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SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: [email protected]
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB
▪ Endeavour Holdings Limited’s TTD 400 million bond issue rating reaffirmed at CariA+
▪ Government of Barbados’ rating upgraded to CariBB-
▪ TRINRE Insurance Company Limited’s rating reaffirmed at CariA-
▪ JMMB Group Limited rating assigned at jmA
▪ Government of St. Lucia’s proposed bonds’ rating assigned at CariBBB
▪ Telecommunication Services of Trinidad and Tobago rating downgraded to CariA-
▪ Trinidad and Tobago Mortgage Finance Company Limited rating reaffirmed at CariAA-
▪ The Government of Anguilla rating reaffirmed at CariBBB+
▪ NCB Financial Group rating upgraded to CariA+
▪ NCB Jamaica Limited rating upgraded to CariA-
▪ NGC’s rating reaffirmed at CariAA+ ▪ NCB Capital Markets Limited’s rating upgraded to CariBBB+
▪ NCB (Cayman) Limited’s rating reaffirmed at CariA
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Corporate Valuation Bootcamp 12th & 13th February 2020 Jamaica
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and the factors that will impact its performance
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one bond issue relative to another
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REGIONAL
Trinidad and Tobago
Touchstone finds more oil in Ortoire
CANADIAN energy company, Touchstone Exploration, yesterday
announced that the company has made what it described as 'a
significant crude oil discovery with the Cascadura-1ST1 well', which is
onshore in the Ortoire exploration block.
New CEO for ANSA McAL
NOT YET 40, Anthony Sabga III was yesterday appointed as the ANSA
McAL Group CEO, effective January 1, 2020, according to an
announcement on the conglomerate's website.
CLICO Investment Fund gains $1
OVERALL market activity resulted from trading in 18 securities of which six
advanced, three declined and nine traded firm.
Barbados
Barbados passes another IMF test, gets access to more funds
Barbados has passed its latest International Monetary Fund (IMF) test with
flying colours, in the process impressing the directors of the fund, and
opening up for itself access to almost $100 million from the Washington-
based institution.
ANSA takes over Trident
After months of negotiations, ANSA McAL (Barbados Limited) has
purchased the shares of Trident Insurance Company Limited.
New panel in place for credit union mediation
Members of co-operative societies now have a new arbitration body to
address their claims and disputes.
Jamaica
Aerodromes out west getting upgrades
Transport Minister Robert Montague says the Airports Authority of Jamaica
(AAJ) has undertaken upgrading work at two aerodromes in St Elizabeth
and Westmoreland as part of an initiative to improve and expand
Jamaica’s aviation industry.
Fly Jamaica files for bankruptcy protection
Troubled airline Fly Jamaica is seeking protection from creditors as it tries
to restructure and stay in business or explore other options, such as a sale.
Utility companies pay out over $34 million for service breaches
Utility companies paid out over $34 million for service breaches between
July and September.
JSE Market Summary
Overall market activity resulted from trading in 93 stocks of which 29
advanced, 28 declined and 36 traded firm.
Trelawny residents benefiting from major JPS work
Residents of Trelawny are now benefiting from major infrastructural work
done on the Jamaica Public Service (JPS) network in the parish, the
company has said.
Anguilla
PREMIER BANKS BOASTS OF WHOPPING BUDGET SURPLUS OF $30.73 MILLION
For the first time in the history of Anguilla, the Government of the island has
been able to achieve a budget surplus that has enabled both the paying
off of substantial local debt, and provided an opportunity to finance a
number of projects and other needs in the public sector.
EU Disburses Third Education Tranche of EC$12,66M to Anguilla
The Government of Anguilla is a step closer in the realisation of the
objectives of its Education Development Plan, following the release of the
third grant assistance tranche of EC$12.66 million (€4.25M) under the 11th
European Development Fund (EDF) Education and Training Sector Policy
Support Programme.
Antigua and Barbuda
Caribbean Helicopters workers say they are ‘beyond frustrated’
Employees contracted by Caribbean Helicopters Limited (CHL) have said
they are tired of the non-action from their employers. The diverse group of
employees, some who have been employed to CHL for more than 10
years, explained that it is now nine months since they have been last paid.
Global Ports projects a windfall of US $1.9 million for the government
Global Ports Holding (GPH) Antigua has projected 2020 tourist arrivals to
be at 788,000.
British Virgin Islands
VI & Airbnb ink Hotel Accommodation Tax agreement
The Virgin Islands (VI) and booking service Airbnb have official inked
agreements for the voluntary collection of the Hotel Accommodation Tax
on transient occupancy.
Guyana
Govt. reviewing Exxon’s third field development plan
A field development plan is a layout of all of the processes and activities
intended to develop an oil field, and the manner in which those will be
executed. Before it begins to develop a field, an oil company is required
to hand over its plan to the Department of Energy for approval before it
gets to work.
Energy Dept. putting finishing touches on final draft local content policy
The Department of Energy has received the final local content policy
draft from the Consultant, Dr. Michael Warner, according to Energy
Department Head, Dr. Mark Bynoe.
The Bahamas
‘We Need Bigger Profit On Eggs’
Food retailers are seeking "at least" a three-fold increase in the mark-up
permitted on eggs by price control, with their Association chief renewing
calls for such regulations to be abolished.
The Bahamas continued
$5m Waste Of Axed Welfare Reform Plan
Poverty-stricken families and the Bahamian taxpayer have received
almost no value from a near-$5.4m investment in welfare reform that was
halted by the Minnis administration.
Super Value Chief '100%' Confident Resort Deal Close
Super Value's owner says he is "100 percent" confident that the sale of his
Bimini Sands resort will close as early as this week, adding: "I'm doing the
island a favour by exiting."
Tourism To 'Come Out Swinging' During 2020
The Bahamas will "come out swinging next year" with new tourism
promotions and initiatives as it continues to rebound from Hurricane
Dorian's devastation.
Airport Bracing For 230k Passengers
Lynden Pindling International Airport (LPIA) is aiming to make it feel like
Christmas for the 230,000 passengers set to move through its three
terminals over the next two-and-a-half weeks.
Bahamas Enjoying 'Major' Airlift Growth
The Bahamas has seen “significant airlift growth” to Nassau and two other
islands as its pushes its “open for business” message in the aftermath of
Hurricane Dorian.
INTERNATIONAL
United Kingdom
UK uses threat of Brexit cliff-edge to demand EU trade deal by end of 2020
British Prime Minister Boris Johnson will use the prospect of a Brexit cliff-
edge at the end of 2020 to demand the European Union gives him a
comprehensive free trade deal in less than 11 months.
UK jobs growth resumes, unemployment rate near 45-year low
The number of people in work in Britain unexpectedly rose in the three
months before the missed Oct. 31 deadline for Brexit, according to data
which suggests the labor market was retaining some of its strength.
United Kingdom continued
UK factory output slides in three months to December at fastest rate since
2009
British factory output fell at the fastest pace in more than 10 years during
the three months leading up to Prime Minister Boris Johnson’s election
victory, underscoring the challenge he faces to boost the economy.
Europe
Euro zone trade surplus jumps more than expected in October
The euro zone’s seasonally unadjusted trade surplus rose more than
expected in October compared with a year earlier thanks to a sharp fall
in energy imports, data showed on Tuesday.
European shares fall from records on Unilever warning, hard Brexit
European shares pulled back after a record run on Tuesday as a sales
warning from Unilever prompted investors to sell big consumer names,
while concern that Britain will take a hard line on the Brexit transition
dragged down UK domestic stocks.
Japan
Japan industry ministry gets $423 million extra budget to strengthen
resource policy
Japan’s industry ministry has secured 45.9 billion yen ($423 million) in the
country’s supplementary budget for the current financial year as it looks
to strengthen its resource policy and secure supplies of key commodities.
Japan economy minister: Hope exports, output will improve after U.S.-
China trade deal
Japanese Economy Minister Yasutoshi Nishimura said on Tuesday he
hoped the nation’s exports and factory output would improve following
an initial trade agreement between the United States and China.
Toyota expects 2020 global car sales to stay at record-high levels
Toyota Motor Corp (7203.T) expects its global vehicle sales to stay at
record highs in 2020, even as demand shows signs of slowing in China and
the United States, the world’s top car markets.
Global
Pound and stocks flop as Brexit fears resurface
European stocks skidded off record highs and sterling dropped more than
1% on Thursday, as reports that Britain’s prime minister was ready to play
rough in Brexit talks brought December’s cross-market rally to a halt.
Oil edges further above $65 on trade hopes, supply cuts
Oil edged further above $65 a barrel on Tuesday, supported by hopes
that the U.S.-China trade deal will bolster oil demand in 2020 and the
prospect of lower U.S. crude supplies.
Aussie falls on central bank minutes; pound tanks
The Australian dollar fell nearly half a percent on Tuesday after the central
bank opened the door to another cut in interest rates as early as February
while the pound tanked on reports that Prime Minister Boris Johnson was
seeking a hard line on Britain’s transition period after Brexit.
Pound and stocks flop as Brexit fears resurface Tuesday 17th December, 2019 – Reuters
European stocks skidded off record highs and sterling dropped more than
1% on Thursday, as reports that Britain’s prime minister was ready to play
rough in Brexit talks brought December’s cross-market rally to a halt.
U.S.-China trade optimism and reassuring Chinese economic data had
driven Asia and emerging market stocks to 18-month highs overnight, but
green immediately turned red when London, Frankfurt and Paris opened.
[.EU]
Britain's FTSE 100 .FTSE, which had seen its best day in nearly a year on
Monday, dropped 0.2% on reports that Prime Minister Boris Johnson would
use his control of parliament to stop any extension of the Brexit transition
period beyond 2020.
The news knocked the domestically focused mid-cap index .FTMC as
much 1.7% lower, while the pound GBP=D3 fell 1% to back below $1.32
and nearly 2% under Thursday and Friday's post-election highs of just over
$1.35. [/FRX]
A profit warning from consumer goods giant Unilever (ULVR.L) that sent its
shares down nearly 6% also helped push the broader European STOXX 600
down 0.6%. [.EU]
“So much for pragmatism,” J.P. Morgan’s Malcolm Barr said, referring to
the reports of Johnson’s hard-line Brexit stance. “We have put the risk of a
no-deal end to the transition at 25%, a number we regard as
uncomfortably high.”
The resurgence of uncertainty over Britain’s departure from the European
Union on Jan. 31 and their future relationship meant Wall Street was
expected to give back some ground when New York reopens and put
safety trades back in play.
Most 10-year European bond yields were around two basis points lower.
UK GB10YT=RR and German 10-year yields DE10YT=RR dipped to 0.77%
and -0.29% respectively, compared to 1.85% for U.S. Treasuries. [GVD/EUR]
Britain’s political wrangling had not kept Asian stocks from joining a global
rally overnight, however, as more U.S. officials confirmed phase one of a
trade deal with China was done, although the details remain
unpublished.
