• The Mexican government has halted U.S. fuel imports sent into the country by road, as it cracks down on illegal deals. Trucks carrying gasoline and diesel to Mexico from the U.S. Gulf Coast refining hub are not being permitted to cross the Texas border as the Mexican government investigates import permits and steps up cargo inspections, one of the sources involved in such deliveries said.
• There was no timeline to resume the trucking trade, the sources said, adding that railway and waterborne deliveries of fuel to Mexico from the U.S. have not been impacted. Even though Mexico is a large crude oil producer, it imports much of its fuel requirements from the U.S. as Pemex struggles to efficiently refine the heavy sour Maya crude oil grade it pumps. Mexico is the top buyer of U.S. fuel. According to the latest U.S. Energy Information Administration data, U.S. oil and fuel exports to the country averaged around 35.66Mn barrels per day in January.
• The trading route has proven lucrative for fuel smugglers, pushing Mexico to establish a decree to combat illicit fuel trade in 2023. In recent months, Mexican authorities have seized a vessel and several fuel trucks for what they said were illegal cargos.
• Mexican Security Minister Omar Garcia Harfuch said on March 31 that federal authorities had seized a tanker in Tamaulipas that was carrying 10Mn liters of diesel along with 192 containers and 29 vehicles to transport motor fuels, as well as other vehicles. On March 28, he said federal authorities had seized about 8Mn liters of hydrocarbon products, containers, and vehicles used to transport motor fuels and pumps in Baja California.
• U.S. President Donald Trump's crackdown on illegal immigration and drug trafficking has also increased scrutiny at the U.S.-Mexico border. Nearly 110,000 acres of federal land along the border were transferred to the U.S. Army to help prevent illegal immigration, the U.S. Interior Department said on Tuesday.

(Source: Reuters)

• Saint Lucia’s tourism sector continues its upward trajectory, achieving a landmark EC$3.5Bn in revenue last year, despite operating with 500 fewer hotel rooms. Deputy Prime Minister and Minister for Tourism, Dr Ernest Hilaire, announced the milestone during a press briefing.
• Hillaire noted that the total value of visitor arrivals reached EC$3.50Bn and the country was able to achieve a record-breaking year despite fewer rooms.
• He also highlighted the growing role of alternative accommodation, such as short-term rentals and homestays, in boosting local earnings. Tourism Authority data revealed that over 30,000 visitors opted for Airbnb-style lodgings last year. 
• Moving forward, the ministry aims to further support community-based tourism by promoting small-scale providers and home accommodations. The recent Gimies Awards (St. Lucia Tourism Awards) also underscored the industry’s appreciation for its workforce, honouring the dedication of hospitality professionals.
• The record revenue reflects the sector’s robust performance, which he credited to Saint Lucian hospitality workers. As preparations begin for next year’s Gimies, Hilaire encouraged wider participation, stressing that tourism’s impact extends beyond economics – it’s about people.
• The minister also noted that the government has resolved to continue the thrust to ensure that we get more of the money to be spent in Saint Lucia and to go into the pockets of Saint Lucians

(Source: St. Lucia Times)

• U.S. Federal Reserve (Fed) Chair Jerome Powell said on Wednesday, April 16, 2025, that the Fed would wait for more data on the economy's direction before making any changes to interest rates and characterised recent market volatility as a logical processing of the Trump administration's dramatic shifts in tariff policy.
• "For the time being, we are well-positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell said in a speech to the Economic Club of Chicago.
• In a later question and answer session, he noted a potentially tough situation developing for the Fed in which prices are pushed higher by tariffs while growth and possibly the labour market weaken, leaving both inflation and employment further away from the Fed's desired levels. The Fed tries to keep inflation stable at 2% while sustaining maximum employment.
• "I do think we'll be moving away from those goals, probably for the balance of this year. Or at least not making any progress," due to the impact of tariffs that have proved larger, at least as announced, than even the most severe scenarios pencilled into initial Fed planning estimates, Powell said.
• He called Trump's tariff plans "fundamental changes" that don't provide businesses and economists with any clear parallels to study. Powell noted that the U.S. began the year around full employment, and inflation was expected to continue falling to the central bank's target, an achievement many doubted the central bank could accomplish.
• In his first public remarks on recent financial volatility, Powell said he felt that bond and stock markets were functioning well, with recent swings showing investors adapting to the new policy landscape. Asked if there is a "Fed put" where the central bank would step in if markets plummet, Powell said no, while explaining. "Markets are struggling with a lot of uncertainty, and that means volatility. But having said that, markets are functioning...They're orderly, and they're functioning just about as you would expect them to function."

