• The number of Americans filing new applications for jobless benefits fell last week, but tepid hiring could raise the unemployment rate to 4.3% in August.
• Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 229,000 for the week ended August 23, the Labour Department said on Thursday. Economists polled by Reuters had forecast 230,000 claims for the latest week.
• In addition, the number of people receiving benefits after an initial week of aid, a proxy for hiring, also fell 7,000 to a seasonally adjusted 1.954 million during the week ending August 16, the claims report showed. The so-called continuing claims data covered the week during which the government surveyed households for August's unemployment rate.
• A shrinking labour market pool because of the Trump administration's immigration crackdown is softening the impact of lacklustre hiring on the unemployment rate.
• Economists said reduced labour supply suggests the economy needs to create less than 90,000 jobs per month to keep up with growth in the working population. Many expect the unemployment rate to edge up to 4.3% in August from 4.2% in July.
• Higher continuing claims mirrored consumers' deteriorating perceptions of the labour market. A survey from the Conference Board on Tuesday showed the share of consumers viewing jobs as "hard to get" jumped to a 4-1/2-year high in August.

(Source: Reuters)

• Speaking at the commissioning of a 130,000-gallon sectional water tank in Manchester, Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, reported that Jamaica’s agriculture sector recorded 13.7% growth in production during the second quarter of 2025. This growth reflects the sector’s resilience in the aftermath of Hurricane Beryl, which severely impacted the southern region of the island.
• “Normally, after an event like Hurricane Beryl, you would expect us to take two years or so for us to return to our [normal] production levels. But… we are already seeing great growth in our agricultural sector,” Minister Green stated.
• Highlighting improved water access across the agricultural sector, the Ministry provided pond liners to more than 32 farmers in Manchester last year. This intervention enabled the storage of over 450,000 gallons of water, bolstering crop production during drought conditions and enhancing long-term climate resilience.
• Minister Green further disclosed that farmers in southern Manchester and St. Elizabeth are poised to receive additional support as the Ministry enters the final phase of the Essex Valley Agricultural Development Project. “We are now on the final tranche of our Essex Valley system. We’ve already dug five new wells that are going to be commissioned in early 2026. In fact, right now, we are waiting on the pumps to come in,” he informed.
• As part of the project, 30 kilometres of roadwork have been completed, directly benefitting residents and farmers in South St. Elizabeth and South Manchester. In addition, a modern cold storage and agro-processing facility is under development in Downs, New Forest, Manchester, which is expected to serve farmers in South Manchester and St. Elizabeth.

(Source: JIS)

• Sagicor Select Funds Limited has announced that stockholders of both its Class B (Financial Select Fund) and Class C (Manufacturing & Distribution Select Fund) units have approved their respective Schemes of Arrangement at Court-Ordered Meetings held on August 19, 2025.
• The meetings, supervised by PricewaterhouseCoopers as scrutineers, recorded strong participation across in-person, proxy, and electronic voting.
• For Class B units, a total of 2.179 billion shares were represented, with more than 99.9% (2.177 billion) of votes cast in favour of the resolution. Similarly, for Class C units, 3.1823 billion shares were represented, with over 99.9% (3.1821 billion) approving the scheme and only a minimal number of votes against.
• Both outcomes comfortably surpassed the required 75% approval threshold, thereby confirming the passage of the resolutions and clearing the way for the implementation of the Schemes of Arrangement.
• Sagicor Select Funds introduced the Scheme of Arrangement to tackle a longstanding issue in its listed equity funds, SELECTF and SELECTMD, consistently traded at steep discounts to their Net Asset Values (NAVs) due to illiquid secondary market dynamics. To restore investor value and offer fairer redemption possibilities, SSFL proposed converting both into registered unit trust structures where a trustee redeems units at NAV.
• After board approval in mid-2024, the company pursued the required legal and regulatory steps, including filing with the Supreme Court and FSC.
• Upon successful shareholder votes, court sanction, and FSC registration, the funds will transform into Sigma-named unit trusts managed by Sagicor Investments and overseen by JCSD Trustee Services. This strategic shift is intended to bridge the price-NAV gap.
• On August 27^th, SELECTF and SELECTMD stock prices closed at $0.43 and $0.84, respectively. These represent significant discounts to NAVs of $0.552 and $1.243, respectively.

