• Despite modest top-line growth, for the six months (6M) ended April 30, 2025, The Limners and Bards Limited’s (LAB) recorded a 58.3% decline in earnings driven primarily by higher direct and indirect costs.
• Revenue for the period rose 3.3% year-over-year (YoY) to J$460.12Mn reflecting a 30.4% surge in revenue during Q1, underpinned by strong performances in the Production and Media segments. However, the 6 months outturn was stymied by a 23.0% decline in Q2 due to seasonal factors and the timing of project deliveries.
• The company also saw an increase in direct cost to $284.75Mn, up from $265.19Mn. As a result, with direct costs outpacing the growth in revenues, gross profit for the 6M period fell by 2.7% YoY to J$175.46Mn. The results were also impacted by the fact that a higher proportion of revenue was derived from its Media segment, which typically carries lower margins relative to the company’s Agency segment.
• Operating expenses increased by 10.3% (+J$14.4Mn) to J$153.5Mn, largely due to strategic investment in talent across content creation, business development, and client services. Management emphasised that while these investments have contributed to higher short-term costs, they are considered essential to scaling the company’s operations and building long-term shareholder value.
• Against this background, net profit for the six-month period of $20.6Mn, a 58.3% decline compared to the same period in the prior year.
• Looking forward, The LAB is focused on executing its “Five-in-25” content strategy, geographic expansion of its Agency and Production services, and integration of AI to drive efficiency and cost reduction. The company also plans to continue monetising its intellectual assets and scaling its proprietary content portfolio.
• As at Monday, the stock closed at J$1.10, reflecting a 13.4% decline year-to-date. It currently trades at a P/E ratio of 17.49x, slightly below the Junior Market 'Other' average of 18.6x.

(Sources: NCBCM Research & LAB Financial Statements)

• Main Event Entertainment Group Limited (MEEG) reported a net loss of J$9.34Mn for the second quarter ended March 30, 2025, down from a net profit of J$20.02Mn in the prior year’s comparable period. The decline came against the backdrop of weaker revenue performance.
• Revenues for the quarter totalled J$306.37Mn were down 26.8% or J$112.21Mn year-over-year. Management attributes the weakness to softer demand in key segments such as Entertainment & Promotions and M-Style Décor. The quarter was also affected by lower client marketing budgets, fewer large-scale productions, and the nonrecurrence of several high-value projects that boosted Q2 2024. However, the company noted that new and returning clients helped cushion the revenue decline.
• In line with the drop in revenues, direct expenses also declined by 36.2% to J$140.55Mn, contributing to a rise in operating profit to J$12.72Mn, more than double the J$5.82Mn posted in the previous quarter. Still, the improvement was insufficient to offset overall earnings pressures, resulting in the quarterly net loss.
• Against the background of weaker Q2 results, for the six-month period, revenue declined to J$891.40Mn, down from J$986.33Mn in the same period last year. Gross profit also declined by 9.0% to J$467.49Mn, despite direct expenses falling to $J423.91Mn from $J472.44Mn. However, the gross profit margin improved by 34bps to 52.44% from 52.10%, reflecting tighter project cost controls and enhanced resource planning.
• Overall, for the first half of the year, MEEG’S net profit amounted to $64.329Mn, a decrease of $55.942Mn or 46.5% from the $120.271Mn earned in the comparative period. This downswing was primarily driven by the reduction in revenue and other operating income, which was not fully offset by cost reductions.
• MEEG continues to pursue strategic diversification, with increased focus on developing proprietary, revenue-generating events to cushion against project-based volatility. Management expects these initiatives to support earnings in the latter half of FY2025.
• As at the close of trading on Monday, the stock closed at J$9.97, reflecting a 14.8% year-to-date decline. The Stock currently trades at a P/B of 3.16x, which is below the Junior Market 'Other' average of 2.30x

(Sources: NCBCM Research & MEEG Financial Statements)

