• In an effort to restore essential services in the hurricane’s aftermath, Jamaica Public Service Company (JPS) has now provided power to several communities and are now moving into the business district of Montego Bay. Fairview is fully powered and power has been restored to the section supplying the parish’s liquified natural gas (LNG) infrastructure, a critical area that supplies energy to the JPS Bogue Power plant.
• JPS is prioritising the restoration of electricity in critical service areas before extending efforts to residential communities. The company is now running power from the Bevin Avenue area to Queen’s Drive, which will go to power Sangster International Airport. Cornwall Regional Hospital (CRH), the Bogue treatment plant and the Great River pump station all have had their power restored. The next step will be to re-energize the grids that lead to larger communities, followed by the smaller off-route areas.
• Regarding water supply, Councillor Vernon noted that the National Water Commission (NWC) has resumed distribution to several communities – a development that will significantly aid ongoing clean-up and sanitation efforts.
• The National Emergency Operations Centre (EOC), the national coordinating body for disaster management, activated by the Office of Disaster Preparedness & Emergency Management (ODPEM) in response to Hurricane Melissa, continues to closely monitor all developments to ensure the safe and orderly restoration of essential services. NEOC and parish EOC are working closely with JPS and NWC and are on the pathway to full restoration across the parish of St James. Mayor Vernon urged residents to exercise patience as the recovery process continues, reaffirming that “the mission remains the same – restoration, clean-up, and monitoring.”

(Source: JIS)

• South America will sustain strong final investment decision (FID) momentum through 2030, leading to a cumulative US$197 billion in conventional greenfield spending across oilfields between 2020 and 2030.
• The projection comes from a new report by Norway-based Rystad Energy, which highlights that most of these investments are concentrated in offshore deepwater projects. According to Rystad Energy, “Brazil and Guyana will dominate the region’s oilfield development, while Suriname is positioning itself as the next offshore producer.” The country’s GranMorgu field, formerly known as Sapakara South and Krabdagu, is expected to start up by 2028.
• The report shows that total upstream investment in South America’s oilfields reached over US$46Bn last year, the highest level since 2015. Spending is forecast to grow by 10% this year before easing slightly in the coming years, remaining close to US$50 billion annually throughout the next decade.
• The Norwegian market intelligence firm notes that greenfield developments in Brazil and Guyana’s yet-to-produce assets will lead investment activity, while producing fields in Argentina, Brazil, and Colombia will continue to drive brownfield spending.
• In Guyana, ExxonMobil operates the Stabroek Block, the nation’s only producing offshore asset. Since the first discovery in 2015, around 11 billion barrels of recoverable resources have been identified. Exxon recently reached FID on its seventh project, Hammerhead, and is expected to sanction another, the Longtail development, in 2026

(Source: Oil Now)

• Brazil's inflation slowed more than expected in October, following a rebound in September, data from the statistics agency IBGE showed on Tuesday, fueling expectations of an interest rate cut early next year.
• Consumer prices in Latin America's largest economy rose 0.09% in October, down from a 0.48% increase the previous month, as residential electricity prices fell, IBGE said. Economists in a Reuters poll expected a 0.16% expansion.
• In the minutes of its latest monetary policy decision released earlier on Tuesday, the central bank said that the recent economic developments have reinforced its view that the current 15% rate is adequate to bring inflation back to target. "The minutes to last week's meeting, while less hawkish than those from the preceding meeting, gave no sign that a cut is imminent," Capital Economics' analysts added.
• Daycoval analysts said that the October data does not alter their expectation that interest rates will remain unchanged through the end of the year.

