Jamaica Producers Group Limited (JPG) experienced a sharp (+67%) increase in net profit attributable to shareholders for the six months ending June 30, 2018.  The company’s performance was boosted by a 34% increase in revenues from its Food and Drink segment which benefitted from an improvement in its European juice business as well as its tropical food snack business. Meanwhile, the significant capital investment in the Logistics & Infrastructure division resulted in a 30% increase in profit before finance cost and taxes to $1.3Bn. 

Looking ahead, the Group’s management foresees that the Logistics and Infrastructure division will continue to benefit from capital investment and business development initiatives geared towards advancing Kingston Wharves as a leading regional multipurpose and multi-user terminal and a market-leading logistics service provider. The Food and Drink division is also undergoing structured continuous improvement initiatives that include new production lines, product and packaging innovation and improved sales and marketing activities 

JPG currently trades at a $17.30 per share, representing an appreciation of 3.5% year-to-date.  At its current price, JPG has a P/E of 23.52x which is above the conglomerate sector average of 16.36x.

(CNBC) A new round of U.S. tariffs on $16 billion worth of Chinese imports kicked in on Thursday, prompting Beijing to retaliate with its own levies on American goods worth the same amount. The latest trade escalation comes as officials from the world's two largest economies meet for tariff negotiations in Washington.

At 12.01 a.m. EDT on Thursday, the U.S. began collecting additional 25 percent duties on 279 Chinese import product categories identified by U.S. Trade Representative. Key products that will be hit by the duties include semiconductors, chemicals, plastics, motorbikes and electric scooters. 

Beijing retaliated with its own fresh tariffs on $16 billion worth of additional imports from the U.S. including fuel, steel products, autos and medical equipment. The levies took effect the same time that the U.S. tariffs were imposed on Thursday, state news agency Xinhua reported, citing an announcement from the Customs Tariff Commission of the State Council.

(CNBC) Brent oil prices rose to near $76 a barrel on Monday as a committee monitoring a deal on oil output between OPEC and non-OPEC producers saw production rising as planned. International Brent crude oil futures rose 16 cents to $75.98 per barrel by 10:34 a.m. ET (1434 GMT). U.S. West Texas Intermediate (WTI) crude futures were down 2 cents at $68.70 a barrel. Trading activity was limited due to a public holiday in Britain, traders said.

Members of an OPEC and non-OPEC monitoring committee found producers in a supply-reduction agreement cut their July output by 9 percent more than called for in their pact, two sources familiar with the matter said on Monday. The Organization of the Petroleum Exporting Countries and other producers led by Russia agreed in June to return to 100 percent compliance with oil output cuts that began in January 2017.  This follows months of underproduction by Venezuela and other producers which cut output by 160 percent of the agreed target.

The July findings compare with a compliance level of 120 percent for June and 147 percent for May, meaning participants have been steadily increasing production.

(Bloomberg) Donald Trump has signed off on a bilateral agreement with Mexico to revamp the North American Free Trade Agreement, according to three people familiar with the matter, and the president will make a trade announcement shortly. “A big deal looking good with Mexico!” Trump tweeted earlier on Monday. Trump will make an announcement on trade from the Oval Office at 11 a.m. in Washington, according to a statement from the White House. The peso rose ahead of Trump’s remarks. U.S. stocks also advanced, with auto suppliers and rail companies among the top gainers.

The Jamaica Stock Exchange (JSE) has advised that they have signed a Memorandum of Understanding (MOU) with Blockstation to explore the possibilities of offering crypto-currency trading to investors. The release from the JSE further stated that the market will be notified of ongoing developments as the framework and platform to effect such trading is currently being examined. According to Marlene Street Forrest, the service would satisfy considerable investor interest in digital assets. Blockstation indicated that a live workshop on crypto-currency trading was conducted with a group of five JSE broker members and representatives of local regulators. However, the BOJ is skeptical about virtual currencies and has not formalized a policy regulating its use thus far, despite issuing a press release about the potential benefits that blockchain technology possess for financial inclusion. This is an interesting development that Investors should look at keenly based on the increasing popularity of blockchain technology and the potential impact it will have on payment processes and the capital markets. 

