• The United States (U.S.) trade deficit widened sharply in May as imports of capital goods surged to a record high, suggesting that trade remained a drag on gross domestic product in the second quarter. Efforts by businesses to avoid shortages and higher prices related to the conflict in the Middle East, as well as potential new tariffs, also contributed to the large trade shortfall, with the report ‌from the Commerce Department on Tuesday, July 7, 2026, showing overall imports rising to a 14-month high. The U.S.-Israeli war with Iran also boosted oil exports, with shipments of petroleum hitting a record high.
• Though imports will likely subtract from economic growth, their persistent strength is also a sign of resilient domestic demand. Imports are partly being driven by an artificial intelligence investment boom. The deficit swelled to a 14-month high despite President Donald Trump's tariffs on imports.
• The trade gap jumped 42.2% to $77.6Bn, the highest level since March 2025, the Commerce Department's Bureau of Economic Analysis and Census Bureau said. Economists polled by Reuters had forecast the deficit would be $78.5Bn. Part of the surge in the deficit reflected higher prices.
• Imports also increased 3.3% to $395.3Bn, ⁠the highest level since March 2025, also likely because of a strong dollar. Goods imports surged 4.0% to $317.0Bn, the highest level since April 2025, when they soared amid front-running ahead of the imposition of Trump's tariffs. Although the U.S. Supreme Court struck down the tariffs earlier this year, the White House responded with a global duty. New "Section 301" duties have been proposed. Trump has defended the tariffs as necessary to address the trade deficit and revive industries.
• Capital goods imports soared $1.1Bn to a record high $128.0Bn, lifted by large increases in imports of computer accessories and semiconductors. Imports of computers, however, dropped $3.4Bn. Businesses are spending heavily on AI, whose buildup is heavily reliant on imports. Higher capital goods imports typically imply strong business investment, but economists said rising prices made it difficult to estimate the impact. When adjusted for inflation, capital goods imports fell to $108.7Bn from $110.5Bn in April.
• The U.S. continued to run goods trade deficits with a range of countries, including Vietnam, Mexico, Taiwan, China, Canada, Germany, South Korea, India and Ireland, despite Trump's tariffs. The U.S. has declined to extend the U.S.-Mexico-Canada Agreement without changes, and ⁠economists said swelling ​deficits would make the negotiations tougher. But goods trade surpluses were posted with a number of countries, among them the Netherlands, Hong Kong, Australia, the United Kingdom and Brazil.

(Sources: Reuters & Yahoo News)

• Mailpac Group Limited (MAILPAC) opened its 2026 financial year on a positive footing, with Q1 2026 earnings rising by 6.0% year-over-year (YoY) to J$64.60Mn. Revenue growth and improved operational efficiency outweighed higher finance costs and a heftier tax bill.
• Revenues jumped 10.3% to $790.15Mn, buoyed by continued growth in customer activity across the company's e-commerce logistics offerings.
• Cost of sales lagged revenue growth, up 4.5% to J$342.46Mn. Consequently, gross profits climbed 15.2% to J$447.69Mn, and gross margins widened to 56.7% from 54.3%. This expansion was driven by ongoing improvements in efficiency. Operating expenses (OPEX), however, outpaced revenues, rising 15.2% to J$305.42Mn. The increase was mainly due to higher administrative and general expenses. Despite higher OPEX, operating profits improved 15.1% to J$142.27Mn, and operating margins inched up from 17.3% to 18.0%. Further down, finance and policy costs climbed 13.7% to J$63.13Mn and taxation charges nearly doubled to J$14.87Mn, tempering the flow-through to the bottom line.
• With positive results for Q1, the Board remains confident in Mailpac's outlook for 2026. They noted consumer demand for convenient logistics solutions continues to grow, and the Company is well positioned to evolve with its customers. Additionally, the company remains focused on expanding service capabilities and delivering sustainable value to all stakeholders. To that end, it continued to invest across its logistics network, technology platforms, and operating infrastructure during the quarter to support future capacity and service delivery.
• Mailpac’s stock price has increased by 9.9% since the start of the year to close at $2.66 on Monday, July 6, 2026. At this level, the stock trades at a price-to-earnings (P/E) ratio of 26.6x, which is above the Junior Market Distribution Sector average of 17.5x.

