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▪ Sagicor Financial Corporation Limited’s proposed bond issue initial rating assigned at CariAA

▪ Dominica Agriculture, Industrial and Development Bank’s rating reaffirmed at CariBB-

▪ Beacon Insurance Company Limited’s rating reaffirmed at CariA-

▪ The Government of the Commonwealth of Dominica rating reaffirmed at CariBB

▪ The Government of the Republic of Trinidad and Tobago rating reaffirmed at CariAA+

▪ Eastern Caribbean Home Mortgage Bank’s rating reaffirmed at CariBBB+

▪ Sagicor Group Jamaica Limited’s initial rating assigned at CariA

▪ NIF Holding Company Limited’s TT$4 billion issue rating reaffirmed CariAA

▪ Goddard Enterprises Limited’s rating reaffirmed at CariAA-

▪ NCB Global Finance Limited’s initial rating assigned at CariA

▪ RHAND Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Development Bank of Jamaica Limited’s rating upgraded to CariA- ▪ Bourse Securities Limited rating reaffirmed at CariA- ▪ PLIPDECO’s rating reaffirmed at CariA+

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REGIONAL

Trinidad and Tobago

NGL falls $0.39

Overall market activity resulted from trading in 12 securities of which four

advanced, two declined and six traded firm.

Barbados

Barbados Government to Turn to Private Sector to Help Refurbish Health

Facilities

The Ministry of Health and Wellness intends to reach out to corporate

Barbados for assistance in refurbishing district hospitals and polyclinics

located in areas where companies do business.

Jamaica

Economy grew by 1.0% for April to June quarter – PIOJ

The Jamaican economy grew by an estimated 1.0 per cent in the April to

June 2019 quarter compared with the corresponding quarter of 2018.

PIOJ explains the latest poverty data showing an increase in 2017

The Planning Institute of Jamaica (PIOJ) is seeking to set the records

straight regarding the latest data on poverty in the country, showing a 2.2

per cent jump in 2017 to 19.3 per cent of the population living below the

poverty line.

BOJ again lowers policy interest rate

The Bank of Jamaica (BOJ) has again lowered its policy interest rate by 25

basis points to half-of-a-per cent, effective today.

General Accident half-year profit up nearly 40%

Listed general insurance company General Accident (GENAC) is already

eyeing another good year after a near 40 per cent increase in half-year

profits.

Jamaica continued

Sagicor introduces coupon health plans for small businesses

Sagicor Life, a subsidiary of Sagicor Group Jamaica, has customised six

new plans for small businesses which need health coverage for

employees.

Ja banks on Cayman berth for uptick in cruise passenger arrivals

Jamaica has reported another contraction in cruise passenger arrivals for

June 2019, but there is hope that the country should see increases in

arrivals, given plans for the development of a new cruise berthing facility

in George Town, Grand Cayman.

Industry ministry launching MSME digital marketing programme

The Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF) in

partnership with the Organisation of American States (OAS) is launching a

three-year Micro, Small and Medium Enterprise (MSME) Digital Marketing

Plan, to strengthen MSMEs in Jamaica with digital marketing solutions for

their businesses.

Pay day blues

National Commercial Bank (NCB) has warned its customers to brace for

more delays as it continues to implement a new systems upgrade.

JISCO set for temporary closure by October

THE Alpart/JISCO bauxite/alumina plant in Nain, St Elizabeth is being

prepared for closure, which is expected to commence by October.

Guyana

Private sector lending fastest in three years -number of agri loans fall – Half

Year Report

Lending to the private sector for the first half of the year was the fastest in

the last three years.

Encouraging signs in Aurora underground mining

After securing clearance from the Environmental Protection Agency (EPA)

and the Guyana Geology and Mines Commission (GGMC), Guyana

Goldfields Incorporated, the Canadian owner of Aurora Gold Mines, has

begun what is being described as successful underground explorations at

its North-West Mazaruni location.

Guyana continued

GTM records $324M after-tax profit

THE Guyana and Trinidad Mutual Life Insurance Company (GTM) after-tax

profit is $324.8M for 2018 as compared to $250.9M for 2017 which

represents an increase of $73.8M or 29.45 per cent.

The Bahamas

Airbnb On Hunt for New Sign-Ups

ONLINE vacation home marketplace Airbnb is encouraging locals to tap

into the tourism market through the launch of Airbnb Experiences in The

Bahamas.

Delta Going Daily with Boston-Nassau Schedule

DELTA Airlines yesterday announced that starting in December it will

expand flights between Boston Logan International Airport (BOS) and

Lynden Pindling Nassau International Airport (NAS) from Saturday-only to

daily.

Panama

$28 billion in debt, Odebrecht presents restructuring plan

The Odebrecht holding company, $28 billion in debt. Has presented its

judicial reorganization plan to the creditors, proposing that they

exchange their accounts receivable for payment values based on the

company's future results.

Antigua and Barbuda

PM Browne eager to open first residence hall at Five Islands

While the final touches on the new University of the West Indies (UWI) Five

Islands campus are being carried out ahead of the September 3rd

opening, discussions are underway to establish the campus’ first dormitory

within its first two years of operation.

Key services will be up to standard at UWI Five Islands Campus – Sir Hilary

Beckles

It’s a given that topping the list of concerns for students who will be

attending the University of the West Indies’ (UWI) fourth landed campus at

Five Islands would be security, reliable Internet service and a modern

library.

Dominica

Dominica’s recovery efforts highlighted at World Council Credit Union

Summit

The World Council of Credit Unions in collaboration with the Caribbean

Confederation of Credit Unions recently welcomed more than 2,000

Credit Union professionals from 61 countries to the Atlantis Resort in the

Bahamas for the annual conference of credit unions from all over the

world.

INTERNATIONAL

United States

U.S. weekly jobless claims increase slightly

The number of Americans filing applications for unemployment benefits

rose moderately, pointing to sustained labour market strength despite

slowing economic growth.

U.S. second-quarter GDP growth revised to 2.0%

The U.S. economy slowed a bit more than initially thought in the second

quarter as the strongest growth in consumer spending in 4-1/2 years was

offset by declining exports and a smaller inventory build.

Best Buy's annual sales outlook misses estimates as tariffs loom

Best Buy Co Inc (BBY.N) forecast annual same-store sales below analysts’

estimates on Thursday, citing new U.S. tariffs set to be imposed on Chinese

imports, such as phones, video game consoles and other electronics.

Goldman Sachs, Point72 and others invest $40 million in Mexico's

Credijusto

Goldman Sachs Group Inc, Point72 Ventures and others invested $40

million in a Mexico-based online lender called Credijusto.com, the

companies said on Thursday.

United Kingdom

Micro Focus says most of sales shortfall will drop through to earnings

Micro Focus Intl (MCRO.L) said it had little scope to mitigate a cut in its

revenue guidance before its Oct. 31 year-end as its cost cutting programs

were already well advanced, meaning most of the shortfall would fall

through to the core earnings line.

Europe

French economy shrugs off euro zone slowdown in second quarter

France’s economy expanded faster than expected in the second

quarter, proving - for now - to be impervious to the slowdown taking hold

of the broader euro zone, official data showed on Thursday.

German inflation eases again unexpectedly

German annual inflation slowed unexpectedly for the second

consecutive month in August, data showed on Thursday, likely lending

support to doves among ECB policymakers who want to inject more

monetary stimulus into the single currency bloc.

Italy's Conte gets green light to form new government

Italy’s president asked Giuseppe Conte to head up a coalition of the 5-

Star Movement and opposition Democratic Party (PD) on Thursday, a

move could that could improve in Italy’s fractious relations with the

European Union.

China

Tencent scraps plan to invest $150 million in Chinese education firm VIPKid

Tencent (0700.HK) has shelved plans to invest about $150 million to lead a

fresh fundraising round for a Chinese education firm VIPKid, two people

familiar with the matter said, as Beijing moved to tighten oversight of

online education platforms.

China hopes U.S. will create conditions necessary for September trade

talks

China and the United States are discussing the next round of face-to-face

trade talks scheduled in September but hopes for progress hinge on

whether Washington can create favourable conditions, China’s

commerce ministry said on Thursday.

Japan

Japan allows first exports of hydrogen fluoride to South Korea since export

curbs

Japan has approved shipment of hydrogen fluoride used in making

computer chips to South Korea for the first time since imposing tighter

export controls in July, a source familiar with the matter told Reuters.

Yen set for biggest monthly rise since May as sentiment fragile

The Japanese yen was set for its biggest monthly rise since May on Friday

as risk appetite remained on the back foot with investors sceptical of a

breakthrough in the U.S.-China trade war any time soon.

Global

Brent oil holds above $60 as lower inventories boost WTI

Brent oil held above $60 a barrel on Thursday, withstanding pressure from

concerns about economic growth, while a sharp fall in U.S. inventories

boosted West Texas Intermediate (WTI) crude futures.

Argentina says to extend maturities of international bonds, IMF debt

Argentina will negotiate with holders of its sovereign bonds and the

International Monetary Fund to extend the maturities of its debt

obligations as a way of ensuring the country’s ability to pay, Treasury

Minister Hernan Lacunza said on Wednesday.

Argentina bonds plumb new lows, country risk soars, as govt eyes debt

'reprofiling'

Argentine country risk soared to levels not seen since 2008 and bond

prices lurched to record lows on Thursday after the government

announced plans to “reprofile” some debt, leaving investors scrambling to

assess what kind of hit they might face.

Brent oil holds above $60 as lower inventories boost WTI Thursday 29th August, 2019 – Reuters

Brent oil held above $60 a barrel on Thursday, withstanding pressure from

concerns about economic growth, while a sharp fall in U.S. inventories

boosted West Texas Intermediate (WTI) crude futures.

International benchmark Brent crude was up 2 cents at $60.51 a barrel by

1215 GMT. WTI was up 48 cents at $56.26 a barrel.

“If the API (American Petroleum Institute) unexpectedly supplied bullets to

oil bulls on Tuesday evening so that they could fire from all cylinders, the

EIA flung the door of the ammunition depot wide open yesterday,” Tamas

Varga of oil brokerage PVM said.

The U.S. government’s Energy Information Administration said on

Wednesday that American crude stocks dropped last week by 10 million

barrels, while gasoline and distillate stocks each fell by 2.1 million barrels.

On Tuesday, industry body API said U.S. crude stocks had fallen by 11.1

million barrels last week.

U.S. weekly crude production rose 200,000 barrels per day to a new

record at 12.5 million bpd in the week to Aug. 23, the EIA said.

Concerns about a slowdown in economic growth due to the trade war

raging between the United States and China, the world’s biggest oil

consumers, along with the potential hit to oil demand, are keeping prices

in check.

“Trade tensions (are) hanging like a dark cloud threatening to rain over oil

prices,” said Jeffrey Halley, senior market analyst at OANDA.

China’s commerce ministry said on Thursday China and the United States

were discussing the next round of face-to-face trade talks scheduled for

September but hopes for progress hinged on whether Washington could

create favourable conditions.

San Francisco Federal Reserve President Mary Daly said she is in a “watch

and see” mode as she assesses the need for another U.S. interest-rate cut

for an economy that has “strong” momentum but faces headwinds from

uncertainty and a global slowdown.

Concerns about the global economy have watered down the impact of

oil production cuts that the Organization of the Petroleum Exporting

Countries, Russia and other producers have been exercising over the past

2-1/2 years.

