• The Jamaica Stock Exchange’s (JSE) efforts to develop the capacity of young people in financial literacy and money management have been endorsed by the Minister of Education and Youth, Hon. Fayval Williams.
• Speaking during the launch of the Primary School Stock Market Education programme at the JSE in downtown Kingston on Friday (October 20), Mrs Williams said the initiative is designed to equip youngsters with investment knowledge that can take them into adulthood.
• Noting that she was pleased with the focus of the public education programme on the role of the stock market, the value of investing in the stock market and the importance of saving at an early age, Mrs Williams said the JSE initiative should add some fun for the youngsters, while they are learning important information about the financial market.
• The JSE and its partners are using the programme, which is entertaining and interactive, to educate staff and students of primary and prep schools on the value of investing in the stock market, and the importance of starting to save at an early age.
• Plans are in place to involve as many primary and prep schools islandwide, with the hope of accomplishing this during the current school year.
• Minister Williams noted that while the stock market has risks, persons investing in the stocks have the opportunity to see their money grow significantly.

(Source: JIS News)

• Edufocal Limited (LEARN) has announced that the Company’s Board of Directors met on October 19, 2023.
• The meeting was adjourned so that deliberations may continue on the possibility of a renounceable rights issue, to be considered on October 27, 2023, when the meeting continues.
• The Board also advised that it will consider whether or not it should recommend a stock split to the company’s shareholders at the Board meeting on October 27, 2023.
• Since the announcement last week, the stock has rallied more than 85% to close out Monday’s trading session at $2.49.

(Source: JSE)

• Approximately 2 months after the Government sought authorisation from the Lower and Upper Houses of Parliament to borrow US$100 million from the Saudi Fund for Development (SFD), Finance Minister Dennis Cornwall signed the loan agreement with the Fund.
• The signing took place on the sidelines of the 2023 Annual Meetings of the World Bank Group and the International Monetary Fund held in Marrakech, Morocco, from October 9-15. This is Grenada’s first loan from the SFD, and as a result, the country has become the 91st nation to receive financial assistance from SFD.
• According to a news item on the Arabnews website, the loan is expected to help develop climate-smart infrastructure in St George’s, Grenville, and neighbouring areas in Grenada.
• “The project will include constructing breakwaters, developing hydro and sewage networks, modernising the waste treatment system, and using remote sensors to monitor air pollution, thus helping the Caribbean nation become more environmentally friendly and climate-smart,” said the news item which quoted from a release disseminated by the Fund. It is also anticipated to fuel direct and indirect employment opportunities.
• That being said, the Government of Grenada has yet to issue a news release about the terms and conditions of this new loan agreement and it is unclear whether the document will be tabled in Parliament.
• However, during the Lower House debate of the Loan Authorisation Resolution, Prime Minister Dickon Mitchell told the House that his Government is not keen on borrowing money. “And, if we do borrow, we will ensure that it is concessional as we can get and that is the reason why there is no loan at this point in time because we are ensuring that if we do get to the point where there is a loan, it must be on the best terms possible,” he said.

(Source: Now Grenada)

• The recent oil-driven boom in the Guyanese economy will continue in the near term. Fitch Solutions forecast real GDP growth of 29.5% in 2023, followed by a further expansion of 23.5% in 2024.
• Recent oil discoveries (ExxonMobil made its first major discovery in 2015) are now feeding into sharp increases in crude production - a trend which will continue over the coming quarters. Fitch’s forecasts are consistent with the economy of Guyana being 337.4% larger than its pre-Covid-19 level by the end of 2024.
• Given this, the oil boom will continue to manifest itself in rapid export and investment growth; while providing policymakers with room to ramp up government spending.
• Fitch’s view is that export volumes will increase by 40.5% in 2023 and a further 39.0% in the following year, resulting in net exports contributing 16.7 and 17.5 percentage points (pp) to headline growth in 2023 and 2024 respectively.
• Furthermore, the most recent GDP data (for 2022) show that the share of mining output (which almost entirely consists of oil) to GDP has risen from 15.0% in 2019 to 61.6% in 2022 on the back of a series of successful offshore explorations. In the coming quarters, this trend will continue with other large projects set to be undertaken by the ExxonMobil-led consortium.
• However, the risks to Fitch’s near-term view are tilted to the downside. A slump in global oil prices has the potential to trigger a pullback of foreign investment channelled into oil exploration and production.

