• Sygnus Credit Investments Limited (SCI) advises that it has extended the closing date of the Preference Share Offer to Friday, December 15, 2023; however, SCI has the option to close the Offer at an earlier date.
• The extension allows investors who have expressed an interest in the offer to complete their application for the Preference Shares.
• SCI also advises that the Offer is oversubscribed and that the Company is seeking to upsize the Offer to take advantage of all subscriptions. The Company is awaiting final approval to facilitate the upsizing of the Offer.

(Source: JSE)

• Jamaica has achieved remarkable progress in enhancing its anti-money laundering measures, aligning itself with international standards, and steering clear of potential blacklisting. In a recent update, Jamaica demonstrated its commitment by being “compliant or largely compliant” with an impressive 37 out of 40 major recommendations vital to fortifying its anti-money laundering framework.
• This development was unveiled during the Caribbean Action Task Force (CFATF) meeting held in Aruba. The meeting also saw the election of Jamaica’s Minister of Finance, Dr Nigel Clarke, as the deputy chairman—a testament to the nation’s dedication to the cause. Dr Clarke, who headed Jamaica’s delegation at the event, emphasised that this achievement resulted from a highly productive collaboration between various government ministries and agencies facilitated by the National Anti-Money Laundering Committee.
• Just six years ago, Jamaica grappled with a much bleaker scenario, complying with a mere 17 of the recommendations set forth by the Financial Action Task Force (FATF). This transformation showcases the nation’s unwavering commitment to strengthening its financial security measures.
• Jamaica’s continued non-compliance with international standards could have grave consequences, including being labelled a ‘high-risk jurisdiction.’ This designation would expose the country to economic sanctions and a potentially tarnished reputation on the global stage.
• The FATF has issued a stern call to Jamaica, urging it to demonstrate significant progress in implementing its action plan by February 2024.  Failure to do so could prompt the FATF to consider further measures, such as encouraging its member nations to exercise enhanced due diligence in their business dealings with Jamaica. This heightened scrutiny is a means to ensure that strategic deficiencies are promptly addressed.
• Jamaica remains optimistic about its standing in the international financial community. Minister Clarke has expressed confidence that the worst-case scenario of blacklisting is unlikely, given that the nation has diligently fulfilled all legislative requirements. This should help to maintain the country reputation and international standing, which bodes well for obtaining credit and foreign direct investment (FDI).

(Source: Caribbean National Weekly)

• The Central Bank of Bahamas reported that stopover arrivals are above pre-COVID highs by more than 30% in September, with the economy forecasting to hold its “growth momentum” into 2024.
• The banking regulator, unveiling its report on November’s monthly economic developments, praised “aggressive marketing” by The Bahamas for sustaining the country’s tourism rebound, although it noted that economic growth will slow in line with its traditional and medium-term “potential”.
• Still, the Central Bank confirmed that The Bahamas had matched its pre-COVID full-year arrivals record from 2019 in the first ten months of this year.
• “On a year-to-date basis, total arrivals strengthened to 7.2Mn visitors’ vis-à-vis 4.8Mn in the corresponding 2022 period,” it said. “Contributing to this outcome, air arrivals increased to 1.3Mn passengers from 1.1Mn in the prior year, reflecting gains in all major markets. Likewise, sea arrivals accelerated to 5.9Mn from 3.7Mn visitors the previous year.
• Focusing on The Bahamas’ economic outlook, the Central Bank said: “The domestic economy is anticipated to maintain its growth momentum in 2023, supported by robust gains in tourism output. However, the pace of expansion is projected to slow as the economy converges closer to its medium-term growth potential.”

