• TransJamaican Highway Limited (TJH) has advised that the Cabinet of the Government of Jamaica (GOJ) has approved the National Road Operating and Constructing Company Limited (NROCC) to accept TJH’s financial offer of US$20,300,000 plus potential Upside Formula amounts, to acquire the concession to operate and maintain Phase 1C of the Highway 2000 toll roads until November 20th, 2036. The government’s acceptance is subject to contract and additional conditions.
• This is in keeping with the Right of First Refusal granted to TJH contained in the Second Amended and Restated Concession Agreement dated January 29, 2020 with NROCC.
• Phase 1C is the recently completed extension of Highway 2000 between May Pen and Williamsfield. TJH operates and maintains the remaining elements of Highway 2000 consisting of Phase 1A (between Caymanas and Sandy Bay), Phase 1B (between Sandy Bay and May Pen) and the Portmore leg.
• TransJamaica stands to gain from this transaction as the Phase 1C road is a major thoroughfare along the south coast and will significantly reduce motorists’ travel time to Kingston from Mandeville. Increased traffic flows have bolstered and will continue strengthening the company’s topline. Management anticipates that Phase 1C will provide a boost to TJH’s revenues by an additional US$9Mn per annum which should also result in higher earnings,
• TJH’s stock price has increased by 14.0% since the start of the calendar year. The stock closed Thursday’s trading session at $3.09 and currently trades at a P/E of 9.0x, which is below the Main Market Energy, Industrial, and Materials Sector Average of 10.3x.

(Sources: JSE & NCBCM Research)

• PROVEN Group Limited has announced that Mr. Christopher Williams, the long-standing CEO of PROVEN Management Limited (“PML”) and co-founder of PROVEN Group Limited (PGL) will retire from his role in PML’s day-to-day operations effective January 31, 2025.
• Christopher Williams has served as President and CEO of PROVEN Management Limited since its inception. January 31, 2025 will mark the fifteenth anniversary of the Group, which has benefited from his dynamic and visionary leadership.
• While retiring from daily executive operations, Williams will remain a significant shareholder, active director of PML, and member of the Investment Management Committee.
• Additionally, he will continue to sit on the board of directors of several of PGL’s subsidiaries. In these capacities, Williams’ expertise, strategic insight, and guidance will remain an invaluable asset to the ongoing growth and success of the Group.
• PGL’s stock price has decreased by 14.9% since the start of the calendar year. The stock closed Thursday’s trading session at $19.14 and currently trades at a P/E of 6.19x which is above the Main Market Financial Sector Average of 12.74x.

(Source: JSE & NCBCM Research)

• The Dominican Association of Free Trade Zones (ADOZONA) is celebrating the record-breaking export results published by the General Directorate of Customs (DGA) for June 2024. The sector achieved a new high with exports totalling US$0.75Bn, marking a 4.6% increase compared to the same period last year. Overall, total exports for June 2024 rose by 8.6% from June 2023, reaching US$1.13Bn.
• ADOZONA President Luis José Bonilla Bojos highlighted the significance of these results, stating that they reaffirm the vital role of Free Trade Zones in driving economic growth and job creation in the Dominican Republic.
• “These results reflect the continued commitment of the export sector and its ability to adapt and grow in a dynamic global environment. ADOZONA is proud that our sector can contribute significantly to the sustainable economic development of our nation, promoting investments and generating opportunities for all Dominicans,” said Bonilla Bojos.
• In the first half of 2024, total exports amounted to US$6.33Bn, showing a 3.1% growth compared to US$6.15Bn in the same period of 2023. Domestic exports reached US$1.92Bn, slightly below the previous year while Free Trade Zone exports hit a record US$4.26Bn, reflecting a robust growth of 6.8% compared to US$3.99Bn by June 2023.
• Annualized exports from Free Trade Zones over the past 12 months reached a historic record of US$8.3Bn. If this trend continues, exports could exceed US$8.5Bnn by the end of 2024, marking a significant milestone in the sustained growth of the export sector.

(Source: Dominican Today)

• Speaker after speaker at the launch of a regional arm of a global network for collaboration in cyber security lamented the shortage of cyber security experts in Trinidad and Tobago (T&T), amid a plethora of cyber-attacks. The Caribbean chapter of the International Information System Security Certification Consortium (ISC2) was launched on July 16 at the Hyatt Regency, Port of Spain.
• Devon Seale, chairing the event, said the group aimed to equip professionals with the knowledge to safeguard their data and to build resilience. "In the past two years we have been bombarded by many cyber-attacks," Seale said. "Cyber security is a shared responsibility."
• He warned that all the current protection against cyber-attacks will become null and void when cyber-attacks are launched by combining artificial intelligence (AI) and quantum computing. Such attacks, he said, will crack into systems by brute force, by going through all possible permutations of code until finding one that works. Quantum computing uses quantum mechanics to solve problems too complex for classical computers.
• The region has seen ransomware attacks double between 2022-2023, he said, costing US$1Bn, that otherwise could have been used for things like healthcare.
• Given the threat,  Governments need to facilitate the creation of opportunities to build and develop human competencies to lessen the likelihood of cyber-attack or ransomware attacks.