(Sources: Mailpac Group Financial Statements & NCBCM Research)

• Following a delay in submission, which led to the JSE suspending its shares on July 1^st, Atlantic Hardware (AHPC) has now released its audited financials for the year ending December 2025 (FY2025). Earnings fell 23.9% year-over-year to J$68.87Mn, as a sharp rise in operating expenses and higher depreciation charges eroded the benefit of double-digit revenue growth.
• Revenues climbed 13.7% to J$1.82Bn, while its cost of sales rose at a slower pace of 11.2% to J$1.26Bn. Consequently, gross profits grew 19.6% to J$551.78Mn, while gross margins widened to 30.4% from 28.9%.
• However, selling, general and administrative expenses far outpaced revenue growth, rising sharply (+59.2%) to J$340.17Mn. Consequently, operating profits fell 13.3% to J$229.49Mn, and operating margins narrowed from 16.6% to 12.6%. Depreciation and amortisation expenses rose more than three folds to J$59.72Mn, primarily driven by a sharp increase in depreciation from right-of-use assets (leased land and buildings), which jumped to J$46.32Mn from J$7.19Mn following lease modifications. This outweighed a J$27.80Mn gain on the sale of fixed assets and a 12.1% reduction in interest expense to J$126.90Mn. As a result, pre-tax profits were down 36.5% to J$74.91Mn.
• However, AHPC bounced back in the first quarter of (Q1 2026). Profits tripled year-over-year to J$74.25Mn. Post-Hurricane Melissa demand and operational scaling meant revenues surged 49.5% to J$687.1Mn. The company also benefited from a 46.7% drop in finance costs following substantial debt repayments funded by its Junior Market IPO and the accompanying 100% tax break, which should last for the next 5 years.
• Looking ahead, its new agro-distribution segment offers an opportunity for revenue diversification and demand for wholesale building materials should help to support the company’s performance. This pipeline is expected to be underpinned by the Government of Jamaica's multi-year post-Hurricane Melissa reconstruction and unspent disaster donations still in the early stages of deployment.
• With its earnings now released, the JSE has resumed the trading of AHPC shares. AHPC’s stock price has increased by 1.3% since the start of the year to close at $1.52 on Monday, July 6, 2026. At this level, the stock trades at a price-to-earnings (P/E) ratio of 30.4x, which is above the Junior Market Distribution Sector average of 24.1x.

(Sources: Atlantic Hardware & Plumbing Financial Statements & NCBCM Research)

• The Ambassador of the People’s Republic of China to the Dominican Republic, Chen Luning, stated that one of the main priorities of his diplomatic mission is to promote the establishment of a direct flight between the two countries to strengthen tourism, trade, and cultural exchange.
• According to the ambassador, his team is actively working to make the initiative a reality, noting that the Dominican Republic has significant potential to attract visitors from the Chinese market, which he described as one of the world's most important outbound tourism markets.
• China has a population of approximately 1.4 billion people, and millions of Chinese citizens travel abroad each year in search of new tourist destinations. Chen described the Dominican Republic as an "ideal destination" for Chinese tourists.
• Chen acknowledged that geographical distance remains the main challenge to establishing the route. However, he noted that there are viable alternatives, including a stopover in Europe, and that Chinese officials remain in constant communication with Dominican aeronautical authorities and airlines interested in developing the service.
• A direct air connection would facilitate the movement of travellers and businesspeople between the two countries, while boosting tourism, trade, investment and bilateral relations by opening new opportunities for economic cooperation.
• Chen also highlighted the large Chinese community residing in the Dominican Republic that is engaged in various commercial activities, noting that a direct flight could further strengthen people-to-people and business links between the two countries.

(Source: Dominican Today)

• Guyana Power and Light Inc. (GPL) signed a Memorandum of Understanding (MoU) with Global South Utilities Power Enterprises Investment LLC (GSU) of the United Arab Emirates (UAE) to establish a framework for cooperation in power generation, renewable energy and smart electricity infrastructure.
• According to GPL, the partnership aligns with its Development Plan, which aims to modernise Guyana's electricity network, improve service reliability and resilience, increase generation capacity, and integrate innovative technologies to meet the country's rapidly growing energy demand.
• GPL's Head of the Executive Management Committee, Kesh Nandlall, described the agreement as an important milestone in the company's transformation. The partnership will leverage international expertise, innovative technologies and strategic investments to accelerate the delivery of GPL's Development Plan and provide a more reliable and efficient electricity service.
• Under the MoU, GPL and GSU will collaborate on identifying, evaluating and developing power and energy projects. The agreement also provides for joint feasibility studies and the exploration of financing, technical cooperation and implementation strategies, with individual projects to be governed by separate agreements.
• GPL said GSU brings extensive international experience in the development, financing and operation of power and energy infrastructure, particularly in emerging markets. Through the partnership, GPL expects to benefit from global best practices and advanced technologies to support the modernisation of Guyana's electricity network.
• The partnership is expected to play a key role in advancing renewable energy integration, strengthening generation capacity and introducing smart electricity infrastructure, enhancing operational efficiency, improving system reliability and better serving customers across Guyana.