(Source: JSE and NCB Research)

• Brazil Finance Minister Fernando Haddad said on Wednesday, August 27, 2025, that the South American country might challenge in U.S. courts the steep tariffs imposed by the Trump administration on U.S. imports of Brazilian goods. He also noted that Brazil would not engage in lobbying efforts.
• S. President Donald Trump slapped 50% tariffs on several Brazilian goods this month, citing what he called a "witch hunt" against former President Jair Bolsonaro - who is on trial on charges of plotting a coup - and trade practices he said were unfair.
• Brazil has expressed indignation at the tariffs, noting that it has run persistent trade deficits with the United States. Further, due to uncertainty about what the future may hold, Haddad believes that world leaders may feel insecure about the U.S.
• Finance Minister Haddad also noted that the U.S. dollar remains a reserve currency and will continue to be for many years; however, he cautioned that weaponising the dollar would undermine its role, adding that countries cannot be prevented from conducting bilateral trade in local currencies if that lowers transaction costs for them.

(Source: Reuters)

• The Ministry of Finance reported a $29.4Mn surplus for May 2025, marking a $10.7Mn year-over-year improvement, as reduced government spending more than offset softer revenue collections.
• Preliminary data showed overall revenue slipped 4.3% ($12.2Mn) to $268.2Mn during the month. However, an 8.7% ($22.9Mn) contraction in expenditure to $238.8Mn underpinned the stronger fiscal position.
• Tax receipts grew modestly, up 1.5% ($3.4Mn) to $237.9Mn, led by higher Value-Added Tax (VAT) inflows, which rose $18.7Mn to $119.2Mn. Gains were also recorded in taxes on financial and capital transactions (up $4.4Mn to $11.5Mn) and taxes on use and permission to use goods (up $2.6Mn to $24.0Mn). By contrast, property tax collections fell $11.4Mn to $10.5Mn, as last year’s numbers had been boosted by arrears payments.
• Non-tax revenue saw a steep 34% ($15.6Mn) decline to $30.3Mn, reflecting lower interest and dividend receipts.
• On the expenditure side, recurrent outlays totalled $225.7Mn, down 7.1% ($17.2Mn) from the prior year. Subsidies fell by $8.7Mn to $11.2Mn, while other payments dropped by $9.0Mn to $16.3Mn, largely due to timing differences on insurance premium payments. Capital expenditure decreased by $5.6Mn to $13.1Mn.
• Meanwhile, the government’s debt stock grew by $72.3Mn in May. Borrowings of $224.4Mn were sourced entirely from the domestic market, with repayments of $152.1Mn directed almost exclusively to domestic creditors (99.5%), and the remainder (0.5%) to foreign obligations.

(Source: CariCRIS)

• A downturn in British retail sales entered its 11th consecutive month in August, and shops raised their prices by the most since late 2023, a Confederation of British Industry survey showed on Wednesday.
• The CBI's monthly gauge of how retail sales compared with a year earlier was little changed at -32 from July's -34 but better than a dip to -46 in June. The outlook for September improved to -161.
• "Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector," Martin Sartorius, principal economist at the CBI said.
• Many employers have said they are feeling the strain from a decision by finance minister Rachel Reeves to make them pay higher employment taxes from April at the same time as a sharp increase in Britain's minimum wage.
• The CBI's measure of average selling prices in the 12 months to August rose to +65, the fastest rate since November 2023, from -35 in May, but the expected increase for September was a slower +43.

__________________________
¹The CBI’s monthly retail gauge shows the net balance of retailers reporting higher versus lower sales compared with a year earlier. A negative number means more retailers saw sales fall than rise, with September’s –16 indicating sales remain weak but the decline has eased from June’s sharper –46 and August’s -32.