“When they (OPEC and its allies) really managed to accelerate the price

from late 2016 onwards they had a big tailwind of global growth

acceleration, now they have this big negative headwind of global growth

de-acceleration,” said Bjarne Schieldrop, chief commodities analyst at

Nordic bank SEB.

Morgan Stanley has lowered its oil price forecasts for the rest of the year,

citing a weaker economic outlook, faltering demand and higher shale oil

output.

<< Back to news headlines >>

Argentina says to extend maturities of international bonds, IMF debt Thursday 29th August, 2019 – Reuters

Argentina will negotiate with holders of its sovereign bonds and the

International Monetary Fund to extend the maturities of its debt

obligations as a way of ensuring the country’s ability to pay, Treasury

Minister Hernan Lacunza said on Wednesday.

At a news conference after meetings with an IMF team visiting Argentina,

Lacunza said the government would “re-profile” the maturities of debt

owed to the IMF under a $57 billion standby agreement.

Interest and principal payments on bonds issued under international and

local law will not be altered in the re-profiling. The changes in maturities

would be aimed at obligations held by institutional, rather than individual

investors, he said.

“The priority today is to guarantee stability, because it is useless to launch

reactivating measures if there is no stability. The first thing is to recover that

stability,” Lacunza said at the news conference in Buenos Aires.

The peso took a beating during the day, even though the central bank

heavily intervened in the foreign exchange market for a second

consecutive day.

Argentine asset prices have gotten slammed since the Aug. 11 primary

election showed business-friendly President Mauricio Macri has surprisingly

little public support in his campaign to win a second term in the October

general election. He was trounced in the primary by centre-left Peronist

challenger Alberto Fernandez, who is now the clear front-runner.

“President Macri instructed me to solve the short-term problem to

guarantee electoral stability, but also in the medium- and long-term so as

not to leave a problem for the person who follows, be it he or another

candidate,” Lacunza said.

He said the measures were taken “so that the president can deploy his

policies without the restriction of imminent, or too high, debt maturities.”

Argentina’s peso closed 3.1% weaker at 58.1 per dollar on Wednesday,

even as the central bank sold $367 million of its reserves in a second

consecutive day of heavy intervention aimed at controlling the peso’s fall.

Worries over Argentina’s ability to meet its dollar-denominated debt

obligations have increased since the Aug. 11 primary. The peso has lost

almost 22% of its value against the U.S. dollar since then. The weakness of

the currency has inflamed market concerns about Argentina’s ability to

pay its dollar-denominated obligations.

Changes in the maturities of short-term debt, known as Letes and Lecap,

will be between three and six months, Lacunza said.

He said changes in maturities of bonds issued under Argentine law would

require approval from Congress.

“The markets will see this as a default,” Hernan Esteves, economist with

Buenos Aires consultancy FyEConsult, told Reuters.

“The problem is that you have a debt restructuring proposal launched by

one government, but that will have to be executed by the next

government,” Esteves said. “That makes it very difficult to manage an

orderly restructuring.”

During trading hours on Wednesday, both Argentina’s century bond and

the January 2028 traded near 42.5 cents on the dollar, their lowest on

record according to MarketAxess data.

“RECOGNIZING REALITY”

“I don’t like to use the word default. I prefer to think of it as recognizing

reality,” said Roger Horn, executive director and senior emerging market

strategist at SMBC Nikko Securities America in New York. “With bonds

trading in the 40s (cents on the dollar) the market was already expecting

a worst-case scenario. It’s better to deal with it now than six months from

now.”

The IMF said in a statement that it was analysing the government’s new

debt plan. Argentina has taken “important steps” to address liquidity

needs and safeguard reserves, said the statement from IMF spokesman

Gerry Rice.

The central bank issued a statement saying it would continue to

implement a “restrictive monetary policy” and continue intervening in the

foreign exchange market to bolster the peso.

The pushing out of debt maturities was aimed in part at preserving the

central bank’s dollar reserves, which stood at $57.9 billion as of Aug. 26.

“The decisions that have been taken prioritize the use of international

reserves to preserve monetary and financial stability, even if this implies

delaying payments to large public debt investors,” central bank chief

Guido Sandleris said in a separate statement.

“These decisions should lessen the pressure on the foreign exchange

market, reduce the eventual demand for foreign currency and

guarantee the availability of resources to limit volatility,” it said.

Macri took office in late 2015, promising to use orthodox economics to

end the cyclical crises that have afflicted Argentina for decades.

But he overestimated his ability to attract the foreign direct investment

needed for sustainable growth, while under-estimating the effect that

cutting public utility subsidies would have on inflation. His popularity fell as

consumer prices, especially home heating gas and electricity bills, shot

higher.

The economy is currently in recession with 55% inflation.


Argentina bonds plumb new lows, country risk soars, as govt eyes debt

'reprofiling' Thursday 29th August, 2019 – Reuters

Argentine country risk soared to levels not seen since 2008 and bond

prices lurched to record lows on Thursday after the government

announced plans to “reprofile” some debt, leaving investors scrambling to

assess what kind of hit they might face.

The recession- and inflation-racked economy has struggled for years with

debt problems. Its latest woes began when business-friendly President

Mauricio Macri suffered an unexpected and crushing defeat in an Aug.

11 primary election at the hands of populist-leaning Peronist Alberto

Fernandez.

That unnerved investors, who feared that the return of the left to power

could herald another debt restructuring in Latin America’s third-largest

economy.

By the time Treasury Minister Hernan Lacunza said on Wednesday the

government wanted to extend the maturities here of short-term local debt

instruments and would negotiate with holders of its sovereign bonds and

with the International Monetary Fund, a debt revamp was already widely

expected.

Argentine spreads over safe-haven U.S. Treasury bonds, which measures

perceived risk of default, nonetheless rose 82 basis points to 2,154 early on

Thursday on JP Morgan’s Emerging Markets Bond Index Plus.

The central bank spent $367 million of its reserves in foreign exchange

market interventions on Wednesday alone, part of its effort to defend the

beleaguered local peso.

“The pre-emptive announcement from the Macri administration to

voluntarily re-profile debt shows cash flow desperation after consistent

foreign exchange reserve loss,” said Siobhan Morden, head of Latin

America fixed income strategy at Amherst Pierpont Securities in New York.

“It now looks like a disorderly phase of a debt restructuring with a

piecemeal strategy of seeking debt relief without a comprehensive debt

repayment plan,” Morden said in a note, adding, “capital controls could

quickly follow as this official recognition of cash flow stress will only trigger

further dollar demand and capital flight.”

The news put more selling pressure in early European trading on

Argentina’s dollar-denominated bonds issued under foreign law. The issue

maturing in 2028 dropped around a cent to a low of 42 cents in the dollar.

Developing markets investment house Tellimer calculates that $7 billion of

short-term debt, $50 billion long-term debt and $44 billion of IMF debt may

be earmarked for an overhaul.

Key players going forward will be the IMF, which has a $57 billion standby

loan deal with Argentina and Fernandez, who is now the front-runner to

become president at the end of the year.

Fernandez has said he wants to renegotiate the IMF pact, which calls for

unpopular austerity measures that had damaged Macri’s popularity and

set him up for the drubbing he took in the primary vote.

A crunch point could be Sept. 15, when the next IMF loan tranche - about

$5.4 billion - is due to be disbursed.

“The re-profiling was already in the prices,” said Alberto Bernal, chief

emerging markets strategist at XP Investments in New York.

“I expect the IMF to be supportive of the decision, not least because the

IMF is already fully involved here,” he added. “As far as I understand this

transaction does not trigger CDS (credit default swaps) but will force

rating agencies to declare that Argentina is now once again in Selective

Default.”

Selective default is when a country fails to make payments on one debt

obligation but makes good on others.

Restructurings are a traumatic subject for voters who remember the

country’s 2001/2002 default, which punctuated an economic meltdown

that tossed millions of middle-class Argentines into poverty. Subsequent

mini defaults kept the country locked out of global capital markets for

years.

Macri prided himself on getting the country out of default early in his

administration and promised to reintegrate Argentina with the global

markets. But Macri overestimated his ability to attract the foreign direct

investment needed to provide Argentina with sustained economic

growth.

Weakness in the peso has meanwhile damaged the government’s ability

to repay its dollar-denominated obligations.

The re-profiling will first apply to short-dated debt denominated in pesos as

well as dollars but issued under local law, Lacunza said. The measure will

require approval from Congress.

While markets understood the immediate action to be targeting short-

term domestic sovereign debt denominated in dollars or Argentinian

peso, it was still unclear exactly how international investors might be

affected.

Some investors welcomed Argentina’s efforts to tackle its debt burden.

“They haven’t got the money, so some adjustment is necessary,” said

Abhishek Kumar, lead emerging markets portfolio manager at State Street

Global Advisors.

“The measures they take are still unknown, but anything is good because

it realigns to the reality.”


U.S. weekly jobless claims increase slightly Thursday 29th August, 2019 – Reuters

The number of Americans filing applications for unemployment benefits

rose moderately, pointing to sustained labour market strength despite

slowing economic growth.

Initial claims for state unemployment benefits increased 4,000 to a

seasonally adjusted 215,000 for the week ended Aug. 24, the Labour

Department said on Thursday. Data for the prior week was revised to show

2,000 more applications received than previously reported.

Last week’s increase in claims was in line with economists’ expectations.

The Labour Department said only claims for the Virgin Islands were

estimated last week.

The four-week moving average of initial claims, considered a better

measure of labour market trends as it irons out week-to-week volatility,

slipped 500 to 214,500 last week.

Layoffs have remained low despite a protracted trade war between the

United States and China, which is crimping economic growth by

undercutting business investment and manufacturing.

But the pace of job growth has been slowing since 2018. The government

estimated last week that the economy created 501,000 fewer jobs in the

12 months through March 2019 than previously reported, the biggest

downward revision in the level of employment in a decade.

According to economists at JPMorgan, this meant that job growth over

that period averaged around 170,000 per month instead of 210,000. The

government will publish the revised payrolls data next February.

Still, the pace of employment gains remains well above the roughly

100,000 jobs needed per month to keep up with growth in the working-

age population. Sustained labour market strength is supporting the

economy through strong consumer spending.

For now, that is helping to calm concerns of a recession, which were

fanned by a sell-off on Wall Street and an inversion of the U.S. Treasury

yield curve.

Thursday’s claims report also showed the number of people receiving

benefits after an initial week of aid increased 22,000 to 1.70 million for the

week ended Aug. 17. The four-week moving average of the so-called

continuing claims dipped 250 to 1.70 million.

The continuing claims data covered the week of the household survey

from which August’s unemployment rate will be calculated. The four-week

average of continuing claims was little changed between the July and

August survey periods, suggesting the jobless rate could hold steady at

3.7%.


U.S. second-quarter GDP growth revised to 2.0% Thursday 29th August, 2019 – Reuters

The U.S. economy slowed a bit more than initially thought in the second

quarter as the strongest growth in consumer spending in 4-1/2 years was

offset by declining exports and a smaller inventory build.

Gross domestic product increased at a 2.0% annualized rate, the

Commerce Department said in its second reading of second-quarter GDP

on Thursday. That was revised down from the 2.1% pace estimated last

month. The economy grew at a 3.1% rate in the January-March quarter. It

expanded 2.6% in the first half of the year.

