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Mayberry Jamaican Equities Reports Strong 3rd Quarter Published: 11 October 2018

  • Net profit for the 9 months to September 2018 was $690Mn (EPS: $0.57), representing 717% increase compared with $84.42Mn (EPS: 0.07) recorded last year. 
  • Net Revenues increased by $634.8Mn over the corresponding period last year, to reach $657.8Mn.
  • Total comprehensive income, amounted to $6.76Bn, compared to $807.95Mn for the corresponding quarter of 2017; an increase of $5.95Bn or 7.36x.
  • The company which operates like a quasi-index fund held 31 stocks across the Main and Junior Markets in its portfolio as at the report date and recently received $2.2Bn through a loan which it intends to use to purchase additional shares.

Source: Mayberry Jamaican Equities  3rd Quarter Financial Statement

JPS to Refinance $US179.2Mn of its Debt Published: 11 October 2018

  • As part of its Extraordinary Rate Review application to the Office of Utilities Regulation (OUR), the JPS proposed to refinance US$179.2 million of its existing long-term debt to reduce the interest rate from 11% to 8% per annum. 
  • The company says the refinancing would translate into savings of US$ 5.37 million per annum for the remaining three years of the debt.
  • Customers could receive US$3.4Mn per annum reduction on their bills as a result of the refinancing.

Source: RJR

Brexit obstacles Published: 11 October 2018

  • Hopes of a deal on the U.K.’s exit from the European Union as early as next week remains high, even as some officials are warning that obstacles still need to be overcome.
  • The European Union’s chief negotiator, Michel Barnier, said a deal is “within reach” as negotiations over the thorny Northern Irish border seem close to resolution. The pound is trading above $1.3200 this morning amid the optimism.

Source: Bloomberg

Petrotrin receives green light to proceed with terminations Published: 11 October 2018

  • Late yesterday evening Petrotrin was able to successfully block an injunction granted by the Industrial Court from taking effect, as the Appeal Court grants a stay on the ruling.  
  • It now means the company can now proceed with the termination process.

Source: Trinidad Guardian

Consumer Confidence rises to new high Published: 11 October 2018

  • Consumer confidence for 3rd quarter of 2018 was  at 172.6 points, up from 159.1 points in the 2nd quarter, according to survey numbers from the Jamaica Chamber of Commerce.  The boost in confidence is due primarily to views on current and future job prospects.
  • Business confidence on the other hand remains flat a 140, on the other hand, used economic growth prospects resulting from the recent depreciation in the local currency.  While firms are still bullish on investment, the latter has also caused some investors to be less willing to invest in new plant and equipment.

Source: Gleaner (Finance)

Imbert: Economy will suffer if Petrotrin is prevented from moving forward Published: 09 October 2018

  • Finance Minister Colm Imbert has warned that Trinidad and Tobago’s economy will suffer “profound implications” if Petrotrin is prevented from moving forward with its restructuring plan.
  • He said just yesterday he received a letter from Petrotrin asking for financial support by giving Government guarantees for financial facilities to three banks to the tune of TT$1.2 billion and when he signs this it immediately pushes this country’s debt profile up.
  • Imbert said these financing facilities need to be refinanced on or before October 15.

Source: Trinidad Express

10-year Treasury yield hits fresh 7-year high as bond market reopens Published: 09 October 2018

  • The yield on the benchmark 10-year Treasury note rose above 3.25 % in early trading today, returning to levels not seen in more than seven years. 
  • Bond experts have pointed to the robust economic data, signs of inflation and a glut of debt issuance as a reason for the rising rates.

Source: CNBC

IMF Cuts Forecast for Global Growth as Trade War Takes Toll Published: 09 October 2018

  • The IMF cut its forecast for global growth to 3.7% for this year and next, down from 3.9% previously.
  • It blamed escalating trade tensions and stresses in emerging markets for the reduction.
  • The policy lender warned of a recession in Argentina and slower growth in Brazil, while calling for sweeping reforms to shield Turkey’s economy following the recent drop in the lira.
  • Pakistan, meanwhile, has said that it will seek the country’s 13th IMF bailout since the late 1980s

Source: Bloomberg

Barbados Sees External Debt Swap Offer Ready in Weeks or Months Published: 05 October 2018

(Bloomberg) Barbados expects a debt restructuring offer with external creditors to be ready "in a matter of weeks or months," special adviser to the Barbados government Avinash Persaud said [today] during a webcast with the IMF. 

  • Discussions with foreign creditors "more complicated and it takes longer" than local debt restructuring. "We believe there is a path toward an adjustment" with external debt: Persaud 
  • IMF’s deputy division chief Bert van Selm said he sees "orderly process with good faith discussions" with domestic and external creditors 
  • Domestic debt restructuring offer "strikes the right balance" for government and credit holders: Van Selm 
  • Public debt of 157% of GDP is unsustainable "by any standard" and restructuring debt stock very important: Van Selm 
  • Government targets debt-to-GDP of 60% and primary surplus of 6% of GDP, Persaud said 
  • The government wants to "move toward a world where we can remove our exchange controls," Persaud said
  • Reserves should be around $2Bn Barbados dollars before easing exchange controls. "We are not going to do it in any rushed or rash way," Persaud said

Oil prices rise on Iran sanctions, outlook uncertain Published: 05 October 2018

  • Oil prices steadied just below four-year highs on Friday as world fuel markets tightened ahead of a new round of U.S. sanctions on Iranian oil exports due to be imposed in November.
  • Benchmark Brent crude oil LCOc1 was down 5 cents a barrel at $84.53 by 1230 GMT. On Thursday, Brent fell by $1.34 a barrel or 1.6%, but the contract remained on course for a gain of around 2 %for the week.
  • US. light crude CLc1 was up 25 cents at $74.58, a gain of more than 1.5% since last Friday.
  • Speculators have accumulated bullish long positions, betting on a further rise in prices to $100 per barrel by next.

Source: Reuters