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REGIONAL
Trinidad and Tobago
Fishermen continue demonstration
FISHERMEN continue to stage protest action against the Government's
decision to stop the sale of regular gas.
Guardian Holdings Limited adds 5.5%
LAST week saw 2,120,567 shares traded on the first-tier market, which was
a significant increase of 333.00 per cent on the previous week's a total of
489,749 shares crossing the floor.
Pan Trinbago moves into new office...but no $$ to pay pan players, says
president
TWO months after being served with an eviction notice, Pan Trinbago
received the keys to a new office yesterday. However, pannists are still
operating without any money.
Barbados
Consumers to pay less for gasoline and diesel
Effective midnight tonight, the price of gasoline and diesel will decrease,
while that of kerosene and liquefied petroleum gas (LPG) will remain
unchanged.
Ross University opens Barbados campus
The state-of-the-art Ross University School of Medicine was officially
opened last night at the Lloyd Erskine Sandiford Centre.
Jamaica
JN Bank to restart MAC projects in 2019
JN Bank, through the JN Foundation, has promised to re-establish its JN
Bank Member Advisory Council (MAC) in 2019, to provide its members
with direct engagement and participate in the identification and
selection of projects to positively impact their communities, and ultimately
the wider society.
Jamaica continued
Hampden Estate prepares for greater rum demand
Hampden is in fact used by a number of other Jamaican rums to flavour
their own brands. Many rums marketed as Jamaican rum which are
manufactured in foreign countries also utilise Hampden for the same
purpose. It is used in the production of colognes and perfumes such as
Chanel and in a wide variety of foods such as chocolate and Haagen
Dazs rum and raisin ice cream.
Main Event earns $63m in revenues from weddings
Main Event Entertainment Limited, the event management, production,
promotions, and digital signage solutions company, earned more than
$63 million from the wedding market in its first year of venturing into that
market.
Realtors expect increase in property sales this year
Realtors say they expect an increase in demand for first-time homebuyers
in 2019 even as they indicate that those who rent homes are experiencing
harder times as property owners list with Airbnb, the online community
marketplace that connects people looking to rent their homes with those
who are looking for accommodation.
Guyana
Natural Resource Fund Bill not perfect
Since the passage of the Natural Resource Fund Bill, there have been
concerns that the advice of international and local experts on the
loopholes contained therein for risky investments were not properly
addressed. But Finance Minister, Winston Jordan has addressed these
concerns by stating that there is no such thing as a perfect Bill.
The Bahamas
Bahamas’ GDP Per Person Lower Than Pre-Recession Era
The Bahamas’ real GDP per capita is lower now than it was 11 years ago
before the start of the global recession, the Inter-American Development
Bank (IDB) has revealed.
The Bahamas continued
Business Licences Calculated on Vat Revenue From 2020
Business Licence fees will be based on “positive VAT-rated revenue” from
2020 onwards in a move that “removes some of the ambiguity”
surrounding how they are calculated.
Government Breaking Down ‘Offshore’ Banking Divide
The Government yesterday broke down the divide between Bahamian
domestic and international financial institutions to meet European Union
(EU) demands.
St. Kitts and Nevis
St Kitts-Nevis opposition reaffirms pledge to review and revoke economic
citizenships granted illegally
Following a statement last month by the leader of the opposition, former
prime minister Dr Denzil Douglas, to the effect that he will revoke the
citizenship of any applicant who is found to been illegally granted St Kitts
and Nevis citizenship by investment (CBI), a spokesperson for the
opposition St Kitts-Nevis Labour Party confirmed to Caribbean News Now
on Friday that this was indeed its policy position if and when it is returned
to government.
Haiti
2018, a dark year for the agricultural sector
In his message of the new year, Agronomist Talot Bertrand, Secretary
General of the Haitian NGO "Promotion for Development" (PROMODEV),
an organization committed to sustainable development in Haiti said that
2018 had been a dark year among others in terms of loss of human
resources recalling that "[...] 6 Engineers-Agronomists, 2 senior executives
and the former Administrator of the Ministry of Agriculture, Gabriel Pierre-
Louis have died".
Low demand for agricultural labour
According to the latest report from the Famine Early Warning Systems
Network (FEWS NET) at this time of year, agricultural activities are
dominated by the summer/fall harvest and preparations for the winter
campaign.
Haiti continued
Deterioration of food security at the national level
Following the drought that hit Haiti in June 2018 especially in the North, the
Northeast, Grand'Anse, South-East and West, the National Coordination of
Food Security (CNSA), conducted during the month of October 2018, a
National Survey on Food and Nutritional Security (ENSAN) in collaboration
the World Food Program (WFP) and the United Nations Food Fund (FAO)
among others.
Antigua and Barbuda
Prime minister threatens compulsory acquisition of Scotiabank Antigua
Compulsory acquisition is one of the measures being considered by the
Prime Minister, Gaston Browne, as he continues to demand that the
owners of Scotiabank revisit the sale of the Antigua branch to Republic
Financial Holdings Limited of Trinidad and Tobago.
Gov’t extends Christmas Barrel Initiative
The government is extending the Christmas Barrel Initiative by one week to
accommodate barrels which arrived in the country on time, but are yet to
be processed by the Customs and Excise Division. The highly anticipated
incentive usually takes effect from December 1 until January 4.
Local economist disapproves of new tax
Local economist Everett Christian says the intended 10 percent “windfall
tax” to fund the fourth landed campus of the University of West Indies
(UWI) in Antigua is a bad move.
APUA to acquire sub-sea cable in multi-million-dollar investment
Antigua Public Utilities Authority (APUA) will be allocating EC $80 million
towards the purchase and installation of its own sub-sea cable. This
revelation was made by Prime Minister Gaston Browne during his New
Year’s address to the nation. “APUA will invest $80 million to acquire its
own subsea cable and to democratize access to the internet through the
provision of more affordable, reliable and faster internet service to
residents,” he stated.
Antigua and Barbuda continued
Post Office workers vow to keep up protest
As the first working day of the new year got underway yesterday, over 200
workers at the General Post Office staged a sit-in because, according to
them, promises made in an agreement last November had not been
kept. The understanding between the workers and the Public Works
Department (PWD) after they had protested poor working conditions, was
that they would be temporarily relocated until the problems at their
workplace on lower High Street had been resolved.
British Virgin Islands
Gov’t spends over $20M on consultancies in last 6 years, BVI Airways the
single largest spend
The government of the Virgin Islands, inclusive of its statutory bodies,
expended more than $20 million on consultancy services alone in the last
six years.
Dominica
Dominica Business Forum to hold consultation to help private sector
“regain its voice”
The Dominica Business Forum Inc. plans to provide an opportunity for the
private sector to break its silence on “numerous issues relating to the
economic development of Dominica.”
End of Year Gifts for Dominica’s Tourism Industry
The Discover Dominica Authority is pleased to inform of the end of year
gifts that the local Industry has received. Over the past few weeks,
various stakeholders and destination Dominica have received good news.
Dominicans continue to benefit from post-Maria work of IOM
Dominicans continue to benefit from the work of The International
Organization for Migration (IOM) which has been assisting with the
recovery and reconstruction of the island after the destructive passage of
hurricane Maria in September, 2017.
The Dominican Republic
The country achieves record international reserves of US $ 7.6 billion
International reserves have reached an unprecedented level in the
economic history of the Dominican Republic, reaching US $ 7.6 billion,
taking out free zones, according to the latest official data.
St. Vincent and the Grenadines
EU signs EC$18 million road programme with St Vincent and the
Grenadines
The European Union has signed a financing agreement of EC$18.35 million
(€5.98 million) with the government of St Vincent and the Grenadines for a
road management and rural road improvement programme. This
programme will be implemented by the Caribbean Development Bank
(CDB) under an agreement with the European Union.
INTERNATIONAL
United States
Dollar skids as U.S. rate pause bets weigh
The dollar weakened on Monday on growing bets the U.S. central bank
will halt its multi-year rate hike cycle, with the euro and Norwegian crown
leading gains among its rivals.
Stock futures flat after Wall Street's strongest surge in new year
U.S. stock index futures were little changed on Monday after Wall Street’s
biggest one-day surge in the new year on Friday, as focus shifted to the
latest round of trade talks between the United States and China.
United Kingdom
UK new car sales slump ahead of Brexit "existential threat"
British new car sales in 2018 fell at their fastest rate since the global
financial crisis a decade ago, hit by the collapse in demand for diesel, as
the industry body warned of the existential threat to the sector posed by
Brexit.
United Kingdom continued
Sterling gains ahead of parliamentary debate on Brexit deal
Sterling rose to a one-week high on Monday as traders prepared for the
British parliament to reconvene this week and debate Prime Minister
Theresa May’s Brexit withdrawal agreement.
Europe
Euro zone bond yields inch down, French/German bond yield gap above
50 bps
Most government bond yields in the euro area inched lower on Monday,
reflecting weaker stock markets, but held above lows hit last week, in a
sign that investors’ worst fears about the global growth outlook have
abated for now.
European shares fall into red as worries about economic growth derail
rally
European shares fell into negative territory on Monday, giving up earlier
gains as lingering worries about the euro zone economy, Brexit and the
U.S. government shutdown offset hopes for a truce between Washington
and Beijing over trade.
China
China's FX reserves fall in 2018 as slowing economy, trade war weigh
China’s annual foreign exchange reserves fell for the third time in four
years in 2018 as the yuan came under strong selling pressure from the
cooling economy and escalating Sino-U.S. trade tensions.
Japan
Nikkei tracks sharp Wall Street gains; machinery, exporters attract gains
Japan’s Nikkei rose on Monday, tracking sharp gains on Wall Street as
dovish comments from the Federal Reserve chairman helped ease some
of the market’s worries about a slowdown in global growth.
India
India's central bank likely to pay bumper interim dividend to help Modi
government
India’s central bank, having changed leadership last month following a
clash with the government, is likely to transfer an interim dividend of 300-
400 billion rupees ($4.32 billion-$5.8 billion) to the government by March,
according to three sources with direct knowledge of the matter.
Global
Central banks, U.S. employers aid world stock recovery
A set of strong employment data in the United States, decisive action from
the Chinese central bank and dovish messages from U.S. Federal Reserve
chief Jerome Powell combined to push world stocks further off recent lows
on Monday.
Oil prices gain 2 percent, extending rally from December lows
Oil prices rose by 2 percent on Monday, extending a rally from
December’s 18-month lows with support from OPEC production cuts and
steadying share markets.
Ross University opens Barbados campus Sunday 6th January, 2019 – Barbados Today
The state-of-the-art Ross University School of Medicine was officially
opened last night at the Lloyd Erskine Sandiford Centre.
Prime Minister Mia Mottley, Minister of Education Santia Bradshaw,
president of parent company Adtalem Global Education, Lisa Wardell,
Dean William Owen Jr and Vice President of Operations Carey James,
university officials, Members of Parliament and business stakeholders were
present as the 40-year-old institution opened its new permanent campus
in Barbados with classes expected to begin on Monday.
The LESC-based institution consists of a digital anatomy and medical
imaging lab, living anatomy lab, clinical lab space with SimMan 3G
advanced patient simulator.
RUSM Barbados is one of five accredited simulation campuses to be
established outside of the United States. It also has 14 small group
classrooms on campus, a digital library, faculty lounge, faculty meeting
space, faculty work space which is shared space with a collaborative
open floor plan.
According to Prime Minister Mottley, the LESC facility had been restored to
its educational purpose.
During her feature address, Mottley urged Barbadians to embrace the
1350 students like their own.
“Let us embrace the children of Ross recognizing that they are our
children, they are our partners and our family. Let them understand what
a wonderful place this country will be,” she said.
She assured that her Government will be looking to make good on its
promise of a partnership with Adtalem’s for-profit nursing school
Chamberlain University and the Barbados Community College.
“There is a cry across the world for nurses, good nurses . . . We have to
reset the things that our population see as possible opportunities for
careers and regrettably many young girls have not seen the nursing
profession as that profession that can create that career and vocation for
them as their grandparents and great-grandparents have done,” said
Mottley.
“The ability of the Caribbean to continue to produce large numbers of
nurses is constrained only by our capacity to educate them and we stand
here today ready to work on that partnership with you to significantly
expand the number of nurses that we can produce not to send out to the
rest of the world and immigrants but to send to the rest of the world for
sale of services for 6, 9 ,10 months never forgetting where you come from
and where you might return to,” she continued.
The construction projects for the living and academic facilities has
provided work for over 1,000 Barbadians and the annual economic
benefit of the RUSM is estimated to be between US$55 to 65 million.
President of Adtalem Lisa Wardell, revealed that to date there are 40 new
permanent employees in Barbados with an anticipated number of 150 for
the new year.
While welcoming RUSM flagship to Barbados, Minister of Education,
Technological and Vocational Training, Santia Bradshaw also expressed
her anticipation at the future collaborations that her Ministry and the
University will embark on to ensure high quality education.
“While the economic impact may be apparent, their commitment to
collaborative research and development alongside our local tertiary
institutions aligns well with our strategic goal to wider access to allied
health programmes in Barbados,” Bradshaw said.
“Ross University School of Medicine will certainly contribute to Barbados
moving forward the modernization of community health care structures,
while at the same time, becoming a stronger competitor in the global
health education arena,” she added.
<< Back to news headlines >>
EU signs EC$18 million road programme with St Vincent and the
Grenadines Friday 4th January, 2019 – Caribbean News Now
The European Union has signed a financing agreement of EC$18.35 million
(€5.98 million) with the government of St Vincent and the Grenadines for a
road management and rural road improvement programme. This
programme will be implemented by the Caribbean Development Bank
(CDB) under an agreement with the European Union.
The overall objective of the intervention is to enhance the quality of and
to improve climate change resilience of the road network in St Vincent
and the Grenadines, in particular rural roads. Under the initiative
approximately ten kilometres of road will be repaired and upgraded, and
a national road maintenance database established. The database will be
instrumental in the efficient and proper maintenance of roads in the
country in general and also at times of damage from hurricanes and
flooding. Such efficient maintenance is expected to contribute to the
stimulation of economic activities in rural communities and reduced
vulnerability to climate change.