Source: JSE

(CNBC) President Donald Trump said he disagreed with the Federal Reserve's decision to raise interest rates, and that the Fed should do "what's good for the country," according to an interview with Reuters. The US President has stated that he is "not thrilled" with Fed Chairman Jerome Powell decision to raise  interest rates, arguing that the central bank should do more to help the US economy. This is unconventional as Presidents have historically avoided commenting on Fed policies since the central bank is designed to be independent from political interference. Since Trump took office, the Fed has raised rates five times, including twice this year under Powell. The Fed has been carefully and gradually raising rates over the past several years to keep inflation in check and to prevent the economy from overheating. The central bank is expected to raise rates at least two more times this year, citing reasons such as a growing economy and increasing levels of employment. It has also penciled in three more rate hikes in 2019. Despite criticism from the White House, economists have commended the actions of the Federal Reserve. According to a survey released Monday by the National Association for Business Economics, approximately eight in 10 economists believe the Fed's interest rate policies are appropriate for the economy. The Federal Funds Rate is currently set at 2.0%, with the  Federal Open Market Committee previously signaling it would raise rates to 2.5 percent in the latter part of 2018, 3.0 percent in 2019, and 3.5 percent in 2020.

An initial look at consumer sentiment for the month of August came in below expectations.

The University of Michigan's consumer sentiment index hit 95.3 for August — the lowest level since September — according to a preliminary reading released Friday. Economists polled by Reuters expected the index to hit 98 in August, up from 97.1 in July.

Richard Curtin, chief economist of the university's Surveys of Consumers said the weakness "reflected much less favorable assessments of buying conditions, mainly due to less favorable perceptions of market prices." Curtin noted, for example, that consumers viewed buying conditions for vehicles less favorably than at any time in the past four years, as "vehicle prices [are] being judged less favorably than anytime since the close of 1984."

The Federal Reserve has already raised rates twice this year and is expected to hike two more times before year end. Market expectations for rate hikes in September and December are at 93.6 percent and 61.3 percent, respectively, according to the CME Group's FedWatch tool.

Inflation has been on the rise lately.The so-called core Consumer Price Index last month posted its largest increase since September 2008.

(CNBC) China is the latest country to offer some comforting words to President Recep Erdogan, as Turkey experiences a currency meltdown and a tariff spat with the U.S.

Foreign Ministry spokesperson Lu Yi said China believes that Turkey has the "ability to overcome temporary economic difficulties," according to a translated statement placed on the ministry's website Friday. He hoped that all parties concerned would resolve their differences through dialogue.

His comments follow a reported phone call this week between Erdogan and Angela Merkel, with the German chancellor offering to strengthen ties between the two nations. 

Turkey's currency plummeted 20 percent against the greenback in a single trading day last Friday after President Donald Trump announced a doubling of steel and aluminum tariffs on Ankara, in return for the country's continued detention of American pastor Andrew Brunson.

(Bloomberg) Venezuela’s debt crisis passed a new milestone as the government missed a principal payment on one of its bonds for the first time this week, boosting arrears on international securities to $6.1 billion.  It was hardly a surprise for investors, who have watched the value of their securities plummet since President Nicolas Maduro announced in November that he would seek to restructure the country’s debt in the midst of an economic crisis. But it reinforced the difficult position creditors find themselves in as the overdue payments pile up with no resolution in sight and
no easy recourse for getting their money back. Maduro’s recent measures to reduce long-standing gasoline subsidies and redenominate the currency by lopping off five zeroes, both set to take effect this month, are steps in the right direction but ultimately unlikely to help the country pay back bondholders, said Siobhan Morden, who heads Nomura Securities International’s Latin America fixed-income strategy. “It still looks like a countdown with economic crisis morphing into a political crisis for the Maduro administration,” Morden said in an Aug 15 note.