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SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: esmart@caricris.com
▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-
▪ Government of Barbados’s local currency rating upgraded to CariBB
▪ PanJam Investment Limited’s initial rating assigned at CariBBB+
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+
▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+
▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+
▪ The Pegasus Hotels of Guyana Limited’s rating upgraded to CariBBB
▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+
▪ Home Mortgage Bank’s rating reaffirmed at CariA
▪ NCB Cayman Limited’s rating reaffirmed at CariA
▪ NiQuan Energy Trinidad Limited’s initial rating assigned at CariA+
OUR UPCOMING WORKSHOPS!
Restructuring Problem Credits 6th & 7th February 2019 Jamaica
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COUNTRY
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CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.
REGIONAL
Trinidad and Tobago
Thousands come ashore as cruise ship docks
ALMOST 4,000 cruise ship passengers arrived in Trinidad as the MSC
Preziosa made its fourth call on the Port of Port of Spain yesterday.
Macro Fund falls $0.20
OVERALL market activity resulted from trading in 12 securities of which
three advanced, five declined and four traded firm.
Canadian oil company eyes Ortoire
CALGARY, Canada-based Touchstone Exploration Inc said it is the most
active onshore upstream company in Trinidad last week. Upstream is
where the oil or gas comes from, usually under the ground on land, or
under the sea floor offshore, but is also used to refer to general activity
related to that first stage of oil and/or gas extraction.
NGC’s global vision
The National Gas Company (NGC) is ready to go global.
Barbados
Another Caricom country places ban on single-use plastic products
Barbados has become the latest Caribbean Community (Caricom)
country to announce a ban on the importation, retail, sale and use of
petro-based single use plastic products.
Barbados judge joins CCJ bench
Justice Andrew Burgess, formerly a Justice of Appeal in Barbados' Court of
Appeal, was recently sworn in as a judge of the CCJ at a ceremony held
at Government House in Barbados
Jamaica
Search on For New BOJ Governor
The new governor will replace Brian Wynter whose contract is due to
come to an end in November.
Jamaica continued
Cuba Rejects Trump’s Threat to Tighten Embargo
Cuban ambassador to Jamaica, Ines Fors Fernandez, has vowed that
threats from the United States to further tighten the long-standing
embargo on the Caribbean island nation by activating Title Three of the
Helms-Burton Act will only make its people more resilient while praising
countries like Jamaica for their firm support over decades.
Jamaica says it's monitoring developments in Venezuela
THE Jamaican Government said last night that it was closely monitoring
the latest developments in Venezuela, where the Opposition leader
declared himself interim president, triggering a fresh round of bloodshed
in the troubled country.
Guyana
Against all odds… PPP Govt will reopen sugar estates–Jagdeo
The International Monetary Fund (IMF) is one of the many institutions that
has advocated for Guyana’s authorities to reduce the size of its sugar
industry since it was too costly to upkeep production at competitive rates.
Clamp down on illegal, unregulated pesticides
IMPORTERS who are caught with illegal and unregulated pesticides will
have to face the penalties which include legal charges.
The Bahamas
‘Hundreds of Acres’ for LPIA Expansion
Nassau airport’s managers are moving to secure “hundreds of acres” for
potential future expansion of its runway and terminal “footprint”, a
Cabinet Minister revealed yesterday.
Economy Faces ‘Real Climb’ To Dent Unemployment Rate
The Bahamas must see “a real climb in GDP growth” to at least 2.5
percent every year to break the cycle of double-digit unemployment
rates, a governance reformer warned yesterday.
St. Lucia
Saint Lucia businesses will soon be able to use “move-able assets” to
secure loans
The government of Saint Lucia is currently advancing an initiative that will
allow businesses to use non-traditional forms of collateral to secure
financing.
Antigua and Barbuda
Union says strike at ABS was sanctioned
The union that represents the interest of workers at the state-owned
Antigua and Barbuda Broadcasting Services (ABS) Radio and Television,
has explained that the rules of engagement have changed in relation to
who determines whether or not the workers are able to take industrial
action.
British Virgin Islands
FDL secures another gov’t contract | $800K consultancy for roads, coastal
defence restoration
St Lucia-based company, FDL Consult Incorporated, has been awarded
an $876,250 government contract to provide engineering, design, and
construction supervision services for the restoration of roads, slopes, and
coastal defences in the territory.
Goal post shift: Emergency amendment to new economic substance Act
disrupts HOA
A number of regulations governing the procedures of the House of
Assembly were yesterday suspended so legislators could make
unscheduled amendments to the Economic Substance Companies and
Limited Partnership (Amendment) Act of 2018 — a law only implemented
less than a month ago.
Dominica
Two business establishments welcome ban on Styrofoam and plastics
The ban on Styrofoam and plastic items has taken effect as of January
and two of the biggest importers of these products on the island have
welcomed the move.
Venezuela
Venezuela’s opposition leader declares himself president amid protests
Venezuelan Opposition Leader Juan Guaido declared himself interim
president in a defiant speech yesterday before masses of anti-
government demonstrators who took to the streets to demand President
Nicolas Maduro's resignation.
Crisis in Venezuela
THE row between Venezuela and the United States deepened yesterday
when Caracas gave US diplomats 72 hours to leave the country after
President Donald Trump said he recognised Opposition Leader Juan
Guiado as interim leader of the troubled nation.
INTERNATIONAL
United States
Futures edge higher, chip results soothe growth worries
U.S. stock index futures eked out some gains on Thursday after a string of
better-than-feared earnings from chipmakers helped calm concerns over
trade tensions and the longest U.S. government shutdown ever.
Senate stirs with votes on bills to end U.S. shutdown
The Republican-led U.S. Senate planned votes for Thursday on competing
proposals, one broadly backed by Democrats and the other by
Republicans, to end the partial government shutdown, both of which
seemed unlikely to resolve the month-long impasse.
United Kingdom
Sterling gnaws at key level on Brexit hopes
Sterling consolidated gains on Thursday after rocketing to a 11-week high
overnight on growing optimism that British lawmakers would be able to
avoid a no-deal Brexit.
Europe
ECB to acknowledge weak growth but keep policy unchanged
The European Central Bank is all but certain to keep policy unchanged on
Thursday but may acknowledge a sharp slowdown in economic growth,
raising the prospect of any further policy normalization being delayed.
Euro falls as markets prepare for cautious ECB
The euro fell on Thursday ahead of a European Central Bank meeting in
which policymakers may express caution about slowing economic
growth.
STMicro results trigger tech boost for European stocks
European shares climbed on Thursday as better-than-expected results
from chipmaker STMicro delivered a boost to the tech sector, shaking the
market out of a subdued mood caused by slowing global growth.
EU sues Britain over tax waivers for commodity markets
The European Commission said on Thursday it was suing Britain over tax
exemptions the country grants to some commodity markets, waivers that
Brussels considers in breach of European Union rules.
China
China says to have in-depth talks with U.S. on economic, trade issues
China and the United States will have in-depth discussions on economic
and trade issues during Chinese Vice Premier Liu He’s U.S. visit next week,
the Chinese commerce ministry said on Thursday.
Japan
Nikkei ends flat, but chip-related firms bolster market
Japan’s Nikkei ended almost flat on Thursday weighed down by a fall in
index heavyweight Fast Retailing, but strong earnings from Texas
Instruments boosted chip-related shares, supporting the broader market.
Global
Gloomy data shoves euro lower ahead of ECB meeting
The euro retreated while stocks and bonds rallied on Thursday, as painful
data from France and only modestly better readings from Germany set
the tone for the European Central Bank’s first meeting of the year.
Gloomy data shoves euro lower ahead of ECB meeting Thursday 24th January, 2019 – Reuters
The euro retreated while stocks and bonds rallied on Thursday, as painful
data from France and only modestly better readings from Germany set
the tone for the European Central Bank’s first meeting of the year.
Progress, or lack of it, in U.S.-China trade talks was also in focus, as were
signs of a Brexit delay. Emerging-market bulls were charging in Venezuela
after a U.S. move against the country’s president, Nicolas Maduro.
In France, a survey showed business activity pulled back at the fastest rate
in over four years in the face of weakening demand and the impact of
anti-government protests.
Germany’s services sector accelerated more than expected, but that
was largely offset by the first contraction in manufacturing in more than
four years.
The euro fell 0.2 percent to $1.1350, and while an upbeat tech sector
helped stocks, it meant there would be plenty of concerned questions for
European Central Bank President Mario Draghi later.
“At the moment their guidance (to raise interest rates later this year) isn’t
really on track,” said JPMorgan Asset Management fixed income portfolio
manager Seamus Mac Gorain, although he added it was probably still
too early to change them dramatically.
Traders were clearly expecting some comforting words. The ECB will keep
its sub-zero interest rates on hold at 1245 GMT and Draghi holds a news
conference at 1330 GMT.
Euro zone bond yields fell across the board and France’s gloomy data
pushed its 10-year yield down to a six-month low of 0.61 percent. The main
market gauge of euro zone inflation expectations dropped to a seven-
month low.
TRADE TALKS
Overnight in Asia, the mood was also cautious. MSCI’s broadest index of
Asia-Pacific shares outside Japan added 0.3 percent, helped by modest
gains in China. Japan’s Nikkei eased 0.1 percent.
China had taken positive cues from financial firms’ profits and the
approval for a new technology board in Shanghai. Wall Street had also
ended higher after upbeat earnings reports, including from IBM.
However, White House economic adviser Kevin Hassett said in a CNN
interview that the U.S. economy might see zero growth in the first quarter if
the partial government shutdown lasts the entire quarter.
Japan’s subdued day had also come its export orders fell at the fastest
pace in 2 1/2 years, confirming that slower growth is hitting another major
developed economy.
U.S. President Donald Trump said on Wednesday trade talks with China
were going well and China “very much wants to make a deal.”
But sources familiar with the talks say the two sides are still far apart on
structural elements critical for a deal.
Analysts at Capital Economics warned that China’s economic slowdown
looks set to be of a similar scale to 2015-16, though there are some
differences, notably less pressure on the yuan and no signs of major
capital outflows.
“Since China makes up 19 percent of the world economy, the slowdown
this year compared to last will knock 0.2 percentage points off global
growth,” they said.
In currency markets, the dollar rebounded in European trading. It was at
109.70 yen after reaching its high for the year, 110.00 yen against the
Japanese currency.
Sterling eased off its 11-week high of almost $1.31 amid growing signs that
Brexit was more likely to be delayed than the government risking leaving
the European Union without a deal on March 29.
The euro’s latest slide means it has now lost more than 1.5 percent against
the U.S. dollar since climbing to a three-month high of $1.1570 on Jan. 10.
The Australian dollar suffered a setback when one of the country’s major
banks raised mortgage rates, bolstering the case for a cut in official rates.
The yield on benchmark 10-year Treasury notes fell to 2.746 percent,
compared with its U.S. close of 2.755 percent on Wednesday. Oil prices
dropped amid concern over slowing global economic growth.
U.S. West Texas Intermediate (WTI) crude futures fell 0.5 percent to $52.38
a barrel. Brent crude futures were last down 0.4 percent at $60.87.
<< Back to news headlines >>
ECB to acknowledge weak growth but keep policy unchanged Thursday 24th January, 2019 – Reuters
The European Central Bank is all but certain to keep policy unchanged on
Thursday but may acknowledge a sharp slowdown in economic growth,
raising the prospect of any further policy normalization being delayed.
The ECB last month ended a landmark 2.6 trillion-euro ($2.96 trillion) bond
purchase scheme and maintained its guidance that an interest rate hike
is likely late this year.
But growth appears weaker than thought just a few weeks ago, with a
survey on Thursday showing business activity across the euro zone barely
expanded at the start of the year. The January reading for IHS Markit’s
Flash Composite Purchasing Managers’ Index was the weakest since July
2013.
This suggested that the ECB’s next move could even be an easing of
policy rather than a tightening.
Germany, France and Italy, the euro zone’s biggest economies, barely
grew in the fourth quarter and ECB President Mario Draghi has already
acknowledged that the slowdown could be longer than expected,
setting up the ECB for a dovish meeting.
With much of its firepower depleted, Draghi will use his few remaining tools
sparingly, suggesting Thursday’s meeting will be more about words than
action.
