• Jamaican Teas Limited (JAMT) reported improved profitability for the second quarter ended March 31, 2026 (Q2 2026), as stronger revenues and reduced investment losses supported an earnings rebound. Net profit rose to $26.16Mn from the net loss of $74.49Mn in Q2 2025.
• Revenue performance remained solid, supported by broad-based expansion across the company’s core business segments. Total revenues increased by 21.5% to $1.00Bn. Manufacturing revenues (17.0%) was driven largely by strong domestic demand. Export sales also improved by 8.0% in Q2 2026, despite a weaker year-to-date performance. Revenues within the Retail Division rose 7.0%. However, management noted that growth moderated compared to the prior quarter (+16.0%), reflecting reduced produce supplies following agricultural damage caused by Hurricane Melissa.
• The Real Estate Division also contributed positively to earnings growth, with revenues increasing by 7.0% as additional units at its Belvedere complex were completed and sold.
• Driven primarily by unrealised gains within its local investment portfolio, QWI Investments Limited recorded a narrower net loss of $51.0Mn compared $131.0Mn loss. Unrealised losses within its U.S. portfolio also fell.
• The company benefited from improved cost efficiencies during the quarter. Cost of goods sold as a percentage of revenues declined, contributing to stronger gross profit performance. Consequently, gross profits ended the quarter at $232.39Mn (+37.5%), while gross margins grew to 23.2% from 20.5%.
• Overhead expenses increased (+14.0%), reflecting continued pressures from higher wages, salaries and depreciation charges. However, finance expenses declined by 39.1%, largely due to debt repayments during the Quarter.
• Buoyed by higher revenues and the reduction in operating and finance costs, net profit margins improved to 2.6%, reversing the negative margin of 9.0% recorded in Q2 2025.
• Given the improved performance since the start of the year, net profits for the six months amounted to $4.49Mn (net loss of $9.40Mn in 2025).
• Looking ahead, management is cautiously optimistic despite ongoing economic uncertainty stemming from Hurricane Melissa’s impact on tourism and broader economic activity. While some tourism-related investments within QWI have weakened, gains in companies such as Caribbean Cement Company and TransJamaican Highway have helped offset some of those declines.
• JAMT shares stood at J$2.34 yesterday, reflecting a 0.9% increase year-to-date. The stock currently trades at a P/E of 24.3x, which is above the Junior Market Manufacturing Sector Average of 23.9x

(Sources: JAMT Financials & NCBCM Research)

• Bahamas Hotel and Tourism Association President Jackson Weech says the country’s tourism industry is on pace for a strong summer season, with major hotels in New Providence and Paradise Island already seeing bookings stretch into early July.
• Weech said the larger properties continue to benefit from “a very, very strong base,” supported by steady stay-over demand and transient visitors. He explained that this strong base of bookings, combined with short-term visitors, will last well into early July.
• He added: “It’s my expectation, …that we’ll have a very strong Q2 and certainly a great, great foundation for Q3.”
• Despite the positive outlook, Weech acknowledged that global developments could still impact the tourism sector during the summer months. “There are still some factors that are beyond our control that has the potential to impact our overall business picture,” he said, pointing to geopolitical tensions and rising oil prices.
• Increasing jet fuel costs could lead to more expensive airline tickets but suggested that changing travel patterns may ultimately work in The Bahamas’ favour. “I think individuals will continue to travel, and it may be that as opposed to crossing the proverbial pond, they would come to destinations that are that much closer in,” he said.
• He also noted that cruise tourism is expected to remain stable due to the country’s close proximity to the United States and strong connectivity through both airlift and cruise travel. A recent Travel and Tour World report highlighted that soaring fuel costs and extreme bunker price volatility are severely disrupting the industry, forcing cruise lines to aggressively shorten their Caribbean itineraries. As part of a resulting "emergency cruise diversification strategy" seen across nations like Jamaica, Barbados, and the Dominican Republic, operators are slashing distant ports of call to conserve fuel.
• In this environment, The Bahamas’ competitive port infrastructure and geographic proximity to major U.S. embarkation hubs could allow the country to capture a greater share of concentrated cruise traffic as operators optimise routes to manage costs more effectively.

