• Panama's economy is expected to grow this year as the impact from the closure of First Quantum Minerals' Cobre Panama copper mine fades, and non-mining sectors continue to grow, the International Monetary Fund's executive board said on Monday, August 25, 2025.
• Panama's economy is recovering after the Cobre Panama mine, one of the world's largest open-pit copper deposits, was closed in 2023 following protests from residents over tax contributions and its environmental impact.
• The IMF expects Panama's economy to grow 4.5% in 2025 and to keep growing 4% yearly through 2030. As a comparison, the Central American country's economy grew 2.9% in 2024. The IMF also noted that the country's economy is expected to continue its recovery; however, the outlook is subject to significant downside risks and a high degree of uncertainty. Additionally, a spending reduction plan approved by the cabinet, if fully implemented, could bring the government’s 2025 fiscal target within reach.
• Panama, one of the world's fastest-growing economies in the last decade, recorded a significant slowdown in gross domestic product growth in 2024 from the previous year's 7.4% expansion, as the copper mine closed and air transport declined.

(Source: Reuters)

• Wall Street banks have hired dozens of senior executives in recent months, as improved economic sentiment has spurred mergers and IPOs after a lull earlier in the year due to concerns over the effect of U.S. tariffs.
• The surge in job-hopping, which typically occurs in the spring, illustrates how rising confidence has prompted banks to staff up to handle a wave of dealmaking.
• On Friday, JPMorgan named industry veteran Jerry Lee as global chair of investment banking, who will be joining from his rival Goldman Sachs. The bank has recently added several senior bankers in technology, energy and activism defence and hired more than 300 bankers between January and April across its global banking unit.
• Wall Street executives usually receive and consider job offers between January and April, weeks after receiving their yearly bonuses. But the 2025 hiring season was interrupted by the announcement of U.S. tariffs that President Donald Trump called "Liberation Day."
• Talks for M&A and capital markets transactions froze. "The tariffs put a hard stop on hiring and banks started to downsize," said Alan Johnson, founder of compensation consultancy Johnson Associates. In June, as investment banking activity resumed, job openings that were on hold materialised, according to bankers and recruiters.
• Although recruitment improved after tariff-fueled freezing, it is still below more active years in the last decade, said Alan Johnson, founder of compensation consultancy Johnson Associates.
• While hiring for senior managing director positions has been steady, banks started hiring more junior staff in August, according to Tom Ragland, founder and CEO of financial services search firm the Harrison-Rush Group.

(Sources: Reuters)

• Friday’s booming rally turned into Monday’s reality check as investors weighed just how aggressive the Federal Reserve will be on lowering interest rates and how the moves might impact the broader business and economic climate.
• Chair Jerome Powell, in his annual address at the Jackson Hole, Wyoming, symposium, gave Wall Street hope of easier days ahead when he said conditions “may warrant adjusting our policy stance,” which is generally seen as “Fedspeak” for cutting rates.
• Stocks soared while Treasury yields plummeted on the news as the knee-jerk reaction took hold for a rate reduction when the Federal Open Market Committee issues its next decision on Sept. 17.
• However, cheer turned to caution Monday as market experts weighed what happens next, even if a move next month is baked in. Stocks were mostly lower, and shorter-maturing Treasury yields, which are more sensitive to Fed action, moved higher.
• Traders on Monday were pricing in a near-certainty of a September quarter percentage point reduction from the Fed’s current target rate, currently around 4.3%. The implied probability of 82% was only slightly higher than a week ago but well above the 62% odds of a month ago, according to the CME Group’s FedWatch measure of futures prices. However, there is less certainty from there.
• The implied probability for another cut in October was just 42%. That second cut is about fully priced in for December, but there’s just a 33% expectation for three total moves this year.

(Source: CNBC)

• Jamaica is set to strengthen its position as one of the world’s most accessible island destinations over the next six months with expanded air service and seat capacity.
• From September 2025 through February 2026, seat capacity across the island’s three major airports is projected to grow by 4.4% compared to the same period last year. This includes Montego Bay’s Sangster International Airport (MBJ), Kingston’s Norman Manley International Airport (KIN), and Ocho Rios’ Ian Fleming International Airport (IFIA).
• For the September–February period, MBJ will see a 5.6% increase in scheduled seat capacity and an 8.5% rise in departures year over year. KIN is expected to record a 1.3% increase in capacity and a 3.1% rise in departures, while IFIA is projected to see a 37% increase in overall capacity.
• “This expanded airlift reflects Jamaica’s continued growth as a leading global tourism destination,” said Jamaica’s Minister of Tourism, Hon Edmund Bartlett. “Our airline partners across North America, Europe and the Caribbean recognise the demand for our island’s world-class offerings and have responded with more seats, more gateways and more convenience for travellers. This puts us firmly on track to meet our 5x5x5 growth targets.”
• In North America, service from key U.S. gateways will be complemented by new Canadian connections, giving travellers more ways to reach Jamaica’s shores. MBJ will welcome additional U.S. flights, including from Baltimore/Washington International Airport and Fort Lauderdale-Hollywood International Airport, along with new WestJet service from Edmonton, Alberta.
• In Europe, Jamaica gained its first direct Lisbon–Montego Bay flights on World2Fly Portugal, building on existing European service. Regional connectivity has improved with LIAT operating approximately three weekly flights between Kingston and Montego Bay.
• The growth in airlift comes on the heels of a successful 2024, which saw 4.3 million visitors and $4.3Bn in earnings. The U.S. remains Jamaica’s top source market, accounting for approximately 75% of stopover arrivals, while Canadian and European arrivals continue to post strong year-over-year gains.

