• Goldman Sachs and Citigroup have lowered their full-year projections for China's economic growth to 4.7% after the world's second-largest economy's industrial output slowed to a five-month low in August.
• Weak economic activity in August has ramped up attention on China's slow economic recovery and highlighted the need for further stimulus measures to shore up demand. The faltering growth has prompted global brokerages to scale back their 2024 projections to below the government’s target of around 5%. Goldman Sachs earlier expected full-year growth for the economy at 4.9%, while Citigroup had forecast growth at 4.8%.
• China's industrial output in August expanded 4.5% year-on-year, slowing from the 5.1% pace in July and marking the slowest growth since March, data from the National Bureau of Statistics (NBS) showed on Saturday.
• Retail sales - a key gauge of consumption - rose 2.1% in August, decelerating from a 2.7% increase in July amid extreme weather and a summer travel peak. Analysts had expected retail sales, which have been anaemic all year, to grow 2.5%.
• "We believe the risk that China will miss the 'around 5%' full-year GDP growth target is on the rise, and thus the urgency for more demand-side easing measures is also increasing," Goldman Sachs said in a note dated Sept. 15.
• It maintained the country's 2025 GDP growth forecast at 4.3%. However, Citigroup on Sunday trimmed its 2025 year-end forecast for China's GDP growth to 4.2% from 4.5% due to a lack of major catalysts for domestic demand. "We believe fiscal policy needs to step up to so as to break the austerity trap and timely deploy growth support," economists at Citigroup said.

(Source: Reuters)

• Wigton Windfarm Limited trading as Wigton Energy (WIG) has advised that it has appointed Mr. Norman Naar as WIG’s Chief Commercial Officer effective September 16, 2024. This new appointment follows the changes that were made to the leadership and organizational chart in August 2023, which included renaming the Business Development and Innovation Manager position to Chief Commercial Officer.
• Naar, as Chief Commercial Officer, will be responsible for implementing the commercial strategy of WIG; driving the company’s business development efforts by identifying new opportunities and cultivating relationships; and achieving growth targets.
• As a global business development leader, Mr. Naar brings extensive expertise in strategic planning and development, business development, sales, marketing, operations, information technology, and project management.
• Naar's appointment is timely as the company embarks on a new strategic direction, diversifying into other renewable energy solutions. This shift is crucial for sustaining shareholder value and ensuring long-term growth. While Wigton’s core business remains wind energy production, expanding into new areas is essential for maintaining business continuity.
• Wigton’s stock price has appreciated by 24.1% since the start of the calendar year to $0.98 at the close of Thursday’s trading session. At this price, Wigton trades at a P/E of 11.0x, which is above the Main Market Energy, Industrials and Materials Sector Average of 8.7x. This increase in stock price was largely driven by positive investor reaction following the announcement of the extension of its Power Purchase Agreement with JPS along with investor optimism about Wigton’s recent renewable energy initiatives and growth prospects.

(Sources: JSE & NCBCM Research)

• There is an untapped potential for Guyana to exploit its natural waterways to bring on stream a renewable source of energy through hydropower, International Environmental Adviser, Former Minister of Climate and the Environment, and Former Minister of International Affairs of Norway, Erik Solheim has said. The former Norwegian Minister was addressing a panel discussion held in Georgetown at the Arthur Chung Conference Centre (ACCC).
• “Guyana has a huge hydropower potential which is untapped. We worked on that in the past; I understand that you tried to revive that, and we hope that can happen because hydropower is still the most important renewable power in the world,” he said, citing the efforts to bring new life to the country’s flagship Amaila Falls Hydropower (AFHP) station.
• Officials in Guyana had announced plans to construct a hydropower station. Kuribrong, Amaila River/Basin in Potaro-Siparuni (Region 8), was identified as the project site. Officials had posited that there was evidence to prove that the Amaila Falls project, when originally tabled in 2013, was a viable one that would have garnered long-term benefits for Guyana, but there was immense pushback that led to the scrapping of the project.
• Later in 2023, it was announced that the government would revive the project. In October of that year, they invited Revised Requests for Proposals (RFP) under a Build-Own-Operate-Transfer (BOOT) model for the Amaila Falls Hydro Project.
• Solheim, pointed out that hydropower will play the role of the battery. “Sun is not shining all the time; wind is not blowing all the time. But then you use hydropower as a pump storage; as a battery for solar and wind.” He expressed his support for and optimism about the project being executed.
• The project, which has the potential to produce 165 million watts (MW), was among plans, with the support of Norway, to put in place renewable energy sources.