(Source: Reuters)

• Members of the House of Representatives headed back to Washington on Tuesday, after a 53-day break, braving the congestion at the nation's tangled airports for a vote that could bring the longest U.S. government shutdown in history to a close.
• With nearly 1,200 flights canceled on Tuesday due to the shutdown, lawmakers including Republican Representatives Rick Crawford of Arkansas and Trent Kelly of Mississippi said they were carpooling to the Capitol, while Representative Derrick Van Orden said he was making the 16-hour drive from Wisconsin on his motorcycle. "It's going to be a little chilly, but I will do my duty," the Republican lawmaker said in a video posted to social media.
• The Republican-controlled House is due to vote Wednesday afternoon on a compromise that would restore funding to government agencies and end a shutdown that started on October 1 and is now in its 42nd day. The Republican-controlled Senate approved the deal on Monday night, and House Speaker Mike Johnson has said he expects it to pass his chamber as well.
• President Donald Trump is expected to sign it into law. "We're opening up our country. Should have never been closed," he said at a Veterans Day event in Arlington, Virginia. The deal would extend funding through January 30, setting the stage for another potential shutdown showdown and leaving the federal government for now on a path to keep adding about to its $38 trillion in debt.
• Within days, the U.S. government could be fully functional again, bringing relief to federal workers who have missed paychecks and low-income families who depend on food subsidies. However, it could take several days for the nation's air travel system to return to normal. The deal has divided Democrats, who had sought to extend healthcare subsidies for 24 million Americans past the end of the year, when they are due to expire. Senate Republicans have agreed to hold a separate vote on those subsidies in December, but there is no guarantee it will pass the chamber, and Johnson has yet to say whether the House will even hold a vote.

(Source: Reuters)

• Markets are watching to see when Bank of Japan (BOJ) Governor Kazuo Ueda will hold his first two-way meeting with the new prime minister, a symbolically important event that would signal both are communicating closely on monetary policy. The BOJ governor typically meets the prime minister days after inauguration, but such a meeting has yet to take place since Takaichi assumed office on October 21.
• In her push to revive growth, Takaichi said she would not rule out a cut to Japan's sales tax, reinforcing market expectations for her administration to prioritise steps to reflate the economy over fixing worsening public finances.
• The remarks signal a major shift from past administrations that stuck to annual fiscal targets and emphasised the need to maintain market trust in Japan's finances, even as they deployed sizable spending packages. "We'll ensure to maintain market trust in Japan's sustainable finances," Takaichi told parliament. "But unless we boost investment, the economy won't grow."
• The administration's focus on expansionary policies could complicate the BOJ's decision on how soon to resume a rate-hike cycle that has been paused due to uncertainty over the economic fallout from higher U.S. tariffs. A draft outline of Takaichi's economic package, seen by Reuters, also said it was "extremely important" for monetary policy to focus on achieving strong economic growth.
• The BOJ kept interest rates steady last month, but its board saw a growing case of raising rates in the near term. The central bank next meets for a rate review on December 18-19, around the time the administration finalises a draft budget for the next fiscal year

(Source: Reuters)

• Fosrich Company Limited (FOSRICH) posted a 101.8% decline in net profit attributable to shareholders, swinging to a loss of J$244.05Mn for Q3 2025, as revenues contracted sharply owing to disruption in supplies of both finished goods and raw materials.
• Total revenue fell 22.5% to J$832.0Mn (Q3 2024: J$1.07Bn), reflecting the continued impact of international shipping delays that have disrupted supplies of both finished goods and raw materials. The shortage of key inputs limited Fosrich’s manufacturing output, reducing its ability to meet market demand and contributing to a run-off in inventory balances.
• In addition to the supply slowdown, turnover was further pressured by the sharp decline in global solar panel prices. Therefore, despite achieving higher sales volumes, because price reductions are passed on to customers, the company reported lower total sales income across this critical product line.
• Direct costs declined 4.3% to J$600.9Mn, a slower rate than the revenue contraction, resulting in gross profit margin compression to 27.8% (Q3 2024: 41.6%). The margin erosion reflected both the lower sales volumes and a less favourable product mix.
• Operating expenses rose 1.3% YoY to J$337.3Mn. Against this background, the company reported an operating loss of J$113.89Mn, only a modest improvement from the J$117.49Mn loss recorded in Q3 2024.
• Fosrich’s weak Q3 results compounded its year-to-date performance, with a net loss of J$433.62Mn for the 9M 2025 period, compared to a J$82.32Mn profit a year earlier. Over the nine months, the company faced sustained supply chain disruptions and in the absence of an offsetting reduction in operating expenses, the company reported losses. Although staff costs were relatively flat, increases in audit fees, depreciation, rent, and security expenses, partly linked to the opening of two new branches at Bayside in Montego Bay and Drax Hall in St. Ann and other expansion activities kept expenses elevated.
• Looking ahead, demand for electrical supplies and solar equipment could improve as post–Hurricane Melissa reconstruction activity picks up, though lingering shipping delays related to solar equipment may constrain the pace of recovery in the short term. Management noted that, with “recent developments in the USA market, our global partners, in seeking to broaden and deepen their relationships with their non-USA customers, have offered more favourable credit terms to us,” which the company expects will yield measurable benefits going forward.
• At the market close on Tuesday, Fosrich’s stock price was J$2.17, down 25.9% since the start of the year. At this price, Fosrich trades at a P/B of 7.04x, which is above 4.02x for the Junior Market Distribution average.