The preliminary deal between Washington and Beijing reached last week
will double U.S. exports to China, White House adviser Larry Kudlow told
Fox News on Monday. The United States will also reduce some tariffs on
Chinese goods under the agreement.
Shanghai, Hong Kong and Seoul all gained more than 1% and MSCI’s all-
country index .MIWD00000PUS set a record high, putting its gains for 2019
at almost 23%, its best year in a decade and the fourth-best year ever.
“People are looking to close the year on a good note,” said Vishnu
Varathan, head of economics and strategy at Mizuho Bank in Singapore.
“I think that these are far more opportunistic than they are conviction
trades, so they tend to be a little bit more prone to taking profits.”
PALLADIUM
The Australian dollar AUD=D3 was another currency under pressure after
the minutes of this month's RBA central bank meeting suggested it might
cut interest rates again when it next meets in February.
The Reserve Bank of Australia has already cut three times since June,
taking rates to a record low of 0.75%. “Members agreed it would be
concerning if there were a deterioration in the outlook,” the bank’s
December minutes showed.
Elsewhere, investors were staying broadly optimistic over the tentative
U.S.-Sino trade deal struck last week which fueled gains in emerging
market currencies and capped the Japanese yen JPY= and Swiss franc
CHF=.
Oil was nearing three-month highs in anticipation of growing demand
from the world’s biggest economies. Brent crude LCOc1 ticked up for a
fourth day at $65.52 per barrel, while gold XAU= held just below $1,480 per
ounce.
Palladium, which is widely used in catalytic converters for car and truck
exhausts, remained the real focus, though, as it sped towards $2,000 an
ounce for the first time.
“Supply is tight in the palladium market and when you’re adding the
speculation about a potential pick-up in demand due to recovery in the
global economy, you have a perfect storm of bullish news continuing to
keep it supported,” Saxo Bank analyst Ole Hansen said.
<< Back to news headlines >>
Oil edges further above $65 on trade hopes, supply cuts Tuesday 17th December, 2019 – Reuters
Oil edged further above $65 a barrel on Tuesday, supported by hopes
that the U.S.-China trade deal will bolster oil demand in 2020 and the
prospect of lower U.S. crude supplies.
The ‘Phase One’ agreement between the world’s two largest economies
has been “absolutely completed,” Larry Kudlow, a top White House
adviser, said on Monday, adding that U.S. exports to China will double
under the deal.
Brent crude LCOc1, the global benchmark, rose 17 cents to $65.51 a
barrel by 1104 GMT, while U.S. West Texas Intermediate crude CLc1 added
1 cent to $60.22.
“Christmas has definitely arrived early for oil producers,” said Craig Erlam,
analyst at brokerage OANDA. “Brent could get closer to $70 before the
rally starts to run on fumes.”
The prolonged trade dispute has been a dampener for oil demand and
weighed on prices. Banks including JP Morgan and Goldman Sachs have
revised up their 2020 price forecasts in the wake of the improving trade
outlook and a new OPEC-led agreement to curb output.
“The risk-on tone is still noticeable,” said Tamas Varga of oil broker PVM.
“The next event to look out for is the weekly U.S. oil inventory statistics.”
Supply reports from oil industry group the American Petroleum Institute
and the government’s Energy Information Administration are expected to
show U.S. crude inventories probably fell last week.
The first of the two, from the API, is scheduled for release at 4:30 p.m. EST
(2130 GMT) on Tuesday. The government report follows on Wednesday.
Also supporting prices, the Organization of the Petroleum of Exporting
Countries and allies such as Russia - a group known as OPEC+ - are
making a further oil supply cut of 500,000 barrels per day from Jan. 1 to
support the market.
This comes on top of the existing deal to trim supply by 1.2 million bpd that
came into effect on Jan. 1 this year.
<< Back to news headlines >>
Aussie falls on central bank minutes; pound tanks Tuesday 17th December, 2019 – Reuters
The Australian dollar fell nearly half a percent on Tuesday after the central
bank opened the door to another cut in interest rates as early as February
while the pound tanked on reports that Prime Minister Boris Johnson was
seeking a hard line on Britain’s transition period after Brexit.
The Australian dollar lost 0.4% to $0.6868 AUD=D3 after minutes of its
December policy meeting showed the central bank's board was
concerned that wage growth was too weak to revive either inflation or
consumption.
The downside may be limited, however, as investors were cautiously
optimistic over an interim trade deal the United States and China struck
last week which fuelled gains in emerging market currencies and capped
the yen and Swiss franc.
The deal, announced on Friday after more than two-and-a-half years of
volatile negotiations between Washington and Beijing, will reduce U.S.
tariffs on Chinese goods in exchange for increased Chinese purchases of
some U.S. goods.
“The Aussie is weaker on the back of the back of the mode dovish than
expected RBA minutes,” said Valentin Marinov, head of G10 FX strategy at
Credit Agricole.
“That said, market expectations of a Phase 1 US-China trade deal could
limit the currency’s downside in the near term.”
The pound was the other big loser in early London trading after reports
that Johnson’s revised Withdrawal Agreement Bill would require the United
Kingdom to have arrangements to leave the European Union in place by
Dec. 31 next year.
Against the dollar, the British currency GBP=D3 fell 0.7% to $1.3236 in early
Asian trading and was hovering slightly above that level at $1.3253. It is
down nearly 2% below a post-election high of above $1.3516 hit on Friday.
The drop in the Australian dollar and the pound boosted the greenback
with the U.S. currency trading 0.1% stronger against a basket of its rivals
.DXY.
The euro was broadly stable against the greenback at $1.1143 EUR=,
levels it has traded around since August.
<< Back to news headlines >>
UK uses threat of Brexit cliff-edge to demand EU trade deal by end of 2020 Tuesday 17th December, 2019 – Reuters
British Prime Minister Boris Johnson will use the prospect of a Brexit cliff-
edge at the end of 2020 to demand the European Union gives him a
comprehensive free trade deal in less than 11 months.
In his boldest move since winning a large majority in last Thursday’s
election, Johnson will use his control of parliament to outlaw any extension
of the Brexit transition period beyond 2020.
“Our manifesto made clear that we will not extend the implementation
(transition) period and the new Withdrawal Agreement Bill will legally
prohibit government agreeing to any extension,” a senior government
official said on Tuesday.
Asked if the government would legislate to rule out any extension of the
transition beyond 2020, one of Johnson’s most senior ministers, Michael
Gove, said: “Exactly, absolutely.”
After the United Kingdom leaves the European Union on Jan. 31, it enters
a transition period in which it remains an EU member in all but name while
both sides try to hammer out a deal on their post-Brexit relationship.
A comprehensive free trade deal would encompass everything from
financial services and rules of origin to tariffs, state aid rules and fishing,
though the scope and sequencing of any future deal is still up for
discussion.
The pound fell 1.2% to $1.3155 and to 84.59 pence against the euro, levels
where it had traded before the scale of Johnson’s victory became clear
on Thursday evening and prompted strong gains. The pound is down
more than 2% from a post-election high above $1.35 against the dollar.
By enshrining in law his campaign promise not to extend the transition
period beyond the end of 2020, Johnson cuts the amount of time he has
to negotiate a trade deal to 10-11 months - and possibly quite a lot less,
given the time needed for UK and EU parliamentary approval of any deal.
The EU hopes to start the trade talks with Britain by March.
Trade deals usually take many years. The 2,000-page EU-Canada trade
deal known as CETA, or the Comprehensive Economic and Trade
Agreement, took seven years to negotiate.
While Johnson’s large majority gives him the flexibility to change the law
should he need to, he is sending a message to the EU - whose leaders
have cautioned London that more time would be needed for a
comprehensive trade deal.
EU DEAL?
If the United Kingdom and the EU failed to strike a deal on their future
relationship and the transition period were not extended, then trade
between the two would be on World Trade Organization (WTO) terms -
more burdensome for businesses.
The EU insists it will not seal a trade deal with a large, economically
powerful neighbor without solid provisions to guarantee fair competition.
Its demands will focus on environmental and labor standards, as well as
state aid rules to ensure Britain would not be able to offer products on the
bloc’s single market at unfairly low prices.
Britain’s conundrum is that it will be under pressure to loosen rules on
agricultural and food standards to strike a bilateral trade deal with the
United States.
But this would be crossing a red line for the EU, which would restrict access
to its market to protect its own producers.
Johnson and U.S. President Donald Trump by phone on Monday and they
agreed on the need for continued close cooperation and the negotiation
of an “ambitious” UK-U.S. free trade agreement.
In Britain’s talks with Brussels, fishing will be a particularly thorny issue as EU
countries will no longer be able to operate in British waters as they do
now.
With industry supply chains in the EU crossing borders multiple times for
products like cars and drugs, agreeing exact rules to designate where
products come from - and hence what regulations and taxes apply - will
also be fraught.
“It will be very complicated. It’s about an array of relations, in trade, in
fishing and cooperation in security and foreign policy,” German
Chancellor Angela Merkel told an EU summit news conference on Friday.
<< Back to news headlines >>
UK jobs growth resumes, unemployment rate near 45-year low Tuesday 17th December, 2019 – Reuters
The number of people in work in Britain unexpectedly rose in the three
months before the missed Oct. 31 deadline for Brexit, according to data
which suggests the labor market was retaining some of its strength.
The number of people in employment rose by 24,000 to 32.8 million in the
August-to-October period, bucking the median forecast for a drop of
10,000 in a Reuters poll of economists.
The employment rate hit an all-time high of 76.2% while the
unemployment rate fell back to its lowest level since the three months to
January 1975 at 3.8%.
“The larger-than-expected rise in employment in October suggests the
labor market is not getting any worse and may have even started to turn
around,” said Andrew Wishart at Capital Economics.
The increase in jobs was driven by a rise in the number of self-employed
workers and full-time staff, while the number of part-time employees fell.
British government bond prices fell by a small amount as investors viewed
the chance of a Bank of England interest rate cut next year as slightly
lower.
Britain’s labor market has stayed strong even as the economy slowed
following the 2016 referendum vote to leave the European Union. That is
due in part to employers, who are uncertain about what Brexit will bring,
hiring staff who can be laid off easily rather than making longer-term
commitments to invest in equipment.
But there had been signs recently that the jobs boom was weakening.
These prompted two interest-rate setters at the Bank of England to vote
for a cut to borrowing costs last month, and they are expected to do so
again this week.
Prime Minister Boris Johnson last week reduced some of the uncertainty
hanging over the economy by winning a big majority in a national
election, ending any doubts about whether Britain would leave the
European Union on the new date of Jan. 31.
But nerves about Brexit could return soon. Johnson plans to pass a law
ruling out any extension of the Brexit transition period beyond the end of
2020, saying he is confident he will clinch a free trade deal with the
European Union by then.
