• The Brazilian central bank will step up its campaign to raise interest rates with a big 75 basis point hike on Dec. 11, possibly also hinting at more restrictive monetary policy next year, a Reuters poll showed.
• This would mark the third consecutive rate hike as inflation accelerates, following increases of 25 basis points in September and 50 basis points last month, bringing the Selic benchmark rate to 12%
• Banco Central do Brasil (BCB)'s rate hike acceleration coincides with the U.S. Federal Reserve's recent caution on its cutting push in the face of the risk of a resurgence in consumer prices in 2025.
• The majority of analysts, 31 of 40, predicted a 75 basis points increase on Dec. 11 to 12% from the current 11.25%. Five called for a more moderate 50 basis points increment, while four anticipated a steeper full percentage-point hike.
• BCB's incoming chief highlighted those current conditions, which pointed to "higher interest rates for longer" and said that the bank would not intervene in foreign exchange markets despite the turbulence there that has stoked imported inflation pressure.
• Brazil's consumer prices rose more than anticipated in the month to mid-November, driving annual inflation to 4.77%, above the central bank's target range of 1.5% to 4.5%.
• Looking ahead, the Selic rate is expected to reach a peak of 13.50% in the second quarter of next year and hold steady until the final quarter of 2025. At that point, median forecasts from a smaller sample anticipate a 0.50 percentage point reduction, bringing it to 13.00%.

(Sources: Reuters & US News Money)

• U.S. unit labour costs grew far less than initially thought in the third quarter, pointing to a still favourable inflation outlook, even though price increases have not moderated much in recent months.
• The report from the Labour Department on Tuesday also showed labour costs declined in the second quarter, instead of rising as had been estimated last month. Moderate labour costs growth is likely to be welcomed by Federal Reserve officials when they hold their last meeting of the year next week. The U.S. central bank is expected to cut interest rates by 25 basis points, the third reduction in borrowing costs since it started its monetary policy easing cycle in September.
• Unit labour costs - the price of labour per single unit of output - increased at a 0.8% annualised rate last quarter, the Labour Department's Bureau of Labour Statistics said. Economists polled by Reuters had expected labour costs growth would be revised down to a 1.5% rate from the previously reported 1.9% pace in the July-September quarter. That followed a downwardly revised 1.1% pace of decline in the second quarter. Labour costs were previously reported to have advanced at a 2.4% rate in the April-June quarter.
• It increased at a 2.2% pace in the third quarter from a year ago, revised down from the previously reported 3.4% rate. The revisions reflected updated compensation data from the Bureau of Economic Analysis.
• A resilient economy, lack of progress lowering inflation to the Fed's 2.0% target and concerns over President-elect Donald Trump's proposed policies, including higher tariffs and mass deportations, have made the rate outlook next year unclear. The Fed's policy rate is now in the 4.50%-4.75% range.

(Source: Reuters)

• In one of their most dovish statements in more than a decade, Chinese leaders signalled on Monday they are ready to deploy whatever stimulus is needed to counter the impact of expected U.S. trade tariffs on next year's economic growth. After a meeting of top Communist Party officials, the Politburo, officials said they would switch to an "appropriately loose" monetary policy stance, and "more proactive" fiscal levers.
• The previous "prudent" stance that the central bank had held for the past 14 years coincided with overall debt - including that of governments, households and companies - jumping more than 5 times. Gross domestic product (GDP) expanded roughly three times over the same period.
• The Politburo rarely details policy plans, but the shift in its message shows China is willing to go even deeper into debt, prioritising, at least in the near term, growth over financial risks. It's unclear how much monetary easing the central bank could deploy and how much more debt the finance ministry could issue next year. But analysts say that works in Beijing's favour.
• Next year's 2025 growth, budget deficit, and other targets will be discussed - but not announced - in the coming days at an annual meeting of Communist Party leaders known as the Central Economic Work Conference (CEWC). Reuters reported last month that most government advisers recommend that Beijing should maintain a growth target of around 5.0%, although that pace seemed difficult to reach throughout this year.
• The tone of the Politburo statement suggests that China won't lower its growth ambitions for 2025, says Zong Liang, chief researcher at state-owned Bank of China. However it also suggests that China is likely to set an initial budget deficit target of around 4%, its highest ever.
• What else Beijing is prepared to do to boost consumption is another unknown, but demand-focused measures are key to improving the effectiveness of monetary policy easing in an economy that for decades has put production at its core.