At most, Draghi could downgrade the bank’s economic assessment,
arguing that growth risks are now tilted to the downside. He could also
provide clues about new loans to banks, called Long-Term Refinancing
Operations or LTROs, likely to come in the spring.
“Even if the balance of risks does not formally change, we would expect
a sufficient shift in tone to signal the same thing,” Deutsche Bank said in a
note to clients.
The problem with downgrading the risk assessment is that such a change
in the bank’s guidance would naturally raise expectations of policy
action.
But the ECB is not yet ready to tweak its stance, so any change in the
guidance would risk creating an impression that policy is not in sync with
policymakers’ assessment of the economy.
Draghi could also opt to stick with the bank’s December formulation that
growth risks are still broadly balanced, even if they continue to shift to the
downside.
“President Draghi will have to pull off a balancing act - accounting for the
subdued cyclical trend in the euro zone... while accentuating the
underlying confidence of the monetary custodians in the economic
outlook,” economists at DZ Bank wrote.
The ECB announces its policy decision at 1245 GMT and Draghi will hold a
news conference at 1330 GMT.
TEMPORARY?
The problem is that a growth dip, seen as temporary just a few months
ago, shows no sign of going away.
Manufacturing contracted near the end of 2018, export growth slowed
and sentiment indicators are falling towards multi-year lows.
A predicted rise in underlying inflation has also failed to materialize and
employment growth is slowing, a worrying sign for wages and inflation.
All this suggests that the euro zone is now growing at or even below trend,
so inflationary pressures may take longer to build, testing the credibility of
the ECB, which has undershot its price growth target since early 2013.
Some of the weakness may be temporary, like the struggles of the
German auto industry to adjust to new emissions standards, investor
caution ahead of Brexit or the drag on sentiment from protests against
French President Emmanuel Macron.
But sluggish external demand is likely to be more persistent, with China’s
economic struggles likely to exacerbate the slowdown.
If such a drag on growth persists, the ECB will be pressed to signal record
low rates for even longer, providing more stimulus by delaying a hike.
It could also offer long-term loans to banks on more generous terms and
may tweak its guidance on how long it plans to invest cash from maturing
bonds back into the market.
Policymakers can afford to wait before taking more concrete steps,
hoping for growth to pick up in the coming months and letting markets do
its work for now by shifting rate hike expectations as data disappoint.
Investors now see a hike only in mid-2020, keeping borrowing costs low,
even without explicit commentary from the ECB.
“If, however, we move from a risk of a technical recession in some
countries, our baseline, to a protracted downturn with knock-on effects
on the labour market and possibly financial stability, then the ECB would
be forced into something more drastic,” Bank of America Merrill Lynch
said.
“We don’t think the ECB is there, especially not in the midst of a
succession debate for several board positions, which probably incentivises
a lot of candidates to take a centrist stance.”
($1 = 0.8798 euros)
<< Back to news headlines >>
Nikkei ends flat, but chip-related firms bolster market Thursday 24th January, 2019 – Caribbean News Now
Japan’s Nikkei ended almost flat on Thursday weighed down by a fall in
index heavyweight Fast Retailing, but strong earnings from Texas
Instruments boosted chip-related shares, supporting the broader market.
The Nikkei share average dipped 0.09 percent to 20,574.63, hit by a 3.1
percent fall in Fast Retailing, which accounts for more than 9 percent of
the Nikkei. But it managed to stay above its 25-day moving average at
20,451.
The broader Topix was up 0.36 percent at 1,552.60, with chip-related
shares and financials leading the gains.
Chip equipment makers enjoyed big relief rallies after Texas Instruments
Inc beat Wall Street’s profit estimates, easing investor fears sparked by
warnings of a slowing smartphone market from Apple Inc.
Advantest Corp surged 6.2 percent while Tokyo Electron jumped 4.5
percent and Screen Holdings gained 5.9 percent.
Financials also gained, with banks rising 1.1 percent and securities
brokerages 1.6 percent.
Kabu.com Securities jumped 20.9 percent, hitting limit-high, after the news
that telecom firm KDDI Corp was considering investing in Kabu.com.
KDDI shares ended down 0.4 percent.
Yet, turnover has been low recently as investors are on the sidelines,
analysts said. On the Tokyo Stock Exchange’s main board, turnover was
below 2 trillion yen for the past four days, compared with the average of
about 2.6 trillion yen over the past year.
“Basically, investors are in a wait-and-see mode ahead of earnings. It’s
becoming clear that the impact of U.S.-China trade frictions is not
negligible,” said Takaaki Yoshino, head of investment technology office at
Nissay Asset Management.
The earnings season will be in full swing next week in Japan.
Elsewhere, shares linked to the city of Nagasaki got a boost after Pope
Francis unveiled a plan to visit Japan, sparking expectations his visit would
be a big publicity boost and help attract tourists to the city.
<< Back to news headlines >>
Euro falls as markets prepare for cautious ECB Thursday 24th January, 2019 – Reuters
The euro fell on Thursday ahead of a European Central Bank meeting in
which policymakers may express caution about slowing economic
growth.
The ECB is expected to reaffirm its plan to raise interest rates by the end of
the year but traders will focus on how explicitly, if at all, the central bank
acknowledges the slow-down.
The euro has lost around 1.6 percent of its value over the last two weeks as
investors bet the ECB will keep monetary policy accommodative for an
extended period.
If recent weaker-than-expected economic activity in Germany and
France leads ECB President Mario Draghi to point to a potentially longer
lasting slowdown, that could hurt the euro.
“We see a risk of modest dovish bias from Draghi today given the long
stream of the soft euro zone data and look for the euro to test $1.1310,”
said ING FX strategist Petr Krpata.
At 0830 the euro was down 0.2 percent at $1.1355 EUR=EBS.
Germany, France and Italy, the euro zone’s biggest economies, barely
grew in the fourth quarter and French business activity fell unexpectedly
this month, a survey showed on Thursday.
The ECB holds its first meeting of the year at a time when concerns are
also growing about global trade tensions and Brexit.
Sterling traded marginally lower at $1.3043, hovering near highs last seen
in mid-November in a sign traders expect Britain to avoid a chaotic exit
from the European Union.
Some analysts expect limited upside for sterling. Philip Wee, currency
strategist at DBS says that most of the gains in the pound are due to the
unwinding of short positions. He sees sterling capped in the range of
$1.3170-1.3240.
Since Prime Minister Theresa May’s divorce deal with the EU was rejected
by lawmakers last week, lawmakers have been trying to plot a course out
of the crisis but no option has the majority support of parliament.
The dollar index .DXY, a gauge of its value versus six major peers, was
steady at 96.06.
The greenback remains hamstrung versus its rivals, restrained by concerns
over global growth, the U.S. government shutdown and a yet-unresolved
U.S.-Sino trade dispute.
The Aussie dollar AUD=D3 was a big mover in the Asian session, trading
half a percent lower at $0.7104 after National Australia Bank said it would
raise mortgage rates by 12 to 16 basis points. Earlier, the Aussie was in
positive terrain on the back of solid jobs data.
<< Back to news headlines >>
STMicro results trigger tech boost for European stocks Thursday 24th January, 2019 – Reuters
European shares climbed on Thursday as better-than-expected results
from chipmaker STMicro delivered a boost to the tech sector, shaking the
market out of a subdued mood caused by slowing global growth.
The pan-European STOXX 600 gained 0.4 percent by 0930 GMT, in line with
Germany's DAX .GDAXI while Italy's FTSE MIB .FTMIB climbed 1.1 percent.
The tech sector .SX8P led the way, jumping 1.8 percent as investors
pounced on a bit of good news from chipmaker STMicro, soothing fears
about a sector which has been bruised by slowing demand.
Chipmaker STMicroelectronics (STM.MI) jumped 7 percent after reporting
a fourth-quarter margin slightly above targets, though it predicted a sharp
fall in first-quarter sales.
Liberum analysts said such large estimate cuts are largely priced into
semiconductor stocks, adding: “We therefore regard current weakness as
a strong buying opportunity”.
AMS (AMS.S), Siltronic (WAFGn.DE), Infineon (IFXGn.DE), ASML (ASML.AS)
rose 3.7 percent to 73 percent.
Investors are watching results like hawks this season after earnings
expectations sank as a slowing global economy took its toll. Companies’
comments on both current trading and the future outlook will be critical.
“The earnings season has been reasonable so far, but when you’ve got
these macro headwinds it doesn’t give people confidence to place their
marginal pound in risk assets,” said Gary Waite, portfolio manager at
Walker Crips Investment Management.
Disappointing results dented some.
Shares in Danish pharmaceuticals company Novozymes (NZYMb.CO) fell
3.1 percent, the biggest STOXX faller, after the CFO said Middle East
markets were likely to remain weak in 2019.
Italian fashion brand Tod’s (TOD.MI) was also punished by the market,
falling 5.6 percent after it said like-for-like sales for 2018 fell 3 percent due
to a worsening of the performance in Italy and the rest of Europe.
“Despite it mentioning ‘visible’ results from recently launched initiatives,
we cannot ignore that it has been guiding for - and failing to deliver - an
H2-weighted rebound for more than two years,” wrote Berenberg
analysts.
“We believe a turnaround is unlikely to materialize anytime soon,” they
added.
Outside results, deal news drove some moves.
Denmark’s DSV (DSV.CO) rose 1.9 percent to a three-month high after
Kuehne & Nagel (KNIN.S) said Panalpina (PWTN.S) was too overvalued for
it to make a takeover bid.
Kuehne & Nagel’s comments cut the probability of a costly bidding war
for Panalpina, a positive for DSV which approached the Swiss logistics firm
with a $4.1 billion offer last week.
Broker notes moved some stocks.
Swiss chocolate maker Barry Callebaut (BARN.S) climbed 4.9 percent with
traders citing an upgrade from Goldman Sachs, while Fresenius climbed
3.6 percent after BAML upgraded it to “buy”.
Investors remained sceptical any market rally could last as long as the
U.S.-China trade war and Brexit negotiations remained unresolved.
“I still think the headwinds are still too strong, we see the market trading
sideways until some of these issues get resolved,” said Walker Crips’ Waite.
<< Back to news headlines >>
Sterling gnaws at key level on Brexit hopes Thursday 24th January, 2019 – Reuters
Sterling consolidated gains on Thursday after rocketing to a 11-week high
overnight on growing optimism that British lawmakers would be able to
avoid a no-deal Brexit.
While a firmer dollar prompted currency traders to book some profits after
a more than 2.3 percent rally in the pound so far this month, various
market position indicators and derivative market signals are indicating
more pound bullishness for now.
On Thursday, the British currency edged a fifth of a percent lower at
$1.3038 after briefly scaling a 2-1/2 month high of $1.3094 in the Asian
session.
It was trading just below a key market level of $1.3071, the 200-day
moving average for the pound, a level it hasn’t traded above since May
2018.
The pound has been the biggest gainer this month in the G10 currency
universe with its peers such as the dollar and the euro dogged by
concerns of a spreading slowdown in the global economy.
“The driver behind the latest recovery in the pound has been
expectations that a no-deal withdrawal can be avoided, and yesterday’s
headlines encouraged investors to add to those bets,” said Charalambos
Pissouros, a senior market analyst at JFD Brokers.
An attempt by British lawmakers to prevent a no-deal Brexit gained
momentum on Wednesday after the opposition Labour Party said it was
likely to throw its parliamentary weight behind that.
Data has also been briefly supportive of the pound this week after strong
employment data this week suggested Britain’s labour market remained
robust despite an economic slowdown before Brexit.
In the absence of weekly positions data, banks’ internal flows and data
compiled by some of the biggest institutions — BNP Paribas, Royal Bank of
Canada, Bank of America Merrill Lynch, Morgan Stanley and Scotiabank
— indicated pound positions have become more neutral in recent days
compared to big bearish bets in December.
Implied volatility gauges in the pound also extended their downward path
with one-month tenors falling to a two-month low on Thursday at around
10.5 “vol” and nearly half of levels seen in mid-November.
Against the euro, the pound was slightly weaker at 87.05 pence.