There were some signs of caution among employers in Tuesday’s data.
Vacancies were the lowest since the three months to August 2017 at
794,000.
The Office for National Statistics also said average earnings rose by an
annual 3.2%, the weakest increase in more than a year and slowing
sharply from growth of 3.7% in the three months to September. The ONS
attributed much of the slowdown, however, to high bonus payments in
October 2018 which distorted the comparison.
Excluding bonuses, pay growth slowed less sharply to 3.5% from 3.6% in the
three months to September and was above the Reuters poll forecast of
3.4%.
<< Back to news headlines >>
UK factory output slides in three months to December at fastest rate since
2009 Tuesday 17th December, 2019 – Reuters
British factory output fell at the fastest pace in more than 10 years during
the three months leading up to Prime Minister Boris Johnson’s election
victory, underscoring the challenge he faces to boost the economy.
The Confederation of British Industry’s gauge of manufacturing output
over the three months to December fell to -16 from -9 in November, its
weakest reading since September 2009.
Inflows of new work also deteriorated as the CBI’s monthly order book
balance fell to -28 from -26.
The survey of 289 manufacturers covered Nov. 22 to Dec. 11, just before
Johnson chalked up a comprehensive victory in last Thursday’s election.
Other surveys have also shown Britain’s manufacturers have struggled in
recent months against a global drop in demand, as well as uncertainty
surrounding Brexit and the election.
“With manufacturers reporting that output is declining at a pace not seen
since the financial crisis, alongside another month of softer order books, it
is crucially important to rebuild business confidence in this sector,” CBI
deputy chief economist Anna Leach said.
“After three years of gridlock, the Prime Minister now has a clear mandate
to govern. Businesses across the UK will want him to break the cycle of
uncertainty,” she added.
The survey showed export orders declined at one of the fastest rates since
the financial crisis.
<< Back to news headlines >>
Euro zone trade surplus jumps more than expected in October Tuesday 17th December, 2019 – Reuters
The euro zone’s seasonally unadjusted trade surplus rose more than
expected in October compared with a year earlier thanks to a sharp fall
in energy imports, data showed on Tuesday.
The European Union’s statistics office Eurostat said the trade surplus of the
19 countries sharing the euro rose to 28.0 billion euros ($30.9 billion) in
October from 13.2 billion a year earlier after exports jumped 4.1% and
imports fell 3.2%.
Economists polled by Reuters had expected a trade surplus of 17 billion
euros in October.
The euro zone produces three quarters of the European Union’s gross
domestic product, and energy imports to the whole EU fell 7.7% in
January-October, cutting the energy trade gap to 228.8 billion euros from
246.7 billion a year earlier.
Adjusted for seasonal swings, the euro zone trade surplus in October was
24.5 billion euros, up from 18.7 billion in September, with exports up by 2.1%
and imports down 0.9% on the month.
<< Back to news headlines >>
European shares fall from records on Unilever warning, hard Brexit Tuesday 17th December, 2019 – Reuters
European shares pulled back after a record run on Tuesday as a sales
warning from Unilever prompted investors to sell big consumer names,
while concern that Britain will take a hard line on the Brexit transition
dragged down UK domestic stocks.
The pan-European equities index fell 0.6% after soaring to record highs in
the previous session.
The biggest weak spot was consumer goods giant Unilever (ULVR.L)
(UNA.AS). Its shares tumbled 6%, on course for their biggest percentage
drop since July 2015, after the company warned that 2019 sales would
grow less than it had expected, citing tough trading conditions in West
Africa and a slowdown in south Asia.
Europe’s personal and household goods sector fell 2.1%, the most among
regional subsectors.
“With Unilever, it’s a combination of technical breakdown on the charts,
you’ve got the warning and the time of the warning is not ideal because
the markets have already been rotating out of big UK defensive names,”
Mark Taylor, sales trader at Mirabaud Securities.
Taylor, however, suggested Tuesday’s broader market moves were “just
reassessing some of the outsized moves that we’ve seen in the last few
days.”
Global equity markets reached record highs on Tuesday, encouraged by
phase one of a trade agreement between the United States and China
and by Boris Johnson’s victory in UK elections last week, which raised
hopes for an orderly exit by Britain from the European Union.
Domestically focused UK stocks, also at record highs, succumbed to
selling pressure on Tuesday after reports that Johnson would use his control
of parliament to rule out any extension of the Brexit transition beyond
2020.
British banks Royal Bank of Scotland (RBS.L), Barclays (BARC.L) and Lloyds
Banking Group (LLOY.L) slid more than 3%.
London's blue-chip index, the FTSE 100 .FTSE held steady, aided by a
weaker pound. The latest data showed Britain's employers unexpectedly
took on more staff in the three months before the country's Oct. 31 Brexit
deadline, suggesting the labor market was retaining some of its strength.
Airbus rose 0.5% after Boeing said it would suspend production of its 737
MAX jetliner in January. Shares in aircraft-parts maker Safran (SAF.PA) fell
about 4%.
Ryanair, Air France and Lufthansa were all weaker as well.
Shares in Austrian specialty steelmaker Voestalpine (VOES.VI) fell 3.1%
after it cut its full-year profit forecast and said it planned to lower its
dividend payment.
German defense group Rheinmetall (RHMG.DE) was the top gainer on the
STOXX 600, up 2.3%, after Goldman Sachs started coverage with a “buy”
rating.
<< Back to news headlines >>
Japan industry ministry gets $423 million extra budget to strengthen
resource policy Tuesday 17th December, 2019 – Reuters
Japan’s industry ministry has secured 45.9 billion yen ($423 million) in the
country’s supplementary budget for the current financial year as it looks
to strengthen its resource policy and secure supplies of key commodities.
The move comes as resource-poor Japan faces an increasing risk of
supply disruption. It buys 90% of its oil from the Middle East where
geopolitical tensions are on the rise, while it is also competing with other
countries to secure liquefied natural gas and critical metals used in
batteries and other high-tech products amid rising global demand.
Japanese cabinet approved its supplementary budget last Friday,
featuring additional fiscal spending worth about 4.5 trillion yen, for the
fiscal year to March.
The Ministry of International Trade and Industry plans to use 20.9 billion yen
of the extra budget to diversify sources for rare earths and cobalt, which
are used in electric vehicles and lithium batteries, its budget document
shows.
The country aims to lower its reliance for rare earth on any single country
to 50% or less by 2025 while it wants to raise its self-sufficiency ratio through
equity investments to 50% by 2025, the ministry said in the document.
China dominates the supply chain of rare earths from mining to
processing to magnet production, accounting for more than 80 percent
of global supply.
The ministry also set aside 25 billion yen to provide funds through state-run
Japan Oil, Gas and Metals National Corp (JOGMEC) to help LNG projects
in Russia and Arctic areas.
This year, Japanese trading house Mitsui & Co and JOGMEC agreed to
buy a 10% stake in an upcoming LNG project, the Arctic LNG 2, owned by
Russia’s Novatek.
Japan is targeting to boost self-sufficiency ratio for oil and gas to 40% in
2030 from 29.6% in 2018, according to an official at the ministry.
<< Back to news headlines >>
Japan economy minister: Hope exports, output will improve after U.S.-
China trade deal Tuesday 17th December, 2019 – Reuters
Japanese Economy Minister Yasutoshi Nishimura said on Tuesday he
hoped the nation’s exports and factory output would improve following
an initial trade agreement between the United States and China.
The U.S. and China cooled their trade war last week, announcing a
“Phase one” agreement that reduces some U.S. tariffs in exchange for
what U.S. officials said would be a big jump in Chinese purchases of
American farm products and other goods.
<< Back to news headlines >>
Toyota expects 2020 global car sales to stay at record-high levels Tuesday 17th December, 2019 – Reuters
Toyota Motor Corp (7203.T) expects its global vehicle sales to stay at
record highs in 2020, even as demand shows signs of slowing in China and
the United States, the world’s top car markets.
The Japanese automaker said it planned to sell a record 10.77 million
vehicles next year, including cars sold under the Toyota, Lexus and
Daihatsu brands along with Hino trucks, a touch higher than its plans to sell
10.72 million units for the year ending December.
Competition to sell more vehicles is tight among the world’s biggest
automakers as they try to boost sales to achieve economies of scale and
reduce costs at a time when they are investing heavily to develop next-
generation technologies including self-driving vehicles and electric cars.
Germany’s Volkswagen (VOWG_p.DE) has been the top-selling
automaker for the past five years, delivering 10.83 million vehicles
including its MAN and Scania heavy trucks in 2018.
<< Back to news headlines >>
Govt. reviewing Exxon’s third field development plan Tuesday 17th December, 2019 – Kaieteur News
A field development plan is a layout of all of the processes and activities
intended to develop an oil field, and the manner in which those will be
executed. Before it begins to develop a field, an oil company is required
to hand over its plan to the Department of Energy for approval before it
gets to work.
The current review process is being conducted by the Department of
Energy, in conjunction with the Guyana Geology and Mines Commission
(GGMC).
Director of the Department of Energy, Dr. Mark Bynoe, notified the media
of this process yesterday, during a press conference at the Department’s
Brickdam office.
He said that the Government agencies have gained some level of
understanding based on their experiences during the review processes for
the Liza-1 and Liza-2 projects. Those projects have been approved and
are both set to be operationalised by this month and 2022 respectively.
The projected cost for their development amounts to nearly US$10B.
The Payara project is shaping up to cost just as much as Liza-2, as there
are many project similarities. Those include the Floating Production,
Storage and Offloading (FPSO) vessels, which would both produce
220,000 barrels of oil per day.
Dr. Bynoe said yesterday that the Liza Unity is about 97 percent complete.
The Director told reporters that the topside fabrication is ongoing, while
the line-pipe fabrication is 99 percent complete, and the buoyancy
modules 80 percent complete.
“The operator is working with the Department of Energy to continue to
fulfill the conditions that were laid down, and I’m happy to report that we
have since received one such report from the operator that was a
condition of the FDP approval.”
That report is being reviewed by the Department of Energy and the
Environmental Protection Agency (EPA).
Following the Government’s preliminary review of the Payara FDP,
Government will hire a third party reviewer to conduct a more
comprehensive review. It has completed the contract negotiation thus
far, and is now awaiting the award of the contract to a reputable
international firm.
Recent public discourse about the field development plans, as reported
by Kaieteur News, indicate that there is a considerable push to make sure
the activities planned by ExxonMobil and its partners on the Stabroek
Block, and the costs involved, are repeatedly and publicly scrutinised.
The Petroleum Directorate of Norway, for one, makes their field
development plans public. Industry experts have posited that Guyana
should do the same.
Kaieteur News posed the suggestion to Dr. Bynoe, who indicated his
refusal to do so. He indicated that there is proprietary information that
needs to remain confidential. When Kaieteur News suggested the
publication of the field development plans after the removal of such
proprietary information, the Director of the Energy Department did not
respond.