(Sources: Reuters)

• A.S. Bryden& Sons Holdings Limited (ASBH) announced that it has acquired an additional 30.4% stake in Caribbean Producers (Jamaica) Limited (CPJ) in exchange for 94,871,379 newly issued ordinary shares of ASBH to the sellers of the CPJ shares.
• With this additional purchase, ASBH owns 75.3% of CPJ and CPJ is now a subsidiary of ASBH. Given that its increased ownership represents more than 50% of the issued share capital of CPJ, ASBH will be extending a Mandatory Offer to all remaining CPJ shareholders within thirty (30) days in accordance with the Jamaica Stock Exchange's General Principles relating to Take-overs and Mergers.
•  “ASBH's increased ownership of CPJ is consistent with our objective of purchasing additional shares we shared (sic) following the acquisition of our strategic stake in July. We will soon extend an offer to purchase shares from all CPJ shareholders on equivalent terms subject to CPJ remaining a listed company.” said Nicholas A. Scott, Director of ASBH.
•  “We are committed to becoming the leading distributor of food and premium beverages to hotels, resorts and restaurants in Jamaica and across the Caribbean. As a member of the Brydens Group, CPJ will now have access to greater resources and a regional platform.” said P.B. Scott, Chairman of ASBH.
• ASBH’s stock price has fallen 7.0% since the start of the year and closed Monday’s trading session at $30.80 per share. Market reaction has been relatively muted following Friday's announcement, with stock prices trending down slightly by 0.5%. At this price, the stock trades at a P/E of 15.9x earnings, which is above the Main Market Manufacturing & Distribution Sector Average of 13.2x earnings.

(Sources: JSE & NCBCM Research)

• The Ministry of Tourism is moving to position the hospitality sector to attract more luxurious developments similar to the US$450-million Montego Bay Pinnacle luxury lifestyle development currently under construction on the city’s western coastline.
• “We are now looking at how to enable more of this type of investment that LCH Developments has brought to Jamaica,” said Minister of Tourism, Hon. Edmund Bartlett at a landmark conference on branded real estate development, hosted by the Pinnacle developers at the Montego Bay Convention Centre (December 4).
• “This for us, is a pivotal point, and whilst we are going to be continuing to build out the elements of tourism that drive the demand for more production in various areas of the economy, we’re going to be placing concerted focus on luxury tourism as a critical part of the differentiation of the Jamaican experience,” he added.
• Minister Bartlett said this was in keeping with the Blue Ocean Strategy for growth that the Ministry of Tourism and its public bodies developed in 2021. He posited that attracting this demographic in the tourism space would create more demand for goods and services from various sub-sectors, boosting consumption in both quantity and quality resulting in higher returns, which also offers more employment opportunities.
• He stated that: “we are going to have to zone our areas and develop specific areas for different types of products, St. Thomas is being positioned for luxury tourism development as well.”

(Source: Breaking Travel News)

• Guyana and Suriname have selected China Road & Bridge Corp. to build a $236 million bridge to link the two South American countries across the bordering Corentyne River, Guyana’s Public Works Minister Juan Edghill said Sunday.
• Mr. Edghill said construction would begin as soon as both countries finalise financing for the US$236 million project. The countries will split the $236Mn cost of the bridge equally and have sought financial backing from the Chinese government.
• Guyana and Suriname, which both enjoy long-standing fraternal relations with China, have approached that East Asian nation to finance the construction of the bridge that would hop from Moleson Creek to Long Island and then on to South Drain in the neighbouring former Dutch colony. However, sources indicate that Suriname has to be careful about its borrowing because its economic recovery programme has to reach certain global benchmarks.
• Still, Suriname’s Technical Assistant for Capital Infrastructure Projects had said the bridge would have a lifespan of 100 years and low as possible maintenance. The bridge caters for ships of 47,000 dead weight tonnes, a horizontal clearance of 100 metres and vertical clearance of 43 metres.
• The 1.1 kilometer-long (0.7 mile) bridge will take about three years to build; however, the start date will be linked to finalising the financing with China.

(Sources: BNN Bloomberg and Demerara Waves)

• Mexico is taking all possible measures to preserve its regional trade agreement with the United States and Canada, the country’s deputy economy minister said in an interview published Friday.
• The three neighboring nations, and major partners in commerce, have entered a trade tussle after U.S. President-elect Donald Trump threatened to slap tariffs on the countries to the north and the south if they did not clamp down on drugs and migrants coming into the U.S.
• Since Trump's tariff threat, Mexico has launched an offense on contraband goods from Asia coming into the country, and officials seized a record amount of fentanyl. They have also detained thousands of migrants, vowing to prevent them from making it north. 
• Mexico is looking to take a cue from the U.S.; however, in screening investments coming into the country, Gutierrez said. Mexico is looking to develop a process similar to the U.S.' Committee on Foreign Investment, he explained. When asked if that would affect Chinese automaker BYD's plans to build a factory in the Latin American country, Gutierrez responded that Mexico wants "to play with the same rules" as its trade allies.
• Trump had also threatened to put a 100% tariff "on every single car coming across the Mexican border" in response to BYD's plans, though the carmaker has repeatedly said its plant would serve the local market and not the United States.
• Mexico is considering doling out incentives to draw manufacturing investments, Gutierrez said, suggesting Mexico could produce batteries that the U.S. wants to be made regionally.

