• GraceKennedy Limited (GK) has advised that the company repurchased 22,000 GraceKennedy shares under the ‘GraceKennedy Share Repurchase Programme’ between November 20 and 21.
• In a note to the Jamaica Stock Exchange (JSE), GK advised that the purpose of the purchase was to enhance shareholder value and that the maximum intended repurchase is up to 1% of the shares in issue (approximately 9,950,000 shares). The actual repurchased as at November 21 is a total of 22,000 shares.
• The company also noted that the source of funding of the purchase was the company’s cash flows, and the shares were purchased on the open market via its brokers.
• When a company buys back its shares from the stock market, it reduces the number of outstanding shares and increases the value of the remaining shares. Additionally, earnings per share (EPS) and return on equity (ROE) tend to rise, which may attract more investors, and given the increased scarcity of shares, this could drive up demand and potentially lead to an increase in the share price.

(Source: JSE)

• Jamaica's Artificial Intelligence Task Force has been officially established. Chairman of the task force, Christopher Reckord, says the group was officially formalised in August and has met a few times since then. Speaking at the Tech Beach retreat last Friday, Mr. Reckord highlighted that the main areas being considered so far include data privacy and security and the ethical use of artificial intelligence.
• The key function of the task force is to conduct Artificial Intelligence research and provide an evidence-based foundation for the development of a National AI Policy.
• Earlier in the year, Minister responsible for Skills and Digital Transformation, Senator Dr. Dana Morris Dixon, shared plans for the establishment of the task force. “The Task Force’s research will comprehensively analyse the current state of AI in Jamaica, including research and development activities, adoption levels, and challenges faced by various sectors of the economy,” Senator Morris Dixon said.
• She noted that the Task Force is also expected to identify opportunities for adopting AI technologies, potential economic growth and development areas, and potential social impacts.
• “We must understand the risks and implement the necessary safeguards to allow us to respond to the rapid rate of technology change and to, ultimately, scale with confidence,” the Minister emphasised.

(Sources: RJR News & JIS)

• According to a report from the Economic Commission for Latin America and the Caribbean (ECLAC), Latin America and the Caribbean need to rapidly boost spending to up to 4.9% of gross domestic product (GDP) annually by 2030 to meet their climate targets.
• The ECLAC report presented at Dubai's COP28 summit said the region must spend between 3.7% to 4.9% of GDP annually, up from just 0.5% in 2020, amounting to total investments of $2.1Tn to $2.8Tn by 2030.
• This implies the "availability of substantial but not unattainable amounts - and the time to act is now," ECLAC Executive Secretary Jose Manuel Salazar-Xirinachs said.
• Climate mitigation - mostly projects around transportation as well as energy, infrastructure, and deforestation - would take up the lion's share of spending, ECLAC said, while a remaining third would need to go toward adaptation methods. These include early warning systems, combating poverty, protecting coasts, and sanitizing water.
• Climate change - excluding the impacts of extreme phenomena - could strip 10% off labour productivity in some countries, it added, cutting potential for economic growth.
• The study pointed to extreme weather already plaguing parts of the region and devastating some agricultural sectors, such as core farmlands across Uruguay, Brazil, and Argentina.

(Source: Reuters)

• A dramatic and deadly attack on a gold mine in Peru last Saturday has thrown a spotlight on illegal miners and criminal gangs targeting mines, which in recent years has left scores dead and cost billions of dollars in losses, according to industry and government officials.
• Nine workers were killed and ten others gravely injured in the latest attack, where men armed with explosives raided and took hostages at a mine belonging to Poderosa, one of Peru's top gold producers. The government blamed illegal miners and criminal groups.
• The attack has highlighted a growing risk for miners in the Andean nation, the world's no. 2 copper producer and an important source of gold and silver. "Security is now one of the main costs," Poderosa corporate affairs manager Pablo de la Flor told Reuters after the attack. "Illegal miners and criminal groups represent a terrible alliance for the sector."
• The impact is showing up on balance sheets, a headache for firms and Peru's government as it battles to dig out of a recession, with mining the country's main economic engine.
• A recent study by the local industry chamber the National Society of Mining, Petroleum and Energy of Peru, said illegal gold mining is responsible for about $6Bn in annual losses, some 2.5% of domestic GDP.
• Illegal mining in Peru moves more money than drug trafficking, between $3Bn and $4Bn per year, according to government data. De la Flor says illegal mining has grown thanks to a program designed to formalize artisanal miners, called REINFO (Registro Integral de Formalización Minera), which provides temporary licenses to small mines.
• Peru's Ministry of Energy and Mining did not immediately respond to a request for comment on the issue. On Sunday night, the ministry released a statement saying it would look at REINFO to identify those taking advantage of the program.

