• German industrial output unexpectedly slumped 1.9 percent in November in a broad-based decline led by consumer goods and energy.
• Year-on-year output was down 4.7 percent, the worst performance since 2009.
• The dramatic downturn raises the risk that Europe’s largest economy will slip into recession as expectations for a rebound, voiced by the country’s central bank, seem premature. 

(Source: Bloomberg)

• A barrel of West Texas Intermediate for February delivery was trading at $49.20 at 5:50 a.m., helping the commodity to its longest rally in almost 18 months.
• Once again, trade talks are one of the main drivers of the recovery in crude, while expectations that tomorrow’s U.S. stockpiles data will show a drawdown are helping push oil back towards $50 a barrel.
• Shipping data, meanwhile, shows OPEC is following through on its latest promise to reduce production.

(Source: Bloomberg)

• Shares of the company that owns the NYSE fall as some of Wall Street’s largest investors near the launch of a new, low-cost exchange.
• Nine banks, brokerages and other firms including Morgan Stanley and Fidelity plan to launch the exchange early this year.
• The launch of another stock exchange would come amid a mass migration toward cheap, no-fee investing options and exchanges across Wall Street.

(Source: CNBC)

• The economic and trade relationship between Jamaica and the People’s Republic of China is very active, with some 15 Chinese companies operating in Jamaica with cumulative investments of US$2 billion.
• This was disclosed by Counsellor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China, Fan Jianghong, during a news conference regarding the sports cooperation programme with China, held at The Jamaica Pegasus hotel in Kingston on January 2.
• He further disclosed that investments keep growing each month and that the two-way trade has more than surpassed what it was in 2017.

(Source: JIS)

• According to Fitch, Mexico's modest current account deficit will narrow over the coming years, with the shortfall covered by capital inflows.
• Strong US demand for Mexican manufactured goods and improved terms of trade will narrow the goods trade deficit.
• However, Fitch notes risks to its outlook due to uncertainty surrounding the US passage of a revised NAFTA, potential AMLO policy shifts and recent oil price weakness. 

(Source: Fitch)

• The economic and trade relationship between Jamaica and the People’s Republic of China is very active, with some 15 Chinese companies operating in Jamaica with cumulative investments of US$2 billion.
• This was disclosed by Counsellor for Economic and Commercial Affairs at the Embassy of the People’s Republic of China, Fan Jianghong, during a news conference regarding the sports cooperation programme with China, held at The Jamaica Pegasus hotel in Kingston on January 2.
• He further disclosed that investments keep growing each month and that the two-way trade has more than surpassed what it was in 2017.

(Source: JIS)

• Fitch Solutions expects the Central Bank of Trinidad and Tobago (CBTT) will continue a rate-hiking cycle in 2019.
•  Rising US interest rates will exacerbate T&T’s unfavorable interest rate differential, driving capital outflows and spurring the CBTT to raise its benchmark policy rate up from 5.00% currently.
• Fitch revised its end-2019 interest rate forecast to 5.50%, down from 5.75%, in line with its expectation of subdued inflation and fewer rate hikes from the US Federal Reserve.

(Source: Fitch)

• Eppley Limited (EPLY) has successfully applied for the graduation of its listed securities on the Jamaica Stock Exchange 
• Effective the 31st of December 2018, all securities listed on the junior market trading platform of the JSE will be listed on the main market of the JSE and will continue to trade on that platform 
• The company's graduation reflects its growth, increasing scope and ability to comply with the governance standard applicable to companies listed on the main market 
• At the point of graduation, the company will no longer benefit from the junior market tax incentive under the income tax act. Nevertheless, since it is an approved venture capital company under section 36A of the income tax act, it is not expected that its effective corporate tax rate will be adversely affected by the graduation. 

(Source: JSE Press Release)

• Bank of Jamaica announces its decision to lower the policy interest rate (the rate offered on overnight placements with Bank of Jamaica) by 25 basis points to 1.75 percent.
• This decision reflects the Bank’s most recent assessment that inflation could now fall below the lower limit of the 4.0 percent to 6.0 percent target in the latter half of 2019 and early 2020. There is also some risk that inflation could fall below 4.0 percent in December 2018.
• The inflation rate at November 2018, as reported by the Statistical Institute of Jamaica, was 4.1 percent, lower than the 4.7 percent recorded at October 2018 and the 4.9 percent in November 2017.

(Source: BOJ Press Release) 

On Wednesday, the Fed announced an increase in its benchmark interest rate by a quarter point to a target range between 2.25 to 2.5 percent, in a widely anticipated move. World equity markets slumped on Thursday after the U.S. Federal Reserve raised rates even as signs grow that global economic growth is slowing. Jitters over the Fed's move to largely keep guidance for additional hikes over the next two years spread from Asia to Europe. Major indexes fell to their lowest in two years and investors headed for the relative safety of government debt.

 (Source: CNBC)