• Brent futures saw a second consecutive day of lows since March 27, having settled at $87.11 a barrel, while WTI crude settled at $82.73. Mixed U.S. economic data, coupled with sanctions on Venezuela and Iran and easing tensions in the Middle East, influenced investor sentiment.
• Increased interest in energy trading was evident with open interest in Brent futures reaching its highest since February 2021. Additionally, U.S. diesel futures dropped to their lowest level since January, impacting refining profit margins, measured by the diesel crack spread, to their lowest since April 2023.
• Venezuela lost a key U.S. license for oil exports, impacting its crude and fuel sales, while U.S. sanctions on Iran targeted its unarmed aerial vehicle production. However, the sanctions did not extend to Iran's oil industry.
• While Geopolitical tensions and supply dynamics continue to influence oil market sentiments, investors are gradually unwinding the geopolitical risk premium in recent sessions.

(Source: Reuters)

• Wigton Windfarm Limited (WIG) has announced that the Entrenched Articles (Limitations on Shareholdings), which provide for the special rights redeemable preference share of J$1.00 (“Special Share”) held by the Accountant General of Jamaica and the 10% shareholding limit, will cease to have any effect on the expiration of the Entrenchment Period.

• This announcement was per Wigton’s Articles of Incorporation. The Entrenchment Period is five (5) years from April 17, 2019, when the application list in the initial public offer launched by the Government was opened.

• This means that the Special Share held by the Accountant General of Jamaica will be surrendered and the 10% shareholding will cease to apply on April 17, 2024.

• The removal of the cap on shareholdings allows for the possibility of change in control, as an individual or group of individuals may now take control of the organization.

(Sources: JSE)

• GraceKennedy Limited (GKL) has announced that GK Investments Limited, a wholly-owned subsidiary of GraceKennedy Limited has purchased 60,000,000 units of shares in Spur Tree Spices (Jamaica) Limited thereby increasing its ownership to 20.18%.

• GK Investment now becomes the second-largest shareholder in the company. The largest shareholders are Harrinarine Mohan Jagnarine and Chandra Jagnarine who together own 31.18% of the company.
(Source: JSE)

•  (RBPF) surged by 54% to 830 incidents in 2023, representing a five-year high.
• Data unveiled showed that total financial-related crimes beat the previous five-year high of 800 in 2019. Notably, incidents of forgery and possession of forged documents both doubled year-over-year (YoY) compared to 2022.
• YoY, reports of forgery to the RBPF increased by 100% from 15 to 30, while reports of forged document possession rose by 144% from 18 to 44. However, no explanations were provided for the increases.
• The only financial crime categories to report a YoY reduction in 2023 were the possession of forged banknotes and proceeds from crime. No complaints for bribery, falsification of accounts or uttering forged documents were reported.
• The most commonly reported offence, fraud by false pretences, increased by 97% from 204 the prior year to 401 accounting for close to half of all financial crime incidents. Stealing by reason of employment rose by 55% YoY, from 56 to 87 complaints, while stealing by way of service increased by 34% from 130 to 174 reported incidents.

(Source: The Tribune)

• The Biden administration has signalled that it could reimpose oil sanctions on Venezuela on Thursday, April 18, in response to what U.S. officials see as President Nicolas Maduro's failure to meet his commitments for free and fair elections this year.
• Barring any last-minute concessions by Maduro, the U.S. has made clear it is not likely to renew a six-month license that granted the OPEC member partial sanctions relief. The relief was in place from October, following an election deal reached between the government and the Venezuelan opposition.
• Washington had repeatedly threatened in recent months to reinstate punitive measures on Venezuela's vital oil and gas sector unless Maduro made good on his promises. These promises include allowing the opposition to run the candidate of its choice against him in the July 28 election.
• Weighing on the U.S. decision have been concerns about whether reimposing sanctions on Venezuela's energy sector could spur higher global oil prices and increase the flow of Venezuelan migrants to the U.S.-Mexico border as Biden campaigns for reelection in November.
• Maduro's government has repeatedly reacted in defiance of Washington's warnings. "International companies continue coming to Venezuela," Venezuelan Oil Minister Pedro Tellechea said in Caracas. "With or without sanctions, Venezuela will be respected."
• Venezuela's oil exports in March rose to their highest level since early 2020 as customers rushed to complete purchases ahead of the possible return of sanctions. 

(Source: Reuters)

• The U.S. dollar is gaining momentum due to concerns about persistent inflation and uncertainty regarding the Federal Reserve's ability to cut interest rates compared to other central banks. The U.S. dollar index has risen by 4.6% this year and experienced its largest weekly gain since September 2022.
• Market participants anticipate the Fed will need to maintain current interest rates for a longer period to combat potential inflation. Stronger-than-expected consumer price data last week reinforced this belief, with Investors pricing in fewer interest rate cuts for 2024 than earlier expectations.
• Conversely, other central banks like the European Central Bank, the Bank of Canada, and Sweden's Riksbank are perceived to have more flexibility in easing monetary policy, marking a shift from previous expectations where the Fed was expected to lead rate cuts.
• Widening yield differentials between the U.S. and other economies are contributing to the dollar's rally as higher U.S. yields make dollar-denominated assets more attractive.
• A stronger dollar may complicate inflation control efforts for other economies by depreciating their currencies while aiding the U.S. to manage consumer prices by tightening financial conditions.
• Dollar strength could pose challenges for U.S. multinational companies by increasing the cost of converting foreign profits into dollars and reducing the competitiveness of their exports. Additionally, geopolitical uncertainties have boosted demand for the U.S. dollar as a safe-haven asset, contributing to its recent strength amid fears of escalating conflicts in the Middle East.