<< Back to news headlines >>
China says to have in-depth talks with U.S. on economic, trade issues Thursday 24th January, 2019 – Reuters
China and the United States will have in-depth discussions on economic
and trade issues during Chinese Vice Premier Liu He’s U.S. visit next week,
the Chinese commerce ministry said on Thursday.
Both sides are currently in touch on the detailed arrangements
surrounding his visit on Jan. 30-31, Gao Feng, spokesman at the
commerce ministry, told reporters.
Reports the United States has cancelled consultations with China are
untrue, Gao said, adding that the two sides have maintained close
contact.
“During the upcoming high-level negotiations, both sides will continue to
hold in-depth talks on various economic and trade issues of mutual
concern,” Gao said.
U.S. President Donald Trump has vowed to increase tariffs to 25 percent
from 10 percent on $200 billion worth of Chinese imports on March 2 unless
China takes steps to protect U.S. intellectual property.
Trumps also wants China to end policies that force American companies
to turn over technology to a Chinese partner, allow more market access
for U.S. businesses, and reduce other non-tariff barriers to American
products.
China has repeatedly played down complaints about intellectual
property abuses, and has rejected accusations that foreign companies
face forced technology transfers.
Firms in both countries are feeling the sting of U.S. tariffs and retaliation
from China. Apple Inc (AAPL.O) earlier this month rattled markets by
cutting its sales outlook, blaming soft Chinese demand.
On Wednesday, White House economic adviser Kevin Hassett said he
believed the United States and China could reach a trade deal by March
1.
That view was backed by equally optimistic comments by Trump on
progress made in talks.
“I like where we are right now,” he said.
<< Back to news headlines >>
EU sues Britain over tax waivers for commodity markets Thursday 24th January, 2019 – Reuters
The European Commission said on Thursday it was suing Britain over tax
exemptions the country grants to some commodity markets, waivers that
Brussels considers in breach of European Union rules.
Under EU rules, countries need EU authorization not to charge sales tax on
products and services. In 1977, Britain obtained a waiver to charge a zero-
rate value-added tax (VAT) on some commodity markets, but has since
unlawfully extended its scope to other markets, the EU executive
Commission said.
Last July, Brussels sent a warning letter to Britain over the case. On
Thursday, it stepped up the legal battle by referring Britain to the EU Court
of Justice. The procedure could end up in fines if the court rules against
the UK.
Britain charges no VAT on marketplaces in which it is the global leader,
such as the London Metal Exchange and the London bullion market.
The Commission is requesting that Britain impose the tax. It said the waiver
“generates major distortions of competition to the detriment of other
financial markets within the EU”.
The legal battle has been going on since 2015, but the Commission
stepped it up after Britain decided to leave the EU. Britain has said the
waivers are legal.
EU legal procedures usually last years and only in rare cases have ended
up in fines against EU states that refuse to make the required changes.
As Britain is leaving the EU, it is unclear whether the country would change
its rules to abide by EU tax legislation. It is also unclear whether it would
agree to pay possible fines to Brussels after it quits the union.
<< Back to news headlines >>
Futures edge higher, chip results soothe growth worries Thursday 24th January, 2019 – Reuters
U.S. stock index futures eked out some gains on Thursday after a string of
better-than-feared earnings from chipmakers helped calm concerns over
trade tensions and the longest U.S. government shutdown ever.
Investors were expecting weak reports from semiconductor companies
amid warnings of a slowing smartphone market from Apple Inc. But Xilinx
Inc and Lam Research Corp reported better-than-expected quarterly
results.
Shares of Xilinx rose 9.8 percent and Lam Research 6.4 percent in
premarket trading. Texas Instruments Inc missed quarterly revenue
estimates but beat on profit, pushing its shares up 1 percent.
Gains in chip stocks helped Nasdaq futures gain 0.5 percent, while S&P
futures were up about 0.1 percent.
While earnings reports from U.S. chip companies soothed nerves about
the impact of the U.S.-China trade war on their businesses, sombre results
from Korean chipmaker SK Hynix Inc fed into the gloom amid China’s
economy slowing to its weakest in decades.
At 7:03 a.m. ET, Dow e-minis were up 31 points, or 0.13 percent. S&P 500 e-
minis were up 4.5 points, or 0.17 percent and Nasdaq 100 e-minis were up
32.5 points, or 0.49 percent.
After a steady start to 2019, in which the S&P 500 hit over one-month high,
stocks have lagged this week as fears of slowing growth hit risk appetite.
The benchmark index is trading about 10 percent below the record high it
hit in September.
International Monetary Fund Managing Director Christine Lagarde
reiterated that the major risk facing the global economy was the U.S.-
China trade tensions, which could precipitate the slowdown of the
Chinese economy.
More than three-fourth of the 76 S&P 500 companies have reported
fourth-quarter results have topped profit estimates, according to Refinitiv
data.
But the earnings growth estimates for last quarter have dropped to 14.2
percent from 20.1 percent at the start of October, while 2019 profit growth
estimates have come down to 5.9 percent from 10.2 percent in the same
period.
Southwest Airlines Co shares rose 3.8 percent after the carrier’s quarterly
profit beat estimates. However, the company said the government
shutdown had knocked off $10 million to $15 million from its revenue so far
in January.
Shares of American Airlines Group also rose 2.4 percent.
A slate of transport companies, including railroad operator Union Pacific
Corp, and airlines will report quarterly earnings.
Copper miner Freeport-McMoran and industrial company W W Grainger
Inc, whose results are watched for signs on the health of the economy, will
also release reports later in the day.
<< Back to news headlines >>
Senate stirs with votes on bills to end U.S. shutdown Thursday 24th January, 2019 – Reuters
The Republican-led U.S. Senate planned votes for Thursday on competing
proposals, one broadly backed by Democrats and the other by
Republicans, to end the partial government shutdown, both of which
seemed unlikely to resolve the month-long impasse.
Republican President Donald Trump last month triggered the shutdown,
now in its 34th day, by demanding $5.7 billion for a U.S.-Mexico border
wall, opposed by Democrats, as part of any legislation to fund about a
quarter of the government.
The longest such shutdown in U.S. history has left 800,000 federal workers
as well as private contractors without pay and struggling to make ends
meet, with the effects on government services and the economy
reverberating nationwide.
Senate Majority Leader Mitch McConnell plans a vote on a Democratic
proposal to fund the government for three weeks but does not include
the wall funding that Trump wants.
Its prospects looked dim in the Republican-controlled chamber, although
at least one conservative senator reportedly plans to back it. The
Democratic-controlled U.S. House of Representatives has passed similar
bills but Trump has rejected legislation that does not include the wall
funding.
McConnell has previously said he would not consider legislation that
Trump did not support. The mere fact that he is willing to allow for a vote
suggests he may be trying to persuade lawmakers of both parties to
compromise.
U.S. Senator Cory Gardner intends to vote for the bill, the Denver Post said,
citing the lawmaker’s spokesman. Representatives for the Colorado
Republican could not be immediately reached for comment.
McConnell also planned to hold a vote on a separate bill that includes
wall funding and a temporary extension of protections for “Dreamers,”
hundreds of thousands of people brought to the United States illegally as
children, to reflect an offer Trump made on Saturday.
Democrats have dismissed Trump’s offer, saying they would not negotiate
on border security before reopening the government and would not
trade a temporary extension of the immigrants’ protections in return for a
permanent border wall they have called ineffective, costly and immoral.
McConnell’s calculation may be that if both bills fail, that could convince
Republicans and Democrats to seek a compromise.
One possibility emerged on Wednesday when House Democratic leaders
floated the idea of giving Trump most or all of the money he seeks for
security along the Mexican border but that could not be used to build a
wall.
Representative James Clyburn, the No. 3 House Democrat, said
Democrats could fulfil Trump’s request for $5.7 billion for border security
with technological tools such as drones, X-rays and sensors, as well as
more border patrol agents.
On Wednesday, House Speaker Nancy Pelosi, the top U.S. Democrat,
essentially disinvited Trump from delivering the annual State of the Union
address in the House chamber until the government is fully open. Trump
initially called her move “a disgrace,” before acquiescing in a late-night
post on Twitter.
“I will do the Address when the Shutdown is over. I am not looking for an
alternative venue ... because there is no venue that can compete with
the history, tradition and importance of the House Chamber,” he wrote. “I
look forward to giving a ‘great’ State of the Union Address in the near
future!”
Pelosi responded on Twitter with a call to Trump to support House-passed
legislation to end the government shutdown. “Please accept this proposal
so we can re-open government, repay our federal workers and then
negotiate our differences,” she said.
A Reuters/Ipsos poll last week found more than half of Americans blamed
Trump for the shutdown even as he has sought to shift blame to
Democrats after saying last month he would be “proud” to close the
government for border security.
<< Back to news headlines >>
Against all odds… PPP Govt will reopen sugar estates–Jagdeo Thursday 24th January 2019 – Kaieteur News
The International Monetary Fund (IMF) is one of the many institutions that
has advocated for Guyana’s authorities to reduce the size of its sugar
industry since it was too costly to upkeep production at competitive rates.
Following this advice, the APNU+AFC administration closed four estates,
which displaced over 4,000 sugar workers, leaving them without a social
net or programme to fall back on.
But this state of affairs could all be temporary. According to Opposition
Leader, Bharrat Jagdeo, if the People’s Progressive Party (PPP) wins the
next elections, its members will find a way to reopen the estates.
Jagdeo said, “The PPP will find a way of reopening the estates that are
closed so as to put people back to work. We will explore all forms of
partnerships to get that done plus innovative financing and investments so
people can return to providing for their families.”
The PPP General Secretary said that through a series of investment
initiatives and support from the treasury, the workers from the Wales Estate
would benefit from the PPP Government.
He said, “We had said last year that we would also assist the sugar workers
directly, that is, through a stipend. But if we can find jobs for everyone
then we wouldn’t have to resort to that because they would be
employed.”
The Guyana Sugar Corporation (GuySuCo) is using three estates for
production – Blairmont and Albion in Berbice and Uitvlugt in West
Demerara.
The remaining four estates, Wales (West Bank Demerara); Enmore (East
Demerara) and Rose Hall and Skeldon (East Berbice), are up for offers of
divestment and privatization.
BUILDING A RESILIENT ECONOMY
Finance Minister, Winston Jordan, had warned that it is not likely that the
APNU+AFC administration would be able to build a resilient economy by
the next General and Regional Elections if radical changes are not made.
In this regard, the Finance Minister, “Unless we are prepared to move
away from sugar as we know it, into value added and take opportunities
available in Caricom markets but more particularly Brazil, once we can
get a road going there,” then the nation cannot expect a sudden
turnaround in the way the economy responds to external shocks.
The Finance Minister said that to get to resilience, which means the
economy can withstand shocks, Guyana would have to move away from
primary production into the next stage of the value chain. He said it would
also require that the Government put in place, climate resilient
infrastructure and practices.
The economist said, “We just won’t move from 50 years of doing the same
thing into resilience. It has to be diversified and it has to be green and
withstand shocks that are ever present when you are involved in primary
production.”
He continued, “Even if you were able to produce all the sugar you
desired, we would have trouble because we don’t have a captive
market anymore. We have to go out there and hustle like everyone else.
“At no time, certainly in the post-independence period, were we able to
produce sugar at a price that could have competed on the international
market.”
Jordan added, “We always had to have some form of protection along
the way. We had a long protection under the European Union artificial
price, which allowed us to stay in it for a very long time and perhaps it was
a good or a bad thing.
“It perhaps was a bad thing in the sense that, were we forced to adjust
using international prices as our benchmark then who knows; we might
have been a different sugar entity today.”
<< Back to news headlines >>
Clamp down on illegal, unregulated pesticides Thursday 24th January 2019 – Guyana Chronicle
IMPORTERS who are caught with illegal and unregulated pesticides will
have to face the penalties which include legal charges.
The Pesticides and Toxic Chemical Control Board (PTCCB) intends on
enforcing the law which allows the board to pursue legal charges against
persons who import illegal and unregulated pesticides.
“Last year was a good year in terms of enforcement work and in terms of
addressing illegalities in the agriculture sector… some of the things in terms
of what is the next step for this year is pursuing what is provided for in the
Constitution,” said PTCCB Registrar, Trecia David, during an exclusive
interview with the Guyana Chronicle on Monday.