(Source: Guyana Chronicle)

• The Trinidad and Tobago Stock Exchange Ltd (TTSE) has announced the amendment of Rule 400(2)(g) in respect of the Special Market Listing Requirement for the Small and Medium Enterprise (SME) Market effective August 22, 2024.
• 'This amendment reflects our ongoing commitment to fostering growth and creating a more accessible environment for SMEs seeking to list on the Exchange,' the TTSE said in a media release.
• What it means is that the level of public float required for SMEs is now reduced to 20% of the total issued share capital, down from the previous requirement of 30%.
• 'This change is intended to encourage companies to utilise the TTSE SME Market to raise capital while maintaining compliance with necessary regulatory standards,' the TTSE stated.
• 'This amendment was carefully considered to balance regulatory compliance and market accessibility, making it easier for SMEs to meet listing requirements while still ensuring investor confidence and market stability,' it added.

(Source: Trinidad Express Newspaper)

• The European Central Bank cut interest rates again on Thursday as inflation slows and economic growth in the eurozone falters but gave few clues to its next step, even as investors bet on steady policy easing in the months ahead.
• The ECB lowered its deposit rate by 25 basis points to 3.50%, following up on a similar cut in June as inflation is now within striking distance of its 2% target, and the domestic economy is skirting a recession.
• The move had been widely telegraphed, and investor attention has already shifted to what comes next and how ECB decisions will be shaped by the U.S. Federal Reserve's expected start to its own rate cuts next week; however, the ECB gave little away.
• "Our path, of which the direction is pretty obvious - a declining path - is not predetermined, neither in terms of sequence nor in terms of volume," ECB President Christine Lagarde told a press conference. She instead repeated the bank's standard formula for a "data-dependent", meeting-by-meeting approach to policy with no pre-commitments.
• With just five weeks until the next policy meeting, they said there may be little new data to support an October cut. Lagarde painted a mixed picture of inflation in the eurozone continuing to be sustained by rising wages even as overall labour cost pressures moderated and were absorbed by companies.
• She said services sector inflation remained a major worry but that wage growth is moderating, and corporate profits are absorbing rapid wage increases. Lagarde warned that negotiated wage growth will remain high and volatile this year in light of some high profile pay deals struck recently.

(Source: Reuters)

• The number of Americans filing new applications for unemployment benefits increased marginally last week, pointing to a still-low level of layoffs even as the labour market slows.
• Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 230,000 for the week ended Sept. 7, the Labor Department said on Thursday. Economists polled by Reuters had forecast 230,000 claims for the latest week.
• Last week's data included the Labour Day holiday, and claims tend to be volatile around public holidays. They have, however, been little changed since dropping from an 11-month high of 250,000 in late July. The slowdown in the labor market is being driven by businesses scaling back on hiring as higher interest rates curb demand throughout the economy.
• Against the backdrop of labour market slowdown, the Federal Reserve is expected to start its policy easing cycle next Wednesday, with a 25-basis points rate cut guaranteed after the annual increase in consumer prices slowed considerably in August, though some stickiness in inflation remained.
• The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 5,000 to a seasonally adjusted 1.850 million during the week ending Aug. 31, the claims report showed. The so-called continuing claims have mostly trended lower through August after surging in July to levels last seen in late 2021. The decline is consistent with the drop in the unemployment rate last month.

(Source: Reuters)

• Knutsford Express Services Limited (KEX) delivered a strong revenue performance for the fiscal year ending May 31, 2024; however, rising costs weigh on net profit growth.
• KEX saw a record-breaking 18.9% (or $312.38Mn), increase in revenue, reaching JMD $1.96Bn, up from JMD $1.65Bn in the previous year, making it the highest reveneus ever recorded by the company. This surge was driven by continued demand for its passenger and courier services, as well as additional contributions from rental income at its Drax Hall Business Centre and café operations. The company reported higher passenger volumes across all routes.
• However, this growth did not translate into a substantial increase in earnings as the company recorded only a modest 1.7% increase in net profit for its financial year ended May 31, 2024 ($309.46Mn from $304.36Mn in the prior year). This marginal increase is largely attributed to rising administrative expenses.
• Administrative expenses increased by 24.9% to $1.66Bn, largely due to workforce expansion to support growing customer demand. The sharp increase in expenses outpaced revenue growth, leading to a marginal 3.5% (or $14.13Mn) rise in operating profit. The operating margin, as a result, dipped by 3.22 percentage points to 21.52%.
• The company’s growth trajectory is promising, but profit margins will remain under pressure unless management can control rising expenses. To address this, management has been implementing cost containment strategies to curb rising expenses and support profitability.
• However, with plans of expanding its fleet with new coaches and deploying kiosks in its depots to provide a seamless digital experience in the booking and check-in phases of travel for its customers, careful cost management will be crucial. If these investments can enhance operational efficiency, profitability could improve over the medium term. However, short-term profitability is likely to remain constrained unless there are deliberate efforts to yield more immediate results.
• KEX’s stock price has fallen 14.0% since the start of the calendar year, to $10.87 at the close of Wednesday’s trading session. It currently trades at a P/E of 14.9x, which is below the Junior Market Other Sector Average of 15.8x.