(Source: Eyewitness News & Travel and Tour World)

• A high-level delegation of French business leaders and investors has expressed “strong interest” in Trinidad and Tobago’s potential as a gateway to the wider Caribbean and South American markets, according to a statement issued yesterday by the Office of the Prime Minister.
• The Office of the Prime Minister stated that the delegation met with Prime Minister Kamla Persad-Bissessar as part of the Government’s ongoing international investment engagement strategy aimed at attracting major investment, creating jobs, and driving economic growth in Trinidad and Tobago.
• According to the release, the meeting forms part of Persad-Bissessar’s broader vision to reposition Trinidad and Tobago as a premier investment hub in the Caribbean and Latin American region, while restoring the nation’s presence and credibility on the global stage.
• The meeting brought together representatives from several major French industries including aviation, energy, transport, ­construction, agro-processing, maritime services, manufacturing, infrastructure, luxury distribution, and technology.
• The release stated that discussions centred on investment opportunities in sectors considered critical to the country’s economic diversification agenda and long-term development strategy. These included transport infrastructure, aviation services, manufacturing, logistics, energy, food production, construction and technology-driven industries.
• Persad-Bissessar also stressed that the Government’s international engagement programme was aimed at delivering tangible benefits to citizens through increased investment, job creation, revenue generation and national development.

(Source: Trinidad Express)

• The conflict in the Middle East has disrupted supplies of crucial raw materials and pushed up prices of the printed circuit boards (PCB) used in almost all electronic devices, from smartphones and computers to AI servers, ​industry sources and executives said.
• The disruption is a fresh blow to electronics manufacturers which are already ​grappling with soaring memory chip costs and highlights the broadening impact of the Iran war that ⁠has wreaked havoc on supply chains, plastics, and oil supplies.
• The Institute of International Finance (IIF) said the data showed investors were willing to return quickly to ​emerging markets but warned this did not amount to a full return to pre-crisis optimism ​that spurred record inflows at the start of the year. PCB prices have been climbing since late last year, driven ​by a growing appetite for AI servers. Demand has been accelerating sharply since March as manufacturers scramble to secure ​raw material supplies and soften the impact of skyrocketing costs.
• In April alone, PCB prices surged as much as 40% from March, Goldman Sachs analysts said in a recent note. Cloud service providers are willing to accept further increases ​as they expect demand will outstrip supplies over the coming years, they added. The global PCB industry is projected ​to increase by 12.5% to reach $95.8 billion in 2026.
• The sharp rise in PCB prices was also driven by a shortage of other key materials, including glass fibre and copper foil, according to one source. Copper ​foil prices have surged as much as 30% so far this year, with ​the rally gaining ⁠momentum in March, the source added.
• Copper accounts for around 60% of total raw material costs in PCB manufacturing, according to Victory Giant Technology, a major Chinese PCB supplier for Nvidia. The Chinese firm warned earlier this month that the Middle ⁠East conflict ​could push up prices for key materials, including resin and copper. Multi-layer ​PCBs can cost around 1,394 yuan ($204) per square metre, with higher-end models for AI servers costing around 13,475 yuan, according to Victory Giant.

(Source: Reuters)

• For the quarter ending March 31, 2026, Dolla Financial Services Limited (DOLLA) saw a 55.0% jump in earnings to $187.09Mn, as lower credit loss provisions and leaner operating costs outweighed softer net interest income.
• Net interest income, the company’s primary source of revenue, declined by 3.3%, as a modest 2.1% increase in interest income was outweighed by a 24.1% rise in interest expense. The growth in interest income reflects the continued expansion of the loan portfolio, which grew by 15.0% year-over-year to $4.90Bn and is made up primarily of business loans that account for 90% of its portfolio.
• However, the decline in net interest income was largely driven by higher financing costs associated with the company’s recently issued $1.50Bn debt instrument in January 2026. The bond was issued in two tranches: an 11.00% 2029 bond and 2031 bond with a 12.00% coupon.
• Driven by lower operating expenses, there was a 12% expansion in operating margin to 8% from 40.5%. Operating expenses declined by 28.3% for the quarter, driven by a sharp 66.5% drop in provisions for expected credit losses to $35.33Mn. The company rebounded from last year’s fraud-related loan provisions and write-offs. It had been disclosed in October that it was impacted by a fraud incident in March, which ultimately resulted in higher credit loss provisions. However, following the write-offs recorded in FY2025 and the implementation of stricter controls, provisions declined. Administrative expenses were also down 5.7% to $167.10Mn, further increasing earnings. This was due to the full wind-down of its Guyana subsidiary and the absence of non-recurring forensic and legal costs related to the 2025 fraud investigation.
• Looking ahead, we expect further expansion in the company’s loan portfolio, driven by the recent acquisition of Evolve Loan Company and the continued deployment of proceeds from the bond raise. This should position the company for further growth in the coming quarters.
• However, there are risks. Although interest rates are lower than last year, they remain elevated and could stay higher for longer amid inflation risks stemming from geopolitical tensions in the Middle East. This has already begun to translate into higher local prices. Persistently higher inflation could lead the Bank of Jamaica to maintain, or even increase, policy rates. Consequently, this may compress the spread between borrowing and lending rates, and by extension, weigh on earnings.
• At the market close on Thursday, May 7, 2026, Dolla’s stock price had declined by 8.8% since the start of the year to J$2.50. At this price, Dolla trades at a Price-to-Book (P/B) ratio of 3.6x, which is above the Junior Market Financial Sector average of 1.5x.