(Source: News Room)

• The Bank of England (BoE) could give Britain's government bond market a boost this week and lower public borrowing costs by more than £1Bn (US$1.3Bn) a year, banks say — but some former regulators warn a change in rules to achieve this would increase financial risks. The BoE is reviewing how its leverage ‌rules operate, which banks argue discourage them from holding public debt, after loosening its main capital requirement in December. It is due to give an update on its plans in its half-yearly Financial Stability Report set to be released this week.
• The central bank's review into leverage rules and other buffers follows a relaxation of U.S. leverage requirements in November, a development that increased competitive pressures for British lenders and potentially undermined broader resilience, nearly 20 years on from the global financial crisis.
• Barclays, with over 20 million United Kingdom (U.K.) customers, has called on the BoE to stop counting banks' holdings of British government bonds, known as gilts, towards a leverage ratio which requires banks to have capital worth somewhat over 3.25% of their assets to help cover any losses.
• A change here could encourage British banks to hold ⁠up to £150Bn more gilts, lower average yields by a fifth of a percentage point and save the government £2.5Bn a year in debt interest at a time of stretched public finances. This change should only apply to 'unencumbered' gilts, that is, those that banks are free to sell and are not already pledged as collateral in another transaction, Barclays added.
• Other banks see a sizeable, if smaller, gain too. Lloyds said a change might only lead to a £30Bn increase in gilt demand, but it still sees at least a £1Bn a year reduction in interest payments for the government — almost enough to cover a funding shortfall in defence plans recently announced.
• Since launching the review, the BoE has not said if it supports exempting gilts from leverage rules. However, Sam Woods, who was the BoE deputy governor for prudential regulation ‌until last ⁠week, told financiers in October that exempting all gilts from leverage rules "would be a profound and highly risky change". Woods has been succeeded by Katharine Braddick, previously a senior Barclays executive. Other former regulators have also voiced concerns.

(Source: Reuters)

• United States (U.S.) services sector activity dipped in June as some of the boost from businesses rushing to place orders amid the Middle East war ‌ebbed, but employment rebounded after contracting for three straight months, pointing to continued labour market stability.
• The Institute for Supply Management said on Monday, July 6, 2026, its non-manufacturing purchasing managers index edged down to 54.0 last month from 54.5 in May. A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity. The survey measure of new orders received by services businesses also dropped to 55.1 after surging to 57.3 in May. Order ⁠backlogs, however, increased last month.
• A similar dynamic was observed in the Institute for Supply Management’s (ISM's) manufacturing survey last week. The four-month U.S.-Israeli conflict with Iran raised prices of commodities, including oil. Washington and Tehran have since agreed to a ceasefire, with the fragile truce last month pushing oil prices back to pre-war levels.
• The decline in oil prices helped to slow the pace of increase in services inflation. A measure of prices paid by services businesses dropped to a still-high 67.7 from 71.3 in May. However, economists have warned that underlying inflation could remain elevated even if oil prices dropped. This will likely be driven by the fact that businesses are investing heavily in artificial intelligence, driving up prices of goods like semiconductors and electronics.
• Consequently, most economists continued to expect that the ⁠Federal Reserve (Fed) would hike interest rates this year, despite job growth slowing considerably in June and revisions showing nonfarm payroll gains in the prior two months were not as strong as previously reported. The U.S. central bank last month left its benchmark overnight interest rate in the 3.50%-3.75% range, but updated quarterly projections showed policymakers expected to raise borrowing costs this year.

(Source: Reuters)

• Newly listed company, Quantas Advantage Inc. (QAINC) made its financial reporting debut, delivering strong results for the nine months ended March 2026. Earnings increased 60.9% year-over-year, driven by continued expansion of its investment portfolio, robust growth in net interest income, favourable unrealised foreign exchange movements, and sustained credit quality.
• Net interest income expanded by 44.5% to US$1.97Mn (2025: US$1.36Mn), reflecting growth in interest-earning assets and improved portfolio yields. Higher portfolio yields was partially offset by higher interest expense as the Company increased its use of borrowings to finance portfolio expansion.
• Further boosting the bottom line, QAINC recorded unrealised foreign exchange gain of US$106.26K compared with an unrealised loss of US$153.99K in the corresponding period last year. This favourable swing provided a meaningful boost to earnings.
• At the same time, asset quality remained resilient, with no material deterioration in the credit portfolio. As a result, the company recognised an expected credit gain of US$8.84K, compared with a marginal gain of US$0.32K in the prior year, reflecting the continued strength of its underwriting standards and risk management framework.
• As the business continues to scale, operating expenses rose 45.1% to US$0.53Mn, primarily driven by higher management fees associated with the expanding asset base, alongside increased legal and professional fees related to transaction execution and structuring activities. That said, cost efficiency remained largely intact, with the management expense ratio (or expense ratio) holding rising modestly to 1.6% of average assets, versus 1.5% in the prior year.
• Looking ahead, management intends to deploy the IPO proceeds to accelerate portfolio growth, deepen its presence in the Caribbean private credit market, and capitalise on a robust pipeline of structured finance opportunities. This strategy is expected to support sustained asset growth, higher recurring interest income, and continued earnings expansion over the medium term
• Investors have responded positively to the stock. Since listing on July 1, 2026, QAINC’s stock price has increased by 12.4% closing at $21.79 as at Thursday. At this price, the stock is trading at a price-to-book (P/B) ratio of 2.2x, which is notably higher than the Main Market Financial Sector’s average of 1.1x.  This suggests that investors are optimistic about the Company's growth prospects and are willing to pay a premium relative to its book value, reflecting confidence that future earnings and returns will exceed what is currently represented on the balance sheet.