(Source: Reuters)

• Federal Reserve officials appear on track to cut interest rates this month after data showed the U.S. labour market remained strong but continued to cool in November, even as debate emerged over a possible pause to rate cuts in the new year.
• U.S. employers added 227,000 jobs last month, a rebound from a hurricane-impacted slowdown in October, but the unemployment rate ticked up to 4.2%, the Labour Department's monthly employment report showed on Friday.
• A number of Fed policymakers speaking on Friday said they saw rates continuing to come down while injecting a note of caution on the pace. San Francisco Fed President Mary Daly said the fresh figures show the labor market is in a good position.
• San Francisco Fed President Mary Daly said the fresh figures show the labour market is in a good position. And while she indicated no discomfort with another rate cut this month, she said that once the policy rate is closer to where it will settle, she would take "a more thoughtful and cautious approach" on further rate cuts. Daly has previously said she views 3% as where short-term borrowing costs may need to end up. Those projections will be updated at the December meeting.
• A quarter-percentage-point reduction this month would bring the Fed's policy rate to the 4.25%-4.50% range, a full percentage point below where it was in September when the central bank began its easing cycle. On Wednesday, Fed Chair Jerome Powell repeated his prior comments that the central bank could be careful in managing the endgame of its roughly three-year fight against inflation. Powell's caution may come more into play next year, with many analysts expecting the Fed to pause the easing after delivering a cut on Dec. 18.

(Source: Reuters)

• China's consumer inflation hit a five-month low in November as fresh food prices pulled back while factory deflation persisted, suggesting Beijing's recent efforts to shore up faltering economic demand are having only limited impact. The world's second-largest economy is bracing for likely fresh tariffs from a second Donald Trump White House and still dealing with other headwinds, suggesting more policy stimulus will be needed to shore up fragile growth.
• The consumer price index rose 0.2% last month year-on-year, data from the National Bureau of Statistics showed on Monday, below the 0.3% increase in October and a 0.5% rise forecast in a Reuters poll of economists. CPI fell 0.6% month-on-month, compared with a 0.3% fall in October and a forecast 0.4% decline. NBS statistician, Dong Lijuan, said the faster monthly fall in CPI was mainly due to a weather-related 2.7% decline in food prices.
• The national average temperature in November was the highest for any comparable period since 1961, which supported the production and transportation of agricultural goods, helping bring fresh food prices down, Dong said in a statement. Core inflation, excluding volatile food and fuel prices, edged up to 0.3% last month from 0.2% in October.
• Chinese government advisers are calling for an economic growth target of around 5.0% for 2025, pushing for stronger fiscal stimulus to mitigate the impact of expected U.S. tariff hikes on the country's exports, Reuters reported.
• However, economists are still broadly gloomy about China's economic prospects, which face fresh trade tariffs from a new Trump presidency next year and a still shaky property sector. Fitch Ratings lowered its economic forecasts for China for 2025 to 4.3% from 4.5% and for 2026 to 4.0% from 4.3% on Monday, citing risks of even higher U.S. tariffs on Chinese goods.

(Source: Reuters)

• The Jamaica Stock Exchange e-Campus (JSE e-Campus) and the University of Technology Jamaica (UTECH) signed a Memorandum of Understanding (MOU) on November 22, 2024, at the Jamaica Stock Exchange (JSE) to collaborate to fulfil the training needs of the financial services sector.
• The MOU involves joint courses, progress reports, curriculum strengthening and articulation, staff and student exchange, human resource development, public education joint seminars, conferences, and publications, among others. It is expected to last for three (3) years with the option for renewal.
• Both JSE and UTech have agreed that within the context of a globalised environment, where it is imperative to collaborate to compete and make use of common resources successfully, there is a need for a coordinated, and rationalised approach to dealing with training issues affecting the financial services sector.
• Dr. Marlene Street Forrest, Managing Director of the JSE, stated “We know that coordination will be critical to our success, and as we are committed to the success of this relationship, we will find it through our Steering Committee… By working together, the JSE e-Campus and Utech will create opportunities for learners, at all levels, to contribute meaningfully to Jamaica’s human and economic development.”

(Source: JSE)