 (Source: Jamaica Tourist Board)

• Speaking at the Bank of Jamaica’s (BOJ’s) quarterly press conference on August 21st, Governor Richard Byles assured that the bank has enough foreign currency reserves to satisfy demand by selling into the foreign exchange market. He indicated that in so doing, the BOJ can maintain the exchange rate at a relatively stable level.
• Mr Byles noted that as at August 12 this year, Jamaica’s gross international reserves stood at a historically high and healthy level of US$6.2Bn, or 148% of the measure considered adequate.
• Notwithstanding the healthy international reserves, the foreign exchange market recently experienced slightly higher-than-usual volatility. This volatility was attributed to temporary factors like global economic uncertainty, the Jamaican Dollar exchange rate breaching the $160.00 psychological threshold, and a narrowing of interest rate differentials¹. As a result, the Jamaican dollar depreciated by 2.5% for the 6 months ending June (6M 2025), which was faster than the pace for 6M 2024.
• Despite the volatility and depreciation, Governor Byles noted that the bank remains committed to a flexible exchange rate regime. “…supported by strong economic fundamentals and BOJ’s intervention to smooth out the volatility in the foreign exchange market, expectations have normalised. Since the end of June, the pace of depreciation has fallen and there has been a reduction in the market’s net open position,” Mr. Byles noted.
• Over the 12 months to July 2025, the BOJ sold US$1.2Bn through its B-FXITT facility, compared to US$956Mn in the previous year, while net purchases totalled approximately US$931Mn.

______________________

¹Interest rate differentials refer to the gap between domestic market interest rates and those in external markets

(Source: JIS)

• Panama is set to unleash over US$20Bn in new investments within the next year, largely focused on the Panama Canal, alongside several other major development initiatives. The country’s Minister of Foreign Affairs, Javier Martínez-Acha Vásquez, has extended an invitation to Barbados to engage in this upcoming phase of growth.
• During a recent visit to Barbados, Martínez-Acha Vásquez underscored the long-standing economic and social ties between Panama and Barbados, which he sees as a strong foundation for expanded cooperation. He pointed to Panama’s consistent economic growth, averaging around 8% since taking control of the canal from the United States in 1999. Now, under President José Raúl Mulino, Panama is preparing for a “positive economic shock” as the country enters a new era of development.
• Martínez-Acha Vásquez expressed Panama’s interest in working with Barbados in sectors where the island has proven expertise, such as tourism, international business services, and renewable energy. Panama is open to investment in areas like digital banking for underserved regions and is planning significant expansions in mining, agriculture, tourism, shipping, and healthcare—sectors he believes are ripe with opportunities for Barbadian businesses and entrepreneurs.
• The minister also emphasised Panama’s strategic location and logistics advantages, noting that it hosts five of the top ports in the Americas around the canal zone. While many Barbadians know Panama as a shopping destination, he stressed its role as a vital trade hub for Central and South America.
• Vásquez also highlighted plans to build two new ports, with construction expected to begin as early as next year. Panama is also served by several direct weekly flights and functions as a major air transit hub to Central and South America.

(Source: CariCRIS)

• China Concord Resources Corp (CCRC) has begun developing two Venezuelan oilfields, planning to invest more than US$1Bn in a project to produce 60,000 barrels per day (bpd) of crude oil by the end of 2026. The project marks a rare investment by a private Chinese firm in the Organisation of the Petroleum Exporting Countries (OPEC) country, which has struggled to attract foreign capital due to international sanctions on the administration of President Nicolas Maduro.
• Early last year, CCRC began negotiating its participation in the two oilfields - Lago Cinco and Lagunillas Lago - and signed in May 2024 a 20-year production sharing contract with Venezuela. The contract model, introduced by the Venezuelan government in 2020 under the Anti-Blockade Law to cope with U.S. sanctions, allows investors to act as operators in return for an agreed share of production.
• With no previous oil drilling experience, CCRC has, since last September, sent in around 60 Chinese staff skilled in oilfield development and a Chinese drill rig, aiming to quickly reopen about 100 wells and recover crude output. Production at the two fields, largely mothballed in recent years due to lack of investment and technical expertise, is now running at 12,000 bpd.
• CCRC aims to develop a total of 500 wells and raise output to up to 60,000 bpd by the end of 2026, a mix of light and heavy oil, with light crude to be delivered to state oil company PDVSA and heavier crude destined for China.
• Chinese state oil giant CNPC was among the largest investors in Venezuela's oil sector before U.S. energy sanctions were first imposed on Venezuela in 2019. China was also a big lender to Venezuela. However, since the U.S. imposed energy sanctions, most Chinese state oil firms have stopped lifting oil. Chinese independent refiners, however, continue to buy the oil via traders. Notably, Beijing currently buys more than 90% of Venezuela's total oil exports.

