• S. wholesale inventories increased slightly less than initially thought in July, suggesting businesses were not rushing to rebuild inventory after stocks were depleted in the second quarter.
• Wholesale inventory edged up 0.1%, after rising by an upwardly revised 0.2% in June, the Commerce Department's Census Bureau said on Wednesday, September 10, 2025. Economists had expected wholesale inventories to rise by 0.2%, unchanged from the flash estimate, compared to the 0.1% uptick originally reported for the previous month.
• Inventories, a key part of gross domestic product, gained 0.2% in June and further advanced 1.3% on a year-over-year basis in July. Wholesale stocks of motor vehicles dropped 1.6%, but stocks of apparel surged 1.9%, while those of prescription medication increased 1.8%. Grocery inventories increased 2.0%.
• Inventories decreased at a US$32.9Bn annualised rate in the second quarter, subtracting 3.29 percentage points (pps) from GDP. That was, however, more than offset by a record 4.95pp contribution from a smaller trade deficit.
• Sales at wholesalers jumped 1.4% in July after rising 0.7% in June. With sales increasing by much more than inventories, the inventories/sales ratio for merchant wholesalers edged down to 1.28 in July from 1.29 in June. This implies that it would take wholesalers 1.28 months to clear shelves, down from 1.29 months.

(Sources: Reuters & NASDAQ)

• In its latest Country Risk Report, Fitch Solutions pointed out that Jamaica’s updated economic policy framework aims to foster a strong, inclusive environment by investing in education, implementing prudent economic policies, reducing crime, and promoting environmental sustainability and resilience.
• Fitch sees the potential for further improvement in Jamaica’s enabling environment over the near and medium term, driven by sustainable macroeconomic policy frameworks, microeconomic policy enhancements, and continued investment in security.
• In recent years, the government has made significant progress in improving macroeconomic policies and strengthening institutions, helping to reduce public debt, stabilise inflation and inflation expectations, and bolster Jamaica’s external position.
• These policies are expected to continue, supported by robust policy and institutional frameworks and a political consensus that prioritises continued fiscal and monetary stability and sustainability. Specifically, Fitch pointed to strengthened monetary and financial frameworks, through inflation targeting, de-dollarisation, and enhanced banking regulation, that are reinforcing long-term macroeconomic stability and should support investment and growth.
• However, while a high debt burden has historically been a major obstacle to growth in Jamaica, that debt reduction alone will be insufficient to accelerate growth. Low productivity, the high economic cost of crime, skills gaps, elevated energy costs, infrastructure weaknesses and exposure to global economic shocks and natural disasters will continue to weigh on growth and dynamism.
• To address these challenges, the Jamaican government has outlined an economic development strategy that seeks to leverage its improved macroeconomic stance to drive progress in other areas critical to long-term growth.
• Modern infrastructure development is at the heart of Jamaica’s 2025/2026 economic agenda. It focuses on transportation, water, healthcare, energy, broadband access, and special economic zones (SEZs). The government also aims to attract investment in oil and gas, diversify energy sources, and grow the global services sector through improvements in infrastructure, workforce skills, digital transformation, and regulatory reforms.
• However, despite Jamaica's stated goal of investing in infrastructure development, lingering budget execution issues may constrain the government's ability to fully implement its ambitious policy agenda.

(Sources: Fitch Solutions)

• Net Remittance Inflows to Jamaica increased year-over-year in June 2025, by 2.8% to US$267.5Mn according to data sourced from the Bank of Jamaica’s (BOJ’s) remittance bulletin. The increase was primarily due to a US$8.2Mn (2.9%) increase in total remittance inflows. However, this was marginally offset by a 5.4% rise in remittance outflows.
• The increase in total remittance inflows was attributed to higher flows via the Remittance Companies channel and partly offset by a decline via the Other Remittances channel.
• Amid the June 2025 increase, the U.S. remains the largest source market for remittance flows to Jamaica. The U.S. accounted for 68.2% of total flows, down from the 68.5% recorded for June 2024. The United Kingdom (11.4%), Canada (9.9%) and the Cayman Islands (6.2%) were also notable sources.
• Looking ahead, the Trump administration's policy changes for trade and immigration pose risks to remittance inflows to Jamaica. Recently, the administration announced a 1.0% excise tax on cash-based remittances. However, local remittance firms expect little fallout as strong digital adoption by consumers and years of investment in alternative remittance channels could act as key buffers.