(Sources: Reuters)

• European banks have seen widespread unauthorised direct debits from PayPal accounts, the German Savings Banks Association (DSGV) says.
• The German newspaper Sueddeutsche Zeitung (SZ) says payments worth in the region of 10 billion euros (£8.6bn)have had to be blocked, after PayPal's fraud-checking system failed.
• It said payments were paused on Monday when lenders reported millions of suspicious direct debits from the payment firm. The DSGV confirmed to the BBC there had been "incidents involving unauthorised direct debits initiated by PayPal against various credit institutions".
• The BBC has approached PayPal for comment. It told Reuters "certain transactions from our banking partners and potentially their customers" had been affected by a temporary service interruption.
• The DSGV said PayPal had "acknowledged the disruptions" and "assured" it had resolved the problem. PayPal aims to filter out scams before they can get to banks through a security system. In particular, it aims to deal with fake direct debits which have been set up by criminals.
• There are many ways they are set up, but one typical method is tricking a person into handing over their details by pretending to be a bank or financial institution by phone. According to SZ, PayPal's filter system did not work properly on Monday, resulting in unchecked direct debits being sent to banks alongside legitimate ones.

(Source: BBC)

• Wisynco Group Limited (Wisynco) has announced two major investments as part of its growth strategy.
• The group acquired a 30% equity stake in Ringtail Holdings Limited (RHL), the parent of Select Brands Limited (SBL), and purchased the business and production assets of Ringtail Bottlers Limited. These acquisitions secure exclusive co-packing rights for Stone’s Ginger Wine and other brands within Select Brands’ portfolio.
• While Select Brands will continue to operate independently, Wisynco will have board presence at both Ringtail Holdings Limited and Select Brands Limited. Moreover, the alliance will explore various strategic and commercial synergies moving forward in the areas of distribution, product innovation, manufacturing, marketing and promotion.
• The acquisition is a notable step in Wisynco’s push to expand its beverage and spirits portfolio and could contribute to its long-term growth and market diversification.
• Group CEO Andrew Mafood noted that “…. We are proud to take on its production and ensure it continues to thrive both here and abroad.” Likewise, David McConnell, co-managing director of Select Brands, noted that leveraging Wisynco’s production and distribution strengths alongside Select Brands’ expertise in premium brand-building can “…optimise the performance of our global alcohol beverage portfolios while continuing to serve Jamaican consumers…”.
• Mahfood added, “Now was the right time for this partnership. It complements Wisynco’s broader growth strategy while aligning us with the preeminent leader in wines, spirits and the premium on-premise trade.”
• At market close on August 26^th, Wisynco’s stock traded at $21.46, which is marginally higher than the $21.44 at the start of the year. Likewise, it traded at a P/E ratio of 17.17x, which is marginally higher than the Main Market Manufacturing and Distribution average of 17.06x.

(Source: JSE, NCBCM Research )

• The Bank of Jamaica (BOJ) is projecting that gross domestic product (GDP) growth in Jamaica will recover in the range of 1.0% to 3.0% for the financial year 2025-26, largely due to the performance in the agriculture, mining, and tourism sectors.
• Governor Richard Byles shared this projection during a recent press conference at the Bank’s headquarters in downtown Kingston. However, he noted that expectations were for growth to cool thereafter. “Subsequently, growth is forecast to normalise in the range of 1.0% to 2.0%. Employment levels remain high, even as anecdotal data suggest that wage pressures are moderate,” he said.
• Meanwhile, he noted that the BOJ estimates that the domestic economy grew in the range of 1.0% to 2.0% for the June 2025 quarter, resulting from expansion in most industries.
• Notwithstanding the positive economic outlook, Governor Byles pointed to uncertainties related to the policies of the United States (US), as that country continues to reset relationships with its trading partners and tighten its immigration policies.
• “These developments may slow the pace of economic activity and could cause inflationary pressures in the US, which could adversely affect the Jamaican economy,” he said.

(Source: JIS)

• A recent agreement signed by the Dominican Republic and Argentina aims to bolster bilateral tourism, recognising the sector as a key instrument for regional integration and economic development. The joint declaration was signed by the Dominican Minister of Tourism, David Collado, and the Argentine Secretary of Tourism, Environment, and Sports, Daniel Scioli.
• The agreement seeks to implement tourism facilitation measures and to coordinate joint promotional programs that will help increase visitor flow between the two nations. It also establishes an exchange of experiences and best practices for attracting tourism investments.
• Minister Collado highlighted the importance of strengthening ties with Argentina, which has become the Dominican Republic’s third-largest source of tourists. Minister Scioli emphasised the impact of tourism on both economies and cultural diversity.
• During the meeting, President Luis Abinader expressed his hope that the agreement would encourage more Argentinians and Dominicans to visit both countries.

(Source: Dominican Today)