To reduce the adverse effects of natural disasters in infrastructure, and
therefore in rural roads contributing to their sustainability, the road
maintenance programme will incorporate disaster risk reduction
measures, such as preventative maintenance, appropriate zoning, hazard
mapping, as well as flood and landslide mitigation.
The EU welcomed the CDB’s determination to implement the project,
especially with their experienced gained from disaster risk reduction
focused on road rehabilitation in the region. This first experience in road
maintenance, using high intensity labour methods (HILO) and green
techniques, will be the pilot for eventual new interventions in other
countries on which agriculture is one of the economy’s pillars.
The European Union Delegation will continue to support St Vincent and
the Grenadines’ efforts to create a resilient road network that will ensure
sustained and inclusive economic growth of the agricultural sector in the
long term.
The EU has provided development aid to St Vincent and the Grenadines
since the 8th European Development Fund (EDF). The overall programme
budget for the current 11th EDF intervention is approximately EC$41.42
million (€13.5M) until 2020, with EC$18.40 million (€6M) earmarked as B-
envelop. St Vincent and the Grenadines also benefits from EU assistance
channelled through thematic interventions. Among others, the most
important is the Banana Accompanying Measures (BAM), with an
EC$30.46 million allocation (€9.93M), to be implemented in five years
(finishing in 2023).
<< Back to news headlines >>
The country achieves record international reserves of US $ 7.6 billion Friday 4th January, 2019 – Dominican Today
International reserves have reached an unprecedented level in the
economic history of the Dominican Republic, reaching US $ 7.6 billion,
taking out free zones, according to the latest official data.
The amount represents more than four months of imports.
It is estimated that this extraordinary level of reserves, in addition to
marking a historic milestone, will contribute to the stability of the foreign
exchange market and will allow it to successfully face any external shock
that could arise in the economy, as a result of an anticipated global and
regional slowdown.
Last week, the country’s monetary authorities reported that some US $ 30
billion in foreign exchange had entered the economy.
“Foreign currency revenues to the Dominican Republic during the year
2018, for exports of goods, tourism, remittances, direct foreign investment
and other services revenues would be around US $ 30 billion, facilitating
the accumulation of Gross International Reserves, which reached US $ 7,2
billion as of December 26, 2018, equivalent to 4.1 months of imports,
excluding free zones, “says the preliminary report on the economy’s
behaviour during 2018.
The flow of foreign currency contributes to the exchange rate stability that
at the end of last year had only depreciated by 3.8%, a percentage lower
than that registered in the other countries of the Latin American and
Caribbean region.
The external sectors, such as tourism, remittances, and exports, maintain a
remarkable dynamism, which also contributes to closing the year with a
lower current account deficit in the balance of payments.
Tourism alone, entered US $ 7.6 billion in 2018, for a growth of 6%;
remittances amounted to US $ 6,5 billion, for an increase of 10.4%, while
foreign direct investment is estimated to end around US $ 2.5 billion at the
end of 2018.
<< Back to news headlines >
Central banks, U.S. employers aid world stock recovery Monday 7th January, 2019 – Reuters
A set of strong employment data in the United States, decisive action from
the Chinese central bank and dovish messages from U.S. Federal Reserve
chief Jerome Powell combined to push world stocks further off recent lows
on Monday.
The resumption of talks between the United States and China on tariffs
also helped bring back some optimism to a market battered in recent
weeks by trade tensions and a weakening global growth outlook.
European shares held on to Friday’s strong gains after a stellar opening for
Asian bourses, pushing MSCI’s world equity index, which tracks shares in 47
countries, to its highest level in 2-1/2 weeks. It is now 6 percent higher than
its December trough.
“It is a reminder that central banks still have some firepower to deal with
lower growth prospects, and perhaps what we are also getting some
return of liquidity as investors return from the holidays and the ability to
think things through,” said Investec economist Philip Shaw.
He warned, however, that there is continued uncertainty about global
growth, trade talks between the United States and China and U.S.
monetary policy.
“There are a number of questions that remain unanswered,” Shaw said.
On Friday, U.S. non-farm payrolls data showed the world’s largest
economy added 312,000 net new jobs in December, while wages rose at
a brisk annual pace of 3.2 percent, both way above expectations.
This, along with a 100-basis point cut in China’s bank reserve requirement
ratios and comments from Fed Chair Jerome Powell that the U.S. central
bank would be flexible in its approach in 2019, has been the main driver
for the recovery.
The boost to stock markets saw them recapture all the year’s losses and
push into positive territory for 2019 so far, with Wall St’s main indices closing
up more than 3 percent by the close on Friday.
After gains of more than 2 percent in Shanghai and HK on Friday before
the U.S. jobs data and Powell’s comments, both markets added almost 1
percent more on Monday. Japan’s Nikkei reversed Friday’s plunge to gain
2.4 percent.
European stocks were more or less flat across the board, though mining
stocks .SXPP surged 1.1 percent after the reserve requirement ratio cut
from China boosted metals prices, especially steel and iron ore.
This renewed optimism saw U.S. Treasury yields rise off recent lows, and
two-year yields move back above the federal funds rate to 2.485 percent.
That is nearly 50 bps below the November peak, however, suggesting
there is still plenty of nervousness around growth prospects for the U.S.
economy.
“Clearly markets are now pricing in the risk of a cut in 2019,” said Shaw of
Investec. “That’s a big shift given until relatively recently when we’ve been
focusing on rate hikes.”
BUYING THE DIP?
Some of the stocks recovery may be attributed to investors buying stocks
once again in the belief that the market had bottomed out or had
overshot in pricing in global risks.
In any case, Friday was a strong session for Wall Street, with the Dow .DJI
recording gains of 3.29 percent, while the S&P 500 .SPX jumped 3.43
percent and the Nasdaq .IXIC 4.26 percent.
Goldman Sachs researchers expect a bounce in equity markets in 2019.
“If, as we expect, global economies slow down in 2019 but avoid
recession, and U.S. interest rates peak, there is likely to be a risk rally,” they
said in a note.
Analysts at Bank of America Merrill Lynch said that with 2,055 of 2,767 U.S.
and global companies in a bear market, it might be time to buy.
“Our Bull & Bear Indicator has fallen to an ‘extreme bear’ reading,
triggering the first ‘buy’ signal for risk assets since June 2016,” they wrote in
a note.
The U.S. dollar -- which served as a safe haven in 2018 -- fell broadly, with
the euro edging up to $1.1442 EUR= and the dollar index .DXY easing 0.3
percent to 95.90.
The currency could not even hold early gains on the yen, lapsing back to
108.21 JPY=.
Gold benefited from the diminished risk of U.S. rate hikes and rose half a
percent to $1,291.12 XAU=, just off a six-month high.
Oil prices firmed after Brent bounced about 9.3 percent last week. The
crude benchmark LCOc1 rose 118 cents on Monday to $58.24 a barrel,
while U.S. crude futures CLc1 gained 93 cents to $48.89.
<< Back to news headlines >>
Oil prices gain 2 percent, extending rally from December lows Monday 7th January, 2019 – Reuters
Oil prices rose by 2 percent on Monday, extending a rally from
December’s 18-month lows with support from OPEC production cuts and
steadying share markets.
Oil has gained nearly 12 percent since last Monday, its biggest week-on-
week rally in two years.
Brent crude LCOc1 was up $1.13 at $58.19 a barrel by 0940 GMT, rising
from December’s slide below $50, it lowest level since July 2017. U.S. crude
CLc1 rose 84 cents to $48.80 a barrel.
“Momentum is coming back into the market from very depressed price
levels,” Petromatrix strategist Olivier Jakob said. “We’ve had five
consecutive days of price gains already, so what you have today is a
continuation of that.”
The oil prices are drawing support from an agreed supply cut by the
Organization of the Petroleum Exporting Countries, well as some non-
member countries such as Russia and Oman.
OPEC oil supply fell in December by 460,000 barrels per day (bpd), to
32.68 million bpd, a Reuters survey found last week, led by cuts from top
exporter Saudi Arabia.
The aim of the production cut is to rein in a surge in global supply, driven
mostly by the United States, where production grew by nearly a fifth to
over 11 million bpd in 2018.
Record crude oil production C-OUT-T-EIA has also pushed up U.S.
inventories, which rose by nearly 17 percent in 2018 to their highest in well
over a year, according to weekly data by the Energy Information
Administration (EIA) on Friday.
More upbeat equity markets also offered support on the back of
expectations that this week’s trade talks between the United States and
China would ease a trade dispute.
The row has added to concerns about an economic downturn, which
would hurt demand for oil.
Goldman Sachs said in a note it had downgraded its average Brent crude
oil forecast for 2019 to $62.50 a barrel from $70 due to “the strongest
macro headwinds since 2015”.
Societe Generale cut its 2019 oil price forecast for Brent by $9 to $64 a
barrel and also reduced its forecast for U.S. light crude by $9 to to $57 a
barrel.
<< Back to news headlines >>
Euro zone bond yields inch down, French/German bond yield gap above
50 bps Monday 7th January, 2019 – Reuters
Most government bond yields in the euro area inched lower on Monday,
reflecting weaker stock markets, but held above lows hit last week, in a
sign that investors’ worst fears about the global growth outlook have
abated for now.
Having fallen on concern about the outlook for the world economy in the
first two trading days of 2019, European and U.S. bond yields jumped on
Friday after data showed stronger-than-expected U.S. jobs growth in
December and Federal Reserve chief Jerome Powell said the Fed will be
patient and sensitive to market risks.
There was some support for euro zone bonds on Monday after European
stock markets weakened as caution set in ahead of Chinese/U.S. trade
talks. Still, the general tone was one of reflection after last week’s yield
swings, analysts said.
In Germany, the euro zone’s benchmark bond issuer, 10-year bond yields
dipped one basis point on the day to 0.20 percent — holding above more
than two-year lows close to 0.15 percent hit last week.
“From a very short-term perspective, it’s not all complete doom and
gloom, but at around 20 basis points, the Bund yield levels suggest there is
a lot of scepticism about the economic outlook, and we have had
weaker data from Germany again today,” said DZ Bank rates strategist
Christian Lenk.
Data showed German industrial orders fell more than expected in
November.
The market’s worst fears about the global economic outlook, which have
led to aggressive repricing of the rates outlook, nevertheless appear to
have subsided.
Money market futures in the euro zone pointed to a roughly 45 percent
chance of 10 basis point rate hike by the European Central Bank by the
end of 2019, up from less than a 30 percent chance last week.
Most yields on higher-rated bonds in the bloc were slightly lower on the
day except for France, where 10-year bond yields were a touch higher at
0.70 percent.
That pushed the gap between French and German bond yields above
the 50-bps barrier and its widest level since April 2017.
French bonds have underperformed their German counterparts in recent
weeks following violent street demonstrations in France that have
prompted the government to raise public spending.
“The protests are definitely what got the move in the spread going in the
first place, but there’s also supply dynamics coming into play,” said KBC
rates strategist Mathias van der Jeugt.
The Netherlands, Austria, Germany, France and Italy are all expected to
sell bonds soon, in what is expected to be one of the busiest auction
weeks of the year.
<< Back to news headlines >>
China's FX reserves fall in 2018 as slowing economy, trade war weigh Monday 7th January, 2019 – Reuters
China’s annual foreign exchange reserves fell for the third time in four
years in 2018 as the yuan came under strong selling pressure from the
cooling economy and escalating Sino-U.S. trade tensions.
Depreciation pressure on the yuan is likely to persist this year as Beijing is
expected to roll out more policy easing measures to reduce the risk of a
sharper slowdown.
But a test of the yuan’s decade lows that was feared by global financial
markets just months ago may be less of a risk, if analysts are correct in
forecasting the U.S. dollar’s long rally is drawing to a close.
China’s foreign exchange reserves - the world’s largest - fell by $67.24
billion last year to $3.073 trillion, central bank data showed on Monday.
That compared with a $129.4 billion increase in 2017 to $3.14 trillion.
In December, reserves rose by $11 billion, after a rise of $8.6 billion in
November. The latest gain was slightly above forecasts of $8 billion by
economists in a Reuters poll.
The country’s foreign exchange regulator attributed the increase to
valuation effects due to the appreciation of non-dollar currencies and
increases in prices of major countries’ bonds held by China.
Reserves are likely to remain generally stable in 2019, the State
Administration of Foreign Exchange (SAFE) said in a statement.
UNDER PRESSURE
In a rare respite last year, the yuan rebounded 1.3 percent against the
dollar in December as the greenback faltered and Washington and
Beijing agreed to resume negotiations to end their bitter trade dispute.
But the Chinese currency still fell 5.3 percent for 2018 as a whole, its fourth
annual loss in five.
Still, the risk of heavy capital outflows from the cooling economy seem to
have been largely contained last year, thanks to timely interventions by
authorities in currency markets, tougher capital controls adopted in the
last downturn in 2014-2015, and a sudden shift in expectations for U.S.
policy tightening.
But even if the dollar falters as expected, the yuan faces the same key
pressure points this year as last.
U.S. President Donald Trump has said talks toward a trade deal are
progressing well, but it is unclear if Beijing will yield to key U.S. demands
over trade imbalances, market access, and more protection for
intellectual property.
Failure could quickly reignite pressure on the yuan, as Trump has
threatened to proceed with a sharp U.S. tariff hike on Chinese goods and
Beijing is widely expected to retaliate.
The trade dispute between the world’s largest economies has already
disrupted the flow of hundreds of billions of dollars’ worth of goods and
stoked fears of a global economic slowdown.
DOMESTIC PRESSURES
Even if a trade agreement is reached soon, analysts say it would be no
panacea for China’s economy, which is expected to continue
decelerating in coming months.
China’s manufacturing activity contracted in December for the first time
in more than two years and key credit gauges are hovering around
record lows.