 (Sources: BOJ & NCBCM Research)

• Mexico expects its budget deficit to fall slightly in 2026 to 4.10%, as GDP growth is projected to increase, the finance ministry said during the government's budget presentation.
• The deficit is expected to close 2025 at 4.32%, while the government maintains a pledge to support social programs and provide financial backing for state-owned oil company Pemex, which carries a significant debt load.
• Finance Minister Edgar Amador said, "Although the international environment still presents risks stemming from uncertainty and trade tensions, it also opens up opportunities that we must seize." The government forecasts Latin America’s second-largest economy to expand between 1.8% and 2.8%, an increase of 1.3 percentage points on both ends of the range. This projection is higher than both the IMF’s growth forecast of 1.4% in 2026 and the Bank of Mexico’s most recent forecast of 1.1%.
• The ministry also placed its inflation forecast for the end of 2026 at 3.0%, in line with the Bank of Mexico’s target, which is expected to be reached by the third quarter of next year. Along with a slowdown in inflation, the ministry anticipates a more accommodative monetary policy stance. The Bank of Mexico's benchmark interest rate is projected to close at 7.25% in 2025, 75 basis points lower than previously expected, and to decline further to 6% by 2026. Last month, the rate was lowered by 25 basis points to 7.75%, its lowest in three years.
• In terms of state-owned enterprises, Pemex is projected to receive 263.5Bn Mexican pesos (US$14.14Bn) in 2026 to help meet debt and loan payments.
• The budget proposal also indicated that Mexico’s General Import Tax will be reviewed in 2026 to support national development, including potential tariffs on countries such as China that do not have a trade agreement with Mexico. In addition, the draft budget announced new excise taxes aimed at discouraging consumption of certain products, like soft drinks, video games, and nicotine pouches.

 (Source: Reuters)

• Brazilian coffee exports to the United States fell 46% in August, while shipments to Latin American neighbours increased, according to coffee exporters group Cecafe. Cecafe President Marcio Ferreira.
• Brazil is the world's largest producer and exporter of coffee, while the United States is the largest consumer. U.S. imports of Brazilian coffee fell to 301,099 bags in August, down from 562,723 in the same month last year, following the imposition of a 50% tariff on most Brazilian goods, including coffee.
• The tariffs have also affected Brazil’s instant coffee industry. According to ABICS, Brazil’s instant coffee exports to the U.S. in August fell 59.9% to 24,460 60-kilogram bags, compared to 65,914 bags in the same month last year.
• Despite a decline in total exports to Germany, the country remained the largest importer of Brazilian coffee, receiving 414,109 60-kilogram bags in August. Meanwhile, exports to Mexico and Colombia rose 90% and 578%, reaching 251,166 and 112,948 bags, respectively.
• Brazil's national crop agency Conab, and the International Coffee Organisation have warned that the tariffs could push coffee prices higher. As a result, Brazil, which incidentally is also the world’s second-largest coffee consumer, may experience increased domestic prices, potentially affecting inflation.