The board had its first court case on Tuesday but intends on pursuing more
legal options when dealing with delinquents.
“There needs to be a stronger message to limit the smuggling of illegal
pesticides… once we confiscate it, they suffer losses but some go back
and do the same thing, so we want to let the law be used as a deterrent
to this,” said David, adding that Guyana racks up a hefty cost to dispose
of illegal and unregulated pesticides which are seized.
The legal charges against persons will be used as a “polluter pay”
principle, said Senior PTCCB inspector, Suresh Amichand.
Disposal of confiscated items should not be a burden to the State and
Amichand believes that the delinquents should be paying for the disposal.
Despite employing various measures to deal with the smuggling of illegal
pesticides, Amichand said the authority would always encounter the
problem because of Guyana’s porous borders.
In order to improve vigilance at the borders, the PTCCB has entered into a
Memorandum of Understanding (MoU) with the Guyana Revenue
Authority (GRA) to effectively manage the ports.
“In terms of what is seized, we just do not want to do it in the context of
blocking business because we could always have the pesticides
registered, once they are tested and proven not to be harmful,” said
David.
<< Back to news headlines >>
‘Hundreds of Acres’ for LPIA Expansion Wednesday 23rd January 2019 – Tribune 242
Nassau airport’s managers are moving to secure “hundreds of acres” for
potential future expansion of its runway and terminal “footprint”, a
Cabinet Minister revealed yesterday.
Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business
that ensuring “the necessary land” is available to meet Lynden Pindling
International Airport’s (LPIA) future needs was an issue already “in play”.
He added that LPIA’s operator, the Nassau Airport Development
Company (NAD), needed to “consider everything to accommodate” the
steadily increasing passenger traffic that has resulted from Baha Mar’s
opening and 16 percent year-over-year stopover visitor growth for much
of the 2019 first quarter.
Mr D’Aguilar’s insight into NAD’s planning challenges came as he
revealed that the government has agreed on a ten-year extension to the
existing deal with Vantage Airport Group, the Canadian headquartered
firm, to provide management services to LPIA’s operator.
The minister said this, combined with the 20-year extension to NAD’s lease
to operate LPIA, would strengthen the airport manager’s relationship with
current and future business partners. He explained that both extensions
would boost confidence among investors that long-term deals with NAD
will not be impacted by expiring leases and subsequent political
interference.
With NAD looking to the future following its recent $139m debt
refinancing, Mr D’Aguilar told Tribune Business: “We’re considering
increasing the footprint of LPIA, and to secure the necessary land from the
Crown to allow for future expansion of the runways and terminals.
“It’s very important that we start to secure that real estate, so no
development takes place that impacts the natural expansion of the
footprint. It’s important that people don’t build buildings in the way of
future runways. They’re [NAD] thinking about all that now and getting it
started.’
“All that is in play. An additional runway is quite big and wide, and needs
additional real estate, so one can assume that this would be in the
hundreds of acres. It’s just to secure land for future expansion.”
Mr D’Aguilar said such longer-term planning was in addition to “the
infrastructure works NAD is contemplating on the airside sector”, which
include runway upgrades, new aircraft taxiways and parking spaces, and
further enhancements to LPIA’s terminals.
“Obviously the traffic going through that airport is growing quite
considerably,” he added, “and we now need to consider everything to
accommodate the increase in traffic. There are a lot of things we need to
rectify, and Vantage brings that expertise to the table. We want to keep
that relationship.”
LPIA remains arguably The Bahamas’ most important infrastructure asset,
as it is the main gateway through which around 1.5m higher-spending
stopover visitors access this nation’s tourism product and fuel the country’s
largest industry and wider economy. This role means it is absolutely critical
that the airport keep pace with economic and tourism growth.
NAD’s 2018 financial statements, which were disclosed to potential
investors as part of its recent $139m refinancing, also include a provision
for resurfacing the existing LPIA runways that is currently valued at $32m
with a 13 percent discount rate.
Mr D’Aguilar, meanwhile, said the extensions of the existing arrangements
with NAD and Vantage to March 31, 2057, and March 31, 2029,
respectively, simply made good business sense as it gave the airport
operator’s current and potential commercial partners certainty and
predictability in knowing their investments were secure for the long-term.
NAD’s initial 30-year lease was due to expire in less than 20 years from
now, at end-March 2037, and the minister said the Government had been
informed that the relatively short remaining duration was unnerving parties
talking to the LPIA operator.
“The Government has agreed to extend the lease,” Mr D’Aguilar
confirmed in response to Tribune Business’s revelation of the 2057
extension. “Here we are in 2019 with less than 20 years to go.
“It’s difficult for NAD to negotiate relationships with less than 20 years left
on its lease. The Government saw fit to extend it by another 20 years, the
lease from the Airport Authority to NAD, because anyone wanting to
enter into a relationship with NAD knows that agreement is in place for the
long-term.
“People were saying: ‘What happens after 2037? It’s not even 20 years. If
potential investors at NAD are mentioning this as a stumbling block, it’s
quick and easy to fix, so we’ve fixed that. The risk is very low from the
Government’s perspective because the Airport Authority is owned by the
Government, and NAD is owned by the Government.”
Mr D’Aguilar then revealed that the Minnis administration has extended
Vantage’s NAD management contract, which was due to expire at end-
March 2019, by a further 10 years to 2029.
“We were minded to do so because we were pleased with the
performance of NAD/Vantage, and Vernice Walkine and the team of
Bahamians she heads up that represent Vantage there,” he added.
“They’ve successfully had the ratings on NAD’s debt upgraded twice,
albeit the second time was a minor modification from a ‘BB+’ to a ‘BBB-’,
but it restored the investment grade rating and dropped the negative
outlook.”
Arguing that the combined effect of the two extensions would give LPIA
investors major reassurance, Mr D’Aguilar told Tribune Business: “It makes
persons considering entering into any relationship at the airport
comfortable with the fact that the status quo is going to remain, and that
NAD is going to be managing the airport and NAD will be managed by
Vantage.
“There are Bahamians in place managing NAD with the ability to draw on
the expertise of Vantage. This is a good set-up and we want to continue
that. Vernice Walkine and her team have done an excellent job to
improve operations and the debt.
“The recent refinancing of $139m of high interest debt took it to a more
reasonable 7.5 percent, and we’re projecting that NAD - which has
always been cash flow positive but suffered net losses - will still be cash
flow positive but move into a net profit from 2019.”
NAD is projecting that it will turn a comprehensive profit of $2.56m for its
current financial year to end-June 2019, driven by further increases in
passenger facility fees and other forms of revenue.
Its financial statements for the year to end-June 2018 revealed that its net
comprehensive loss fell by almost $10m year-over-year - dropping from
$14.153m to $4.371m - as its slashed losses by some 70 percent.
The improved financial performance was driven by increased passenger
traffic stemming from Baha Mar’s full opening, plus fee increases, both of
which contributed to significant hikes in passenger processing and
facilities fees.
Passenger facility charge revenue grew by 15.5 percent or over $7m, rising
from $45.464m to $52.508m, while processing fees were up by 51.4
percent from $7.525m to $11.396m. As a result, total operating revenue
jumped from $77.028m to $89.396m, a 16 percent rise that put NAD closer
than ever before to covering both operating expenses and $68.473m in
financing costs
<< Back to news headlines >>
Economy Faces ‘Real Climb’ To Dent Unemployment Rate Wednesday 23rd January 2019 – Tribune 242
The Bahamas must see “a real climb in GDP growth” to at least 2.5
percent every year to break the cycle of double-digit unemployment
rates, a governance reformer warned yesterday.
Robert Myers, a principal with the Organisation for Responsible
Governance (ORG), told Tribune Business that the slight uptick in the
national jobless rate to 10.7 percent in November 2018 was merely a
reflection of the continued “sluggish” economy.
Arguing that the latest Department of Statistics labour force data was of
little surprise, he recalled International Monetary Fund (IMF) projections
that The Bahamas needed to achieve an average annual economic
growth rate of 5.5 percent between 2013 to 2018 if it was to absorb all
new workforce entrants and dent existing unemployment by 50 percent -
a rate it had fallen well short of.
Expressing fears that The Bahamas faced “stagnation” if it did not snap
out of a decade-long low-to-no-growth trend soon, Mr Myers said “the big
question” yet to be answered by any government or the private sector
was why the economy has consistently under-performed.
He again blamed the ease and cost of doing business for The Bahamas’
losing its competitive edge, which has left the economy unable to
produce enough jobs to absorb the 3,000-6,000 annual high school
leavers or make major dents in the unemployment hangover from the
2008-2009 recession.
“They’re saying the same thing we’ve always said, which is you’ve got to
focus on the ease and cost of doing business and making it more
attractive and competitive for foreign direct investment (FDI) and local
investors to invest in the Bahamian economy,” Mr Myers told Tribune
Business of the latest unemployment data.
“What we’re seeing is a sign of the sluggish climbing momentum of the
economy. It’s just as we said. There has to be a 5.5 percent growth rate to
deal with the national debt and the unemployment rate. That number is
no surprise to anybody.
“It’s [5.5 percent] really aggressive, and we have to work very hard to get
to a trajectory of that type of growth otherwise we’re going to stagnate.
We need to see at least 2.5 percent growth year-over-year. We need to
see a real climb in GDP growth.”
The official unemployment data means that just over one in ten
Bahamians seeking work cannot find it, representing a material number
that suggests a significant segment of society is being left behind in the
21st century economy.
While the twice-yearly Department of Statistics survey represents a job
market “snapshot” at a point in time, the data is particularly useful when
compared with long-term trends over several years.
Such analysis reveals that the total number of Bahamians unemployed
has changed little over two years, representing much of the Minnis
administration’s first term in office. Some 25,135 Bahamians were deemed
unemployed in November 2018 compared to 25,365 in November 2016 - a
decline of just 230 persons.
“The big question is why is the economy not growing fast enough?” Mr
Myers told this newspaper. “In our view, that speaks to the ease and cost
of doing business in The Bahamas and regional competitiveness. We’ve
also got to focus on the cost of government and the cost that offloads on
the private sector.”
K P Turnquest, the deputy prime minister, acknowledged as much in
Tuesday’s interview with Tribune Business, where he said: “The reality is the
Government has been the major employer of record for too many years,
and the burden of that public sector puts tremendous demands on the
system for capital that should be employed in the private sector for more
productive use.”
He confirmed that the Government’s ultimate objective was to restructure
and reposition the Bahamian economy for sustainable growth through a
combination of strategies involving diversification beyond tourism and
financial services; improvements in the ease and cost of doing business;
deregulation; liberalisation; and a reduction in bureaucracy and red
tape.
Mr Turnquest, though, said it would take time to eliminate “structural
bottlenecks” that have been allowed to persist for decades, with the
intended benefits from the Government’s actions possibly not
materialising within the next two to five years.
The Government now has to execute on its talk and plans, an area where
many past administrations have been weak, with all political parties able
to take parts of the latest unemployment data to make their case and
support attacks on their opponents.
The Minnis administration can point to the private sector employment
gains, where numbers rose by 3.8 percent to 135,135 workers in the six
months to November 2018, as a sign that its strategies are starting to bear
fruit.
It has also taken comfort in the 10,400 “net new jobs” created over the
past 18 months since it was elected to office, including the 2,305 added
during the half-year prior to the latest survey, as another indication the
Bahamian economy is starting to turn.
The Opposition Progressive Liberal Party (PLP), though, can seize on the
increase in the national unemployment rate even though Baha Mar’s full
opening has taken place.
The Ministry of Finance itself admitted that “the rate of job growth is still not
adequate to absorb the number of school leavers entering the labour
market each year.” These new entrants, typically numbering anywhere
from 3,000 to 6,000, always show up in the November unemployment
survey if they are unable to find work, typically increasing the jobless rate
compared to the May figures.
The total Bahamian labour force, including both employed and
unemployed workers, has increased by over 6 percent or some 13,660
persons over that same May 2017 to November 2018 period. Translated,
this means there are 3,260 more persons seeking work than there were
jobs available, hence the rise in the unemployment rate since the last
general election.