(Sources: Trinidad and Tobago Newsday & NCBCM Research)

• U.S. economic activity expanded at a slight-to-modest pace from late May through early July. Firms are expecting slower growth ahead as they also reported signs the jobs market continues to soften. The softening job market aligns with the Federal Reserve's recent pivot to more keenly assessing slowing labour market demand to ensure it doesn't wait too long before cutting interest rates.
• "Economic activity maintained a slight-to-modest pace of growth in a majority of districts this reporting cycle," the Fed said in its survey released on Wednesday, which polled business contacts across the central bank's 12 districts through July 8.
• "Expectations for the future of the economy were for slower growth over the next six months due to uncertainty around the upcoming election, domestic policy, geopolitical conflict, and inflation," the Fed survey said.
• The Fed's analysis, released roughly every six weeks, comes as Fed Chair Jerome Powell and his colleagues emphasised that risks on inflation and jobs are now in balance. Earlier on Wednesday two top Fed officials said interest rate cuts are "getting closer," remarks that appear to set the stage for a lowering of borrowing costs in September.
• Fed officials recently have said the labour market has come into better balance thanks to an influx of workers, many of them foreign-born, a development also represented in Wednesday's report. The Boston Fed said Cape Cod contacts noted normal levels of availability of foreign-born workers through short-term visa programs, which support the seasonal labour demand in the area.
• The Fed is trying to engineer a so-called "soft landing" for the economy, in which economic growth gradually slows and the unemployment rate remains as inflation, which spiked to a 40-year high two years ago, returns to the Fed's 2% target rate.
• The unemployment rate hit a 2.5-year high of 4.1% in May, with annual wages growing at the slowest pace in three years amid an expanding labour pool, the latest government data showed.

(Source: Reuters)

• The European Central Bank kept interest rates unchanged as expected on Thursday, with its president Christine Lagarde saying a move in September was "wide open".
  Investment indicators point to muted growth in 2024, she continued, noting that the eurozone had probably grown at a slower pace in April-June than the 0.3% of the first quarter.
• The euro was left unchanged by Thursday's decision, which had been telegraphed by policymakers in recent weeks. Now, the focus shifts to September's meeting, which will come at around the time that markets also see the U.S. Federal Reserve cutting.
• The ECB's key concern is that domestic prices, particularly for services, are moving sideways, while relatively quick wage growth threatens to perpetuate inflation above the ECB's target.
• The economy also remains relatively weak, with a string of surveys pointing to anaemic growth, easing fears that buzzing summer activity, particularly in tourism, will further fuel price pressures.

(Source: Reuters)

• Consumer prices rose 1.1% in June 2024, with the All Jamaica Consumer Price Index (CPI) rising from 134.9 in May to 136.4 in June.
• The main contributor to this movement was a 1.4% increase in the index for the heaviest weighted division, ‘Food and Non-Alcoholic Beverages’. The index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ rose 6.8% during the month on the back of higher prices for some agricultural produce, primarily vegetables, such as cabbage, carrot, tomato and yam.
• The inflation rate was also impacted by an 0.8% increase in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division, which was largely influenced by higher electricity rates. Higher cost of rent also contributed to the increase; with actual rent increasing by 0.4% and imputed rent up by 1.0%. However, the overall inflation was tempered by a 1.8% fall in the index for the ‘Water Supplies and Miscellaneous Services related to the Dwelling’ due to lower water and sewage rates.
• Additionally, there was a 1.3% increase in the index for the ‘Transport’ division mainly due to the revised fare structure of the Jamaica Urban Transit Company Limited (JUTC).
• Given the sharp increase in consumer prices for June, the point-to-point inflation rate was 5.4%. This was 0.2 percentage points higher than the 5.2% recorded for May 2023 to May 2024. The divisions making the largest contribution to the point-to-point inflation rate were ‘Food and Non-Alcoholic Beverages’ (4.0%), ‘Transport’ (11.1%) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (5.4%). The calendar year-to-date inflation rate as of June 2024 was -0.3%.
• At its last monetary policy meeting in June, the BOJ kept its policy rate at 7.00% and agreed to start gradually easing its monetary policy stance. However, with the recent passage of Hurricane Beryl, disruption to produce supplies could put upward pressure on food prices. This upward pressure could delay the BOJ’s plans to ease rates as food prices are a key component in Jamaica’s CPI basket. The next policy decision will be on the 20th of August.

