89
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▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO)
▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-
▪ Government of Barbados’s local currency rating upgraded to CariBB
▪ PanJam Investment Limited’s initial rating assigned at CariBBB+
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+
▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+
▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+
▪ The Pegasus Hotels of Guyana Limited’s rating upgraded to CariBBB
▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+
▪ Home Mortgage Bank’s rating reaffirmed at CariA
▪ NCB Cayman Limited’s rating reaffirmed at CariA
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REGIONAL
Trinidad and Tobago
ANSA bids for Indian bank
ANSA McAL, Trinidad and Tobago's largest conglomerate by assets and
profits, has put in a bid to acquire the T& T operations of the Bank of
Baroda, which is owned by the government of India.
Cigarette prices going up tomorrow
PRICES of some locally manufactured cigarettes are going up from
tomorrow, according to retailers of the product who were informed by the
country's sole manufacturer, the West Indian Tobacco Company (WITCO).
Sagicor adds 8.5%
ACTIVITY on the first-tier market decreased by 30.28 per cent on a total of
1,346,159 shares crossing the floor last week compared to 1,930,747 shares
traded in the previous week.
Ministry recruits 33 specialist doctors from Cuba to tackle shortage
THE Ministry of Health has recruited 33 specialist doctors from Cuba in a
bid to address the shortage of suitably qualified healthcare professionals
in the public health system.
Barbados
PM promises to update country soon on external debt situation
Prime Minister Mia Mottley today promised that she will update the
country soon about the Government’s external debt restructuring plan.
More layoffs to come, PM Mottley says
Workers at State-owned enterprises are being put on notice that there are
still more layoffs to come as Government seeks to manage a huge wage
bill.
IMF, World Bank ‘reviewing VAT, other taxes’
Government has asked the International Monetary Fund and the World
Bank to helps reforming its indirect tax system, Drector of Finance and
Planning Ian Carrington has disclosed.
Jamaica
BOJ Conducts Third Forex Flash Sale In A Week
The Bank of Jamaica, BOJ, intervened in the market again on
Wednesday, the third time during the past week, by selling US$20 million to
authorised dealers and cambios in continued efforts to curb the effects of
daily volatility in the foreign exchange market in recent weeks.
NCB Reports Big Gains But Rare Profit Dip
NCB Financial Group posted a rare decline in net profit for the December
quarter, due to a restated one-off gain from an acquisition booked in the
previous period.
CanaQuest signs agreement with Jamaican Medical Cannabis
Corporation
CanaQuest Medical Corp, a developer of cannabis- infused health
products and pharmaceuticals, has signed a preliminary agreement with
Jamaican Medical Cannabis Corporation (JMCC) to provide processing,
packaging, warehousing and global distribution services for CanaQuest in
Jamaica.
Guyana
Guyana tops list of countries filing cases at CCJ
Guyana has filed more cases with the Caribbean Court of Justice than
any other country between 2017 and 2018.
Exchange rate for US dollar climbs
Something is happening to the US dollar on the local market.
Barama repositions itself after scaling down operations
Minister of Finance Winston Jordan says the government will be examining
the provision of more concessions for the local manufacturing industry.
The Bahamas
Govt Admits Work Left on Vat Refunds
The government does not have the VAT refund process “down pat like we
should”, a top official has admitted, although “some headway” was
being made.
Antigua and Barbuda
Owners notified of compulsory acquisition of land to complete roadworks
The owners of land along Friars Hill Road and Sir George Walter Highway
have been informed, by way of written notices that sections of their
property could be acquired to facilitate the government’s road
infrastructure rehabilitation project.
Dominica
Head of EU-LAC Foundation visits Dominica
Executive Director of the European Union–Latin America and Caribbean
Foundation (EU-LAC Foundation) Paola Amadei, is in Dominica on her first
official visit.
The Dominican Republic
All fuel prices climb, except natural gas
The Industry and Commerce Ministry on Fri. posted the fuel prices for the
week form Feb. 9 to 16, when premium gasoline will cost RD$214.60 per
gallon, or RD$0.20 more and regular will cost RD$198.60, RD$1.20 higher
per gallon.
St. Lucia
Labour minister Stephenson King said unemployment further reduced:
“More citizens working”
Under the heading “More Citizens Now Working”, Labour Minister
Stephenson King has announced a reduction in unemployment over the
last quarter.
St. Vincent and the Grenadines
Camillo outlines 10 principles for jobs, growth, sustainable dev’t in 2019
Minister of Finance, Camillo Gonsalves used the 2019 Budget to outline
what he said are “10 principles for jobs, growth and transformative
sustainable development” in St. Vincent and the Grenadines (SVG).
Belize
GAS PRICES ON THE RISE AGAIN
Belizeans were recently celebrating after all gas prices fell below $10 on
January 17, but now those prices are on the rise again. Effective today,
February 6, diesel and kerosene prices will rise 66 cents and 63 cents
respectively.
Costa Rica
External Bonds and No Strikes Key to Growth
The growth of the Costa Rican economy will be 3.2% in 2019 and 3.0% in
2020 – levels higher than the estimated increase for 2018, of 2.7% -,
according to the Macroeconomic Program 2019-2020 of the Central
Bank.
Cuba
Investors in Cuba wary of impact from U.S. threats, Venezuela crisis
Some foreign businesses in Cuba are scrambling to defend their interests
while others are rethinking the risk as the Trump administration bears down
on Venezuela and Cuba, according to a dozen experts, diplomats and
businessmen.
Panama
Panama growth for 2019 projected at 5,5% as deficit hits $1.339 billion
Panama’s government said on Friday, February 8 it that the economy
grew by 4.2% in 2018, a year in which the fiscal deficit hit $1,339 billion 2%
of gross domestic product (GDP).
Venezuela
Venezuela open to barter trade with India to boost oil sales
Venezuela is open to barter-like payments from India to boost oil sales to
the world’s third-biggest oil consumer, the South American country’s oil
minister Manuel Quevedu said on Monday.
Other Regional
Scotia sells off business in El Salvador
CANADA'S Scotiabank has reached an agreement to sell its El Salvador
banking and insurance business to Imperia Intercontinental in order to
focus on other markets, the bank said on Friday.
INTERNATIONAL
United States
PG&E to nominate five directors at May shareholder meeting
PG&E Corp, the California utility which filed for bankruptcy last month,
expects to nominate five of its current directors for re-election at its annual
shareholder meeting, it said on Monday.
With Iran squeezed out, U.S. oil takes on new rivals in Europe
When the global oil trading industry gathered for its biggest annual
meeting in Asia in September last year, U.S. oil producing companies
came well prepared.
BofA appoints new head of equities in global markets South Africa unit
Bank of America Corp has appointed a new head of equities within its
global markets South Africa unit, a source familiar with the matter told
Reuters.
Google extends chip-making efforts to design hub Bengaluru
Alphabet Inc’s Google has hired more than a dozen microchip engineers
in Bengaluru, India, in recent months and plans to rapidly add more,
according to LinkedIn profiles, job postings and two industry executives, as
the search firm expands its program to design the guts of its devices
internally.
United Kingdom
UK economy slowest since 2012, as Brexit and global worries weigh
Britain’s economy slowed sharply in late 2018, pushing full-year growth to
its weakest in six years as Brexit worries hammered investment by
companies and the global economic slowdown weighed on trade,
official data showed on Monday.
United Kingdom Continued
British trade minister says Brexit is not the only reason for GDP slowdown
Britain’s economic slowdown should not be blamed entirely on Brexit,
British Trade Minister Liam Fox said on Monday after data showed the
economy last year grew at its slowest since 2012.
British PM May to make Brexit statement on Tuesday
British Prime Minister Theresa May will make a statement on Tuesday to
update lawmakers on her talks to win changes to the Brexit deal, her
spokesman said on Monday, before parliament votes on her next steps.
UK's May rejects pivot toward Brexit customs union compromise
British Prime Minister Theresa May has rejected the idea of targeting a
customs union with the European Union, pouring cold water on hopes
from some that she could shift her Brexit policy to win over the opposition
Labour Party.
Europe
EU begins process to hit Cambodia's with trade sanctions
The European Union started an 18-month process on Monday that could
lead to the suspension of Cambodia’s duty-free trade access over its
record on human rights and democracy.
European shares bounce from one-week low as trade talks resume
Gains in heavyweight miners and banks helped European shares recover
on Monday as investors turned their focus to the start of a new round of
trade talks between Beijing and Washington.
Bank of France sees French first-quarter economic growth at 0.4 percent
France is expected to have first quarter economic growth of 0.4 percent,
the Bank of France said in its monthly business survey on Monday, as the
euro zone’s second-biggest economy grapples with the impact to
business from anti-government protests.
China
China Lunar New Year retail sales rise, but pace slowest in years
Sales by China’s retail businesses during the Lunar New Year holiday rose
8.5 percent from a year earlier, pushing up consumer stocks on Monday,
but a cooler pace of growth added to evidence the economy is slowing.
China upbeat on U.S. trade talks, but South China Sea tensions weigh
China struck an upbeat note on Monday as trade talks resumed with the
United States, but also expressed anger at a U.S. Navy mission through the
disputed South China Sea, casting a shadow over the prospect for
improved Beijing-Washington ties.
China will spur banks to raise capital: state TV
China’s state council, or cabinet, said on Monday it would adopt
measures to encourage commercial banks to replenish capital through
various channels and push funds to participate in capital-raising activity,
state television said.
Global
Oil prices steady, OPEC cuts countered by slow progress in trade talks
Oil prices were steady on Monday as support from OPEC-led supply
restraint was countered by an uptick in U.S. drilling and concerns about
demand due to the slow progress in U.S.-Chinese trade talks.
Dollar rises on bleak outlook for U.S.-China trade talks
The dollar rose on Monday as concerns grew that U.S.-China talks this
week would not heal a rift over trade between the world’s largest
economies.
Qatar revamps investment strategy after Kushner building bailout
When news emerged that Qatar may have unwittingly helped bail out a
New York skyscraper owned by the family of Jared Kushner, Donald
Trump’s son-in-law, eyebrows were raised in Doha.
PG&E to nominate five directors at May shareholder meeting Monday 11th February, 2019 – Reuters
PG&E Corp, the California utility which filed for bankruptcy last month,
expects to nominate five of its current directors for re-election at its annual
shareholder meeting, it said on Monday.
PG&E faces intense scrutiny from regulators and investors for its role in
sparking more than a dozen wildfires over the past two years.
In its bankruptcy filing, the power provider cited anticipated liabilities and
the possibility that its equipment set off November’s deadly Camp Fire,
which destroyed the Northern California town of Paradise and killed 86
people.
Last month, BlueMountain Capital Management LLC, which owns about 2
percent of PG&E, said it was preparing a challenge to the embattled
utility owner’s board, arguing its plan to file for bankruptcy was harming
investors.
“We fully understand that PG&E must re-earn trust and credibility with its
customers, regulators, the communities it serves and all of its
stakeholders,” PG&E said in a statement on Monday.
The board was working to identify candidates who would improve the
board’s expertise in safety, operations and other critical areas, it added.
The company’s shareholder meeting is scheduled for May 21.
BlueMountain did not immediately respond to a request for comment.
<< Back to news headlines >>
With Iran squeezed out, U.S. oil takes on new rivals in Europe Monday 11th February, 2019 – Reuters
When the global oil trading industry gathered for its biggest annual
meeting in Asia in September last year, U.S. oil producing companies
came well prepared.
U.S. giant Exxon Mobil and European rival Royal Dutch/Shell prepared
brochures for oil buyers detailing various U.S. crude grades and why they
were suitable to replace part of Asia’s long-standing supplies from the
Middle East, Africa and Russia.
As the oil industry gathers in London this month for the annual IP Week, U.S.
crude producers may have every reason to toast the success of their
campaign in Europe, as well as Asia.
Only a few years ago, before the hydro-fracking and shale revolution
overturned the economics of U.S. oil production, the United States was the
world’s largest oil importer by far and prohibited exports of oil by law.
Now shipments of U.S. crude into Europe have just hit a new record.
January imports were 630,000 barrels per day, still - behind Russia and Iraq
but above other OPEC producers including Nigeria and Libya.
Higher U.S. crude exports have been helped by lower supplies of Iranian
and Venezuelan crude, which Washington has put under sanctions,
scaring buyers across the world.
In the whole of 2018, U.S. supplies to Europe doubled to 430,000 bpd,
according to Refinitiv Eikon flows data. That represented 6 percent of
overall imports or equal to the levels of Iranian oil imports to Europe before
the United States imposed fresh sanctions on Tehran.
