• Job openings in the U.S. fell to a 2.5-year low in October, signalling that higher interest rates were impacting demand for workers and fuelling expectations that the Federal Reserve's tightening cycle might be ending.
• The Job Openings and Labour Turnover Survey (JOLTS) revealed a ratio of 1.34 job vacancies for every unemployed person in October, the lowest since August 2021. However, fewer resignations could help ease wage inflation over time.
• Of note, financial markets anticipate a rate cut in response to larger-than-expected declines in unfilled jobs, coupled with recent data showing a subsiding inflation trend. Some analysts project a rate cut as early as the second quarter of 2024.
• Job openings declined across sectors, with significant drops in healthcare and social assistance, finance and insurance, and real estate. However, the information sector saw an increase in job openings.
• Hiring slipped, especially in accommodation and food services, a sector that had driven job growth. Resignations also decreased, suggesting slower wage growth and a potential easing of price pressures in the economy.
• Despite the gradual easing of the labour market, layoffs remain relatively low. The Institute for Supply Management (ISM) reported growth in services employment, with some industries expressing positive expectations while others cited challenges, such as increasing prices in public administration.

(Source: Reuters)

• The Kremlin confirmed that the OPEC+ group's agreed oil production cuts will take time to show results, citing inertia in the oil market.
• President Putin is set to visit the United Arab Emirates and Saudi Arabia. Putin is also scheduled to host Iranian President Ebrahim Raisi in Moscow. Discussions on oil market cooperation within the OPEC+ format are anticipated during Putin's Gulf trip. Putin will also hold talks with Saudi Arabia's Crown Prince Mohammed bin Salman.
• OPEC+ recently announced voluntary supply cuts of approximately 2.2 million barrels per day, including extensions of existing cuts by Saudi Arabia and Russia. The oil market responded sceptically to these cuts, with a 2% fall in prices last week.
• Putin's Gulf visit aims to strengthen ties and alliances. Besides energy discussions, topics such as Russia's military operation in Ukraine will be on the agenda. Putin seeks to build global alliances beyond Western countries and address regional issues, including the war in Gaza during talks with Iranian President Raisi.

(Source: Reuters)

• Jamaica’s Minister of Finance, Dr Nigel Clarke, has officially entered into a financial advisory services agreement with the International Finance Corporation (IFC), the private sector subsidiary of the World Bank. This groundbreaking agreement is a pivotal step in developing and structuring the National Broadband Project, which is set to be established as a dynamic public-private partnership (PPP).
• This significant milestone was achieved during a momentous signing ceremony on December 4^th, within the bustling backdrop of the 28th session of the United Nations Conference of the Parties (COP 28) held in Dubai. During the signing ceremony, Dr Clarke emphasised the Jamaican government’s unwavering commitment to ensuring equitable access to affordable, dependable, high-speed broadband services for all its citizens.
• He echoed the sentiments expressed by Prime Minister Andrew Holness, underscoring the critical role that accessible broadband plays in transforming the nation into a digital society poised for heightened productivity and accelerated growth.
• Dr Clarke further elucidated, stating, “This is an essential building block of the transformation to a digital society which, in turn, promises to unleash greater productivity and faster growth. However, this vision cannot be affordably realised if all broadband providers have to reach all homes entirely on their own proprietary networks.”
• Highlighting the Jamaican government’s proactive stance, the statement issued during the signing ceremony disclosed plans to fortify the nation’s broadband infrastructure through GovNet. GovNet is envisioned as a secure network platform that will serve all ministries, departments, and agencies.

(Source: Caribbean National Weekly)