The pattern was repeated between the six months from May 2018 to
November 2018, with 2,305 net new jobs created but the labour force,
over the same period, expanding by 4,250 persons - meaning there were
almost 2,000 more people than jobs created.
<< Back to news headlines >>
Saint Lucia businesses will soon be able to use “move-able assets” to
secure loans Wednesday 23rd January 2019 – St. Lucia News
The government of Saint Lucia is currently advancing an initiative that will
allow businesses to use non-traditional forms of collateral to secure
financing.
With this new venture, businesses will be able to use their movable assets
such as their inventory, equipment, accounts receivables, vehicles or
anything that is of value to the business as security for a loan.
In an effort to improve the ease of doing business in Saint Lucia,
government is undertaking a number of interventions in the business
environment as it relates to improving access to finance.
The National Competitiveness and Productivity Council, a member of the
Doing Business Task Force, is coordinating the legislative framework that
will facilitate the use of movable properties to secure loan financing.
Access to finance is but one of the eleven parameters used to determine
the ease of doing business within a country.
Fiona Hinkson, director of the National Competitiveness and Productivity
Unit (NCPU), explains how this proposed legislation under the rubric
“secure transactions in movable properties” will transform the business
environment.
“Right now, the common form of collateral used is house and land. With
this new venture businesses will be able to use their move-able assets such
as their inventory, accounts receivable, equipment, vehicles and anything
that is valuable to the business in order to secure loan financing.”
According to the statistics from International Finance Corporation, a
member of the World Bank Group, approximately 70 percent of a firm’s
wealth is concentrated in its movable assets. Hinkson highlighted that
Jamaica has already enacted similar legislation and she is hopeful that
the secure transactions legislation would be finalized and approved
before the end of 2019.
“As you know St. Lucia was number one in the region in doing business
and with this new implementation in Jamaica, they have now moved to
the number one position, which meant that they are now able to provide
more financing to locals who want to be able to expand their business.”
The secure transaction legislation would be accompanied by an online
securities registry which would be established within the registry of the High
Court. It will provide financial information on security interest on move-
able properties to financial institutions or persons who provide credit to
businesses or individuals.
“It also gives the financial institution the comfort in knowing that there is a
legal framework for them to on-lend using movable properties. Also, when
you look at the business environment, we expect to see an improvement
in the business environment. We expect to see these types of initiatives
impacting the countries overall competitiveness.”
Thirty-five percent of local firms consider the lack of access to finance a
major to sever barrier to their growth and competitiveness.
<< Back to news headlines >>
Another Caricom country places ban on single-use plastic products Thursday 24th January, 2019 – Jamaica Observer
Barbados has become the latest Caribbean Community (Caricom)
country to announce a ban on the importation, retail, sale and use of
petro-based single use plastic products.
It said that products such as single-use plastic cups; cutlery, including
plastic knives, forks and spoons; stirrers; straws; plates; egg trays — both
plastic and Styrofoam — and Styrofoam containers used in the culinary
retail industry will be banned from April 1.
Jamaica, St Lucia, Grenada, Dominica, Antigua and Barbuda are among
Caricom countries that have already instituted or announced plans to
ban the use of these plastic products.
Maritime Affairs and the Blue Economy Minister Kirk Humphrey, and
Minister of the Environment and National Beautification Trevor Prescod,
made the announcement regarding the ban.
Humphrey said that with effect from January 1, 2020, there will be a ban
on all petro-based plastic bags, with the exemption of those used for the
packaging of pharmaceuticals/medicines, hygiene and the preservation
of food.
In addition, a moratorium has been extended on the use of tetra pack
straws, while poultry producers have been given more time to find
alternatives to the Styrofoam trays used to package chicken.
“Barbados has to be a value-driven country. We have large expectations
for ourselves. We have said that we want to be fossil fuel free by 2030; we
want to have a renewable platform; we want to be a country that when
we speak to the world we speak as an environmentally friendly country
and destination.
“[Therefore] these are the things that we must do if our words and our
actions are to be aligned. And so, we have made ourselves clear as to
where we stand on single-use plastic,” Humphrey said.
He said the decision came after months of consultation with stakeholders,
including plastic bag manufacturers, persons in the poultry industry, the
Barbados Manufacturers' Association, the Barbados Chamber of
Commerce and Industry, the Customs Department, and importers.
Humphrey said that the ban on petro-based plastic bags was extended
until January 1, 2020, to allow manufacturers to come up with alternative
ways of making plastic bags from a bio-based material that was
environmentally healthy and friendly.
“We do not wish to come to an established industry that employs
Barbadians and deprive them of opportunity, but we also know that the
cost of continuing to use these things in Barbados will outweigh any
potential benefits,” he said.
Prescod said that plastic bottles used in the production of juices will not be
subjected to the ban. He added that the required legislation needed to
be in place to allow consumers to take the bottles back to the suppliers to
be part of a recycling process.
<< Back to news headlines >>
Barbados judge joins CCJ bench Thursday 24th January, 2019 – Jamaica Observer
Justice Andrew Burgess, formerly a Justice of Appeal in Barbados' Court of
Appeal, was recently sworn in as a judge of the CCJ at a ceremony held
at Government House in Barbados.
Justice Andrew Burgess was sworn in by Dame Sandra Mason, governor
general of Barbados.
President of the Caribbean Court of Justice (CCJ), Justice Adrian
Saunders, also gave remarks welcoming the newest CCJ judge to the
bench.
Justice Saunders, speaking of Justice Burgess' appointment, noted that
from “rigorous, competitive, merit-based process that Justice Burgess
emerged as a successful candidate.
“His appointment is richly deserved. He has been, over the last eight years,
a judge of the Barbados Court of Appeal [and] throughout those eight
years I have had occasion to study his judgements,” said Justice
Saunders.
“I have always been impressed by Andrew's breadth of knowledge, by
the high quality of his writing skills and by his attention to detail. He will be
a most welcome addition to the CCJ bench as he brings with him a
tremendous amount of experience both as an eminent member of the
academic community and as an appellate judge,” the CCJ president
added.
Justice Burgess was selected from a field of 18 applicants by the Regional
Judicial and Legal Services Commission (RJLSC), an independent 10-
member commission, comprised of a group of distinguished people from
all over the region. Six commissioners are selected by bar associations and
law institutions in the region. Two others are, respectively, a chairperson of
the Judicial Service Commission and a head of judiciary of a Caribbean
Community (CARICOM) member state, each on a triennial rotating basis.
Finally, there are two people from civil society nominated jointly by the
secretary general of Caricom and the director general of the
Organisation of Eastern Caribbean States.
In his remarks to the gathering, Justice Burgess stated that he is aware that
the CCJ is perhaps the most important post-independence regional
initiative.
“In my view, the CCJ has so far established itself as an exemplary
Caribbean institution. I am also aware that to protect and build upon this
is not for the faint-hearted,” he said. He said that he will also rely upon the
support of this family and extended network to ensure that he undertakes
the demands with diligence.
Justice Burgess became a Court of Appeal Judge in 2010 in Barbados. He
was previously a dean of the Faculty of Law at the University of the West
Indies' Cave Hill campus and a professor of corporate and commercial
law. He also had a distinguished career internationally as a judge of the
Inter-American Development Bank's Administrative Tribunal in Washington,
DC, USA. Justice Burgess was the body's vice-president in 2007 and 2009
and served as president from 2009-2010. He is also a judge on the World
Bank Administrative Tribunal, having been appointed in 2013. In 2017, he
was elected by his fellow judges to be the vice-president of the tribunal.
Justice Burgess' appointment will fill the vacancy left by the elevation of
the CCJ president to that post in July 2018.
The RJLSC, said the CCJ, will shortly announce the appointment of
another judge selected during the same process, to succeed Justice
David Hayton, who will be retiring in July 2019 after a distinguished tenure
at the court.
<< Back to news headlines >>
Search on For New BOJ Governor Wednesday 23rd January, 2019 – Jamaica Gleaner
The new governor will replace Brian Wynter whose contract is due to
come to an end in November.
In a statement issued Wednesday afternoon, Finance Minister Dr Nigel
Clarke said in 2017 Wynter was asked to extend his appointment for two
years to advance specific reforms and to play a central role in the
formulation and consideration of the reform of the Bank of Jamaica Act.
The extension would bring to 10 years Wynter’s tenure at the Central Bank.
“He has successfully achieved the goals agreed at that time. With these
achievements and the expectation of timely parliamentary approval of
the legislative amendments to modernise the Bank of Jamaica Act, it is
time to shift to the next phase in the leadership and governance of the
BOJ,” the minister said.
Clarke said the search for a new Central Bank Governor will be in keeping
with the principles of transparency and good governance.
He also announced that David Marston, a former Bank of Jamaica
employee and former staffer at the International Monetary Fund will lead
the search committee comprising.
Other committee members:
Tony Lewars
Heleen Davis-Whyte
Gary ‘Butch’ Hendrickson
Clarke said the committee members will help him to identify a shortlist of
suitable candidates for the position from which he will make a submission
to the Cabinet.
The Cabinet will then recommend to the Governor General the individual
to be appointment.
“The process will seek to identify the best-suited candidate to lead the
newly modernised Bank of Jamaica in achieving its mandate to serve the
interests of the people of Jamaica,” Clarke said.
<< Back to news headlines >>
Cuba Rejects Trump’s Threat To Tighten Embargo Thursday 24th January, 2019 – Jamaica Gleaner
Cuban ambassador to Jamaica, Ines Fors Fernandez, has vowed that
threats from the United States to further tighten the long-standing
embargo on the Caribbean island nation by activating Title Three of the
Helms-Burton Act will only make its people more resilient while praising
countries like Jamaica for their firm support over decades.
Her statement comes a day after the Cuban Foreign Affairs Minister Bruno
Rodriguez Parrilla poured scorn on President Donald Trump’s threat of
activation of the law. Title III of the Helms-Burton Act of 1996 allows Cuban
Americans to sue for property seized by the Castro regime. It is said to be
worth US$9 billion.
Fernandez reasoned that the European Union and several other countries
supported a United Nations resolution last year in a stand with Cuba, with
the exception of the United States and Israel.
“European countries condemn this ongoing US embargo towards Cuba
because they are directly affected by this section (Title III). So Title III of the
Helms-Burton Act goes against the interest of third countries in Cuba,”
explained Fernandez.
She said that the embargo has had a withering impact on the Cuban
people.
“There are a lot of Cubans affected by this policy, including children and
senior people. I am talking about people who cannot feel good about
this lifelong blockade of a country by another. We cannot do anything
but to criticise and condemn this move by the US. This embargo has not
subjugated the Cuban minds. It has made us stronger and more resilient,
and we will get even stronger for this,” she said.
Rodriguez, meanwhile, noted in his letter that the US administration’s
threat to tighten the blockade against Cuba would be a flagrant violation
of international law and a direct attack on the sovereignty and interests of
third countries.
“Cuba strongly, firmly, and categorically rejects such a threat, which is
construed as an extremely arrogant and irresponsible hostile action, and
repudiates the disrespectful and slanderous language used in the public
announcement made by the State Department,” Rodriguez said.
On January 16, 2019, the US State Department announced a decision to
suspend for only 45 days the implementation of Title Three of the Helms-
Burton Act, “in order to conduct a careful review … in light of the national
interests of the United States and the efforts to expedite a transition to
democracy in Cuba, and include factors such as the Cuba’s brutal
oppression of human rights and fundamental freedoms and its
indefensible support for increasingly authoritarian and corrupt regimes in
Venezuela and Nicaragua”.
<< Back to news headlines >>
Jamaica says it's monitoring developments in Venezuela Thursday 24th January, 2019 – Jamaica Observer
THE Jamaican Government said last night that it was closely monitoring
the latest developments in Venezuela, where the Opposition leader
declared himself interim president, triggering a fresh round of bloodshed
in the troubled country.
“The situation is dynamic and we are cognisant of the reactions from
various other governments across the hemisphere.
“We wish to make clear that our primary concern remains for the well-
being of the people of Venezuela, the maintenance of democracy,
respect for human rights and the rule of law,” the Ministry of Foreign Affairs
and Foreign Trade said in a statement last night.