(Sources: FOSRICH, NCBCM Research)

• Lasco Distributors Limited (LASD) posted a 33.3% decline in total comprehensive income to J$408.2Mn for Q2 2025, as rising costs outpaced revenue gains. The earnings dip reflected mounting cost pressures despite broad-based revenue growth across key divisions.
• Total revenue rose 6.5% year over year to J$8.13Bn, reversing the 0.8% contraction in Q1. Growth was supported by improved performance across all major divisions, with the Export Division up 19.5% YoY, buoyed by new distribution partnerships with a leading North American retailer. The Nutrition, Food & Beverage, Home Care, and Healthcare categories also delivered solid growth, underscoring healthy domestic and export demand.
• However, with direct cost (+8.0%) outpacing revenue growth, this led to a 0.9% decline in gross profit to J$1.34Bn. Consequently, the gross profit margin slipped to 16.4% from 17.6% in the prior year. gross profit declined (-0.9%) to J$ 1.34Mn. Management noted that direct costs are expected to moderate in the second half of the year as storage costs normalise and the expanded warehouse becomes fully operational.
• Operating expenses climbed 5.7% YoY, driven by higher sales and promotional activities, staff-related expenses, and technology investments. As a result, operating profit declined 19.0%, pushing the operating margin down to 4.4% from 5.8% a year earlier. Financing costs surged 587.4% to J$9.47Mn, amplifying profit decline. The combined effect of weaker margins and higher financing costs due to additional debt reduced net margins to 3.1% from 4.9%.
• For the six-month period, earnings fell 24.5% YoY, extending the decline from Q1 (–18.8%) and underscoring continued strain on margins.
• While the near-term performance remains pressured, management’s focus on cost containment and improved storage efficiency could support better margins in the latter half of the fiscal year. The company is nearing the completion of certain transformational initiatives covering its infrastructure, systems and portfolio which will improve its operational efficiencies, leveraging the investments made in the first half of the year and positioning the core portfolio for continuous improvement. The diversification strategy is expected to continue to deliver solid results, with exports benefiting from expanded distribution and the pharmaceutical division's enhanced distribution agreement framework providing further growth potential.
• Additionally, LASD is expected to participate meaningfully to the extent that their distributions remain uninterrupted. Demand for consumer staples tends to rise following natural disasters as households replace spoiled or lost goods, communities restock, and relief agencies coordinate centralised purchases.
• At the market close on Tuesday, LASD’s stock price was J$3.52, down 11.7% since the start of the year. At this price, LASD trades at a P/E of 10.4x, which is above 17.9x for the Main Market Distribution & Manufacturing average.