All of this happens as ExxonMobil hands out contract after contract for
construction works related to the still unapproved Payara FDP. The
company has indicated its intention to start production on the Payara
project in 2023
<< Back to news headlines >>
Energy Dept. putting finishing touches on final draft local content policy Tuesday 17th December, 2019 – Kaieteur News
The Department of Energy has received the final local content policy
draft from the Consultant, Dr. Michael Warner, according to Energy
Department Head, Dr. Mark Bynoe.
The Department is editing the policy and aims to complete and finalise it
before December ends. In addition, the reporting policy is already being
used, as during a press conference yesterday, Bynoe told reporters that
the Department has commenced the process of reviewing the oil
companies’ local content reports. This is in the hope that they adjust their
operations to ensure a smooth transition to adherence with the policy’s
requirements.
Kaieteur News has been reliably informed that ExxonMobil’s subsidiary,
Esso Exploration and Production Guyana Limited (EEPGL), has submitted its
2020 plan, and a report on its local content achievements.
Dr. Bynoe said that the last report from EEPGL indicated that over 1,500
Guyanese are directly employed with the operator and its contractors,
with 76 percent of them being in the skilled and professional categories.
He said the locals employed are predominantly from regions three, four
and six.
The Director further indicated that the company has engaged with over
435 Guyanese vendors and spent over $82M in the third quarter of 2019,
an increase of more than 150 percent over the 2018 figure.
Dr. Bynoe has commended EEPGL, indicating that the Department of
Energy is encouraged by the continued contributions made to raising
capacity and standards in Guyana.
Government is currently working with CGX Energy and Tullow Oil to
develop their local content plans.
The Director also said that EEPGL is working with the Council for Technical,
Vocational Education and Training (CTVET) for the revision of the
curriculum for electrical welding and fabrication level 1 programme. The
aim is to train trainers, starting in July and August of 2020, to ensure the
revised curriculum is properly delivered. There are also facility upgrades in
the works, to ensure that the laboratories facilitate safe training
procedures.
<< Back to news headlines >>
‘We Need Bigger Profit On Eggs’ Monday 16th December, 2019 – Tribune 242
Food retailers are seeking "at least" a three-fold increase in the mark-up
permitted on eggs by price control, with their Association chief renewing
calls for such regulations to be abolished.
Philip Beneby, head of the Retail Grocers Association, confirmed to
Tribune Business that the group and its members have written to the
Government's Price Control department to arrange a meeting over their
calls for the mark-up to be increased from 10 percent to around 35-40
percent.
Revealing that this has been a long-standing "issue", Mr Beneby said the
fragile nature of eggs meant Bahamian food stores frequently lost product
to damage and spoilage before they reached supermarket shelves.
With the associated refrigeration demands adding to retailers' already sky-
high electricity bills, he explained that the current mark-up means they
suffer significant losses on "a staple" for many Bahamian families because
they are unable to cover their costs.
Confirming that eggs are effectively a "loss leader" for the Bahamian
grocery industry, Mr Beneby said the sector was also exposed to sudden
global market price swings as this nation is no longer a producer.
"Eggs have been an issue with price control for a very long time," he told
Tribune Business. "The price of eggs fluctuates; we don't produce eggs
here, and it changes from time to time and place to place.
"We are only allowed a 10 percent gross mark-up. We would be seeking a
higher mark-up on egg prices. Eggs are very delicate, and we're having
losses on them while having to keep them under refrigeration and all the
other issues with it.
"The mark-up that's being looked at is at least a 35-40 percent gross mark-
up. At 10 percent, eggs are not a profitable item. It's an item that we carry
in store as a necessity item customers require but it's not a profitable item.
It is a staple, a Bahamian staple."
Mr Beneby said the Association, which counts the likes of Super Value and
BISX-listed AML Foods, the Solomon's and Cost Right operator, among its
members, has written to the Price Control department seeking a meeting
on egg mark-ups.
"A meeting was requested," he added, "but nothing has been arranged
along those lines yet. We're waiting to confirm a meeting with them." Mr
Beneby, who revealed that between 70-75 percent of the inventory sold
by his company, Carmichael Road-based Courtesy Supermarket, is price
controlled, again reiterated that such regulations were unnecessary in the
modern Bahamas and failing to fulfill their objective.
"There's no need for price control," he told Tribune Business. "That's not my
call; that's my opinion. There is no need for price control. The market is a
competitive market, and therefore competition will drive it and prices.
There's no real need for price control, but who am I? The Government
introduced it.
"Everybody is trying to hold the line on prices as best we can. The
inventory on price control is anywhere from 70 percent to 75 percent of
the total. About 70 percent of items are price controlled, at least in my
store. I can only speak for my store."
The debate over whether price controls have outlived whatever use they
had, and should therefore be abolished, or if they remain a vital tool in
ensuring lower income Bahamians can afford to purchase basic food
items, has reared up at frequent intervals in recent years - especially when
Dr Duane Sands, minister of health, unveiled the proposed reforms to the
price-controlled "breadbasket" food line-up.
Food retailers, gas stations and other industries subject to price controls,
such as auto dealerships, argue that they are outdated, antiquated and
ineffective, and are a sign of how inefficient and bureaucratic the
Bahamian economy remains by forcing them to sell a substantial portion
of their inventory below cost or at a loss.
Such industries suggest price controls are no longer fit for purpose, are
failing in their alleged role to protect consumers, and cause unintended
consequences for the Bahamian public. In the case of the food industry,
selling price-controlled items at a loss forces them to hike the price of
other products higher than they would to compensate, disadvantaging
consumers.
In countries such as Venezuela, loss-causing price controls have caused
companies to stop or restrict the supply of such products, resulting in
shortages and price hikes that place them beyond affordability for many
consumers.
Price controls were first imposed under the Pindling government in a bid to
ensure Bahamians were able to afford a reasonable standard of living,
and advocates argue that they remain fit for purpose by ensuring those
on low incomes can afford staple food items and are not exploited by
unscrupulous merchants seeking to extract every cent in profits.
Successive administrations have declined to address the issue, with many
suspecting they are eager to avoid any negative political fall-out from
abolishing or easing price controls and subsequently being accused of
being against the “small man”.
However, these regulations are viewed by many as ill-suited for market
economies, especially since they have failed to keep up with ever-
increasing expenses. Many observers believe the Bahamian food retail
and wholesale industry is sufficiently competitive to ensure prices remain
keen, thereby achieving the same effect as government regulations.
<< Back to news headlines >>
$5m Waste Of Axed Welfare Reform Plan Monday 16th December, 2019 – Tribune 242
Poverty-stricken families and the Bahamian taxpayer have received
almost no value from a near-$5.4m investment in welfare reform that was
halted by the Minnis administration.
An Inter-American Development Bank (IDB) report on efforts to reform The
Bahamas' social safety net, which it helped to finance, reveals that the
already-launched initiative was "cancelled after the change in policy
direction" that followed the May 2017 general election.
The document, which has been obtained by Tribune Business, reveals that
$5.374m in IDB financing had been spent by the time the project was
stopped. This now represents monies taxpayers will have to repay despite
not gaining the intended benefits from them.
Frankie Campbell, minister of social services and urban development,
could not be reached for comment yesterday despite text messages and
voice mails being left. However, the Minnis administration last year blasted
the welfare reform initiative for having "self-destructed and suffered
irreparable defects as a result of poor management, low performance
outputs and failure to meet deliverables".
It added that the IDB itself had recommended closing the project by its
"fixed expiration date" of August 2017 due to the "limited results" and
problems associated with its execution. Yet none of this is mentioned by
the IDB's "project completion report" which, while acknowledging
implementation challenges, blamed its closure on policy decisions taken
by the Minnis administration.
Melanie Griffin, the former social services minister who oversaw the
project's development, yesterday told Tribune Business that the IDB report
exposed "a total loss for this country" when it came to combating
"generational poverty" and welfare dependency.
She added that the project had been designed to "break that cycle" by
linking the payment of welfare benefits to specific education and health
goals. Known as a conditional cash transfer (CCT), which would have
consolidated the Government's benefits regime, the initiative aimed to
"change behaviour" among the children of poor families by promoting
schooling and healthy living.
Benefits recipients would have been required to ensure their children
maintained a 90 percent school attendance record at both primary and
secondary level, and keep a grade point average (GPA) of 2.0 or more.
Dropping below this level would have triggered a 90 percent minimum
attendance threshold at tutoring classes.
On the health front, beneficiaries and their families would have been
required to attend the likes of routine prenatal classes, "well child care"
visits, parent craft classes and healthy weight clinics in a bid to combat
childhood obesity and the high level of non-communicable diseases that
flow from it.
Mrs Griffin, arguing that the IDB report vindicated her criticisms of the
Minnis administration, said it was another example of how five-yearly
changes in government are undermining initiatives that benefit the
Bahamian people.
Adding that the fight against poverty was non-political, the former
Cabinet Minister said the Christie administration would have sought an
extension of the August 2017 deadline from the IDB had it been returned
to office.
"It was a full onslaught against poverty," Mrs Griffin told Tribune Business. "It
was not just doling out assistance. It was meant to take us beyond that. It
was meant to take families out of poverty by building health, education
and making them better able to compete in the job market.
"For me and this country it was a total loss for this programme to be
stopped. We already had in place the IT platform; it was just about
complete. Everything was in place. The IT system was not just in New
Providence; we had built the capacity and started to send computers to
Grand Bahama. I myself sat in training on these computers.
"I'm very passionate about this. I got involved with this personally to push
things, drive things...... It just goes to show what happens when you have
changes of government, and you do not have the inclination to move
forward with what the previous administration left in place," she
continued.
"All they [the Minnis administration] had to do was build on it. The IDB is not
political, and we had already had training sessions on it. This was
devastating for the social workers, who were looking forward to helping
clients better and weaning them off poverty."
The decision to halt the Social Safety Net Reform initiative was taken
under Mr Campbell's ministerial predecessor, Lanesha Rolle, who is now
minister of youth, sports and culture. A previous IDB report, revealed by
Tribune Business last year, was also highly critical of the effort in finding
that it achieved "none of the planned outcomes" with just 27 percent of
the targeted 12,000 Bahamian households receiving cash grants.
However, the more-detailed "project completion report" provides a
different take, arguing that the minimal achievements had more to do
with the project being halted in mid-stream while also identifying the
typical bureaucratic weaknesses in the Bahamian government.
"The project was cancelled after the change in policy direction based on
the change in the political administration after the elections in May 2017,"
the IDB report said. "Using social safety nets as a means of affecting these
outcomes is no longer seen as a viable option for affecting these
indicators.
"After the change in government, the programme was assessed and
found not to be in line with the current policy direction, which is why most
of the outcomes, which depended on the government delivering transfers
under the new rule, were not achieved."
