In line with the Bank of Jamaica's expectations, the local consumer price index (CPI) decelerated during the month of November.  The 12-month CPI  Inflation which is the primary variable tracked by the BOJ under its Inflation targeting regime was 4.1%  for November,  down 60bps when compared with the outcome (4.7%) for October.  At this level, the inflation result remains within the BOJ's target range of 4% to 6%. There was no growth (0.0% movement) in the CPI for the month of November.  

According to STATIN, this outcome was influenced by a 0.3 percent increase in the index for the division ‘Food and Non-Alcoholic Beverages’. This was as a result of higher prices for vegetables, starchy foods, and fruits. However, this increase was tempered by a 0.8 percent decline in the division ‘Housing, Water, Electricity, Gas and Other Fuels’ due mainly to reduced rates for electricity despite the increased rates for water and sewage. Additionally, the ‘Transport’ division also declined by 0.7 percent as a result of a decrease in the price of petrol.

The BOJ in its recent Short-Term Inflation Analysis and Forecast report indicated that it is expecting inflation to remain within its target range for fiscal 2018/19.   It also indicated that risks to its projections are fairly balanced for the next four quarters. 

IMF releases a statement on Jamaica following staff visit to the island.

• Buoyancy in tax revenue supporting more capital spending, helping economic activity and living standards
• “Public debt is expected to fall below 100 percent of GDP by the end of this fiscal year, for the first time since FY2000/01”
• The unemployment rate is at an all-time low of 8.4%
• Inflation within the central bank target of 4%-6%
• Economic growth forecast at 1.5%-2% for fiscal year

Source: Bloomberg

(SGJ’s Financials)  For the financial year ended October 31, 2018, SGJ reported a net profit of $12.77Bn (EPS: $4.10), representing an increase of 3% over the $12.41Bn (EPS: $3.91) reported a year prior. This performance was attributed to strong growth in its loan portfolio and increased revenue flow from foreign exchange activities coupled with improved expense management. SGJ’s main priority for the current financial year is restructuring its operations to focus on its core business lines to achieve greater operational efficiency and customer satisfaction. The Company’s Board of Directors approved a dividend $0.51/share payable on January 18, 2019, to stockholders on record as at December 27, 2018.

(JBG’s Financials)  For the six months ended October 2018, JBG Reported net profit attributable to shareholders of $629.32Mn (EPS: $0.61) representing a slight (-0.66%) decline relative to the $633. (EPS: $52.82) reported one year prior. This outcome was primarily influenced by increases operating, finance and tax expenses, despite the Group experiencing revenue growth across all its operating segments except Haiti.

(Barbados Today) This was the sentiment expressed by the Government’s Economic Advisor Dr. Kevin Greenridge during an address to the Society of Trust and Estate Practitioners (STEP) on Wednesday. This comes on the heels of the Barbados Central Bank receiving its $200Mn check from the IDB, which pushed the country’s reserves above $1Bn for the first time since the Barbados Economic Recovery and Transformation (BERT) programme was set in motion. After reaching a staff-level agreement with the International Monetary Fund (IMF) in early September, and approval of an extended fund facility of about US$290 million in October, the island received pledges from other international lending agencies ($150Mn from the Caribbean Development Bank and $200Mn form the IDB). This puts the country in a much better position relative to the  $577.1Mn (7 weeks of import) reported in September of this year.  This is also a significant improvement over its all-time low of about $410Mn (6.6 weeks) reported last December.

(Bloomberg) The meeting of OPEC and its allies moved into its second day in Vienna after Russian resistance scuppered an output-cut deal yesterday. Today’s talks focus on curbing production by 1 million barrels a day, led by OPEC members to the tune of 650,000 barrels. So far, oil traders seem to be humming ‘this means nothing to me’ with Brent crude futures holding around $60 a barrel this morning while West Texas Intermediate languishes close to $51.

(Bloomberg) The arrest of Huawei Technologies Co.’s chief financial officer, Meng Wanzhou, has thrown a spanner in the works for the prospect of improving relations between the U.S. and China. There is a debate raging in Beijing on whether the country should continue with trade talks, or see the move as part of a wider American campaign against China and retaliate accordingly. Either way, the U.S. is continuing to make things hard for companies and countries that threaten its global tech dominance. 

EquityLine Mortgage Investments Corporation, a Canadian mortgage company that finances projects traditionally ignored by mortgagors, will seek to raise US$10 million in a preference share offer that opens in Kingston on December 10. The start-up company aims to list on the Jamaica Stock Exchange (JSE), and subsequently, on the Toronto Stock Exchange.  The offer includes $5Mn of 8% preference shares at US$2 each, with an option to upsize the offer. On the overseas market, it will seek to raise an additional US$20 million. The funds will allow the company to acquire portfolios of mortgage assets worth nearly the value of the sums it raises from the market. Another overseas entity, MPC Clean Energy, is also making an offer in the local market which opened on Monday.

EIGHT founders of Toronto-based Alignvest Acquisition II Corporation and certain other investors close to the company that proposes to buy out 100 percent of regional insurer Sagicor may receive CAN$129 million in profit as the holders of a special class of shares. At the close of its initial public offering (IPO) in May 2017, Alignvest issued a total of 12,887,500 Class B Shares for an aggregate price of C$25,785 or approximately C$0.002 per Class B Share. Some 86 percent of these shares, a total of 11,112,271 Class B shares, were issued to individuals described as the founders of Alignvest. (Trinidad Express) 

(CNBC) OPEC is meeting at its headquarters in Vienna, Austria, with the aim of reaching an accord over production levels for the next six months. Saudi Arabia has been leading calls for the group to trim output, amid surging supply and fears that an economic slowdown will erode fuel demand. Saudi Energy Minister Khalid al-Falih told reporters on Thursday morning that a cut of 1 million barrels would be sufficient. That level is less than many analysts anticipated.