• The Government on Tuesday (January 8) tabled the Second Supplementary Estimates, which show that the Administration is proposing to spend an additional $11.4 billion for this fiscal year.

• The Estimates reveal that the budget has been increased from $791.11 billion to $802.56 billion.

• Recurrent (housekeeping) expenses have moved from $572.46 billion to $582.5 billion, for an additional expenditure of $9.65 billion.

• In terms of capital (development) spending, this is proposed to be increased by $1.36 billion, moving from $218.64 billion to $220.04 billion.

(Source:  JIS)

• According to Fitch, Guyana will likely see a general election in Q119 after a successful no-confidence vote against the ruling A Partnership For National Unity (APNU) government in December 2018.
• The 33-32 margin of the no-confidence vote will heighten political uncertainty in the coming weeks, as APNU has already challenged the vote.
• The expectation is that the opposition People's Progressive Party (PPP) will be slight favorites if an early election takes place. 

(Source: Fitch)

• The Barbadian economy is expected to crawl dead last among Caribbean economies this year, shrinking by a disappointing -0.5%  last year, the second lowest growth rate region-wide, according to the United Nations economic watchdog for the area.

• Barbados is expected to have the lowest growth of just 0.5% in 2019, said the latest report from the Economic Commission for Latin America and the Caribbean (ECLAC).

• When lined up against the other 32 nations in Latin America, South America, and the Caribbean, Barbados’ decline of -0.5% for this year places it as the economy with the fifth lowest growth rate.

• Growth this year is expected to be led by Antigua and Barbuda at 5.3%; Grenada, 5.2%; Guyana, 3.4%; and St Vincent and the Grenadines at 3.2%, it said

(Source: Barbados Today)

• Federal Reserve Chair Jerome Powell said policymakers are “going to be patient and watching, and waiting and seeing” before adjusting interest rates again.
• Still, the bank is intent on cashing in on maturing debt rather than re-investing it to attain a “substantially smaller” balance sheet, he said.
• Analysts now see the once widely expected March rate hike as off the table with numerous Fed speakers increasing their dovish tones.

(Source: Bloomberg)

• According to Fitch, the Colombian peso (COP) is expected to appreciate modestly in the coming months as oil prices trend higher and real GDP growth picks up.
• Over the longer term, the peso will likely trade sideways as higher energy prices and a narrowing real interest rate differential with the US offset one another.
• Fitch has revised their 2019 average forecast to COP3,172.9/USD, from COP3,010.9/USD previously. 

(Source: Fitch

• Total U.S. debt is about $21.9 trillion, of which $16 trillion is owed by the public. The sustained annual U.S. deficit is now believed to be more than $1 trillion.
• “I’m very worried about it,” Fed Powell said Thursday. “It’s a long-run issue that we definitely need to face, and ultimately, will have no choice but to face.”
• In part because of continued rate increases under Powell, the interest cost on that debt could start to become a bigger and bigger burden. 

(Source: CNBC)

• Receives Tenders for 97.9% of 8.250% Senior Notes due 2020 and 97.9% of 7.125% Senior Notes due 2022

(Source: PR Newswire)

• Yesterday’s trading session ended with more losers than winners with 50 stocks trading of which 18 advanced, 20 declined and 12 traded firm.

• All major indices experienced marginal declines, except for the Junior Market Index which advanced slightly (+0.64%) to close at 3,242.41.

• Interestingly, Indies Pharma dominated trading for the second time this week with over 23.2Mn units changing hands, representing 88.04% of Wednesday’s volumes. Remarkably, the stock traded firm, closing the day at $3.20 per share.

• INDIES also dominated trading on Monday with over 92.7Mn units traded or 97.17% of the day’s volumes.  Notably, only a few shareholders hold that many shares outside the founders.

• Meanwhile, Junior Market newbie, Fontana saw some action for the first time on its second day of listing, with 162 shares changing hands at a price of $3.17 per share, closing the day at with a 68.6% gain on its IPO price of $1.88.

(Source: JSE, NCBCM Research)

• Fitch forecast real GDP growth in Haiti will reach 2.4% in 2019 and 2.0% in 2020.
• Beyond agriculture and commerce, the textile industry will remain a key driver of growth, underpinning formal employment and exports.
• Domestic political instability and uncertainty over US policies will undermine investment and limit long-term growth potential.

(Source: Fitch)

• Yesterday’s meeting between President Donald Trump and Congressional Democrat leaders produced no progress towards resolving the government shutdown as talks collapsed soon after they began.
• Trump, who walked out of the discussion yesterday, is traveling to the Mexican border today to rally support for his stance on the wall. Barring a last-minute change of heart by either side, 800,000 federal workers will miss their paychecks tomorrow.
• Republicans in Congress may be starting to lose patience with the president’s position as they hold their own meetings in an attempt to find a solution to the impasse.

(Source: Bloomberg)