On Friday, the central bank said it was cutting the amount of cash banks
must hold in reserve for the fifth time in the past year, freeing up $116
billion for new lending.
Chinese authorities have been attempting to reduce pressure on the
yuan by pledging they will not resort to massive stimulus as they have in
the past. But some analysts believe more aggressive easing measures
such as rate cuts are possible if economic conditions deteriorate more
rapidly.
Policymakers may also have to contend with a significant structural shift in
China’s global capital flows, as its current account is swinging from a
decades’ long surplus to deficit, potentially making the yuan exchange
rate more volatile.
“The PBOC appears to have sold only a small amount of foreign
exchange last month, suggesting that the renminbi has faced little
downward pressure recently,” Capital Economics said in a research note
after the reserves data.
“Pressure on the renminbi may return in the coming months, however,
given that we expect China’s economic growth to weaken further and
interest rates in China to fall further.”
The value of China’s gold reserves rose to $76.331 billion from $72.122
billion at end-November.
By volume, gold reserves rose to 59.560 million fine troy ounces at end-
December, the first increase since October 2016.
<< Back to news headlines >>
Nikkei tracks sharp Wall Street gains; machinery, exporters attract gains Monday 7th January, 2019 – Reuters
Japan’s Nikkei rose on Monday, tracking sharp gains on Wall Street as
dovish comments from the Federal Reserve chairman helped ease some
of the market’s worries about a slowdown in global growth.
The Nikkei share average added 2.4 percent to 20,038.97, rebounding
from a sharp 2.3-percent drop on its first trading session this year on Friday.
The broader Topix was 2.8 percent higher at 1,512.53, with all of its 33
subsectors trading in positive territory.
Investors this week await quarterly earnings from companies whose
business years end in February and August. Companies in focus include
Fast Retailing, FamilyMart UNY Holdings and factory automation
machinery maker Yaskawa Electric Corp. Earnings from Yaskawa, which
has large exposure to China, will be of particular interest, as traders look
for any indication of how demand from China is faring, analysts said.
On Friday, risk appetite got a huge boost on a strong U.S. jobs report.
Sentiment also got a lift as Fed Chairman Jerome Powell sought to ease
market concerns about the risk of a slowdown, saying he would be
patient and flexible in policy decisions this year.
“The tone of Powell’s remarks was considerably more dovish than (the
tone) at the Fed’s open markets committee meeting in December,” said
Hisao Matsuura, chief equity strategist at Nomura Securities.
U.S. and Chinese officials are meeting for trade negotiations starting later
Monday, the first face-to-face talks of the year.
Late on Friday, China’s central bank announced a new round of policy
easing, which frees up around $116 billion for new lending.
The move helped lift appetite for Japanese firms exposed to China, such
as those included in the machinery and electric appliance subsectors on
the Topix, said Matsuura.
Shares of industrial machinery maker Komatsu Ltd, which has large
exposure to China, jumped 6.9 percent, and tractor maker Kubota Corp
gained 4.8 percent.
Blue chip shares rose across the board, with Toyota Motor Corp tacking on
3.2 percent, Sony Corp up 3.6 percent, Nintendo rising 5.9 percent and
Mitsubishi UFJ Financial Group adding 2.3 percent.
Takeda Pharmaceutical soared 7.5 percent after releasing subscription
terms to issue new shares.
The announcement, which was in line with market expectations, brings
the company another step closer to completing its $59 billion takeover of
London-listed Shire.
<< Back to news headlines >>
UK new car sales slump ahead of Brexit "existential threat" Monday 7th January, 2019 – Reuters
British new car sales in 2018 fell at their fastest rate since the global
financial crisis a decade ago, hit by the collapse in demand for diesel, as
the industry body warned of the existential threat to the sector posed by
Brexit.
Registrations dropped 6.8 percent last year to 2.37 million vehicles, the
largest fall since sales nosedived 11.3 percent in 2008, according to data
from the Society of Motor Manufacturers and Traders (SMMT) showed.
A nearly 30 percent drop in demand for diesel was the most significant
factor in the decline. Diesel has been pummelled since the Volkswagen
emissions cheating scandal of 2015, prompting a crackdown and higher
levies.
But the industry also warned that Britain’s departure from the European
Union due at the end of March risks the future of a sector which employs
over 850,000 people and has been one of Britain’s few manufacturing
success stories since the 1980s.
“It’s still hard to see any upside to Brexit,” said SMMT Chief Executive Mike
Hawes.
“Everyone recognizes that Brexit is an existential threat to the UK
automotive industry and we hope a practical solution will prevail,” he
said, calling for lawmakers to back Prime Minister Theresa May’s deal to
guarantee a transition period.
Britain, the world’s fifth largest economy, is due to leave the globe’s
biggest trading bloc in just over 80 days with May’s agreement looking set
to be voted down, leading to a possible no deal Brexit and the imposition
of tariffs and customs checks.
Investment looks very likely to have fallen in 2018, the SMMT said, and sales
this year are forecast to drop again as the industry body warned a no-
deal Brexit would hit jobs.
“You’re not going to see immediate closure of plants but what you could
see is a reduction in production volumes and certainly, these are often
international companies who have alternatives,” said Hawes.
After record highs in 2015 and 2016, sales fell in 2017 and some analysts
see car demand as a leading indicator which could be a harbinger for
future economic performance.
Britain’s economy slowed to a crawl at the end of 2018, the housing
market is stalling and lending to consumers growing at its slowest pace in
nearly four years, according to data released on Friday.
Diesel, which accounted for 48 percent of sales in 2016, fell to 42 percent
in 2017 and just 32 percent in 2018, mirroring a trend seen in many
European markets.
The rise in petrol sales and drop in diesel means the average CO2
emissions of new cars sold in Britain in 2018 rose just under 3 percent,
posing a headache for automakers who need to reduce levels to meet
stricter regulations.
New rules which came into force in September also impacted sales by
disrupting the supply of some models, the SMMT said.
Demand this year could also be distorted if Britons expect tariffs to be
introduced after Brexit, perhaps pushing up registrations in the first three
months of 2019.
“The fear of them might encourage some people to purchase in the first
quarter,” said Hawes. “The flip side of that is: ‘Well I don’t know what’s
going to happen to the economy if you have a no deal so I’ll wait and
see’.”
<< Back to news headlines >>
European shares fall into red as worries about economic growth derail
rally Monday 7th January, 2019 – Reuters
European shares fell into negative territory on Monday, giving up earlier
gains as lingering worries about the euro zone economy, Brexit and the
U.S. government shutdown offset hopes for a truce between Washington
and Beijing over trade.
The pan-European STOXX 600 was down 0.5 percent at 1004 GMT, erasing
some of Friday’s stellar gains after strong U.S. jobs data and dovish
comments from the Federal Reserve chief.
Optimism about easing friction between the United States and China had
also lifted the mood, helping the index to its biggest daily gain since June
2016.
The swift swing into negative territory on Monday morning illustrated the
fragility of the gains as other worries returned to the fore.
The biggest gainers in Friday’s strong rally were some of Monday’s
laggards, with healthcare .SXDP and food and beverage stocks SX3P
falling 1.1 percent. The weaker U.S. dollar also weighed on those
companies with large international revenues.
Blowout U.S. data and Fed comments had “calmed some nerves” and
provided some psychological support to the market, said Lars Kreckel,
global equity strategist at Legal & General Investment Management.
On Friday, Powell said the Fed is not on a pre-set path of interest rate hikes
and that it will be sensitive to the downside risks markets are pricing in.
“We’re not seeing the overheating of the U.S. economy that we were
worried about,” said Kreckel.
Still, European equities remain out of favour, particularly after business
surveys last week pointed to slower growth.
On Friday, Bank of America Merrill Lynch’s “Bull & Bear” gauge of market
sentiment has fallen to 1.8, a level the U.S. bank’s strategists described as
“extreme bear” territory that has triggered a “buy” signal for equities.
Sectors sensitive to the trade tensions were among the few gainers, with
basic resources stocks .SXPP up 0.4 percent and technology up 0.5
percent.
Chipmakers were also recovering from heavy losses last week after
Apple’s shock revenue warning. AMS (AMS.S) which supplies the iPhone
maker, was up 8 percent, topping the STOXX 600 after the chipmaker
announced a partnership with Face++. The shares lost almost a quarter of
their value on Thursday.
Broker research moved other stocks, with Dutch payments firm Adyen
(ADYEN.AS) among the top gainers after BAML upgraded it, while
Wirecard was up 1.8 percent after BAML also backed it.
On the downside, Centrica fell 3.9 percent after a Jefferies downgrade.
A JP Morgan downgrade pushed tyre makers and auto parts makers Pirelli
(PIRC.MI), Michelin (MICP.PA), Gestamp (GEST.MC) lower, adding further
gloom to the industry knocked by regulation and slowing Chinese sales.
The bank said it reckons the European autos are unlikely to re-rate in the
first half of the year.
<< Back to news headlines >>
Sterling gains ahead of parliamentary debate on Brexit deal Monday 7th January, 2019 – Reuters
Sterling rose to a one-week high on Monday as traders prepared for the
British parliament to reconvene this week and debate Prime Minister
Theresa May’s Brexit withdrawal agreement.
The pound’s strength at the start of the week was largely down to dollar
weakness, with a recovery in global risk sentiment since Friday knocking
demand for the U.S. currency.
Traders expect the week two weeks to be highly volatile for sterling. A
vote on May’s Brexit deal - which she has said lawmakers must back if
Britain is to avoid a disorderly Brexit in March - will be held on Jan. 15
following the parliamentary debate, the BBC reported.
Mixed signs on the momentum in Britain’s economy continue to be
overshadowed by investors angst about the sort of Brexit Britain is headed
for.
While a majority of British lawmakers want to avoid a disorderly crash out
of the trading bloc, a majority are also opposed to May’s deal. The prime
minister postponed an earlier planned vote because she faced losing
heavily.
“For now, the prospect of getting the bill through seems no better than
when the last scheduled vote was postponed in December,” RBC’s chief
currency strategist Adam Cole said.
Sterling rose to as high as $1.2754, up 0.3 percent on the day, before
settling at $1.2740.
Against a broadly stronger euro the pound shed 0.3 percent to 89.845
pence.
<< Back to news headlines >>
India's central bank likely to pay bumper interim dividend to help Modi
government Monday 7th January, 2019 – Reuters
India’s central bank, having changed leadership last month following a
clash with the government, is likely to transfer an interim dividend of 300-
400 billion rupees ($4.32 billion-$5.8 billion) to the government by March,
according to three sources with direct knowledge of the matter.
The amount would be three or four times the amount paid last year and
would help the government meet its fiscal deficit target, despite a shortfall
in revenue collections, most notably from a goods and services tax
introduced in 2017, and from divestments.
Prime Minister Narendra Modi’s government has been pushing the RBI for
more money ahead of what is expected to be a tight national election
due by May.
As a row flared over fears that the central bank’s independence was
being eroded, RBI governor Urjit Patel abruptly quit last month, and was
replaced by former finance ministry official Shaktikanta Das.
Aside from tensions over the dividend payout, the government has also
been critical of the RBI’s constraints on lending by state banks with high
levels of non-performing loans.
The rupee hit a session low of 69.80 against the U.S. dollar on Monday,
following the Reuters report on the interim dividend and impending
revenue shortfall.
The government and RBI have now selected a panel to look into the issue
around the sharing of the RBI’s reserves.
The RBI typically generates revenue from trading in bonds and currencies,
part of which goes toward building reserves, while the remainder is
transferred to the government in the form of a dividend.
The interim dividend for this financial year ending in March would be
decided by the RBI board separately and not by the six-member
committee formed to review the future dividend transfer policy, said the
sources, who asked not to be named as the discussions are private.
“We are absolutely sure that an interim dividend of more than 300 billion
rupees would be paid before March end,” one of the sources told
Reuters.
The RBI did not respond to an email seeking comment, while the Finance
Ministry declined to comment.
Speaking with the media in New Delhi on Monday, Das repeatedly
declined to comment on the Reuters report, beyond saying that the
details would be shared once the RBI board made its decision.
This will be the second consecutive year in which the RBI has given the
government an interim dividend, ahead of an annual payout that it
normally gives the government in August, following the closing of the RBI’s
books in June.
The sum the government is pushing for this year is significantly more than
the 100-billion-rupee interim dividend it received last year. Following the
close of the RBI books last year, it paid the remaining dividend of 400
billion rupees in August 2018.
An interim payout before the end of March would take total transfers from
the RBI to 700-800 billion rupees for the government’s current fiscal year
ending March 31, higher than the previous record payment of 659 billion
rupees in 2014/15.
The RBI could make a final decision on the dividend before Finance
Minister Arun Jaitley presents the government’s budget on Feb. 1, two of
the sources said.
DELAYING TAX REFUNDS
The funds are crucial to meet the fiscal deficit target of 3.3 percent of the
GDP for the financial year ending in March, as the government’s revenue
shortfall may be as high as 1 trillion rupees, according to two of the
sources.
The government has also made supplementary spending requests to
parliament totalling 260 billion rupees, putting the fiscal deficit target
under more pressure.
“The revenue gap we are assuming includes two major items —GST
collections shortfall and some shortfalls anticipated from the divestment
side,” one of the officials quoted above said.
The government expects to undershoot its 800 billion rupees divestment
target, possibly by 100 billion rupees. It also faces a revenue gap from GST
of between 1 trillion rupees to 1.4 trillion rupees, the official said.
The government is also planning to hold back tax refunds of some
corporates to be able to adjust the revenue gap to meet its fiscal deficit,
the second official said.
“We have plans to hold back tax refunds of some big corporates which
should give us a cushion of 1 trillion rupees,” said the second official.
<< Back to news headlines >>
Consumers to pay less for gasoline and diesel Sunday 6th January, 2019 – Barbados Today
Effective midnight tonight, the price of gasoline and diesel will decrease,
while that of kerosene and liquefied petroleum gas (LPG) will remain
unchanged.
The price of gasoline will be adjusted from BDS $3.71 per litre to BDS $3.60
per litre, a reduction of 0.11 cents.
