• Israel's public broadcaster said on Wednesday, February 12, 2025, the U.S. had authorised a "long term" Israeli troop presence in southern Lebanon, after sources told Reuters Israel had sought an extension to a Feb. 18 deadline to withdraw its forces.
• Under a truce deal brokered by Washington in November, Israeli troops were granted 60 days to withdraw from southern Lebanon where they had waged a ground offensive against fighters from Lebanon's armed group Hezbollah since early October.
• Hezbollah combatants were to leave the zone and Lebanese troops were to deploy in the area within the same period.
• The initial deadline has already been extended from January 26 until February 18. A Lebanese official and a foreign diplomat in Lebanon told Reuters that Israel had now asked to remain in five posts in the south for a further 10 days.
• Israeli public broadcaster KAN later cited senior officials in Israel's security cabinet as saying that the U.S. had granted Israeli troops permission to stay "in several locations" in Lebanon beyond February 18. It did not specify a new deadline.

(Source: Reuters)

• Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, is calling for increased investment in organic greenhouse farming, noting that the innovative farming method has the potential to transform Jamaica’s agriculture.
• Speaking to farmers and other industry stakeholders at a recent meeting at the Rural Agricultural Development Authority (RADA) Parish Office in St. Elizabeth, Mr. Green said that greenhouse farming allows farmers to produce high-quality, premium crops with strong market demand, and open new export opportunities.
• He highlighted the urgent need for large-scale greenhouse projects, which could yield economies of scale and ensure consistency in both production and quality. These factors, he noted are essential for sustained agricultural growth and the long-term stability of Jamaica’s farming sector.
• Greenhouse farming offers a controlled environment where crops can thrive, thereby mitigating some of the risks associated with traditional farming methods. Therefore, crops such as tomatoes, potatoes, lettuce, garlic, strawberries, and bell peppers are suitable for greenhouse production. “These crops not only have significant local demand but also show promise for export” he emphasized.
• Organic certification of greenhouse products could open new avenues for Jamaican farmers to access premium markets. The minister said, “By focusing on organic farming, we can differentiate our products and command better prices on the international stage; this is an opportunity we must seize”.
• However, proper training and education are vital to ensure that farmers are equipped with the knowledge and skills necessary to manage greenhouse operations effectively and produce high-quality organic crops. “By investing in the infrastructure and training required for greenhouse farming, Jamaica could establish a robust organic farming sector that contributes to food security and economic growth,” he stressed.

(Source: JIS)

• Economist Jaime Aristy Escuder cautioned that the trade policies of former U.S. President Donald Trump could cause global economic instability and negatively impact the Dominican Republic.
• If the U.S. maintains a 25% tariff on Mexican goods, the Mexican peso could depreciate by up to 10%, making Mexico a more affordable destination and reducing the Dominican Republic’s tourism competitiveness.
• However, the trade war could create opportunities for the Dominican manufacturing sector. If the U.S. increases import costs from Mexico and China, American companies might relocate production to the Dominican Republic, benefiting the free trade zones.
• Aristy Escuder explained that Trump’s policy aims to boost U.S. domestic trade but has sparked retaliatory measures from Mexico and Canada, escalating regional economic tensions.
• He warned that these policies could slow U.S. economic growth, affecting global markets. Given the potential risks, he urged the Dominican government to closely monitor trade developments to mitigate possible negative effects on the national economy.

