• Social Protection Analyst at the Planning Institute of Jamaica (PIOJ), Camille Graham, has underscored the need for continuous dialogue on the implications of the aging population and how to capitalize on opportunities that this group offers to the economy and society.
• Graham said that citizens and stakeholders “must be mindful of the social, economic and environmental implications of the aging population in Jamaica, what this phenomenon means for all of us and how we can make it work in the best interest of all”.
• She was addressing a recent ‘Dialogue for Development Series’ public consultation at the Golf View Hotel in Mandeville, themed ‘Ageing and Development: Exploding Myths, Exploring Opportunities’.

(Source: JIS)

• Lasco Manufacturing’s profit increased by 11.8% for the six-month period ended September 30, 2019. Net profit YTD moved up from $503.06Mn (EPS: $0.12) to $562.56Mn (EPS: $0.14).
• The net profit improvement came on the back of lower finance costs (down 15.3% or $9.7Mn) as well as a 1.3% ($50.30Mn) increase in sales coupled with a 2.0% ($48.30Mn) fall in cost of goods sold.
• The stock has risen 36.2% YTD and closed yesterday’s trading session at $5.03. At this price, the stock currently trades at a P/E of 17.80x which is below the Junior Market Manufacturing sector average of 24.50x.

(Source: LASM Financials)

• A resilient American consumer helped the U.S. economy expand more than forecast in the third quarter, assuaging concerns for now of a more pervasive slowdown tied to weakening business investment and faltering export markets.
• Gross domestic product expanded at a 1.9% annualized rate, according to Commerce Department dataWednesday that topped forecasts in a Bloomberg survey that called for 1.6% growth. That’s down from 2% in the second quarter.
• The gain mainly reflected strength in consumer spending, the biggest part of the economy, which increased at a 2.9% rate and exceeded projections for a 2.6% rise.
• For businesses, non-residential fixed investment fell the most since late 2015.

(Source: Bloomberg)

• Home-price gains in 20 U.S. cities decelerated in July for a 16th straight month, as values proved still too elevated for buyers despite low mortgage rates.
• The S&P CoreLogic Case-Shiller index of property values increased 2% from a year earlier, the slowest since August 2012, according to data released Tuesday. Nationally, home-price gains remained steady, rising at a 3.2% pace.

• The latest data highlight how the market continues to struggle despite solid wage gains for Americans and cheaper borrowing costs. A shortage of affordable inventory and construction constraints have helped lift home prices despite demand that has been somewhat tepid as elevated prices deter some potential buyers.
• Price gains may accelerate in coming months amid signs that lower rates may be luring more buyers into the market. Existing home sales rose in August to the best pace in more than a year, while the median sales price saw the second-fastest gain in the past year.

 (Source: Bloomberg)

• Home-price gains in 20 U.S. cities decelerated in July for a 16th straight month, as values proved still too elevated for buyers despite low mortgage rates.
• The S&P CoreLogic Case-Shiller index of property values increased 2% from a year earlier, the slowest since August 2012, according to data released Tuesday. Nationally, home-price gains remained steady, rising at a 3.2% pace.

• The latest data highlight how the market continues to struggle despite solid wage gains for Americans and cheaper borrowing costs. A shortage of affordable inventory and construction constraints have helped lift home prices despite demand that has been somewhat tepid as elevated prices deter some potential buyers.
• Price gains may accelerate in coming months amid signs that lower rates may be luring more buyers into the market. Existing home sales rose in August to the best pace in more than a year, while the median sales price saw the second-fastest gain in the past year.

 (Source: Bloomberg)

• The pressure is mounting on the Federal Reserve to take more aggressive steps to address stress in U.S. funding markets as swap spreads tumbled to record lows Thursday. 
• The New York Fed is planning a fourth temporary liquidity injection Friday, and the moves have helped to allay concern after repo rates soared to 10% Tuesday.
• Still, the dollar-funding squeeze could get worse with the end of the quarter approaching, raising the possibility that liquidity-providing banks will retreat to close their books and meet capital needs.
• Meanwhile, another round of Treasury auctions next week could leave markets short an additional $45Bn in cash.
• Over in China, analysts called for stronger easing signals after the People’s Bank of China only slightly lowered the one-year reference rate for bank loans, a new gauge of borrowing costs

(Source: Bloomberg)

• The tourism industry continues to record unprecedented growth, with a 9.1% increase in stopover arrivals for the first eight months of 2019.
• Director of Tourism, Donovan White, points out that up to August 31, 2019, Jamaica recorded 1.8Mn in stopover arrivals, achieving a revenue inflow of US$2.39Bn, which is a 12.0% growth in earnings over the same period last year.
• White was speaking at the 2019 Jamaica Product Exchange (JAPEX) Media Breakfast at the Half Moon Hotel, Rose Hall, Montego Bay, St. James, on Tuesday, September 10.
• According to the Director, Jamaica is poised to generate approximately US$3.5Bn in tourism earnings from stopover arrivals for 2019, a 12.0% increase in revenue inflow over 2018.
• He added that just under 2.7Mn stopover tourists are expected to visit the island by the end of 2019, an increase of 8.5%.

(Source: JIS)

• Net profit at Indies Pharma increased 41.2% for the nine-month period ended July 31, 2019, moving from $80.11Mn (EPS: $0.06) to $113.09Mn (EPS: $0.09).
• Revenues at the company increased by 28.2% (or $126.51Mn) and were the major contributor to the improved bottom line. In addition, Indies has decreased their liabilities and is now debt-free relative to the corresponding period of 2018 thereby resulting in a decline of 93.3% (or 3.92Mn) in finance costs. The company has also benefitted from exchange gains which increased by $932K.
• The stock has risen 7.86% since the start of the calendar year and closed yesterday’s trading session at $3.43. The stock currently trades at a P/E of 28.58x which is above the Junior Market Distribution sector average of 25.01x.

(Source: Indies Pharma Financials)

• Record-low unemployment, stable inflation, and credit expansion will drive economic activity in Jamaica over the coming quarters.
• Fitch Solutions has forecasted real GDP growth of 2.1% y-o-y in 2019 and 1.8% in 2020.
• Risks to the forecast are weighted to the downside given Jamaica’s dependence on the United States for remittances, tourism, and exports.

(Source: Fitch Solutions)

• Fitch has become more downbeat on the near-term outlook for Latin America’s major currencies. Amid a deteriorating global economic outlook and US-China trade tensions, commodity prices have declined, causing most regional currencies to underperform expectations in recent months.
• Moreover, downside risks to the forecasts are also rising given vulnerabilities in the external environment that would put selling pressure on risk assets.
• Moreover, Fitch has become bullish on the US dollar, with the unit being supported by growing risk aversion in global markets, dovish central banks globally and technical dynamics. Idiosyncratic political factors also remain significant drivers of price movement in Argentina, Brazil, and Mexico, with risks largely slanted to the downside in these markets.

(Source: Fitch)