(Source: Reuters)

• Job openings in the U.S. fell to a 2.5-year low in October, signalling that higher interest rates were impacting demand for workers and fuelling expectations that the Federal Reserve's tightening cycle might be ending.
• The Job Openings and Labour Turnover Survey (JOLTS) revealed a ratio of 1.34 job vacancies for every unemployed person in October, the lowest since August 2021. However, fewer resignations could help ease wage inflation over time.
• Of note, financial markets anticipate a rate cut in response to larger-than-expected declines in unfilled jobs, coupled with recent data showing a subsiding inflation trend. Some analysts project a rate cut as early as the second quarter of 2024.
• Job openings declined across sectors, with significant drops in healthcare and social assistance, finance and insurance, and real estate. However, the information sector saw an increase in job openings.
• Hiring slipped, especially in accommodation and food services, a sector that had driven job growth. Resignations also decreased, suggesting slower wage growth and a potential easing of price pressures in the economy.
• Despite the gradual easing of the labour market, layoffs remain relatively low. The Institute for Supply Management (ISM) reported growth in services employment, with some industries expressing positive expectations while others cited challenges, such as increasing prices in public administration.

(Source: Reuters)

• The Kremlin confirmed that the OPEC+ group's agreed oil production cuts will take time to show results, citing inertia in the oil market.
• President Putin is set to visit the United Arab Emirates and Saudi Arabia. Putin is also scheduled to host Iranian President Ebrahim Raisi in Moscow. Discussions on oil market cooperation within the OPEC+ format are anticipated during Putin's Gulf trip. Putin will also hold talks with Saudi Arabia's Crown Prince Mohammed bin Salman.
• OPEC+ recently announced voluntary supply cuts of approximately 2.2 million barrels per day, including extensions of existing cuts by Saudi Arabia and Russia. The oil market responded sceptically to these cuts, with a 2% fall in prices last week.
• Putin's Gulf visit aims to strengthen ties and alliances. Besides energy discussions, topics such as Russia's military operation in Ukraine will be on the agenda. Putin seeks to build global alliances beyond Western countries and address regional issues, including the war in Gaza during talks with Iranian President Raisi.

(Source: Reuters)

• Jamaica’s Minister of Finance, Dr Nigel Clarke, has officially entered into a financial advisory services agreement with the International Finance Corporation (IFC), the private sector subsidiary of the World Bank. This groundbreaking agreement is a pivotal step in developing and structuring the National Broadband Project, which is set to be established as a dynamic public-private partnership (PPP).
• This significant milestone was achieved during a momentous signing ceremony on December 4^th, within the bustling backdrop of the 28th session of the United Nations Conference of the Parties (COP 28) held in Dubai. During the signing ceremony, Dr Clarke emphasised the Jamaican government’s unwavering commitment to ensuring equitable access to affordable, dependable, high-speed broadband services for all its citizens.
• He echoed the sentiments expressed by Prime Minister Andrew Holness, underscoring the critical role that accessible broadband plays in transforming the nation into a digital society poised for heightened productivity and accelerated growth.
• Dr Clarke further elucidated, stating, “This is an essential building block of the transformation to a digital society which, in turn, promises to unleash greater productivity and faster growth. However, this vision cannot be affordably realised if all broadband providers have to reach all homes entirely on their own proprietary networks.”
• Highlighting the Jamaican government’s proactive stance, the statement issued during the signing ceremony disclosed plans to fortify the nation’s broadband infrastructure through GovNet. GovNet is envisioned as a secure network platform that will serve all ministries, departments, and agencies.