(Source: Dominican Today)

• The government of Trinidad and Tobago announced that the country has been removed from the list of nations identified by the Organization for Economic Co-operation and Development (OECD) as having harmful tax practices
• Finance Minister Colm Imbert confirmed that Port of Spain was officially delisted from this category in February 2025. This move reflects the country’s progress in aligning with international standards for tax transparency and regulatory compliance
• It joins Anguilla, Barbados, Bermuda, the British Virgin Islands, the Cayman Islands and the Turks and Caicos Islands whose policies are deemed not harmful. The OECD’s Forum on Harmful Tax Practices (FHTP) has been conducting reviews of preferential tax regimes for the last 25 years to determine whether the regimes could be harmful to the tax base of other jurisdictions.
• Base erosion and profit shifting (BEPS), where multinationals shift profits to low or no-tax locations where they have little or no economic activity or erode tax bases through deductible payments, such as interest or royalties, cost countries throughout the world billions in lost revenue annually.
• Imbert noted that BEPS practices undermine the fairness and integrity of tax systems because businesses that operate across borders can use them to gain a competitive advantage over enterprises operating at the domestic level. Imbert said in the new Special Economic Zones, a minimum global tax rate of 15 percent is imposed on multinationals operating in the country’s SEZs, in accordance with the BEPS standards.
• The Global Forum is a multilateral framework for tax transparency and information sharing, within which over 170 countries participate equally. The acknowledgement by the OECD that Trinidad and Tobago is no longer considered to have harmful tax practices is an important step in our journey towards full compliance with the Global Forum and the European Union.

(Source: Caribbean National Weekly)

• Wall Street's main indexes were mixed on Tuesday, February 11, 2025, while investors parsed Federal Reserve Chair Jerome Powell's latest comments.
• The U.S. Central Bank is in no rush to cut its short-term interest rate again given the economy is "strong overall", with low unemployment and inflation still above the Fed's 2% target, Powell said in opening remarks at a Senate Banking Committee hearing.
• Investors are also on the lookout for any new tariff comments from U.S. President Donald Trump, a day after he substantially raised levies on imports of steel and aluminium and said there would be announcements over the next two days about reciprocal tariffs on all countries that impose duties on U.S. goods.
• "Valuations are elevated, company guidance is measured, inflation is persistent, government policy is uncertain, tariff talk is ongoing and global tensions are elevated. So, in aggregate, the level of uncertainty is high, which implies increased volatility," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
• "The Fed has so far, rightly, avoided commenting on the possible implications of the trade and immigration policies of the new administration, but the emergence of new details on tariff measures since last week offers a platform for Powell to add more specifics around the thought process," Societe Generale analysts wrote in a morning note.
• Powell's Senate testimony is the first of two days of hearings on Capitol Hill. He is set to speak to the House Financial Services Committee on Wednesday.
• Traders expect at least one 25-basis-point rate cut from the Fed this year, and a 44% chance of another reduction of the same magnitude, according to LSEG data.

(Sources: Reuters & Yahoo Today)

• Major U.S. airlines on Tuesday, February 11, 2025, asked the U.S. Transportation Department (USDOT) to abandon a review launched by the Biden administration over whether carriers should be required to pay passengers compensation over flight disruptions.
• Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines, and others, urged the Trump administration to end the review launched in December to take comments on whether airlines in the United States should provide cash to compensate for carrier-caused disruptions like they are required to do in the European Union and Canada.
• "Airlines do not need further incentive to provide quality service," the group wrote, arguing that USDOT lacks legal authority and that the requirement would drastically boost airlines' costs and hike ticket prices.
• Then, Transportation Secretary Pete Buttigieg said in December that compensation rules for delays "would change the economic incentive in a way that motivates airlines to do more."
• In May 2023, President Joe Biden said his administration would within months write rules requiring airlines to compensate passengers for disrupted flights. Airlines must refund passengers for cancelled flights but are not required to compensate customers for delays.
• Major carriers have committed to paying for meals, hotel stays, and other expenses when they cause significant flight disruptions. Last month, a U.S. court blocked the Biden administration's 2024 rule requiring upfront disclosure of airline service fees, saying USDOT had not complied with procedural rules.