The price of diesel will decrease by 0.17 cents, moving from $3.17 per litre
to $3.00 per litre. Kerosene will continue to retail at $1.44 per litre.
Liquefied petroleum gas will continue to retail as adjusted at December 2,
2018. The LPG 100lb cylinder will be sold at $163.07, the 25lb cylinder at
$45.87, the 22lb cylinder at $40.53, and the 20lb cylinder at $36.84.
These price adjustments are in keeping with Government’s policy of
allowing retail prices to be reflective of those on the international market.
<< Back to news headlines >>
Dollar skids as U.S. rate pause bets weigh Monday 7th January, 2019 – Reuters
The dollar weakened on Monday on growing bets the U.S. central bank
will halt its multi-year rate hike cycle, with the euro and Norwegian crown
leading gains among its rivals.
Even after last week’s strong U.S. jobs data for December, market
watchers believe the world’s biggest economy is losing momentum.
Comments by U.S. Federal Reserve chair Jerome Powell have added to
expectations the central bank may adopt a more cautious outlook.
“The dollar is suffering from falling rate hike expectations and it should
remain weak in the coming days,” said Manuel Oliveri, a currency
strategist at Credit Agricole.
Against a basket of its rivals, the greenback fell a quarter of a percent to
95.95, nearing a 2-1/2-month low of 95.68 hit last week.
On Friday, Powell told the American Economic Association that the Fed is
not on a pre-set path of interest rate hikes and that it will be sensitive to
the downside risks markets are pricing in.
Money markets have priced out a U.S. rate hike this year and are even
pricing in a small probability of a rate cut in 2020. The Fed raised rates four
times in 2018.
Waning expectations of a rate hike boosted the euro with the single
currency rising by more than a third of a percent at $1.1437. The
Norwegian crown meanwhile strengthened by more than half a percent
to 8.58 crowns per dollar.
The dollar outperformed other currencies in 2018 due to the Fed being the
only major central bank to hike rates. If stays on hold in 2019, other
currencies such as the euro might benefit.
Derivative markets in the euro such as risk reversals — a gauge of calls to
puts — have steadily climbed to their highest levels in more than six
months as investors bet on more upside for the single currency.
News at the weekend of Chinese policy stimulus helped lift sentiment and
boost commodity-focused currencies such as the Australian dollar.
After a slew of weaker-than-expected manufacturing data, Chinese
authorities on Friday cut reserve requirements for all banks by 100 basis
points. That will free up $116 billion for new lending as China tries to
reduce the risk of a pronounced fall in the pace of economic growth.
The Aussie. gained 0.28 percent to $0.7123.
The dollar advanced 0.2 percent versus the offshore yuan to 6.8483.
Financial markets are also optimistic about a meeting of U.S. officials and
their counterparts in Beijing this week, the first face-to-face talks since U.S.
President Donald Trump and Chinese President Xi Jinping agreed on Dec.
1 to a 90-day truce in their trade war.
<< Back to news headlines >>
Stock futures flat after Wall Street's strongest surge in new year Monday 7th January, 2019 – Reuters
U.S. stock index futures were little changed on Monday after Wall Street’s
biggest one-day surge in the new year on Friday, as focus shifted to the
latest round of trade talks between the United States and China.
The world’s two biggest economies kicked off talks in Beijing on Monday,
the first face-to-face meeting since U.S. President Donald Trump and
China’s President Xi Jinping in December agreed to a 90-day truce in the
trade war to help strike a deal.
After ominous signs the trade war was taking a toll on U.S. growth,
including Apple Inc’s (AAPL.O) sales warning and weak factory activity
data, investors are worried that corporate profits could take a bigger hit
than anticipated.
Trump said on Sunday that trade talks with China were going very well
and that weakness in the Chinese economy gave Beijing a reason to work
toward a deal.
A report from the Institute of Supply Management, due at 10:00 a.m. ET, is
expected to show that its index of services sector activity fell to a reading
of 59.0 in December from 60.7 in the previous month.
The report comes on the heels of ISM’s manufacturing index posting its
largest drop since the financial crisis in 2008, suggesting that slowing
growth in China and Europe could be spilling over into the United States.
At 7:14 a.m. ET, Dow e-minis 1YMc1 were up 8 points, or 0.03 percent. S&P
500 e-minis ESc1 were down 2.75 points, or 0.11 percent and Nasdaq 100
e-minis NQc1 were down 18.75 points, or 0.29 percent.
Wall Street’s main indexes rallied more than 3 percent on Friday after a
strong U.S. jobs data and comments from Federal Reserve Chair Jerome
Powell that the central bank would be patient and flexible with its
monetary policy.
Among premarket movers, General Electric Co’s shares (GM.N) rose 5.1
percent after reports that private equity firm Apollo Global Management
(APO.N) was working on an offer to acquire the company’s aircraft
leasing operations.
Loxo Oncology Inc (LOXO.O) shares surged 65 percent after Eli Lilly and
Co (LLY.N) said it would buy the cancer drug developer for about $8
billion in cash. Lilly shares fell 2.9 percent.
PG&E Corp shares (PCG.N) slumped 18.6 percent after Reuters reported
that the California utility company was exploring filing some or all of its
business for bankruptcy protection as it faces billions of dollars in liabilities
related to fatal wildfires in 2018 and 2017.
<< Back to news headlines >>
Natural Resource Fund Bill not perfect Monday 7th January, 2019 – Guyana Chronicle
Since the passage of the Natural Resource Fund Bill, there have been
concerns that the advice of international and local experts on the
loopholes contained therein for risky investments were not properly
addressed. But Finance Minister, Winston Jordan has addressed these
concerns by stating that there is no such thing as a perfect Bill.
The economist said, too, that what is not contained in the Bill can be
made into regulations. “And it is felt down the road that certain things
need to be addressed then it can be amended,” added the Minister.
Jordan also said that the Bill, which is expected to receive the President’s
assent this week, has received the Commonwealth’s stamp of approval.
In a correspondence seen by this newspaper, the Commonwealth
Economic Adviser of its Natural Resources Division, Dr. Daniel Wilde, said
that the passing of the Bill represents an important milestone in the
effective management of petroleum revenues.
Wilde said, “The Bill provides a strong basis for a Natural Resource Fund
that will transparently manage petroleum revenues and conform to the
Santiago principles. The Fund should also significantly contribute to
economic stabilization, a fair-intergenerational transfer of natural resource
wealth and a sustainable fiscal policy.”
He said, too, that it is very impressive that the Finance Ministry sought to
put the law in place for the Fund prior to petroleum production
commencing. Wilde noted that many countries have significant oil
production for many years before they establish such a fund.
Additionally, the Finance Minister reminded that one of the key
mechanisms in place to ensure the Fund managers do not engage in acts
of corruption is the Public Accountability and Oversight Committee.
This body which will see representatives from the Media, the Guyana Bar
Association and Transparency Institute Guyana Inc. (TIGI), will be
responsible for monitoring and evaluating the compliance of the
government and other relevant persons when it comes to the principles of
transparency; good governance; and international best practices,
including the Santiago Principles, when using the Natural Resource Fund.
It will also be tasked with providing independent assessments on the
management of the Fund and the utilization for withdrawals from the
Fund.
According to the Bill, the Committee is expected to consist of 22 members
who are nominated in accordance with Part Three of the Bill and
appointed by the President.
The Committee will include a representative from civil society
organizations and community based organizations, a nominee to
represent women with the said person being nominated by civil society
organizations, a nominee of the Bar Association of Guyana, a
representative of the Guyana Consumer’s Association, a nominee of the
Guyana Extractive Industries Transparency Initiative (EITI), a nominee of
TIGI, a nominee of the Guyana Press Association, a nominee of most
representative associations of trade unions, a nominee of the Private
Sector Commission, one nominee from each of the 10 Regional
Democratic Councils and a nominee from academia who is nominated
by the governing council of the University of Guyana.
The Bill is silent however on their being a seat at the Oversight table for a
member of the political opposition.
Furthermore, the Bill points out that a person shall not be eligible for
appointment if he or she is a Parliamentarian, an employee of the Ministry,
an employee or owner of an organization who is engaged by the Minister
or Governor of the Bank to assist with the management of the Fund, is a
member of the Investment Committee established under Section 13 of the
Bill or the Macroeconomic Committee that is established under Section 20
of the Bill.
One is also not eligible to be on the committee if he or she is insolvent or is,
or has been declared bankrupt, is of unsound mind or otherwise medically
unfit, or has been convicted of any offence not minor in nature.
The draft legislation notes that the President may terminate the services of
any Committee member for a number of reasons, two of which include
incompetence and misconduct.
Additionally, the Government has paved the way for the Committee to
have financial resources to carry out its functions. It is also expected to
publish bi-annual reports of its activities on its website and that of
Parliament’s. These reports will also be provided to the National Assembly
as well as the President.
CRUCIAL ROLE OF OVERSIGHT BODIES
Whether or not rules are in place, independent oversight bodies have
important roles to play in holding governments to account for the
management of Natural Resource Funds.
This was recently endorsed by Chatham House, a non-governmental
organization based in London whose mission is to analyse and promote
the understanding of major international issues and current affairs.
Chatham House explained that in many countries, the courts are explicitly
mandated to determine the constitutionality of legislation and ensure
government compliance with laws, including those governing natural
resource fund management. Where the courts are free from political
interference, Chatham House said that judicial review is a strong form of
independent oversight insofar as courts are able to enforce their decisions
on the government.
Chatham House said, “Some countries are not brave enough to embrace
this type of independent oversight. But the evidence is overwhelming to
prove that this is an extremely powerful form of ensuring transparency and
accountability in the operations of the NRF. In 2008, the Timor-Leste
Appeals Court found that a $290.7 million withdrawal from the Petroleum
Fund by the Government was illegal. The rationale was that it violated the
2005 Petroleum Fund Law requirements that the government provides a
detailed explanation for the withdrawal and that petroleum revenues be
managed for the benefit of current and future generations. The Court was
able to order that the money be returned to the Fund.”
Turning its attention to the importance of Multi-Stakeholder Groups,
Chatham House said that some countries have established formal forms
of these oversight bodies to reinforce and support the work of traditional
bodies such as Parliament and the Judiciary or to provide an additional
source of regulation.
Chatham House said that in Chad, Ghana, and Timor-Leste, civil society
persons such as Chartered Accountants, trade unionists, traditional
leaders, and central bankers, form formal oversight committees for their
country’s NRFs.
The transparency body said, “Ghana’s Public Interest and Accountability
Committee, for example, is mandated by law to monitor the
management of petroleum revenues as outlined in the Petroleum
Revenue Management Act. Timor-Leste’s Petroleum Fund Consultative
Council, which consists of various civil society persons is mandated to
advise Parliament on how the country views the operations of the fund as
well as recommendations for improvement…”
<< Back to news headlines >>
Bahamas’ GDP Per Person Lower Than Pre-Recession Era Friday 4th January, 2019 – Tribune 242
The Bahamas’ real GDP per capita is lower now than it was 11 years ago
before the start of the global recession, the Inter-American Development
Bank (IDB) has revealed.
The IDB, in its latest Caribbean quarterly bulletin, provided further
evidence of how negative economic growth over the past decade has
resulted in reduced living standards and quality of life for many
Bahamians.
“The average growth rate during the past decade of The Bahamas (-1
percent), Barbados (-0.7 percent), and Jamaica (-0.5 percent) was
negative and close to zero,” the multilateral lender disclosed. “As a result,
real GDP per capita of these countries remains below 2007 levels.”
The IDB’s revelations further underscore the deterioration caused by the
failure, spanning successive FNM and PLP administrations, to revive the
Bahamian economy following the 2008-2009 recession and achieve
higher levels of job-creating gross domestic product (GDP) growth.
The Bahamas was the worst performer of the three Caribbean nations
mentioned and, despite the IDB sounding an optimistic note about this
nation’s growth prospects for 2018 and 2019, it suggests this nation will still
not fully recover the past decade’s lost ground over the next five years.
For the same report, drawing on recent International Monetary Fund (IMF)
data, forecasts that The Bahamas will have one of the lowest annual
improvements in real GDP per capita growth between 2018 to 2023 at
around 0.5 percent. Only Ecuador and Bolivia are expected to fare worse.
The IDB report illustrates the extent of the task facing the Minnis
administration to achieve higher economic growth at a time when it has
imposed fiscal austerity measures in a bid to solve The Bahamas’ chronic
debt and deficit problems.
Still, the IDB’s report said: “The performance of tourism-dependent
Caribbean countries continues to improve. The Bahamas is recovering
from the effects of hurricanes in 2016 and 2017 that led to higher public
spending and interruptions in the flow of revenue.
“For 2018, expectations are for a recovery of growth (2.3 percent) and a
substantial improvement in fiscal efforts (a primary fiscal balance of 0.1
percent of GDP compared to -3.4 percent in 2017) that will lead to a
stabilisation of debt as a percentage of GDP below 55 percent.”
The IDB report said that while the economy “appears to now be on a
stable growth path”, much depends on “significant capital projects” and
foreign direct investment (FDI) inflows if it is to achieve the Government’s
targets in the medium term.
“Sluggish growth in private sector credit is likely to persist even as the
country moves toward establishing a credit bureau,” it added. “The
increased usage of external debt proceeds coupled with a reduction in
private sector credit impacted domestic credit, which contracted by
roughly 4 percent, while private sector credit fell by 0.7 percent as of the
end of 2017.
“For the first six months of 2018, domestic credit marginally improved to 0.9
percent, as private sector credit declined. Although there is liquidity,
lending has been risk-averse because of high non-performing loan (NPL)
levels, which were concerning at 8.9 percent as of June 2018.”
Turning to the external economy, the IDB added: “It is estimated that the
current account deficit will be 12.7 percent of GDP at the end of 2018,
compared to 15.7 percent a year earlier. Imports returned to trend levels
during the year following a surge in the prior period to facilitate hurricane
rebuilding activities and the completion of a major tourism investment
project [Baha Mar].