“We reiterate our wish for a return to dialogue in the hope for a peaceful
and amicable resolution to the situation in Venezuela. Jamaica remains
ready, as we have previously stated, to be part of any process geared at
a solution at the earliest,” added the statement.
Jamaica recently voted against recognising the Nicolas Maduro regime in
Venezuela at the Organisation of American States (OAS) which Foreign
Minister Kamina Johnson Smith said was not a break with its foreign policy.
“It was in fact not. We always vote on the side of human rights,
democracy and the rule of law, which is what we did at the OAS,” she
said recently.
<< Back to news headlines >>
Venezuela’s opposition leader declares himself president amid protests Thursday 24th January, 2019 – Jamaica Observer
Venezuelan Opposition Leader Juan Guaido declared himself interim
president in a defiant speech yesterday before masses of anti-
government demonstrators who took to the streets to demand President
Nicolas Maduro's resignation.
Guaido immediately drew recognition from the Trump Administration,
which said it would use the “full weight” of US economic and diplomatic
power to push for the restoration of Venezuela's democracy.
Raising his right hand in union with tens of thousands of supporters, the
head of the Opposition-controlled congress took a symbolic oath before
God to assume executive powers he says are his right under Venezuela's
constitution and take over the presidency until new elections can be
called.
Guaido said he was taking the politically risky step just two weeks after
Maduro took his own oath to a second six-year term confident that it was
the only way to rescue Venezuela from “dictatorship” and restore
constitutional order
“We know that this will have consequences,” Guaido, 35, told the
cheering crowd standing before a lectern emblazoned with Venezuela's
national coat of arms.
“To be able to achieve this task and to re-establish the constitution we
need the agreement of all Venezuelans,” he shouted.
The declaration came as tens of thousands of anti-government
demonstrators poured into the streets accusing embattled Maduro of
usurping power and demanding he step down as the country reels from a
crushing economic crisis forcing millions to flee or go hungry.
Large crowds of protesters gathered in Caracas waving flags and
chanting “Get out Maduro!” in what was the largest demonstration since
a wave of unrest that left more than 120 dead in 2017.
Pro-government demonstrators dressed in red in support of Maduro were
also marching in the capital, at times crossing paths with opposition
protesters and shouting “sell outs” and “traitors”. National guardsmen
launched tear gas at anti-government protesters in the middle-class
neighbourhood of El Paraiso but for the most part the marches continued
without conflict.
“Join us!” the protesters cried out to a line of officers wearing helmets and
carrying shields. “You are also living this crisis!”
The protest is considered a crucial test for the reinvigorated opposition as
it seeks to send a forceful message that Maduro no longer has the
people's backing and appeals to the military and the poor to shift loyalties
that until recently looked solidly behind the president. The protests were
called to coincide with an historic date for Venezuelans — the anniversary
of the 1958 coup that overthrew military dictator Marcos Perez Jimenez.
“The democratic forces are here advancing,” Opposition Leader Maria
Corina Machado said as she marched. “Not so that Maduro changes but
so that he leaves.”
President Donald J Trump in a statement called on other Western
hemisphere governments to join him in recognising Guaido.
“The people of Venezuela have courageously spoken out against Maduro
and his regime and demanded freedom and the rule of law,” Trump said.
The demonstration comes after a whirlwind week that saw an uprising by
a tiny military unit put down by government forces, fires set during protests
in poor neighbourhoods and the brief detention by security forces of
Guaido, the newly installed head of the opposition-controlled congress.
Guaido, who took the reins from a long list of better-known predecessors
who have been exiled, outlawed or jailed, was dragged from an SUV just
over a week ago by intelligence agents but was quickly released amid an
international outcry.
Driving the crisis was Maduro's decision to ignore international opposition
and take the presidential oath on January 10 for a second term widely
considered illegitimate after his main opponents were banned from
running against him.
Over the last two nights, Venezuelans angry over their country's spiralling
hyperinflation, and food and medical shortages have gathered in the
streets banging pots and pans and setting up barricades in protest. In the
city of San Felix, residents set fire to a statue of Maduro's mentor and
predecessor, the late Hugo Chavez.
In the southern city of Ciudad Bolivar, a 30-year-old worker, Carlos
Olivares, was killed when four unidentified men descended from a beige
Jeep and fired upon a crowd that was looting a store. Two more
unidentified people were also killed, according to a police report of the
incident, while two were injured.
For much of the past two years, following a deadly crackdown on the
2017 protests and the failure of negotiations ahead of last May's
boycotted presidential election, the coalition of opposition parties has
been badly divided over strategy and other differences as millions of
desperate Venezuelans fled the country's hyperinflation and widespread
food shortages. But buoyed by unprecedented international criticism of
Maduro, anti-government forces have put aside their infighting and are
projecting a united front.
In the run-up to Wednesday's protests, Guaido crisscrossed Caracas
attending outdoor assemblies known as “open cobildos” — for the
revolutionary citizen councils held against Spanish colonial rule —
pumping up crowds by arguing that Maduro must go for democracy to
be restored.
“We are tired of this disaster,” he said Monday from the roof of a college
building. “We know this isn't a fight of a single day but one that requires
lots of resistance.”
An enthusiastic crowd of students answered with shouts of “Freedom!”
Guaido has been targeting his message to Venezuela's military, the
traditional arbiter of political disputes.
Maduro, who lacks the military pedigree of his mentor, Chavez, has
sought to shore up support from the armed forces by doling out key posts
to top generals, including heading the PDVSA oil monopoly that is the
source of virtually all of Venezuela's export earnings. He has also been
playing commander in chief, appearing last week at a military command
meeting wearing camouflage fatigues and receiving the blessing of the
defence minister, Gen Vladimir Padrino Lopez.
But beyond the public displays of loyalty from the top brass, a number of
cracks have started to appear.
On Monday, Venezuelans awoke to news that a few dozen national
guardsmen had taken captive a loyalist officer and seized a stockpile of
assault rifles in a pre-dawn raid. The government quickly quelled the
uprising, but residents in a nearby slum took to the streets to show their
support for the mutineers by burning cars and throwing stones at security
forces, who fired back with tear gas.
Disturbances continued into Tuesday, with small pockets of unrest in a few
working-class neighbourhoods where the government has traditionally
enjoyed strong support.
“People are tired of so much misery,” said Carmen Marcano, holding up
her shirt to show seven buckshot wounds suffered during the clashes in the
Cotiza slum next to where the rebellious guardsmen were captured.
Retired Major General Cliver Alcala, a one-time aide to Chavez and now
in exile, said the opposition's newfound momentum has reverberated with
the military's lower ranks, many of whom are suffering the same hardships
as regular Venezuelan families.
“I am absolutely certain that right now, especially younger troops are
asking themselves whether Maduro is their commander in chief or a
usurper,” Alcala said. “As we say in the barracks, hunger is the only thing
that can devour fear of the government.”
Maduro has accused the opposition of inciting violence with the aim of
provoking a bloodbath.
“I demand the full rigour of the law against the fascists,” Maduro said
Tuesday night, blaming what he called “terrorists” allegedly linked to
Guaido's Popular Will party for a fire at a cultural centre named for a pro-
government lawmaker murdered in 2014.
Though intimidation has worked for the government in the past, it may not
this time, said Dimitris Pantoulas, a Caracas-based political analyst.
Discontent now appears to be more widespread and the ranks of security
forces and government-allied groups have been thinned by the mass
exodus of mostly young Venezuelans, he said.
“The government is resorting to its old tricks, but the people no longer
believe them,” Pantoulas said.
<< Back to news headlines >>
Crisis in Venezuela Thursday 24th January, 2019 – Jamaica Observer
THE row between Venezuela and the United States deepened yesterday
when Caracas gave US diplomats 72 hours to leave the country after
President Donald Trump said he recognised Opposition Leader Juan
Guiado as interim leader of the troubled nation.
“Before the people and nations of the world, and as constitutional
president... I've decided to break diplomatic and political relations with
the imperialist US Government,” Venezuelan President Nicolas Maduro
told a crowd of red-shirted supporters gathered at the presidential
palace.
Maduro was sworn into a contested second term two weeks ago in a
move condemned by dozens of nations.
The US president threw his support behind the Venezuela Opposition
leader after he declared himself as the legitimate president in a defiant
speech yesterday before masses of anti-government demonstrators who
took to the streets to demand President Nicolas Maduro's resignation.
Trump, when asked yesterday whether the US would use military action in
Venezuela to support the ouster of President Maduro his response was
ambiguous.
“We are not considering anything, but all options are on the table,” Trump
told reporters following a roundtable discussion at the White House on
medical costs.
Trump did not clarify what he meant by “all options”.
His administration has imposed several rounds of sanctions aimed at
pressuring the government of the South American country.
In a statement, Juan Guaido urged all foreign embassies in the country to
disobey Maduro's orders and not remove their diplomats. Although the
message didn't name the US, it seemed to be issued in response to
Maduro's late afternoon announcement that he was severing relations
with the United States.
The 35-year-old opposition leader says it was his right under Venezuela's
constitution to take over the presidency until new elections can be called.
He and his supporters accused Maduro of usurping power after being
sworn into a contested new term.
Canada also said it was recognising Guaido as the interim president of
Venezuela.
Two officials familiar with the matter confirmed the Canadian position, but
spoke on the condition of anonymity because they were not authorised
to speak publicly.
Analysts said last night that recognition of the Opposition leader by the US
and Canada will increase international pressure on Maduro and could
result in severe economic consequences for his government.
Three South American nations are recognising the Venezuela Opposition
leader as interim president.
The leaders of Brazil, Colombia and Paraguay all quickly expressed their
support after Guaido took a symbolic oath before thousands of
supporters.
Colombia President Ivan Duque said his nation would accompany
Guaido “in this process of transition toward democracy”.
Brazilian President Jair Bolsonaro also said that he would support the 35-
year-old lawmaker “so that peace and democracy return to Venezuela”.
Paraguayan President Mario Abdo Benitez said on Twitter that his country
supported Venezuela's interim President Juan Guaido. “Count on us to
embrace freedom and democracy again,” Abdo Benitez said.
Russia, which has long supported Venezuela's socialist regime, was sharply
critical of US President Donald Trump's recognition of an Opposition
politician who has declared himself the country's legitimate interim
president.
“I think that in this developing situation the United States is trying to carry
out an operation to organise the next colour revolution in Venezuela,” the
deputy chairman of the foreign affairs committee of the upper house of
parliament, Andrei Klimov, told state news agency RIA-Novosti. “Colour
revolution” is a Russian term for the popular uprisings that unseated
leaders in Georgia, Ukraine and Kyrgyzstan.
“I do not think that we can recognise this; it is, in essence, a coup,”
another committee member, Vladimir Dzhabrailov, was quoted as saying
by the Interfax agency.
Russia is a major political ally of Venezuela, and Russia's largest oil
company, Rosneft, is heavily invested in the South American nation's oil
fields, which produce less crude each month.
And at least two Latin American governments are standing behind
Venezuelan President Nicolas Maduro.
Bolivian President Evo Morales has expressed his “solidarity” with the
Venezuelan people and condemned what he called an “imperialist
attack”.
On Twitter he said: “Our solidarity with the Venezuelan people and
@Nicolas Maduro, in these decisive hours when the claws of imperialism
are once again trying to deal a death blow on democracy and self-
determination on the peoples of South America. We will not be the
backyard of the US again.”
A spokesman for Mexican President Andres Manuel Lopez Obrador also
said that Mexico would continue recognising Maduro as Venezuela's
president.
Jesus Ramirez Cuevas told Milenio television: “We maintain our position of
neutrality in the Venezuelan conflict.”
He also said: “The Mexican Government is analysing the situation in
Venezuela. Until now, there is no change in its diplomatic relations with
that country nor with its government.”
Meanwhile, the political standoff has resulted in more bloodshed in
Venezuela. Authorities said two protesters were killed and five others
injured in anti-government demonstrations in the city of San Cristobal.
A spokeswoman for the state of Tachira's health agency said the two
demonstrators were shot to death but provided no further details. At least
one other person has been killed in this week's unrest.
At the same time, demonstrators in Caracas were facing off against
security forces firing rubber bullets and tear gas as they marched through
the capital.