“U.S. crude is a real headache. It puts a lot of pressure on regional light
grades. In fact, prices for all grades are affected because it is such a
significant extra supply,” said a trader with a European trader selling
Russian oil.
Pressure will likely only increase as for 2019 U.S. crude oil production is
expected to average 12.06 million bpd, up 1.18 million bpd from last year,
according to U.S. government.
Future predictions say the United States could produce as much as 15
million bpd of crude and up to 20 million bpd of total oil liquids, giving it
complete self-sufficiency as it would fully cover its consumption of 18-19
million bpd.
Booming U.S. production has prompted OPEC and major non-OPEC
producers like Russia to slash output by 3-4 percent since 2017 to prop up
prices. The pact has helped double prices to $60 per barrel but at the
expense of a market share loss to U.S. firms.
“Welcome to the free market,” said a U.S.-based executive of an
international trading firm. “Local producers either need to drop their
pricing to compete or find other markets”.
Competition is particularly acute in northwest Europe, where Britain and
the Netherlands imported 6.5 and 5.1 million tonnes of U.S. crude in 2018
respectively.
BP, Litasco, Equinor, Total and ExxonMobil were among the main buyers in
the Baltic replacing North Sea barrels with U.S. grades, traders say.
“WTI is the new dated Brent,” said a senior crude trader referring to the U.S
and European benchmarks.
BP takes U.S. oil to its Gelsenkirchen refinery in Germany while Poland’s
PKN Orlen said in January it would cut Russia’s Urals purchases from
Kremlin oil major Rosneft by 30 percent and partially replace it with U.S.
barrels. In Britain, the main U.S. oil buyers are Essar Oil and Exxon Mobil,
traders said.
In the Mediterranean, buyers of U.S. barrels - Italy, Spain, France - tend to
use them to replace light Caspian CPC Blend, Russia’s Urals and Iranian
oil, traders said.
Greece’s Hellenic Petroleum added WTI to its list of preferred crude
options alongside Urals and CPC as did Turkey’s Tupras. In Italy, U.S. oil
flows to Kuwait Petroleum’s Milazzo refinery and the Swiss Varo Energy’s
plant.
WTI was by far the most popular U.S. grade among European buyers in
2018, followed by Midland Eagle Ford, Bakken and Mars.
As the world moves to tighter marine fuel regulations, which will increase
demand for light barrels, demand for U.S. oil - which is predominantly light
- will only rise.
“I expect U.S. crude to become even more popular in Europe. It seems
that whatever is happening to oil markets these days, the U.S. benefits,”
said a trader with large European major.
<< Back to news headlines >>
BofA appoints new head of equities in global markets South Africa unit Monday 11th February, 2019 – Reuters
Bank of America Corp has appointed a new head of equities within its
global markets South Africa unit, a source familiar with the matter told
Reuters.
Alec Schoeman, currently EMEA sales trader at Investec, according to his
LinkedIn profile, will join Bank of America in Johannesburg in early March,
the source said.
In his new role, Schoeman will report to Nicholas Egerton, head of EMEA
equities trading, and Richard Gush, country executive for South Africa, the
source added.
<< Back to news headlines >>
UK economy slowest since 2012, as Brexit and global worries weigh Monday 11th February, 2019 – Reuters
Britain’s economy slowed sharply in late 2018, pushing full-year growth to
its weakest in six years as Brexit worries hammered investment by
companies and the global economic slowdown weighed on trade,
official data showed on Monday.
The pace of economic growth fell to a quarterly rate of 0.2 percent
between October and December from 0.6 percent in the previous
quarter, in line with forecasts in a Reuters poll, while output in December
alone dropped by the most since 2016.
“The UK economy lost its summer exuberance in the final months of 2018,
and there are signs of further chill winds ahead,” economist Tej Parikh at
the Institute of Directors said.
Sterling fell by a third of a cent to below $1.29.
For 2018 as a whole, growth dropped to its lowest since 2012 at 1.4
percent, down from 1.8 percent in 2017.
Exports suffered from global weakness and consumers and businesses
grew increasingly concerned about the lack of a plan for when Britain is
due to leave the European Union on March 29.
Prime Minister Theresa May has so far failed to win parliament’s backing
for the plan she agreed with Brussels to avoid reimposing checks on goods
exported from Britain.
Major economies around the world also slowed in late 2018, due in part to
trade tensions between the United States and China, while Brexit is an
added challenge for Britain.
Last week the Bank of England chopped its forecast for growth this year
by 0.5 percentage points to 1.2 percent, which would be the weakest
year since the 2009 recession.
Monday’s data showed net trade lopped more than 0.1 percentage
points from the fourth-quarter growth rate. Falling business investment did
similar damage.
“GDP slowed in the last three months of the year with the manufacturing
of cars and steel products seeing steep falls and construction also
declining,” Office for National Statistics statistician Rob Kent-Smith said.
In December alone, the economy contracted by 0.4 percent, the biggest
fall since March 2016.
Finance minister Philip Hammond said the data showed the economy
remained “fundamentally strong” and that public-sector forecasters did
not foresee a recession.
Business investment dropped 3.7 percent in the fourth quarter compared
with a year earlier, the biggest fall since the first three months of 2010,
when Britain was emerging from recession. Investment has contracted for
four consecutive quarters, the longest run since the third quarter of 2009.
Household spending - which offered an unexpectedly strong boost to
growth in mid-2018 - remained resilient, up 1.9 percent on a year ago, as
did government spending.
Overall, business investment has stalled since June 2016’s referendum,
which the BoE blames for stagnating economic productivity.
The BoE expects business and housing investment to fall this year, and for
export growth to halve.
<< Back to news headlines >>
British trade minister says Brexit is not the only reason for GDP slowdown Monday 11th February, 2019 – Reuters
Britain’s economic slowdown should not be blamed entirely on Brexit,
British Trade Minister Liam Fox said on Monday after data showed the
economy last year grew at its slowest since 2012.
“Clearly there are those who believe that Brexit is the only economic
factor applying to the UK economy. I think you’ll find that the predicted
slowdown in a number of European economies is not disconnected from
the slowdown, for example, in China,” Fox told a news conference in the
Swiss capital.
“The idea that Brexit is the only factor affecting the global economy is just
to miss the point,” he said.
With just six weeks to go before Britain’s scheduled departure from the
European Union on March 29, Fox dismissed the chances of another
popular vote that could overturn Brexit and also dismissed ideas put
forward by opposition leader Jeremy Corbyn.
“The chances of having a second referendum are as close to nil as I could
imagine,” he said.
He said the ideas put forward by Corbyn were “not workable”, because it
was impossible to subscribe to his proposal to have a customs union with
the EU while also influencing EU policy.
“To pretend that you could do so is a dangerous delusion,” Fox said.
Fox was in Switzerland to sign a continuity trade deal with Swiss Economy
Minister Guy Parmelin, to ensure trading relations can continue with as
little disruption as possible if Britain leaves the European Union on March 29
without a deal.
About 12 percent of Britain’s trade was currently covered by EU free trade
deals, and Switzerland accounted for about a fifth of that, he said.
Fox had previously said Britain would be able to roll over all of the EU’s
current trade deals, but so far he has only concluded agreements with
Chile, the Faroe Islands and Switzerland.
“We are confident that we will be able to maintain a very high proportion
of that continuity of trade. Of course it’s always dependent on other
partners wanting to retain that continuity too.”
<< Back to news headlines >>
British PM May to make Brexit statement on Tuesday Monday 11th February, 2019 – Reuters
British Prime Minister Theresa May will make a statement on Tuesday to
update lawmakers on her talks to win changes to the Brexit deal, her
spokesman said on Monday, before parliament votes on her next steps.
“The PM will be making a statement to the House (of Commons) tomorrow
and that will be an update on Brexit talks and is in advance of the debate
taking place on Thursday,” he told reporters.
<< Back to news headlines >>
UK's May rejects pivot toward Brexit customs union compromise Monday 11th February, 2019 – Reuters
British Prime Minister Theresa May has rejected the idea of targeting a
customs union with the European Union, pouring cold water on hopes
from some that she could shift her Brexit policy to win over the opposition
Labour Party.
Britain is due to leave the EU on March 29 but has yet to find a deal which
is acceptable to both Brussels and lawmakers at home, raising the
prospect of a disorderly exit that could damage the world’s fifth largest
economy.
Brexit has divided Britain at every level from voters to cabinet, and raised
fears internationally that it will weaken the West. Brexit supporters hail it as
casting off a failing German-led project.
Last week, Labour leader Jeremy Corbyn set out the conditions under
which he would instruct his party to support an exit deal in parliament.
Foremost was a demand that May seek a “permanent and
comprehensive UK-wide customs union”.
The EU has urged May to grasp Labour’s compromise offer rather than
press ahead with her preferred option of getting her own divided party
onside by renegotiating a clause in the exit agreement relating to the
Northern Irish border.
But May’s office published her reply to Corbyn late on Sunday, showing
little appetite for a U-turn which would risk splitting her fractious party by
ruling out the scope for Britain to strike its own trade deals around the
world.
“I am not clear why you believe it would be preferable to seek a say in
future EU trade deals rather than the ability to strike our own deal?” May
wrote in a three-page letter.
May and her government have repeatedly said membership of a customs
union would prevent it having an independent trade policy - something
they have promoted as one of the main economic benefits of leaving the
EU.
Although May welcomed the prospect of future talks with Corbyn to try
and find a compromise, the letter gave no ground on their central point
of disagreement.
That leaves May battling to persuade a reluctant EU to look again at the
Irish backstop - a fallback policy designed to prevent the resurrection of a
hard border in Ireland if talks to find a long-term trade arrangement fail.
Brexit minister Stephen Barclay will meet EU negotiator Michel Barnier on
Monday ahead of a crunch moment in parliament on Thursday, when
lawmakers will try to force May to change course or give up control of the
exit process.
May will promise lawmakers a second opportunity to influence the Brexit
talks later in the month in a bid to stave off any rebellion from within her
own party by those who fear Britain could end up leaving without a deal.
<< Back to news headlines >>
Google extends chip-making efforts to design hub Bengaluru Monday 11th February, 2019 – Reuters
Alphabet Inc’s Google has hired more than a dozen microchip engineers
in Bengaluru, India, in recent months and plans to rapidly add more,
according to LinkedIn profiles, job postings and two industry executives, as
the search firm expands its program to design the guts of its devices
internally.
The Bengaluru site, which has not been previously reported, makes
Google the first among the handful of big internet platform companies
developing their own chips to establish a team for those efforts in what
has become a leading hub for semiconductor design over the last two
decades.
Google declined to comment on the hires.
Jim McGregor, who follows the semiconductor industry for Tirias Research,
said since most traditional chipmakers long have had large presences in
Bengaluru, it made sense for the industry’s new players to start following to
find experts.
“Everyone tries to keep things close to home when starting out, but when
you reach a certain level of success you have to expand out,” McGregor
said.
Since 2014, Google has designed computer server chips for its data
centers and an image processing chip for its Pixel smartphones. Its aim is
to create more powerful and efficient devices by customizing key
components that traditionally came from firms such as Intel Corp.
Amazon.com Inc, Microsoft Corp, Apple Inc and Facebook Inc each
have launched similar chip design efforts, which could help them cut
costs, reduce reliance on vendors and keep pace in building attractive
products.
In Bengaluru, Google has hired at least 16 engineering veterans and four
talent recruiters for its “gChips” team from traditional chipmakers such as
Intel, Qualcomm Inc, Broadcom Inc and Nvidia Corp, according to a
review of LinkedIn profiles.
Rajat Bhargava describes himself on LinkedIn as Google’s “silicon site
lead” in Bengaluru, saying he joined last May after a decade at
Broadcom and a year at Intel.
His staff is likely working with Google’s existing chips team in Silicon Valley
to fine-tune and test design ideas before shipping final ones off to
manufacturers, said two industry executives familiar with Google’s plans.
One executive said the team could grow to 80 people by year’s end.
Google had 13 job postings for roles related to chips in Bengaluru,
according to a recent check of the company’s careers website.
Google sells smart speakers, routers and home security devices that all
could benefit from chips that analyze voice commands and videos better
and faster.
Microsoft and Facebook so far have concentrated chip-related hiring in
the United States, according to current job postings. Amazon has an
overseas presence in Tel Aviv.
