• Guyana’s Ministry of Natural Resources announced on Monday that it has approved ExxonMobil’s Hammerhead project, a US$6.8Bn venture that will increase oil production capacity by 150,000 barrels per day (b/d).
• Oil from Hammerhead, discovered in the southwestern part of the Stabroek Block in 2018, will be produced using a very large crude carrier (VLCC) conversion-type floating production, storage, and offloading (FPSO) vessel to be built by MODEC. Production will be facilitated through 10 production wells and 8 injection wells. A total of 445 million barrels of oil is forecast to be produced, the Ministry said.
• In addition to lifting installed oil production capacity to 1.5 million b/d, the associated gas from Hammerhead will be transferred to the Gas-to-Energy (GtE) pipeline for delivery to shore. The gas from that project is expected to be used for power generation and the sale of natural gas liquids (NGL).
• The Ministry stated that the Hammerhead license offers improvements in several areas compared to previous licenses. Some of these include its alignment with the Oil Pollution Prevention, Preparedness, Response and Responsibility Act 2025; improved management of production levels and new conditions to cover off-specification fluid discharges and the transfer of associated gas from the Hammerhead development to the GtE pipeline.
• The Ministry expects the Hammerhead project to boost energy security, drive industrial growth, and create employment across various sectors as it joins a growing portfolio of developments that continue to position Guyana as a key player in the global energy landscape. It is expected to start up in the second quarter of 2029.

(Source: Oil Now Guyana)

• The Minister of Finance and Economy, Magín Díaz, highlighted that the Dominican Republic is enjoying solid and sustainable macroeconomic stability, supported by US$14Bn in international reserves and an estimated US$4.8Bn in foreign investment.
• Díaz noted that these strong fundamentals have helped to maintain a stable exchange rate, allowed access to financing on favourable terms, and continue to keep country risk at historic lows. The minister contrasted the country’s internal stability with global economic challenges, particularly U.S. trade and fiscal policies, which have slowed international growth.
• He pointed out that the U.S. economy is growing at half its historical pace and faces inflationary and debt pressures affecting emerging markets. Díaz also recalled that since 2001, the Dominican Republic has improved its sovereign debt issuance, moving from five-year bonds at 9% to terms of up to 40 years under better conditions, reflecting growing investor confidence.
• Díaz reaffirmed his commitment to Goal 2036, aimed at removing growth constraints and preparing the country for eventual OECD membership through concrete fiscal, institutional, and social reforms.

(Source: Dominican Today)

• Euro zone consumers have altered their consumption habits in anticipation of U.S. tariffs, moving away from American products and reducing discretionary spending, a study published by the European Central Bank on Monday found.
• Euro zone consumers, sitting on ample savings built up in the years since the pandemic, have been cautious in making purchases all year as uncertainty over tariffs kept key parts of the bloc's economy in limbo.
• The ECB found that around 26.0% of its survey respondents reported switching away from U.S. products. Around 16.0% indicated they have reduced their overall spending. "High-income households are more likely to switch away from U.S. goods, while lower-income households are more inclined to cut back their overall spending," the ECB said, adding that financial literacy also impacted these decisions.
• Nearly all of the spending cuts impacted discretionary items while spending on necessities remained largely unaffected, the ECB added. The central bank also added that some consumers have adjusted their inflation expectations upward, including for the longer term, suggesting that the perceived impact of tariffs on inflation may not be entirely transitory.

(Source: Reuters)

