• Federal Reserve officials appear on track to cut interest rates this month after data showed the U.S. labour market remained strong but continued to cool in November, even as debate emerged over a possible pause to rate cuts in the new year.
• U.S. employers added 227,000 jobs last month, a rebound from a hurricane-impacted slowdown in October, but the unemployment rate ticked up to 4.2%, the Labour Department's monthly employment report showed on Friday.
• A number of Fed policymakers speaking on Friday said they saw rates continuing to come down while injecting a note of caution on the pace. San Francisco Fed President Mary Daly said the fresh figures show the labor market is in a good position.
• San Francisco Fed President Mary Daly said the fresh figures show the labour market is in a good position. And while she indicated no discomfort with another rate cut this month, she said that once the policy rate is closer to where it will settle, she would take "a more thoughtful and cautious approach" on further rate cuts. Daly has previously said she views 3% as where short-term borrowing costs may need to end up. Those projections will be updated at the December meeting.
• A quarter-percentage-point reduction this month would bring the Fed's policy rate to the 4.25%-4.50% range, a full percentage point below where it was in September when the central bank began its easing cycle. On Wednesday, Fed Chair Jerome Powell repeated his prior comments that the central bank could be careful in managing the endgame of its roughly three-year fight against inflation. Powell's caution may come more into play next year, with many analysts expecting the Fed to pause the easing after delivering a cut on Dec. 18.

(Source: Reuters)

• China's consumer inflation hit a five-month low in November as fresh food prices pulled back while factory deflation persisted, suggesting Beijing's recent efforts to shore up faltering economic demand are having only limited impact. The world's second-largest economy is bracing for likely fresh tariffs from a second Donald Trump White House and still dealing with other headwinds, suggesting more policy stimulus will be needed to shore up fragile growth.
• The consumer price index rose 0.2% last month year-on-year, data from the National Bureau of Statistics showed on Monday, below the 0.3% increase in October and a 0.5% rise forecast in a Reuters poll of economists. CPI fell 0.6% month-on-month, compared with a 0.3% fall in October and a forecast 0.4% decline. NBS statistician, Dong Lijuan, said the faster monthly fall in CPI was mainly due to a weather-related 2.7% decline in food prices.
• The national average temperature in November was the highest for any comparable period since 1961, which supported the production and transportation of agricultural goods, helping bring fresh food prices down, Dong said in a statement. Core inflation, excluding volatile food and fuel prices, edged up to 0.3% last month from 0.2% in October.
• Chinese government advisers are calling for an economic growth target of around 5.0% for 2025, pushing for stronger fiscal stimulus to mitigate the impact of expected U.S. tariff hikes on the country's exports, Reuters reported.
• However, economists are still broadly gloomy about China's economic prospects, which face fresh trade tariffs from a new Trump presidency next year and a still shaky property sector. Fitch Ratings lowered its economic forecasts for China for 2025 to 4.3% from 4.5% and for 2026 to 4.0% from 4.3% on Monday, citing risks of even higher U.S. tariffs on Chinese goods.

(Source: Reuters)

• The Jamaica Stock Exchange e-Campus (JSE e-Campus) and the University of Technology Jamaica (UTECH) signed a Memorandum of Understanding (MOU) on November 22, 2024, at the Jamaica Stock Exchange (JSE) to collaborate to fulfil the training needs of the financial services sector.
• The MOU involves joint courses, progress reports, curriculum strengthening and articulation, staff and student exchange, human resource development, public education joint seminars, conferences, and publications, among others. It is expected to last for three (3) years with the option for renewal.
• Both JSE and UTech have agreed that within the context of a globalised environment, where it is imperative to collaborate to compete and make use of common resources successfully, there is a need for a coordinated, and rationalised approach to dealing with training issues affecting the financial services sector.
• Dr. Marlene Street Forrest, Managing Director of the JSE, stated “We know that coordination will be critical to our success, and as we are committed to the success of this relationship, we will find it through our Steering Committee… By working together, the JSE e-Campus and Utech will create opportunities for learners, at all levels, to contribute meaningfully to Jamaica’s human and economic development.”