(Sources: JSE & NCBCM Research)

• Tourism Minister Edmund Bartlett says the government is advancing a range of infrastructure and destination development projects to support sustained growth and investment in Jamaica’s tourism sector.
• His remarks follow calls from industry stakeholders for sustained investment in destination infrastructure to support the sector’s expansion, made during the Jamaica Hotel and Tourist Association (JHTA) Tourism Forum for increased investment in destination infrastructure to support the industry's expansion.
• The Government's strategy centres on infrastructure upgrades, regulatory reform, and stronger community linkages as central to transforming tourism from a standalone industry into a fully integrated “tourism economy”. Priority projects include the recently completed Destination Development Strategy for Negril, alongside ongoing redevelopment plans for Falmouth, Ocho Rios, and St Thomas Thomas as part of efforts to improve visitor experiences and ensure that more communities benefit from the sector’s growth.
• The focus on destination infrastructure likely comes as visitor arrivals is expected to continue recover overtime and hotel room capacity expands, increasing the need for improvements in transportation networks, public spaces, utilities, and visitor amenities to preserve Jamaica's competitiveness against regional tourism markets.
• From an investment perspective, continued public investment in tourism infrastructure could generate positive spillover effects across several sectors. Improved connectivity and destination enhancements are likely to support higher visitor spending, benefiting hotel operators, transportation providers, attractions, restaurants, and commercial real estate. Infrastructure projects could also create opportunities for construction companies, building materials suppliers, and financial institutions through increased project financing and private-sector investment.
• For the broader economy, a more integrated tourism ecosystem should strengthen foreign exchange earnings, support employment growth, and encourage greater participation by local businesses through stronger linkages with agriculture, manufacturing, and professional services. Over the medium term, successful execution of these initiatives will continue to reinforce tourism's role as one of Jamaica's key drivers of GDP growth.

(Source: Caribbean National Weekly and NCBCM Research)

• The expanded Panama Canal has crossed a major milestone, handling more than 31,000 Neopanamax vessel transits in its first decade of operation. The expansion began service on 26 June 2016, when the COSCO Shipping Panama made the inaugural transit through the new locks. Since then, the upgraded canal has become a central part of global shipping routes and now generates more than half of the waterway’s total revenues.
• The milestone reflects how the expansion has reshaped maritime trade over the past ten years. By allowing larger vessels to pass through, the new locks have improved the canal’s capacity and reinforced its relevance in international logistics. During the first eight months of fiscal year 2026, the canal recorded 8,593 transits, including 2,385 Neopanamax vessel movements. This implies that Neopanamax ships accounted for 27.7% of total traffic in that period.
• The expanded canal’s contribution to revenue has grown steadily and now represents more than half of the waterway’s total revenues, highlighting its growing role in global trade. This shows that the investment in larger lock infrastructure has delivered both operational and financial benefits. The expansion is also being recognised as one of the most significant infrastructure projects in modern shipping. It has changed how carriers plan routes and has increased flexibility for global trade.
• During the first eight months of fiscal year 2026 (October 2025-May 2026), the Canal recorded 8,593 transits. Of those, 2,385 involved Neopanamax vessels, representing 27.7% of total traffic. The Panama Canal Authority said improved water levels at Gatun and Alhajuela lakes have allowed the Canal to maintain safe and reliable operations after the severe drought that disrupted traffic in 2023 and 2024.
• Looking ahead, the Panama Canal Authority continues to focus on long-term water security. Projects such as the proposed Rio Indio Lake^[1] form part of its strategy to strengthen climate resilience while ensuring reliable water supplies for both Canal operations and local communities.

________________________

¹The Rio Indio Lake Project is a massive $1.6 billion plan to dam the Río Indio and create a new reservoir. It will send water through a 5-mile tunnel into Gatún Lake. This water will help ships cross the Panama Canal during droughts.

(Sources: Panama Newsroom & Container News)