• Threats to the global economic order have come at a furious pace during President Donald Trump's first eight months in office – from a massive tariff shock to a battle for control of the Federal Reserve.
• However, the global economy has kept growing, stock prices have surged, and inflation fears remain muted.
• While many players worry that things could still unravel given the right spark, it is a far cry from the most dour predictions early in Trump's term, when recession odds soared, markets plummeted, and headlines even fretted over the cancellation of Christmas in a collapse of global trade.
• "The global economy continues to exhibit considerable resilience amid heightened policy and political uncertainty," BNP Paribas economists wrote recently, attributing it to "supportive financial conditions, robust household and corporate balance sheets, the promise of an AI-driven productivity boost, and lower energy prices, among other factors." While the landscape remains in flux, the accommodation shown by U.S. trading partners threatened with sky-high tariffs resulted in more modest levies that are being shared by exporters, importers and consumers in what economists feel has become a manageable distribution.
• Meanwhile, Trump's attempts to oust the Fed chair and fire one of its governors have so far failed, and financial markets appear willing to ignore the risk of rising White House influence over monetary policy until it happens.
• Indeed, the yield on the U.S. 10-year Treasury note has fallen from around 4.6% when Trump took office to around 4.1%. While that might reflect growth doubts, it is not what would happen if global investors were losing faith in the U.S., the Fed's independence or the long-term path of U.S. inflation. The Fed is now comfortable enough about meeting its inflation target that it cut its benchmark rate by 25 basis points this week.
• China's central bank kept a key interest rate unchanged due to resilient exports and a stock market rally, refraining from new stimulus. Meanwhile, the euro zone exceeded expectations, prompting the ECB to raise its 2025 GDP growth forecast to 1.2% from 0.9%.
• But the sense that the current benign situation is not built on firm foundations lingers. Early signs of the hit to exporters are being seen from Japan to Germany. Notably, BoJ Deputy Governor Ryozo Himino warned that tariff effects are taking time to surface and new U.S. policies may emerge.
• Others see investor complacency, with U.S. growth concentrated in AI-driven investment and high-end consumers, while housing is weak, hiring is low, and Trump’s policies could have long-term effects. Some investors warn that markets may not reflect underlying realities despite record highs.

(Source: Reuters)

• Blue Power Group Limited (BPOW) opened its 2025 financial year on a weaker footing, posting a steep 41.4% decline in earnings to J$28.42Mn for the three months ended July 31, 2025 (Q1 FY2025). Higher indirect costs and, to a lesser extent, softer revenues were the primary drivers of the falloff in profits.
• Revenues were broadly flat (-0.9%) at J$231.70Mn (down 0.9% YoY) compared to J$233.88Mn in Q1 FY2024. The sales mix continued to tilt towards value-priced bath and laundry soaps, constraining topline growth.
• Cost pressures intensified with direct costs rising by 11.1% YoY to J$153.83Mn, cutting gross profit by 18.4% YoY to J$77.87Mn. There was an accompanying compression in the gross profit margin to 33.6% from 40.8% in Q1 FY2024. Higher raw material costs, amplified by 40.0% CET on essential imports under CARICOM trade rules, helped to compress gross margins.
• Operating expenses surged, exacerbating the impact of higher production costs. Administrative and other costs increased by 30.5% YoY to J$68.30Mn, further eroding profitability. This outweighed gains from other income (J$5.09Mn vs J$2.93Mn) and limited impairment charges, resulting in operating profit plunging 65.5% YoY to J$15.73Mn.
• That said, non-operating items offered some cushion. Finance income jumped 50.8% to J$12.32Mn, while the share of profit from its associate Lumber Depot Limited contributed J$6.24Mn (down from J$7.44Mn). However, after taxation of J$5.32Mn (vs J$11.49Mn), net profit landed at J$28.42Mn, well below the prior year’s outturn.
• Management remains optimistic, noting that Blue Power continues to lead the local bar soap market and is pushing into premium bath soaps with skincare and beauty features as part of its product innovation strategy.
• BPOW’s stock price has declined by 16.9% year-to-date, closing at $3.98 as at Thursday. At this price, the stock is trading at a P/E ratio of 19.9x, which is above the Junior Market Manufacturing Sector average of 20.99x.

