focus for bond investors the last few weeks, more so than the Fed meeting. And until a winner is declared, investors are being cautious with their allocations, keeping their powder dry.
• Bond investors all year have been extending duration, or buying longer-dated assets, as they braced for Fed easing and possible recession. That remains the popular trade in bonds even after the election.
• If rates fall, bond prices will likely increase, and longer-dated notes and bonds have historically outperformed shorter-duration assets like cash and Treasury bills in rate-cutting cycles.
• Over the last few weeks, market participants said there has been some position-squaring among institutional investors in the futures market, suggesting caution, ahead of the election and Fed meeting. Asset managers use long contracts in Treasury futures to fulfil portfolio needs.
• Commodity Futures Trading Commission data showed asset managers have reduced net long positions on U.S. 10-year note futures that were at a record high as of Oct 1. Other players in Treasury futures have also reduced extreme long or short bets in the last few weeks.

(Source: Reuters)