• Minister of Tourism, Hon. Edmund Bartlett, on Thursday, announced that a record 1.05Mn airline seats have been secured from nearly six thousand flights coming into Jamaica out of the United States during the upcoming winter season.
• With just over two weeks for winter travellers to start their vacations, in anticipation of a record winter tourist season, Minister Bartlett says: “This surge in airlift represents an increase of 13% over winter 2022/2023, where we recorded a whopping 923,000 airline seats.”
• “To date, ten airlines have some 5,914 flights booked out of key US gateways to the Sangster International Airport in Montego Bay and Norman Manley International Airport in Kingston between January and April 2024, adding to the flurry expected over the 2023 Christmas holiday period,” Minister Bartlett explained.
• “These numbers reflect the ongoing effort of the Ministry of Tourism, through the Jamaica Tourist Board (JTB) as our marketing arm, working alongside our international and local partners in the travel and hospitality sectors, to ensure continuous growth in our tourism industry,” says Minister Bartlett.
• He also disclosed that “already for the period, January to November 29, 2023, preliminary figures indicate that some 2.5Mn stopover visitors have graced our shores, accounting for an 18% increase over the same period in 2022 and a 10% increase over the same period in pre-pandemic 2019.”
• “If we continue on this impressive growth trajectory, we will be on track to meet our new projections of 4 million visitors and foreign exchange earnings of US$4.1Bn by year-end,” asserts Minister Bartlett.

(Source: JIS)

• Voters in Venezuela rejected the International Court of Justice's (ICJ) jurisdiction over the country's territorial dispute with Guyana. Instead, they backed the creation of a new state in the potential oil-rich Esequibo region in a Sunday referendum.
• Last week, the court barred Venezuela from taking any action that would change the status quo in the area, which is the subject of an active case before the ICJ. However, President Nicolas Maduro's government went ahead with a five-question "consultative" referendum.
• All questions passed with more than 95% approval, according to electoral authority president Elvis Amoroso, who said at least 10.5 million votes were cast for 'yes' but did not confirm the number of voters.
• Some political and security analysts have called the referendum a show of strength by Maduro and a test of support for his government ahead of a planned 2024 presidential election. The court said in April it had jurisdiction, though a final ruling on the matter could be years away.
• The Sunday vote has caused anxiety in Guyana, with the government urging citizens to keep calm. Guyana's President Irfaan Ali participated in a patriotic rally on Sunday, joining hundreds of flag-waving supporters. He has said the ICJ ruling on Friday prohibits Venezuela from "annexing or trespassing upon Guyanese territory".
• On Wednesday, Brazil said it had intensified "defensive actions" along its northern border amid the territorial dispute.

(Source: Reuters)

• Panama is eyeing a sharp cut to its forecast for 2024 economic growth after a court ruling prompted the government to order the closure of Canadian miner First Quantum's lucrative copper mine.
• Gross domestic product (GDP) growth might be 1-2% next year, down from a previous estimate of 5%, Hernan Arboleda, director of public policies at the economy and finance ministry, said in an interview on Friday. In contrast, Fitch Solutions forecasts 5.5% growth for Panama in 2023 and 3.0% in 2024.
• President Laurentino Cortizo announced last week the government will move to shut First Quantum's Cobre Panama mine, which accounts for some 5% of the country's GDP, after the Supreme Court ruled that the contract was unconstitutional.
• Panamanians have protested vehemently against the mine since October, arguing the contract was too generous, and First Quantum has since lost over half of its market capitalization.
• First Quantum said on Friday it initiated international arbitration against Panama. Some experts calculate Panama would have to pay at least $50 billion if it loses the case, which is equivalent to nearly 70% of GDP.
• Cortizo's administration is reaching out to international rating agencies to assure them that Panama still has a sound legal framework that allows investors to do business. Panama recently enacted a law banning all new mining concessions and expansions. Arboleda said the country still has other attractive investment opportunities but did not give specific examples.

(Sources: Reuters & Fitch Solutions)

• U.S. Federal Reserve officials seem poised to conclude the year with interest rate hikes in the past. Despite concerns about inflation above the 2% target, policymakers express confidence that the existing federal funds rate range is curbing economic activity and lowering inflation.
• While the focus now is on maintaining a plateau or considering another hike, the challenge arises in signalling a potential shift to rate cuts. This decision could be influenced by factors like presidential election-year politics, financial market conditions, and the desire to prevent a rise in the unemployment rate.
• The Fed's final meeting of the year in December will involve discussions on the future path of interest rates. The central bank faces the delicate task of conveying a potential end to rate hikes without signalling a commitment to imminent rate cuts, navigating through the complexities of projections and public perception.
• Despite a historically hawkish tone, recent statements from Fed officials suggest a more cautious approach. The "dot plot" projections may indicate a halt to rate hikes and potentially forecast cuts, with attention shifting to the possibility of a rate reduction in 2024. Given the economic context and the upcoming presidential election, the challenge lies in effectively communicating this shift.