(Source: Reuters)

• Prime Minister, Dr. the Most Hon. Andrew Holness, has reaffirmed the Government’s commitment to securing Jamaica’s economic independence and resilience. This assurance comes in the wake of the recently announced halt in funding support provided under United States Agency for International Development (USAID) programmes.
• Holness said the Government has taken note of the decision, “that sent waves of concern across Jamaica.” He said this shift presents immediate challenges, particularly regarding cash flow for ongoing initiatives locally.
• “So far, we have assessed that we have about US$54 million of programmes being funded by the USAID over several yearly budget periods. Some programmes range from one to three years, or maybe a little bit more. Given that these programs have lost funding, the prime minister is assessing any potential fallout from the hold placed on funding from USAID.
• The Prime Minister pointed out that the Government has been proactively making strides toward reducing its dependency on foreign aid by developing a robust economy, improving fiscal management and creating an environment conducive to sustainable inclusive growth.
• Holness maintained that rather than focusing on aid dependency, the aim is to build mutually beneficial bilateral relationships with international partners. “So… we await what would be the new direction and we look forward to working with the United States Government on issues that are of mutual and strategic importance. I am confident that there will be a new future for US-Jamaica relations,” he said.

(Source: JIS)

• Following the close of the recent takeover offer by Simply Secure Limited, the company no longer meets the listing requirements of the Jamaica Stock Exchange. 
• Pursuant to a resolution of the Board of Directors, and in accordance with Junior Market Rule 505 (14) (b), the company has therefore applied to the Jamaica Stock Exchange for the delisting of the company’s ordinary shares.  
• It is anticipated that the effective date of the delisting will be no later than Friday, February 28, 2025.

(Sources: JSE & TTech Limited)

• Trinidad’s Tourism Minister Randall Mitchell has projected that foreign visitors will spend more than the $640 million recorded during last year’s Carnival celebrations.
• Speaking at the opening of the John Cupid Carnival Village on Friday night at the Queen’s Park Savannah in Port of Spain, Mitchell based his expectation on the anticipated increase in tourist arrivals and the growing attendance at the Carnival Village in recent years.
• He also highlighted a significant rise in international flight arrivals, with 410 more aircraft expected to land in Trinidad and Tobago between February 1 and the first week of March, indicating a larger influx of visitors during this year’s Carnival season.
• Tourism Minister Randall Mitchell expressed confidence that Carnival Village 2025 will attract over 100,000 patrons, surpassing last year’s numbers.
• Speaking on the impact of tourist arrivals on the country's economy, he highlighted that spending by visitors will serve as a significant economic boost for everyone involved in the Carnival celebrations—from accommodation providers and promoters to artists, taxi drivers, and vendors

(Source: Caribbean National Weekly)

• Mexico's inflationary environment is expected to allow policymakers to keep cutting the benchmark interest rate, as the fight to bring down inflation has entered a new phase.
• Banxico, as the Mexican central bank is known, cut the key rate by 50 basis points to 9.50% on Thursday, double the 25-basis-point cuts it had made since it began lowering borrowing costs from a record high of 11.25% in March 2024
• "Our work is not over. The fight against inflation is now in a new phase," Banxico Governor Victoria Rodriguez said in an interview late on Sunday.
• Last week's rate reduction brought Mexico's interest rate to its lowest since September 2022 as annual inflation in Latin America's second-biggest economy slowed to 3.69% in the first half of January. That is the lowest level for headline inflation since early 2021 and is within the bank's target of 3%, plus or minus one percentage point.
• "In order to face the challenges of this new phase, we need lower (interest) rates," Rodriguez added. Mexico's peso currency and domestic stocks have suffered extended volatility amid the threat of U.S. tariffs on its neighbor's exports, even though the strictures were paused until March 1, following a pact between the two.
• Some analysts have warned the tariffs could throw Mexico into recession and trigger "stagflation" - high inflation, stagnant growth and elevated unemployment. Banxico could act if needed to ensure the orderly functioning of Mexican financial markets, Rodriguez said, underscoring the importance of trade ties for both nations.

(Source: Reuters)