“The deficit is projected to gradually decline in the medium term to 6.2
percent by 2020.The current account deficit has mainly been financed by
private inflows. The country has been increasing its reliance on private
capital inflows (9.2 percent in 2018), while FDI inflows currently stand at 2.4
percent.
“Private capital inflows contributed on average 11.6 percent of GDP, and
direct investment contributed 1.7 percent of GDP during the 2013–2018
period. However, there is an expectation of a rebound in the contribution
of FDI, with the medium-term forecast improving. Equity investment has
gradually started to strengthen and is expected to reach approximately 2
percent of GDP at the end of 2018, then increase roughly to 3.3 percent
of GDP in 2019.”
The IDB report added that higher interest payments on the Government’s
debt were a growing concern, saying: “A decomposition of The
Bahamas’ public debt suggests that interest payments are the main driver
for fiscal year 2018.
“Higher interest payments also made important contributions to the
change in debt, and its impact is expected to continue on par with
growing payment obligations. Interest payments grew from 1.98 percent
in fiscal year 2015 to 2.26 percent in fiscal year 2018.”
<< Back to news headlines >>
Business Licences Calculated On Vat Revenue From 2020 Friday 4th January, 2019 – Tribune 242
Business Licence fees will be based on “positive VAT-rated revenue” from
2020 onwards in a move that “removes some of the ambiguity”
surrounding how they are calculated.
The reforms, unveiled yesterday by K P Turnquest, the Deputy Prime
Minister, will now also require International Business Companies (IBCs) - for
the first time ever - to register under the Business Licence Act and pay a
value-based fee to bring them into compliance with the European Union’s
(EU) anti-tax evasion offensive.
The changes, which mean IBCs will incur the same tax treatment as
domestic firms incorporated under the Companies Act, are mandated by
the recently-passed Removal of Preferential Exemptions Act 2018 - the law
that meets a key EU demand by eliminating the preferential tax breaks
previously enjoyed by non-resident entities and their foreign investor
owners.
In doing so, Mr Turnquest revealed that the basis for calculating Business
Licence fees will next year change to better align with Value-Added Tax
(VAT). Turnover will now be defined as the revenue upon which VAT is
charged.
“Moving forward, a company’s Business Licence fee will be calculated by
reference to the value of any positively-rated taxable supplies made in
that year, charged at a rate of between zero percent (0 percent) and
two-and-a-half percent (2.5 percent) of that value, as may be prescribed
by the Minister of Finance,” Mr Turnquest said.
He added that the Government’s reforms were designed to achieve
three key objectives - impose no further obstacles to the ease of doing
business; ensure there is a “revenue neutral” effect for the Public Treasury,
meaning that there is no increase or decrease in its income; and
compliance with the EU’s demands and the legislation that effects this.
Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA)
president, told Tribune Business that the reforms meant that Business
Licence fees will be calculated based on “positive VAT-rated revenue”
from 2020 onwards.
“The basis upon which the Business License fee will be calculated has
been slightly modified,” he explained. “It has now been defined as
positive-rated taxable supplies, which in layman’s terms is your VAT
revenue. Any revenue that a business earns, that it charges VAT on, is now
the revenue basis upon which Business License fees will be determined.”
The Government has already moved to align the Business Licence fee
with VAT through eliminating the need for businesses with an annual
turnover below $100,000 to pay the former. This is the same threshold
where companies are required to register for VAT.
“It removes some of the ambiguity in turnover,” Mr Bowe added of the
reforms unveiled by Mr Turnquest. “It’s certainly adding, to a certain
extent, clarity in terms of what revenues are being used as the basis for
the fee. There has been ambiguity for many years in terms of turnover.
“This achieves two goals. It ensures everyone is speaking in a common
language, and allows government to maintain existing revenues with it.”
With further legislative changes and “regulatory calibration” required
before the new Business Licence regime can be implemented, Mr Bowe
confirmed this will not fully happen until 2020.
“As it relates to the Business Licence fee and regulatory regime, it’s not
possible to put it in place for 2019 as you already have bills and the basis
of taxation established,” the BICA chief confirmed.
Mr Turnquest, meanwhile, also confirmed that previous “barriers” between
the Bahamian economy’s international and domestic sectors will no
longer exist as a result of the EU’s demands to end “ring fencing” or
preferential tax breaks for foreign investors.
He said: “Companies incorporated in The Bahamas under either the
Companies Act or the IBCs Act – with the exception of [financial services
industry players] – will be required to register under the Business Licence
Act and pay a value-based Business Licence fee.”
These reforms, and others unveiled yesterday (see other article on Page
1B), represent a seismic change for the Bahamas and its economy -
especially IBCs, the vehicle of choice for the financial services industry
and its clients.
Up until now able to pay a standard annual fee of $350, and $300
incorporation fee, IBCs face the loss of their preferential benefits within
three years - meaning they must pay the same taxes, and at the same
rate, as domestic companies.
This means IBCs will have lost much of their advantages for foreign
investors, a fact not lost on many in the financial services industry. Paul
Moss, president of Dominion Management Services, told Tribune Business:
“IBC are going to have to apply for Business Licences.
“That’s going to change the dynamic of the way they operate. They
operated internationally; that’s the basis on which they were formed.
They’re now going to be operating domestically and subject to Business
Licence fees.”
Mr Bowe, though, argued that the IBC changes “cut both ways”. With all
corporate vehicles “deemed to now be Bahamian” regardless of whether
they are operating internationally or domestically, he added: “That
provides an opportunity for indigenous companies to look at international
business they may not have looked at before.
“It’s a knife that cuts both ways. You’ve brought everyone together as
Bahamian companies, and all animals are treated equally.”
<< Back to news headlines >>
Government Breaking Down ‘Offshore’ Banking Divide Friday 4th January, 2019 – Tribune 242
The Government yesterday broke down the divide between Bahamian
domestic and international financial institutions to meet European Union
(EU) demands.
KP Turnquest, the Deputy Prime Minister, in unveiling a radical regulatory
shift said the Government will “make the playing field level for all financial
institutions in The Bahamas” by enabling them to offer services to both
domestic and international clients once the necessary regulatory
approvals are in place.
The move effectively eliminates the “walls” that separated financial
institutions that served the domestic economy with Bahamian dollar
transactions, such as commercial banks, from so-called “offshore” entities
that were solely focused on foreign clients and dealt in foreign currencies.
By “equalising the tax treatment” of the two sectors, Mr Turnquest said
institutions in the international banking, insurance and securities/capital
markets sector will be able to offer services to Bahamians in Bahamian
dollars should they so choose once the necessary supervisory approvals
are in place. And, in similar fashion, Bahamian commercial banks will be
able to target international clients subject to possessing the necessary
permits.
The overhaul to the Bahamian financial services industry’s regulatory
framework was driven by the need to comply with the Removal of
Preferential Exemptions Act - the newly-passed law that requires this
nation to eliminate so-called “ring fencing” and preferential tax breaks for
non-resident entities as demanded by the EU.
“Offshore” institutions receive such favourable treatment in comparison to
their domestic counterparts, the latter paying a 3 percent Business
Licence fee on interest income in addition to the asset-based fees all must
provide.
Going forward, all financial services institutions will be exempt from paying
Business Licence fees from January 2020 onwards. This is being replaced
by a three-tier structure, which will be determined by factors such as the
complexity of their business, the systemic risk they present, costs involved
in regulating them and whether they decide to offer Bahamian dollar
services.
Besides complying with the EU’s demands, the Government is seeking to
balance a number of competing objectives with its reforms. These include
facilitating the “ease of doing business”; ensuring there is a “revenue
neutral” effect for the Public Treasury with no losses; and the maintenance
of the financial services industry’s regulatory integrity.
Gowon Bowe, the Bahamas Institute of Chartered Accountants (BICA)
president, told Tribune Business that the proposed solution was “digestible
by most players” given that it was developed by the Government in
concert with private sector partners.
He revealed that a Working Group, comprised of representatives from
BICA, the Chamber of Commerce, Bahamas Financial Services Board
(BFSB), Clearing Banks Association and Association of International Banks
and Trust Companies (AIBT), had collaborated closely with the Minnis
administration over the Christmas period.
Mr Bowe said “the critical distinction to make” between this effort, and
similar initiatives in the past, was that “it’s a Bahamian position as opposed
to a Bahamian government position”.
While the implementation details were still being worked on, he added:
“This is intended to ultimately be palatable to the EU, but is being driven
by an agreement among domestic players as to the best way to
overcome rind fencing and preferential treatment.”
The BICA president conceded that there was likely to be minimal cross-
over of international financial institutions into domestic Bahamian dollar
transactions and vice versa, given that business models were unlikely to
require it, but said all “now have the flexibility to do so” - something that
could inject more competition into the local market.
Mr Turnquest, meanwhile, said: “By demonstrating our commitment to
global standards, we are working to maintain The Bahamas’ competitive
edge as a global leader in the financial services industry and ensure that
the country’s second economic pillar remains vibrant over the medium
and long term.
“The establishment of this new framework follows broad consultation with
industry representatives in both the private and public sectors, some of
whom are represented here this morning. We also sought input from
international tax advisors.
“Under the framework, all financial institutions will now be permitted to
offer services to both domestic and international clients, provided that the
financial institution meets the prescribed regulatory requirements in
respect of the services offered,” he explained.
“It will remove any difference in the fiscal treatment of financial institutions
that cater primarily to the domestic markets, and those financial
institutions that cater to international clientele. This is essential to removing
the preferential treatment of specific businesses as implemented under
the recently passed Removal of Preferential Exemptions Act.”
The new framework, which took effect on January 1, proposes that
financial institutions - such as banks, insurance, trust companies,
investment advisers, mutual fund administrators, broker/dealers and other
regulated financial services entities - will be exempted from paying
Business Licence fees when renewing or applying for a licence from
January 2020.
Breaking down the “three-tiered system”, Mr Turnquest explained: “All
financial institutions will pay a flat registration fee, which will be set on a
sliding scale between $2,250 and $250,000 per year, although smaller
institutions such as credit unions will pay much lower fees, as is currently
the case.”
This fee will be determined primarily by the “operational complexity” of
the institution, aligning with the level of resources expended to regulate
financial institutions based on their respective size and complexity.
Then, all financial institutions deemed systemically important, based on
their integration into the domestic system, will be subject to an additional
fee in respect of Bahamian dollar liabilities and contingencies.
Finally, any bank wishing to access the domestic payments system, or to
operate as an authorised agent for Bahamian dollar transactions, will be
charged fees reflecting the substantial supervisory and management
costs of these arrangements for the Central Bank of The Bahamas and
other regulators such as the Securities Commission and Insurance
Commission.
“It is important to point out that the new regulatory regime for financial
institutions, and the planned changes within the Business Licence regime,
are not expected to have a material impact on what respective
businesses currently pay into the Public Treasury in terms of regulatory and
business fees. The changes are intended to be revenue neutral, and the
financial sector will continue to bear its current fiscal obligations; this will
not be passed on to any other sector or segment of the economy,” Mr
Turnquest reassured.
<< Back to news headlines >>
2018, a dark year for the agricultural sector Saturday 5th January, 2019 – Haiti Libre
In his message of the new year, Agronomist Talot Bertrand, Secretary
General of the Haitian NGO "Promotion for Development" (PROMODEV),
an organization committed to sustainable development in Haiti said that
2018 had been a dark year among others in terms of loss of human
resources recalling that "[...] 6 Engineers-Agronomists, 2 senior executives
and the former Administrator of the Ministry of Agriculture, Gabriel Pierre-
Louis have died".
In addition, he is concerned about the "[...] triggering of the retirement
process for more than 180 senior agronomists without taking into account
the start of the mechanism for transferring skills to young people".
Recalling that "the profession is learned in the shadow of an elder", he
wonders how the Ministry of Agriculture will work "with novices without field
experience..."
He also deplores the absence "[...] of an indicator that can justify changes
in crop yields and the performance of the farming system." over the past
year, pointing out that field surveys "have shown that farmers are coping
with the negative impacts of several inhibiting factors such as: drought,
pests, plant diseases, animal diseases lack of technical structures and
proximity services."
Despite this gloomy situation, he hopes that policymakers will understand
that "Haiti's land is rich in human resources, water, sun energy and fertile
soil" and that they will take steps to ensure that the Haitian agriculture
sector can still play its role as a "locomotive of economic growth to
combat extreme poverty."
<< Back to news headlines >>
Low demand for agricultural labour Saturday 5th January, 2019 – Haiti Libre
According to the latest report from the Famine Early Warning Systems
Network (FEWS NET) at this time of year, agricultural activities are
dominated by the summer/fall harvest and preparations for the winter
campaign.
The demand for labour is relatively low due to low investment capacity by
farmers, following a poor spring campaign and the winter campaign
which usually generates a relatively small workload.
However, the supply of labour is also limited, with many households
obtaining their income from other sources, including migration to the city
or the Dominican Republic.
This low labour demand has an impact only on households that have
difficulty accessing other sources of income.
<< Back to news headlines >>
Deterioration of food security at the national level Saturday 5th January, 2019 – Haiti Libre
Following the drought that hit Haiti in June 2018 especially in the North, the
Northeast, Grand'Anse, South-East and West, the National Coordination of
Food Security (CNSA), conducted during the month of October 2018, a
National Survey on Food and Nutritional Security (ENSAN) in collaboration
the World Food Program (WFP) and the United Nations Food Fund (FAO)
among others.
This survey reveals a deterioration of food security at the national level.
The survey reports that more than 55 percent of households have resorted
to crisis and emergency strategies faced the deteriorating livelihoods. At
the same time, nearly 52% have a "Limit or Poor" Food Consumption Score
while more than 32% have a "Poor" Food Diversity Score.
In addition, almost half of the areas analysed at the Food Security
Classification Workshop (IPC) in October and December 2018, have
serious Global Acute Malnutrition (GAM) rates (10 to 14.9%), while the
North-West and La Gonâve zones have critical MAG thresholds (15 to
29.9%); the Grand'Anse zones had acceptable levels (less than 5%).