(Sources: STATIN & NCBCM Research)

• The Statistical Institute of Jamaica (STATIN) revised its Labour Force Survey (LFS) to incorporate the latest international standards and guidelines from the International Labour Organization (ILO). This revision resulted in a significant change in the definition of employment and unemployment. 
• Additionally, the reference week for the LFS has shifted from the last full week of the previous quarter to the first full week of the current quarter and the minimum age for inclusion in the LFS has been raised to 15, which is consistent with the ILO recommendations (previously 14 years old).
• STATIN further noted that these changes represent a break in the series, and as such, data comparability with previous quarters is not advised. The unemployment rate in October 2023 was at a record low of 4.2%.
• That said, the LFS revealed that the unemployment rate in January 2024 was 5.4%. In January 2024, the labour force comprised 1,486,400 persons, 788,500 males (53.0%) and 697,900 females (47.0%), with an overall labour force participation rate of 68.9%.
• 1,405,700 members of the labour force were employed in January 2024, with 757,200 employed males (53.9%) and 648,500 females (46.1%). Among the employed population, 28,100 or 2.3% were underemployed (time-related), meaning they worked part-time but wanted additional hours.
• The occupation group with the highest number of employees was ‘Services and Sales Workers’, employing 328,600 individuals. The second largest was ‘Elementary Occupations’, employing 197,900 individuals then ‘Skilled Agricultural, Forestry and Fishery Workers’ which employed 188,200 persons. Regarding industry groups, ‘Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles’ was the largest employer, engaging 266,500 individuals (19.0%)
• The unemployment rate for January 2024 was 5.4%. There were 80,700 unemployed persons; females accounted for 61.2% of those unemployed. The number of unemployed youths (persons aged 15 -24 years) was 32,300, of which 17,600 or 54.5% were females.
• Outside the labour force, there were 669,400 individuals, with more females (399,200) than males (270,200). There were 142,200 males and 146,600 females within the youth population of 15 to 24 years outside the labour force. Additionally, there were 100,700 youth who were not employed, not enrolled in educational activities or currently in training (NEET), of which 49,400 were males and 51,400 females.

(Source: STATIN)

• Commercial banks in Barbados have committed to adhering to new Central Bank Market Conduct Guidelines aimed at enhancing transparency and fairness in the financial services industry, according to the head of the banking association.
• Effective on Friday, July 12, the guidelines, set minimum standards for interactions between licensed financial institutions and their clients. The new guidelines address five key areas: bank fees and charges, accessibility, opening accounts, closing accounts, and complaints. They also offer recommendations for improving communication with customers.
• Under the new rules, banks and finance companies must seek the Central Bank’s non-objection at least 60 days before implementing new fees or increasing existing ones. Customers must be notified 30 days in advance of approved changes. The guidelines also prohibit charges for electronic fund transfers or cash management transactions under $ 10,000 per day.
• To promote inclusivity, physical bank locations must be wheelchair accessible and navigable for the visually impaired. Digital interfaces must accommodate various disabilities. As of July, all commercial banks must offer at least one no-fee account and low-fee accounts for vulnerable groups, including pensioners, minors, and students.
• The guidelines also outline procedures for opening and closing accounts, ensuring compliance with Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) laws. Banks must provide clear timelines and periodic updates during the account application process, aiming to decide within three to five business days.
• Central Bank Governor, Dr Kevin Greenidge, stressed the importance of these regulations for maintaining consumer confidence in financial institutions. “By issuing and the financial institutions adhering to these, it ensures that we are able to, one, provide a very transparent system, but also be fair to consumers for their confidence in our financial institutions,” he said. The governor also highlighted the potential impact on economic growth, stating, “The more transparent you are, the easier it is to do business; it’s clear rules and guidelines, and so market conduct pulls all those together into a coherent, integrated structure that people can easily follow.”

(Source: Barbados Today)

• Grand Bahama tourism stakeholders welcome the news of increased airlift to the islands this fall, with foreign air arrivals over the first five months showing an 8% year-over-year (YoY) increase.
• The Ministry of Tourism, Investments, and Aviation recently announced that Grand Bahama Island is poised to receive more airlift boosts this fall 2024. At the end of 2023, Grand Bahama experienced a 33% growth in foreign air arrivals, the largest YoY percentage growth compared to all the islands of The Bahamas.
• For the first five months of 2024, the island’s foreign airlift arrivals had already outperformed the same period in 2023 by some 8%, putting the island on a trajectory to exceed pre-Dorian figures.
• “Our priority to focus on increasing airlift into Grand Bahama is a sign of our commitment to this community and our product partners, as we continue to position the island to benefit from the significant investments in its project pipeline,” said Chester Cooper, Deputy Prime Minister and Minister of Tourism, Investments & Aviation.
• From September 6 through October 3, 2024, Bahamasair is set to increase capacity on its Freeport to Fort Lauderdale route. American Airlines will return to Freeport after October 3 (suspended due to the hurricane season) with daily service and will ramp up its Miami-Freeport offerings to twice daily in November. Bahamasair is also launching a service between West Palm Beach and Freeport, beginning November 17, 2024, just in time for the high-demand Thanksgiving holiday travel.
• Overall, these will ensure continued airlift into the island, providing a significant boost to fall travel, while exploring new markets for Grand Bahama and positioning the island for returned service from both local and legacy airlines.

 (Source: Eyewitness News)