(Source: The Tribune)

• In what can only be described as an act of aggression by Venezuela's President Nicholas Maduro, on Tuesday night he declared a new map of Venezuela incorporating the Essequibo Region of Guyana. This occurred after the nation's Sunday referendum, in which his government declared the annexation of Essequibo as a part of Venezuela a success.
• In a Facebook post Maduro declared, "I ordered to immediately publish and take all schools, lyceums, municipal councils, public establishments, universities and in all homes of the country the new map of Venezuela with our Guayana Esequiba. This is our believed map!"
• Following Maduro's social media proclamation, Dr. Irfaan Ali, the President of Guyana, addressed the Guyanese people assuring them that he and his administration will resolutely protect the country's territorial integrity and sovereignty.
• "I address you on an unsettling development in relation to the unlawful claim by Venezuela to Guyana’s Essequibo Region, which constitutes more than two-thirds of Guyana’s national territory. As I made clear from the date the referendum was first announced, this is a direct threat to Guyana’s territorial integrity, sovereignty and political independence, and in violation of fundamental principles of international law enshrined in the UN and OAS Charters," said Ali
• Ali confirmed that Guyana would be bringing the matter to the United Nations Security Council for appropriate action to be taken by that body. He added," Further, we have engaged CARICOM, the OAS, the Commonwealth and many of our bilateral partners including the United States of America, Brazil, the United Kingdom and France.
• The Guyana Defence Force is on full alert and has engaged its military counterparts including the US Southern Command. “By defying the Court, Venezuela has rejected international law, the rule of law generally, fundamental justice and morality, and the preservation of international peace and security. They have literally declared themselves an outlaw nation," Ali said.

(Source: Trinidad Express Newspaper)

• In Q3, U.S. unit labour costs declined at an annualised rate of 1.2%, signalling a slowdown in services inflation. This revision from the previously reported 0.8% decline supports the Federal Reserve's efforts to combat inflation.
• Nonfarm productivity increased at a rate of 5.2% in the last quarter, the fastest pace since Q3 2020. This, coupled with a moderation in wage growth in November, brightens the inflation outlook and strengthens expectations that the Fed might shift from tightening to cutting rates in Q1 2024.
• The Federal Reserve, having raised interest rates by 525 basis points to the current range of 5.25%-5.50% since March 2022, is expected to leave interest rates unchanged. The data on labour costs and productivity growth supports the Fed's strategy to bring inflation back to its 2% target.
• The labour market is cooling, with reports showing a drop in job openings, a decline in wage pressures, and a potential slowdown in economic activity in Q4. This cooling and other economic indicators reduce the risk of inflationary pressures, making it easier for the Fed to consider rate cuts in 2024.

(Source: Reuters)

• Increased global sales of electric vehicles are significantly reducing the demand for fossil fuels, particularly in the transportation sector. The International Energy Agency (IEA) predicts a peak in global oil consumption by the end of the decade, with the shift to electrification playing a pivotal role in decreasing oil demand.
• Government policies supporting the transition to electric vehicles, such as subsidies and efficiency standards, have accelerated the adoption of EVs. The U.S. Inflation Reduction Act's $7,500 tax credit and similar measures worldwide aim to offset the higher initial costs of electric vehicles.
• While EV sales are increasing, challenges include the need for even higher adoption rates to meet climate targets outlined in the Paris Agreement.
• Economic factors, such as rising labour costs and interest rates, may impact the acceleration of EV production, raising uncertainties about achieving higher market shares. Disparities exist in EV affordability and infrastructure development worldwide, with China leading in both areas due to government subsidies and a vast number of charging stations.
• In contrast, the United States faces challenges with higher EV prices and a lower number of public charging stations compared to China and Europe. Despite these challenges, EVs are expected to comprise a significant portion of new car registrations in the U.S. by 2030.

(Source: Reuters)

• GraceKennedy Limited (GK) has advised that the company repurchased 22,000 GraceKennedy shares under the ‘GraceKennedy Share Repurchase Programme’ between November 20 and 21.
• In a note to the Jamaica Stock Exchange (JSE), GK advised that the purpose of the purchase was to enhance shareholder value and that the maximum intended repurchase is up to 1% of the shares in issue (approximately 9,950,000 shares). The actual repurchased as at November 21 is a total of 22,000 shares.
• The company also noted that the source of funding of the purchase was the company’s cash flows, and the shares were purchased on the open market via its brokers.
• When a company buys back its shares from the stock market, it reduces the number of outstanding shares and increases the value of the remaining shares. Additionally, earnings per share (EPS) and return on equity (ROE) tend to rise, which may attract more investors, and given the increased scarcity of shares, this could drive up demand and potentially lead to an increase in the share price.