(Source: JSE)

• Scores of local entrepreneurs, exporters and persons looking to enter the export market gained valuable insights and tools to expand or seize business opportunities, at a two-day Export Information Workshop hosted by The Trade Board Limited (TBL).
• Held in conjunction with the Ministry of Industry, Investment & Commerce (MIIC) and the Jamaica Manufacturers and Exporters Association (JMEA), the free online sessions provided participants with critical knowledge on leveraging export opportunities and navigating international markets effectively.
• Day one featured a dynamic presentation and live demonstration of EXPORTJamaica, a groundbreaking digital platform that simplifies export procedures. Emphasising the platform’s ability to save time, improve efficiency and enhance the competitiveness of local exporters, the Manager of Systems Engineering and Programming at TBL, Jason Mills, said “EXPORTJamaica represents a key step in our mission to enable Jamaican businesses to thrive in the global marketplace”.
• The second day delved into the critical topic of ‘Leveraging Trade Agreements’, presented by TBL’s Senior Legal Counsel, Kanika Tomlinson, who outlined the significant advantages Jamaican businesses can gain by utilising trade agreements to access international markets with reduced or no duties.
• “Trade agreements provide manufacturers and exporters with a competitive edge, hence understanding and applying these agreements are key to unlocking preferential market access,” she said.
• Participants were also taken through the process of obtaining a Certificate of Origin, which grants exporters preferential treatment in international markets.
• Highlighting the success of the event, Executive Director of the JMEA, Kamesha Turner Blake, praised the collaboration, stating that “by uniting the strengths of MIIC, TBL, and JMEA, this partnership has empowered entrepreneurs with the tools, knowledge, and networks they need to thrive on the global stage”.

(Source: JIS)

• Developing countries spent a record $1.4Tn to service their foreign debt as their interest costs climbed to a 20-year high in 2023, the World Bank’s latest International Debt Report shows. Interest payments surged by nearly a third to $406Bn, squeezing the budgets of many countries in critical areas like health, education, and the environment.
• The financial strain was fiercest for the poorest and most vulnerable countries – those eligible to borrow from the World Bank’s International Development Association (IDA), the data show. These countries paid a record $96.2Bn to service their debt in 2023. Although repayments of principal decreased by nearly 8% to $61.6Bn, interest costs surged to an all-time high of $34.6 billion in 2023, four times the amount a decade ago. On average, interest payments of IDA countries now amount to nearly 6% of the export earnings of IDA-eligible countries – a level that hasn’t been seen since 1999. For some countries, the payments run as high as 38 percent of export earnings.
• As credit conditions tightened, the World Bank and other multilateral institutions became the main lifeline for the poorest economies. Since 2022, foreign private creditors have received nearly $13Bn more in debt-service payments from public sector borrowers in IDA-eligible economies than they disbursed in new financing. Over the same period, the bank and other multilateral institutions pumped in nearly $51Bn more in 2022 and 2023 than they collected in debt-service payments. The World Bank accounted for a third of that sum – $28.1Bn.
• “Multilateral institutions have become the last lifeline for poor economies struggling to balance debt payments with spending on health, education, and other key development priorities,” said Indermit Gill, the World Bank Group’s chief economist and senior vice president. “In highly indebted poor countries, multilateral development banks are now acting as a lender of last resort, a role they were not designed to serve. That reflects a dysfunctional financing system – except for funds from the World Bank and other multilateral institutions, money is flowing out of poor economies when it should be flowing in.”
• In 2023, borrowing abroad became considerably more expensive for all developing economies. Interest rates on loans from official creditors doubled to more than 4%. Rates charged by private creditors climbed by more than a point to 6% – a 15-year high. Global interest rates have since begun to subside, although they are expected to remain above the average that prevailed in the decade before COVID-19.

(Source: Caribbean News Global)

• During the event “La Semanal con La Prensa,” President Luis Abinader emphasized that economic forecasts predict continued robust growth for the Dominican Republic through 2025.
• Reflecting on 2024, he celebrated the nation’s progress in reducing poverty and sustaining economic expansion. Economic growth has positioned the country as a Latin American leader, with poverty rates improving from 26% in 2019 to an estimated 19% by year-end 2024.
• “We are the beacon of light for Latin America,” Abinader declared, underscoring the strong performance of key economic sectors despite global challenges. He acknowledged ongoing national issues but highlighted his administration’s efforts to address public needs and deliver meaningful results.
• On corruption, the president reaffirmed his government’s dedication to transparency and justice, asserting that impunity is no longer tolerated. He pointed to legal actions against corrupt officials as evidence of the administration’s commitment to accountability and ethical governance.

(Sources: Dominican Today)

• The number of Americans filing new applications for unemployment benefits rose slightly last week, pointing to steadily easing labour market conditions heading into the final stretch of 2024.
• Sluggish hiring, however, means some people who lose their jobs are collecting unemployment checks for longer periods relative to early this year, potentially keeping the jobless rate above 4.0%. Economists said this should allow the Federal Reserve to cut interest rates again this month, despite stalled progress in lowering inflation to the U.S. central bank's 2.0% target.
• Initial claims for state unemployment benefits rose 9,000 to a seasonally adjusted 224,000 (forecast 215,000) for the week ended Nov. 30, the Labor Department said on Thursday. The data included the Thanksgiving holiday, which could have injected some noise into the report. Claims are entering a period of volatility, which could make it difficult to get a clear picture of the labour market.
• Claims remain at levels consistent with continued job growth and have signalled a sharp rebound in nonfarm payrolls in November after the labour market was severely distorted by Hurricane Helene and Tropical Storm Milton, as well as strikes by factory workers at Boeing and another aerospace company.
• Nonfarm payrolls likely increased by 200,000 jobs in November after rising by 12,000 in October, the lowest number since December 2020, a Reuters survey showed. Overall, the unemployment rate is forecast to rise to 4.2% from 4.1% in October.