(Sources: JSE & NCBCM Research)

• iCreate Limited has announced its planned transition to Kintyre Holdings (Ja) Limited and its appointment of Dr. Nick Rowles-Davies to its Board of Directors, effective September 9, 2024. The restructuring of iCreate to Kintyre Holdings (JA) Limited represents a strategic shift for the company as it aims to transform from a digital and creative training company to a diversified investment holding company.
• Rowles-Davies brings over 20 years of leadership experience in legal finance and investment management. As part of this transition, he will serve as Chairman of the Corporate Governance Committee and Chairman of the Investment Committee.
• iCreate’s reorganisation comes following significant compliance challenges, which resulted in two suspensions from the Jamaica Stock Exchange (JSE) over the past year. The most recent suspension was lifted on June 19, 2024, after the company addressed outstanding issues, including the submission of financial statements and appointment of a board mentor.
• It is anticipated that the new Committee Chairman will help shape the company’s investment strategy while enhancing corporate governance, transparency, and ethical business practices as the company attempts to revamp its business model.
• iCreate’s stock price is down 17.3% since the start of the calendar year. It closed at $0.43 at the end of Wednesday’s trading session. At this price, iCreate trades at a P/E of 11.0x, which is below the Junior Market “Others” sector average of 15.8x.

(Sources: JSE & NCBCM Research)

• Panama´s port operators had, for the first time in three years, increased container volume by 18.5% in the period January-July. According to statistics released by the Panama Maritime Authority (AMP), all terminals showed double-digit growth during the seven months, with an average of 18.5% and a combined volume of 5.59 million TEU, Seatrade Maritime reported.
• On the Atlantic side, Colon Container Terminal (CCT) and Port of Cristobal volumes grew by 22.3% and 30.5%, respectively.  Meanwhile, PSA Panama International Terminal (PPIT) and Port of Balboa, on the Pacific Side, posted an increase in volume of 26% and 14.7%, respectively. SSA Marine’s MIT terminal also saw a growth of 10.5%.
• A key factor driving this growth has been the strategic expansion of operations to accommodate the increased volume diverted from the Canal due to draught restrictions. Congestion in other transshipment hubs in the Caribbean, along with the ongoing Red Sea crisis, which led to the diversion of commercial routes, has also worked positively towards the increment of transshipment volume into Panama.
• According to the general manager of SSA Marine’s MIT, Manuel Pinzon, on the supply side, the Panama Canal’s reduction in transit numbers and allowable vessel draughts, due to a lack of rainfall in the Canal watershed, created an opportunity for ocean carriers to exploit Panama’s land bridge more effectively. The ability to connect containers via rail or truck between the Atlantic and Pacific oceans increased container volumes handled by container terminals in Panama, as global supply chains continue to seek efficient routes to navigate trade uncertainties and logistical challenges.
• On the demand side, the global economic recovery post-pandemic has significantly driven up container throughput. Imports to Latin America have risen by nearly 10%, while exports from the region have increased by over 7%.
• As international trade volumes surged with the revival of global markets, ocean carriers have increasingly relied on Panama’s ports to expedite their services between major economic centres which has therefore led to increased container volume for the sovereign.

 (Source: Seatrade Maritime News)

• The Bahamas’ national debt fell by more than $200Mn during the three months to the end of June 2024 as total repayments exceeded new borrowings by the Government. The Central Bank, unveiling its economic review for the second quarter of 2024, added that the country’s debt only increased by “a muted” $3.6Mn over the last 12 months to close the fiscal year at a total of $11.653Bn.
• The modest increase, combined with economic growth, also took The Bahamas’ debt-to-GDP ratio to a fraction below 80%. As a ratio to GDP, the direct charge decreased by an estimated 2.7 percentage points on a yearly basis to 77.6% at the end of June. In addition, the national debt-to-GDP ratio declined to an estimated 79.9% compared to 83% in the second quarter of 2023.
• In terms of overall fiscal operations, provisional data on the Government’s budgetary operations for the first ten months of FY2023/24 (July 1, 2023, to June 30, 2024) showed that the overall deficit declined by $68.8Mn (27.9%) to $177.9Mn, relative to the previous corresponding period in FY2022/23.
• The outturn reflects a $195.9Mn (8.3%) expansion in total revenue to $2,550.9Mn on account of higher value-added tax (VAT) collections and higher proceeds from stamp taxes on financial and realty transactions, which outpaced the $127.1Mn (4.9%) growth in aggregate expenditure to $2,728.8Mn.
• Going forward, the fiscal deficit is projected to fall to $69.8Mn for FY2024/25, relative to FY2023/24 budgeted $131.1Mn. This represented an estimated lower budgeted deficit to GDP ratio of 0.5% for FY2024/25 from the planned 0.9% of GDP for FY2023/24. Correspondingly, the National Debt to GDP ratio is forecasted to be lower at 75.3% for FY2024/25 from the budgeted 80.6% for FY2023/24.

(Sources: Central Bank of the Bahamas & The Tribune)