• Jamaica’s burgeoning film industry earned approximately US$236 million from 47 productions undertaken during the 2020/21 year while generating 867 jobs. 
• This was disclosed by the Minister of Industry, Investment and Commerce, Hon. Audley Shaw, who said the outcome mainly resulted from Jamaica Promotions Corporation’s (JAMPRO) work in actively promoting film as a viable local investment opportunity. 
• The quality and quantity of local film content have improved over the last three years and are “responding well” to increased global demand for productions that are culture-specific. 
• He also highlighted opportunities in the animation and digital sectors, two industries that demonstrate the potential for economic transformation. In addition, greater activity in the film industry such as the recent premiere of the James Bond movie, of which a large part was filmed in Jamaica, can lead to the increased popularity of the island, which could increase demand in the tourism sector.

(Source: JIS News)

• Although oil prices have dipped because of a new COVID-19 variant, which was detected in South Africa, Brent – the benchmark Guyana uses to sell its crude – remains over US$70 per barrel of oil, allowing Guyana to end the year with over US$600 million in its Natural Resource Fund (NRF). 
• Revenues reaching close to US$70 million could be earned from the sale of the country’s final oil lift for this year, which was completed by the company producing offshore Guyana, ExxonMobil, a few days ago. 
• Minister of Natural Resources, Vickram Bharrat, confirmed on Sunday that the country received its final lift and it will soon be exported. Even amid the fluctuations in market prices caused by the global response to the new COVID-19 variant, Bharrat is hopeful that oil prices will hold so that Guyana could get the best price for its commodity. 
• Guyana has earned close to US$80 million from the sale of its penultimate lift for 2021, taking the total earnings in the NRF to over US$534 million. According to the Bank of Guyana’s monthly report on the NRF, the aggregate sum moved from US$436Mn in September to US$534Mn in October.

 (Source: Guyana Chronicle)

• The Bahamas is on target to realise its “far-off dream” of one million stopover visitors in 2021, a top official disclosed yesterday, while hotel rates and tourist spending inch closer to pre-COVID levels. 
• Joy Jibrilu, the Ministry of Tourism’s director-general, told the weekly media briefing by the Prime Minister’s Office that “the quality of the numbers” that The Bahamas is enjoying in its pandemic recovery is more important than just mere visitor arrivals. 
• Confirming that The Bahamas is on track to hit the one million stopover visitor target set by former tourism minister, Dionisio D’Aguilar, when he spoke to Tribune Business in early July, she said: “Internally, we’re floating a number. When we floated that number in September, that seemed like a far-off dream. But it’s more than that at this stage.” 
• Jibrilu said hotel and tourism industry margins, and yields had increased instead of dropping as had initially been predicted. And increased tourism spending meant that the economic impact from The Bahamas’ largest sector is being felt more widely, and by more persons.

(Source: The Tribune)

• Pandemic-weary corporations struggled to assess the impact of the new Omicron variant of the coronavirus on Monday, with industries from airlines to autos awaiting more details to help determine how it might affect their operations and profits. 
• The World Health Organization warned on Monday that the Omicron variant carries a very high global risk of infection surges. Spooked investors wiped roughly $2 trillion off global stocks on Friday, but markets were calmer on Monday. 
• Countries have swiftly imposed bans on travel from southern Africa, where the variant was first discovered. Japan and Israel went even further, announcing bans on all foreign arrivals.

(Source: Reuters)

• Global inflation continues to hit new highs, prompting a hawkish shift by markets and raising concerns over the transitory nature of price pressures. 
• Fitch Solutions believe that inflation will start easing towards central bank target levels in H222, although this is a slower pace of deceleration than they initially expected. 
• Emerging markets have been hiking for several months as inflation has remained elevated, particularly in Latin America. Fitch expects that developed markets will start hiking in 2022; however it believes that rates will be less hawkish than what the market is pricing in.

(Source: Fitch Solutions)

• The VM Investments Limited (VMIL) has entered into a definitive agreement with Republic Bank (Barbados) Limited (RBBL) to acquire 100% of the issued and authorized common shares in Republic Funds (Barbados) Incorporated (RFI). RFI is the owner and operator of the Republic Bank Barbados family of Mutual Funds, comprising Republic Property Fund, Republic Income Fund and Republic Capital Growth Fund. The transaction completion is, however, subject to the approval of regulators in both Barbados and Jamaica. 
• Rezworth Burchenson, CEO of VMIL has said that VMIL is in an unprecedented growth mode, and that the company would continue to be keen on strategically expanding its footprint throughout the region. The acquisition of RFI is aligned with its robust strategic plan for the business. 
• RBBL, in a strategic decision, has chosen to concentrate on its core business of commercial banking. The management of mutual funds in Barbados no longer fits into the bank’s core business strategy. 
• While awaiting regulatory approval in Barbados and Jamaica, RBBL will continue to be the owner of RFI and until the acquisition process is completed, RBBL will also remain the manager of the respective mutual funds. The required regulatory approval process is expected to be completed within approximately six to nine months but could be extended depending on various factors. 
• This acquisition will allow VMIL to expand its reach, regional footprint, and facilitate revenue diversification. It should result in stronger revenue and greater profitability for the company.

