Weekly Report – Nov 29, 2019

The US economy grew by an annualized 2.1% in the third quarter of 2019, compared to market estimate of 1.9% and following a 2.0% expansion in the previous three-month period. Upward revisions to private inventory investment, non-residential fixed investment, and personal consumption expenditures (PCE) were partially offset by a downward revision to state and local government spending.

New orders for US manufactured durable goods rose 0.6% from a month earlier in October 2019, following an upwardly revised 1.4% fall in the previous month and beating market expectations of a 0.8% decrease. This increase was mainly due to fabricated metal products, up two of the last three months.
US consumer spending rose 0.3% from a month earlier in October 2019, following a 0.2% gain in September and matching market expectations, which was mainly boosted by spending on electricity and gas.

The GfK consumer confidence in the United Kingdom remained unchanged at negative 14 in November 2019, the lowest level since 2013, ahead of the December general election. The print for the general economy over the next twelve months gained 3 points, suggesting that some consumers believe the imminent general election might clear the Brexit deadlock. In contrast, the measure for the country’s general economic situation during the last 12 months lost 1 point to negative 34.

Germany’s consumer price inflation is expected to hold steady at 1.1% year-on-year in November 2019, the lowest level since February 2018 and below market expectations of 1.3%. Inflation should also remain below the ECB’s target level for the seventh month in a row, as energy deflation is likely to deepen further, while services and food prices are set to increase at a faster pace.

The Caixin China General Manufacturing PMI rose unexpectedly to 51.7 in October 2019 from 51.4 in September, beating market expectations of 51.0. The latest reading pointed to the strongest pace of expansion in the manufacturing sector since February 2017, as output grew the most since December 2016 and total new orders increased at the fastest rate in over six years boosted by a rebound in exports. In addition, companies increased their purchasing activity at the quickest pace for 20 months, leading to a further rise in stocks of inputs. Meanwhile, employment continued to fall due to the non-replacement of voluntary leavers and efforts to contain costs. On the price front, prices charged by manufacturers fell slightly due to competitive market pressures, while cost burdens rose slightly. Looking ahead, sentiment strengthened to its highest since April.

The Canadian economy expanded an annualized 1.3% on quarter in the three months to September of 2019, below a downwardly revised 3.5% growth in the previous period and compared with market expectations of 3.5%.

The Consumer Confidence Index in Japan increased 2.5 points from the previous month to 38.7 in November 2019, the highest since June and above market expectations of 35.4. All sub-indices improved: willingness to buy durable goods (up 4.3 points to 35.3); overall livelihood (up 3.5 points to 38.0); income growth (up 1.3 points to 40.1); and employment (up 0.8 points to 41.4).

Shares in Sagicor Financial Corporation, SFC, were suspended in three markets this week to fast-track two deals and the insurance company’s shares trading on the Toronto Stock Exchange…read more

Beverage company Jamaican Teas Limited, JAMT, doubled profit for the year ending September, despite a big dip in revenue…read more

The JMMB Group has reported that for its second quarter ended on September 30, the regional financial group of companies posted $2.80 billion in net profits, up 35 per cent year-over-year…read more

Marathon Insurance Brokers has announced plans to raise $500 million through an initial public offer (IPO), which is slated for March next year…read more

Jamaica National Group suffered heavy impairment losses in 2019 amounting to $357.4 million…read more