<< Back to news headlines >>
Oil prices steady, OPEC cuts countered by slow progress in trade talks Monday 11th February, 2019 – Reuters
Oil prices were steady on Monday as support from OPEC-led supply
restraint was countered by an uptick in U.S. drilling and concerns about
demand due to the slow progress in U.S.-Chinese trade talks.
Benchmark Brent oil was little changed, up 3 cents at $62.13 a barrel at
0945 GMT. U.S. West Texas Intermediate (WTI) crude slipped 27 cent to
$52.45.
“Oil prices are still trying to figure out what lead to follow. On the one
hand, there is the OPEC+ cut story, now coupled with increasing issues
around Venezuelan supply”, Vienna-based consultancy JBC Energy said.
“At the same time, it has to be argued that a lot of the economic data
that has been released over the last few days has really not been too
encouraging, and U.S.-Chinese trade talks are also seemingly not
progressing very fast.”
Energy firms in the United States last week increased the number of oil rigs
operating for the second time in three weeks, a weekly report by Baker
Hughes said on Friday.
Companies added seven oil rigs in the week to Feb. 8, bringing the total
to 854, pointing to a further rise in U.S. crude production, which already
stands at a record 11.9 million bpd.
WTI prices were also weighed down by the closure of a 120,000-barrels-
per-day (bpd) crude distillation unit (CDU) at Phillips 66’s Wood River,
Illinois, refinery following a fire on Sunday.
The Organization of the Petroleum Exporting Countries and its allies,
including Russia, a group known as OPEC+, have reined in output to
prevent a supply glut.
The deal, effective from January, aims to cut 1.2 million bpd until the end
of June, in a move producers and many analysts expect to help balance
supply and demand in 2019.
OPEC and its allies meet on April 17 and 18 in Vienna to review the
agreement.
U.S. sanctions on Venezuela, along with older sanctions on fellow OPEC
member Iran, have also prevented crude prices from falling further.
But economic concerns still weigh on crude prices.
Trade talks between Washington and Beijing resume this week with a
delegation of U.S. officials traveling to China for the next round of
negotiations. The United States has threatened to increase tariffs already
imposed on goods from China on March 1 if the trade talks do not
produce an agreement.
<< Back to news headlines >>
Dollar rises on bleak outlook for U.S.-China trade talks Monday 11th February, 2019 – Reuters
The dollar rose on Monday as concerns grew that U.S.-China talks this
week would not heal a rift over trade between the world’s largest
economies.
The greenback is being lifted by its safe-haven appeal as investors,
worried about a sharp global economic slowdown, pile into the world’s
most liquid currency.
It is headed for an eighth consecutive day of gains.
U.S. negotiators this week will press China to reform how it treats U.S.
companies’ intellectual property.
The high-level talks in Beijing are a leading focus for investors, many of
whom see little prospect for a trade deal and instead expect an extension
of the March 1 deadline for deciding whether to increase tariffs.
Emerging market and China-sensitive currencies such as the Australian
dollar are most likely to be affected by developments in the trade dispute
this week.
The strength in the dollar has emerged despite the Federal Reserve striking
a cautious tone at its policy meeting in January.
“The U.S. currency is currently in demand as a safe haven. This is reflected
in the fact that the Swiss franc and the Japanese yen – also typical safe
haven currencies – have been able to appreciate in conjunction with the
dollar since the start of the month,” said Thu Lan Nguyen, an FX strategist
at Commerzbank in Germany.
The dollar index, a gauge of its value versus six major peers, was
marginally higher at 96.74.
The Swiss franc was up 0.1 percent at 1.0006.
Trump has vowed to increase U.S. tariffs on $200 billion worth of Chinese
imports to 25 percent from 10 percent if the two sides cannot reach a
deal.
On Monday morning, when China markets reopened after a one-week
holiday break, the dollar was 0.5 percent higher versus the yuan at 6.7753
while the offshore yuan was relatively unchanged at 6.7808.
Philip Wee, currency strategist at DBS, expects the yuan to remain around
6.80 until there’s more clarity on how the U.S.-Sino trade dispute plays out.
The euro was a touch lower versus the greenback at $1.1322 while the
Aussie was 0.1 percent higher at $0.7096, after a disastrous week in which
it lost 2.2 percent.
The euro came under pressure as core European government debt yields
touched their lowest in over two years. The single currency has lost 2.5
percent so far this month.
The European Commission on Thursday sharply cut its forecasts for euro
zone economic growth for this year and next.
<< Back to news headlines >>
Qatar revamps investment strategy after Kushner building bailout Monday 11th February, 2019 – Reuters
When news emerged that Qatar may have unwittingly helped bail out a
New York skyscraper owned by the family of Jared Kushner, Donald
Trump’s son-in-law, eyebrows were raised in Doha.
Kushner, a senior White House adviser, was a close ally of Saudi Crown
Prince Mohammed bin Salman - a key architect of a regional boycott
against Qatar, which Riyadh accuses of sponsoring terrorism. Doha denies
the charge.
Brookfield, a global property investor in which the Qatari government has
placed investments, struck a deal last year that rescued the Kushner
Companies’ 666 Fifth Avenue tower in Manhattan from financial straits.
The bailout, in which Doha played no part and first learned about in the
media, has prompted a rethink of how the gas-rich kingdom invests
money abroad via its giant sovereign wealth fund, two sources with
knowledge of the matter told Reuters.
The country has decided that the Qatar Investment Authority (QIA) will
aim to avoid putting money in funds or other investment vehicles it does
not have full control over, according to the sources, who are familiar with
the QIA’s strategy.
“Qatar started looking into how its name got involved into the deal and
found out it was because of a fund it co-owned,” said one of the sources.
“So QIA ultimately triggered a strategy revamp.”
The QIA declined to comment.
Canada’s Brookfield Asset Management Inc bailed out 666 Fifth Avenue
via its real estate unit Brookfield Property Partners, in which the QIA
acquired a 9 percent stake five years ago. Both parent and unit declined
to comment.
The QIA’s strategic shift was made late last year, according to the
sources. It offers a rare insight into the thinking of one of the world’s most
secretive sovereign wealth funds.
The revamp could have significant implications for the global investment
scene because the QIA is one of the world’s largest state investors, with
more than $320 billion under management.
The wealth fund has poured money into the West over the past decade,
including rescuing British and Swiss banks during the 2008 financial crisis
and investing in landmarks like New York’s Plaza Hotel and the Savoy
Hotel and Harrods store in London.
QATARI BOYCOTT
Kushner was chief executive of Kushner Companies when it acquired 666
Fifth Avenue in 2007 for $1.8 billion, a record at the time for a Manhattan
office building. It has been a drag on his family’s real estate company
ever since.
The debt-laden skyscraper was bailed out by Brookfield last August, when
it took a 99-year lease on the property, paying the rent for 99 years
upfront. Financial terms were not disclosed.
The QIA bought a 9 percent stake in Brookfield Property Partners, which is
known as BPY and is listed in Toronto and New York, for $1.8 billion in 2014.
BPY has about $87 billion in assets, part of more than $330 billion managed
by its parent Brookfield. The stake purchase by QIA was in line with its
strategy to boost investments in prime U.S. property. The investment gave
QIA no seat on the board of BPY.
The Qatari wealth fund was not involved in the 666 Fifth Avenue deal, a
source close to Brookfield Asset Management told Reuters. There was no
requirement for Brookfield to inform the QIA beforehand.
The rescue rankled with Doha, according to the two sources familiar with
the QIA’s strategy, because Kushner - married to U.S. President Trump’s
daughter Ivanka - had long been one of the key supporters in Washington
of the Saudi crown prince, who is the king’s favorite son and heir to the
throne.
Prince Mohammed was a prime mover in leading regional states to
severing links with its neighbor Qatar and embargoing the small nation
since mid-2017. Saudi Arabia, the United Arab Emirates, Egypt and
Bahrain accuse Qatar of sponsoring terrorism. Doha denies the allegation
and says the other countries simply want to strip it of its sovereignty.
“There is no upside in investing through funds for someone like QIA. Qatar
wants full visibility into where its money goes,” said the second source
familiar with the QIA’s strategy.
The QIA will not wind down existing investments with Brookfield or others,
but will rather no longer invest in similar deals, according to the two
sources.
The source close to Brookfield said relations with QIA were still strong.
STILL GOING BIG
The QIA’s strategic revamp also followed a reshuffle at the top of the fund
last November when its long-serving chief, Sheikh Abdullah bin Mohamed
bin Saud al-Thani, was replaced by its former head of risk management,
Mansour Ibrahim al-Mahmoud. Foreign Minister Sheikh Mohammed bin
Abdulrahman Al Thani was named QIA chairman.
Qatar, whose wealth comes from the world’s largest exports of liquefied
gas, does not provide data on how much money it places with external
fund managers.
“What we have seen lately is that it has have not been placing much,”
said a Western fund manager who regularly sources money from wealth
funds. “Either they are investing themselves or they are just sitting on a lot
of cash.”
The Qatar shift in its approach reflects a wider trend among sovereign
wealth funds to reduce reliance on external investment managers, in an
attempt to keep tighter control over their money.
The Abu Dhabi Investment Authority, for example, said last year that 55
percent of its assets were managed by external managers in 2017, down
from 60 percent the year before.
Yet, even if the QIA is being more cautious in its choice of investment
vehicles, there is little indication that its appetite for big international
acquisitions has diminished.
In December, new QIA chief Mahmoud told Reuters the fund was
focusing on “classic” investments in the West such as real estate and
financial institutions, and would also accelerate investment in technology
and healthcare.
“The instructions from the top are to go out and do big deals,” said a
Western banker who has held talks with Qatari officials.
He said QIA’s dealmaking had not stopped even during the height of the
Gulf embargo, which initially forced the fund to put in about half of the
$43 billion injected by public-sector firms into Qatari banks to mitigate the
impact of outflows.
With oil and gas prices growing over the past two years, Qatar has not
departed from what it is best known for - snapping up big-names
properties.
In 2017, QIA pledged to ramp up its investments in Britain to 35 billion
pounds ($45 billion) from 30 billion. Since then, it has spent about 1.7 billion
pounds on real estate and another 1.1 billion on infrastructure in the
country.
In recent months, Qatar has bought New York’s Plaza and London’s
Grosvenor House hotels.
<< Back to news headlines >>
China Lunar New Year retail sales rise, but pace slowest in years Monday 11th February, 2019 – Reuters
Sales by China’s retail businesses during the Lunar New Year holiday rose
8.5 percent from a year earlier, pushing up consumer stocks on Monday,
but a cooler pace of growth added to evidence the economy is slowing.
The Ministry of Commerce, in a notice on its website late Sunday, said
retail and catering enterprises had revenue of over 1 trillion yuan ($148.3
billion) between Feb. 4-10 during the holiday.
It attributed the increase to stronger sales of new-year gifts, traditional
foods, electronic products and specialty products.
The holiday is considered a barometer for Chinese private consumption as
it is the time for family reunions as well as gift-giving.
China’s economic growth slowed to 6.6 percent in 2018 — the weakest
pace in 28 years — and is expected to cool further this year before
government growth boosting measures stabilize activity from mid-year.
On Monday, when China’s financial markets reopened, the blue-chip
index rose 1.8 percent, and the consumer staple index surged 4 percent.
Liquor maker Kweichow Moutai Co Ltd jumped nearly 5 pct while home
appliance makers Gree Electric Appliances and Midea Group closed up
2.7 and 4.1 percent, respectively.
But the growth rate for holiday retail sales fell to its lowest since at least
2011. During the 2018’s Lunar New Year holidays, the annual increase was
10.2 percent.
Nomura analysts said the fresh data indicated how consumers were
further tightening their belts, and noted that it was the first time Lunar New
Year retail sales recorded single-digit growth since the government started
publishing data in 2005.
“Weak consumption during the Lunar New Year holidays in 2019 does not
bode well for overall retail sales growth,” Nomura said in a note on
Monday.
Domestic tourism during the new year break generated revenue of 513.9
billion yuan, up 8.2 percent on the year, with the number of trips rising 7.6
percent to 415 million, the official Xinhua news agency said on Sunday.
SLOWING GROWTH
Domestic consumers were the main engine behind China’s economic
expansion last year as other growth drivers such as manufacturing and
trade faltered, but their spending has already showed signs of softening.
Retail sales grew the least in 2018 in 15 years, slowing markedly in the final
quarter of the year, as incomes increased at a slacker pace while the
cost of living rose. Sales in the world’s biggest auto market shrank for the
first time since the 1990s.
The topic of how much people spent over the holiday was widely
discussed on Chinese social media, with some netizens saying they stayed
home to save money while others said they borrowed money to
celebrate.