(Source: Reuters)

• British inflation slowed to its weakest in three months in March, and other measures watched by the Bank of England (BoE) cooled too, but higher bills and employer costs will pressure prices soon against the backdrop of U.S. President Donald Trump's trade war.
• Inflation slowed to an annual rate of 2.6% in March from 2.8% in February, below expectations of 2.7% in the BoE forecast and a Reuters poll of economists. A price drop for computer games and falling fuel prices helped bring down the headline rate, although the prices of clothes rose strongly after a surprise fall in February, the Office for National Statistics said.
• "This is very much the calm before the storm," former BoE interest rate-setter Michael Saunders said, pointing to April's increases in gas, electricity and water prices, alongside higher taxes on employers, which could push inflation to 3%.
• The BoE, which has an inflation target of 2%, said in February it expected inflation to leap to 3.6% in April as regulated tariffs for household utility bills go up.
• Since those forecasts were made, Trump's decision to impose sweeping trade tariffs has raised the prospect of a slowdown in the global economy. Martin Sartorius, principal economist at the Confederation of British Industry, said the higher US tariffs could put both upward and downward pressures on inflation in the UK, but that the BoE was likely to cut interest rates next month.

(Source: Reuters)

• Impacted by higher expenses, Knutsford Express Services Limited (KEX) reported a 36.8% decline in earnings to J$169.67Mn for the 9 months ending February 2025 (9M 2025).
• 9M 2025 revenues grew by 7.3%, moving from J$1.53Bn in 2024 to $1.64Bn in 2025, reflecting a slower but sustained growth in service demand.
• However, the company grappled with cost pressures, as administrative and general expenses rose sharply by 16.0% to $1.39Bn. With revenue growth outpacing higher expenses, KEX’s operating profit fell by 24.4% to $248.95Mn.
• The company’s weaker operating performance was compounded by higher net finance costs, which increased by 25.6% to $36.30Mn, reflecting lower finance income (-27.4%) and higher finance costs.
• As a result, profit before taxation dropped 29.3% over the nine months, from J$300.58Mn to J$212.65Mn.
• Amid the falloff in earnings, management pointed to continued macroeconomic softness, including muted passenger arrivals, as a key drag on revenue momentum. However, investments in operations continue, including the ongoing expansion of its coach fleet. The company is also looking to deepen its efforts to digitise its processes to improve operational efficiencies and enhance customer satisfaction.
• KEX’s stock price has depreciated by 15.1% year-to-date. The stock price closed Tuesday’s trading session at $12.02 and currently trades at a P/E of 28.62x, above the Junior Market Other Average of 16.30x.

(Sources: KEX & NCBCM Research)

• Express Catering Limited (ECL) delivered a 54.2% surge in net earnings for the 9 months ended February 2025 (9M 2025), rising from US$2.09Mn in 9M 2024 to US$3.22Mn. Improved cost management, which compensated for marginal revenue growth, drove the buoyancy in earnings.
• Total revenue grew by 1.1% to US$18.89Mn, on higher average spend per passenger, which rose from US$9.53 to US$10.49, and compensated for a decline in total passenger volumes from 1.96Mn to 1.80Mn.
• Notwithstanding the marginal revenue growth, gross profit improved by 8.6%, driven by lower cost of sales (-13.9%) to US$5.31Mn.
• Similarly, Administrative and Promotional expenses declined by US$0.67Mn or 10.7% to US$5.58Mn, which outweighed a US$0.61Mn (27.7%) increase in depreciation expenses to US$2.82Mn.
• The lower administrative and professional expense reflects tighter cost management, notably in salaries, wages, and lease obligations under IFRS 16, as well as supply chain efficiencies and improved menu pricing. With the improved cost containment, operating profit rose by 26.7% to US$5.10Mn.
• With improved earnings, ECL’s profit margins improved from 11.2% to 17.0%.
• ECL’s management remains optimistic for the rest of its 2025 financial year. The winter season (Dec–May) remains a peak period for passenger traffic and revenue generation. Moreover, with the summer season approaching, the company is actively reviewing cost categories to further drive future savings and margin expansion.
• ECL’s stock price has decreased by 4.1% year-to-date. The stock price closed Tuesday’s trading session at $2.89 and currently trades at a P/E of 11.4x, below the Junior Market Other Average of 16.3x.

(Sources: JSE and NCBCM Research)

• Newly appointed president of the Trinidad and Tobago Manufacturers’ Association (TTMA), Dale Parson, says non-energy exports are the way to go for long-term benefits for Trinidad and Tobago.
• “We feel we know what we have to do, and non-energy exports is the way to go for the long-term benefits of the country, and not only for manufacturers, but for the whole population,” he said.
• With the US government pulling the Office of Foreign Assets Control (OFAC) licences to develop the Dragon and Manakin-Cocuina fields, he said there were still other opportunities in the pipeline.
• Speaking on the tariff announced for T&T goods by US President Donald Trump, he noted that with all the geopolitical tax impositions and the berthing fees and so on, there are other opportunities in the region that do not attract those tariffs, that the country can still export.
• He emphasised that the tariff on T&T was one of the lowest in the region, which puts the country in a competitive position with other countries exporting to the US.
• He further acknowledged that the tariffs were a big issue, especially the developing tariff war between the US and China, and could cause a trickle-down effect, causing a 10%-15% increase on all imported goods, which would affect the consumer.