Some $9.6m worth of funding had initially been dedicated to alleviating
poverty and welfare dependency, with $7.5m to come from the IDB and
the balance from the Government. While the project was halted before
the final $4.386m was disbursed, some $5.374 had already been used.
"What we had under the old system was a grandmother on food
assistance, her daughter on food assistance, and her daughter's daughter
on food assistance," Mrs Griffin said yesterday. "It was generational, and
for us to break that generational cycle was very important and to make
these people better able to fend for themselves.
"Did the programme have some setbacks, some challenges? Of course it
did. It was a first for us. This was totally new for us. In fact, the programme
in The Bahamas was going further than many in other countries. We
looked at what had been done in other countries, and changed them to
suit the situation in The Bahamas with all its islands. It was tailor-made for
The Bahamas."
Mrs Griffin said the switch from paper food coupons to pre-paid cards was
also designed to combat widespread fraud involving the former that has
been identified in previous Auditor-General's reports.
"One of the important conclusions from the report was that the targeting
mechanism was well designed and would have been adequate to target
the poor," the IDB project completion report said, noting that some
funding was used to help poor households recover from Hurricane
Matthew in October 2016.
<< Back to news headlines >>
Super Value Chief '100%' Confident Resort Deal Close Monday 16th December, 2019 – Tribune 242
Super Value's owner says he is "100 percent" confident that the sale of his
Bimini Sands resort will close as early as this week, adding: "I'm doing the
island a favour by exiting."
Rupert Roberts told Tribune Business he hoped to conclude the deal this
week after the intended purchasers, the Asplundh family, put their
signatures to the agreement in Bimini on Friday.
Revealing that he was "too busy selling potatoes and onions", Mr Roberts
said he needed to pass Bimini Sands on to a buyer with the capital and
expertise to properly oversee its future development because it had
become too "time intensive".
"We are there," he confirmed of the sale's imminent conclusion.
"Everything is in play. We've been working it for weeks. I'd hope to sign
some time next [this] week. Something like this involves a lot of details, and
takes a lot of time to clean up."
Mr Roberts said Peter Maury, who he hired as a consultant to help oversee
Bimini Sands' operations, had visited Bimini on Friday to obtain the sign-off
from the US billionaire family that is set to acquire the property.
The Asplundhs, who originate from Philadelphia, trace the source of their
wealth to their 91-year-old business, Asplundh Tree Expert, which cuts trees
and vegetation for electrical utility companies.
Now under its third generation of family ownership, the company is
described as a $3.1bn revenue business that employs a 35,000-strong
workforce across multiple US states.
"I like the family and have a lot of confidence in them," Mr Roberts said.
"I've met Mr Asplundh, he's a young 80s, and his son lives in Florida and
he's involved." Tribune Business understands that the Asplundh family
intend to re-name Bimini Sands as Bimini Cove, but few details as to their
plans have been revealed as yet.
Reiterating his belief that they will transform the property into "a gem like
Cat Cay", Super Value's owner added that the passing of his late Bimini
Sands business partner some three to four years ago had been a key
factor behind his decision to get out.
"They have the resources and capabilities to do it," Mr Roberts said of the
Asplundhs. "At this point I'm doing Bimini a favour to exit for them to move
the resort to a higher level. I always felt that the marina should be
enlarged. We have less than 100 slips, and could go to 200. It needs that
investment, and I think with a new investor that will come.
"After [Frank] Cooney dies, I'm too busy selling potatoes and onions, and
without the eye of the master... You need the eye of the master to make it
work. It's a difficult business from what I understand of it. The hospitality
business, I don't have the expertise, so am giving it to someone who knows
something about it.
"Supermarkets are so time intensive, and take time to manage. Being
involved at Commonwealth Bank only takes so many hours in the
Boardroom. I'd rather get out as this is too time intensive."
Bimini Sands currently features 216 condo units and around 60 marina slips.
The Asplundhs are acquiring the 50 condo units yet to be sold, with just
under half - some 24 - already furnished.
Mr Roberts said he was "satisfied to move out" based on the purchase
price he is due to receive, which he declined to reveal. "I have a lot of
acreage of land in Bimini, and maybe in future years my children and
grand children will make money out of Bimini," he added.
"We still have to settle the water situation. We may stay in that, we may
hand it [the Bimini Sands water supply] over completely to the new
owners. If they want us to stay on it and help them we will, but if we stay in
it I would hope to be a water producer as water is a high duty item. Why
send hard-earned dollars to the US for water? We'll look at that in the
future."
Bimini Sands condo owners were informed of the resort's impending sale in
a letter earlier this year, which said the deal will "put Bimini Sands back on
the map" and increase the value of their properties.
"These buyers have a clear vision of what Bimini Sands should be and is
currently lacking. They do realise there is a lot of work ahead of them, as
well as gaining the trust, confidence and co-operation of all the
homeowners and HOA [Homeowners Association] board members," the
letter said.
It added that the buyer's planned upgrades included paving all roads;
new landscaping and lighting; a new condo rental programme; new
security camera system; marina expansion and fix-ups with "first right of
refusal" to current homeowners; repairs to the infinity pool; beach
replenishment; "addressing the current restaurant deficiencies" and water
supply woes; fixing the sewerage treatment plant; and marketing and
rebranding Bimini Sands.
"These buyers are very sharp and have seen all the negative postings on
social media, which is not a mystery and a big concern for them," the
letter said.
"The future of our homes at Bimini Sands will be given new life with the
enthusiasm and knowledge of these buyers. I hope we can all agree to
put our differences aside and start anew. The first test will be getting
everyone on board to approve the painting of all the buildings in each
phase, which is so badly needed."
<< Back to news headlines >>
Tourism To 'Come Out Swinging' During 2020 Monday 16th December, 2019 – Tribune 242
The Bahamas will "come out swinging next year" with new tourism
promotions and initiatives as it continues to rebound from Hurricane
Dorian's devastation.
Bridgette King, the Ministry of Tourism's executive director of sales, outlined
the country's ambitions as the Bahamas Tourist Office's sales and
marketing team organised a Christmas event for south Florida travel,
corporate and media partners at Brightline Station, Miami.
Ms King said that while The Bahamas had just missed its projected seven
million visitor target in 2019 due to Hurricane Dorian, it was now focused
on this goal for next year. She said: "Grand Bahama is coming on strong,
and although it may be a little while for Abaco, they are still rocking."
She added that the Ministry of Tourism will launch a new marketing
campaign for 2020, along with new initiatives on the ground and
activations including Sawgrass Mills Mall in Sunrise, Florida, for an entire
month.
Attendees at the event included airlines, hotels, tour operators,
wholesalers, journalists, bloggers and others. The event in Miami followed
the Bahamas Tourist Office Florida's Christmas Mix N' Mingle in Orlando a
few days earlier.
<< Back to news headlines >>
Airport Bracing For 230k Passengers Monday 16th December, 2019 – Tribune 242
Lynden Pindling International Airport (LPIA) is aiming to make it feel like
Christmas for the 230,000 passengers set to move through its three
terminals over the next two-and-a-half weeks.
“Based on historic passenger numbers this year and our initial projections,
we are in for a busy season here at the airport. Our focus at NAD is to
continue to work with all of the relevant stakeholders to ensure the smooth
movement of passengers through our facilities, especially during the peak
periods,” said Jan Knowles, Nassau Airport Development Company’s
(NAD) vice-president of marketing and commercial development.
“Our goal is to use best practices implemented over the Easter, summer
and Thanksgiving periods to manage passenger flow. The in-terminal
holiday activities, entertainment and special promotions are a way for us
to make the travel process more enjoyable for passengers.”
She added: “We’re encouraging persons travelling between now and the
New Year to plan ahead and stay connected to the airport, and their
airlines for relevant travel updates. It’s also advised that persons travelling
on US-bound flights to arrive at least three hours prior to their scheduled
departure time and two hours for international and domestic departures.”
NAD, the airport operator, has launched its seasonal entertainment
programme in-terminal with 230,000 persons set to move through its
terminals between mid-December and January 2. On December 12,
mixologist Marv Cunningham staged a holiday- inspired mixology session
featuring Spice Guava Egg Nog, Peppermint Mojito and Santa’s Little
Helper, a non-alcoholic drink for children.
The halls are decked and the trees are trimmed at Lynden Pindling
International Airport (LPIA) as the country’s major gateway prepares to
manage heavy passenger traffic over the Christmas season. Between
mid-December, 2019 and January 2nd, 2020, an estimated 230,000
passengers will be processed through the airport’s three terminals.
LPIA’s commercial retailers last week launched their 12 Days of Christmas
promotion, and US-bound passengers spending $25 or more had a
chance to “spin and win” LPIA paraphernalia. Retail promotions will
continue through Christmas Eve.
<< Back to news headlines >>
Bahamas Enjoying 'Major' Airlift Growth Monday 16th December, 2019 – Tribune 242
The Bahamas has seen “significant airlift growth” to Nassau and two other
islands as its pushes its “open for business” message in the aftermath of
Hurricane Dorian.
Tyrone Sawyer, senior director of airlift development for the Ministry of
Tourism and Aviation, said: “There has been significant growth in air seat
capacity to Nassau, North Eleuthera and Exuma, major Bahamas markets,
from the following hubs: Charlotte, Atlanta, Toronto, Miami, Dallas/Fort
Worth and Newark.
“These are some of the key hubs undergirding airlift to the islands of The
Bahamas, and this increase in airlift to The Bahamas is well-positioned to
drive the country’s tourism growth. There is a high volume of non-stop
flights from key tourist markets in close proximity The Bahamas. This
proximity advantage gives The Bahamas the unique ability to attract high
income visitors, with the desire to achieve a foreign, accessible, authentic
vacation experience at competitive prices.”
Mr Sawyer also pointed to the new and increased flights that will affect
the upcoming winter travel season, and added: “The islands of The
Bahamas have - and will - benefit from increases in non-stop air seat
capacity from core tourist markets like New York, Fort Lauderdale,
Houston, Boston, Orlando, West Palm Beach, Jacksonville and Chicago.”
He said the upcoming increases in airlift include:
• JetBlue will add a second daily flight from Boston to Nassau in March
and April 2020
• United Airlines will add a new non-stop Saturday-only jet from Denver to
Nassau in March 2020
• Silver Airways is adding a Fort Lauderdale to Bimini flight, supported by
connections through its code share partners, JetBlue and United
• Air Canada will increase its Montreal to Nassau non-stop flights from two
to four flights per week in December 2019
Dionisio D’Aguilar, minister of tourism and aviation, said: “Over the past
two years we have seen improved load factor performance by most of
our airline partners serving the islands of The Bahamas from origin and
destination markets.
“This increase in consumer demand, driven by vigorous promotional
efforts in the marketplace by the Ministry of Tourism and Aviation and our
industry partners, has given our airline partners renewed confidence to
increase air seat capacity from key markets to set the stage for further
growth.”