<< Back to news headlines >>
St Kitts-Nevis opposition reaffirms pledge to review and revoke economic
citizenships granted illegally Monday 6th January, 2019 – Caribbean News Now
Following a statement last month by the leader of the opposition, former
prime minister Dr Denzil Douglas, to the effect that he will revoke the
citizenship of any applicant who is found to been illegally granted St Kitts
and Nevis citizenship by investment (CBI), a spokesperson for the
opposition St Kitts-Nevis Labour Party confirmed to Caribbean News Now
on Friday that this was indeed its policy position if and when it is returned
to government.
Multiple allegations of systemic fraud in the St Kitts and Nevis CBI
programme have surfaced recently, involving forged letters of approval,
unauthorised switching from the donation option to the real estate
investment option, and illegally financed unsanctioned discounts.
The situation becomes even murkier when, according to copies of
invoices in the possession of Caribbean News Now, in some cases
successful citizenship applicants have been instructed to transfer the
investment contributions into the personal bank accounts of the principals
of at least one development company instead of to the St Kitts and Nevis
government.
Douglas has made it clear that, upon return to office, a new Labour
government will examine all previously approved citizenship applications
and any applicant who is found to have breached CBI requirements will
have his or her citizenship revoked and referred to local law enforcement,
including agents and developers found to have participated in the
fraudulent schemes.
While the St Kitts and Nevis Citizenship by Investment Unit (CIU), the
government agency charged with administering and policing the CBI
programme, has been well aware of the situation from at least early
November, little or no effective action appears to have been taken to put
a stop to it, although it is beyond belief that the CIU cannot or does not
monitor the grants of citizenship under the various options and thus be
able to identify when applications have been submitted on a discounted
or “financed” basis and/or fraudulently switched from one to the other
using forged letters of approval.
Head of the CIU, Les Khan, issued a press statement on November 28,
2018, claiming that two low level agents found to have been operating
outside the parameters of the programme had been identified and
penalised, and committing to investigate further and take appropriate
action. There has been no evidence of any such corrective action and
Khan has consistently failed to respond to media inquiries.
<< Back to news headlines >>
JN Bank to restart MAC projects in 2019 Sunday 6th January, 2019 – Jamaica Observer
JN Bank, through the JN Foundation, has promised to re-establish its JN
Bank Member Advisory Council (MAC) in 2019, to provide its members
with direct engagement and participate in the identification and
selection of projects to positively impact their communities, and ultimately
the wider society.
Formerly known as the Branch Advisory Councils (BAC), JN Bank MACs
were established in 2006 to involve JN Bank members in the selection of
worthy ventures, in their respective communities.
Saniah Spencer, chief marketing and product development officer at JN
Bank, said the bank has reviewed the JN Bank MAC initiative to engage
members in meaningful partnerships that will be sustainable.
“As a mutual corporate entity, JN Bank gives back to its members through
community and national development projects,” Spencer explained.
“Therefore, JN Bank MAC projects provides members with the opportunity
to be involved in the identification of worthwhile projects and decision-
making in the allocation of resources for programmes for community
development.”
Spencer stated that the revised JN Bank MAC initiative will kick-off with a
workshop, scheduled for January 22, at which members will be updated
about the guidelines for the programme, and, a think tank session will
follow, to assist members to identify meaningful projects for
implementation.
The JN Bank executive stated that projects will benefit from a grant
scheme, which will provide funding of up to $400,000, based on the scale
of the respective venture.
The JN Bank MACs operate across all JN Bank branches and JN Bank
MoneyShops in Jamaica and includes community representatives and JN
Bank employees. To date, approximately $51.4 million in funding has been
expended, generating more than 370 community projects in parishes
across the country.
All parishes have benefited under the programme; and the funds are
disbursed through the branch networks, to reinvest and benefit the
communities they serve.
Some of the projects and community organisations which have benefited
from JN Bank MAC grant funding in the past included: Alpha Primary
School on South Camp Road in Kingston; the Basket and Tings Association
of Trelawny; the Lionel Town Community Development Group in
Clarendon; Morant Bay Infirmary in St Thomas; and Prospect Police
Station, St Ann.
<< Back to news headlines >>
Hampden Estate prepares for greater rum demand Monday 7th January, 2019 – Jamaican Observer
Hampden is in fact used by a number of other Jamaican rums to flavour
their own brands. Many rums marketed as Jamaican rum which are
manufactured in foreign countries also utilise Hampden for the same
purpose. It is used in the production of colognes and perfumes such as
Chanel and in a wide variety of foods such as chocolate and Haagen
Dazs rum and raisin ice cream.
But even though a true appreciation for this age-old Jamaican rum has
been held almost exclusively by industry insiders, the winds of change
have blown through Hampden in recent years and this secret in the
industry has been revealed to a wider audience both at home and
abroad. This came about as Hampden increased its profile by
manufacturing its own brands after being acquired by the Hussey family
through their company, Everglades Farms Ltd.
The acquisition took place in 2009 via public auction through the
divestment of assets belonging to the government's Jamaica Sugar
Company. Christelle Harris, a member of the Hussey family and director of
marketing for Hampden Estate, explains that the family's entry into the rum
industry was the fulfilment of her grandfather's aspirations.
“My late grandfather, Lawrence Hussey, had a dream of owning a sugar
factory one day as he grew up in the era when sugar was king in
Jamaica,” she relates. “He followed in his father's footsteps and became
a farmer, and over the years, a serial entrepreneur. Late in his life, by way
of government divestment, his dream of owning a sugar factory would be
realised.”
Under the tenure of the Husseys, Hampden began bottling its own brands
for the first time in the estate's history, although some other companies
which utilized Hampden's rum as an ingredient in the production of their
own rums have used the Hampden name in their labels.
Hampden released Rum Fire, a white overproof rum, as well as a gold rum
called Hampden Gold. Since coming into existence, both rums have
earned numerous international awards and medals in recent years at
events such as the ShowRum Tasting Competition in Italy, the Annual Berlin
Rum Festival in Germany, the Rhum Fest Awards in France, the Ministry Of
Rums Tasting Competition in San Francisco and the Rum Renaissance
Festival in Miami.
However, it was something other than the international accolades that
caused Hampden to shake the world of rum, recently. In 2017, two
leading global distributors of rum, the French company La Maison du
Whiskey and the Italian company Velier operating under a joint venture
bought the global distribution rights for Hampden's ageing rums and their
entire stock of the product amounting to over 2500 barrels.
The purchase made waves in the rum industry particularly because of an
Italian named Luca 'Ruruki' Gargano, a legendary connoisseur and
distributor of rum who bought into Velier in the 1980s. Under his guidance
Velier developed a line of spirits that has earned worldwide admiration
and includes the likes of Damoiseau from the French Caribbean island of
Guadeloupe, various estate specific brands from Guyana, the Caroni line
from Trinidad and other unique rums from around the Caribbean which he
markets with great success.
Having Gargano buy into the Hampden brand was an unquestionable
stamp of approval from the industry but the appreciation of what
Hampden has to offer comes as no surprise to Christelle Harris.
“There is no other Hampden,” the director of marketing states
emphatically. “It cannot be replicated. The terroir is impossible to be
copied or transplanted. Hampden is particularly skilled and well known
within the rum industry as the specialist in high ester rum production. The
ability to do this, is one of the reasons our rums have won so many
awards.”
The high amount of esters in Hampden's rum is what has allowed it to
stand out for over 200 years. The production of rum results in the creation
of chemical compounds known as esters in the product. These
compounds contribute various aromas to the rum. Hampden rums range
from 50 to 1600 esters with the higher figure representing the most that a
rum is allowed to have on the market.
It is for this reason that Hampden's flavours have always been popular in
the blending of other rums and in the flavour and food industry
throughout the world from the Caribbean to Europe, South America and
the United States and Canada.
Other factors in the production of Hampden's rums contribute to their
taste. The use of spring water from the Cockpit country, the utilisation of
wild yeast as opposed to the more common commercial yeasts, the
distillation which takes place in Hampden's old copper pot stills rather
than newer column stills, the old wooden fermentation vats on the estate
as well as tropical ageing in Trelawny's environment are all thought to play
a part in the mystery of Hampden's flavours.
It is impossible to find distilleries around the world that have the unique
combination of all these factors and conditions which is why the taste of
Hampden rums have always stood out in the market. The company points
out that there are distributors in foreign countries who are selling Rum Fire
at higher prices than other local brands because they appreciate the
uncommon process that goes into the creation of Hampden's rums.
The production, branding and distribution of ageing rums represents the
biggest step made by the Hussey family since they introduced Rum Fire
and Hampden Gold to the world. The brands may be relatively new but
they bear the proud stamp of history.
There is a small cemetery located at Hampden. In it can be found the
graves of members of the Stirling family from Scotland who founded the
estate in the 1750s. Trelawny, at the time, was a hub for Scots who were
seeking riches and fleeing the Jacobite Wars in Great Britain. There are
also graves belonging to the Farquharson family who took ownership from
1852 until 2003 when the business was then acquired by the Jamaica
Sugar Company.
The cemetery stands as a reminder that while the latest ventures
undertaken by the Husseys are new endeavours, they come with over two
centuries of inherited expertise and a sterling reputation for quality in the
industry. It is a legacy that the family is keen to preserve and take forward
into a new era.
It is also a legacy that the Jamaican public can explore through a tour of
the Hampden property. The company has opened itself to visits from both
locals and tourists. A 35-minute trip by car from Montego Bay will take you
to the estate to explore its grounds, the Great House, the fermentation
and distillation processes as well as its compelling history. The experience
ends with rum tasting and lunch.
The tour is a valuable addition to the island's tourism product as it is
another rum excursion option which can only enhance the visitors'
knowledge of Jamaican rums and give them a better understanding of
the industry in its entirety.
The passion of the tour guides is quite genuine as they communicate their
knowledge of the estate and its products. It is a passion that is reflected
by Christelle Harris when she talks about where Hampden is coming from
and where it is going with the recent entry into the market of its aged
rums.
“The divestment of the Long Pond Sugar factory had a hidden gem
attached to it, and that was Hampden Estate and Distillery,” she reflects
enthusiastically. “We never understood the value of Hampden at the time.
Now that we have studied the world of rum internationally, we understand
that there is no distillery in the world like Hampden, no rum like Hampden's,
and as rum is currently in its renaissance, the demand for tropical aged
Hampden rum will increase exponentially.”
<< Back to news headlines >>
Main Event earns $63m in revenues from weddings Saturday 5th January, 2019 – Jamaica Gleaner
Main Event Entertainment Limited, the event management, production,
promotions, and digital signage solutions company, earned more than
$63 million from the wedding market in its first year of venturing into that
market.
The wedding division, called M-Style & Decor, aided in pushing the group's
total revenues, which span four divisions, to $1.4 billion, or 18 per cent
higher year on year.
Dr Ian Blair, chairman of the finance committee, told the Financial
Gleaner that the division continues to earn but has yet to make a profit.
"M-Style's over $63 million revenue has not achieved break-even as yet,"
stated Blair.
Despite not breaking even, the division accounted for about one-third of
new incremental revenues made by the group in 2018.
While the size of the wedding market remains largely undisclosed, the
company previously described the market as significant.
There are many competitors in the wedding space, with over 12 pages of
listings in the Yellow Pages offering services in that market. Notably, it
exceeds the nine pages for party equipment providers and three pages
for events marketing and planning services.
Some of the larger companies operate on the north coast to cater to
tourist weddings, including Tai Flora limited, which operates six locations
island-wide. Part of Main Event's strategy has been to enter the Montego
Bay market on the north coast.
During the year, Main Event leased a 3,000 square-foot property in
Montego Bay, St James. That space is in addition to the roughly 32,000
square feet of warehouse space it uses at Newport West, Kingston; 4,000
square feet at its main office at Lady Musgrave Road, St Andrew; and
1,200 square feet at its Barbican, St Andrew, office.
During the year also, the company acquired two long-term loans: $102.9
million for capital expenditure from Sagicor Bank, which carries interest of
6.75 per cent to 12.77 per cent; and $23.4 million from National
Commercial Bank at 11 per cent interest.
"The new $125 million loan facility is being used for additional equipment
for the expanded operations and M-Style," Blair told the Financial Gleaner.
The loans, acquired in the 2018 financial year, allowed the company to
put long-term debt on its balance sheet which in previous years was nil.
Three of the four divisions recorded year-on-year rises in revenue. Its
entertainment division earned $1 billion, audio and film division $222.1
million, and M-Style & Decor $63.6 million. The digital signage division
recorded $77.3 million, down from $119.6 million a year earlier.
During Main Event's financial year, some of the large events the company
provided services for included Sumfest, Diamond Mile, Boys and Girls'
Champs, Independence Grand Gala, New Year's Eve on the Waterfront,
and Dream Weekend.
"We have some very large events slated for later in the year," said Blair.
Net profit dipped 6.0 per cent to $94.7 million year on year due to
increasing costs, higher depreciation of its growing asset base,
investments in training, marketing, and research and development, the
company stated.
Main Event was incorporated in 2004 by its CEO, Solomon Sharpe, and
Chief Operating Officer Richard Bair, who took the company public in
February 2017 and listed it on the junior market of the Jamaica Stock
Exchange.
The company was valued at $541 million based on shareholders equity,
with $942 million in total assets.
<< Back to news headlines >>
Realtors expect increase in property sales this year Saturday 5th January, 2019 – Jamaica Gleaner
Realtors say they expect an increase in demand for first-time homebuyers
in 2019 even as they indicate that those who rent homes are experiencing
harder times as property owners list with Airbnb, the online community
marketplace that connects people looking to rent their homes with those
who are looking for accommodation.
Immediate past president of the Realtors Association of Jamaica Howard
Johnson Jnr says that whereas he endorses short-term rentals and not just
Airbnb, it has a negative impact on the local market.