• Trinidad and Tobago is expected to run a balance of payments (BOP) deficit in 2025, as money flowing out of the country due to rising import costs and overseas investments outpaces earnings from exports, according to the Central Bank. Consequently, its overall BOP is anticipated to record a deficit in 2025.
• This performance will stem from a surplus on the current account, owing to a healthy goods balance, coupled with a net outflow on the financial account, driven by increased portfolio and other investments. The varying tariffs implemented by the US can also add upward pressure to import prices.
• Over the fourth quarter of 2024, the goods balance decreased by 37.5% (year-on-year) to US$0.42Mn, when compared to the similar quarter of 2023. Despite a minor improvement in exports, it was insufficient to offset the growth in imports. Total export earnings increased by 3.5% to US$2.43Bn in the fourth quarter of 2024.
• The slightly higher outturn stemmed from an improvement in non-energy exports, which expanded by US$0.12Bn or 30.4% (year-on-year) to US$0.50Bn. However, this positive performance was partially offset by a slight decline in energy exports, which fell by 1.7% year-on-year to US$1.93Bn in the fourth quarter of 2024, compared to the same period in 2023. The reduction in energy exports was attributable to a sizeable 35.4% decline in the gas sub-category on account of lower international gas prices and export volumes.
• The country’s total imports increased by US$0.33Bn to US$2.01Bn during the fourth quarter of 2024 as non-fuel imports picked up by US$0.22Bn or 16% (year-on-year) to US$1.60Bn. Notably, this outturn was driven by an increase in imports of manufactured goods and capital imports.

(Source: Trinidad Express)

• Mexico's central bank should avoid cutting its benchmark interest rate by 50 basis points until inflation resumes a clear downward trajectory, Deputy Governor Jonathan Heath noted, adding his view is in the minority among the five-member board.
• Despite concerns over inflation, Heath believes the central bank will vote at the end of June to lower the key interest rate by that magnitude in what would be its fourth consecutive cut of that size, a decision he said he is sceptical of.
• "I believe it is time to pause and not continue lowering the rate at the magnitude we have done in recent decisions, in order to give ourselves time to better evaluate the evolution of the data," Heath said.
• Debate over any rate cut underscores a key challenge confronting Mexico's central bank as it seeks to ease rising inflation while also stimulating Mexico's sluggish economy.
• Headline inflation in Mexico accelerated to 4.42% in May, exceeding the upper end of the central bank's target range of 3% plus or minus a percentage point. Core inflation, which excludes volatile items like food and oil, rose to 4.06%, its highest level in almost a year.
• Still, Banxico, as the central bank is known, currently forecasts inflation will fall in the third quarter before converging to its target by the third quarter of 2026. In May, Banxico cut its interest rate to 8.5% and reiterated it could make a further reduction depending on inflation. The bank also emphasised that a slowdown in the economy is expected and lowered its GDP growth forecast to 0.1% for 2025 from a previous 0.6% estimate.

(Source: Reuters)

• The dollar index (DXY)¹ has declined to 98-100 after trading at around 110 at the start of the year, with the price action having decoupled from the correlation with 10-year bond yields.
• Several factors led to the weakening of the United States Dollar (USD). First, the sharp rise in equity and bond market volatility associated with the April 2 ‘Liberation Day’ prompted an unwinding of the carry-trade, pressuring the dollar lower. Second, global institutional investors, especially Taiwanese insurers holding long unhedged U.S. assets, unwound or hedged these positions, adding downside pressure to the USD. Third, President Trump’s mid-April criticism of the Fed increased investor unease, dampening appetite for US assets.
• Consequently, Fitch Solutions expects the DXY to trade within 95-100 in the coming months, as these factors continue to weigh on the dollar in the short term. Moreover, the agency anticipates lower growth will lead to roughly 50 basis points (bps) of interest rate cuts, while a widening fiscal deficit, though loosely correlated, may also weaken the dollar.
• However, downside risks are somewhat limited compared to several months ago. The agency sees little chance of the DXY falling significantly below 95, contrasting with other forecasts that target levels of 90 or lower. The decline in the DXY is constrained by the belief that trade-related volatility has peaked, reducing downward pressure.
• That said, while the US dollar’s share of global reserves has decreased over the past decade, this does not indicate a rejection of the USD. Instead, reserve holdings have diversified into a basket of currencies, including the Australian and Canadian dollars, sterling, the Chinese yuan, and the Japanese yen. This shift reflects a more globalised economy where companies, investors, and banks manage assets and liabilities across multiple currencies.
  