The downward revision was in line with economists’’ expectations.

The economic expansion, now in its 11th year, is under threat from the

Trump administration’s year-long trade war with China, which has

undercut business investment and manufacturing.

The deterioration in trade relations between the two economic giants has

roiled global stock markets and triggered an inversion of the U.S. Treasury

yield curve, fanning fears of a recession. While manufacturing and

housing data suggest the economy continued to slow early in the third

quarter, strong consumer spending, backed by the lowest unemployment

rate in nearly 50 years, has tempered some concerns about a downturn.

Federal Reserve Chair Jerome Powell told a conference of central

bankers last week that the economy was in a “favourable place,” but

reiterated that the U.S. central bank would “act as appropriate” to keep

the economic expansion on track.

The Fed lowered its short-term interest rate by 25 basis points last month for

the first time since 2008, citing trade tensions and slowing global growth.

Financial markets have fully priced in another quarter-percentage-point

cut at the Fed’s Sept. 17-18 policy meeting.

The economy is also losing speed as the stimulus from the White House’s

$1.5 trillion tax-cut package and a government spending blitz fades.

Economists are forecasting growth this year around 2.5%, below the Trump

administration’s 3% target.

When measured from the income side, the economy grew at a 2.1% rate

in the second quarter. Gross domestic income (GDI) increased at a 3.2%

pace in the January-March quarter.

The average of GDP and GDI, also referred to as gross domestic output

and considered a better measure of economic activity, rose at a 2.1%

rate last quarter, slowing from a 3.2% pace of growth in the first three

months of the year.

The income side of the growth ledger was supported by a rebound in

profits after two straight quarterly declines. After-tax profits without

inventory valuation and capital consumption adjustment, which

correspond to S&P 500 profits, increased at a 4.8% rate after dropping

1.5% in the first quarter.

Growth in consumer spending, which accounts for more than two-thirds of

U.S. economic activity, surged at a 4.7% rate in the second quarter. That

was the fastest since the fourth quarter of 2014 and was a slight upward

revision from the 4.3% pace estimated last month.

The GDP report showed the trade deficit widened to $982.5 billion in the

second quarter, instead of $978.7 billion as reported last month. Trade cut

0.72 percentage point from GDP growth last quarter instead of 0.65

percentage point as previously reported.

U.S.-China trade tensions have caused wild swings in the trade deficit,

with exporters and importers trying to stay ahead of the tariff fight.

Growth in inventories was revised down to a $69.0 billion rate in the

second quarter from the previously estimated $71.7 billion pace.

Inventories chopped 0.91 percentage point from GDP growth last quarter,

instead of 0.86 percentage point as reported in July.

The slowdown in inventory accumulation reflects robust consumer

spending and an uncertain economic outlook.

Business investment declined at an unrevised 0.6% rate in the second

quarter, the first contraction since the first quarter of 2016. Growth in

government investment was revised down. Spending on homebuilding

contracted for a sixth straight quarter, the longest such stretch since the

Great Recession.


Best Buy's annual sales outlook misses estimates as tariffs loom Thursday 29th August, 2019 – Reuters

Best Buy Co Inc (BBY.N) forecast annual same-store sales below analysts’

estimates on Thursday, citing new U.S. tariffs set to be imposed on Chinese

imports, such as phones, video game consoles and other electronics.

Best Buy’s shares, which have lost about 10% of their value so far this

month, fell 5.4% to $65.30 in pre-market trade as consumer electronics

retailer also flagged concerns over uncertainty related consumer buying

behaviour in the second half of the year.

The company narrowed its full-year same-store sales forecast to a rise of

0.7% to 1.7%, from 0.5% to 2.5%. Analysts had expected a 2% increase.

President Donald Trump last week said U.S. tariffs on $250 billion worth of

Chinese imports would rise to 30% from the current 25% beginning Oct. 1.

While Best Buy has said those tariffs only affect about 7% of its cost of

goods sold, a planned 15% levy on a further $300 billion worth of Chinese

goods, would hit most of Best Buy’s bestselling products, such as cell

phones and laptops.

Trump announced the increase to 15% from 10% last Friday, with the first

tranche on over $125 billion of targeted goods including smart watches,

Bluetooth headphones and flat panel TVs, set to go into effect on Sept. 1.

Tariffs on the remainder of the $300 billion list that includes cell phones,

laptops, toys and clothing will kick in on Dec. 15, according to the U.S.

Trade Representative’s Office.

Best Buy’s overall same-store sales rose 1.6% in the second quarter ended

Aug. 3, missing analysts’ estimates of a 2.15% increase, according to IBES

data from Refinitiv.

Revenue rose to $9.54 billion from $9.38 billion, a touch below

expectations of $9.56 billion.

Excluding one-time items, the company earned $1.08 per share in the

second quarter, beating analysts’ estimates of 99 cents per share.


Goldman Sachs, Point72 and others invest $40 million in Mexico's

Credijusto Thursday 29th August, 2019 – Reuters

Goldman Sachs Group Inc, Point72 Ventures and others invested $40

million in a Mexico-based online lender called Credijusto.com, the

companies said on Thursday.

Founded in 2015, Credijusto has originated $90 million in loans and

equipment leases to small businesses like dry cleaners and mechanics

across Mexico, according to a statement from the company and

investors.

This is the first time Goldman’s Principal Strategic Investments group and

the venture capital arm of Steve Cohen’s investment firm Point72 have

invested in Mexico’s fintech market, and it is a sign they see potential for

growth.

Mexico has experienced a steady rise in start-ups aiming to use

technology and mobile phones to sell financial services to poor and

middle-class customers who do not use traditional banks.

About 42 million Mexicans do not have bank accounts because they

charge steep fees, there is not a branch nearby or because some banks

have lost public trust due to their past scandals.

Mexico’s government has said it is looking to fintechs to play a major role

in increasing financial inclusion in the country.

Credijusto is tackling the financial inclusion gap for small and medium-

sized companies, which comprise 99% of Mexico’s businesses but get just

15% of loans issued by major banks, according to the statement.

“Here’s this big market that’s largely under-served and inefficient, and this

modern lender can make sense of data that’s available,” Pete Casella, a

partner at Point72 Ventures, said in an interview. “If you can better

underwrite a customer and do it faster then you’re going to capture

share.”

Companies may wait five months to get approved for a loan by a

Mexican bank, and interest rates may be five times as much as those

offered by U.S. banks, according to the statement.

Credijusto speeds up the process by checking a company’s

creditworthiness by looking at invoices it filed with the federal tax

authorities.

Using traditional underwriting methods and key invoice data, Credijusto

can view a company’s spending and income patterns and business

partners before deciding on issuing the loan, which typically ranges from

$20,000 to $500,000.

“This financing round is a validation of Credijusto’s rapid growth ... and will

further support our aim of building a world-class tech company that

empowers (companies) through access to credit,” said Credijusto co-

Chief Executive Allan Apoj.

The company plans to use the money, in part, to launch a credit card

offering.


Tencent scraps plan to invest $150 million in Chinese education firm VIPKid Thursday 29th August, 2019 – Reuters

Tencent (0700.HK) has shelved plans to invest about $150 million to lead a

fresh fundraising round for a Chinese education firm VIPKid, two people

familiar with the matter said, as Beijing moved to tighten oversight of

online education platforms.

VIPKid dismissed the news as untrue, while Tencent did not respond to a

request for comment.

According to the people, the Chinese tech giant had given a verbal nod

for the investment and VIPKid had hoped this would help lure others to the

fundraising that would value the company at $4.5 billion prior to the

financing round.

But Tencent scrapped the plans after Beijing last month issued regulations

targeting online education platforms, stipulating teachers need to hold

valid teaching qualifications and the firms must publicize information such

as foreign teachers’ certificates and work experience, one person said.

VIPKid had initially wanted to raise $500 million but later lowered its target

to more than $150 million, the people added.

Tencent’s move to scrap the investment indicates how, amid stricter

regulations, investors may be getting cold feet about China’s online

education industry, which has seen a proliferation of new start-ups on

strong demand for extracurricular training from parents.

The education market for kindergarten to 12 years of age in China is

forecast to be worth 64.88 billion yuan ($9.15 billion) this year, according

to research firm iResearch.

Beijing-based VIPKid is an online education platform that connects

children in China with native English-speaking teachers in the United

States and Canada for live video lessons. It was set up in 2013 and

employs more than 70,000 teachers.

In June last year, it raised $500 million from investors including Coatue

Management, Tencent and Sequoia Capital China, which valued VIPKid

at about 20 billion yuan ($2.8 billion).

One of the sources said some of VIPKid’s investors had started to express

concerns about its ability to narrow losses and start turning a profit.

Chinese authorities are also increasing their scrutiny of the overall

education sector amid concerns over unqualified teachers and a push for

a “cleaner”, patriotic education system.

In August, lawyers, schools and teachers told Reuters that arrests and

deportations of foreign teachers in China have soared this year amid the

crackdown.


China hopes U.S. will create conditions necessary for September trade

talks Thursday 29th August, 2019 – Reuters

China and the United States are discussing the next round of face-to-face

trade talks scheduled in September but hopes for progress hinge on

whether Washington can create favourable conditions, China’s

commerce ministry said on Thursday.

In the latest tit-for-tat escalation of the trade war between the world’s two

largest economies, U.S. President Donald Trump last Friday said he would

heap an additional duty of 5% on about $550 billion in targeted Chinese

goods.

The move came hours after China had unveiled retaliatory tariffs on $75-

billion worth of U.S. goods.

China hopes the United States can cancel the planned additional tariffs

to avoid an escalation in the trade war, its commerce ministry spokesman,

Gao Feng, told reporters on Thursday.

“The most important thing at the moment is to create necessary

conditions for both sides to continue negotiations,” he said during a

weekly briefing, adding that China was lodging “solemn representation”

with the United States.

For two years, the Trump administration has sought to pressure China to

eliminate what it calls unfair trade practices and make sweeping changes

to its policies on intellectual property protection, forced transfers of

technology to Chinese firms, industrial subsidies and market access.

But China has constantly denied such accusations, vowing to fight back

in kind and criticizing U.S. measures as protectionist.

Gao said China had “ample” countermeasures to retaliate against the

planned U.S. tariffs, but talks in the current circumstances should focus on

whether the tariffs could be cancelled.

He did not answer directly when asked if his remarks suggested China

would not retaliate against the latest U.S. tariff threat.

China has repeatedly said it would have no choice but to retaliate if the

United States followed through on its threat.

On Monday, Trump predicted a trade deal with China, saying he

believed it was sincere about wanting to reach a deal, citing what he

called increasing economic pressure on Beijing and job losses there.

Trump cited as a positive sign comments by Vice Premier Liu He, who has

been leading the talks with Washington, that China was willing to resolve

the dispute through “calm” negotiations.

He repeated his assertion that Chinese officials had contacted U.S. trade

counterparts overnight, offering to resume negotiations, a statement that

China declined to confirm.

Gao also declined to provide any detail when asked if there had been a

call this week between Beijing and Washington.

“As far as I know, both trade teams have maintained effective

communication,” he said.

In July 2018, the U.S.-China trade dispute boiled over in tariffs on hundreds

of billions of dollars’ worth of each other’s goods and threatens to engulf

all trade between the countries, putting global growth at risk.

“We hope the United States will show sincerity and concrete actions,”

Gao said.


