• The Panama Canal Authority (ACP) said on Monday, December 27 that it expects the container ship, liquefied natural gas (LNG), and liquefied petroleum gas (LPG) segments to boost growth in 2022 after 2021 in which it recorded a record 516.7 million tons transiting the waterway. 
• "We look forward to accommodating, even more, transits for our customers next year, as container ship, liquefied natural gas, and liquefied petroleum gas transits are expected to drive growth," said Panama Canal Deputy Administrator Ilya Espino de Marotta. 
• In a public statement, the ACP highlighted that reaching "another record year" this 2021 "was not easy, given the challenges faced by the interoceanic route, from interruptions in the global supply chain to the continued effects of the pandemic on the global economy." 
• According to data from the Canal Authority traffic through the interoceanic highway "rose between October 1, 2020, and September 30, 2021, driven by the segments of LNG, LPG, container ships, bulk carriers, and vehicle carriers. 
• In the fiscal year that ended on September 30, the tons and transits of container ships grew by 10.8% and 2%, respectively, relative to the previous fiscal year. At the same time, transits of container ships for LNG grew by 31.4% and 28.2%; and that of LPG by 18.4% and 16.4%, respectively. 
• By 2022 the canal is expected to contribute 2.497.2Bn dollars, according to the budget approved by Parliament. The Panama Canal is essential to global trade and accounts for almost 10% of Panama’s GDP and so the anticipated expansion of business activities in the waterway should bode well for the government’s coffers and by extension GDP. The Panama Canal, through which 3.5% of world trade that moves by sea passes, connects more than 140 maritime routes and 1,700 ports in 160 countries.

(Source: Newsroom Panama)

• The U.S. trade deficit in goods mushroomed to the widest ever in November as imports of consumer goods shot to a record ahead of the second straight COVID-distorted holiday shopping season along with industrial supplies, while exports slipped after a historic gain a month earlier.
• The goods trade gap reported Wednesday by the Commerce Department is likely to remain historically high as long as the coronavirus pandemic continues, economists said. 
• The emergence of the fast-spreading Omicron variant of COVID-19 that has driven U.S. and global caseloads to a record this week may exacerbate it further in the near term if it limits American consumers' spending on services. 
• Omicron also stands as a downside risk in the housing market. A reading of pending home sales also out Wednesday showed an unexpected drop in November, and while that data largely predated Omicron's ascendance in the United States, the highly contagious new variant could further limit home sales in the near term.

(Source: Reuters)

• The world's economic output will exceed $100 trillion for the first time next year and it will take China a little longer than previously thought to overtake the United States as the Number 1 economy, a report showed on Sunday. 
• British consultancy, Cebr, predicted China will become the world's top economy in dollar terms in 2030, two years later than forecast in last year's World Economic League Table report. 
• India looks set to overtake France next year and then Britain in 2023 to regain its place as the world's sixth-biggest economy, Cebr said. 
• "The important issue for the 2020s is how the world economies cope with inflation, which has now reached 6.8% in the U.S.," said Cebr deputy chairman Douglas McWilliams.

(Source: Investing.com)

• Scotia Investments Jamaica Limited acted as Lead Arranger and Broker to successfully raise J$500.0Mn of debt capital by way of a private placement of bonds for Fontana Limited. The proceeds of the offer will support Fontana’s continued growth which includes plans to develop a warehouse and distribution center in Kingston, as well as a new store in Portmore. 
• The transaction was executed at a time when BOJ policy rates were increased for the first time in 13 years. The Ministry of Finance and Planning had also recently reopened Government of Jamaica long-term bonds that were taken up at yields that indicated that the long-term rates in the Jamaican Dollar debt space were increasing. 
• In light of the changing market conditions, the arrangers pursued a fixed to variable rate bond structure. This financing strategy provides Fontana with a competitive rate in the short term and the potential to lower the rate in the future if market rates reduce in the longer term. 
• According to its Annual Report, 2021 has been Fontana’s most successful year to date. Revenues were up $5.2Bn, a 14.2% increase over the $4.5Bn of the previous year (2020) with sales growth outpacing that of the overall Jamaican retail sector. The company also grew its profits by 85% year over year, which helped to bolster its success in securing the debt capital required to seize the opportunities for expansion in Portmore and Kingston.