(Source: VMIL & NCBCM Research)

• Driven by a reduction in direct expenses incurred, AMG Packaging & Paper reported a 7.8% increase in net profit to $60.59Mn (EPS: $0.12) for the year ended August 31, 2021. The company’s revenues declined marginally during the year. 
• Direct costs fell 7.1% (or $37.51Mn) due in part to lower spending on salaries and related expenses, cost of materials used and repairs and maintenance. 
• However, the performance was tempered by 2.0% (or $14.54Mn) fall off in revenue and a 2.1% (or $2.01Mn) rise in admin expenses given an increase in management remuneration, sanitation and motor vehicle costs. Operations were adversely impacted by lockdowns and curfew hours, which resulted in the decline in revenues. 
• A 95.3% reduction in other revenue influenced by a realised loss on foreign exchange translation and a loss on disposal of assets also tempered the growth in the bottom-line. 
• AMG is currently constructing a new plant, which will produce packaging products made from recycled paper. The company plans to double production capacity and management has indicated that the new plans will enable it to cut costs, as the shortage of paper on the world market continues to drive up the cost of paper. This strategy should support revenue growth, help the company pivot from the effects of the ongoing supply chain challenges, lower costs, and bolster the bottom-line. 
• AMG’s stock price has appreciated by 44.5% since the start of the year and closed Thursday’s trading session at $2.28 per share. This implies a P/E multiple of 19.0x, which is above the junior market manufacturing sector average of 18.7x.

(Source: AMG Financials & NCBCM Research)

• The monthly index of economic activity (IMAE) of Panama between January and September grew by 14.94%, over the same period in 2020, which shows the recovery process from the COVID-19 pandemic impact is well underway. 
• In September the IMAE, expanded by 18.02%, compared to the same month of the previous year, according to data from the National Institute of Statistics and Census (INEC) of Panama released on Tuesday. In the first semester of this year, the Panamanian gross domestic product (GDP) expanded by 10%. International risk rating agencies foresee that the indicator will grow between 8% and 12% in 2021. 
• The expansion of the IMAE in the nine months to September was driven by the mining industry, due to the export of copper ore and its concentrate, construction, the execution of public investments and the gradual reactivation of many private projects private, said the INEC. 
• Economic activity showed a positive rate in indicators such as re-exports in the Colon Free Zone, and local retail and wholesale trade, as well as transportation, storage, and communications services, due to the good performance of the Panama Canal and the movement of containers in ports. On the other hand, hotel services continued to show negative rates, especially due to the low influx of tourists, hikers and passengers in transit, the statistical entity said.

(Source: CariCRIS)

• Mexico’s economy shrank more than expected in the third quarter after new legislation banning labour outsourcing hit the services industry and coronavirus cases surged. Gross domestic product fell 0.4% quarter over quarter, more than its preliminary 0.2% drop and the median estimate of a 0.3% fall in a Bloomberg survey. 
• It’s the first contraction since the second quarter of 2020, when Mexico imposed its harshest set of restrictions to tackle the COVID-19 pandemic. Year over year, GDP grew by 4.5%, according to final data from the national statistics institute published Thursday. 
• The quarterly contraction halts the recovery of Latin America’s second-largest economy, which is far from returning to pre-pandemic levels after suffering last year its worst recession in almost a century. 
• It also contradicts President Andres Manuel Lopez Obrador, who has repeatedly said the economy is doing well despite his decision to avoid additional public spending to support households and companies during the pandemic.

(Source: Bloomberg)

• Headwinds to the hitherto slow recovery of the tourism sector have intensified as a sharp increase in new COVID-19 cases is prompting several developed market (DM) governments to reintroduce mobility restrictions, with particularly negative growth implications for tourism-reliant economies. 
• Data from World Bank show that DM tourism revenues expanded steadily over the past 20 years. Tourism revenues rose to around US$1.0Tn (2.0% of DM GDP) in 2019, before dropping to US$240.3Bn (0.5% of DM GDP) in 2020 following the COVID-19 pandemic. 
• Tourism has recovered over 2021, as national vaccination programmes have progressed, facilitating the reopening of regional economies and the resumption of foreign travel. 
• Fitch Solutions believes that tourism revenues will continue rising in 2022 to reach pre-pandemic levels by 2024, although this timeline is somewhat variable. Indeed, new vaccines and therapeutic treatments could accelerate the normalisation of tourism, while new COVID-19 strains or poor vaccine rollouts could ultimately delay it.

(Source: Fitch Solutions)