Japan allows first exports of hydrogen fluoride to South Korea since export

curbs Thursday 29th August, 2019 – Reuters

Japan has approved shipment of hydrogen fluoride used in making

computer chips to South Korea for the first time since imposing tighter

export controls in July, a source familiar with the matter told Reuters.

In July, Japan imposed export curbs on hydrogen fluoride and two other

materials used to make chips and screens to South Korea, deepening a

row rooted in Japan’s wartime history.

Japan has since allowed exports of photoresists, one of the other two

items under export curbs, twice.


Yen set for biggest monthly rise since May as sentiment fragile Thursday 29th August, 2019 – Reuters

The Japanese yen was set for its biggest monthly rise since May on Friday

as risk appetite remained on the back foot with investors sceptical of a

breakthrough in the U.S.-China trade war any time soon.

“Investors are still concerned about the trade war and there is little

optimism we will see a substantial breakthrough in negotiations,” said

Esther Maria Reichelt, an FX strategist at Commerzbank.

U.S. President Donald Trump’s administration on Wednesday made official

its extra 5% tariff on $300 billion in Chinese imports and set collection dates

of Sept. 1 and Dec. 15.

Against the greenback JPY=EBS, the yen edged 0.2% lower to 106.28 but

was on track for a 2.5% rise against the dollar for the month of August, its

biggest such rise in three months.

The dollar firmed broadly against its rivals after China said it won’t

immediately retaliate against the latest round of tariff increases by the

United States.

Against a basket of currencies .DXY, the dollar rose slightly to 98.29.

Spreads between 10-year U.S. Treasury debt and comparable two-year

bond yields were at minus 3 bps, the lowest since May 2007.

Sterling remained in the spotlight after Prime Minister Boris Johnson's plan

to suspend parliament raised the odds of a no-deal Brexit. The British

currency GBP=D3 edged quarter of percent lower to $1.2183,

approaching a January 2017 low below $1.2015.

China's onshore spot yuan CNY=CFXS eased slightly, weaker for an 11th

straight session, although a firmer-than-expected central bank fixing

helped stem deeper losses

Elsewhere, the kiwi NZD=D3 was off 0.3% at $0.6318 after touching its

lowest since September 2015 at $0.6311.


Micro Focus says most of sales shortfall will drop through to earnings Thursday 29th August, 2019 – Reuters

Micro Focus Intl (MCRO.L) said it had little scope to mitigate a cut in its

revenue guidance before its Oct. 31 year-end as its cost cutting programs

were already well advanced, meaning most of the shortfall would fall

through to the core earnings line.

Chief Executive Stephen Murdoch said it had seen deals in its pipeline slip

in the last six weeks, and it was not certain it could increase the run rate to

make its full-year guidance.

“We had a very weak close to July; we didn’t lose business but it slipped,”

he said. “We still have a pipeline that could put us in original range, but

we don’t feel it is credible that we could close sufficient of that.”


French economy shrugs off euro zone slowdown in second quarter Thursday 29th August, 2019 – Reuters

France’s economy expanded faster than expected in the second

quarter, proving - for now - to be impervious to the slowdown taking hold

of the broader euro zone, official data showed on Thursday.

The euro zone’s second biggest economy grew 0.3% in the quarter,

unchanged from the previous three months, the INSEE statistics agency

said, revising the figure up from a provisional estimate of 0.2%.

The revision means that France outpaced the broader euro zone where

the economic output of the overall bloc slowed to 0.2% from 0.3% three

months earlier.

The relative resilience of the French economy contrasts sharply with the

export-dependent German economy, which is teetering on the brink of

recession.

Germany, the euro zone’s biggest economy, contracted 0.1% in the

second quarter as global trade tensions and uncertainty over Britain’s exit

from the European Union took their toll.

While the German slowdown is fuelling debate there about the need for a

jolt of economic stimulus, France is already receiving an exceptional

injection of public money into the economy this year.

President Emmanuel Macron brought forward planned tax breaks and

incentives for companies to give workers bonuses together worth more

than 10 billion euros ($11.14 billion).

Macron rushed to pump the extra cash into the economy at the end of

last year after facing violent anti-government “yellow vest” protests

triggered in part by frustration over dwindling household purchasing

power.

However, so far the extra cash has not translated into higher consumer

spending, although it is helping to keep household confidence at

elevated levels despite the deteriorating economic outlook abroad.

INSEE said consumer spending growth - traditionally the motor of the

broader economy - eased to 0.2% from 0.3% in the first quarter.

Higher inflation ate into consumers’ purchasing power, as households’

disposable income fell 0.2% after surging 0.8% in the first quarter, boosted

by the package of tax breaks and bonus scheme.

The slower consumer spending was partially offset by a pick-up in business

investment, which grew 0.9% after 0.6% in the first quarter as corporate

profit margins increased to 33.1% - the highest since mid-2008 - from 32.6%.

Meanwhile, the economy has started the third quarter on a firm footing

with INSEE reporting that consumer spending grew 0.4% in July from June,

against economists’ expectations for an increase of 0.3%.

Data earlier this week showed consumer and business confidence held

steady in August, defying the gloom setting in much of the euro zone.


German inflation eases again unexpectedly Thursday 29th August, 2019 – Reuters

German annual inflation slowed unexpectedly for the second

consecutive month in August, data showed on Thursday, likely lending

support to doves among ECB policymakers who want to inject more

monetary stimulus into the single currency bloc.

German consumer prices, harmonized to make them comparable with

inflation data from other European Union countries, rose by 1.0% year-on-

year after an increase of 1.1% in the previous month, the Federal Statistics

Office said.

The August reading undershot a Reuters forecast for 1.2% and marked the

fourth month in a row that the inflation figure remained well below the

European Central Bank’s target level of close to but below 2% for the euro

zone as a whole.

On the month, EU-harmonized prices fell by 0.1% after an increase of 0.4%

in the previous month. The market had expected an unchanged reading.


Italy's Conte gets green light to form new government Thursday 29th August, 2019 – Reuters

Italy’s president asked Giuseppe Conte to head up a coalition of the 5-

Star Movement and opposition Democratic Party (PD) on Thursday, a

move could that could improve in Italy’s fractious relations with the

European Union.

Markets welcomed the quick end to a three-week political crisis triggered

by League leader Matteo Salvini, who pulled his hard-right party out of its

governing alliance with 5-Star after weeks of public bickering.

Salvini had wanted fresh polls to capitalize on his party’s success in

European elections but his plan backfired as 5-Star and the PD, lagging

the League in opinion surveys, set aside their long-standing antipathy to

form a government.

Italy’s 10-year borrowing costs fell to an all-time low at auction on

Thursday on the news as the prospect of a snap election retreated.

Conte, who told reporters he would present a cabinet list to the president

in the coming days, said his priority was to draft a 2020 budget.

“We must immediately get to work and draw up a budget to avert the

VAT hike, protects savers and offers solid prospects for economic growth

and social development,” he said.

VAT will rise from Jan. 1 unless the government can find 23 billion euros

($26 billion) elsewhere.

The creation of a new government is not yet a done deal, however, and

the two parties still need to agree a shared policy platform and divide up

cabinet posts.

In a further complication, 5-Star has promised to put the deal with the PD

to an online vote of its members. Many 5-Star supporters oppose a pact

with the centre-left and a ‘yes’ vote is not a certainty.


Private sector lending fastest in three years -number of agri loans fall – Half

Year Report Thursday 29th August, 2019 – Kaieteur News

Lending to the private sector for the first half of the year was the fastest in

the last three years.

According to the Ministry of Finance’s half-year report, there was a

decline in the first six months of lending to the agriculture sector.

There were also more loans for the purchase of vehicles, the report said.

At the end of the first half of 2019, net domestic credit of the banking

system grew by 14.1 percent over the same period last year, to $33.4

billion, supported by an expansion in both private and public sector

credit.

“Total credit to the private sector increased by 5.7 percent to $238.8

billion over the review period, faster than the past three years. This was

supported by an expansion in loans and advances to individuals and

businesses, except for businesses in the agriculture sector,” the report

disclosed.

The Ministry explained that the decline in this sector, of 2.1 percent, to

$13.1 billion resulted mainly from a contraction in lending for sugarcane

and livestock production of 35.4 percent and 19.8 percent, to $0.9 billion

and $1.4 billion, respectively.

However, in contrast, credit to all other sectors recorded growth.

“Credit to the mining and quarrying, manufacturing, and services sectors

increased by 6 percent, 0.5 percent, and 7.2 percent, to $5.2 billion, $26.1

billion, and $70.5 billion, respectively. The increase in the mining and

quarry sector was attributed solely to growth in lending to industries

outside of the bauxite sub-sector, whereas the expansion in the

manufacturing sector resulted from mixed outturns in the sub-categories.”

Significantly, there was a sizeable increase of $1.4 billion and $0.5 billion in

the beverages, food and tobacco, and other construction and

engineering sub-categories, which the Ministry explained was partially

offset by a notable decline of $1.2 billion and $0.5 billion in lending to the

other manufacturing and rice milling industries, respectively.

“The outturn in lending to the services subcategories, on the other hand,

was mostly positive, with major contributors such as the “other services”,

distribution, entertainment and catering, and education subcategories

increasing by $2.2 billion, $1.7 billion, $0.8 billion and $0.7 billion,

respectively.”

One area that would be speaking of confidence would be lending to

households.

This area recorded robust growth of 13.5 percent, to reach $32 billion –

stronger than the past two years and was supported by an increase in

loans and advances for all purposes, with the exception of other durable

goods and travel.

“Moreover, lending for housing, motor cars and other purposes expanded

by $1.4 billion, $1.3 billion and $1.1 billion, respectively. Of the other major

categories of credit, which include real estate mortgages, credit

instruments and “other credit”, only the former two increased, by 5.7

percent and 2.8 percent, to $84.5 billion and $3.1 billion, respectively.”

As expected, there was an expansion in real estate mortgages, which

surpassed the half-year growth rate in each of the past three years,

resulting from an increase in lending of 5 percent and 14.7 percent for

private dwellings, and industrial and commercial properties, respectively.

“Further, growth in credit instruments was solely supported by increased

lending for credit cards, while the decline in the “other credit” category of

8.5 percent to $4.1 billion, resulted from a contraction of 8.4 percent and

10.7 percent in securities, and shares and other equity, respectively.”

Total liquid assets of the commercial banks expanded by 6.2 percent to

$127.7 billion.

Total reserves deposited with the Bank of Guyana were $75.3 billion, 0.7

percent higher than the level at the end of June 2018.

“The required statutory reserves of the commercial banks were $48.2

billion at the end of June 2019, creating an excess over the minimum

requirement of $27.1 billion.” The news of the performance would not be

totally unexpected with increased activities in the oil and gas arena

ahead of first oil.


Encouraging signs in Aurora underground mining Thursday 29th August, 2019 – Kaieteur News

After securing clearance from the Environmental Protection Agency (EPA)

and the Guyana Geology and Mines Commission (GGMC), Guyana

Goldfields Incorporated, the Canadian owner of Aurora Gold Mines, has

begun what is being described as successful underground explorations at

its North-West Mazaruni location.

Following a tour of the mine earlier on Tuesday, August 27, Senior Vice-

President, Strategy and Corporate Affairs, Perry Holloway told the

Department of Public Information (DPI), that the EPA’s clearance gives

the company up to 2,500 metres of underground exploration, plus test

mining for 300,000 tons of ore.