(Source: Reuters)

• Federal Reserve Chair Jerome Powell on Friday signalled a possible interest rate cut at the U.S. central bank's meeting next month, saying that risks to the job market were rising but also noting inflation remained a threat and that a decision wasn't set in stone.
• While his comments were not as explicit as those previewing rate cuts following last year's Jackson Hole conference, investors quickly bumped up bets that the Fed will reduce its policy rate by a quarter of a percentage point at its September 16-17 meeting.
• Several Wall Street analysts alerted clients they were tearing up prior forecasts for the Fed to wait until December to cut rates and now expected reductions totalling half a percentage point by the end of the year, from the current 4.25%-4.50% range.
• Powell's comments put heavy weight on the next monthly employment report, due September 5, and inflation reports due the following week. The most recent job-market report showed monthly payroll gains had plummeted to a monthly average of 35,000 in the July to May period, though the unemployment rate was still a still-low 4.2%.

(Sources: Reuters)

• Sales of new U.S. single-family homes fell in July following a sharp upward revision to the prior month's sales pace, and the overall trend remained consistent with a housing market struggling in an environment of high mortgage rates.
• The report from the Commerce Department on Monday bolstered economists' expectations that the housing market slump could persist through the end of the year. Though mortgage rates have eased on expectations that the Federal Reserve would resume cutting interest rates in September, they continue to outpace wage growth, pushing home ownership beyond the reach of many.
• New home sales dropped 0.6% to a seasonally adjusted annualised rate of 652,000 units last month, the Commerce Department's Census Bureau said. The sales pace for June was upgraded to a rate of 656,000 units from the previously reported pace of 627,000 units.
• Economists polled by Reuters had forecast new home sales, which make up about 14% of U.S. home sales, would rise to a rate of 630,000 units. Sales declined 6.6% in the Midwest and dropped 3.5% in the densely populated South. They were unchanged in the Northeast and increased 11.7% in the West.
• New home sales, which are counted at the signing of a contract, are volatile on a month-to-month basis and subject to big revisions. They dropped 8.2% on a year-over-year basis in July. Government data last week showed single-family homebuilding rebounded in July, though permits for future construction rose marginally.
• Economists expect that residential investment, which includes homebuilding and home sales through broker commissions, to contract for a third straight quarter in Q3 2025.

(Source: Reuters)

• For the three months ended June 30, 2025 (Q3 2025), Tropical Battery Limited (TROPICAL) posted a net loss of J$53.11Mn (vs. profit J$121.35Mn in 2024) mainly due to lower revenues and higher operating expenses.
• Revenues for the period totalled J$1.46Bn, a sharp 23.3% contraction from the outturn a year earlier. Management attributed the falloff to seasonal fluctuations in demand. The transition to a larger warehouse and manufacturing site in California impacted order fulfillment, and certain projects in the renewables segment, which are now expected to close in Q4 2025, also contributed to the weaker topline.
• In line with the falloff in revenues, direct costs fell 27.2% (-J$349.49Mn). Consequently, while gross profit dipped to J$527.70Mn (-15.3%), the gross profit margin improved to 36.1% up from 32.7% in Q3 2024.
• Operating expenses increased by 12.5% to close at J$415.36Mn due to temporary challenges. Net finance cost also rose to J$118.33Mn up for J$112.86Mn as the company increased its reliance on short-term, high-interest debt. Against this backdrop, operating profit plummeted by 55.8% to J$115.08Mn during the quarter.
• Given the operating loss recorded in Q3 and weaker earnings performance since the start of the financial year, Tropical reported a net loss of J$146.57Mn, down 33.4%, for the nine months ended June 30, 2025, compared to J$220.16Mn profits in 2024.
• Despite temporary challenges in the renewables segment, operational costs and high acquisition bridge loan facility interest cost, Management believes the company is poised for a robust Q4. This is underpinned by strategic investments and a precise alignment with global and regional energy transition trends. With over J$500.0Mn in renewable energy projects slated for completion in Jamaica and the Dominican Republic in Q4, the company anticipates consolidated revenues of approximately J$2.0Bn for the quarter, marking a significant rebound from Q3.
• TROPICAL’s stock price declined by 37.9% year-to-date to $1.56 at the close of trading on

(Sources: Tropical Battery Limited & NCBCM Research)