(Source: JSE News)

• Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke has said that the Government is looking to proceed with the Public Sector Compensation Review in 2021. The review is intended to overhaul the structure of salaries and other emoluments in the public service to make it more equitable. 
• Implementation is expected to begin in April, and Dr. Clarke noted that the impending review is an ambitious reform and a once-in-a-generation opportunity to undertake an exercise of its magnitude. 
• Thirty-one bargaining units representing some 80,000 public sector employees, or approximately 80.0% of the workforce, have accepted the Government’s offer and it is anticipated that the number for the others will substantially increase shortly. As a result, the government’s attention will turn to put in place the steps that can allow for the beginning of the implementation of the compensation review. 
• Successful completion of this compensation review will lead to higher salaries for some positions, thereby improving disposable income for workers as the government strives for more equitable salaries.

(Source: JIS News)

• “The outlook for 2022 is exciting but will not be without challenges as Guyana continues to face a worsening global supply chain crisis”, said President, Dr. Irfaan Ali. 
• The consequence of the global supply chain crisis has been rising prices for imported goods, supplies, and transportation services. “This, coupled with climate change and the pandemic, would require robust and strategic policymaking to mitigate against the full consequences of the challenges, both social and economic”. 
• Every Guyanese, he noted, must resolve to be stronger, better, and more committed to individual, family, community, and country development to enhance their future welfare.

(Source: Guyana Chronicle)

• Brazil's current account deficit will widen over the coming quarters as global commodity prices trend lower and export earnings correspondingly revert. Fitch Solutions estimates Brazil's current account shortfall at 0.6% of GDP in 2021, its narrowest since 2007, which reflected surging goods export earnings and constraints on service imports (via mobility restrictions that curtailed outbound tourism).  
• Fitch Solutions forecast Brazil's current account deficit will widen to 2.3% of GDP in 2022, as lower average global commodity prices see export earnings revert after a windfall year, narrowing the goods trade surplus. 
• With global travel restrictions likely to be significantly looser over the coming year, a revival of outbound tourism will likely widen the services trade deficit. 
• Capital inflows are likely to be volatile, as the approaching general election will likely drive wide swings in investor sentiment that could result in periods of funding shortfalls.

(Source: Fitch Solutions)

• Global equity markets climbed on Tuesday, boosted by another record-setting open on Wall Street as investors shrugged off concerns over Omicron-driven travel disruptions and store closures. 
• Asset classes from oil to equities are near or above recent highs, having clawed back losses from late November when the Omicron variant of COVID-19 sent investors scurrying for safety. A delay in Britain and France on imposing more COVID curbs before year-end also excited investors. As the worst fears over the impact of the variant have subsided, investors have returned to risky assets. 
• "The latest rebound in risky assets was activated last week by new reports confirming that the Omicron coronavirus variant, although more transmissible leads to fewer hospitalizations and deaths," said Charalambos Pissouros, head of research at Cyprus-based brokerage JFD Group. 
• The MSCI world equities index was up 0.2%, within striking distance of a record high hit last month. The Dow Jones Industrial Average rose 156.94 points, or 0.43%, to 36,459.32, and the S&P 500 gained 2.29 points or 0.05%

(Source: Investing.com)

• Two-year Treasury yields hit almost two-year highs on Tuesday, following tepid demand for an auction of the notes on Monday, while longer-dated yields dipped but held within their recent ranges in light trading. 
• Two-year note yields, which are highly sensitive to interest rate shifts, have risen to the highest since March 2020, with the Federal Reserve seen closer to raising rates as the U.S. economy rebounds from COVID-19 related shutdowns and inflation surges. 
• A $56 billion auction of two-year notes on Monday saw soft demand, pricing at a high yield of 0.769%, around half a basis point above where they had traded before the sale. 
• Longer-dated yields dipped slightly but held within their recent ranges before the Treasury is due to sell new intermediate-dated debt.

(Source: Yahoo Finance)

• General Accident Insurance Company Jamaica Limited (GENAC) has been assigned initial issuer/corporate credit ratings by Caribbean Information and Credit Rating Services Limited (CariCRIS). GENAC is the first standalone general insurance company in Jamaica that has been rated by CariCRIS. 
• The ratings of jmA- (Foreign Currency Rating) and jmA (Local Currency Rating), on the CariCRIS Jamaica national rating scale, reflect GENAC’s good market position as a long-established player with strong brand equity in Jamaica’s general insurance industry. 
• GENAC’s investment portfolio continues to display good returns and good liquidity, despite the impact of COVID-19, also factored into the rating. Furthermore, GENAC’s history of profitable operations and its strong Enterprise Risk Management (ERM) framework both support the ratings. 
• The outlook on GENAC’s rating is stable, reflecting expectations that the company will continue to be profitable, maintaining all its key credit drivers including good capitalization and liquidity. As at September 2021, it had assets totaling J$9.1Bn, and over the last 5 years (2016-2020), its revenues and net profit have averaged J$8.7Bn and J$346.4Mn, respectively.

(Sources: JSE News)