“We have started and have gone down a couple of hundred meters;

maybe three or four hundred metres right now. Everything so far is going

great, the rocks are cool, some people thought it would be hot, there is

very little water, some people thought there would be a lot of water as we

are very close to the Cuyuni River, none of that is true.”

Holloway said side drilling would begin soon to determine where and how

much gold was at the location.

Minister of Natural Resources, Raphael Trotman, during the tour, said he

was happy with the current progress reports from the company.

He had previously visited the camp with a South African delegation back

in March this year before exploration began.

“This is historic for Guyana. We have had underground mining in Guyana

before, I’m not saying this is the first, but certainly it is the only company

doing it right now,” Minister Trotman stated.

Adding that this was a great opportunity for Guyanese to see and

understand the functions of an underground mine.

The Natural Resources Minister also stated that he was especially pleased

to know that the company got its exploration clearance from both the

GGMC and EPA.

“I’m happy to see that issues and some challenges with GGMC and EPA

have been resolved and the company has been able to start the

exploratory aspect of the digging and hopefully things progressed and a

full mining permit will be given by both the GGMC and EPA,” he said.

Aurora Gold Mines is one of the largest gold mines in Guyana and the

world, with an estimated reserve of 6.54 million ounces of gold.

With respect to the underground mining exploration, $5Billion (US$25M) is

expected from the first three years of exploration. (DPI)


GTM records $324M after-tax profit Thursday 29th August, 2019 – Guyana Chronicle

THE Guyana and Trinidad Mutual Life Insurance Company (GTM) after-tax

profit is $324.8M for 2018 as compared to $250.9M for 2017 which

represents an increase of $73.8M or 29.45 per cent.

This was disclosed by Chairman of the Board of Directors, R. L. Singh,

during the company’s presentation of the 139 Annual Report at its Annual

General Meeting which was held Wednesday evening at the

Georgetown Club.

The chairman also announced the appointment of certified accountant

and CEO of Digicel, Gregory Dean, to the Board of Directors with effect

from December 1st, 2018.

In giving a review of the annual report, the Chairman said the total

comprehensive income for the year, net of tax, increased from $976.8M to

$2.236 billion as of December 31, 2018. This, Singh said, is a direct result of

the increase share prices of the company in which investments were

made in Banks DIH limited and Republic Bank Guyana Limited.

He said the performance overview notwithstanding ongoing challenges,

strong competition, rate selling, and sluggish economic conditions in the

eastern Caribbean, GTM has recorded a growth in insurance premiums of

$63.5M and $75.8M net of reinsurance premiums.

Further, of the $2.57 billion of gross insurance premiums, the Guyana

operations contributed $1.6 billion or 64.5 per cent followed by Grenada

with $456M or 17.6 per cent; St Lucia with $371M or 14.5 per cent and St

Vincent and the Grenadines with $86M or 3.4 per cent.

“The reinsurance market remained soft, that is, there is excess capacity

available when compared to demand, as a result, your company has

been able to secure lower reinsurance premiums rate as is reflected in the

lower reinsurance premiums paid in 2018 when compared to 2017,” he

said.

Meanwhile, he said availability to viable medium and long-term

investments remains elusive in Guyana and owes subscriptions to bonds

and treasure-bills in the eastern Caribbean.

He explained that excess liquidity in the financial systems have driven

down returns for these types of investments which limits the company’s

ability to increase its investment portfolio.

The Chairperson said that there are other investment options; however,

prudence dictates that these should be avoided and GTM is cognizant of

the need to seek out lucrative investments and will do so once reassured

that such is in the best interest of the company.

He said GTM owns millions of shares in a number of blue-chip companies

in Guyana and has benefitted substantially from recent increases in share

values.

“The company has every intention of holding these shares into the

foreseeable future and will seek to acquire more when they become

available,” the Chairman said.

During the year 2018, he said GTM wrote new business amounting to $46

billion with an annualized premium of $175M, representing an increase of

39 per cent and 13 per cent respectively when compared to 2017.

At the end of the year, he said the total business amounted to $397 billion

with sums insured and an annualize premium of $1.8 billion.

Gross revenue on Motor Insurance, he said, totalled $1.426 billion at the

end of 2018 when compared with $1.104 billion for 2017, in such a

competitive market a marginal increase is noteworthy.

At the end of the financial year, he said claims amounted to $637M when

compared to $666M in 2017, a reduction of four per cent.

“Your company continues to engage in prudent underwriting and claims

management to ensure, attract and retain business,” he said.

When looking at the cash and profit, he announced the company will be

making a declaration of cash-profit return of 50 per cent of premium on

profit policies.

As of December 31, 2018, he said GTM asset base grew by $2.17 billion to

$9.96 billion, representing a growth of 28 per cent over the previous

financial year which was as a result of increases in share prices of local

companies in which GTM invested.

Additionally, 13 children of GTM staff benefitted from bursaries while

several staff members were awarded for their contributions.


Airbnb On Hunt for New Sign-Ups Wednesday 28th August, 2019 – Tribune 242

ONLINE vacation home marketplace Airbnb is encouraging locals to tap

into the tourism market through the launch of Airbnb Experiences in The

Bahamas.

Yesterday the company said the new initiative "provides a unique

opportunity for local culture curators to share their knowledge of the

islands and what it means to be uniquely Bahamian with guests from

around the world."

"Experiences align with Airbnb's mission of creating a world where anyone

can belong anywhere. They also ensure that as tourism becomes a larger

portion of economies around the world, local people and the

communities they live in are the primary beneficiaries," the company said

in a release yesterday.

"Through the Experiences platform, locals offering a one-of-a-kind

experience can start hosting with no upfront costs. Airbnb provides each

Experiences host with their own page that travellers can use to book their

activity. Airbnb handles payment processing, provides 24-hour customer

service, and Experience Protection Insurance - up to $1m in insurance

coverage for most activities. In exchange, Airbnb charges a 20 percent

service fee on Experiences sales.

According to Airbnb, in 2018, the number of seats booked on Airbnb

Experiences increased nearly sevenfold, year over year. In 2016,

Experiences launched with roughly 500 experiences. Today, over 40,000

Experiences are available around the world.

"The growth of Experiences offers new ways for small entrepreneurs to

market their time, experiences and talents. In the past, it was difficult for

individuals to market and sell independent experiences to travellers.

Airbnb has given entrepreneurs access to their global network, and while

the average person earned $2,500 per Experience listed in 2018, some of

Airbnb's top hosts are earning more than $300,000 in a year from hosting

Experiences," said Airbnb.

It added; "In recent months, Airbnb has been promoting Experiences to

locals on the island, with an aim to increase the supply of Experiences on

the platform. In June, the platform hosted an Entrepreneurship Lab, an

Office of Healthy Tourism initiative held in conjunction with the Tourism

Development Corporation that attracted dozens of potential Experiences

hosts. Then on August 9, Airbnb provided additional one-on-one support

for entrepreneurs interested in becoming Experiences hosts by providing

office hours at the Bahamas Hotel and Tourism Association. From the

response generated at these two events, it is evident that local hosts are

eager to share their knowledge and expertise of the islands through

diverse, people-powered experiences that are local, authentic,

sustainable, and drive economic growth in the community.

Some of the entrepreneurs who launched Experiences after attending the

Entrepreneurship lab include Chiccharney Farm to Table Experience

which offers homemade farm to table products including ice cream,

juices, jams, and locally brewed "bush" teas; and Educulture, by Arlene

and Silbert Ferguson which provides an interactive experience for guests

to discover and explore the spirit of Junkanoo throughout the year.


Delta Going Daily with Boston-Nassau Schedule Wednesday 28th August, 2019 – Tribune 242

DELTA Airlines yesterday announced that starting in December it will

expand flights between Boston Logan International Airport (BOS) and

Lynden Pindling Nassau International Airport (NAS) from Saturday-only to

daily.

The daily seasonal service will start December 21 and will be available

until April 30, 2020 and will operate with a Boeing 737-800.

Delta, Boston’s number one global carrier, has more than doubled the

number of destinations and nearly doubled the number of departures it

offers since 2015, including new twice daily service to Miami launching this

winter and a UK expansion coming in 2020.

“We are thrilled that Delta is expanding its current once-weekly service to

daily, non-stop service from Boston to Nassau,” said Joy Jibrilu, Director

General of Bahamas Ministry of Tourism & Aviation.

“This is a testament to the great synergy between our two cities and the

convenience of this flight – Bostonians can fly away to paradise in around

four hours – and we are so excited to welcome Boston-area travellers

seven days a week to experience the beauty, culture and spirit of The

Bahamas.”

Delta yesterday announced it will offer more flights to top Caribbean

destinations beginning this winter, with additional service between four of

its US hubs and San Juan, Puerto Rico; Nassau and Santo Domingo,

Dominican Republic.

“Responding to increasing demand from our customers, we look forward

to adding more options between the U.S. and the leading business and

leisure destinations in the Caribbean,” said Luciano Macagno, Managing

Director – Latin America & Caribbean at Delta.

“Just as importantly, our commitment goes beyond our powerful network,

as we continue to invest in innovation and service to provide the best

customer experience.”


$28 billion in debt, Odebrecht presents restructuring plan Wednesday 28th August, 2019 – Newsroom Panama

The Odebrecht holding company, $28 billion in debt. Has presented its

judicial reorganization plan to the creditors, proposing that they

exchange their accounts receivable for payment values based on the

company's future results.

In a statement, the executive director, Luciano Guidolin, said that a

reduction in the debt resulting from the agreement will guarantee

"productive activity, preservation of employment and creation of value

for all concerned."

The holding company, the core of the conglomerate that extends from

construction (which includes Constructora Odebrecht) to oil and gas,

declared bankruptcy in Brazil on June 17. On Monday, August 26, the

conglomerate requested that the judicial protection obtained in Brazil be

extended to the United States, where the procedure is known as Chapter

15, in reference to the chapter of the law dealing with said procedure.

Chapter 15 protects assets abroad, thus avoiding actions of creditors

while the company judicially executes its recovery plan.

This is the largest corporate bankruptcy in Brazil and Latin America, above

the $19 billion debt that the telecommunications company Oi had in

2016.

Odebrecht, which sought to restructure about $ 1.3 billion of its own debt,

was affected by tensions in early June when the group's ethanol unit

sought bankruptcy protection and talks with LyondellBasell Industries NV

about the Braskem, SA petrochemical unit collapse.

The conglomerate has been struggling to recover from the consequences

of the Lava Jato corruption investigation in Brazil. The investigation, which

began in 2014, halted the construction industry, as access to government

projects was cut and executives were jailed.

In Panama, it gained billions of dollars in contracts from successive

governments for projects like Metro Lines 1 and 2, and the rejuvenation of

Colon

Investigations into some $90 million in bribes to high profile Panamanians,

including the Ricardo Martinelli siblings, have been stymied by the courts.

Odebrecht paid millions in fines in other Latin American countries,

including Panama, and its portfolio of new projects has declined, which

adds to the cash crisis.

The bonds issued by Odebrecht have long been traded at difficult levels,

and the perpetual notes are now quoted at about 6 cents per dollar.


NGL falls $0.39 Thursday 29th August, 2019 – Trinidad Express Newspaper

Overall market activity resulted from trading in 12 securities of which four

advanced, two declined and six traded firm.