“My hard work that went into achieving one year of savings is no match
for the short Spring Festival holiday,” said a post on Weibo that garnered
over 5,000 comments.
<< Back to news headlines >>
China upbeat on U.S. trade talks, but South China Sea tensions weigh Monday 11th February, 2019 – Reuters
China struck an upbeat note on Monday as trade talks resumed with the
United States, but also expressed anger at a U.S. Navy mission through the
disputed South China Sea, casting a shadow over the prospect for
improved Beijing-Washington ties.
The United States is expected to keep pressing China on longstanding
demands that it reform how it treats American companies’ intellectual
property in order to seal a trade deal that could prevent tariffs from rising
on Chinese imports.
The latest talks will begin with working level discussions from Monday-
Wednesday before high-level discussions at the end of the week.
Negotiations concluded in Washington last month without a deal and
with the top U.S. negotiator declaring that a lot more work needed to be
done.
Lower-level officials will kick off the meetings on Monday, led on the
American side by Deputy U.S. Trade Representative Jeffrey Gerrish.
Higher principal-level talks will take place Thursday and Friday with U.S.
Trade Representative Robert Lighthizer and Treasury Secretary Steven
Mnuchin.
“We, of course, hope, and the people of the world want to see, a good
result,” Chinese Foreign Ministry spokeswoman Hua Chunying told
reporters at a regular news briefing in Beijing.
The two sides are trying to hammer out a deal ahead of the March 1
deadline when U.S. tariffs on $200 billion worth of Chinese imports are
scheduled to increase to 25 percent from 10 percent.
Lighthizer, named by U.S. President Donald Trump to spearhead the
process after agreeing a 90-day truce in the trade war with Beijing, has
been a strong proponent of pushing China to end what the United States
views as unfair trade practices, including stealing intellectual property and
forcing U.S. companies to share their technology with Chinese firms.
China has denied it engages in such practices.
Trump said last week he did not plan to meet with Chinese President Xi
Jinping before that deadline, dampening hopes that a trade pact could
be reached quickly.
Escalating tensions between the United States and China have cost both
countries billions of dollars and disrupted global trade and business flows,
roiling financial markets.
The same day the latest talks began, two U.S. warships sailed near islands
claimed by China in the disputed South China Sea, a U.S. official told
Reuters.
Hua said the ships entered the waters without China’s permission, and that
Beijing expressed firm opposition and dissatisfaction at the move.
China’s navy had tracked the vessels and warned them to leave, Hua
said, accusing Washington of provocation and of harming China’s
sovereignty.
Asked if the ships’ passage would impact trade talks, Hua said that “a
series of U.S. tricks” showed what Washington was thinking. But Hua added
that China believed resolving trade frictions through dialogue was in the
interests of both countries’ people, and of global economic growth.
China claims a large part of the South China Sea, and has built artificial
islands and air bases there, prompting concern around the region and in
Washington.
<< Back to news headlines >>
China will spur banks to raise capital: state TV Monday 11th February, 2019 – Reuters
China’s state council, or cabinet, said on Monday it would adopt
measures to encourage commercial banks to replenish capital through
various channels and push funds to participate in capital-raising activity,
state television said.
The state council said it would cut the threshold for commercial banks’
issuance of preference and convertible bonds and streamline the
approvals process for banks’ applications to issue perpetual bonds aimed
at replenishing capital, the broadcaster added.
Banks that replenish capital should boost lending support to private and
smaller firms, the state council added, according to the report.
<< Back to news headlines >>
EU begins process to hit Cambodia's with trade sanctions Monday 11th February, 2019 – Reuters
The European Union started an 18-month process on Monday that could
lead to the suspension of Cambodia’s duty-free trade access over its
record on human rights and democracy.
The European Commission, which coordinates trade policy for the 28-
member EU, said that its decision to start the process would be published
in the EU official journal on Feb. 12, triggering a countdown that could run
until August 2020.
Cambodia benefits from the EU’s “Everything but Arms” (EBA) trade
regime, which allows the world’s poorest countries to sell any goods,
except weapons, tariff-free into the bloc.
The EU warned Cambodia last July that it could lose this special status,
after elections maintained Prime Minister Hun Sen in power and gave his
party all parliamentary seats. He has led the country since 1985.
The EU is Cambodia’s largest trading partner, accounting for 45 percent
of its exports in 2018. Clothing factories there employ around 700,000
workers, and garments are a large share of exports to the bloc worth
some 4.9 billion euros.
Cambodia is the second largest user of EBA preferences, behind only
Bangladesh. Businesses and unions there last month urged the European
Union not to withdraw the preferences, saying such a decision would
harm millions of workers and their families.
The European Commission said that its goal was to ensure Cambodia
improved the situation for its people, with withdrawal of preferences only
a last resort.
“It should be clear that today’s move is neither a final decision nor the
end of the process. But the clock is now officially ticking and we need to
see real action soon,” EU Trade Commissioner Cecilia Malmstrom said in a
statement.
EU foreign affairs chief Federica Mogherini said the EU recognized
Cambodian authorities had taken positive steps in recent months, such as
releasing political figures and addressing some restrictions on civil society
and trade union activities.
“However, without more conclusive action from the government, the
situation on the ground calls Cambodia’s participation in the EBA scheme
into question,” she said.
The process consists of six months of monitoring and talks with the
Cambodian authorities followed by another half-year period for the
Commission to produce a report and take a decision on whether or not to
withdraw the trade preferences.
Any withdrawal would take effect after a further six months.
<< Back to news headlines >>
European shares bounce from one-week low as trade talks resume Monday 11th February, 2019 – Reuters
Gains in heavyweight miners and banks helped European shares recover
on Monday as investors turned their focus to the start of a new round of
trade talks between Beijing and Washington.
The pan-regional STOXX 600 index rose 0.9 percent by 0931 GMT, having
fallen to one-week lows on Friday amid worries over an economic
slowdown and lack of progress in the trade negotiations.
But as talks between the world’s two largest economies resumed on
Monday, China struck an upbeat note. It did however express anger at a
U.S. Navy mission through the disputed South China Sea, casting a
shadow over the prospect for improved bilateral ties.
“Growth, China, trade, Brexit – the big themes that have been front of
mind for months now remain very much in play this week,” said Neil
Wilson, analyst for Markets.com.
Among national benchmarks, Germany’s trade-sensitive DAX index and
London’s FTSE 100 both added 0.9 percent, while France’s CAC gained
1.1 percent.
Europe’s basic resources index rose 1.3 percent, leading sectoral gainers,
after Chinese iron ore prices hit a record high on worries that supply from
Brazil may fall following the Vale dam collapse.
Shares in Glencore, Rio Tinto and BHP were up between 0.9 and 1.6
percent.
Banks were also strong, up 1.3 percent, with Italian lenders leading the
way after Banco BPM and UBI Banca and UniCredit said their capital
ratios met European Central Bank standards. Their shares were up
between 2.4 and 5.6 percent.
Deutsche Post rose 2.1 percent on a report saying that Germany was set
to grant the postal services firm a higher-than-expected increase in
postage for letters to account for fewer letters sent and higher costs.
Just Eat rose 1.9 percent after its shareholder Cat Rock urged the British
takeaway ordering website to start merger discussions. Shares in rival
Delivery Hero were down 0.2 percent while Takeaway.com rose 0.7
percent.
Among the few fallers was Smith & Nephew, down 3.4 percent, following
a report it has held talks to buy U.S. medical equipment maker NuVasive in
a deal that would be worth more than $3 billion.
<< Back to news headlines >>
Bank of France sees French first-quarter economic growth at 0.4 percent Monday 11th February, 2019 – Reuters
France is expected to have first quarter economic growth of 0.4 percent,
the Bank of France said in its monthly business survey on Monday, as the
euro zone’s second-biggest economy grapples with the impact to
business from anti-government protests.
First-quarter growth of 0.4 percent would represent a slight improvement
from the fourth quarter of 2018, when the French economy grew by 0.3
percent.
The French government expects the country’s economy to grow by 1.7
percent for 2019.
<< Back to news headlines >>
Scotia sells off business in El Salvador Monday 11th February, 2019 – Trinidad Express Newspapers
CANADA'S Scotiabank has reached an agreement to sell its El Salvador
banking and insurance business to Imperia Intercontinental in order to
focus on other markets, the bank said on Friday.
The sale, which includes Scotiabank El Salvador, its subsidiaries as well as
Scotia Seguros, must still be approved by regulators.
'This transaction with Imperia is in the best interest of our clients, workers
and shareholders,' said Scotiabank executive Ignacio Deschamps, adding
that the concluded sale will generate losses of around US$170 million for
the bank.
Scotiabank services at its locations will operate normally until the sale is
concluded, the bank said in a statement.
Scotiabank began operating in El Salvador in 1997. The sale follows others
in nine countries in the Caribbean.
The bank said the accumulated impact of these transactions, including
the loss in El Salvador, should generate around US$250 million.
In 2016, Imperia Intercontinental acquired Citibank's El Salvador unit and is
the main shareholder in Salvadoran financial institutions Banco Cuscatlan
and Seguros e Inversiones SA (SISA). Last November Scotiabank sold its
banking operations in nine of the 21 Caribbean markets it operated in -
Anguilla, Antigua, Dominica, Grenada, Guyana, St Kitts and Nevis, St
Lucia, St Maarten and St Vincent and the Grenadines - to Republic
Financial Holdings Ltd.
The bank also sold of its insurance operations in Jamaica and Trinidad and
Tobago to Sagicor Financial Corp.
<< Back to news headlines >>
ANSA bids for Indian bank Sunday 10th February, 2019 – Trinidad Express Newspapers
ANSA McAL, Trinidad and Tobago's largest conglomerate by assets and
profits, has put in a bid to acquire the T& T operations of the Bank of
Baroda, which is owned by the government of India.
Financial sector sources told the Sunday Express the Bank of Baroda,
which operates commercially in T& T, had invited technical and financial
offers for its T& T operations.
ANSA McAL already provides financial services through ANSA Merchant
Bank, which is publicly listed, and TATIL, the general and life insurance
company.
In Barbados, the group owns Bryden's Insurance Barbados and
Consolidated Finance. If it manages to acquire Bank of Baroda's banking
licence, the conglomerate will obtain a banking licence allowing it to
take deposits and make loans.
ANSA McAL put in an offer to acquire the Bank of Baroda's operations last
year.
That offer will close tomorrow.
Former finance minister Larry Howai, ANSA McAL's special adviser in the
financial services sector, confirmed to the Sunday Express that the group
had put in a bid.
The group extends into many industries in T& T, including automotive sales
and servicing, beverages, construction, distribution, financial services,
manufacturing, real estate, retail and media.
It operates throughout the Caribbean, in Florida, USA, and last year it
entered into a joint venture with MPC Caribbean Clean Energy to acquire
a 50 per cent stake in a Costa Rican wind farm.
Last year, Indian financial news outlet LiveMint reported that this would be
the first time any Indian state-owned bank had tried to sell its international
units in three jurisdictions-T& T, Guyana and Ghana.
The Bank of Baroda is India's state-owned bank, with more than 5,000
branches worldwide.
It set up shop in T& T in 2007 and has three branches- in Port of Spain,
Chaguanas and San Fernando.
Last March, its Chaguanas branch was robbed of $500,000.
According to its corporate profile, the bank is 'primarily catering to
corporate, SME (small or medium-size enterprise), retail, mortgage and
forex sector in Trinidad & Tobago', with the bank's capitalisation at half a
billion dollars.
Both ANSA Merchant and Bank of Baroda are authorised dealers of
foreign exchange.
The 12 authorised dealers for foreign exchange are: ANSA Merchant Bank,
Bank of Baroda, Citibank, FirstCaribbean International Bank, Development
Finance Ltd, First Citizens, Massy GFC, JMMB, RBC Royal Bank, Scotiabank,
NCB Global Finance and Republic Bank.
Bank of Baroda's T& T managing director, Kare Nagabhushana Rao, told
the Sunday Express yesterday he had no comment on the matter.
Baroda's exit
Last year, the Bank of Baroda closed its Bahrain, Bahamas and South
Africa branches and initiated similar moves to close its Guyana offices.
In December 2018, the Bank of Baroda was looking to divest its entire 100
per cent stake in its Bank of Baroda Guyana Inc subsidiary through
investment bankers.
At the time, the government of Guyana said it was not surprised by the
move, attributing it to the cost of adhering to the anti-money laundering
regulations which may have dented their income.
