• 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)

• Approximately 27,357 Jamaicans will receive a one-off $16,000 payment under the COVID – 19 Cash Assistance programme. 
• The $155.0Mn cash transfer initiative, is aimed at aiding poor and needy persons, who are not benefiting from Government social assistance. This will in turn contribute to an improvement in private consumption and consequently, economic recovery. 
• The United Nations World Food Programme, through the Canadian Government, provided a grant to the Ministry of Labour and Social Security to undertake the initiative. The Ministry will oversee the equitable distribution of the funds. 
• The cash distribution is being facilitated by WiPay (Jamaica) Limited, through its network of outlets across the island. Portfolio Minister, Hon. Karl Samuda, said that the use of WiPay will increase efficacy in the distribution of the funds and facilitate greater levels of accountability. He further added that it allows for greater flexibility and greater accountability because the system is one that makes provision for automatic audit.

(Sources: JIS News & NCBCM Research)

• Inflation in Mexico was lower than expected during the first half of December, data showed on Thursday, though core inflation exceeded forecasts, prompting a member of the Central Bank's board to voice concern about underlying price pressures. 
• National statistics agency INEGI said inflation reached 7.45% in early December after averaging 7.37% in November, which was the highest rate in Mexico since early 2001. 
• The core rate of inflation, which strips out some volatile items, hit 5.87%, above Reuters’ analysts' prediction of 5.70%. The initial Reuters consensus forecast for core inflation was 5.68% after the core rate had reached 5.67% in November.

 (Source: Reuters)

• CariCRIS has reaffirmed Barbados’ credit rating of CariBB for local currency and CariBB- for foreign currency, with a stable outlook. 
• The stable outlook reflects the agency’s expectation of successful realignment of the home-grown Barbados Economic Recovery and Transformation (BERT) programme, which is aimed at reducing debt-to-GDP to 60% by 2035/36 and introducing more stringent fiscal planning and accountability. 
• The ratings were also supported by several factors, including the fact that fiscal consolidation continues despite COVID-19 pressures and other unanticipated shocks, comfortable and growing foreign currency reserves, good financial sector stability indicators, and “strong tourism fundamentals suggest robust post-COVID-19 rebound potential”.

 (Source: CariCRIS)

• Canada's economy likely expanded for the sixth consecutive month in November, after matching expectations in October, official data showed on Thursday, implying the Bank of Canada will stay the course on interest rate hikes, despite the rise of the Omicron variant. 
• Real gross domestic product rose 0.8% in October from September, in line with analyst estimates, while November GDP was most likely up 0.3%, according to Statistics Canada. It also revised up September's GDP gain to 0.2% from 0.1%. 
• With November's rise, which is a preliminary estimate, Canada's economy is just 0.1% below pre-pandemic levels, Statscan said. The gains also imply fourth-quarter GDP will be stronger than Bank of Canada forecasts, analysts said.

(Source: Investing.com)

• China will roll out more policies to help exporters and importers as foreign trade faces growing uncertainties, the official Xinhua news agency said on Thursday. 
• China's surprisingly resilient trade performance this year has provided a crucial buffer to the slowing economy, but analysts expect exports to come under great pressure in coming months as the COVID-19 pandemic eases. Demand for Chinese goods is expected to fall as global lockdowns ease and people spend more on services. 
• Authorities will step up the support to the trade sector, including implementing previously flagged tax and fee cuts and speeding up the export tax rebates, said the State Council. Premier Li Keqiang said in November that China is studying a new combination of tax and fee cuts to help small businesses.

(Source: Reuters)

• Owing to an increase in other income and lower admin and other expenses, iCreate reported a profit of $3.87Mn for the nine months ended September 30, 2021, versus a net loss of $2.26Mn in the previous corresponding period. 
• The company was able to grow other income to $3.07Mn from $0.68Mn, which contributed to the improved fourth quarter. Also supporting the net profit performance was a decline in the company’s cost of sales (34.0%) and admin and other expenses (46.0%) as iCreate continues to benefit from its initiatives that include a re-alignment of the company’s cost structure. 
• However, revenues contracted (32.5%) as the company was unable to conduct physical and hands-on training, which accounts for 60% of revenues, as it did in the past. Nevertheless, iCreate continues to find new ways to generate revenues, with the video production division delivering 27.9% of total revenues. iCreate’s video production division is newly launched and the company expects to continue to see growth in the division going into 2022 as the number of Internet-only platforms, such as streaming services, is likely to increase given high demand due to ongoing restrictions on gathering. 
• iCreate’s stock price has appreciated by 45.8% since the start of the year and closed Wednesday’s trading session at $0.86 per share.

 (Sources: iCreate Financials & NCBCM Research)