The Composite Index declined by 0.97 points (0.07 per cent) to close at

1,384.03. The All T& T Index advanced by 1.41 points (0.08 per cent) to

close at 1,757.48. The Cross Listed Index declined by 0.46 points (0.34 per

cent) to close at 136.84. The SME Index remained at 84.00.

Trading activity on the first-tier market registered a volume of 516,864

shares crossing the floor of the Exchange valued at $2,911,947.28. JMMB

Group was the volume leader with 434,303 shares changing hands for a

value of $910,936.80, followed by TTNGL with a volume of 52,787 shares

being traded for $1,346,144.30. Sagicor Financial Corporation contributed

9,000 shares with a value of $94,050, while First Citizens Bank added 8,223

shares valued at $329,084.46.

First Citizens Bank registered the day's largest gain, increasing $0.31 to end

the day at $40.02. Conversely, TTNGL registered the day's largest decline,

falling $0.39 to close at $25.50.

CLICO Investment Fund was the only active security on the mutual fund

market, posting a volume of 11,571 shares valued at $279,906.05. CLICO

Investment Fund remained at $24.19. Calypso Macro Index Fund

remained at $15.50.

The second-tier market did not witness any activity. The SME market did

not witness any activity. CinemaOne remained at $8.40.

The USD equity market did not witness any activity. MPC Caribbean Clean

Energy remained at US$1.


PM Browne eager to open first residence hall at Five Islands Thursday 29th August, 2019 – The Daily Observer

While the final touches on the new University of the West Indies (UWI) Five

Islands campus are being carried out ahead of the September 3rd

opening, discussions are underway to establish the campus’ first dormitory

within its first two years of operation.

During Monday’s press conference, UWI’s Vice Chancellor, Professor Sir

Hilary Beckles, told reporters that he and Prime Minister Gaston Browne

spoke about this being realised within the first few years.

“I told the Prime Minister this morning, ‘wouldn’t it be wonderful if we

could have our dormitories constructed in the first five years’, and he was

flabbergasted! He said, ‘are you speaking about the first year’?

“We know that the Prime Minister moves very quickly and he gave me the

assurance that we are going to have our dormitories certainly within that

period, but he will be pushing to have those dormitories up and running

within the first two years,” the UWI professor said.

Sir Hilary also reiterated the reduction in financial costs for Antiguan and

Barbudan students and parents that will accompany the opening of the

UWI campus.

“The vast majority of Antiguans can now jump in their car, get in a

minibus, go down to Five Islands and get their degree; and that will be a

much cheaper proposition for the vast majority of Antiguans than to jump

on LIAT, go down the islands, stay in dormitories and live in economies with

higher costs.

“I have seen OECS students having to struggle with selling lands and

mortgaging assets to raise cash; it is very difficult. So that elite of OECS

students that travel across the region, we bless them, we need them, but

we are also aware that they do not reflect the masses of people who

cannot afford to jump on LIAT, to stay in dormitories, and to give up their

jobs to get their degree,” he stated.


Key services will be up to standard at UWI Five Islands Campus – Sir Hilary

Beckles Wednesday 28th August, 2019 – The Daily Observer

It’s a given that topping the list of concerns for students who will be

attending the University of the West Indies’ (UWI) fourth landed campus at

Five Islands would be security, reliable Internet service and a modern

library.

Speaking at Monday’s press conference at the Ministry of Education, Vice

Chancellor of the UWI, Professor Sir Hilary Beckles reassured students that

the university will continue to work on these areas, particularly Internet

service, until it is up to standard.

Professor Beckles revealed that an IT specialist has been brought in from

the Mona campus to work on the Internet infrastructure at the Five Islands

campus “until it is, to his satisfaction, up and running”.

Sir Hilary also noted that further improvements and investments in the

network infrastructure will be made as the technology advances.

Also, recognizing that it will be vital for students to have reliable Internet

for various reasons, not least of which will be to get their assignments and

to access the online UWI library system, Sir Hilary stated that the

development of the UWI Five Islands on-site library will be done in phases.

“There are going to be three levels which we will be tackling this … we

have a facility at the campus where we are developing a live physical

material capacity and that will clearly take some time to develop.

“It takes a while to build up a library as a physical plan, but the trend in

global undergraduate studies is really online libraries and we have put in

place the technology at Five Islands to allow for access, not only to UWI

libraries, but to other databases, to other sources of material; so there will

be no resource shortage for Five Islands students who are going to be

collecting data and completing their work,” Professor Beckles said.

The Vice Chancellor also addressed the issue of security on the campus,

which has been and continues to be an issue for students at the other

landed campuses.

“In the area of security, we will have to increase our security complement

and that will be done. We have a culture of security on all of the

campuses, we have ratios, we have a model—the number of the guards

per students … so the security matter will be dealt with and handled,” he

said.


Dominica’s recovery efforts highlighted at World Council Credit Union

Summit Thursday 29th August, 2019 – Dominica News Online

The World Council of Credit Unions in collaboration with the Caribbean

Confederation of Credit Unions recently welcomed more than 2,000

Credit Union professionals from 61 countries to the Atlantis Resort in the

Bahamas for the annual conference of credit unions from all over the

world.

The World Credit Union Conference is the premier global event for credit

unions and financial cooperatives – with the most take-home value.

Attendees from around the globe included board members, CEO’s,

executive directors and senior-level management. This year a contingent

from Dominica consisted of twenty-eight (28) managers, volunteers and

staff of the various credit unions.

WCUC 2019 featured four world-renowned keynote speakers, along with

25 diverse breakout presentations on issues related to leadership, cyber

security, technology, regulations, AML, the global economy and more.

Dominica featured prominently at this year’s summit as two credit union

leaders from the movement were featured. Mr. Almer Irish, Chief Executive

Officer of the National Co-operative Credit Union Ltd. participated in a

panel discussion on the topic “Together Better- Small Credit Unions

Collaborate for Innovation and Efficiency,” where he highlighted the

unique collaboration opportunities for smaller credit unions.

Mr. Phoenix Belfield, General Manager of the Dominica Co-operative

Societies League Ltd. was the keynote speaker at the Champions

Celebration for the Worldwide Foundation’s launch of Project Storm

Break, a new initiative aimed at addressing the expediency of relief aid to

affected territories in the aftermath of a natural disaster. This Fund-raising

event surpassed the projected goal of US$100,000. Dominica benefitted

from WOCCU’s fund raising efforts post Hurricane Maria.

The President of the DCSLL Mrs. Josephine Dublin presented awards to key

contributors to the Dominica’s recovery post Hurricane Maria. The

President remarked “The Dominica credit union movement’s recovery was

fast tracked because of your generosity and timely financial and

technical interventions. The actions of your Leagues and Affiliates reiterate

the fact that there are no physical frontiers that can hinder co-operation

among cooperatives”

The Dominica League President also signed an agreement for co-

operation between the credit union movements of Dominica and

Anguilla. This agreement is aimed at facilitating an improvement in cross

border transacting between Dominican diasporans living in Anguilla as

well as cooperation between the two credit union movements.

Another highlight of the Summit was the Diversity and Inclusion(D&I)

Program at WCUC 2019 which offered opportunities for both learning and

networking. It combined the previously separate Global Women’s

Leadership Network (GLWN) and World Council Young Credit Union

Professional (WYCUP) Forum events. The D&I Program is dedicated to

advancing women and young leaders worldwide and leverages

opportunities presented by the World Credit Union Conference to

promote professional development throughout the conference week.

The CCCU also held its 48th Annual General Meeting with the entire

executive re-elected for another year un-opposed.

The 2019 World Credit Union Conference concluded with a Caribbean

themed closing party as the finishing touches on a spectacular four-day

event at the Atlantis Resort. The Dominica contingent presented a cultural

piece featuring the Heel and Toe Dance as well as a musical rendition of

“Merci Bon Dieu.”

The event was held from July 28-31.


Economy grew by 1.0% for April to June quarter – PIOJ Wednesday 28th August, 2019 – Jamaica Observer

The Jamaican economy grew by an estimated 1.0 per cent in the April to

June 2019 quarter compared with the corresponding quarter of 2018.

The Planning Institute of Jamaica (PIOJ), is reporting that this out-turn

extends the positive growth trend to 18 consecutive quarters, that is, four

and a half years.

Speaking at the PIOJ's quarterly press briefing on the performance of the

macroeconomy for the first quarter of the financial year on Monday

(August 26), Director General, Dr Wayne Henry disclosed that the services

industry, grew by 1.4per cent while the goods-producing industry was flat,

recording 0.0per cent.

The quarter largely reflected increased activity at some industrial plants

such as the Petrojam refinery, increased external demand, which drove

output in some export industries such as the Hotels & Restaurants and

increased domestic for goods and services driven by the higher levels of

employment.

Dr Henry pointed out that there was an estimated growth in Building

Construction, reflective of the continuation of work started in previous

quarters, as well as new building activities which commenced during the

quarter.

These include 38 per cent increase in the number of housing starts by the

National Housing Trust (NHT) to 999 units, relative to the corresponding

quarter of 2018; and a 26.7 per cent increase in the stock of commercial

bank loans and advances to $39.7 billion.

Dr Henry explained that “growth in the economy was, however,

negatively affected by drought conditions, which led to a 2.5per cent

contraction of the Agriculture, Forestry and Fishing industry. The winding-

down of several major infrastructure projects of the National Works

Agency (NWA) such as the Hagley Park and Constant Road projects led

to a reduction in expenditures by 28.2per cent to $3.6 billion.”

UPGRADING WORK PAYING OFF

Growth in the Services industry reflected higher real value added in all

industries.

“This was influenced by electricity expenditure which was down 11.0per

cent to $2.5 billion, arising from efficiencies at the Old Harbour power

plant, which was commissioned last year. Continual upgrading of water

supply facilities led to an increase in expenditure of 4.5per cent to $921.7

million,” Dr Henry explained

Transport, Storage & Communication grew by an estimated 1.4per cent,

influenced by a 6.1per cent increase in total air passenger movement,

which also impacted on visitor expenditure, which increased by 10.2per

cent to US$852.7 million.

The Wholesale & Retail Trade; Repair & Installation of Machinery (WRTRIM)

industry grew by an estimated 1.0per cent. Increased output in the

industry was supported by growth in real value by 12.2per cent of ABM &

point of sale transactions.

Also within that sector, Agriculture, Food, Beverages & Tobacco grew by

28.7per cent; Motor Vehicles, Auto Repairs & Accessories, were up 3.6per

cent; Minerals, Fuels, Lubricants and Petroleum Products improved by

3.1per cent, while there was a 1.4per cent increase in Pharmaceuticals,

Medical Goods and Cosmetics.

In the financial sector, the stock of commercial bank loans & advances to

the housing industry increased by 26.7per cent to $39.7 billion. Real value

added for the Hotels & Restaurants industry grew by an estimated 5.6per

cent, reflecting an increase in foreign national arrivals, which went up by

7.8per cent.

STOPOVER ARRIVALS CONTINUES TO GROW

Total stopover arrivals grew by 8.4per cent and reflected stronger

performance from Jamaica's main source markets with the United States

arrivals, up 11.8per cent to 489, 016 persons; Europe, up 2.4per cent to 75,

261 persons and Latin America, up 22.0per cent to 10, 285 persons.