Finance minister Winston Jordan had said since April 2018 that the bank
indicated it would be closing its Guyana operations.
On December 17, the Economic Times of India reported the bank's
intention to close up shop here and in Guyana.
'The bank in a regulatory filing said that as per the government guidelines
for rationalisation of overseas presence, increase in efficiency and
profitability of the overseas offices, it will close down branches in Guyana,
Trinidad and Tobago and Ghana by June 30, 2019.
'The three branches contribute less than a percentage each to the bank's
consolidated business. Revenue from Ghana business stood at Rs 75.31
crore, Trinidad and Tobago Rs 23.90 crore and Guyana Rs 26.38 crore, the
bank said without specifying the period during which the revenue was
generated from these entities.
'Rationalisation of public sector bank (PSB) branches is part of the
government's initiative, approved on November 2017 as clean and
responsible banking initiative,' the report said.
The proposed sale of the Bank of Baroda's T& T and Guyana banking
licences comes amid the consolidation of the financial sector in the
region.
In December 2017, Jamaica's NCB Financial Group announced it wanted
to increase its stake in T& T's Guardian Holdings Ltd (GHL), from 29.99 per
cent to 62 per cent. In December 2018, NCB made a new offer for GHL at
US$2.79 for a block of shares that would take the acquirer up to 62 per
cent.
Last November, Canada's Bank of Nova Scotia announced it signed an
agreement to sell its banking operations in nine Caribbean countries to
Republic Financial Holdings Ltd (RFHL), in a deal worth some US$123
million.
RFHL is also at an advanced stage of regulatory approval for its
acquisition of up to 74.99 per cent of the Cayman National Bank.
Also in November 2018, Sagicor Financial Corporation announced it was
buying the Bank of Nova Scotia's insurance companies in Jamaica and in
T& T for a total of US$240 million.
That transaction is linked to the acquisition of 100 per cent of Sagicor by a
Toronto- based outfit Alignvest.
<< Back to news headlines >>
Cigarette prices going up tomorrow Sunday 10th February, 2019 – Trinidad Express Newspapers
PRICES of some locally manufactured cigarettes are going up from
tomorrow, according to retailers of the product who were informed by the
country's sole manufacturer, the West Indian Tobacco Company (WITCO).
The price increases, which are between 3.5 and 6.45 per cent, will impact
the cost of packs of 20 cigarettes, but not the packs of ten.
The suggested retail price of a pack of 20 Dunhill cigarettes will go to $33
from $31, which is an increase of 6.45 per cent.
The suggested price of a pack of 20 Du Maurier cigarettes goes to $29
from $28, an increase of 3.6 per cent.
A pack of 20 Broadway cigarettes will be 4 per cent more at $26, up from
$25, while a pack of Mt d'or will cost a smoker $18, which is $1 or 5.8 per
cent more than the current price.
Some retailers ignore WITCO's suggested retail prices and charge smokers
what they believe they would be willing to pay.
In its most recent financial results, for the nine-month period ending
September 30, 2018, WITCO reported profits after tax that were 10 per
cent higher than in 2017, at $303.3 million.
In the company's 2017 annual report, managing director Jean-Pierre Du
Coudray said WITCO's total revenue declined by 15 per cent or $150.7
million compared to 2016.
That decline, according to Du Coudray, was 'a direct spinoff of the
declining economic environment compounded by the significant change
in consumer behaviour driving the demand for ultra-low-price brands'.
In addition, he complained about the 'continued growth of potentially
illicit brands in the local market impacting negatively on our domestic
volume base'.
In the past, WITCO has attributed higher retail prices for cigarettes to the
higher cost of imported tobacco.
<< Back to news headlines >>
Sagicor adds 8.5% Sunday 10th February, 2019 – Trinidad Express Newspapers
ACTIVITY on the first-tier market decreased by 30.28 per cent on a total of
1,346,159 shares crossing the floor last week compared to 1,930,747 shares
traded in the previous week.
The value of shares traded was down by 30.67 per cent to $22,241,268.89
from the previous week's value of $32,079,358.09.
Positive territory
The volume leader last week was NCB Financial Group Ltd (NCB)
capturing 62.59 per cent of the market activity or 842,510 shares traded,
followed by Sagicor Financial Ltd (SFC) with 8.08 per cent or 108,829
shares traded. In third place was West Indian Tobacco Company Ltd
(WCO), with 6.68 per cent or 89,974 shares traded.
The indices ended the week in positive territory. The Composite Index
increased by 0.36 per cent or 4.64 points to close at 1,307.84. The All
Trinidad and Tobago Index up by 0.13 per cent or 2.15 points to end at
1,705.78. The Cross Listed Index closed at 122.95, rose by 0.8 per cent or
0.97 points and the Small and Medium Enterprise Index ended at 99.50.
Major decline
Last week, there were 12 stocks advancing and two stocks declining,
while one stock was at its 52-week high and four stocks at their 52-week
low.
SFC was the major advance, up 8.51 per cent or $0.75 to close the week
at $9.56, followed by Unilever Caribbean Ltd (UCL) with an increase of
1.72 per cent or $0.43 to close at $25.43. In third place was GraceKennedy
Ltd (GKC) up 1.31 per cent or $0.04 to close at $3.10.
The major decline was Trinidad Cement Ltd (TCL), down 5.66 per cent or
$0.15 to end at $2.50, which was its 52-week low. In second place was
JMMB Group Ltd (JMMBGL) down by 1.68 per cent or $0.03 to close at
$1.76.
There was no activity on the second-tier market this week.
On the TTD Mutual Fund market 126,840 CLICO Investment Fund (CIF) units
traded with a value of $2,511,738.92. CIF's unit price closed at $20.15, a
decrease of 0.10 per cent or $0.02. Also, 2,555 units in Calypso Macro
Index Fund (CALYP) traded with a value of $76,678. CALYP's unit price
ended at $14, an increase of 3.7 per cent or $0.50 from the previous week.
CinemaOne (CINE 1) on the Small and Medium Enterprise Market closed
at $9.95 with no shares traded last week.
On the USD Equity Market, MPC Caribbean Clean Energy (MPCCEL)
closed at US$1 with no shares traded.
<< Back to news headlines >>
Ministry recruits 33 specialist doctors from Cuba to tackle shortage Saturday 9th February, 2019 – Trinidad Express Newspapers
THE Ministry of Health has recruited 33 specialist doctors from Cuba in a
bid to address the shortage of suitably qualified healthcare professionals
in the public health system.
A news release from the ministry yesterday said these doctors are the
seventh batch of Cuban nationals who have been integrated into the
public health sector in recent years.
The doctors have been contracted for a period of three years to fill
vacancies that have not been filled by qualified nationals.
'This cohort comprises doctors who specialise in over 20 medical fields that
are currently in high demand and short supply across Trinidad and
Tobago,' the ministry stated.
These specialty areas include anaesthesiology, cardiology,
endocrinology, gastroenterology, haematology, intensive care,
maxillofacial surgery, neonatology, neurosurgery, neurology, oncology,
ophthalmology, orthopaedics, paediatric emergency, pulmonology,
radiology, rheumatology, thoracic surgery, urology and vascular surgery.
First-class care
The 33 doctors are currently undergoing one week of orientation, and are
expected to replace the previous team of Cuban doctors at regional
health authorities who have completed their four-year contracts.
The ministry said it will continue to move steadfastly forward to achieving
the goal of delivering first-class healthcare to the public and the
recruitment of foreign professionals is a key part of that goal.
'The ministry remains committed to ensuring that all citizens have equal
access to quality healthcare as part of its mandate to achieving a
healthy me, healthy you and a healthy Trinidad and Tobago.'
<< Back to news headlines >>
Owners notified of compulsory acquisition of land to complete roadworks Saturday 9th February, 2019 – The Antigua Observer
The owners of land along Friars Hill Road and Sir George Walter Highway
have been informed, by way of written notices that sections of their
property could be acquired to facilitate the government’s road
infrastructure rehabilitation project.
The notices had been posted on properties for perusal by the affected
landowners, a release said on Friday.
“The power to acquire land is eminent and allows the government to
acquire private property for public purposes such as road rehabilitation
with a plan to provide consideration and compensation to the property
owners,” a release from the PRO of the Project Implementation Unit (PIMU)
– Shawn Thomas – said yesterday.
The process of informing property owners is being managed by the
Project Implementation Unit (PIMU) with assistance from the Authorizing
Officer. The
posting of notices on vacant land is a requirement
under the Land Acquisition Act caption 233 of the
laws of Antigua and Barbuda, the communique added.
Both major roads are being rehabilitated through grant funding from the
British Government in the amount of 13.9 million pounds sterling.
To date “a vast majority of widening works have been completed [on]
both roads and plans are afoot to commence removal of the existing
carriageway,” the release said.
<< Back to news headlines >>
External Bonds and No Strikes Key to Growth Friday 8th February, 2019 – Qcostarica
The growth of the Costa Rican economy will be 3.2% in 2019 and 3.0% in
2020 – levels higher than the estimated increase for 2018, of 2.7% -,
according to the Macroeconomic Program 2019-2020 of the Central
Bank.
Even several indicators are positive, from stable inflation to credit growth,
driven by a better business climate to the detriment of last year’s
uncertainty, reports Costa Rica’s business newspaper La Republica.
The newspaper says government debt will continue to be a threat to
financial health, increasing to more than 60% of the value of domestic
production by 2020.
On the other hand, the deficit would not grow, with the expectation of
stable interest rates – that is, assuming that the Legislative Assembly
approves the issue of the Eurobonds, also called external bonds.
Among the risks at the national level, the absence of an authorization for
external financing from the Government would affect consumption,
investment and therefore growth, given the upward pressures on interest
rates in both currencies, due to the need to seek money. in the domestic
market.
As far as external risks are concerned, the Costa Rican economy would
be affected by the increase in commercial tensions, particularly between
the United States and China.
On the continent, a greater conflict in Venezuela could mean an
increase in the price of raw materials, especially oil, while national trade
would be affected by deteriorating conditions in Nicaragua, both due to
delays in cross-border transport and a drop in demand in a Central
American market, of which 90% of exports in 2017, valued at just over
US$1.6 billion, passed through Nicaraguan territory.
The Macroeconomic Program 2019-2020 is the first of the Alvarado
administration, as well as Rodrigo Cubero as president of the Central
Bank.
Positive projections
Even when the projections seem to be positive, it is necessary that all
actions be carried out as the Central Bank thought when carrying out its
analysis, according to the Central Bank president.
Silvia Jiménez, Investment manager at the Mercado de Valores (Stock
market), says “The cloud of the day has not yet been clarified for Costa
Rica, however, little by little the light begins to be seen.”
Luis Diego Herrera, Economic analyst or the Acobo Financial Group, “The
Central Bank bases this growth on the recovery of private consumption
and government consumption, claiming that confidence will be
restored.”
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Head of EU-LAC Foundation visits Dominica Friday 8th February, 2019 – Dominica News Online
Executive Director of the European Union–Latin America and Caribbean
Foundation (EU-LAC Foundation) Paola Amadei, is in Dominica on her first
official visit.
The first objective of that visit she explained at a media conference on
Friday, is “to build a strong relationship with the government concerned
and make EU-LAC better known to citizens.”
Amadei said that she has held talks with Foreign Affairs Minister Francine
Baron, Education Minister Petter St. Jean, Environment Minister Joseph
Isaac, Tourism Minister Robert Tonge and Telecoms Minister Kelver Darroux.
“At the moment, the organization is transforming into an international
organization and we would like to see Dominica as one of the founding
members to soon ratify our agreement,” she said.
According to her, she understands that this process is “at an advanced
stage” based on her talks with Foreign Minister Baron.
“We hope that while the transformation is happening, this will help to
project and put the perspective of the Eastern Caribbean into a broader
platform,” Amadei stated.
She has also visited the Dominica Grammar School (DGS), Dominica State
College (DSS), and the Old Mill Cultural Centre. She said so far her visit has
been “quite hectic but successful.”
“It’s been a very busy schedule so far, as I go around on this first official
visit and I can tell you that we are looking at establishing a repository
library for Dominica…it’s something we have started doing for all our
member States. We are checking with the minister to find out where it is
better to be placed,” Amadei stated.
The European Union–Latin America and Caribbean Foundation (EU-LAC
Foundation) was created in 2010 by the Heads of State and Government
of the European Union (EU) and the Community of Latin American and
Caribbean States (CELAC) member states. Its Members are the Member
states of the EU and CELAC as well as the EU itself. The Foundation is a tool
of the EU-LAC partnership and its activities feed into the
intergovernmental dialogue, in line with the bi-regional Action Plan.