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  ¹The U.S. dollar index is a measure of the value of the U.S. dollar relative to a basket of foreign currencies. The U.S. dollar index is currently calculated by factoring in the exchange rates of six foreign currencies, which include the euro (EUR), Japanese yen (JPY), Canadian dollar (CAD), British pound (GBP), Swedish krona (SEK), and Swiss franc (CHF).

(Source: Fitch Connect)

• Following Israel’s massive strikes on Iran’s nuclear facilities and top commanders and nuclear scientists in the early hours of June 13, 2025, Fitch Solutions believes that the conflict could escalate in the near term. Israel is likely to conduct further strikes over the coming days, and Iran will seek to respond forcefully.
• Notably, Tehran’s (Tehra - Capital of Iran) retaliation is expected to be more forceful than what was previously witnessed in the tit-for-tat strikes with Israel on two occasions in 2024, but the full extent of the response will depend on the regime’s appetite to escalate as well as its ability to do so.
• The deaths of the armed forces chief of staff and commander of the Islamic Revolutionary Guard Corps could complicate Iran’s response. As such, Fitch sees the middle scenario in the infographic as the most likely scenario.
• Iran will also need to decide whether to strike at United States (U.S.) interests, most notably bases, in the Middle East. Although the U.S. is not directly involved in Israel’s attacks, Tehran could still hold Washington responsible. That said, Iran is expected to refrain from attacking U.S. military assets in the region because the Trump administration would likely respond very aggressively, focusing on strategic military and nuclear targets in Iran, working alongside Israel. This could lead to a full-scale war that could weaken the regime.
• If the conflict escalates significantly, Iran could also attempt to close the Strait of Hormuz, through which about 20-30% of all oil and LNG exports pass. However, the U.S. would step up its intervention against Iran, despite Trump’s aversion to becoming dragged into another protracted conflict in the Middle East.

(Source: Fitch Connect)

• Seprod Ltd. (Seprod) announced that its takeover bid for AS Bryden & Sons Holdings (ASBH) Ltd was oversubscribed, as shareholders tendered approximately 465.48Mn shares, surpassing the 447.49Mn the company initially sought to acquire.
• The ordinary shares of ASBH that have been tendered are subject to verification by Republic Wealth Management Limited (RWML)
• Given the oversubscription, Seprod will accept the shares on a pro-rata basis of approximately 96.1%. Seprod currently owns 50.1% of ASBH and will own 80.0% of ASBH’s outstanding shares following the acceptance.
• The stock prices of Seprod and ASBH have declined by 12.2% and 13.4% since the start of the year, respectively, closing at $76.56 and $26.00 on June 12, 2025. Both stocks currently trade above the Main Market Distribution & Manufacturing sector average P/E of 15.5x, with P/E ratios of 25.4x and 28.5x, respectively.

(Sources: Seprod & NCBCM Research)

• Jamaica and Barbados are no longer considered high-risk jurisdictions for money laundering and terrorist financing by the European Union, following a significant update to the EU’s official list of countries requiring enhanced financial scrutiny.
• The European Commission confirmed that both Caribbean nations, along with Gibraltar, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates, have been delisted after demonstrating substantial progress in strengthening their anti-money laundering and counter-terrorism financing (AML/CFT) frameworks. The Commission concludes that these countries have addressed the strategic deficiencies identified in their AML/CFT regimes. Therefore, the Commission deemed it appropriate to remove the listed countries.
• The list is part of the EU’s broader effort to safeguard its financial system. Under the EU Anti-Money Laundering Directive, entities operating within the bloc are required to exercise increased vigilance when dealing with countries on the high-risk list. The removal of Jamaica and Barbados is expected to reduce friction in financial transactions between these countries and EU-based institutions.
• The Commission’s decision follows a “thorough technical assessment” that considered criteria set by the Financial Action Task Force (FATF), the global watchdog on money laundering. The review included bilateral discussions, on-site visits, and analysis of reforms implemented by the delisted countries.
• According to the Commission, both Jamaica and Barbados met the requirements laid out in action plans previously agreed upon with the FATF. No other Caribbean nation was delisted.