(Source: Reuters)

• British consumer price inflation slowed by less than expected to 3.2% in annual terms in March, down from a 3.4% increase in February, the Office for National Statistics (ONS) said on Wednesday.
• The Bank of England and economists polled by Reuters had forecast an annual rate of 3.1%.
• Core inflation, which excludes energy, food and tobacco prices, also slowed to 4.2% from 4.5% in February. The Reuters poll had pointed to a reading of 4.1%.
• Services inflation, which the BoE also watches closely, eased slightly to 6.0% in March from 6.1% a month earlier, the ONS said.

(Source: Reuters)

• Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, is encouraging micro, small and medium-sized enterprises to get prepared as the Government positions the sector to be competitive globally.
• The push aligns with Jamaica’s broader economic agenda, which prioritises diversification, export promotion, and inclusive growth. “Jamaica’s MSMEs must become known regionally and internationally as more efficient manufacturers of goods and ever-improving crafters of ingenious services that people will buy,” Minister Hill said.
• “Jamaica is changing for the better and the business environment is changing rapidly. We are firmly on a path to international recognition as outstanding economic managers to add to the excellence we have achieved and are recognised for around the world. So we must keep our minds focused,” Senator Hill added.
• In a paper titled ‘Sustained Debt Reduction: The Jamaica Exception’, authors Serkan Arslanalp, Barry Eichengreen and Professor Peter Blair Henry, noted that the sharp, sustained reductions in public debt are outstanding “because public-debt-to-GDP ratios have been trending up in advanced countries, emerging markets, and developing countries alike”.
• He was contributing to the discussion at the Jamaica Business Development Corporation’s (JBDC) annual ‘Breakfast with the CEO’ event held recently at the AC Marriott Hotel in New Kingston. He highlighted that MSMEs are key drivers of economic growth and noted the Government’s commitment to enhancing the sector’s contribution to gross domestic Product (GDP) and sustainable development for the benefit of all citizens.
• MSMEs constitute a cornerstone of Jamaica’s economic landscape, fostering entrepreneurship, generating employment opportunities, and contributing to socio-economic development.

(Source: JIS)

• Tropical Renewable Energy, a majority-owned subsidiary of Tropical Battery Company, has been appointed an authorised reseller of eGauge Systems.
• Based in Boulder, Colorado, eGauge is one of the world’s leading providers of technologically advanced energy monitoring systems for residential and commercial use. The company’s hardware and software systems enable energy consumers and companies operating in the renewable energy and energy efficiency segments to monitor energy usage data in real-time and generate reports.
• Energy demand and consumption data are key inputs used in modelling the solar power and energy storage systems designed, installed, monitored, and maintained by Tropical Renewable Energy in Jamaica and the Dominican Republic.
• Tropical Renewable Energy's CEO, Oliver Hill, highlighted that the company has been utilizing eGauge Technology in its renewable energy installation with great success. The company is also pleased to be able to offer the full suite of eGauge products and services to renewable energy installers and end users in Jamaica, the Dominican Republic, and across the Caribbean as a distributor of this cutting-edge technology.
• “The addition of eGauge to our portfolio of renewable energy products and services enhances our offering and will help ensure Tropical Renewable Energy customers and installation partners have the best tools at their disposal to design and monitor solar power and energy storage systems to optimize efficiency and reduce costs,” Hill added.

(Source: JSE)

• The International Monetary Fund (IMF) upgraded its 2024 view for economic output growth in Latin America and the Caribbean to 2.0% from its January estimate of 1.9%, though it still expects a slowdown, the fund said on April 16 in its latest World Economic Outlook.
• The 2.0% GDP increase forecast for 2024 across the region compares to 2.3% in 2023 and a 2025 forecast of 2.5%. This is also above the World Bank's recent forecast of 1.6% growth in 2024 across the region.
• The overall slowdown in growth is due in part to smaller rates of growth in the region's largest economies. Yet Brazil's 2.2% growth estimate for this year is 0.5 percentage points higher than the January view.
• Notably, Guyana is forecasted to lead the pack in 2024 with a growth of 33.9%, while Antigua and Barbuda will register the second-highest growth of 6.1%. Other noteworthy growth projections for 2024 include Jamaica (1.8%). Trinidad and Tobago (2.4%), Barbados (3.7%), The Dominican Republic (5.4%), The Bahamas (2.3%), Panama (2.5%), and Mexico (2.4%).
• Elsewhere in the region, the IMF expects Argentina's contraction to deepen to -2.8% this year from 2023's -1.6%, with annualised consumer inflation of just under 250%.
• Overall, for Central America, the estimate is for 3.9% output growth, compared to 4.2% last year, while the Caribbean is seen accelerating further to 9.7% in 2024 from last year's 8.3%.

(Sources: IMF & NCBCM Research)