The EU-LAC Foundation was entrusted with the mission of strengthening
and promoting the strategic bi-regional relationship, enhancing its visibility
and fostering active participation of the respective civil societies.
From Dominica, Amadei will move to St. Kitts & Nevis and then Antigua,
before returning to Germany.
<< Back to news headlines >>
Camillo outlines 10 principles for jobs, growth, sustainable dev’t in 2019 Friday 8th February, 2019 – IWitness News
Minister of Finance, Camillo Gonsalves used the 2019 Budget to outline
what he said are “10 principles for jobs, growth and transformative
sustainable development” in St. Vincent and the Grenadines (SVG).
The first is that the 17 internationally-agreed Sustainable Development
Goals are the bedrock of the nation’s “modern agenda for growth and
development.
“These goals and targets, mainstreamed and adapted to the Vincentian
context, are the broad conceptual lights that guide our developmental
efforts.”
The second principle is that an economy based on multiple, strong sectors
is more resilient, more stable, and less vulnerable to exogenous shocks.”
Gonsalves said that in refusing to place all of the nation’s economic eggs
in a single sectoral basket, SVG has managed to avoid “the wild cyclical
swings and social upheaval that have typified the post-crisis era.”
He said that a recently released credit analysis by Moody’s noted that
SVG is less volatile than similarly-rated countries.
“This is by design,” the minister said.
He added:
“Even as we emphasise other sectors for growth and development, we
will not abandon existing segments. Within the confines of typical small-
state limitations, we rely on economic diversity to maintain our climate of
confidence and stability.”
The third principle he said is that economic transformation requires
investment in productive, climate resilient infrastructure.
The construction of public infrastructure — in and of itself — stimulates
growth, Gonsalves said.
“But the completed projects, if well-designed and well-targeted, provide
the foundation for long-term development. Budget 2019 is focussed on
multiple major infrastructure initiatives with transformative potential,” he
said.
Ambitious goals and targets must be leavened by an obligation for fiscal,
social and environmental sustainability, the minister said, identifying the
fourth target.
He said the budget reflects moderate growth and a small surplus on the
current account but said economic indicators are only part of the story.
“Budget 2019 commits to prudent fiscal reform and measured adoption of
the more far-reaching adjustments to our way of life and production.”
The fifth principle is that the greatest form of social protection is a decent
job, and the best guarantors of a good job are education, experience
and training.
“Budget 2019 will support job creation, and deepen the scope and reach
of the Education Revolution through a marked expansion in skills training
and technical and vocational education,” Gonsalves said.
In the context of small island states, social inequality is a massively
inefficient and debilitating drag on national development.
“Budget 2019 advances multiple policies to reduce inequality, increase
opportunity, and foster inclusiveness — particularly among the youth.
Further, the biblical admonition to feed, clothe, tend to and accept ‘the
least of these my brethren,’ is also sound developmental policy,” the
minister said, elaborating the sixth point.
He added:
“Budget 2019 focuses on the elderly, the infirm and the nutritionally
vulnerable with specific initiatives designed to support fulfilling lives by
reducing vulnerability and inequality.”
The seventh principle is that crime retards development.
“As such, Budget 2019 targets crime and the causes of crime in new ways
and with new tools, including an increased emphasis on community-
based interventions and relationship-building,” Gonsalves said.
He further said that while a healthy economy is dependent on a healthy
and vibrant private sector, it does not preclude a catalysing role for an
active and entrepreneurial state apparatus.
“As such, to complement timely private investments in critical areas,
Budget 2019 will allocate public resources to accelerate sectoral growth
and national development.”
Developmental transformation is impossible without concomitant
enhancements to local healthcare architecture and service delivery,
Gonsalves said, as he outlined the ninth principle.
“Accordingly, Budget 2019 reforms administrative structures, while
substantially widening and deepening the healthcare offerings available
to the
Vincentian public,”
The tenth principle is that “climate resilience, in the form of adaption,
mitigation and advocacy, is the sine qua non of modern sustainable
development in Small Island Developing States.
“Budget 2019 therefore dedicates unprecedented resources to
renewable energy, resilient infrastructure and citizen support in the face of
the gathering climate threat.”
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All fuel prices climb, except natural gas Friday 8th February, 2019 – Dominican Today
The Industry and Commerce Ministry on Fri. posted the fuel prices for the
week form Feb. 9 to 16, when premium gasoline will cost RD$214.60 per
gallon, or RD$0.20 more and regular will cost RD$198.60, RD$1.20 higher
per gallon.
Regular diesel will cost RD$173.40, or RD$1.00 more and premium diesel
will cost RD$186.20, or RD$0.90 more per gallon.
Avtur will cost RD$138.40 per gallon, or RD$1.30 more; kerosene will cost
RD$165.10, or RD$1.40 more and fuel oil will cost RD$117.05 or RD$2.80
more.
Propane will cost RD$106.60 per gallon, or RD$0.50 more, while natural gas
remains at RD$28.97 per cubic meter.
The Dominican Central Bank’s posted average exchange rate of
RD$50.47 per dollar was used to calculate all fuel prices.
<< Back to news headlines >>
Venezuela open to barter trade with India to boost oil sales Monday 11th February, 2019 – Reuters
Venezuela is open to barter-like payments from India to boost oil sales to
the world’s third-biggest oil consumer, the South American country’s oil
minister Manuel Quevedu said on Monday.
Venezuela buys a slew of products including medicines from India, and it
is looking for alternative payment mechanisms after application of the
latest stringent U.S. sanctions.
The administration of U.S. President Donald Trump has imposed sweeping
sanctions on Venezuelan state-owned oil firm PDVSA, aimed at severely
curbing the OPEC member’s crude exports to the United States to
pressure socialist President Nicolas Maduro to step down.
“The relationships with India will continue, the trade will continue and we
will simply expand all the trade and relationship,” Quevedu told reporters
on the sidelines of Petrotech conference, without giving any further details
on how a barter mechanism with India would work.
Venezuela’s oil production has dwindled in the last two decades, from
more than 3 million barrels per day (bpd) at the beginning of the century
to between 1.2 million and 1.4 million bpd by late 2018. Most of the crude
oil it produces now is heavy or extra heavy.
Venezuela’s oil output is now at 1.57 million bpd, Quevedu said.
The Venezuelan oil minister, who now holds the rotating presidency of the
Organization of the Petroleum Exporting Countries (OPEC), said it was
important to listen to all the consuming countries that represent oil
demand to maintain the balance of demand and supply in the markets.
“Inventory levels, demand, supply are the elements taken into account
while trying to maintain the balance the global industry needs,” Quevedu
said.
Unilateral sanctions by the United States have reduced PDVSA’s oil output
and caused a loss of about $20 billion to its oil revenue-dependent
economy, he said.
“U.S. exercises kidnapping of resources around the world ... It is financial
persecution. Now they want to steal Citgo Petroleum from Venezuela,” he
said.
Citgo Petroleum Corp is a unit of PDVSA and Venezuela’s top foreign
asset. Citgo operates three U.S. refineries that supply about 4 percent of
total U.S. fuel production, and it is PDVSA’s largest U.S. customer for its oil
exports.
Following the U.S. decision to impose sanctions on Venezuela’s oil industry,
both sides have engaged in aggressive moves for control of Citgo, which
has roots in the United States dating back 100 years, but has been owned
by Venezuela’s state-owned Petroleos de Venezuela, or PDVSA, for three
decades.
Sanctions have forced Citgo and other U.S. refiners to seek crude oil
supplies from other nations.
<< Back to news headlines >>
Investors in Cuba wary of impact from U.S. threats, Venezuela crisis Friday 8th February, 2019 – Reuters
Some foreign businesses in Cuba are scrambling to defend their interests
while others are rethinking the risk as the Trump administration bears down
on Venezuela and Cuba, according to a dozen experts, diplomats and
businessmen.
The United States has said it is considering activating a long-dormant law
that would expose companies and individuals to lawsuits for trafficking in
expropriated Cuban property, as well as placing the country on the list of
state sponsors of terrorism.
That would undermine efforts by the administration of Cuban President
Miguel Diaz-Canel to foster foreign investment and promote tourism on
the Caribbean island.
To make matters worse, the fall of Cuban ally President Nicolas Maduro’s
socialist government in Venezuela would be a serious blow to the
Communist-run nation’s already fragile economy.
“It’s Trump going after Cuba that worries investors, as opposed to
Venezuela, which has largely been proverbially costed in,” said British
investor and consultant David Mathew, who has been involved with a
number of Cuba projects, including growing and importing coffee.
Mathew said he was already receiving “a pre-emptive push back” from
some would-be foreign investors.
The Trump administration is threatening to allow a law that has been
suspended since its creation in 1996 to take effect in March allowing U.S.
citizens to sue foreign companies and individuals over property
confiscated in the 1960s by the Cuban government.
The so-called Title III rule forms part of the Helms-Burton Act, which
codified all U.S. sanctions against Cuba into law 23 years ago.
It has been waived by every president ever since due to opposition from
the international community and fears it could create chaos in the U.S.
court system, analysts say.
“It is all bad news. The economy is going to get worse than it already is
due to the Venezuela crisis and Trump’s new threats are already scaring
people away,” said one commercial attaché from a European country
with extensive business interests in Cuba.
“Our businesses are coming to us asking what we can do about any new
U.S. measures,” he said. “They are really worried, and so are we.”
Cuba’s economic reliance on Venezuela has diminished in recent years
due to a decline in subsidized oil sales from the South American nation.
Cuba has begun diversifying its oil supplies from other sources, such as
Russia and Algeria.
Pavel Vidal, a former Cuban central bank economist who teaches at the
Universidad Javeriana Cali in Colombia, said a continued gradual
winding down of the economic accords with Venezuela could wipe
between 4 and 8 percent off gross domestic product.
“If there is regime change and cancellation of all agreements, the impact
could be greater,” he said.
When Venezuela’s late President Hugo Chavez launched his Bolivarian
Revolution in Venezuela in 1999, an increase in trade led to a partial
revival of the Cuban economy, which had stalled after the fall of its
benefactor, the Soviet Union.
But the trade relationship had already weakened from around $7.2 billion
in 2014 to $2.3 billion in 2017, according to the Cuban government, due to
Venezuela’s economic crisis and declining oil exports.
This has led to economic stagnation in Cuba, reduced allocations of fuel
and electricity to state entities, periodic scarcities of medicines, bread
and other goods and increasing debt to suppliers and investors.
<< Back to news headlines >>
BOJ Conducts Third Forex Flash Sale In A Week Friday 8th February, 2019 – Jamaica Gleaner
The Bank of Jamaica, BOJ, intervened in the market again on
Wednesday, the third time during the past week, by selling US$20 million to
authorised dealers and cambios in continued efforts to curb the effects of
daily volatility in the foreign exchange market in recent weeks.
Earlier this week, BOJ Governor Brian Wynter admitted that there has been
a significant slippage in the exchange rate and a sharp increase in up-
and-down movements, which he attributed to higher levels of demand
for US dollars arising from large capital market transactions.
He said that many of the transactions involve Jamaican companies which
were converting their debt into local currency as they take advantage of
the exceptionally low interest rates now available.
The central bank’s response to the rapid depreciation in the value of the
Jamaican dollar against its United States counterpart were flash
operations under the Bank of Jamaica Foreign Exchange and
Interventions Tool (B-FXITT) in which it sold a total of US$80 million to the
market between last Friday and Wednesday this week.
The weighted average selling rate of the US dollar last Friday, February 1,
was $137.06, moving to $137.21 on Monday, February 4, before
appreciating to $136.70 by Wednesday.
Senior Deputy Governor of the BOJ, John Robinson, told the Financial
Gleaner last week that although the central bank had indicated that
there was no need to either buy nor sell foreign exchange to the market
under B-FXITT over a four-week period starting in late January, recent
disquiet in the movement of the dollar resulted in the flash action.
In his statement this week, Wynter said “we are aware that the
concentration of large capital market transactions that we are seeing is,
by its nature, temporary and will pass. But although the pressure in the
foreign exchange market is therefore temporary and also will pass, we
should understand that episodes like these do happen in markets from
time to time, especially in markets like ours that are in the process of
transformation.”
He reassured the public that “the Bank of Jamaica will not allow disorderly
conditions to exist in the foreign exchange market, and will always act to
ensure that businesses and individuals can conduct their affairs in a
normal way”.