(Sources: LASD, NCBCM Research)

• The average daily spending of tourists visiting the country has consistently decreased so far this year, going from US$176.67 in the first quarter of 2025 to US$164.83 in the third. According to data from the Central Bank, daily spending in July, August, and September fell below the 2024 average, which stood at US$167.75.
• In the first nine months of this year, the country received a total of 6,575,073 non-resident visitors, 2.3% more than in the same period in 2024, with an estimated average daily expenditure of US$170.17 and a stay of eight nights.
• Between January and September, the average occupancy rate was 75.6%, with Bayahibe-Romana having the highest occupancy at 83.1%, followed by Punta Cana at 82.2%.
• August and September were the months with the lowest occupancy at most of the country’s tourist destinations; however, the reduction was minimal in Bayahibe and Punta Cana, while it was significant in Sosúa-Cabarete and Puerto Plata (Playa Dorada, Costa Dorada, and Cofresí).
• Meanwhile, 86.2% of tourists who visited the country between January and September of this year indicated that recreation was the main reason for their visit. Furthermore, hotels were the predominant accommodation option for 80.2% of visitors.
• Regarding age, 50.1% of visitors were between 21 and 49 years old, 51.7% were women, and 48.3% were men, according to Listín Diario newspaper.

(Source: Dominican Today)

• Mexico's annual inflation decelerated in October, official data showed on Friday, staying within the central bank's target range, although analysts remained cautious about the path ahead.
• Consumer prices in Mexico rose 3.57% in the year through October, according to the national statistics agency INEGI, down from 3.76% the previous month and roughly in line with economists' forecasts in a Reuters poll that pointed to a 3.56% increase. Despite the inflation rate remaining within the central bank's target range of 3%, plus or minus a percentage point, for the fourth month in a row, analysts and policymakers have adopted a cautious tone.
• "We anticipate a rebound in annual inflation in early 2026 as a result of the effects of tax increases," economists at Banamex said in a note. For next year, Gabriel Casillas, Barclays head of LatAm Economics Research, particularly mentioned the expected tax increase on soft drinks, the imposition of tariffs on imports from non-FTA countries and the awaited 12% minimum wage increase, as the most relevant issues hitting inflation.
• Mexico's central bank, also known as Banxico, lowered borrowing costs on Thursday for the fourth consecutive time, reducing its benchmark rate by 25 basis points to 7.25%, its lowest level since May 2022. The closely watched core index, which strips out some volatile food and energy prices, increased 0.29% every month, compared with expectations of a 0.28% increase.
• Together with concerns about core inflation, the bank's policymakers cited the ongoing weakness in Mexico's economy. Banxico's governor, Victoria Rodriguez, told Imagen radio late Thursday that she expects the economy to maintain moderate growth, with persisting slack conditions. The governor, who voted in favour of the latest rate cut, noted that the bank's quarterly report due at the end of November will update its gross domestic product and inflation forecasts.

(Source: Reuters)

• U.S. central bankers who have supported two interest rate cuts this year signalled on Monday divergent views on the need for more, underscoring the challenge for Federal Reserve Chair Jerome Powell as he helms a divided group of policymakers. St. Louis Fed President Alberto Musalem was downright skeptical about the prospect of further monetary easing.
• "It's very important that we tread with caution here: I think there is limited room to ease policy further without policy becoming overly accommodative," he told Bloomberg Television. Inflation, he noted, is closer to 3% than the Fed's 2% target.  He added that financial conditions including stock valuations and house prices are elevated; monetary policy is nearer to neutral than to modestly restrictive; and the labour market has cooled in an orderly manner.
• Signalling a bit more openness to a rate cut was San Francisco Fed President Mary Daly, who said muted wage growth shows demand for labour is cooling, and at the same time tariffs have not lifted inflation in any broad-based or persistent way. Daly said she is on the alert for the possibility that a rise in productivity from the adoption of artificial intelligence could allow for faster economic growth without pressuring inflation. "While I'm looking for productivity gains and seeing if they're going to continue, I'm also keeping my eye completely focused on inflation to make sure that it doesn't pick up in a way that would suggest we need to do more or we need to hold longer," Daly told Bloomberg Television. At the same time, she said, "we don't want to make the mistake of holding on too long for rates, only to find out we injured the economy."
• Fed Governor Stephen Miran, who dissented in October in favour of a bigger rate cut, feels the evidence is already in, with quickly falling inflation and a softening labour market making further policy easing "imperative."

(Source: Reuters)