• While second quarter (Q2 2025) Gross Domestic Product (GDP) data were weaker than expected, Fitch Solutions has maintained its growth forecast for 2025 at 1.4%, with the Q2 data not moving the needle on its outlook. Additionally, the weak Q2 growth figure is expected to have little impact on the Bank of Canada’s (BoC) interest rate calculus, given the strength of the economy. This leaves Fitch’s expectation that the BoC will lower the policy rate by 50bps by year-end 2025 intact.
• Canada’s real GDP contracted 0.4% quarter over quarter (QoQ) in Q2 2025 for a drop of 1.6% on an annualised basis, falling more than the consensus expectation of a 0.7% contraction. The lacklustre Q2 real GDP print was driven by deteriorating trade dynamics, with exports falling significantly (-7.5%), driven by contractions in both goods (-9.2%) and services (-1.4%) exports. Additionally, business investment fell for a second straight quarter, contracting by 0.6% on the back of heightened business and trade uncertainty, with a notable drop in machinery and equipment investment, which fell 9.4%.
• However, the downbeat headline growth figure masks a more resilient domestic economy. Final domestic demand grew by 0.9% in Q2, recovering from a weak -0.2% in Q1 and driven primarily by strong household consumption growth. Additionally, residential investment grew by 1.5% in Q2, up from -3.2% in Q1, contributing 0.12pp to the headline growth rate and offsetting the weakness seen in business investment that subtracted 0.11pp from the Q2 figure.
• Looking ahead, while a trade deal with the United States (U.S.) remains elusive, uncertainty in the trade relationship will continue to ebb, with Canada removing many of its reciprocal tariffs on U.S. goods and existing U.S. tariffs on Canadian goods only applying to a small subset of non-USMCA-compliant goods.
• Finally, with Fitch expecting both looser fiscal and monetary policy through the end of the year, the agency remains relatively upbeat that the Q2 contraction will be followed by steady, albeit uninspiring, growth. Of note, advance estimates of July’s growth figure show a 0.1% increase, with wholesale trade, real estate, and mining showing signs of strength, underpinning Fitch’s expectation of modest, but positive, growth in the second half of 2025 (H2 2025).

(Source: BMI, a Fitch Solutions Company)

• The Environmental Protection Agency (EPA) on Tuesday, September 9, 2025, proposed new measures aimed at speeding the construction of infrastructure needed for the rapid buildup of data centres for artificial intelligence that would enable companies to start building before obtaining air permits.
• The proposal comes six months after the EPA announced an initiative called Powering the Great American Comeback that prioritised the agency's focus on rapidly building power generation to meet soaring demand from data centres. “For years, Clean Air Act permitting has been an obstacle to innovation and growth,” EPA Administrator Lee Zeldin said. “We are continuing to fix this broken system."
• The EPA proposal will redefine the pre-construction requirements for power plants, manufacturing facilities and other infrastructure to enable companies to start some construction that is not related to air emissions prior to obtaining Clean Air Act construction permits.
• The Trump administration has been focused on winning the race to rapidly develop and scale up the use of AI across the United States (U.S.) and has already launched a package of executive actions aimed at boosting energy supply to power its expansion.
• Top economic rivals, the United States and China, are locked in a technological arms race to secure an economic and military edge. The huge amount of data processing behind AI requires a rapid increase in power supplies that are straining utilities and grids in many states. The Clean Air Act's New Source Review program will not allow construction of major facilities before they obtain air permits.
• Under the Trump administration, the EPA has launched what it calls the largest deregulatory actions in the agency's decades-long history, including a move to repeal the scientific and legal underpinning for regulating greenhouse gas emissions that most scientists and environmentalists agree is driving climate change.

(Source: Reuters)