Stopover arrivals from Canada, however, contracted by 4.8per cent to 85,

712 persons and cruise passenger arrivals, contracted by 23.2per cent.

The PIOJ boss pointed out that this resulted in a 3.0per cent reduction in

total visitor arrivals to 956,209 persons.


PIOJ explains the latest poverty data showing an increase in 2017 Wednesday 28th August, 2019 – Jamaica Observer

The Planning Institute of Jamaica (PIOJ) is seeking to set the records

straight regarding the latest data on poverty in the country, showing a 2.2

per cent jump in 2017 to 19.3 per cent of the population living below the

poverty line.

PIOJ Director General Dr Wayne Henry says the increase in poverty was

due to more people in the Kingston Metropolitan Area (KMA) and other

towns living below the poverty line. With regards to the rural areas, the

figure was flat at zero.

“The increase in poverty was driven mainly by lower consumption levels in

real terms, especially for individuals in Quintiles 1 and 2, which consist of

the two poorest households, compared with 2016. Households in the

wealthiest quintile increased their consumption over the same period, this

contributed to an increase in consumption inequality,” Dr Henry stated.

Speaking at the PIOJ's quarterly news briefing on Monday (August 26), Dr

Henry added: “The decline in consumption in real terms may be

attributed in part to a decline in the proportion of households in the KMA

and other towns receiving remittances from abroad. In addition, during

the period March to June 2017, the island experienced adverse weather

conditions, which affected the outputs of several industries.”

Concerning regional distribution, there were increases in the KMA of 5.2

percentage points to 17.1 per cent, reflecting a decline in mean per

capita consumption in real terms by 3.0 per cent, and other towns, which

recorded a 4.1 percentage point increase to 20.1 per cent.

“The increased prevalence of poverty recorded for other towns is the

second consecutive year of increase and highlights a worsened standard

of living in the region. In terms of consumption, the region recorded a 4.2

per cent decline in real mean per capita consumption expenditure,” the

PIOJ boss emphasised.

The poverty rates in rural areas, on the other hand, remained relatively

unchanged to register 20.1 per cent when compared with the 20.5 per

cent in 2016.

When analysing the poverty out-turn for 2017, Dr Henry stressed that it

must be noted that election activities in 2016 may have played a role in

stimulating consumption, thereby influencing the reduction in poverty for

2016.

He made the point that it is an observed trend that poverty rates in

Jamaica generally decline during an election year, reflecting the impact

of the additional expenditure by campaigning political parties.

“For example, in 1993, which was an election year, was accompanied by

a 9.5 percentage point decrease in the poverty rate relative to the

previous year.

“Similarly, for election years, 1997 and 2007, the poverty rates dipped by

6.2 percentage points and 4.4 percentage points, respectively.”

Dr Henry observed that the anomaly shown in 2002, where the poverty

rate increased in that election year, reflected the impact of severe shocks

to the agriculture industry, which negatively impacted rural poverty rates.

Agriculture, which accounted for 7.0 per cent of GDP in 2017, contracted

by 3.5 per cent in real terms, being heavily impacted by above-average

rainfall across the island.

Dr Henry explained that “due to the country's high dependence on

output from the agricultural sector, the poverty rates are normally

influenced by the performance of this sector. This influence was seen in

the increase in the prevalence of poverty in the KMA and other towns.

However, due in part to the impact of the Flood Recovery Programme in

rural areas, the rates in the region remained relatively unchanged.”

Another explanation for the increase in poverty in 2017 was the fact that

there was a decline in the proportion of households receiving remittances

from abroad. Therefore, transfers, as measured by remittances, declined

significantly for poorer households in Quintiles 1 and 2 in both the KMA

and other towns.

The inflation rate was 5.2 per cent in 2017 compared with 1.7 per cent in

2016. This, according to Dr Henry, “indicated that households faced

higher prices to maintain the same standard of living. The increase in

prices faced by consumers stemmed primarily from an increase in energy

prices and a shortage of domestically produced food, due to extensive

damage from flood rains.”

The PIOJ director general also sought to explain the lag in the data

coming in 2019 for 2017. He said the delay was based on the lateness of

data coming in for analysis and presentation.


BOJ again lowers policy interest rate Wednesday 28th August, 2019 – Jamaica Observer

The Bank of Jamaica (BOJ) has again lowered its policy interest rate by 25

basis points to half-of-a-per cent, effective today.

The policy interest rate represents the interest rate offered by the central

bank on overnight placements. The rate has been gradually going down

over the past eight quarters, being reduced at least once since the start

of 2019.

In a news release yesterday, the BOJ said the reduction “is intended to

stimulate a faster expansion in private sector credit, which should lead to

higher economic activity, consistent with the inflation target”.

According to the BOJ, “this decision reflects the bank's assessment that

inflation is projected to average 4.3 per cent over the next eight quarters

within the inflation target of 4.0 per cent to 6.0 per cent. However, in the

absence of a policy response, inflation is likely to fall below the lower limit

of the target at various points over this period.”

Over the medium term, the bank's forecast is for inflation to gradually

approach the midpoint of the BOJ's target, albeit at a slower pace than

previously expected. This reduction in the policy rate will support inflation

returning more quickly to the centre of the target.

The inflation forecast is mainly predicated on the continued impact of low

domestic demand conditions relative to the economy's capacity, slower

growth among Jamaica's main trading partners and declines in

international commodity prices. It also accounts for the impact of

imminent changes in the fuel mix in the domestic energy sector on

electricity rates.

Annual inflation at July 2019 reported by the Statistical Institute of Jamaica

was 4.3 per cent, up from 4.2 per cent at June 2019 and 3.2 per cent at

July 2018. The marginal uptick in inflation mainly reflected the impact of

increases in the prices of food items, as well as an increase in electricity

rates. With this out-turn, inflation remained within BOJ's target of 4.0 per

cent to 6.0 per cent for the third month in a row.

The BOJ anticipates that inflation will decelerate to 3.7 per cent at

September 2019, as energy-related prices are likely to fall before

accelerating to 4.7 per cent at December 2019, as food price inflation

accelerates in the context of hot, dry weather conditions. Inflation is

expected to be supported by continued growth in domestic economic

activity, partly in response to the lowering of the policy rate over the last

eight quarters.

Over the March 2020 to June 2021 quarters, inflation is projected to

remain low, in the range of 3.0 to 5.0 per cent, mainly reflecting the

impact of lower oil prices, more efficient domestic energy generation and

low inflation among Jamaica's main trading partners. The influence of

these factors will, however, be offset by the impact of the BOJ's past

monetary accommodation.

Inflation is projected to return to the midpoint of the target slowly over the

ensuing three years. This outlook, the BOJ reports, carries a material risk

that inflation will fall below the target again during that period in the

absence of a policy response.

Of note is the fact that the projected trajectory of inflation is lower than

previously forecast. This reflects the bank's view that inflation expectations

are lower than previously assessed and that the projected pace of

expansion in domestic demand in the period will be slower due to

headwinds from the global economy.

The risks to the short-term inflation forecast have been assessed to be

balanced. The main upside risk, which could cause inflation to be higher

than forecast, is the possibility that the impact of the planned

diversification of Jamaica's fuel mix on electricity cost may not be as

significant as projected.

The main downside risks, which could cause inflation to be lower than

forecast, include better than anticipated production in the agriculture

sector, which could lead to lower rates of increases in food prices. In

addition, domestic demand could be lower than projected, particularly in

the context of an escalation in global trade tensions.

Other macroeconomic indicators are projected by the BOJ to continue to

be positive. Foreign reserves are adequate, the current account of the

balance of payments remains sustainable, market interest rates are low,

labour market conditions continue to improve and the fiscal performance

is strong.


General Accident half-year profit up nearly 40% Wednesday 28th August, 2019 – Jamaica Gleaner

Listed general insurance company General Accident (GENAC) is already

eyeing another good year after a near 40 per cent increase in half-year

profits.

“If our run rate continues as it is now or even ticks up a little, then we

should have a better year than we did last year,” Managing Director

Sharon Donaldson told the Financial Gleaner.

General Accident recorded after-tax profits of $135.28 million up to June,

39.8 per cent more than the $95.44 million earned for the similar period in

2018. The increased profit is outstripping last year’s performance which

saw a 29 per cent increase in after-tax profits. That was the fruit of a new

marketing thrust which came with a $44.5-million price tag, more than

triple the previous spend.

“We’ve widened the type of coverage that we offer to the insuring

public, and that has been showing up in our results,” she said.

“If you take a cursory look at the stock of motor vehicles you will notice

that the PPV subsector has been showing exponential growth. In part, this

is due to comprehensive deficiencies in arrangements for public

transportation. PPV operators are filling that void and for us that is a

growth area,” Donaldson said.

General Accident booked gross written premium of $6.56 billion, an

increase of 41 per cent over the same period last year. The increase in

premiums takes on more significance considering that for just half of the

year GENAC is only $2 billion away from the $8.7 billion in business that the

company did for all of 2018.

Historically, general insurers have shied away from the PPV subsector but

Donaldson says those operators’ money is the same colour as anyone

else’s.

“Our view is that not all PPV operators are bad people. We feel that they

are simply trying to make a living to feed their families like everyone else.

As such, we work with them to more effectively manage their risks and

protect that asset that is most valuable to them,” she said.

Net claims charges grew by 23 per cent to $633 million, but Donaldson

says it has not been painful to the company and that GENAC is taking it in

stride.

“We don’t control the frequency of claims but rather we are seeking to

educate drivers at being better on the roads. The claims don’t come from

(real estate) properties. It is the motor vehicle sector, and so it is a matter

of getting the insured to look after their valuable property,” Donaldson

said.

The increased half-year profits boosted earnings per share. It moved from

$0.09 up in June 2018 to $0.13 in June 2019.


Sagicor introduces coupon health plans for small businesses Wednesday 28th August, 2019 – Jamaica Gleaner

Sagicor Life, a subsidiary of Sagicor Group Jamaica, has customised six

new plans for small businesses which need health coverage for

employees.

The company has not shared the new coverage levels and payments

attached but said that the plans are now more affordable than standard

company offerings available up to now.

In a response channelled through its communications unit, the health

insurance provider said, “there has always been interest by this segment

(small businesses) to have health insurance for their teams, but it has been

difficult to access until now”.

A national health plan drafted by the Ministry of Health and Wellness and

tabled in Parliament earlier this year indicated that about 500,000 of the

2.7 million people living in Jamaica have health insurance, leaving behind

more than 80 per cent of the population to fund healthcare out of

pocket, engage in months-long waits for diagnostic tests or surgical

operations, or wait hours to receive general observation.

Sagicor is targeting small businesses with its new health plan. The

government defines microenterprises in Jamaica as businesses that

employ five persons or less and have an annual turnover not exceeding

$10 million.

Small enterprises employ between six and 20 persons and have an annual

turnover of between $10 million and $50 million, while medium-size

enterprises employ between 21 and 50 persons and have an annual

turnover of between $50 million and $150 million.

Sagicor did not specify limits on companies applying for its coupon plan

but said Sagicor Fit, as the plans are called, offers six ‘pre-made’ health

plans (in a coupon-type format) from which the employer can choose,

the company said. This compares to standard health insurance plans

which covers a full range of medical services.

Under the ‘standard’ plan, the employer ‘tailor-makes’ the overall benefit

package offered to their employees by selecting what level of coverage

they want to offer for each benefit (for example. doctor’s visits,

prescriptions, diagnostics, dental and optical and hospitalization).