(Source: Fitch Solutions)

• The EU Tax Observatory has proposed the introduction of a global minimum tax on billionaires as part of international efforts to combat tax evasion. This tax could potentially generate $250 billion annually.
• Billionaires often pay lower effective personal taxes compared to individuals with more modest means, primarily because they can place their wealth in shell companies, shielding it from income tax. This practice is seen as undermining the sustainability of tax systems and public support for taxation.
• Rising wealth inequality in some countries has led to calls for the wealthiest individuals to bear a larger share of the tax burden. This is driven by factors such as ageing populations, the need for financing climate transition and addressing COVID-related debt.
• The text mentions successful international initiatives to reduce tax evasion, such as the reduction of offshore tax havens through the automatic sharing of account information and the establishment of a global minimum corporate tax rate of 15% for multinational companies. The EU Tax Observatory suggests that similar efforts should be applied to billionaires, even if it requires a "coalition of willing countries" to lead the way.

(Source: Reuters)

• Jamaica has hired banks to arrange investor calls for a new local currency bond, and it is offering to buy back some of its dollar notes, just a day after the nation received its second credit-rating upgrade in just over a month.
• Officials from the Ministry of Finance and Public Service will hold calls with bond investors starting next week, according to people familiar with the matter. The country may sell a note denominated in Jamaican dollars with an intermediate tenor thereafter.
• At the same time, the country is offering to repurchase two series of notes due in 2025 and a bond due in 2028 for cash, according to a Thursday statement. The tender offer will expire on Oct. 27 at 5 p.m. in New York.
• The offer comes after S&P Global Ratings and Moody’s Investors Service both raised Jamaica’s credit score by a notch in just over a month. The credit-rating companies cited the government’s push to carry out structural reforms and reduce its debt load.
• Director of Fixed Income at Oppenheimer & Co., Thomas Jackson noted that the tender and new JMD issuance follow a series of good news from Jamaica, including the two upgrades. He further highlighted that the JMD issuance makes sense as it is in line with authorities' plan to reduce their exposure to foreign currency debt which is still above 60% of the balance.
• Moody’s lifted Jamaica by one notch to B1, it said in a Wednesday statement, putting the Caribbean nation four levels below investment grade. Moody’s also raised its outlook to positive from stable, signalling another upgrade is possible if the nation’s debt burden keeps shrinking.
• S&P Global Ratings in mid-September raised Jamaica’s score by a notch to BB-, three levels into junk. Fitch Ratings scores Jamaica a notch lower at B+, with a positive outlook.

(Source: Bloomberg)

• The European Union recently launched a Digital Transition Programme for Jamaica in support of the country's transition towards a digital economy and society.
• The multi-sector initiative is a collaborative effort of the EU and the Jamaican Government with a total investment of €9.5 million.
• Support will be provided to micro, small and medium-sized enterprises to adopt technological solutions.
• The Digital Jamaica programme seeks to connect citizens with improved broadband access while providing those working and learning in the education sector with training in digital skills.
• Digital Jamaica is the first bilateral EU Global Gateway Flagship Programme to be signed in the Caribbean.
• The move will also contribute to Jamaica's national digital plan, which includes addressing the digital divide in rural areas, facilitating access to education and technological innovation for the private sector

(Source: RJR News)