Mr Sawyer added: “The goal is to build upon a proven formula: Build
strong demand and airlift will follow.”
<< Back to news headlines >>
Touchstone finds more oil in Ortoire Tuesday 17th December, 2019 – Trinidad Express Newspapers
CANADIAN energy company, Touchstone Exploration, yesterday
announced that the company has made what it described as 'a
significant crude oil discovery with the Cascadura-1ST1 well', which is
onshore in the Ortoire exploration block.
The oil company said Cascadura well cased hole wireline logs indicated
significant prospective oil pay totalling 1,037 feet from 1,374 feet of gross
sand.
The company said it expects to complete and test the well in the first
quarter of 2020. It said Cascadura is the second prospect of four on the
Ortoire block with initial test results at COHO-1 previously released by the
Company last month.
Commenting on the discovery, Touchstone's president and CEO, Paul R
Baay: 'The well results far exceed any pre-drill expectations. This well is not
only a significant discovery and milestone for Touchstone, but we believe
it also establishes a new development stage for onshore drilling in Trinidad.
'In the new year, we expect to test each zone independently in order to
better understand the economic potential of the prospective oil sands,
and if the findings are positive, it will set up an expansive development
drilling programme in the area.'
In a statement, former minister of energy in the previous People's
Partnership administration, Kevin Ramnarine, congratulated the company
on the discovery.
He noted that Touchstone was formally awarded the licence for the
Ortoire block October 31, 2014 following a successful competitive land bid
round in 2013/2014 that saw the award of three blocks to three
companies.
'It was always expected that these three land blocks had the potential to
resuscitate land-based oil production in T& T and stimulate economic
activity in the south-eastern part of the island,' said Ramnarine.
He added that what is significant about the Cascadura well is the fact
that it discovered crude oil in 1,037 feet of total net oil pay, which makes it
a potentially significant discovery and 'potentially the most significant
discovery on land since the 2002 discovery of the Carapal Ridge (now
Shell Central Block).'
He noted that the success of Touchstone underscored the need for the
Ministry of Energy to be continuously awarding acreage for exploration,
adding that unfortunately, the opposite has happened in the last four
years.
'For the period 2016 to 2018, the Ministry of Energy has awarded zero
hectares of acreage for exploration-a trend which will have most likely
continued into 2019.'
Touchstone said it expects to complete and test the Cascadura-1ST1 well
in the first quarter of 2020.
<< Back to news headlines >>
New CEO for ANSA McAL Tuesday 17th December, 2019 – Trinidad Express Newspapers
NOT YET 40, Anthony Sabga III was yesterday appointed as the ANSA
McAL Group CEO, effective January 1, 2020, according to an
announcement on the conglomerate's website.
Sabga takes over the day-today running of the group, one of the largest
in Trinidad and Tobago.
Norman Sabga served as executive chairman of the group following the
death of the founder of the company, Anthony Sabga, in May 2017.
Anthony N Sabga was Norman's father and Anthony Sabga III's
grandfather.
Andrew Sabga, Norman's brother, has been appointed to the role of
deputy chairman of the ANSA McAL board.
In the statement, ANSA McAL said: 'The group makes these changes to
align its senior leadership team and structure with its long-term strategic
vision, that will maintain competitiveness and sustainability, while
expanding and diversifying its business portfolio.
These changes will also ensure that the level of agility necessary to
embrace and respond to the business opportunities in the region and
globally reside at the most senior executive levels of the group.'
Anthony Sabga III received a BSc in economics from City University in the
United Kingdom and a Master's in International Business Administration
from Regents Business School in Britain, which he completed in 2003.
He is currently the executive chairman of ANSA McAL's beverage sector
with operations in T& T, Grenada, St Kitts and Cape Canaveral in Florida.
Before his promotion, he was directly responsible for the strategic
development of the group's IT infrastructure as well as the introduction of
the Balanced Score Card and strategic management frameworks.
For the nine months period ending September 30, 2019, the group
reported a 2.7 per cent decline in its profit after tax, which totalled $442.4
million in 2019, compared with $454.8 million. The group's revenue
increased by 3.6 per cent in the January to September 2019, compared
with the year-earlier period.
ANSA McAL has four main segments: manufacturing; packaging and
beverage; financial services and media, retail and services.
<< Back to news headlines >>
CLICO Investment Fund gains $1 Tuesday 17th December, 2019 – Trinidad Express Newspapers
OVERALL market activity resulted from trading in 18 securities of which six
advanced, three declined and nine traded firm.
Trading activity on the First Tier Market registered a volume of 161,327
shares crossing the floor of the Exchange valued at $6,141,962.10. JMMB
Group Ltd was the volume leader with 57,466 shares changing hands for a
value of $160,154.80, followed by Republic Financial Holdings Ltd with a
volume of 27,863 shares being traded for $3,650,553. Scotiabank Trinidad
and Tobago Ltd contributed 24,075 shares with a value of $1,440,838.75,
while The West Indian Tobacco Company Ltd added 14,318 shares valued
at $609,169.70.
CLICO Investment Fund registered the day's largest gain, increasing $1 to
end the day at $27. Conversely, The West Indian Tobacco Company Ltd
registered the day's largest decline, falling $0.41 to close at $42.55.
On the Mutual Fund Market 1,050 shares changed hands for a value of
$17,100. Calypso Macro Index Fund was the most active security, with a
volume of 1,000 shares valued at $15,750. Calypso Macro Index Fund
remained at $15.75. CLICO Investment Fund advanced by $1 to end at
$27. Eppley Caribbean Property Fund Ltd SCC - Development Fund
remained at $0.67. Eppley Caribbean Property Fund Ltd SCC - Value Fund
remained at $1.70. Praetorian Property Mutual Fund remained at $3.05.
The Second Tier Market did not witness any activity. Mora Ven Holdings
Ltd (Suspended) remained at $12.
<< Back to news headlines >>
VI & Airbnb ink Hotel Accommodation Tax agreement Sunday 15th December, 2019 – Virgin Islands News Online
The Virgin Islands (VI) and booking service Airbnb have official inked
agreements for the voluntary collection of the Hotel Accommodation Tax
on transient occupancy.
This comes following an April 30, 2019 Cabinet decision where property
owners who lease their homes through AirBnB are now required to pay
hotel accommodation tax.
According to a GIS release, the agreement was signed on November 20,
2019, by the Premier and Minister of Finance, Honourable Andrew A. Fahie
(R1) on behalf of the Government while International Senior Tax Manager,
Mr Alan Maher signed on behalf of Airbnb.
“Your Government views Airbnb as a valuable part of our economic
landscape and contributing positively to the economy,” Premier Fahie
said during his 2020 budget presentation on November 19, 2019.
Tourism Sector Boost
Ahead of the agreement, Governor of the Virgin Islands, Mr Augustus J. U.
Jaspert during his November 14, 2019, "Speech from the Throne,' promised
that legislation will come with the aim of boosting revenues for the tourism
sector.
"On an immediate priority basis, our Government will give the tourism
sector the attention and level of priority it deserves and focus on
strengthening the accommodation sector, bringing new hotel investment,
and supporting the marine sector," he said.
GIS has since indicated that over 2,000 guests booked accommodation
through Airbnb between July 2017 and July 2018, with an average stay of
four days. Airbnb allows property owners to lease their home spaces or
accommodations to international travellers through a mobile application
available on several platforms.
<< Back to news headlines >>
PREMIER BANKS BOASTS OF WHOPPING BUDGET SURPLUS OF $30.73 MILLION Monday 16th December, 2019 – The Anguillian
For the first time in the history of Anguilla, the Government of the island has
been able to achieve a budget surplus that has enabled both the paying
off of substantial local debt, and provided an opportunity to finance a
number of projects and other needs in the public sector.
The achievement was announced in the House of Assembly on Tuesday,
December 10, by Premier and Minister of Finance, the Honourable Mr.
Victor Banks. Among other matters, as a result of the big budget surplus,
Government is in a position to repay longstanding salary deductions to
civil servants and staff of the statutory Health Authority of Anguilla.
Premier Banks disclosed the surplus while speaking during the second
reading of the Supplementary Appropriation Bill 2019 which he moved. His
address in the House began as follows:
“Mr. Speaker, in the earlier part of this year, the House of Assembly passed
an Appropriation Bill in the amount of $208, 361, 415, in estimated
Recurrent Revenue; and we estimated that Recurrent Expenditure would
be in the amount of $213,480,000.
“When Recurrent Expenditure exceeds the anticipated revenue, it means
that you are budgeting for a deficit – meaning that what you are
budgeting for, you are not going to be able to make, and you will have a
shortfall. In this case, the shortfall that was estimated was 5,118,685.”
Premier Banks continued: “Even though we budgeted for a deficit, we are
seeing, from the performance of the budget, that we are not going to
have a deficit of 5 million dollars, but rather a surplus of 30.73 million
dollars…We have in fact earned more than we are spending…Even
though we have 30 million dollars, estimated as a surplus, there are things
we would have put off in the past that we now find ourselves in a position
to respond to.
“That 30 million dollars, we are estimating, is not sitting in the Treasury
waiting to be spent but it are funds that we can now allocate towards
commitments that we have made – especially on the repayment of debt
or obligations to public servants; obligations to medical treatment
overseas; to statutory bodies; and obligations to cutting back on arrears.
So there are a whole host of issues that can be addressed.”
Mr. Banks outlined a number of areas in which a portion of the surplus
money will be spent as follows:
The Anguilla Community College: $516,000; medical treatment overseas: $
1,720,000; Customs Duty refunds: $400,000; Government of Anguilla
deferred salaries (25% owed at the end of October 2019): $1,845,814;
Anguilla Health Authority deferred salaries: $1,623,259; Anguilla Air and
Sea Ports Authority deferred salaries; $1,011,047; Equity contribution to the
Anguilla Development Board: $1,000,000; claims against the Government
of Anguilla: $500,000; Insurance to cover Government property and new
vehicles: $1,500,000; and grants and contributions (to include payments to
the Caribbean Tourism Organisation): $600,000. These payments total
$10,716,120.
Premier Banks stated that provision was also made for supplementary
capital expenditure as follows: land acquisition for the Blowing Point Port
Development: $ 3,502,725; land acquisition for road development (legacy
items): $400,000; and IT equipment: $533,539.
Meanwhile, other large amounts of the surplus funds have been
committed to various ministries and departments across the public
service. The list showing the distributions is available on the Government of
Anguilla’s website. The allocations, when added to the above payments
as disclosed by Premier Banks, amount to the 30.73 million dollars –the
2019 budget surplus he spoke about.
The Supplementary Budget Appropriation Bill 2019 received the full
support of all members who were present at the House of Assembly sitting.
Absent were the Leader of the Opposition, Ms. Palmavon Webster and
the Second Nominated Member, Mr. Paul Harrigan.