• The National Export-Import Bank of Jamaica (EXIM) is encouraging business operators affected by Hurricane Melissa, particularly small and medium-sized enterprises (SMEs), to take advantage of its loan facilities.
• Manager of Loan Origination and Business Development, Hopeton Nicholson, said that the Bank continues to provide traditional lending to assist its clients affected by the hurricane in their recovery efforts.
• EXIM Bank provides traditional loan products focused on export development, trade financing, and SME growth, often with lower collateral requirements than commercial banks. These include short-term working capital (up to 180 days), medium-term loans for SME expansion, and foreign currency lines of credit for raw material importation. Among the products is the E-Commerce Funder, which is used to develop, upgrade or expand e-commerce infrastructure. The loan limit is $1.00Mn to $5.00Mn at a 5.0% interest rate (fixed), and the loan term is five years. No collateral or financial statements are required.
• There is also a Solar Energy Loan is designed for SMEs seeking to reduce energy costs, improve efficiency, and strengthen cash flow. It offers up to 85% financing, with loan amounts ranging from $5.00Mn to $50.00Mn at a fixed interest rate of 7.50%. The maximum repayment term is seven years.
• For exporters, the Bank offers a Modernisation Fund, Trade Credit Insurance (TCI), and the Insurance Policy Discounting Facility. The Modernisation Fund is for the acquisition of capital for retooling, refurbishing and upgrading facilities and equipment. The loan limit is $5.00Mn to $90.00Mn with a loan term of up to five years. The Insurance Policy Discounting facility provides crucial collateral support that enables businesses to access working capital, while the TCI coverage is designed to protect exporters against non-payment by covering commercial and political risks on gross invoice values.

(Source: JIS)

• The government of Cayman is working to restrict the grant of foreign business licences to most property development companies to protect local firms from international competition within the territory. Premier André Ebanks told the news press on Tuesday, May 5, 2026, that the government believes Cayman has enough local expertise that it does not need to approve more licences for foreign-owned businesses in that sector.
• That said, exceptions could be made for developments that involve cutting-edge methods or where the scale of the project is beyond the capacity of the firms on the island. His comments came as the government announced it is drafting legislation to allow the Cabinet to place a moratorium on the granting of Local Companies Control Licenses (LCCLs) in any sector.
• The aim is to target real estate development and property companies, which currently account for around half of all LCCLs. The LCCL regime is designed to allow exceptions to the rule that any business operating in Cayman must have at least 60% local ownership.
• The legislation will continue to be used in areas of the economy where specific expertise or global reach is required. International airlines, major branded hotels and advisory firms like EY and KPMG all operate under LCCLs. Healthcare providers like the Mayo Clinic referral office and Baptist Health operate under similar exemptions. Banks and law firms, however, are licensed separately.
• The Trade and Business Licensing Board, which assesses LCCL applications, has already been pushing back on LCCL applications in the real estate development or property management category. Chair Anne Storie told the Compass. “This category is overrun. We’ve seen an excessive amount of applications come through, and at this stage, we don’t see the need for any foreign ownership of these real estate development companies.”
• The surge in international interest in Cayman’s real estate market has been fueled by by strong demand from overseas investors, wealthy migrants and luxury buyers, which saw property sales top US$1.07Bn in 2025, exceeding the previous record set in 2021 by US$42Mn. Beyond its natural appeal, Cayman attracts global development firms through a foundational tax-neutral environment with no corporate or capital gains taxes, a transparent legal system, and the absence of restrictions on foreign property ownership. This has been further bolstered by the Golden Visa program, which offers residency for investments exceeding US$2.4Mn, and a thriving synergy with the financial services sector that has created sustained demand for luxury residential and commercial high-rises.
• Storie said the moratorium would also spare applicants the cost and frustration of pursuing applications that were unlikely to succeed. Existing LCCL holders will not be immediately affected. Storie confirmed that renewals would not be caught by the moratorium, saying they “will be reviewed individually depending on the stage of the project.”