(Source: Trinidad Express)

• The Government of Guyana has welcomed the arrival of the ONE GUYANA Floating Production, Storage and Offloading (FPSO) vessel into Guyana’s waters. This marks a significant milestone in the advancement of offshore oil production and national development.
• Constructed by SBM Offshore, the ONE GUYANA FPSO will support ExxonMobil Guyana’s Yellowtail development in the prolific Stabroek Block. With an estimated minimum production capacity of 250,000 barrels of oil per day and a storage capacity of approximately two million barrels, the vessel will bring total daily production capacity in the Stabroek Block to around 900,000 barrels once operations commence later this year.
• The ONE GUYANA FPSO is the fourth production vessel to arrive in Guyana, joining the Liza Destiny, Liza Unity, and Prosperity FPSOs. It represents continued confidence in Guyana’s energy sector and the strength of the partnership between the Government and co-venturers ExxonMobil, Hess, and CNOOC.
• The Ministry of Natural Resource reaffirms its commitment to ensuring that the oil and gas sector continues to be developed transparently and sustainably for the benefit of all Guyanese.

(Source: Newsroom Guyana)

• U.S. import prices unexpectedly fell in March, pulled down by decreasing costs for energy products, the latest indication that inflation was subsiding before President Donald Trump's sweeping tariffs came into effect.
• The report from the Labour Department on Tuesday, April 15, 2025, added to March's benign consumer and producer prices data. Economists expect tame readings in March in the key inflation measures tracked by the Federal Reserve for its 2% target.
• "There is likely to be a very painful and costly transition for the U.S. economy as Trump 2.0 tries to turn back the clock and go back to making things in America," said Christopher Rupkey, chief economist at FWDBONDS. "Import prices are not adding much to inflation for now, but the future outlook remains very much in doubt and not in a good way."
• Import prices dipped 0.1% last month, the first decline since September, after a downwardly revised 0.2% gain in February, the Labour Department's Bureau of Labour Statistics said. Economists polled by Reuters had forecast import prices, which exclude tariffs and are measured close to the beginning of the month, would be unchanged following a previously reported 0.4% increase in February.
• The import price data cemented economists' expectations that the Personal Consumption Expenditures (PCE) price index, excluding food and energy, edged up 0.1% in March after shooting up 0.4% in February. That would slow the annual increase in so-called core PCE inflation to 2.6% from 2.8% in February.
• That said, the White House's import duties campaign has triggered a damaging trade war with China and plunged financial markets into turmoil. Investors are fearful of high inflation and tepid growth or even a recession. Furthermore, the minutes of the Federal Reserve's March 18-19 meeting published last week showed policymakers were nearly unanimous that the economy faced risks of simultaneously higher inflation and slower growth, commonly referred to as stagflation.

(Source: Reuters)

• China is "tearing down walls" and expanding its circle of trading partners, "shaking hands" instead of "shaking fists", its foreign ministry said on Tuesday, April 15, 2025, as Beijing works on diversifying ties amid an escalating trade war with the U.S.
• Chinese President Xi Jinping, on Monday, kicked off a three-nation tour of Southeast Asia, which covers Vietnam, Malaysia, and Cambodia. In Vietnam, which is facing potential U.S. tariffs of 46%, Xi called for the two countries to oppose "unilateral bullying" and to strengthen cooperation in production and supply chains.
• President Donald Trump has added an eye-watering 145% of tariffs on Chinese goods this year as part of broader reciprocal duties on all U.S. trading partners. This prompted ridicule and criticism from Beijing, which retaliated by jacking up levies on U.S. goods by 125%.
• The World Trade Organisation has warned that the high-stakes China-U.S. trade row could cut the shipment of goods between the two economies by as much as 80% and severely hurt global growth.
• However, Beijing has called U.S. President Donald Trump's tariffs strategy "a joke", irritating U.S. Treasury Secretary Scott Bessent. "These are not a joke. I mean, these are big numbers," Bessent said in a Bloomberg Television interview." I think no one thinks they're sustainable, wants them to remain here, but it's far from a joke." Any U.S.-China negotiations would have to come from "the top," involving Trump and Chinese President Xi Jinping, Bessent also said.
• That said, a commentary published on Tuesday by China's state-run People's Daily underlined the need for unity amid the trade turbulence. "In the face of crisis, no one can keep only to oneself," the commentary said, referencing Dorothy's adventure in the American children's story The Wizard of Oz. "Only unity and cooperation can meet the challenge."

(Source: Reuters)