<< Back to news headlines >>
EU Disburses Third Education Tranche of EC$12,66M to Anguilla Monday 16th December, 2019 – The Anguillian
The Government of Anguilla is a step closer in the realisation of the
objectives of its Education Development Plan, following the release of the
third grant assistance tranche of EC$12.66 million (€4.25M) under the 11th
European Development Fund (EDF) Education and Training Sector Policy
Support Programme.
The disbursement comes on the heels of a recent mission to Anguilla by EU
Head of Delegation, Ambassador Daniela Tramacere, who commended
the Anguillan authorities on the continued progress in the implementation
of its Education Policy despite the lingering challenges resulting from the
damage inflicted by hurricane Irma in 2017.
During the mission, Ambassador Tramacere visited three Education
Facilities – the Morris Vanterpool Primary School, the Orealia Kelly Primary
School, and the Valley Primary School – and witnessed first-hand the
devastating impact Hurricane Irma had on the physical infrastructure of
these schools. In some cases, a number of the school blocks had to be
demolished or completely refurbished, leading to classes having to be
accommodated in the remaining blocks or at alternate facilities.
The Ambassador applauded both the Education officials and the strong
community spirit which has ensured that despite the physical constraints
of the current teaching and learning environment so severely
compromised, there remains an unwavering commitment and positive
attitude to moving forward and bringing the situation back to some form
of normalcy in the near future. She also expressed satisfaction in the
Government as it continues to show positive progress and commitment
towards prudent Public Financial Management (PFM) and good
Budgetary Transparency reforms.
The overall expected outcome of the education reform is for all children
to be able to complete seven years of quality primary education and five
years of an appropriate, quality secondary education, regardless of any
physical or intellectual disabilities.
The EU reaffirms its strong belief that supporting education is a solid
development investment and is confident that this programme will
contribute to the reconstruction of a quality educational system in
Anguilla that will be accessible, efficient, cost-effective, affordable and –
very important – also resilient.
The EU has provided development aid to Anguilla since 1976. The overall
programme budget for the current 11th EDF intervention is approximately
EC$45 million (€14.05M) until 2021, with EC$40 million (€12.6M) earmarked
for the education and training sector as budget support, and the
remainder EC$4.5 million (€1.45M) set aside for specific technical
assistance needs. Anguilla also benefits from EU assistance channelled
through the current EDF Caribbean regional programmes that amount to
approximately EUR58M.
<< Back to news headlines >>
Caribbean Helicopters workers say they are ‘beyond frustrated’ Tuesday 17th December, 2019 – Antigua Observer
Employees contracted by Caribbean Helicopters Limited (CHL) have said
they are tired of the non-action from their employers. The diverse group of
employees, some who have been employed to CHL for more than 10
years, explained that it is now nine months since they have been last paid.
They have been venting their frustration with the entire situation at CHL for
a while and now, and yesterday they told OBSERVER media that enough
is enough.
Abuse, neglect, fraud, negligence, dishonesty are some of the terms the
workers used to describe the action – or inaction in some cases – of the
leadership of CHL, by staff who have long passed a state of
disgruntlement.
They have hired a lawyer as a group, who has been liaising with a
worker’s union on their behalf. However, according to them, this action
has not proven very fruitful, as they are still just waiting aimlessly.
The staff members also claim that they have had to seek alternate jobs to
maintain their day-to-day lives, while still being legally employed by CHL.
This has had an adverse effect on their employment, and they are unable
to accept jobs at the airport due to their CHL affiliation.
They are also very displeased with several other issues that have arisen
over the course of the past few months.
<< Back to news headlines >>
Global Ports projects a windfall of US $1.9 million for the government Monday 16th December, 2019 – Antigua Observer
Global Ports Holding (GPH) Antigua has projected 2020 tourist arrivals to
be at 788,000.
In a record year, cruise tourist arrivals to the twin-island state totalled
792,873 passengers in 2018.
Though passenger arrivals are projected down, the Head of Finance at
GPH Antigua, Nadasta Hurst, said the company is projecting a total of US
$1.97 million to go directly to the Government of Antigua and Barbuda
(GOAB) by the end of 2020.
Of the rates being charged by GPH to the expected cruise tourists, US $1
will be charged per passenger as government head tax and US $1.50 per
passenger will be charged as environmental tax.
After last week Thursday’s official handover of the St John’s port
management to GPH, a number of questions have been asked by the
port’s various stakeholders as to their place and role in its new direction.
The handover of the port management left Heritage and Redcliffe quays
store and property owners, taxi operators, vendors and the existing St
John’s Development Corporation (SJDC) staff anxiously awaiting the
fulfilment of promises made by both the GOAB and GPH.
Seeking to allay some concerns, GPH Antigua General Manager, Dona
Regis, said that, “we’ve hired 22 local residents … while we’re global,
we’re certainly a very local company”.
“So what that means is that as we expand into markets, we ensure that
we understand the local culture, the way of the life of the people. We
understand the local norms, their way of doing business and we respect
that,” she added.
The general manager admitted that the conversations with the
stakeholders are still ongoing: “Naturally… when there is change… there
are always things [outstanding] that we have to work together on. But we
have committed on both sides to be open with each other and I think
that is the platform for success.”
At last week’s handover ceremony, GPH committed a number of
promises to include paying off a 20-year-old US $21 million debt at Antigua
Commercial Bank. The general manager along with GPH Antigua’s head
of finance, Nadasta Hurst confirmed that this bond has been paid in full.
Regis and Hurst also confirmed that GPH has taken over the financing the
fifth pier berth of up to US $30 million and that it will be completed for the
summer of 2020.
“So, the building of that fifth berth that can accommodate 5000-plus
passengers per call on a year-round basis,” Regis explained, “you do the
math. You can see how we can move from 700,000 to 1.5 million
passengers.”
As it pertains to GPH’s promise to upgrade the quay areas, Hurst said. “We
have started some minor upgrades; there are cruise ships in every day as
it is the season, so we are limited to what we can do. But we will, over the
next 10 to 12 months, be spending up to US $3 million to upgrade the
Heritage Quay complex.”
<< Back to news headlines >>
Aerodromes out west getting upgrades Monday 16th December, 2019 – Jamaica Gleaner
Transport Minister Robert Montague says the Airports Authority of Jamaica
(AAJ) has undertaken upgrading work at two aerodromes in St Elizabeth
and Westmoreland as part of an initiative to improve and expand
Jamaica’s aviation industry.
Speaking at last Thursday’s ground-breaking ceremony for the extension
of the runway at the Sangster International Airport in Montego Bay,
Montague said the projected work is to take place at the Lionel Densham
Aerodrome in St Elizabeth, and the Negril Aerodrome in Westmoreland.
“We’re moving now to step up the pace with general aviation, and
therefore the AAJ has undertaken a programme of upgrading our
aerodromes, which they’ve started by installing pilot lounges in all our
aerodromes. For the Lionel Densham Aerodrome, we’re supposed to do
an overlay on the runway, and we’re putting in some restrooms and a
waiting area because we’re determined to open up the south coast,”
said Montague.
“The Negril Aerodrome is getting some attention in terms of recovering the
runway in Negril, because one-third of the Negril runway is actually under
water, and we’re putting in a firehouse and an area where searches can
be done with decency and consideration,” Montague added.
Restoration underway
Thursday’s update follows an earlier announcement in March, where
Montague indicated that restoration work would take place at the Negril
Aerodrome after two major commercial airlines expressed interest in
operating commercial flights out of Negril.
Montague also praised the runway expansion project for the Sangster
International Airport as proof of Jamaica’s adherence to aviation safety
standards. The runway will be extended from 2,662 metres to 2,940 metres
in six construction phases at a cost of US$70 million (J$9,839,158,000).
“Since the privatisation of the Sangster International Airport in 2003,
Montego Bay Jamaica Airports Limited (which operates the airport) has
undertaken significant improvement works to the third-largest airport in
the region. As the transformation of the airport into a world-class facility
continues, it’s important to ensure that the airport’s continued
compliance with local and international standards for safety and aviation
security is at its highest level,” said Montague.
The Sangster Airport runway project will also see the installation of a jet-
blast screen to prevent damage or injury from jet engines’ high-energy
exhausts.
<< Back to news headlines >>
Fly Jamaica files for bankruptcy protection Sunday 15th December, 2019 – Jamaica Gleaner
Troubled airline Fly Jamaica is seeking protection from creditors as it tries
to restructure and stay in business or explore other options, such as a sale.
That filing for bankruptcy protection with the Office of Insolvency was
done on October 29, according to Marlon Murdock, the agent for Fly
Jamaica trustee Wilfred Baghaloo.
It follows the unravelling of a nascent deal over the summer with a group
of investors seeking to acquire the airline from founder Paul Reece.
Murdock told the Financial Gleaner that Fly Jamaica is preparing a
proposal for creditors to vote on, which was preceded by a ‘Notice of
Intention’ in the press.
“The process now is that since Fly Jamaica has filed a notice of intention,
they had an initial 30 days to put together a proposal that they were
going to present to creditors, who will then vote on it so that they can
either accept or reject,” the agent said.
‘They’ve been given an extension for that initial 30 days so the new date
will be January 14, 2020,” Murdock added.
So far, Fly Jamaica has presented a list of 259 creditors, who are owed
US$21.86 million ($2.9 billion).
Murdock says the current list is not exhaustive and that the trustee is still
receiving claims from creditors not on the current roll. He is encouraging
all creditors to come forward for a clear picture of the carrier’s
indebtedness.
“What we were given by the company is a list of creditors that were in
existence on the day the company filed. What we want is for those who
are creditors to submit claims against the company, and they can do
that by emailing me,” said Murdock. He and Baghaloo work with
PricewaterhouseCoopers Jamaica.
Fly Jamaica has been grounded for just over two years. Since a plane
incident in November 2017 when the lone operational Fly Jamaica
airplane – a Boeing 757 en route to Toronto from Guyana – skidded off the
runway as the pilot attempted an emergency landing at the Cheddi
Jagan International Airport, the damaged plane has been languishing at
a remote section of the airfield.
Prospective buyers of the airline, headed by French acquisition and
diversified firm W&L SAS, initially said they planned to get the airline flying
again by September, which appeared to be a long shot, given that
approvals were needed from the Jamaica Civil Aviation Authority to
achieve that goal.
That deal is no longer in play.
Murdock says Reece contacted the team at PwC to say that the
prospective buyers were having difficulties completing the transaction,
and that Fly Jamaica’s debts were piling up in the meantime.
“They weren’t operating so there was no revenue coming in; so they
needed some time to put together a proposal,” Murdock said.
“Since they had the accident in Guyana they had a class action suit that
was about to be filed against them, so they realised that they needed the
time to get something done,” he said of the urgency.
Murdock says if things were allowed to progress, the value residing in the
company would likely continue to erode to the detriment of some
creditors, when the holdings were eventually liquidated.