(Sources: Blue Power Group Ltd. Financial Statements & NCBCM Research)

• ExxonMobil Guyana continues to deepen its commitment to local content and workforce development, investing heavily in Guyanese businesses, training, and industrial capacity. Since beginning operations in 2015, ExxonMobil and its contractors have spent over US$2.9Bn with local businesses. In the first half of 2025 alone, US$419Mn (approximately GY$87Bn) was directed to 1,800 Guyanese vendors, demonstrating a strong focus on supporting local industry.
• This year also marked a milestone with the launch of in-country fabrication at the Vreed-en-Hoop Shore Base Inc. (VEHSI), including the production of quad joints and Pipeline End Terminations (PLETs), a step that enhances Guyana’s industrial capabilities.
• As at mid-2025, the company and its contractors employ more than 6,200 Guyanese, representing 70% of the oil-and-gas workforce. Women make up one-third of employees, and 1,800 Guyanese are working offshore. In addition, the workforce has received over 370,000 hours of training in leadership, technical skills, professional development, and health, safety, and security protocols.
• Alistair Routledge, President of ExxonMobil Guyana, noted, “We are proud of the progress we’ve made in building local talent. Seeing more Guyanese take on key roles in the oil-and-gas industry is a clear sign that our commitment to capacity building is working.” Looking ahead, the Guyana Technical Training College Inc. (GTTCI), supported financially by ExxonMobil, the Stabroek Block co-venturers, and the government, will welcome its first cohort of locally trained students in October 2025, a landmark in technical education.
• ExxonMobil’s internship programme is also yielding tangible results. Of the inaugural class, five interns have already joined the company, while the 2025 programme continues to provide young Guyanese with meaningful opportunities in the oil-and-gas sector. These initiatives reflect ExxonMobil Guyana’s ongoing effort to foster local expertise, strengthen the domestic workforce, and contribute to the sustainable growth of Guyana’s oil-and-gas industry.

(Source: Guyana Chronicle)

• The cooperation between Suriname and the World Bank has been given a new impetus, with a special focus on the water, energy and mining sectors. Minister David Abiamofo of Natural Resources (NH) received a delegation led by Diletta Doretti, Country Representative for Guyana and Suriname.
• During the meeting, Abiamofo gave an overview of the current programs and challenges within his ministry. Among other things, he pointed to the urgent replacement of the outdated drinking water distribution network in Paramaribo and the implementation of projects such as EMSAGS (Emphasis on Artisanal and Small-Scale Gold Mining) and GEFGOLD (Global Environment Facility), which focus on the formalisation of small-scale gold mining and the phasing out of mercury.
• Cooperation with international partners was also discussed. For example, Suriname is working with the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB) and the United Nations Development Programme (UNDP), which implements the JET-JP programme, among others, to develop financing-ready plans for a just energy transition domestically.
• An important agenda item was the Suriname Competitiveness and Sector Diversification (SCSD) Project. This project finances the strengthening of governance, transparency and administration in the mining sector, including the establishment of the Minerals Authority Suriname (DAS).
• Additionally, Suriname and the World Bank took another important step in their development cooperation earlier this year. The Suriname Preparedness and Enhancing Resilient Communities Project were approved by the World Bank’s Board of Executive Directors in late February. Aimed at strengthening Suriname’s resilience to disasters, the US$22.2Mn initiative is the first to be financed by the International Development Association (IDA), since the country joined this World Bank institution in October 2024.

(Sources: Suriname Herald & the World Bank)

• The United States relies more heavily on imports from the European Union (EU) than commonly assumed, with the bloc surpassing China in both total value and the number of goods, according to a study from Germany's IW economic institute.
• That dependence has grown significantly over the past 15 years, with the number of product groups in which at least 50% of imports came from the EU rising to over 3,100 last year, from more than 2,600 in 2010, according to IW.
• The findings suggest EU Commission President Ursula von der Leyen could have had a stronger hand in tariff talks with Washington that led to a baseline rate of 15% on most EU goods, it said.
• The total import value of those goods, which include chemical products, electrical goods, machinery and equipment, reached $287Bn, nearly 2.5 times more than in 2010. By comparison, China last year accounted for 2,925 of those product groups, with a total value of $247Bn.
• U.S. dependence on China has decreased significantly over time in the course of an obvious de-risking process, said IW. As a last resort, the EU could target goods critical to the U.S. economy for export restrictions, the institute said.
• While trade data alone cannot fully capture how essential these goods are to U.S. buyers, the study "can be used to make it clear to the Americans that if they continue to raise tariffs, they will be shooting themselves in the foot", said co-author Samina Sultan.