(Source: JSE)

• Jamaica's Artificial Intelligence Task Force has been officially established. Chairman of the task force, Christopher Reckord, says the group was officially formalised in August and has met a few times since then. Speaking at the Tech Beach retreat last Friday, Mr. Reckord highlighted that the main areas being considered so far include data privacy and security and the ethical use of artificial intelligence.
• The key function of the task force is to conduct Artificial Intelligence research and provide an evidence-based foundation for the development of a National AI Policy.
• Earlier in the year, Minister responsible for Skills and Digital Transformation, Senator Dr. Dana Morris Dixon, shared plans for the establishment of the task force. “The Task Force’s research will comprehensively analyse the current state of AI in Jamaica, including research and development activities, adoption levels, and challenges faced by various sectors of the economy,” Senator Morris Dixon said.
• She noted that the Task Force is also expected to identify opportunities for adopting AI technologies, potential economic growth and development areas, and potential social impacts.
• “We must understand the risks and implement the necessary safeguards to allow us to respond to the rapid rate of technology change and to, ultimately, scale with confidence,” the Minister emphasised.

(Sources: RJR News & JIS)

• According to a report from the Economic Commission for Latin America and the Caribbean (ECLAC), Latin America and the Caribbean need to rapidly boost spending to up to 4.9% of gross domestic product (GDP) annually by 2030 to meet their climate targets.
• The ECLAC report presented at Dubai's COP28 summit said the region must spend between 3.7% to 4.9% of GDP annually, up from just 0.5% in 2020, amounting to total investments of $2.1Tn to $2.8Tn by 2030.
• This implies the "availability of substantial but not unattainable amounts - and the time to act is now," ECLAC Executive Secretary Jose Manuel Salazar-Xirinachs said.
• Climate mitigation - mostly projects around transportation as well as energy, infrastructure, and deforestation - would take up the lion's share of spending, ECLAC said, while a remaining third would need to go toward adaptation methods. These include early warning systems, combating poverty, protecting coasts, and sanitizing water.
• Climate change - excluding the impacts of extreme phenomena - could strip 10% off labour productivity in some countries, it added, cutting potential for economic growth.
• The study pointed to extreme weather already plaguing parts of the region and devastating some agricultural sectors, such as core farmlands across Uruguay, Brazil, and Argentina.

(Source: Reuters)

• A dramatic and deadly attack on a gold mine in Peru last Saturday has thrown a spotlight on illegal miners and criminal gangs targeting mines, which in recent years has left scores dead and cost billions of dollars in losses, according to industry and government officials.
• Nine workers were killed and ten others gravely injured in the latest attack, where men armed with explosives raided and took hostages at a mine belonging to Poderosa, one of Peru's top gold producers. The government blamed illegal miners and criminal groups.
• The attack has highlighted a growing risk for miners in the Andean nation, the world's no. 2 copper producer and an important source of gold and silver. "Security is now one of the main costs," Poderosa corporate affairs manager Pablo de la Flor told Reuters after the attack. "Illegal miners and criminal groups represent a terrible alliance for the sector."
• The impact is showing up on balance sheets, a headache for firms and Peru's government as it battles to dig out of a recession, with mining the country's main economic engine.
• A recent study by the local industry chamber the National Society of Mining, Petroleum and Energy of Peru, said illegal gold mining is responsible for about $6Bn in annual losses, some 2.5% of domestic GDP.
• Illegal mining in Peru moves more money than drug trafficking, between $3Bn and $4Bn per year, according to government data. De la Flor says illegal mining has grown thanks to a program designed to formalize artisanal miners, called REINFO (Registro Integral de Formalización Minera), which provides temporary licenses to small mines.
• Peru's Ministry of Energy and Mining did not immediately respond to a request for comment on the issue. On Sunday night, the ministry released a statement saying it would look at REINFO to identify those taking advantage of the program.

(Source: Reuters)