• Scotia Group Jamaica Limited (SGJ) reported a marginal 1.8% year-on-year (YoY) increase in net profit of $5.55Bn for the third quarter ended July 2025 (Q3 2025). The relatively flat earnings reflect higher cost growth, which outpaced revenues.
• SGJ’s revenue grew 8.7% to $16.25Bn YoY. This growth was driven by improved performance across all business segments.
• Net interest income after expected credit losses rose by 7.1% to $11.77Bn, amid continued momentum across the bank’s core lending engines. Mortgage loans led the charge with a 22.0% surge, while consumer lending, through the Scotia Plan portfolio, grew 17.0%.
• Net insurance revenue rose 22.7% to $0.74Bn, driven by strong performance across the groups insurance subsidiaries. Scotia Jamaica Life Insurance Company’s (SJLIC’s) net insurance business revenue rose 6%, alongside an 8% rise in gross written premiums. Meanwhile, Scotia General Insurance Agency (SGIA) also delivered strong results, with gross written premiums up 65% and policy sales increasing 57% year-over-year, underscoring robust demand and effective distribution in the general insurance segment.
• Additionally, the group’s fee and commission income rose 13.8% to $1.91Bn and net gains on foreign currency activities rose 10.6% to $2.52Bn.
• Notwithstanding the healthy 8.7% revenue growth, operating expenses grew faster at 14.9% to $8.16Bn largely reflecting a 16.9% increase in salaries and staff benefits and a 14.2% increase in other operating expenses. Management pointed to increased billings and technology investments as they focus on improving digital capabilities for clients. While the cost-to-income ratio rose during the quarter due to front-loaded expenditure, these initiatives could deliver long-term productivity gains and strengthen cost discipline over time.
• While Q3 earnings growth was relatively subdued, for the nine months it increased by 5.5%, supported by strong performance in the first quarter.
• SGJ’s stock price has increased by 2.4% year-to-date, closing at $54.84 on Monday, September 8, 2025. At this price, the stock is trading at a price-to-book (P/B) ratio of 1.16x, which is in line with the Main Market Financial Sector’s average of 1.19x

(Source: JSE & NCBCM Research)

• The Jamaica Stock Exchange (JSE) has announced the appointment of Mr. Livingstone Morrison, OD, as its new Chief Executive Officer, effective September 8, 2025. Mr. Morrison succeeds Dr. Marlene Street Forrest, CD, who is retiring after more than two decades of exceptional and transformative leadership.
• Mr. Morrison brings to the role a distinguished record of executive leadership and regulatory expertise within the Caribbean’s financial sector. He most recently served as Advisor to the Governor of the Central Bank of Belize and previously held the position of Deputy Governor at the Bank of Jamaica for over a decade. A Chartered Accountant, he is also a former Deputy Chairman and Director of the JSE and served as Chairman of its Regulatory & Market Oversight Committee.
• The Board acknowledges the trailblazing leadership of Dr. Street Forrest, who joined the Jamaica Stock Exchange (JSE) in 2000 and was appointed Managing Director in 2017, following thirteen (13) years of distinguished service as General Manager. In recognition of her exceptional contribution to the development of Jamaica’s capital markets, Dr. Street Forrest will be conferred with the prestigious Order of Jamaica on October 20, 2025. This national honour affirms her visionary leadership and enduring impact on the nation’s financial landscape. She was previously conferred with the Order of Distinction (Commander Class) in 2016 for her outstanding role in advancing the growth of the JSE.
• Her legacy is marked by transformative achievements, including the demutualisation of the Exchange, the establishment of the Junior Market, the modernisation of trading platforms, and the expansion of investor access and participation. Under her stewardship, the JSE was twice recognised by Bloomberg, in 2015 and 2018, as the world’s best-performing stock exchange.

(Source: JSE)

• Brazilian President Luiz Inacio Lula da Silva said on Monday that more trade and financial integration among the BRICS group of developing nations would help mitigate the effects of protectionism.
• A virtual meeting, which lasted 1-1/2 hours, brought together leaders from Brazil, Russia, India, China, South Africa, Egypt, Indonesia, Iran, the United Arab Emirates, and Ethiopia, Brazil's government said. The group discussed the risks posed by the resurgence of unilateral measures, particularly in international trade, and explored ways to strengthen mechanisms for solidarity, coordination, and trade among BRICS nations.
• The 50% levies on most Brazilian exports are linked to U.S. trade measures affecting Brazil. U.S. tariffs on Indian goods were doubled last month to as high as 50% in response to India's continued imports of Russian oil. India's Prime Minister Narendra Modi noted that increasing barriers and complicating transactions would not help, nor would the linking of trade measures to non-trade matters, according to a speech shared by India's Foreign Ministry.
• Chinese leader Xi Jinping said during the meeting that certain countries had launched trade and tariff wars, impacting the world economy and international trade rules.

(Source: Reuters)