Renewed Export Push, Tourist & Cruise Arrivals Up, Chinese Targets Panama

Here is the latest weekly digest (Nov 28th – Dec 4th, 2016). A quick easy read of this week’s top and most relevant business news. No fluff, just the highlights.

National Highlights

• Four private and public-sector bodies have signed a memorandum of understanding (MOU), agreeing to work together to grow national exports to US$2.5 billion by 2020. Jamaica currently exports approximately US$1.6 billion in goods and services. The bodies that will be collaborating are the Jamaica Business Development Corporation (JBDC), Jamaica Exporters’ Association (JEA), Jamaica Manufacturers Association (JMA) and Jamaica Promotions Corporation (JAMPRO).

• The mechanism for the foreign exchange auctions proposed by the central bank will be determined through consultations with market players, supported by technical assistance from the International Monetary Fund (IMF). The central bank has to design the auction system, which is expected to go live by July 2017.
• Minister of Tourism Edmund Bartlett says the call of the largest cruise ship in the world, Harmony of the Seas, at the Falmouth port in Trelawny, last week, justifies the investment in the construction of the facility. He noted that of the 1.7 million cruise passengers who visited Jamaica last year, 1.2 million came through the Falmouth port.
• Visitor Arrivals and Earnings both Grow over 5% – From January to October 2016, Jamaica recorded earnings of US$2.06 billion, an increase of 5.7 per cent over the amount earned for the same period last year. Jamaica also registered an increase of 5.1 per cent in visitor arrivals over the same period last year, with 3,100,235 visitors in total. Growth in both arrivals and earnings came despite Jamaica suffering a loss of over 8,000 visitors during the passage of Hurricane Matthew.
• A large Chinese business delegation arrived in the Central American country of Panama this week, and is keen to invest in energy and port projects. Panama is one of 22 countries to maintain formal diplomatic ties with Taiwan. China claims Taiwan as a wayward province and says it has no right to diplomatic relations with anyone.
• The Panama Canal has overtaken the Suez Canal as the favored transit route for carriers operating services between Asia and the US East Coast following the widening of the Central American waterway.
• Oil prices surged this week as OPEC agreed to their first supply cut in 8 years. OPEC has agreed to cut production by about 1.2 million barrels per day, or about 4.5 percent of current production, to 32.5 million barrels per day. Prices are expected to rise above US$50 a barrel and stay there
• US jobless rate / Unemployment falls to the lowest level in 9 years as the economy adds 178,000 jobs in November, bolstering December rate-rise expectations. With an unemployment rate of 4.6% Donald Trump is taking over the US economy in a very good state.

Companies & The Markets

• Digicel’s earnings are currently in middle of a third year of decline. Denis O’Brien’s Digicel Group, whose bonds have slumped in the wake of Donald Trump’s election as the next US president, has indicated to bond investors and analysts that US$2.3 billion (€2.17 billion) of investment over five years will finally lead to a rebound in earnings in its next financial year.
• Usain Bolt’s Documentary ‘I Am Bolt’ was released at Leicester Square this week
• The University of the West Indies (UWI) says it will be reconstructing the University Hospital of the West Indies (UHWI) from its own resources and has sourced a new investor to deliver projects previously pledged by China Harbour Engineering Company (CHEC), which has backed out of the partnership (valued at ~$70b).
• Widely referenced as the Steve Jobs of coffee, Starbucks CEO Howard Schultz plans to step down in April 2017 and says Kevin Johnson, current COO is well prepared to be CEO
• PROVEN wants to raise $2b to finance a regional acquisition and payout its previous preference offer which is about to mature.

Thanks for reading Vol. 2016 Issue No. 8 of our weekly digest. ( 28.11.2016 – 04.12.2016). All Weekly reviews can be viewed here.