Thousands of Maduro's followers gathered outside the presidential palace,
heeding socialist leader Diosdado Cabello's call to protect the embattled
leader.
Last night, a US senator from Florida called for designating Venezuela a
“terrorist state” and imposing additional sanctions in order to pressure
President Nicolas Maduro to resign.
Senator Rick Scott, the junior senator from Florida, told reporters in
Washington that Maduro “is clearly a terrorist”.
Scott added: “The way Maduro has treated his citizens is disgusting.”
The senator urged US President Donald Trump to “look at every sanction
he can have” and impose penalties on anybody doing business with or
supporting Maduro. He said he expects Guiado, who has declared himself
interim president, will call elections “as quickly as possible”.
Florida is home to tens of thousands of Venezuelans who have fled the
chaos in their country in recent years.
And head of the Organization of American States (OAS) says that the
two-year process initiated by Venezuela to leave the organisation was
interrupted after Guaido declared himself president of the South
American nation.
Luis Almagro said Wednesday: “Obviously the clock is stopped from
today.”
Guaido presides over the opposition-controlled National Assembly, which
adopted a document Tuesday expressing its intention to remain in the
OAS and appoint ex-legislator Gustavo Tarre Briceno as special
representative.
Maduro had begun the process of leaving the entity in April 2017, alleging
that Almagro exceeded his duties by criticising a member state.
Venezuelans were yesterday holding rallies across Spain against the
government of Nicolas Maduro and in support of an opposition leader
who has declared himself interim president of the country.
The rallies were staged in many provincial capitals, with major protests in
Tenerife, Barcelona and Madrid. They were timed to coincide with
marches in the streets of Venezuela.
Organisers said that around 7,000 protesters gathered in a central square
of the Spanish capital, where there is a large Venezuelan community.
The protesters cheered when exiled members of the Venezuelan
opposition announced that the US Government had recognised the
interim leadership of Juan Guaido.
They called on Spain's Socialist Prime Minister Pedro Sanchez to follow the
administration of US President Donald Trump in endorsing Guaido.
Last night, the Inter-American Commission on Human Rights told the
administration of President Nicolas Maduro that social protest and
freedom of expression were “fundamental values” in any democratic
society.
The human rights body of the OAS States said repression of
demonstrations through excessive use of force may be a grave violation
to fundamental rights.
The commission said in a press release that the Venezuelan crisis has
deteriorated since Maduro took office on January 10 for a second six
year-term.
<< Back to news headlines >>
Thousands come ashore as cruise ship docks Thursday 24th January, 2019 – Trinidad Express Newspapers
ALMOST 4,000 cruise ship passengers arrived in Trinidad as the MSC
Preziosa made its fourth call on the Port of Port of Spain yesterday.
Many of the passengers, who came from Europe, Guadeloupe,
Martinique and other places, entered the Cruise Ship Complex dancing to
soca songs played by a DJ.
Preziosa captain Corrado Iaconis also came off the ship to relax for a few
minutes in the Cruise Ship Complex, the Ministry of Tourism said in a
statement yesterday.
Four students of French from St George's College, Barataria, provided
translation services as about 712 of the 3,595 visitors went on pre-booked
tours to popular places of interest, while there were an estimated 500
privately arranged tours.
Last year, Trinidad's Carvalho's Cruise Services won the bid to be the port
of change for the MSC's crew.
On Tuesday night 25 rooms were booked
<< Back to news headlines >>
Macro Fund falls $0.20 Thursday 24th January, 2019 – Trinidad Express Newspapers
OVERALL market activity resulted from trading in 12 securities of which
three advanced, five declined and four traded firm.
The Composite Index declined by 0.25 points (0.02 per cent) to close at
1,305.90. The All T& T Index declined by 0.19 points (0.01 per cent) to close
at 1,706.57.
The Cross Listed Index declined by 0.04 points (0.03 per cent) to close at
122.33. The SME Index remained at 99.50.
Trading activity on the first-tier market registered a volume of 108,854
shares crossing the floor of the Exchange valued at $2,062,745.02.
GraceKennedy was the volume leader with 53,774 shares changing hands
for a value of $164,548.44, followed by First Citizens Bank with a volume of
24,624 shares being traded for $837,234.70. Guardian Holdings Ltd
contributed 10,020 shares with a value of $185,364, while TTNGL LIMITED
added 7,525 shares valued at $219,379.40. CLICO Investment Fund
registered the day's largest gain, increasing $0.09 to end the day at
$20.49. Conversely Calypso Macro Index Fund registered the day's largest
decline, falling $0.20 to close at $14. On the mutual fund market 11,373
shares changed hands for a value of $232,567.54. CLICO Investment Fund
was the most active security, with a volume of 11,293 shares valued at
$231,447.54. CLICO Investment Fund advanced by $0.09 to end at $20.49.
Calypso Macro Index Fund declined by $0.20 to end at $14.00.
The Second Tier Market did not witness any activity.
The SME Market did not witness any activity. CinemaOne remained at
$9.95.
The USD Equity Market did not witness any activity. MPC Caribbean Clean
Energy remained at US$1.00.
<< Back to news headlines >>
Canadian oil company eyes Ortoire Wednesday 23rd January, 2019 – Trinidad Express Newspapers
CALGARY, Canada-based Touchstone Exploration Inc said it is the most
active onshore upstream company in Trinidad last week. Upstream is
where the oil or gas comes from, usually under the ground on land, or
under the sea floor offshore, but is also used to refer to general activity
related to that first stage of oil and/or gas extraction.
Touchstone told the Toronto Stock Exchange (TSX) where it is listed that it
delivered an average of 1,900 barrels per day (bbls/d) of field estimated
crude oil production through the first 13 days of January 2019. That
compares favourably to the Consolidated Monthly Bulletin of the Ministry
of Energy and Energy Industries latest data which said that up to
November, 2018, Touchstone was producing 1,098 bbls/d.
'We are very pleased to continue to deliver positive production results, as
evidenced by our 25 per cent year over year oil sales growth. As we move
into 2019, we are seeking to prioritise the exciting exploration opportunities
we have identified at Ortoire together with the predictable development
drilling inventory we have amassed to date,' Paul R Baay, Touchstone
president and chief executive officer, told investors.
Ortoire is the area just before the village of Mayaro in south east Trinidad.
Touchstone said it has already received a Certificate of Environmental
Compliance (CEC) from the Environmental Management Authority for
four drilling locations on its Ortoire exploration property.
"The company has received significant interest from industry partners to
participate in the exploration and development of our Ortoire exploration
property. With minor development work obligations and our identified
Ortoire exploratory prospects, Touchstone is currently considering the best
allocation of capital to deploy in 2019 to our development drilling and
exploration programme,' Touchstone said in a statement.
The company explained to investors: 'Touchstone has been proceeding
with regulatory approvals required to drill on our Ortoire exploration
property. To drill a well, the company must initially obtain a well location
CEC and then proceed to apply for a standard well drilling licence.'
Touchstone added: 'The company has submitted all required
documentation for four CECs, which represent a total of 14 drilling
locations. One CEC covering four drilling locations has been approved to
date, and the company anticipates that a second CEC for four additional
locations will be approved within the next 30 days. In addition, the
company has also identified two rigs that may be used for future drilling
operations.'
Touchstone said: 'We have commissioned our independent external
reserve evaluators to conduct evaluation reports for three internally
identified prospects on the property. The reports will assist the company in
validating the technical data associated with the prospects, and a
summary of the results will be published when finalised."
Crude oil sales up 25 per cent in 2018 vs 2017
Touchstone said it achieved average fourth quarter 2018 crude oil sales of
1,851 bbls/d, a 28 per cent increase relative to the 1,448 bbls/d produced
in the prior year's comparative quarter. Touchstone realised average 2018
annual crude oil sales of 1,718 bbls/d, representing an increase of 25 per
cent from 2017 annual sales.
Touchstone also told the market it 'drilled three wells in the fourth quarter
of 2018, bringing the aggregate number of development wells drilled in
2018 to 11, which made Touchstone the most active onshore upstream
company in Trinidad.'
Touchstone also told the TSX: "Effective December 1, 2018, Petrotrin
transferred its upstream assets to the newly formed Heritage Petroleum
Company Limited. Although the transition impacted sales volumes in the
last week of November, the company has not encountered further sales
interruptions to date. From an operations perspective, the transition has
been seamless, with only minor delays noted for existing well workover
approvals.'
Target: 2,000 barrels per day in January
Touchstone said it performed seven and 28 well re-completions during the
three months, and year ended December 31, 2018, respectively.
Turning to drilling, Touchstone told investors: 'In 2018, Touchstone drilled a
total of 11 of our budgeted 14 development wells. As previously
announced, two of the budgeted shallow locations at our South Palo
Seco property were deferred indefinitely due to external surface lease
issues. We voluntarily postponed drilling the remaining WD-8 well in late
December due to the decline in crude oil prices. Despite the reduced
development programme, we expect to reach our near-term average
production target of 2,000 bbls/d in January 2019.'
To put into perspective, that would be about double what Touchstone
produced in T& T last year (1,098 bbls/d up to November 2018) and more
than what the USA's EOG Resources produces in crude oil on average
(1,385 bbls/d), though not as much as Australia's BHP Billiton (4,679 bbls/d)
or the UK's BP plc (6,804 bbls/d). Outside of state-owned oil companies
(formerly Petrotrin), France's Perenco is the country's top crude oil
producer, putting out 10,476 bbls/d up to November 2018, according to
Energy Ministry data.
During the fourth quarter of 2018, Touchstone said it successfully drilled
two wells on the WD-8 block and one well on its WD-4 property.
Drilling over 2.2km into the ground
The FR-1800 well was spud on November 1, 2018 and reached a total
depth of 4,700 feet. Wireline logs indicated the presence of approximately
588 feet of net oil pay, 456 feet in the Forest formation and 132 feet in the
Cruse formation. The well was completed on December 21, 2018,
Touchstone said.
The FR-1801 well was spud on December 10, 2018 and reached a total
depth of 4,564 feet on December 23, 2018. Wireline logs indicated the
presence of approximately 306 feet of net oil pay, with 188 feet in the
Forest formation and 118 feet in the Cruse formation. The well was
completed on January 4, 2019, the company said.
Both wells are currently flowing up casing at a combined average field
estimated production rate of approximately 242 bbls/d (based on the
previous seven days to January 13, 2019). The company anticipates that
initial flush production rates will likely decrease, with the wells being
placed on pump during the first quarter of 2019.
Touchstone said: 'PS-605 was spud on our WD-4 block on December 4,
2018, reaching a total depth of 7,250 feet (over 2.2 kilometres) on
December 27, 2018.
Wireline logs indicated the presence of approximately 608 feet of net oil
pay, with 461 feet in the Forest formation and 147 feet noted in the Cruse
formation. Completion operations have commenced on PS-605 and are
expected to be concluded by early February.'
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NGC’s global vision Monday 4th January, 2019 – Caribbean News Now
The National Gas Company (NGC) is ready to go global.
“Our vision at NGC is not to be a domestic player. There is no room for
domestic companies operating in today’s world in energy. You’ve got to
be an integrated player across the value chain but you also have to be
operating in multiple jurisdictions to reduce risk and improve the richness
and consistency of earnings,” chairman on the State gas company, Gerry
Brooks, said Tuesday.
Brooks presented an economic outlook for TT and the NGC at a breakfast
meeting hosted by the American Chamber of Commerce of TT at the
Hyatt Regency, Port of Spain.
Gas and energy-related business will be the catalyst for sustained growth
in the country and the company to be sure, he said, but the NGC’s
intention is to be able to sustain that growth.
Part of that is exploring opportunities beyond TT’s borders. The group has
long considered options in Africa, and last year, it signed a term sheet
with Venezuela to start processing natural gas from the across-border
Dragon field, as well as a gas agreement with Grenada.
Its first overseas office, however, will be in Guyana, scheduled to open
later this year, Brooks said.
The South American nation, also part of Caricom, is on the cusp of an oil
boom, with the first commercial oil production expected next year of up
to 100,000 barrels of oil per day, gradually increasing to 500,000 barrels per
day by 2023, catapulting Guyana into to the top 30 oil producing
countries in the world.