(Source: Reuters)

• Britain's manufacturing sector demonstrated signs of potential recovery, as indicated by the S&P Global/CIPS manufacturing Purchasing Managers' Index (PMI) rising to 47.2 in November from 44.8 in October.
• Despite the improvement, companies in the manufacturing sector remained cautious. Ongoing market uncertainty and the need to control costs led to measures such as job losses, stock depletion, and reduced purchasing.
• The severity of the downturn in the manufacturing sector eased, as reflected in improved readings for output and new orders, based on the PMI data. However, while input costs decreased, manufacturers raised their selling prices for the second time in six months, albeit marginally.
• This move aimed to repair profit margins, and it comes as the Bank of England monitors price pressures in the economy, having maintained interest rates at a 15-year high in September and November. The central bank has indicated a reluctance to consider rate cuts until there is sufficient easing in underlying inflation.

(Source: Reuters)

• Output prices for producers in the Mining and Quarrying industry increased by 0.1% for October 2023, while the Manufacturing industry declined by 0.3% as released by the Statistical Institute of Jamaica (STATIN).
• The increase in the index for the Mining and Quarrying industry was influenced by a 3.1% increase in the index for the major group ‘Other Mining & Quarrying’. However, there was a negligible decline in the index for the major group ‘Bauxite Mining & Alumina Processing’, which tempered the industry’s movement.
• For the Manufacturing industry, there was a decline in its index of 0.3%. The decrease in the industry’s index was due mainly to a fall of 2.5% in the index for the major group ‘Refined Petroleum Products’. The overall movement was tempered by an increase of 1.8% in the index for the ‘Chemicals and Chemical Products’.
• For the period October 2022 – October 2023, the index for the Mining and Quarrying industry increased by 5.1%. This resulted from a 5.0% rise in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• The point-to-point index for the Manufacturing industry increased by 2.6%, due primarily to an increase of 2.3% in the index for the major groups ‘Food, Beverages & Tobacco’. Also impacting the industry was the 5.3% increase in the index for the major group ‘Refined Petroleum Products’. However, these increases were moderated by a decline of 4.3% in the index for the major group ‘Fabricated Metal Products excluding. Machinery and Equipment’.
• The Producer Price Index (PPI) is a significant economic indicator that tracks the average fluctuation in selling prices that domestic producers of goods and services experience over time. The decision this week by OPEC+ to curtail oil supply could potentially further escalate producer prices, despite oil prices slipping immediately. This is because a reduction in oil supply could drive up costs related to transportation and electricity.

(Source: STATIN)

• Peru's mining sector is keeping the economy from sinking deeper into repression, Economy Minister Alex Contreras said on Tuesday, adding that progress kick-starting projects was a priority in the near term.
• Peru has been preparing to launch a package of economic stimulus measures. Contreras said the first three measures, out of more than two dozen aimed at attracting mining investment and boosting production, would be published soon.
• Peru, the world's No. 2 copper producer, fell into a recession this year due to the El Nino weather phenomenon, lower private investment, and lingering effects from anti-government protests in late 2022 and early this year.
• Contreras said the mining nation was aiming to consolidate an industry "hub" in Peru's south, highlighting existing projects such as copper mines in Las Bambas, Antapaccay and Cerro Verde. Peru is betting on a boost from public-private partnerships, eyeing $7.98Bn in the partnerships next year, Contreras said. "In 2024, we want to at least triple the amount awarded to projects by public-private partnerships from this year."
• Contreras highlighted a port "hub" project "to make Peru the international trade centre of South America." A mega port project outside is set to open next year, but Peru is still working "against the clock" to make sure supporting infrastructure is ready in time.
• Contreras also said the Ancon industrial park, developed by the state near the port, would be a guinea pig for the special economic zones set to be proposed to Congress soon. "These will be special economic zones administrated by private organizations, on either public or private land," said Contreras, underscoring expectations for added tax revenues and greater investment in exports.

(Source: Reuters)