"The gains from short-term rentals are much more attractive than that of a
local rental," he said, adding that "earnings can be generated by a much
more stable currency such as the US dollar."
Broker at Coldwell Banker Jamaica Realty Andrew Issa says that he is
expecting more Jamaicans to express interest in buying a house during
this year.
"I predicted 2019 will be a very strong year for real estate as demand
continues to be driven by a stable, strengthening economy with low
mortgage rates," he said. "Jamaica has been back on the international list
(as a country in which) to invest from early 2018. While crime did slow the
momentum, it appears that Jamaica's economic indicators are within the
parameters for foreign investors," Issa added.
Sellers' market
He said that the sellers' market continues to strengthen across the board in
both residential and commercial markets but noted that prospects are
challenging for first-time homebuyers.
"In the residential market, you have first-time homebuyers who now qualify
to buy based on their NHT (National Housing Trust) mortgage points and
low-interest rate mortgage instruments being offered. Unfortunately,
demand is still outpacing supply. As the economy continues to grow more
and more, young professionals are placing their priority on buying their first
property," said the real estate broker.
Johnson said that he is anticipating more persons looking for investment
properties for short-term rentals as well as the demand by first-time
homebuyers to increase. "I'm suspecting that the new home starts
promised by the Government, through the NHT, will also resolve many of
the housing dilemmas now being experienced," he said.
He noted that while the cost of houses seems to be trending up, "the
higher price ... is very subjective as sales are being generated despite
what is being perceived. In many cases, persons are still financing their
homes due to competition on interest rates in the marketplace. I have not
observed any disruption in the mortgage market, but rather, more
aggressive marketing for your business by financiers".
Issa said "Investors are liking the returns being gained from the rental
market and also seeing a 10 per cent annual increase in prices bring a
very attractive mix to their investment portfolio. These investors continue to
buy (at) locations that will attract expatriate clients and bring returns in US
dollars."
DOWNSIZING
He also observed that "downsizing is a segment of the market that is
growing. The ageing population is beginning to make the choice that
downsizing is a practical and sound economic decision.
According to the broker, commercial demand is also growing. "The daily
request is, 'Find me a commercial building with an ROI (return on
investment) of seven to nine per cent, and I will buy it'," said Issa, referring
to potential investors. "So with all these small financial institutions being
launched, I expect to see much more activity in developments of this
nature. These new, young managers are aware of the built-up demand
by young entrepreneurs searching for locations," he added.
Issa also said that demand continues to grow for business process
outsourcing space and that it will drive additional commercial build-out.
Despite the higher costs for houses, he does not expect that to inhibit
sales. Issa said that "all mortgage companies have a similar formula for
approvals, and with more institutions pushing for a larger share of the real
estate market, I expect that these homes will be financed with buyers
having two to three options to choose from".
Airbnb investors, he noted continued to be a factor. The realtor said that
the market for Airbnb is definitely a factor in the increase in apartment
purchases.
However, he noted that "it is not for the faint of heart investors" considering
the time and detail involved in managing the units.
Issa believes that overall, the real estate market in 2019 will bring
attractive results for both private investors and financial institutions.
"Don't be surprised to see very large properties change ownership this
year as owners use the cash (from their sale) to expand their businesses
while remaining tenants" by renting the same properties, he said.
<< Back to news headlines >>
Fishermen continue demonstration Monday 7th January, 2019 – Trinidad Express Newspapers
FISHERMEN continue to stage protest action against the Government's
decision to stop the sale of regular gas.
On Saturday, fishermen and vendors from Claxton Bay fishing depot held
placards and gas cans, as they called on Energy Minister Franklin Khan to
return the supply of regular gas (RON 83).
The fishermen said they have had to spend double on super gasoline,
which they now have to use.
Claxton Bay Fishing Association vice-president Bhadose Sooknanan said:
'A 20-gallon pan used to cost us $200 with regular and plus two oils, which
is $35 each, amounting to $270. The same amount in super (gasoline)
costing $500 to $550.'
He suggested the Government consider storing a container of regular
gas, which can then be sold to the fishermen.
Sooknanan said there were thousands of people in the fishing industry
who would be placed on the breadline if the industry is to close down.
His brother, fisherman and fish vendor Boysie Sooknanan, said: 'They have
children to send to school, loans to pay. The catch is coming very little. It is
very, very hard. If you have to buy two pans of gas, that is $1,000 before
you start to work, before you catch a fish.'
Fishermen from Orange Valley, Carli Bay and Icacos held similar protests
recently.
Bhadose Sooknanan said such protests will continue this week.
<< Back to news headlines >>
Guardian Holdings Limited adds 5.5% Sunday 6th January, 2019 – Trinidad Express Newspapers
LAST week saw 2,120,567 shares traded on the first-tier market, which was
a significant increase of 333.00 per cent on the previous week's a total of
489,749 shares crossing the floor.
The value of shares traded was up by 70.65 per cent to $24,024,291.34
from the previous week's value of $14,078,370.46.
The volume leader this week was GraceKennedy Ltd (GKC) capturing
46.07 per cent of the market activity or 976,862 shares traded, followed by
National Enterprises Ltd (NEL) with 31.9 per cent or 676,433 shares traded.
In third place was Massy Holdings Ltd (MASSY) with 9.01 per cent or
191,028 shares traded.
The indices ended the week in positive territory.
The Composite Index increased by 0.26 per cent or 3.33 points to close at
1,306.30. The All Trinidad and Tobago Index grew by 0.25 per cent or 4.21
points to end at 1,709.06.
The Cross Listed Index closed at 122.08, up by 0.27 per cent or 0.33 points
and the Small and Medium Enterprise Index closed at 100.00.
Last week there were seven stocks advancing and seven stocks declining,
while three stocks are at their 52-week high and four stocks at their 52-
week low.
The major advance was Guardian Holdings Ltd (GHL) up 5.56 per cent or
$1 to close the week at $19, its 52-week high.
In second place was GKC with an increase of 5.17 per cent or $0.15 to
close at $3.05, followed by Prestige Holdings Ltd (PHL) up 2.32 per cent or
$0.17 to close at $ 7.50.
The major decline was Sagicor Financial Corporation Ltd (SFC) down 4.87
per cent or $0.46 to end at $8.99, followed by PLIPDECO (PLD) down by
1.35 per cent or $0.05 to close at $3.65. In third place was Trinidad Cement
Ltd (TCL) with a decrease of 1.10 per cent or $0.03 to end at $2.70.
There was no activity on the second-tier market last week.
On the TTD mutual fund market 59,852 CLICO Investment Fund (CIF) units
traded with a value of $1,198,588.94. CIF's unit price closed at $20, a
decrease of 0.79 per cent or $0.16. Also, 8,570 units in Calypso Macro
Index Fund (CALYP) traded with a value of $128,550. CALYP's unit price
ended at $15, a decrease of 3.23 per cent or $0.50 from last week.
CinemaOne Ltd (CINE 1) on the Small and Medium Enterprise Market,
closed at $10 with no shares traded last week.
<< Back to news headlines >>
Pan Trinbago moves into new office...but no $$ to pay pan players, says
president Saturday 5th January, 2019 – Trinidad Express Newspapers
TWO months after being served with an eviction notice, Pan Trinbago
received the keys to a new office yesterday. However, pannists are still
operating without any money.
At the official opening of the new building, located at 37 Duke Street, Port
of Spain, Pan Trinbago president Beverley Ramsey-Moore said: 'Pan
players, we are so sorry but we do not have it.'
She added: 'I know it's painful... it is painful because the players were
expecting, but we did not create the mischief and so those who created
the mischief must pay for the mischief that they have created.'
When asked when should players expect to receive their remittances,
Ramsey-Moore jokingly replied: 'Give us a little chance, maybe in the next
two or three years as the economy of our country begins to grow again,
then we probably will be allocated another $35 million... to then take care
of our past.'
And Ramsey-Moore thanked attorney Israel Khan SC for the new location.
Khan remarked: 'When the group came to me saying that they were
looking for a place, they were pushing at an open door.' 'Mr Khan, I want
to give a heartfelt thank you for allowing us to use this space one year
rent-free,' said Ramsey-Moore.
She explained that her team began scouting for locations as soon as she
came into office and came across a building that was in walking distance
from their previous Park Street office.
Because of the organisation's present financial crisis, Ramsey-Moore said:
'This saved us a million dollars.'
She added that they are making cutbacks.
'This executive cannot continue to put this organisation in debt.'
As a solution to the pan players' plight, Ramsey-Moore suggested: 'If we
have to maintain our prize structure and if we have to ensure that we
satisfy our members, then they too have to come up with resourceful ways
of servicing their players.
'Pan Trinbago does not have the funds to play players for 2018 or 2019,'
she said.
Despite that setback, Ramsey- Moore is optimistic that this year's National
Panorama will be the best ever, and she also received the blessings of
National Carnival Commission (NCC) chairman Winston 'Gypsy' Peters and
Port of Spain Mayor Joel Martinez, who were both in attendance at
yesterday's opening.
With that in mind, Pan Trinbago's new motto is 'Forging a new
beginning...Playing a new song.'
<< Back to news headlines >>
Prime minister threatens compulsory acquisition of Scotiabank Antigua Monday 7th January, 2019 – The Antigua Observer
Compulsory acquisition is one of the measures being considered by the
Prime Minister, Gaston Browne, as he continues to demand that the
owners of Scotiabank revisit the sale of the Antigua branch to Republic
Financial Holdings Limited of Trinidad and Tobago.
His latest threat, made on Saturday on his radio station, Pointe FM, comes
days before a planned meeting between him and officials from the two
banking institutions.
And, it comes about a month after he threatened not to sign a vesting
order, which he maintains is required to concretise the sale.
“We are using that vesting order to literally negotiate a position in which
the local entities should be given a first preference. And, as I said earlier,
we also have the option of compulsory acquisition if they choose to fight
us,” the PM said.
He said he hopes that it does not come down to that, and that the
institutions accept the proposals he plans to put forward during the
meeting, likely to take place on Wednesday.
The prime minister had written to the banks’ officials on December 13,
2018, asking for a meeting on January 7 this year and he requested to
include representatives “of a consortium, comprising the Government
and local banks and institutions.”
While the banks have reportedly agreed to meet with the Prime Minister
on January 9 instead, a statement from his office on Friday indicated that
Scotiabank said that “based on the contractual agreement between
Scotiabank and Republic Financial Holdings, it may not be appropriate to
hold a meeting with other potential buyers/financial institutions.”
The prime minister said if Scotiabank Antigua is sold to a local entity, there
will be more benefits for the country.
“Our indigenous banks need to get larger and if we can get the Scotia
assets, let’s say for example, if you can consolidate the Scotia assets with
maybe ACB [Antigua Commercial Bank], then ACB will become more
bankable in terms of correspondent banking … so in terms of national
interest, there are many benefits to the country and I believe that we can
make the arguments that we can compulsorily acquire the branch here in
the public interest,” he said.
PM Browne pledged that if the government acquires the bank, its owners
will get their fair payment for it.
“That is an option that we would have to discuss with them because they
must understand that they can’t run roughshod over us because they
can’t do that to the government of Canada. My dear friend Justin
Trudeau would not allow them to do that,” he added.
In November 2018, Scotiabank announced the sale of its branches in nine
Caribbean territories, to include Antigua and Barbuda.
From the onset, the prime minister threatened not to support the sale
unless all other options he has in mind are considered.
On Saturday, he defended his position, while adding that his government
is not “socialistic” or “communistic”.
“We are just a practical government that is taking the necessary decisions
to protect the interest of the state and to make sure that we have an
economic model that works for us and a model that repatriates most of
the profits that are generated in the country…,” he contended.
<< Back to news headlines >>
Gov’t extends Christmas Barrel Initiative Monday 7th January, 2019 – The Antigua Observer
The government is extending the Christmas Barrel Initiative by one week to
accommodate barrels which arrived in the country on time, but are yet to
be processed by the Customs and Excise Division. The highly anticipated
incentive usually takes effect from December 1 until January 4.
General Manager of the Antigua Port Authority, Darwin Telemaque, said
the decision to extend the period was taken following consultation with
Comptroller of Customs Raju Boddu. Speaking on Pointe FM radio station
on the weekend, Telemaque revealed that there were some difficulties
with “unstuffing” at the Port and they are trying to facilitate people who
were unable to collect their barrels.
The programme, which allows householders to import restricted quantities
of food, clothing, and toiletries, is intended to provide a temporary benefit
to individuals and families receiving the three categories of items from
abroad over the Christmas period. Under the initiative, residents are
allowed to import the items in their barrels or other containers and only
one barrel/container is allowed per family.
Families are only required to pay the 10 per cent Revenue Recovery
Charge (RRC) on the value of the goods, along with a $10
processing/handling fee. They are also exempted from the payment of
import duty and the 15 per cent Antigua and Barbuda Sales Tax (ABST).
<< Back to news headlines >>
Local economist disapproves of new tax Saturday 5th January, 2019 – The Antigua Observer
Local economist Everett Christian says the intended 10 percent “windfall
tax” to fund the fourth landed campus of the University of West Indies
(UWI) in Antigua is a bad move.
Prime Minister Gaston Browne has said that in order to finance the
campus in Five Islands, the new windfall tax will target banks, insurance
firms and telecommunication companies.
But, according to Christian, the local consumers are the ones who will feel
the full burden of this new tax.
“These companies will inevitably pass on that tax to the consumers by
way of higher charges and fees for their services. So, ultimately it is the
consumer, the ordinary taxpayer, who will be footing that bill, not the
companies.”
Christian went on to give his solution as to how the funding of the UWI
campus can be realised.
“If the prime minister is truly serious about funding the fourth landed
campus of UWI, what he really needs to address himself is how to
enhance the compliance rate because, in my view, there are sufficient
taxes on our books that if administered properly, he can generate the
revenues required to fund the campus without increasing the tax burden
on the taxpayers,” he told OBSERVER media.
The Five Islands campus is expected to open its doors in September this
year.