While Brooks acknowledged it was more of an oil push, with natural gas
there mainly used for reinjection, TT cannot afford to ignore Guyana,
especially since so many of the major energy multinationals have already
started setting up a presence, most notably ExxonMobil, who were the first
to strike oil.
“Guyana has been described as the sweetest deep spot in the world so
we want to deepen our approach. We want to provide infrastructure
assistance, ship to shore services, logistical support, as well as
collaborations with the UWI and UTT and liaising with local (TT)
companies,” Brooks said.
Notwithstanding, he did acknowledge that there were political tensions in
the country that needed to be handled with care.
The NGC also last year signed a commercial agreement with Global
Petroleum Group, a Russian company that found gas in Grenada. The
agreement will allow NGC first dibs to access, process and sell Grenada’s
gas. Brooks said an appraisal well will be drilled later this year. “That will tell
us what the prospects are and allow that gas to flow through to Trinidad,
which will give Grenada income and TT content,” he said.
It’s not just about TT participating regionally, he said, but NGC will be using
its capabilities and infrastructural access to market and leverage natural
gas in the region for the benefit of the territories it works in, he said.
Staying on trend
Brooks, who was appointed chairman in 2015, said the company’s mantra
was “to become an international player with an integrated value chain.”
As part of its trajectory, the company has refocused and re-engineered its
strategy and what its role is as a transporter, aggregator, merchant and
marketer of natural gas across the gas value chain.
“We are ruthlessly focused on profitability and ruthlessly focused on value
added. We are not spending time on recreation parks, playgrounds, fete
tickets, et cetera. Our business is to focus on gas and gas-based
developments,” Brooks said.
When he took over the business, he said, the situation was dire. “We met
$4.6 billion in claims, and gas production was 3.2 billion cubic feet (bcf).
Negotiations had not started and many were outstanding. (Commodity
gas) prices and production collapsed. It was very frightening,” he said.
Since them, the company has managed to turn double digit increases.
Profits in 2015 were $515 million. In 2017, they were $2.2 billion, he said. Gas
production increased to 3.6 bcf with a hope for 3.8 bcf to 3.9 bcf in 2019-
2020.
The company’s targeted growth trajectory in 2018 and 2019 is 12.5 per
cent annual compounded growth, and a further 12 per cent increase in
profits in 2018, a trend Brooks is confident the company will maintain.
NGC’s asset base is $43 billion, and the company has already identified
areas it can target for inorganic growth.
Over the last year, negotiations have been completed with EOG
Resources, BPTT, Caribbean Nitrogen Company, Nitrogen 2000 and
Nutrien. For 2019, the company hopes to conclude negotiations with MHTL
Complex, Methanex, and local content with BP, as well as further
discussions on Atlantic’s train one.
“The energy sector expanded by eight per cent in 2018 and we are
hoping for nine per cent in 2019. The economy will pick up. One of our
objectives is getting to growth and maintaining it,” Brooks said.
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Union says strike at ABS was sanctioned Thursday 24th January, 2019 – The Antigua Observer
The union that represents the interest of workers at the state-owned
Antigua and Barbuda Broadcasting Services (ABS) Radio and Television,
has explained that the rules of engagement have changed in relation to
who determines whether or not the workers are able to take industrial
action.
The clarification from general secretary of the Antigua Trades and Labour
Union (AT&LU) Hugh Joseph follows a remark made on Tuesday by
Information & Broadcasting Minister Melford Nicholas, the minister
responsible for the state-owned entity.
During an interview on Pointe FM, the minister stated that the strike action
taken by workers in December was not sanctioned by their union.
“I know ordinarily when there is going to be a strike action that it is a
matter that is sanctioned by the executive and I specifically asked Mr.
Joseph whether or not the AT&LU has sanctioned the strike and he
indicated to me ‘no’.
“Mr. Potter would have had a meeting with the employees on the
Monday before the action took place and I know they were encouraged
to do so. But the executive never sanctioned the strike that took place at
ABS,” Nicholas said.
However, in an interview with our newsroom, Joseph explained that there
was a time, as laid out in the union’s constitution, where it would require
an executive decision to call a strike action with the concurrence of the
majority.
He said the constitution was updated to reflect certain changes, and
industrial relations officers are in constant communication with the general
secretary for guidance.
Joseph said this does not stop workers from taking matters into their own
hands, once they are not satisfied with the advice of their bargaining
agent.
“If the workers are saying we are not working, what can the general
secretary, or any other officer for that matter, do?” Joseph questioned.
As it relates to protest at ABS, Joseph stated the officer was in constant
dialogue with him and the officer informed him that he had tried without
success to reach Minister Nicholas, and they got to a point where they felt
they had no other choice but to protest.
The AT&LU General Secretary stated further that he was satisfied with that
explanation.
“The union officer was with the members; the president and [I] had
discussions with the officer and we were all aware of what was
happening,” the general secretary said.
In late December, the employees at the state-owned entity walked off
the job to protest several matters they said needed to be addressed.
These included, they alleged, poor treatment meted out to them by
management, deplorable working conditions, and outstanding overtime
payment.
The staff have since returned to work and the matter was referred to the
Labour Department, which is yet to issue a final report on the way
forward.
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FDL secures another gov’t contract | $800K consultancy for roads, coastal
defence restoration Wednesday 23rd January, 2019 – BVI News Online
St Lucia-based company, FDL Consult Incorporated, has been awarded
an $876,250 government contract to provide engineering, design, and
construction supervision services for the restoration of roads, slopes, and
coastal defences in the territory.
Cabinet decided to approve FDL on December 19 last year after the
Central Tender Board recommended the company for the job.
This contract represents one of many the company has been awarded in
the last several years.
Some of their notable contracts include a $408,000 consultancy for
National Sewerage Programme last year as well as the $499,500
engineering consultancy for the Caribbean Development Bank loan-
funded programme for damaged roads caused by Tropical Storm Otto in
2010.
Meanwhile, this latest consultancy will be done through the Recovery and
Development Agency.
Former legislators get transportation allowance
During the same December 19 sitting, Cabinet had also approved for
$7,106 to be paid yearly for transportation services for two of the territory’s
former legislators – Ralph T O’Neal and Eileen Parsons.
O’Neal who is a former Chief Minister (premier) created history as the
longest-serving elected representative in the British Virgin Islands.
Parsons is a well-known former government minister and cultural icon.
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Goal post shift: Emergency amendment to new economic substance Act
disrupts HOA Wednesday 23rd January, 2019 – BVI News Online
A number of regulations governing the procedures of the House of
Assembly were yesterday suspended so legislators could make
unscheduled amendments to the Economic Substance Companies and
Limited Partnership (Amendment) Act of 2018 — a law only implemented
less than a month ago.
The emergency amendments were brought and passed to continue the
BVI’s campaign to keep off the European Union’s blacklist of ‘tax haven’
jurisdictions.
In explaining why there came to be amendments only weeks after the
initial law was passed, Premier Dr D Orlando Smith said: “The EU — which is
the author of the whole substance argument — was changing and
introducing new requirements even up until late in the game.”
Premier Smith also said there were some typographical errors in the initial
law. These errors were made because of the ‘haste’ in which legislators
had passed the law in the first place, Dr Smith said.
No room for legal loopholes
The premier further said there were changes made to the phraseology in
sections of the legislation so as to avoid any legal loopholes. These
phraseological changes include adding certain words to the legislation.
“The addition of these words makes clear that the legislation is satisfying
the fundamental requirements … it is simply clarifying what has been
intended.”
The intended purpose of the law, as mandated by the EU, is for financial
services companies registered in the BVI to set up physical, appropriately-
staffed office spaces in the territory, if they are to continue doing business
with/through the BVI.
BOSSs Act also amended
Since financial services companies registered in the BVI before January 1
have until June 30 to start complying with the economic substance
requirements, one key amendment to the legislation provides for it (the
law) to work in conjunction with the territory’s Beneficial Ownership Secure
Search system (BOSSs) Act. Amendments, therefore, also had to be made
to this BOSSs Act in Tuesday’s sitting of the House.
For both laws to work hand-in-hand, amendments to the BOSSs Act will
not be made come into effect until June 30 — the required deadline for
companies to start showing compliance.
Under the BOSSs Act, companies are required to report who is the
beneficial owner (the ultimate owner) of that company.
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Two business establishments welcome ban on Styrofoam and plastics Wednesday 23rd January, 2019 – Dominica News Online
The ban on Styrofoam and plastic items has taken effect as of January
and two of the biggest importers of these products on the island have
welcomed the move.
General Manager of the Solid Waste Management Corporation, Florian
Mitchel, told DNO that the ban, in keeping with Prime Minister Roosevelt
Skerrit’s 2018-2019 budget announcement, is now in effect and the
importation of any Styrofoam based or plastic packaging products is not
allowed.
Mitchel said the decrease of these non-biodegradable materials in the
country will result in less harm to the environment.
“Plastic based materials do not decompose that easily, so it will take
hundreds of years before any plastic based material goes back into the
environment from the same element that it came from,” he said. “From a
solid waste stand point any alternative that can be broken down back
into the environment is something that we’ll appreciate from an
environmental perspective because of the hazards of plastic and
Styrofoam on the environment. It’s something of great benefit to us as a
reduction.”
He said apart from the Solid Waste Management Corporation, other
organisations have important roles to play in carrying out this initiative
adding that if action is being taken responsibly, this ban will have a
positive impact on the lives of Dominicans.
Dominica News Online (DNO) spoke to two major companies that
previously imported the banned items to find out how they were adapting
to the change.
J. Astaphan and Co. Ltd started to prepare for the ban since the
government first announced its intention in 2015, to impose the new
policy.
“This decision prompted us to look for an alternative line of tableware
products. In 2017, we sourced and started the distribution of our very own
line of biodegradable tableware products so we can safely say we had
been very much prepared. Additionally, we plan to introduce more
biodegradable products in early February at very attractive prices,”
Jamal Francis of Astaphan’s Marketing department told DNO.
“Our company has always been one which cared for the environment as
we have in the past included in our offering to our customers Eco-friendly
products and have been on the fore front on moving into the use of
Reusable shopper bags instead of plastic shopping bags,” he added.
Francis said that Styrofoam & plastic products accounted for a sizable
portion of the company’s overall sales, “but we are optimistic that the
sales on our current & future offerings of biodegradable products will
compensate for this loss.”
He said the main challenge of importing biodegradable replacements for
single-use Styrofoam & plastic products is the noticeable price difference
between the two line of products.
“One contributing factor to the difference in price was the fact that
biodegradable products attracted 20% import duties. Our company and
others alike met with the key stake holders in recent times, where we
presented our recommendations & concerns,” Francis stated.
The government subsequently announced that it had given the green
light to remove the 20% import duties on these products, as of January
2019.
“We want to thank the Government of Dominica and other key officials
for taking this decision,” Francis stated.
Marketing Manager of H.H.V Whitchurch and Company, Michelle Joseph,
said the company is complying with the laws and rules and regulations
that the government has put in place and are trying to source the best
bio degradable products.
Joseph says it is something that the company has tried to pursue in the
past and although the response from the public wasn’t too positive at first,
H.H.V Whitchurch is happy to be getting support from the Dominican
government.
“It’s something we have been looking at from a business standpoint,
where we have looked at it a few years back and the response wasn’t
too promising from the public, so we are actually enthusiastic that we
have the support from the Government of Dominica; that you must
comply to it,” she noted.
She said some of the replacement products are a bit difficult to source at
this time but all efforts are being made to proceed with this initiative.
“We have already sourced some products but some of the materials are
a bit difficult in getting such as packing trays, but this is a task that we
welcome because it is helping the environment which is something that
needs to be done.”
“This is going to impact our health and from an environmental
perspective, the ban on that material is going to help improve litter
management and our landfill capabilities to have less of those materials
coming to our landfill.” said Dorian Mitchell.
He called on all Dominicans to be aware of these changes and
cooperate with the government in order to keep our environment and
surroundings clean and safe.
He said that there’s a phasing out period for the sale and use of the
banned items until July 1st after which any establishment found importing
or using single-use Styrofoam and plastic items will be fined.
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