With coupon health, “this simplified approach allows businesses an

opportunity to easily identity the benefits that they would want to offer to

their employees and the associated cost,” the company said.

Sagicor said the solution significantly improves processing time, with

application to delivery being under a week.

The company said the new approach to delivering health insurance has

“the added benefit of offering protection against the impact of

unpredictable claims cost, thus allowing the businesses to properly budget

for this expense”.

Sagicor declined to share premium charges and coverage attached. It

noted that employers have full discretion in determining how best to share

the cost between themselves and their team.

Asked if it was possible to upsize plans selected, the company said

Sagicor Life will provide Sagicor Fit clients with options available to them,

which could include an upgrade or an option to realign their benefit to

match their budget.

Sagicor Life declined to share its estimate of market size, but said its goal is

to increase the number of persons covered by health insurance by

approximately five per cent each year.

An insurance Association of Jamaica report in May 2018 indicated that

Sagicor Life had 64 per cent of the group health market.


Ja banks on Cayman berth for uptick in cruise passenger arrivals Wednesday 28th August, 2019 – Jamaica Gleaner

Jamaica has reported another contraction in cruise passenger arrivals for

June 2019, but there is hope that the country should see increases in

arrivals, given plans for the development of a new cruise berthing facility

in George Town, Grand Cayman.

Cruise passenger arrivals to the country dipped by 27.9 per cent for the

month of June to a total of 66,552 passengers. Data from the Jamaica

Tourist Board showed that passengers visiting the port of Ocho Rios fell by

20.7 per cent with 25,569 passengers, while visitors to the port of Montego

Bay fell by 42.4 per cent to 17,144 passengers.

Falmouth also recorded a decline of 20.1 per cent to 23,839 passengers.

The contraction in cruise passenger arrivals has impacted sales for the

Dolphin Cove attraction, which gets 50 per cent of its cruise ship guests

from the Falmouth port.

“This is primarily due to the Oasis of the Seas class of vessel not being able

to have the ship call on Grand Cayman,” vice-president of cruise

shipping at the Port Authority William Tatham told the Financial Gleaner.

“The ship is so large, they have to clear all the paths to do security

screening on the passengers onshore, and because of that, they weren’t

able to have the ship call on Grand Cayman,” he continued.

Traditional itinerary for cruise routes to the western Caribbean were Haiti,

Jamaica, Grand Cayman, Cozumel – Mexico’s largest island – and back

to Florida.

Tatham noted that with the highly rated destination that Grand Cayman

is, in addition to the fact that more vessels were being built for voyages to

the eastern end of the Caribbean, some passengers have opted to visit

the four port calls on the eastern side versus the three port calls on the

western end of the Caribbean, which includes Jamaica.

For the six-month period January to June 2019, Jamaica saw 902,088

cruise passenger arrivals visiting its shores, a decline of 12.4 per cent, or

127,793 cruise passengers.

“Because the west sail was missing Grand Cayman, we saw a decline in

the Oasis class. The good news is that Grand Cayman is very optimistic

about building a new port berth to accommodate the Oasis, and Royal

Caribbean has been very much saying that we will see a complete

turnaround, so the numbers for Falmouth will climb right back up,” Tatham

reasoned.

Grand Cayman’s planned pier and berth are expected to be operational

by 2022. Carnival Cruise Line and Royal Caribbean will help fund the

project, which will cost about $200 million.

Oasis-class vessels weighs 220,000 tonnes each and have a carrying

capacity of 6,000 passengers.


Industry ministry launching MSME digital marketing programme Tuesday 27th August, 2019 – Jamaica Observer

The Ministry of Industry, Commerce, Agriculture and Fisheries (MICAF) in

partnership with the Organisation of American States (OAS) is launching a

three-year Micro, Small and Medium Enterprise (MSME) Digital Marketing

Plan, to strengthen MSMEs in Jamaica with digital marketing solutions for

their businesses.

A Memorandum of Understanding (MOU) will also be signed between

MICAF and Kolau, a partner of Google to collaborate towards the

digitization of 25,000 local MSMEs in three years, the ministry said.

The launch of digital marketing plan is scheduled for Thursday, August 29

at the ministry's St Lucia Avenue office in New Kingston.


Pay day blues Saturday 24th August, 2019 – Jamaica Observer

National Commercial Bank (NCB) has warned its customers to brace for

more delays as it continues to implement a new systems upgrade.

Three months after NCB embarked on what it described as “a complex

but very necessary system upgrade” the bank yesterday told its customers

that, “While we continue to work on restoring full stability of our systems,

you may still experience some delays and intermittent service with some

of the features on our platforms”.

According to NCB, as it approaches the month's end, which is typically a

high-traffic period for its branches, Customer Care Centre and online

banking platforms, customers should be mindful that bill payments may

be done using its online banking platform or the mobile app.

“Payments to JPS (Jamaica Public Service Company), Flow, and the NWC

(National Water Commission) may also be made at any of our intelligent

ABMs (iABMs), which are available 24 hours a day, seven days a week, in

branches islandwide,” said NCB in its latest missive to its customers.

The bank also warned that payments may take up to 72 hours to be

processed and are not always reflected on a payee's account

immediately.

“If you incur any late fees or penalties as a result of these delays, we will

reimburse you. In the meantime, we encourage you to make your

payments as early as possible.

“As an alternative, you may visit your payees' offices to make payments

directly or use your credit card to make payments via their online

platforms. We understand that you are used to the convenience of

paying your bills online and having it updated within 24 hours. Our

technical team is focused on bringing back these service standards in the

shortest possible time,” added the bank.

NCB further noted that it continues to experience delays in its Automated

Clearing House (ACH), Real-time gross settlement (RTGS) and wire

transfers.

While the bank did not state this explicitly, industry sources warned that

the delay could be bad news for people who get paid directly to their

accounts, as they might not have access to their salaries in the normal

time.

This was hinted at by NCB which said: “While some transfers are processed

within the stipulated timelines, some may take a while longer. If you made

a transfer using any of these services and see where it has not been

processed within the expected timelines, please contact our customer

care team immediately.”

NCB further noted that while ACH transfers to other financial institutions

submitted before 2:30 pm would be processed and sent to the receiving

financial institution on the same business day, “the receiving financial

institution may take up to 72 hours to processes the file received from it”.

In addition, NCB said RTGS transfers to other financial institutions received

before 2:30 pm will be processed within two hours.

“If you are unable to view your credit card statements online, please send

a message from your online banking portal to indicate this,” the bank

appealed.

According to NCB, the majority of its in-branch services, including

account-opening and updating account information, have been

restored but customers might still experience extended wait times in some

of its branches.

“If possible, we encourage you to use our non-branch channels such as

the iABMs in our 24/7 Bank on the Go locations,” said the message to

customers.

“We will not rest until our services are fully restored and we can once

again deliver the standard of service that you expect from NCB. We will

keep you fully updated on the timelines for resolution.

“The NCB family is truly grateful for your patience and understanding,” the

bank said days after its new CEO Septimus “Bob” Blake also thanked

customers for their patience and promised “a better banking experience

for all in the shortest time possible”.

In his note to customers one week ago, Blake said when the bank started

the first phase of its upgrade in May its aim was to ensure that its systems

were modern, more user-friendly, more stable and more secure than the

previous system, which was often plagued with periods of downtime.

“Once all the issues with the new system have been addressed, it

promises to be more secure, more stable and easier to use, with great

new features many customers like you have requested. Our intention is to

deliver to our customers a world-class banking experience. We know that

we have fallen short of this target but will not rest until this is achieved,”

said Blake.


JISCO set for temporary closure by October Thursday 29th August, 2019 – Jamaica Observer

THE Alpart/JISCO bauxite/alumina plant in Nain, St Elizabeth is being

prepared for closure, which is expected to commence by October.

The plant will be closed to accommodate a revamping, which is likely to

last between 18 and 24 months, affecting almost the full complement of

1,500 workers.

Sources have informed the Jamaica Observer that the new owners, the

Chinese industrial group, Jiuquan Iron & Steel (Group) Co Ltd (JISCO), is

determined that for the plant to meet its target of two million tons of

alumina per annum — up from the current 1.6 million tonnes — it will

require a full replacement of basic production equipment. The necessary

parts have been lying on the ground at Alpart for several months.

The plant will reopen as a “Chinese-type” alumina plant using liquefied

natural gas (LNG) energy in 2020, sources also stated.

Efforts have been made to upgrade the plant and continue production,

which has already fallen 50 per cent below costs, but after visiting

Jamaica earlier this month, a team from JISCO's China headquarters are

convinced that full closure and revamping are necessary.

The plant was formerly operated as a bauxite refinery joint venture by

Kaiser Aluminum, Reynolds Aluminum and, in 1969, Anaconda, exporting

1.65 million tonnes of alumina overseas per year, and earning gross

revenues of US$1.3 billion in 2007.

As of 2011, previous partner Hydro divested its 35 per cent stake to Russian

firm UC Rusal, which assumed 100 per cent stake in Alpart. However, the

plant stopped operating due to the alumina product experiencing a

drastic 60 per cent price reversal since July 2008, which lasted some nine

years.

In 2016, UC Rusal sold its 100 per cent stake in Alpart to JISCO, which

committed to a US$3-billion expansion at Nain. The investment would be

made over a three-year period, boosting the plant's current capacity

from 1.65 million metric tons per annum to an output capacity of 2 million

metric tons per annum.

Other improvements slated for the facility include a US$500-million, 230-

megawatt LNG power plant, a new aluminium foil and stainless-steel

production facility, a new aluminium sheet plant, and a new welding rod

plant.


Barbados Government to Turn to Private Sector to Help Refurbish Health

Facilities Wednesday 28th August, 2019 – Caribbean 360

The Ministry of Health and Wellness intends to reach out to corporate

Barbados for assistance in refurbishing district hospitals and polyclinics

located in areas where companies do business.

Minister of Health and Wellness Jeffrey Bostic said that following a

successful collaboration between the ministry, the Barbados Defence

Force and a number of private sector organizations to refurbish a ward at

the Geriatric Hospital, government was interested in expanding this

initiative.

“Recognizing that we do not have all the financial resources, as Minister

of Health and Wellness I made the determination that we are going to

attempt to address the issue across the country with the polyclinics and

district hospitals.

“What we are going to be doing is to build on what we started at the

Geriatric Hospital, but this time we are going to be asking corporate

Barbados to contribute towards the facilities that are located within the

areas where they are doing business and also ask Barbadians to

contribute time and skills to help us get these things resolved,” he said.

Minister Bostic said health had also been identified as one of the priority

areas to which Barbadians in the diaspora, who will be returning home for

We Gatherin’ next year, will be asked to contribute.

Meanwhile, Barbados’ aging population continues to present a challenge

to government in terms of the availability of institutionalized care.

The minister said the number of people seeking placement in district

hospitals was way above the capacity, and even with the Alternative

Care of the Elderly programme, where government funded private health

care for 220 persons, there were still not enough places.

This was an issue which was high on the ministry’s agenda, he said, and a

number of useful ideas were being examined to tackle the problem.

These include the expansion of the community programme which would

allow the elderly to remain in their homes and communities being cared

for by persons trained in the care of the elderly. The minister maintained:

“We believe that it is important to try to keep people within communities

where they are familiar with the people and the environment.”


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