“Most likely, the creditors would end up getting less than they would get
that if the company had time to put together a proposal which would
likely include finding new investors to pump some funds into the
company,” Murdock said.
“Recognising that they needed that time to put together that proposal –
and they asked us to act as trustees – our role is really to guide in helping
them to prepare the proposal and to assist them when they have to
negotiate with investors,” Murdock said.
He adds that if the airline is to fly again, it will need new capital injection.
<< Back to news headlines >>
Utility companies pay out over $34 million for service breaches Friday 13th December, 2019 – Jamaica Gleaner
Utility companies paid out over $34 million for service breaches between
July and September.
The amount was paid out as a result of breaches of the Guaranteed
Standards and actions taken on behalf of customers by the Office of
Utilities Regulation (OUR).
The data, contained in the OUR’s 2019 July – September Quarterly
Performance Report, indicate that for the period, the Jamaica Public
Service Company Limited (JPS) paid out approximately $33.4 million and
the National Water Commission (NWC) $464,760 for breaches of the
Guaranteed Standards.
The OUR says the sum of $227,432 was secured for utility customers
through action taken by its Consumer Affairs Unit.
Of this, JPS accounted for the highest share of 74%, while Columbus
Communications (Flow) and C&WJ accounted for 16% and 10%
respectively.
JPS’s compliance report on its Guaranteed Standards performance
indicates that 16,261 breaches were committed, representing a 5%
decrease in the number of breaches compared to the preceding quarter.
The OUR says these breaches attracted compensatory payments of
approximately $33.4 million, all of which were made through automatic
compensation.
The Guaranteed Standards regarding: Estimated Bills (which restricts JPS
from sending more than two consecutive estimates without a penalty);
Connection to Supply (which prescribes the time within which JPS is to
make a simple connection); and Reconnection (which requires that JPS
restores supply within 24 hours of payment of overdue amounts)
accounted for approximately 99% of breaches and payments.
During the quarter, NWC reported that it paid out $464,760 for breaches
of the Guaranteed Standards.
The NWC’s compliance report on its Guaranteed Standards performance
indicates that a total of 659 breaches were committed, which represents
a 70% increase.
These breaches had a potential pay-out of approximately $1.8 million
while actual payments amounted to $464,760.
The actual payments represented 21% of the total potential payments
and were made by way of automatic credits to the affected accounts.
The remaining 79% of potential payments not made, were for breaches
for which the required claim forms were not submitted.
The standards with the highest incidents of breaches for the NWC were:
Access (which requires that new service connections are made within 10
working days); Meter Installation (which stipulates that meters should be
installed within 30 working days upon request) and Meter Reading (which
stipulates that meters are to be repaired/replaced within 20 working days
of identified or reported defects).
These three standards represented 79% of total breaches and 78% of
potential payments.
<< Back to news headlines >>
JSE Market Summary Tuesday 17th December, 2019 – Jamaica Gleaner
In Monday ‘s trading session the following reflect the movement of the JSE
Indices:
The JSE Combined Index advanced by 2,246.83 points (0.45%) to close at
501,243.15.
The JSE Index advanced by 2,373.62 points (0.47%) to close at 504,792.38.
The JSE All Jamaican Composite Index advanced by 2,789.02 points
(0.51%) to close at 554,585.11.
The JSE Select Index advanced by 59.84 points (0.46%) to close at
13,033.54.
The JSE Cross Listed Index declined by 8.00 points (8.38%) to close at 87.45.
The Junior Market Index advanced by 6.03 points (0.18%) to close at
3,412.43.
The JSE USD Equities Index advanced by 5.09 points (2.34%) to close at
222.51.
The JSE Financial Index advanced by 0.74 points (0.54%) to close at
136.67.
The JSE Manufacturing & Distribution Index advanced by 0.16 points
(0.16%) to close at 97.79.
Overall market activity resulted from trading in 93 stocks of which 29
advanced, 28 declined and 36 traded firm.
Market volume amounted to 59,185,912 units valued at over
$2,189,584,992.88. MAILPAC GROUP LIMITED was the volume leader with
33,220,659 units (56.13%) followed by NCB FINANCIAL GROUP LIMITED with
8,065,181 units (13.63%) and CARIBBEAN CEMENT COMPANY LTD. with
5,257,837 units (8.88%).
<< Back to news headlines >>
Trelawny residents benefiting from major JPS work Sunday 15th December, 2019 – Jamaica Observer
Residents of Trelawny are now benefiting from major infrastructural work
done on the Jamaica Public Service (JPS) network in the parish, the
company has said.
Since the start of the year, 71 poles have been replaced while 639 poles
have been rehabilitated. The company has also changed out 912 pieces
of equipment and installed 197 lightning arrestors.
The announcement was made by president and CEO of JPS, Emanuel
DaRosa, at a town hall meeting last Thursday evening in Falmouth. The
meeting was hosted by the Ministry of Local Government and Community
Development, in collaboration with the Office of Disaster Preparedness
and Emergency Management.
Pole rehabilitation is a process which sees ageing poles being fortified with
steel and iron reinforcements, to give them another 15 to 20 years of life.
The process is highly cost effective and ensures that service delivery will
not be compromised by weakened or substandard poles.
Communities benefiting from the 639 pole rehabilitation exercise include
Falmouth, Ulster Spring, Deeside, Jackson Town, Alpha, Greenwood and
Hammersmith.
Lightning arrestors, a critical element in the protection of the JPS network,
have been installed since the start of the year in Jackson Town, Sherwood,
Greenwood, Fontabel and Reserve in the parish. Lightning arrestors assist
in mitigating the damaging effects of lightning storms on the network, thus
reducing the number of outages due to this weather phenomenon.
The company said that it remains committed to ongoing improvements in
the network and customer service, as it seeks to deliver the highest
standard of customer care across the island.
<< Back to news headlines >>
Barbados passes another IMF test, gets access to more funds Monday 16th December, 2019 – Nation News
Barbados has passed its latest International Monetary Fund (IMF) test with
flying colours, in the process impressing the directors of the fund, and
opening up for itself access to almost $100 million from the Washington-
based institution.
However, it was the comment of the directors of the IMF as they reviewed
the progress on the island’s Barbados Economic Recovery and
Transformation (BERT) programme that was most heartening.
According to the directors, in spite of its limited technical capacity,
Barbados has made impressive progress towards achieving fiscal and
debt sustainability, rebuilding reserves, reducing uncertainty towards
generating growth.
This development was explained by Dr Kevin Greenidge, Government’s
economic advisor on loan from the IMF, who noted that today the
Executive Board of the IMF completed the second review of our BERT
programme which is supported by an IMF Extended Fund Facility (EFF).
The completion of this review allows us to draw the equivalent of SDR 35
million (about US$98 million).
“This passing of the second review reflects Barbados meeting all its targets
under the BERT programme and in some instances, with a wide margin.
There were lots of praise from the Directors at the Board....
“Of course, there is significant work to be done, and we remain resolved
to stay the course and continue meeting our commitments under the EFF.
“Passing yet another IMF review, completing the debt restructuring and
having our credit ratings upgraded are all sending an important message
to the world – that Barbados is back; we are serious about our reforms
and about transforming the economy,” Greenidge said.
<< Back to news headlines >>
ANSA takes over Trident Monday 16th December, 2019 – Barbados Today
After months of negotiations, ANSA McAL (Barbados Limited) has
purchased the shares of Trident Insurance Company Limited.
Chairman of ANSA McAL Andrew N. Sagba made the announcement in
a statement issued today, saying the Trinidad and Tobago conglomerate
was delighted to welcome Trident Insurance into the wider ANSA McAL
family which comprises 73 companies in more than eight countries.
It is not clear whether the sale of Trident Insurance will affect the staff
complement there. Sabga only offered assurances to policyholders in the
statement, saying “Trident insurance would continue to conduct business
as usual”.
Back in June, David Alleyne, General Manager of Brydens Insurance,
which is a branch of the ANSA McAL-owned Tatil Insurance Company in
Trinidad and Tobago, told Barbados TODAY, that the companies had
come to an agreement to join forces to create a stronger, focused entity.
At today’s signing, President and CEO of Trident Insurance Algernon Algie
Leacock said the resources of the ANSA McAL conglomerate would
enable Trident Insurance “to better support the evolving needs of our
policyholders, and to remain a strong player in this fast-paced and
aggressive financial environment”.
“We are therefore extremely pleased to accept this offer,” he added.
Leacock also revealed that the deal paves the way for the Leacock
family and Group to pursue “other business opportunities which are a
better strategic fit to their existing businesses and future expansion plans”.
The over 39-year-old Trident Insurance Company offers a range of
products including property, motor, travel, liability and marine insurance. It
is in the top ten of insurers in Barbados, based on gross written premiums.
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New panel in place for credit union mediation Monday 16th December, 2019 – Barbados Today
Members of co-operative societies now have a new arbitration body to
address their claims and disputes.
Minister of Small Business Entrepreneurship and Commerce Dwight
Sutherland announced at his Warrens Office today that the Co-operative
Societies Appeals Tribunal under the Co-operative Societies Act Cap.378A
has been launched and will be made up of three members.
He introduced veteran attorney-at-law Anthony Reece as Chairman,
active member of the Credit Union Movement Hally Haynes as Deputy
Chairman, while Operations Manager of the Barbados Teacher’s Co-
operative Credit Union Limited Davidson Ishmael will serve as a member.
Sutherland, who indicated that the tribunal will have jurisdiction to hear
appeals against the decision of the Registrar of Co-operatives Brent
Gittens or an arbitrator, explained that the department regulates and
supervises 25 non-financial co-operatives and also has oversight of 39
friendly societies co-operators.
“Within all businesses you will have challenges. The tribunal is here as a key
cog in building out co-operatives successfully to ensure that any
challenges will be dealt with outside the court of law. Members within the
co-operatives from time to time may have challenges and of course Mr
Gittens, once he comes up with a decision those members within the co-
operatives may not agree with the decision of the Registrar of the Co-
operatives and they have a right to go to arbitration. That body is the co-
operatives tribunal,” he said.
“We have making up the tribunal experienced persons who the
Government feels are fitting to lead any arbitration or any dispute that will
arise from time to time among the members of the co-operatives. And I
want to thank these members publicly for accepting the offer on behalf
of the Cabinet of Barbados,” Sutherland added.
The Minister said the model was critical to Government’s mandate to
building out the economy.
He said the co-operative business model has proven that it was a great
platform for creating wealth that was owned and controlled by the
masses. This, he added, is demonstrated by the existence of financial co-
operatives with an estimated asset base of $2.4 billion, a membership
base of over 200,000 and well over 500 employees.
“Since this Government came to office, having seen six non-financial
credit unions formed, I am confident that the whole people centred
approach to wealth creation will be managed effectively and efficiently
by these members, both the registrar and the tribunal,” he said.
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