(Source: Reuters)

• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, says the Government will assist dairy farmers to significantly improve their output, through a $20Mn Equipment Lease Programme.
• Speaking at the Knockalva Polytechnic College in Hanover on November 28 as part of the ongoing Dairy Livestock Innovation and Nutrition Programme, the Minister said the programme is designed to alleviate the financial burden faced by farmers who struggle to acquire the necessary equipment for efficient dairy operations. He added that the farmers will now have access to modern milking technologies without the upfront costs typically associated with purchasing such equipment.
• The Minister pointed to the inefficiencies prevalent in traditional dairy farming methods, which often hinder productivity, adding that “the reality is, it is an inefficient way of doing things, and in this modern era we cannot continue to use old methodologies and expect different results”.
• He further noted that the introduction of the harvester is another key component of the initiative and that the equipment can drastically reduce the time required for harvesting grass, “transforming a task that previously took several days into a matter of minutes”.
• Mr. Green said that the Equipment Lease Programme is expected to create a ripple effect throughout the dairy industry, enhancing productivity and profitability for farmers, while also contributing to the overall growth of the agricultural sector. It should also allow farmers to be more competitive in the market.
• The initiative aligns with the Government of Jamaica’s broader strategic goals of enhancing food security and increasing agricultural productivity across Jamaica. Outside providing equipment, the government is also expected to continue offering training to equip farmers with the knowledge and skills to maximise the benefits of this new technology. These training sessions and material provisions will be essential to maintaining the sustainability of the agricultural industry.

(Source: JIS)

• LATAM Airlines has successfully resumed flights between Lima, Peru and Montego Bay, Jamaica, marking a significant milestone in Caribbean-Latin American air connectivity.
• The first flight, which arrived at full capacity at Sangster International Airport on Sunday, December 1, 2024, represents a major step in Jamaica’s strategic expansion into the Latin American market.
• Minister of Tourism, Hon. Edmund Bartlett, who was present for the flight’s arrival, alongside a delegation of government officials and tourism executives, said that this is just the beginning of Jamaica being richly rewarded for its ambitious expansion into the South American market.
• He added that the Ministry fully expects that the current three-times-per-week arrangement to Sangster will be transformed into daily flights by next winter.
• The Minister argued that the introduction of three weekly LATAM flights from Peru is a testament to the effective strategies employed by the Jamaica Tourist Board (JTB) to tap into new markets, complementing Jamaica’s traditional source markets in the United States, Canada, and Great Britain.
• LATAM Airlines Group S.A. is a Chile-based airline holding company formed by the business combination of LAN Airlines S.A. of Chile and TAM S.A. of Brazil in June 2012. LATAM is currently the largest passenger airline group in South America and is also one of the largest airline groups in the world in terms of network connections.

(Sources: JIS, Eturbo News & NCBCM Research)

• Banks which financed two Brazilian coffee traders that sought court-supervised debt restructuring last week have a total of 1.1Bn reais ($181.6Mn) in credit with the firms, court documents seen by Reuters showed on Monday.
• According to the documents, the amount refers only to advance money the banks gave to traders Atlantica and Cafebras in contracts linked to future coffee exports, known locally as ACCs. It is not known if the traders have other debts with roasters or coffee importers related to supply deals.
• Brazil's largest bank, state-controlled Banco do Brasil SA, has the biggest share of the debt with 765Mn reais, followed by Banco BTG Pactual with 181.5Mn reais and Banco do Nordeste with 100.9Mn. Three other banks had smaller credits pending from ACCs.
• Atlantica and Cafebras, both owned by Brazilian coffee group Montesanto Tavares, filed a request last week to have a large part of their debt negotiated in court, a judicial move that can precede a bankruptcy proceeding if the negotiation is not successful.
• The move left the coffee market on tenterhooks with coffee importers fearing they could not get their orders delivered or that other exporters in Brazil could run into financial troubles as coffee prices skyrocketed.
• While Banco do Brasil, BTG Pactual and Banco do Nordeste did not immediately return requests for comments, Atlantica and Cafebras said in the court documents that the recent spike in prices was the latest challenge to their operations since they caused margin calls on their hedging operations to sour.
• One coffee broker, who sent some of the court documents to Reuters, said he was surprised by the size of the credit the two traders had, particularly the part from Banco do Brasil. "It is a huge amount for companies that are not that big," he said, asking not to be named given the sensitivity of the issue.

(Source: Reuters)