(Sources: Cayman Compass, La Vida Golden Visas, Provenance Properties of Cayman Ltd.)

• The Bank of Mexico cut its benchmark interest rate in a split decision on Thursday, May 7, 2026, and said it ‌was ending an over two-year-long easing cycle as it balances concerns over above-target inflation with pressure to revive Mexico's slowing economy.
• "Looking ahead, the Governing Board estimates that it will be appropriate to maintain the reference rate at its current level," the central ⁠bank, also known as Banxico, said in a statement announcing the decision.
• The 25-basis point cut brings the rate to 6.50%, its lowest since May 2022. The 3-2 decision by the Central bank’s five-member board had been largely expected, bolstered by data released earlier on Thursday showing headline inflation slowed in April for the first time since December.
• Consumer prices in Latin America's second-largest economy rose 4.45% in the year through April, easing from March's 4.59% increase and below the 4.50% increase forecast by economists polled by Reuters. The closely watched ⁠core index, which strips out some volatile food and energy prices, also slowed to 4.26% from 4.45% in March and slightly below expectations of a 4.27% increase.
• Despite the recent easing, inflation remains well above the central bank's target of 3%. Analysts polled by Reuters said ahead of the decision that the cut ‌was ⁠likely to be the last for the foreseeable future, a view echoed by Bank of Mexico Governor Victoria Rodriguez, who recently said the central bank was "close to concluding the period of adjustments" to the interest rate.
• The bank's statement said the board members believe the current monetary policy is ⁠appropriately positioned to deal with risks stemming from the broader economic environment, including the conflict in the Middle East and its repercussions.

(Source: Reuters)

• Oil prices rose sharply on Thursday, May 7, 2026, following renewed clashes between U.S. and Iranian forces, further undermining the outlook for a durable ceasefire and a broader agreement to end the 10-week war. Oil prices jumped by as much as 4%, with WTI crude approaching US$98 per barrel and Brent crude closing near US$100.
• The renewed hostilities broke out as Washington was awaiting Iran's response to a U.S. proposal that would formally end the war but leave some issues unresolved for now. Iran’s top military command accused the U.S. of violating the ceasefire by targeting an Iranian oil tanker and another vessel entering the strait, while the U.S. military said it acted in self-defence after Iranian forces launched “unprovoked” attacks on guided-missile destroyers transiting the waterway.
• US President Donald Trump said three U.S. warships successfully exited the Strait of Hormuz undamaged, but warned that Washington would respond if Iran failed to sign a deal quickly. Nonetheless, U.S. Central Command stated that it does not seek broader escalation, underscoring the delicate balance between deterrence and avoiding a wider regional conflict.
• Further, the head of the International Energy Agency (IEA), Fatih Birol, warned that the world is currently losing around 14 Mn barrels of oil per day due to the conflict. Birol reiterated that the IEA remains prepared to take further action after member countries agreed in March to release 400 Mn barrels from emergency reserves.
• The continued disruption in Hormuz is likely to keep downside pressure on oil prices limited, while prolonged instability could sustain elevated inflation and tighter financial conditions globally. Consequently, markets are increasingly treating the crisis not as a temporary geopolitical disruption, but as a broader and more prolonged global energy-security shock with implications for inflation, trade flows, and monetary policy expectations.

(Sources: Reuters & Yahoo Finance)

• The Court of International Trade voted on Thursday, May 7, 2026, to invalidate President Trump’s 10% tariffs that he imposed in February 2026 under Section 122 of the Trade Act of 1974. It was a split vote, with two judges voting in favour of the small business plaintiffs and one dissenting.
• In the case, the plaintiffs argued that the tariffs circumvented the Supreme Court’s January 2026 ruling that struck down Trump’s blanket tariffs, which were imposed in April 2025 under the International Emergency ​Economic Powers Act (IEEPA). Those IEEPA tariffs are now in the process of being refunded to importers.
• After the Supreme Court ruled against Trump’s earlier IEEPA tariffs in January 2026, the White House announced new 10% tariffs in February 2026 under Section 122 of the Trade Act of 1974. Unlike the earlier tariffs, these were temporary measures designed to remain in place for up to 150 days.
• Thursday’s ruling marks another legal setback for the Trump administration’s signature trade policy. It also raises the question of whether the US government will be required to refund the additional set of tariffs. The administration is likely to appeal the decision.

(Source: Reuters)