On Tuesday, the BOJ reminded authoriSed dealers and cambios that
further to the four-week schedule disseminated on January 29, 2019, the
BOJ will not be conducting any standard B-FXITT operation on February 6
and, therefore, will not be receiving applications for the sale and/or
purchase of US dollars to or from them.
However, it said the B-FXITT process remains in place, and the BOJ will
continue to assess market intelligence and engage with the foreign
exchange market as appropriate.
<< Back to news headlines >>
NCB Reports Big Gains But Rare Profit Dip Friday 8th February, 2019 – Jamaica Gleaner
NCB Financial Group posted a rare decline in net profit for the December
quarter, due to a restated one-off gain from an acquisition booked in the
previous period.
The banking conglomerate earned $7.4 billion in the review period –
which was buttressed by a gain of $3.3 billion from the sales of its stake in
JMMB Group – but those results were nearly two per cent lower than the
December 2017 first quarter.
In the latter period, NCB booked a restated, and upsized, $4.4-billion gain
from its acquisition of Bermuda-based Clarien Group. Its net profit for that
period, which was initially reported as $4.6 billion, was restated at $7.54
billion as a result.
It was the first dip in quarterly profit in four years. Back in December 2014,
before the bank group restructured as a conglomerate, NCB adopted the
treatment of its full year’s asset tax in one quarter, as required under
international accounting rule IFRIC 21. The $2.1 billion in quarterly profit
that it made back then, down from $2.5 billion in the year prior period,
currently represents less than one month of profit for the group.
NCB Financial initially booked its gain on the Clarien acquisition at $1.47
billion, but that was restated to $4.4 billion with the release of its most
recent earnings report published last month. The financials show that the
variance was due to a $3.4-billion increase in intangible assets to $5.1
billion, and a $2 billion reduction in ‘other liabilities’ to $512 million.
NCB Financial reported that the group acted on provisional information at
the time of the Clarien acquisition in December 2017 and restated the
amount, as allowed under general accounting rule IFRS 3. The rule allows
a measurement period of up to a year to account for new information
after acquisition.
“The group’s share of net identifiable assets acquired was determined
provisionally from the financial statements of Clarien as at December 31,
2017. On that basis, $1.47 billion was recognised as negative goodwill on
acquisition of subsidiary in the income statement for the quarter ended
December 31, 2017,” said the banking group. “This amount was
subsequently revised to $4.4 billion upon finalisation of the determination
of the fair value of the net assets (including intangible assets) acquired.”
Last December, NCB sold its remaining stake in JMMB Group for $9.2 billion
to Proven, which resulted in a $3.3-billion gain on the disposal. The
banking group initially acquired 428.8 million shares in JMMB back in 2011
for about $3.45 billion. It previously sold 100 million of the shares in
September to PanJam.
Despite JMMB’s regional presence in Jamaica, Trinidad and Dominican
Republic, which appears to align with NCB’s own regional push, the
banking conglomerate’s Deputy CEO and Chief Financial Officer Dennis
Cohen argued they could make better use of the capital.
“We have to make strategic choices. The fact is that we do not have
unlimited capital and we have to make decisions on what we believe will
provide the best shareholder value,” Cohen said at the bank’s annual
general meeting held ON January 25.
<< Back to news headlines >>
CanaQuest signs agreement with Jamaican Medical Cannabis
Corporation Sunday 10th February, 2019 – Jamaica Observer
CanaQuest Medical Corp, a developer of cannabis- infused health
products and pharmaceuticals, has signed a preliminary agreement with
Jamaican Medical Cannabis Corporation (JMCC) to provide processing,
packaging, warehousing and global distribution services for CanaQuest in
Jamaica.
JMCC is a Toronto-headquartered company, with rapidly expanding
cannabis cultivation, processing, and distribution operations in Jamaica. It
was recently announced that the company has acquired 49 per cent
ownership of Kirkpatrick Farms on the outskirts of Montego Bay.
The farm, which spans some 250 acres, will be used for the cultivation of
medical cannabis. It will also add to JMCC's existing farming sites, bringing
total cultivation for the company to one million square feet or 23 acres of
high-quality Jamaican medical cannabis for 2019.
In line with JMCC's expanding production, CanaQuest, formerly known as
Algae Dynamics Corp, recently completed a supply agreement with
JMCC for the provision of cannabis to CanaQuest or its nominated third-
party permitted buyers, for medicinal purposes.
The supply agreement ensures a source of high-quality raw material to
support CanaQuests' ongoing research programmes with two prominent
Canadian universities. The recently signed preliminary agreement is
intended to provide production and global distribution capabilities for
products developed from these research programmes.
A final agreement between both companies is anticipated to be
completed and signed by March 31, 2019.
Initially, CanaQuest expects to launch product formulations derived from
research conducted at London, Ontario-based Western University, led by
Dr Steven Laviolette. According to the company, Dr Laviolette and his
team are global leaders in research for more effective use of medical
cannabis for mental health.
“They have identified safer and clinically superior cannabinoid
formulations aimed at treating the symptoms of various psychiatric
disorders such as anxiety, depression, schizophrenia, and post-traumatic
stress disorder, while eliminating the negative side effects associated with
traditional marijuana formats,” the company said.
CanaQuest also funds a research programme with Ontario's University of
Waterloo on cannabis oil and its constituents, in the context of developing
formulations to treat colorectum, pancreas, breast and prostate cancers.
To date, CanaQuest has allocated C$1.69 million to these two university
research programmes.
“Our agreements with JMCC allow us to focus on our mission of
conducting research in support of cannabis-related product
development and the creation of unique product formulations for
patients. The commitment of JMCC and our shared goals provide an
opportunity to positively impact global medical and nutraceutical
markets,” CanaQuest President Paul Ramsay stated.
JMCC Chair and CEO Diane Scott said the expansion of the relationship
with CanaQuest represents a natural extension of her company's
integrated service offering.
“We founded JMCC with the goal of becoming the leading cultivator of
high-quality, Jamaican medical cannabis for the world. We're very proud
that CanaQuest is now entrusting to us the manufacturing, packaging
and global distribution of their novel products,” she said.
“It's exactly what we believe we can do best: to support those medicinal
industry players who want to concentrate on research and developing
innovative products to help patients around the world,” Scott continued.
The parties intend to operate under the proposed production and
distribution agreement to ultimately distribute the medicinal products in
jurisdictions where the combination of cannabinoids and botanical plant
extracts are permitted or approved, including after the completion of any
required human trials.
Additionally, any distribution of these product formulations will remain
subject to JMCC and CanaQuest satisfying relevant licensing and other
local requirements in jurisdictions where such products are manufactured,
imported and distributed.
<< Back to news headlines >>
PM promises to update country soon on external debt situation Sunday 10th February, 2019 – Barbados Today
February 10, 2019
Prime Minister Mia Mottley today promised that she will update the
country soon about the Government’s external debt restructuring plan.
“Those discussions are continuing, and the public will be advised shortly of
what we will be doing with respect to the foreign debt situation,” Mottley
said on the call-in programme Down To Brass Tacks on Starcom Network
Inc.
“The truth is, the foreign debt has always been the smallest part of our
overall debt, it’s just over 20 per cent. But we do anticipate that we will
have to bring resolution to that within the next few weeks to months.”
External creditors have been awaiting word from Government on debt-
restructuring following Mottley’s announcement, shortly after taking office,
of a suspension of payments due on debts owed to external commercial
creditors.
Mottley said then that her government had inherited more than $15 billion
in public debt.
An upbeat Mottley today sought to assure Barbadians that the country
will be successful in building a new society, that gives people opportunity,
that is rooted on the premise of fairness and justice and that give
Barbadians a sense of pride again.
“Barbados is coming back economically and socially. We’re not there yet,
we have to stay the course, we have to remain focused,” she said.
“The community – regionally, internationally and locally, the majority of
people with whom I interact – feel that Barbados is coming back and
want to give us that chance, but they recognize that this is not a 100-
metre race. This is a marathon. We are passing all the right signs, we’re
doing all the right things, but we cannot replace time. Time has to be
gone through in order for us to finish the course.”
She described the Barbados economy as a patient that was suffering for
a decade.
“The truth is that the medicine has only been applied for the last six
months – so let’s give it a chance. So far, the medicine which is being
applied is far less bitter than it might otherwise have been,” Mottley said.
“There are those who did not believe that the domestic and the foreign
debt restructuring should be part of the equation; and we said no,
because the saving that we get in interest are approximately $500 million
and the savings that we will get this year in amortization and principal is
about $800 million.”
<< Back to news headlines >>
More layoffs to come, PM Mottley says Sunday 10th February, 2019 – Barbados Today
Workers at State-owned enterprises are being put on notice that there are
still more layoffs to come as Government seeks to manage a huge wage
bill.
“We’ve sent home so far just about 1,000 [people],” Prime Minister Mia
Mottley said today on the call-in programme Down To Brass Tacks on
Starcom Network Inc.
“There are still a few more layoffs, what I call the peak structural layoffs, to
come in one or two State-owned enterprises.”
The Prime Minister said the additional layoffs will come during Phase three
of the Government’s restructuring programme for the Barbados economy.
“Phase three starts in April this year and goes to December 2020 to deal
with some of those State-owned enterprises that require a greater amount
of time and process to go in and do what has to be done so that you
don’t end up without the services that have to be delivered.”
Noting that Government’s entire wage bill was $780 million, she said some
10,000 people would have been placed on the breadline if her
administration had not undertaken the Barbados Economic Recovery and
Transformation Plan (BERT).
“No wonder you heard the former Governor of the Central Bank talking
about sending home about 5,000 or 6,000 people . . . But imagine what
would have happened if we’d sent home five times that [1,000], if you
have the kind of crying and dislocation that we’ve seen, legitimately so,
from what we sent home,” Mottley said.
The Prime Minister also addressed what she said was the recent chatter
about overtime, noting that she has no fundamental issue with a
suggestion made by the trade unions.
“The restriction of overtime was not a suggestion of the Government. It
was a suggestion that came from the unions in the social partnership. We
think that it is a fair comment because if we can restrict overtime to allow
less people to be sent home and laid off, I think that is a fair thing,”
Mottley said.
“These are some of the things that we have been dealing with and I ask
Bajans to stay focus. You cannot say that the Government does not have
a growth programme when the same Barbados Economic Recovery and
Transformation is premised on a growth programme and not only austerity
measures.”
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IMF, World Bank ‘reviewing VAT, other taxes’ Saturday 9th February, 2019 – Barbados Today
Government has asked the International Monetary Fund and the World
Bank to helps reforming its indirect tax system, Drector of Finance and
Planning Ian Carrington has disclosed.
The multilateral lending agencies have been invited to advise on how to
bring indirect taxes into balance corporate taxes, he said.
IMF tax officials were currently here examining the Value Added Tax,
income tax, stamp duty, and betting and gaming taxes among other
indirect taxes, Carrington revealed.
He said the officials were holding talks with the acting Revenue
Commissioner, the Comptroller of Customs and all of the Government ‘s
revenue agencies, along with the private sector and the Small Business
Association.
Carrington said: “The reason Barbados has to reform the system is
because we have made changes to our corporate taxes, as a result of
seeking to be compliant with the European Union and the OECD. We
have removed the ring fence between the international business
companies and the domestic ones by reducing their corporate tax rate
down to the maximum of five per cent.
“As a result, this creates the opportunity for individuals to corporatize, that
is, set up themselves as a business to seek to pay a lower level of taxes by
making themselves appear to be a business.”
As Barbados continues in an IMF programme, Government had to make
sure there were no deficiencies in revenue collection, the government’s
senior civil servant on the economy said.
Carrington continued: “The result is to bring both the direct and the
indirect taxes back into balance. Therefore, we are pressing ahead to
reform the indirect tax system by the next financial year [which starts in
April], and so the IMF tax team has to get back to Government with its
suggestions before the end of this financial year.”
He added that the World Bank will give technical help to the government
to implement policy changes and ensure that its systems and procedures
were correct.
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Guyana tops list of countries filing cases at CCJ Monday 11th February 2019 – Kaieteur News
Guyana has filed more cases with the Caribbean Court of Justice than
any other country between 2017 and 2018.
In its most recent annual report, the Caribbean Court of Justice (CCJ) says
it has recorded a 32 percent increase in the number of matters being filed
compared to the previous year.
For the judicial year, 2017 to 2018, Guyana filed 17 cases with the Trinidad-
based CCJ. This is in comparison with two cases filed from Dominica, six
from Belize and seven from Barbados. These represent matters that were
filed in the court’s appellate jurisdiction.