(Source: Caribbean National Weekly)

• Minister of Tourism, Hon. Edmund Bartlett, on Thursday, announced that a record 1.05Mn airline seats have been secured from nearly six thousand flights coming into Jamaica out of the United States during the upcoming winter season.
• With just over two weeks for winter travellers to start their vacations, in anticipation of a record winter tourist season, Minister Bartlett says: “This surge in airlift represents an increase of 13% over winter 2022/2023, where we recorded a whopping 923,000 airline seats.”
• “To date, ten airlines have some 5,914 flights booked out of key US gateways to the Sangster International Airport in Montego Bay and Norman Manley International Airport in Kingston between January and April 2024, adding to the flurry expected over the 2023 Christmas holiday period,” Minister Bartlett explained.
• “These numbers reflect the ongoing effort of the Ministry of Tourism, through the Jamaica Tourist Board (JTB) as our marketing arm, working alongside our international and local partners in the travel and hospitality sectors, to ensure continuous growth in our tourism industry,” says Minister Bartlett.
• He also disclosed that “already for the period, January to November 29, 2023, preliminary figures indicate that some 2.5Mn stopover visitors have graced our shores, accounting for an 18% increase over the same period in 2022 and a 10% increase over the same period in pre-pandemic 2019.”
• “If we continue on this impressive growth trajectory, we will be on track to meet our new projections of 4 million visitors and foreign exchange earnings of US$4.1Bn by year-end,” asserts Minister Bartlett.

(Source: JIS)

• Voters in Venezuela rejected the International Court of Justice's (ICJ) jurisdiction over the country's territorial dispute with Guyana. Instead, they backed the creation of a new state in the potential oil-rich Esequibo region in a Sunday referendum.
• Last week, the court barred Venezuela from taking any action that would change the status quo in the area, which is the subject of an active case before the ICJ. However, President Nicolas Maduro's government went ahead with a five-question "consultative" referendum.
• All questions passed with more than 95% approval, according to electoral authority president Elvis Amoroso, who said at least 10.5 million votes were cast for 'yes' but did not confirm the number of voters.
• Some political and security analysts have called the referendum a show of strength by Maduro and a test of support for his government ahead of a planned 2024 presidential election. The court said in April it had jurisdiction, though a final ruling on the matter could be years away.
• The Sunday vote has caused anxiety in Guyana, with the government urging citizens to keep calm. Guyana's President Irfaan Ali participated in a patriotic rally on Sunday, joining hundreds of flag-waving supporters. He has said the ICJ ruling on Friday prohibits Venezuela from "annexing or trespassing upon Guyanese territory".
• On Wednesday, Brazil said it had intensified "defensive actions" along its northern border amid the territorial dispute.

(Source: Reuters)

• Panama is eyeing a sharp cut to its forecast for 2024 economic growth after a court ruling prompted the government to order the closure of Canadian miner First Quantum's lucrative copper mine.
• Gross domestic product (GDP) growth might be 1-2% next year, down from a previous estimate of 5%, Hernan Arboleda, director of public policies at the economy and finance ministry, said in an interview on Friday. In contrast, Fitch Solutions forecasts 5.5% growth for Panama in 2023 and 3.0% in 2024.
• President Laurentino Cortizo announced last week the government will move to shut First Quantum's Cobre Panama mine, which accounts for some 5% of the country's GDP, after the Supreme Court ruled that the contract was unconstitutional.
• Panamanians have protested vehemently against the mine since October, arguing the contract was too generous, and First Quantum has since lost over half of its market capitalization.
• First Quantum said on Friday it initiated international arbitration against Panama. Some experts calculate Panama would have to pay at least $50 billion if it loses the case, which is equivalent to nearly 70% of GDP.
• Cortizo's administration is reaching out to international rating agencies to assure them that Panama still has a sound legal framework that allows investors to do business. Panama recently enacted a law banning all new mining concessions and expansions. Arboleda said the country still has other attractive investment opportunities but did not give specific examples.

(Sources: Reuters & Fitch Solutions)