(Source: Reuters)

• The Bank of Japan (BoJ) could raise interest rates in October even if Sanae Takaichi, a proponent of aggressive monetary easing, wins the ruling party's leadership race and becomes the next premier, former central bank executive Tomoyuki Shimoda noted on Thursday.
• Seen as a leading candidate to win the race on October 4, Takaichi stands out for her vocal opposition to the BoJ's rate hikes and her calls to ramp up spending to reflate the economy.
• The prospect of her becoming Japan's next prime minister has led some market players to buy yen and Japanese government bonds on the view that it could discourage the BoJ from hiking rates. But Shimoda, who has experience serving at the BoJ's monetary affairs department, expects the outcome of the leadership race, including a possible victory by Takaichi, to have a limited impact on monetary policy.
• "While she could advocate bigger fiscal spending, I doubt Takaichi can pursue policies that could weaken the yen," Shimoda told Reuters in an interview. A weak yen gives exports a boost, but it has been a source of concern for policymakers because it lifts import costs and has been a factor in inflation staying well above the BoJ's 2% target.
• A yen falling below $150 to the dollar may also draw complaints from the U.S. administration, which is pursuing a weak-dollar policy that would give U.S. exports a boost, Shimoda said. The BoJ will likely raise rates at its October 29-30 meeting if stock prices stay firm and its "tankan" business sentiment survey, due on October 1, does not worsen much, he said.
• The BoJ exited its massive, decade-long stimulus last year and raised short-term rates to 0.5% in January on the view that Japan was on the cusp of durably achieving its 2% inflation target. With inflation staying above 2% for well over three years, the BoJ has signalled its readiness to keep hiking rates.
• The yen's movements have historically had a major impact on BoJ decisions. Its exit from ultra-loose policy and a hike in rates to 0.25% last year came at a time when the yen's plunge to nearly two-decade lows drew political calls for higher rates

(Source: Reuters)

• Bolstered by topline growth, Main Event Entertainment Group Limited (MEEG) reported net profit of J$47.13Mn for the third quarter ended July 31, 2025 (Q3 2025).
• Revenues climbed 43.6% year-over-year (YoY) to J$632.14Mn, driven by the success of a proprietary event that helped offset weaker performance in its core business line. In tandem with the revenue increase, direct costs rose 55.5%, pushing gross profit up 30.1% YoY to J$267.61Mn. However, the gross profit margin contracted to 42.3% from 46.7% in Q3 2024 as direct cost growth outpaced revenue gains.
• Operating expenses (Opex) grew 23.7%, led by a 15.0% rise in administrative and general expenses, as spending increased to support the scaling of new business initiatives. However, with revenue growth far outpacing the growth in Opex, earnings rebounded during the quarter.
• That said, despite a profitable Q3, year-to-date (9M 2025) earnings fell 25.2%, reflecting weak performance in the first half (down 47.0% YoY). Notably, 42.3% of the nine-month net profit was generated in Q3, which helped cushion earnings from the impact of its weak first half.
• Year-to-date revenue total $1.52Bn, representing a 8% $1.43Mn in the prior corresponding period, supported by modest gains from M-Style Décor and Multimedia services. However, revenue from the core Entertainment and Promotions segment remains below prior-year levels.
• The company has expressed plans to use its owned events as a key revenue growth driver. These shifts could allow MEEG to see some levels of recovery in coming quarters, particularly in light of the positive impact a proprietary event had on Q3 earnings.
• In spite of the year-to-date lag in earnings, MEEG has prioritised innovation through digital transformation as one of the company’s key strategic initiatives going forward. The company is set to invest in digital tools, equipment and platforms that will enhance customer engagement, streamline operations, and create cutting-edge entertainment experiences. These initiatives will likely enhance attendee engagement, offering interactive environments and personalised experiences, which are expected to drive event market growth.
• MEEG’s stock price has declined by 28.6% year-to-date, closing at $8.35 as at Wednesday. At this price, the stock is trading at a P/E ratio of 83.5x, which is above the Junior Market Sector average of 28.51x.

(Sources: Main Event Entertainment Group Ltd. Financial Statements & NCBCM Research)