• An increase in the cost of transport services, particularly air transport, has accounted for more than 26% of the overall August inflation rate, according to the Statistics Division in the latest Consumer Price Index (CPI) report for Antigua and Barbuda.
• Overall, inflation rose by 6.6% in the last year ending August 2023, a larger increase than the 5% for July annual statistics.
• According to the CPI, transport services rose 34.2% with air transportation rising by 39.5%. Consumers also saw a rise in food prices, with a 3.6% surge in the last 12 months. Bread and cereals alone rose by 9.1%, accounting for almost 40% of this increase.
• Milk, cheese, and eggs accounted for the second largest contribution to food increases, with 22.8% of the overall food inflation rate. Those items grew 10.4% over the 12-month period.
• Meanwhile, vegetables saw a slight decrease in inflation with prices dipping by 1.3% in August after increasing 9.5% in July. The Statistics Division attributed the decline to an 11.7% decline in the cost of potatoes, while another notable decrease was in meats and meat products, which also slightly declined by 1.3%.
• Other indices with notable increases over the last year include restaurants and hotels, which saw an increase in their prices by 30.8%, communication services increased by 13%, and clothing and footwear saw an uptick of 8%.
• For the monthly report (July to August), inflation rose by only 1.4% after increasing less than 1% for the previous month.

(Source: Antigua Observer)

• As Venezuela deployed 150 soldiers near their border with Guyana, Foreign Affairs Minister Hugh Todd asked the Venezuelan Ambassador to Guyana to explain the movement of troops near the border between the two countries that are embroiled in a territorial controversy.
• The Foreign Affairs Ministry said though the Venezuelan Ambassador, Carlos Amador Pérez Silva claimed that the mobilisation of troops was geared towards curbing illegal mining, Georgetown has shared the information with regional and international partners.
• “The Government of Guyana remains on guard and has nevertheless shared the increased military activities by Venezuela taking place on its border with CARICOM Heads and other international partners,” the Foreign Affairs Ministry said.
• The Guyana government said it has taken “careful note of the various social media posts” which have reported the ‘mobilization of increased personnel and execution of military exercises by Venezuelan troops in close vicinity to its borders.
• Even as Guyana awaits a decision by the International Court of Justice (ICJ) on the legality of the 1899 Arbitral Tribunal Award that settled the land border with Venezuela; the United States, the Organisation of American States, the Commonwealth of the United Kingdom and former British colonies and Brazil have all solidly supported Guyana’s right to exploit its natural resources in its existing borders.
• Tensions boiled over within the past month after Guyana auctioned 14 offshore oil blocks, a decision that Venezuela said should not have been made without its permission as the maritime boundary has not been delimited.  Over the years, Venezuela had intercepted seismic research vessels in offshore oil concessions and had objected to the establishment of Omai and Aurora gold mines and the Beal Aerospace project, but investors had hardly been scared away.
• Guyana last month bluntly rejected a previously stated accusation that the United States was planning to set up a military base there to attack Venezuela.

(Source: Demerara Waves)

• The number of Americans filing new claims for unemployment benefits fell to a nine-month low, with initial jobless claims dropping by 13,000 to 198,000. This is the lowest level since January and was unexpected.
• The decline in jobless claims adds to a series of positive economic indicators, including strong retail sales and factory production in September, suggesting continued momentum in the U.S. economy.
• The positive economic data has increased expectations that the Federal Reserve may maintain higher interest rates for a longer period. This is partially due to soaring U.S. Treasury yields, and financial markets do not expect a rate hike in the coming month.
• While the labour market is gradually cooling, conditions remain tight, and claims are at the lower end of the range for the year. The impact of recent United Auto Workers (UAW) strikes has been limited, with claims rising in Michigan during the week ending October 7.
• Stocks on Wall Street were trading higher, the dollar fell against a basket of currencies, and U.S. Treasury prices slipped, with the yield on the benchmark 10-year note approaching 5%, a level not seen since just before the financial crisis in 2007.

(Source: Reuters)