The report said that civil applications and appeals represented the clear
majority (88%) of the new matters, while the number of appeals filed in this
year more than doubled the number filed in the previous judicial year
(2016-2017).
Of the 32 matters filed by the four-member countries, there were 19
Notices of Appeal and 13 applications for special leave.
APPLICATIONS FOR SPECIAL LEAVE
According to the report, as part of the CCJ’s efforts to efficiently deal with
cases, four of the thirteen Applications for Special Leave to Appeal that
were filed in the year under review were treated as the substantive
hearing of the appeal.
This meant that the parties were not required to file a separate Notice of
Appeal but filed one set of submissions for the hearing of the Application
for Special Leave and the Hearing of Appeal.
“In the 2017 to 2018 court year, 43% of cases were disposed within six
months of filing, while 76.6 percent of cases were disposed within one year
of filing. During the period under review, the clearance rate for matters
filed reflect a rate of 96 percent for disposed matters against new matters.
This reflects a 20 percent increase in the clearance rate above the last
judicial year’s figure.
As at 31st July 2018, there were eleven pending matters before the Court
for the period of three to nine months,” the report added.
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Exchange rate for US dollar climbs Sunday 10th February 2019 – Kaieteur News
Something is happening to the US dollar on the local market.
In recent weeks, the rates have been climbing.
At the banks, the buying rate for notes was between $207-$208 for US$1,
the selling rate was $210 and $211. On the streets, the rates were much
higher.
At L. Mahabeer and Son Cambio, on King Street, one of the more
prominent of the money exchange operations, US cash was being bought
for $216 and sold for $219.
There are reports that it is sold much higher on the streets because of a
shortage in cash.
On Friday, Governor of Bank of Guyana, Dr. Gobind Ganga,
acknowledge that there is a shortage of US currency.
At Demerara Bank, the rates for transfers on Friday was buying $208 and
selling $213.
At GBTI, it was $208 and $211, according to its website.
The local US cash supply had been badly affected in 2016 after Bank of
America announced it was ending its relations as a correspondent bank
to Guyana.
The move had come as the US banking giant cut its risks in the Caribbean
amid ongoing concerns over anti-money laundering activities.
Low profitability, concerns about reputations, and increased Anti-Money
Laundering and Countering the Financing of Terrorism (AML/CFT) scrutiny
have all contributed to concerns about de-risking.
The climbing US rate has not been helped by a contraction of the
underground economy due to a tightening up by authorities.
The US’ Drug Enforcement Administration (DEA) opened its office in early
2016 with a number of busts highlighting what has been described as
success for them.
However, the absence of cash from the drug transactions has deeply
impacted the situation, affecting the rates.
However, another side of the story of what is leading to the cash situation
is emerging.
According to cambio and street operators, there has been a steady
demand from embassies and other companies which are paying workers
in US currency.
There is growing evidence too, that the thousands of US dollars coming
here from Cuban traders have not been making it to the normal system.
It was reported that 1,000 Cuban are coming here to shop weekly. That
translates to at least US$4M monthly coming from that Spanish-speaking
country in trade.
They come with mainly US dollars. The monies are not really going to the
cambios or the banks.
Rather, it has reportedly ended up in the Chinese stores that the Cubans
shop at.
According to officials, there have been warnings for the Chinese not to
accept US, but it appears that Central Bank and other authorities are
unwilling to clamp down.
The Cubans have been utilizing the no-visa arrangements here, while
staying in guest houses, eating and using transportation.
The cash from the trade is quietly gathered up and shipped out, other
than legal means, to Suriname and other countries, Kaieteur News has
been told.
At least one large Chinese trader has been named as the business that
has been helping to sop up the US dollars.
Trinidad companies operating here have also been known to have been
aggressively buying up the US currency.
The rise in the US dollars is deeply worrying as it ultimately affects the prices
of goods coming in.
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Barama repositions itself after scaling down operations Saturday 9th February 2019 – Kaieteur News
Minister of Finance Winston Jordan says the government will be examining
the provision of more concessions for the local manufacturing industry.
While the administration has already made significant inroads in this
regard, he said there is still more that could be offered.
The Finance Minister made the comments to employees of the former
forestry company Barama, during a tour of the new operations on
Thursday.
The Malaysian-owned company, which officially ceased operations in
Guyana back in October 2016, is now under the management of
Guyanese, however, with a much smaller workforce. The pullout saw
some 600 workers being retrenched.
Today, the company has been “repositioned” and has a new “paradigm
shift”, according to General Manager, Mohindra Chan. He said, instead of
forestry and logging, the manufacturing company is now focused on the
production of Plywood, adding that the company remains the largest in
the Caribbean.
Chan said the intervention by the Coalition Government has made things
easier for companies involved in the manufacturing industry and for that,
he was sincerely grateful.
“Minister Jordan, you are the Minister that has listened to our concerns
through the GSMA, and today we have a situation where we do not have
to pay VAT on logs, and we do not have to charge VAT on plywood.”
He said it was the Finance Minister who also saw the need to establish a
consolidated stockyard, where $50 million was allocated last year. While
he is disappointed that other industries did not take advantage of it,
Barama has made a proposal of how it could make use of the money.
Another intervention by the go vernment, he said, was the $120 million for
forest enumeration. Chan said while Barama is no longer involved in
logging, there is still much to be discovered in the industry.
He said the Minister also spearheaded the increase of the Common
External Tax to be increased in lumber, which has been very effective as
there has been a regrowth in the lumber market.
Chan also praised the extensive work done by the administration on the
roads in the interior. He said the inconvenience experienced in the past is
no longer there.
According to Chan, going forward with new management, the company
hopes to increase its revenue base and re-attract investors.
“We see the opportunities to improve the efficiencies and reduce the cost
of the operations by the introduction of more modern manufacturing
equipment, acquiring of other support equipment and improving waste
utilisation,” he said.
Minister Jordan said the government stands with all businesses, especially
those in the manufacturing sector. He reminded that the government
reduced the corporation tax for manufacturing businesses to 25 percent,
a very competitive rate in the Caribbean. He assured that the
government will not abandon the sector.
<< Back to news headlines >>
Govt Admits Work Left on Vat Refunds Friday 8th February 2019 – Tribune 242
The government does not have the VAT refund process “down pat like we
should”, a top official has admitted, although “some headway” was
being made.
Marlon Johnson, pictured, the Ministry of Finance’s financial secretary,
told Tribune Business that itself and its agencies were developing “internal
targets” and key performance indicators (KPIs) in a bid to eliminate the
delays incurred by businesses in obtaining due credits/refunds.
Acknowledging the “tremendous strain” imposed on companies and their
cash flow when large refund sums did not materialise, Mr Johnson said the
Ministry of Finance was determined to “stop the firefighting” on this issue.
“We have had issues,” he conceded. “We do have issues arise from time
to time. I can say that over the last two to three months we have been
working to ensure we streamline the process for VAT refunds, set some
internal targets and risk profiling, to allow us to do a better job.
“This is definitely in our work plan, and we’re beginning to see
improvements. We’re still not satisfied that we have the process down pat
as much as we should. There are sometimes delays in the refunds, and we
are working through those and want to set some timelines and key
performance indicators.
“We’ll use the rest of this quarter to tidy up. The Department of Inland
Revenue team is focused on Business Licences, but as we continue the
reform effort down there, we will certainly have KPIs we can stand
behind,” Mr Johnson continued.
“Bit by bit we are improving what we do and how we do it, improving the
responsiveness. We are making some headway, but there is still some to
go. Our goal is to make life easier for businesses. We appreciate that
when they’re out of cash tremendous strain is put on business.
“We try to expedite things where we can. We try to avoid addressing
these things as a one-off. It’s more important to improve this process so it
doesn’t become an issue and we can stop the fire-fighting, with persons
also understanding the refund process. We don’t want to put pressure on
businesses and disadvantage them.”
Mr Johnson’s comments came after Sir Franklyn Wilson, the Arawak Homes
and Sunshine Holdings chairman, recently voiced fears about renewed
“tardiness” relating to VAT refunds generally, warning that the issue “could
shake” still-fragile business and investor confidence.
“In the last two business days I attended two board meetings, and, in both
instances, the chief executive was making the point that the company’s
cash flow was being adversely affected by the inability to get VAT refund
payments on a timely basis,” he told this newspaper. “Every company
operates on the basis that VAT receivables from the Government are as
near to cash as you can get.
“If that turns out not to be the reality, it could shake a lot of commerce in
the country. I make these comments in a public way because I believe, in
the interests of the economy more broadly, the authorities provide some
evidence and assurance that any hiccups are being addressed and
refunds will happen as the private sector has been led to believe they will.
“The implications are significant. My genuine interest is that the
governance of the country takes place in a way that fosters national
development. I bring this to the authorities because they may not be
aware of it. Hopefully, they should be aware of it and prevent it from
becoming a problem.”
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GAS PRICES ON THE RISE AGAIN Saturday 9th February 2019 – Amandala News
Belizeans were recently celebrating after all gas prices fell below $10 on
January 17, but now those prices are on the rise again. Effective today,
February 6, diesel and kerosene prices will rise 66 cents and 63 cents
respectively.
This follows a 24-cent rise in the price of premium gas, which occurred on
January 29, and a 20-cent rise in regular gas prices on January 25.
Diesel prices have risen from $9.31 to $9.97 and the price of kerosene from
$6.82 to $7.45. The price of premium gas continues to be $10.19, and the
price of regular gas remains at $9.51.
Today’s increase is the fifth time for 2019 that gas prices have changed.
The prices at the start of the year were $10.47 for premium gas, $9.31 for
regular gas, $9.83 for diesel, and $7.34 for kerosene.
Comparing those to the prices now, the price of premium gas has
increased by 28 cents, the price of regular gas by 20 cents, diesel’s price
by 14 cents, and kerosene’s price by 11 cents.
<< Back to news headlines >>
Panama growth for 2019 projected at 5,5% as deficit hits $1.339 billion Friday 8th February 2019 – Panama Newsroom
Panama’s government said on Friday, February 8 it that the economy
grew by 4.2% in 2018, a year in which the fiscal deficit hit $1,339 billion 2%
of gross domestic product (GDP).
"We estimate that (the growth) is 4.2%, but we are waiting for the
Comptroller's Office to give the official figure on March 1. That estimate is
similar to that projected by both the World Bank and the International
Monetary Fund," said Minister of Economy and Finance, Eyda Varela de
Chinchilla.
The initial projection 5.5%, but this figure was adjusted more than one
percentage point by the "multiplier effect" of a long strike in the
construction sector, which represents about 18% of Panamanian GDP,
said the minister.
Hundreds of works projects, including mega-projects such as the second
subway line in Panama City were stopped for a month between April and
May due to a strike called by the country's main union to demand salary
increases.
Panama's economy grew by 5.4% of GDP in 2017, up from 5% in the
previous year, driven by activities related to the external sector such as
the Interoceanic Canal and air and financial services.
Varela de Chinchilla said that the prospects for this year are higher,
around 5.5%, because the second metro line and the new terminal of
Tocumen Airport, as well as exports from a huge copper mine, are
expected to enter into operation.
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Labour minister Stephenson King said unemployment further reduced:
“More citizens working” Friday 8th February 2019 – St. Lucia News
Under the heading “More Citizens Now Working”, Labour Minister
Stephenson King has announced a reduction in unemployment over the
last quarter.
Writing on his Facebook page earlier today (Feb. 8), King said he is
“heartened” by the news.
He said official statistics show that overall unemployment declined to
16.2% from 23%, and youth unemployment, from 41% to 36%.
“This is only the start!” said King, who is also the minister for infrastructure,
ports and energy.
The former prime minister credited the results directly to the policies of his
United Workers Party (UWP) government. But he said the government is still
not satisfied because they want more people to get employment.
“We want to put more people to work, this is why we will continue to
support innovations like Ojo Labs and others who have employed a
significant number of youths in recent months,” he said.
King said with construction “activity poised to boom” in the coming
months, the government expects more people to get jobs, further
reducing the unemployment figures.
He threw a jab at the opposition Saint Lucia Labour Party’s public meeting
held last Thursday night on the Castries market steps.
“We are working, and the results continue to show. (Bet they didn`t tell
their Market Steps followers last night. The dismal turnout indicates even
more of their once supporters are now hard at work).”
The Castries North parliamentary representative concluded:
“Congratulations to the people now employed, continue to do your best.
To those searching for work; keep your head up and stay positive, your
blessing is coming soon. It’s not a time to be idle and or complain –
shoulders to the wheel, let’s work!”
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