(Source: Caribbean National Weekly)

• After a series of shocks over the past five years, the global economy seemed to have stabilised, at steady but underwhelming rates, as compared with recent experience, according to the International Monetary Fund (IMF). However, the landscape has now changed, with major policy shifts signalling a reset of the global macroeconomic environment.
• In early April, the U.S. effective tariff rate jumped to levels not seen in a century. However, while trade talks continue and there’s been a scaling back of some tariffs, trade policy uncertainty remains off the charts.
• In the IMF’s latest World Economic Outlook, the agency projected tepid growth in the Caribbean region overall, even before accounting for the U.S. trade policy announcements. Stronger performance in some countries, such as Jamaica and Trinidad and Tobago, was offset by slower growth in others. Furthermore, in several countries, crime continues to weigh on growth prospects. Particularly in Haiti, where the security situation hampers efforts to sustain economic activity, implement reforms, and attract aid and foreign direct investment.
• On top of that, the IMF now estimates that the April tariff announcement and its global spillovers would lower Caribbean regional growth by at least 0.2 percentage points on average. But the impact varies across countries.
• In tourism-dependent economies, where growth is closely tied to U.S. economic activity, the impact will mainly depend on the size of the U.S. tourist base. While in oil-exporting countries, lower commodity prices and higher volatility are the main channels of transmission. Lower global growth means lower demand for these commodities, which adversely impacts the economies of commodity-exporting countries.
• Slower growth, while a relatively recent phenomenon from a global perspective, is, unfortunately, not new to the Caribbean. Declining growth trends in the Caribbean region have loomed over the longer horizon, according to the IMF. This presents the Caribbean with an aggravated challenge, to reverse the trend of slower growth at a time when global growth is also declining. Notwithstanding, there are exceptions to the regional trend. In particular, Guyana’s economy has grown rapidly over the past two decades, progressing from low-middle-income to high-income status. Growth accelerated to over 45% on average in the past three years, making Guyana the fastest-growing economy in the world.
• Addressing the Caribbean growth challenge requires systematic and comprehensive policies to strategically improve the factors that contribute to growth potential. The Caribbean’s productivity growth has declined to almost zero and is seen as the root of the Caribbean’s growth challenge. In addition to productivity growth, physical and human capital development need to be accelerated, which, according to the IMF, will require as much effort as the effort put into the macro stability reforms successfully undertaken in Jamaica, Barbados and Suriname.

(Source: IMF)

• The Caribbean Development Bank (CDB), on June 10, 2025, signed a memorandum of understanding (MoU) with the Development Bank of Latin America and the Caribbean (CAF) aimed at boosting cooperation in key sectors that are essential to accelerating sustainable development for the Caribbean region.
• The MoU underscores the two institutions' shared commitment to sustainable growth, resilience, and inclusive development across Caribbean Community (CARICOM) countries. The agreement sets the stage for deeper collaboration in areas critical to Caribbean well-being, including food, water and energy security, resilient infrastructure, climate action, private sector development, and digitalisation. It also enables the banks to explore joint operations, parallel and co-financing, technical assistance, and knowledge sharing.
• With this agreement, both institutions can leverage their comparative strengths to respond more quickly and flexibly to regional development needs. This partnership will directly support national and regional priorities, as well as the United Nations Sustainable Development Goals (SDGs).
• The joint agenda also includes mechanisms for institutional strengthening, staff exchanges, post-disaster recovery support, and customised financing instruments for micro, small, and medium enterprises.

(Source: Trinidad Express Newspaper)