<< Back to news headlines >>
APUA to acquire sub-sea cable in multi-million-dollar investment Thursday 3rd January, 2019 – The Antigua Observer
Antigua Public Utilities Authority (APUA) will be allocating EC $80 million
towards the purchase and installation of its own sub-sea cable. This
revelation was made by Prime Minister Gaston Browne during his New
Year’s address to the nation. “APUA will invest $80 million to acquire its
own subsea cable and to democratize access to the internet through the
provision of more affordable, reliable and faster internet service to
residents,” he stated.
Browne assured residents that the move was essential to facilitate all the
modern industries that now operate globally on the Internet on a wider
broadband scale.
Last month, telecommunications provider Digicel accused the
government of attempting to stifle competition in the telecoms market to
benefit APUA. But Browne, in his January 1 address, noted that residents
can no longer rely on foreign telecommunication companies. “Although
they have made considerable profits here which we do not begrudge
them, and to which they were entitled … under the arrangements of the
initial investment, they have not provided us with the technology we
require at prices that are fair and affordable, that is the reality. But, our
country, our people, our economy cannot wait. We must forge ahead
and in doing so we are pushing no one out. Instead we are allowing APUA
to set the pace in the race to better technology, lower rates and faster
internet. It is a race in which the other existing providers are invited to
join,” the prime minister said.
He added that whatever profit APUA makes will be used to enhance
other services provided by the company. “As an off-shoot of APUA’s
participation in this lucrative world, its profitability will be utilized in part to
subsidize the operation and maintenance of two additional reverse
osmosis plants in Bethesda and Fort James in 2019,” Browne said.
“The addition of these two new plants will increase reliability and
sustainability of water supply.” He went on: “We will also continue to
tackle electricity supply, which we want to be both reliable and cheaper.
So in 2019 our government will install about 8 mega-watts of wind and
solar-voltaic power at Crabbs at a cost of $40 million.”
<< Back to news headlines >>
Post Office workers vow to keep up protest Thursday 3rd January, 2019 – The Antigua Observer
As the first working day of the new year got underway yesterday, over 200
workers at the General Post Office staged a sit-in because, according to
them, promises made in an agreement last November had not been
kept. The understanding between the workers and the Public Works
Department (PWD) after they had protested poor working conditions, was
that they would be temporarily relocated until the problems at their
workplace on lower High Street had been resolved.
Yesterday, President of the Antigua and Barbuda Public Service
Association (ABPSA) Joan Peters told our newsroom that to date no word
has come from the relevant authorities, despite the January 2nd deadline.
“The Permanent Secretary has nothing to say. I mean, come on, they
were supposed to look for a building for them to move into temporarily, so
they were looking for buildings all around town. We even assisted them in
some areas,” she said. “Places like where the old CIBC bank was, places
like CTV, places like the Asot Michael building which is just up the road
from them.
They even looked at the Bryson’s building, on the opposite side, the old
Bryson’s … We don’t know if they acquired somewhere, you don’t know
what is happening. Nobody is saying anything.” She added that
conditions in outposts around the island also need to be improved. “Even
the outposts…we did an extensive tour of the sub-stations and they are all
government buildings that are … in a dilapidated state; it’s just so
embarrassing,” the ABPSA president said.
Peters has however indicated that the sit-in will continue until some sort of
action is taken by the PWD to rectify the problem. “I am not sure if a
meeting would do it. They will have to start to do work so we see that
something is being done, because what they are saying, workers would
have to move out of the building in order to do the extensive work, but
they were going to do the things they were able to do while they work
half a day.
They would have gotten those done, so, by the time that they move out
of the building, it wouldn’t take them a long time for them to move back,
since they have already started the work, but they haven’t done anything
at all and nobody has anything to say about what is being done.” It is well
documented that the postal service has been plagued with many
problems over the years. Last November, a leaking roof caused by heavy
rain damaged some of the mail and also resulted in power being lost from
the building.
A week later, workers at all government postal stations — to include
Woods Centre, V.C. Bird International Airport, Nelson’s Dockyard, All Saints
and Cedar Grove — joined their colleagues at the main branch in St.
John’s to protest the poor working conditions
<< Back to news headlines >>
Gov’t spends over $20M on consultancies in last 6 years, BVI Airways the
single largest spend Friday 4th January, 2019 – BVI News Online
The government of the Virgin Islands, inclusive of its statutory bodies,
expended more than $20 million on consultancy services alone in the last
six years.
Premier and Minister of Finance, Dr D Orlando Smith, made that disclosure
in the House of Assembly last month.
These monies were spent through four main state-owned agencies — the
Ministry of Finance, the Office of the Premier, the BVI Financial Services
Commission (FSC), and the National Bank of the Virgin Islands.
Throughout the course of that six-year period, the Smith-led Office of the
Premier spent $2,108,014.02 for consultancy services while his Finance
Ministry expended $14,336,549.98.
The BVI Financial Services Commission, in the meantime, dumped
$3,833,845.66 into consultancies. The state-owned National Bank of the
Virgin is Islands only expended $716,608.50, Dr Smith said.
BVI Airways the biggest spend
The single largest expenditure of the total amount spent on consultancies
was the $7 million to BVI Airways and its affiliated companies back in 2015.
This $7 million sum was for the aforesaid airline to commence direct,
nonstop flights between BVI and Miami, USA. These services, however,
were never received.
Over the six years, government also paid for consultancies in a number of
areas inclusive of marketing and public relations, auditing services,
technology services, legislative drafting services, examination services,
public finance and financial services consultancy, among a list of other
services.
While disclosing the figures to the House, Dr Smith noted that the hiring of
consultants is part of the “normal course of business for any organisation”.
He said consultancies are done when expert advice and/or skills may be
required, or when services are needed that cannot be sourced from
within an organisation.
“This government is no exception, and therefore is required to engage
such services to ensure efficiency in its operations from time to time,” Dr
Smith said.
He was, at the time, answering questions from former Opposition Leader
Andrew Fahie who, in recent times, has criticised government for what he
suggested was the wasting taxpayer dollars on unnecessary
consultancies.
<< Back to news headlines >>
Dominica Business Forum to hold consultation to help private sector
“regain its voice” Friday 4th January, 2019 – Dominica News Online
The Dominica Business Forum Inc. plans to provide an opportunity for the
private sector to break its silence on “numerous issues relating to the
economic development of Dominica.”
President of the organization, Severin Mckenzie, says a National Economic
Forum: “Voices of the Private Sector”, will be held on February 6th, 2019.
“Its main focus will be on the key sectors of the economy including
agriculture, commercial enterprises, tourism, manufacturing, education,
health and other critical issues such as Climate change, Cannabis
legalization and the impact of the Citizenship by Investment Programme,”
Mckenzie said in a 2018 end of year message.
He said the role and status of the private sector within Dominica’s
economy will also be highlighted.
McKenzie commended the private sector for its “great perseverance
throughout those trying times” which followed the devastating passage of
Hurricane Maria 2017.
“In the aftermath of Hurricane Maria in September 2017, the private sector
in Dominica was challenged and, for many, it appeared that all hope was
lost, but throughout 2018, our private sector enterprises demonstrated
their resolve and resilience to rise from the ashes to the extent that, as we
approach a new year, the private sector is more determined to take its
rightful place as the engine of growth within the Dominican economy,” he
said
He commended the efforts of the utility companies in restoring electricity,
water and telecommunication services to most of the population and
cited the reopening and commencement of upgraded facilities such as
the new look Whitchurch IGA, the new Do It Centre, Fresh Market and
many other private sector enterprises as “a clear indication of the private
sector’s determination to broaden its base within the free enterprise
system, in spite of the challenges of doing business in Dominica.”
McKenzie pointed out that a few institutions never reopened after Maria
“due to a lack of opportunity and various circumstances” and went on to
lament the exit of Ross University School of Medicine, Dominica Brewery
and Beverage Limited (Kubuli), the demise of Bello Products Ltd. and
several other manufacturing and business enterprises which were “blown
away” with Maria’s winds.
“We also continue to lament a public procurement environment in which
local enterprises and talent are not given the opportunity to contract with
the government on delivery of the more lucrative works such as housing
and dredging, and which, in general, does not follow the current
legislative protocol and generally lacks transparency,” Mckenzie said.
He added that growth of the local private sector in these areas has been
clearly retarded due to the lack of opportunity.
“Consequently, in an increased market post Hurricane Maria, some sector
players have been struggling to make a contribution to the economy.
Notwithstanding these, without the contribution of the private sector in the
recovery process in the aftermath of Hurricane Maria, the situation in
Dominica would have been much worse,” Mckenzie asserted.
He said that as another general election approaches in Dominica, the
Dominica Business Forum Inc. intends to participate in, and promote
educational discussions and events to enhance the level of consciousness
of the population.
“The Dominica Business Forum Inc. is also concerned about the potential
for political instability on the island and calls on all sides within the political
spectrum to take the necessary measures through dialogue and
consultation, to avoid any further deterioration of the investment climate
in Dominica. History has proven that the Dominica private sector and
citizenry are the most severely affected by both natural and man-made
disasters,” McKenzie remarked.
Asserting that the private sector continues to be the main source of
employment in Dominica, Mckenzie stressed the need for vibrant private
sector organisations and the protection of private sector investments in
the country.
The Dominica Business Forum Inc. represents the interests of the Dominica
Association of Industry and Commerce (DAIC), Dominica Hotel and
Tourism Association (DHTA), Dominica Manufacturers Association (DMA),
Dominica Employer’s Federation (DEF), Builders and Contractors
Association of Dominica (BCAD) and the OECS Business Council.
The organization’s president said membership is open to all private sector
and civil society organisations who are interested in developing a free
and just society as dictated in the constitution of the Commonwealth of
Dominica.
He stressed that the success of the private sector depends on itself and
that 2019 will be an opportunity to regain its voice.
<< Back to news headlines >>
End of Year Gifts for Dominica’s Tourism Industry Saturday 5th January, 2019 – Dominica News Online
The Discover Dominica Authority is pleased to inform of the end of year
gifts that the local Industry has received. Over the past few weeks,
various stakeholders and destination Dominica have received good news.
Since reopening November 1, 2018, Secret Bay, an exclusive and intimate
eco-luxury boutique resort and the island’s only 5-star hotel, received two
coveted awards: The resort was named one of Conde Nast Traveler’s
2018 Reader’s Choice Awards: “Best Resorts in the Caribbean.” This
accolade is determined by the public and this year’s list generated
429,000 responses that helped land Secret Bay fourth out of 50 Caribbean
resorts. Additionally, Secret Bay was named one of 10 Caribbean
properties that made Fodor’s prestigious list of “100 Most Incredible Hotels
in the World.” Over the years, Secret Bay has received numerous
accolades.
Secret Bay features a limited collection of six freestanding, secluded and
sustainably-crafted villas with their own individual plunge pools that are
immersed in nature and positioned on a breath-taking clifftop overlooking
the azure Caribbean Sea. Offering a wealth of transformational
experiences, fine dining, wellness facilities, architectural residential-style
villas and night and day access to remote beaches, Secret Bay provides
guests with the ultimate five-star hideaway experience. Secret Bay is
located at Ti Baie in the north of Dominica and can be reached at
[email protected] and online at https://secretbay.dm.
These two accomplishments come soon after our very own Tamarind Tree
Hotel was nominated for and awarded with the British Guild of Travel
Writers BGTW Annual Tourism Award for Best Tourism Project in the Wider
World Category for their project “Clearance and Restoration of Segment
11 of the Waitukubuli National Trail (WNT) in Dominica.” The Tamarind Tree
Hotel is a 21-room property which overlooks the Caribbean Sea atop a
100 ft cliff. The property is ideally located between two beaches and with
easy access to hiking trails. For more information about the hotel’s trail
restoration project contact the Tamarind Tree Hotel at
[email protected] or at
https://www.tamarindtreedominica.com/.
From December 17th through to December 28th, Dominica welcomed
nineteen (19) different cruise ships to our shores, totalling 37,579 cruise
passengers. On Monday December 17th, Dominica welcomed three (3)
ships for the first time this season as Dominica was visited by the MV
Koningsdam, MV Celebrity Silhouette and the SY Royal Clipper. During
that period the destination also hosted two ships in port on five different
occasions.
Dominica once again benefited from the FCCA Foundation Holiday Gift
Project. Crew members of MV Celebrity Silhouette—along with West
Dominica Children’s Federation, the Ministry of Tourism and Culture and
Discover Dominica Authority (DDA)—brought holiday cheer and gifts to
200 Dominican children.
For more information on Dominica, contact Discover Dominica Authority
at 767 448 2045. Or, visit Dominica’s official website:
www.DiscoverDominica.com, follow Dominica on Twitter and Facebook
and take a look at our videos on YouTube.
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Dominicans continue to benefit from post-Maria work of IOM Monday 7th January, 2019 – Dominica News Online
Dominicans continue to benefit from the work of The International
Organization for Migration (IOM) which has been assisting with the
recovery and reconstruction of the island after the destructive passage of
hurricane Maria in September, 2017.
Many people around Dominica were affected and had to be transported
to shelters because their homes were destroyed due to hurricane Maria.
The IOM built 80 core houses for internally displaced people around the
Island through their early shelter recovery program funded by Australia
Aid and habitat for humanity.
IOM is now implementing a new project to undertake repairs to 12
emergency shelters with funding from USAID. This project, to improve
emergency preparedness through emergency shelter, also includes a
survey to determine the number and status of people still living in
emergency shelters. The survey has found close to 300 people still living in
25 shelters across the island.
HAM radios will also be procured and training provided in collaboration
with the Dominica Amateur Radio Club Inc (DARCI). Training will be
provided to shelter managers and other community members interested
in learning about shelter management principles, and to make the
communities more prepared for potential emergencies.
IOM in coordination with the Youth Development Division, Dominica Youth
Business Trust (DYBT) and the Ministry of Commerce Small Business and
Enterprise Development has received funding from the IOM Development
Fund to establish a small-scale business development/support centre in
the city of Roseau. The main objective of the program is to build the
capacity of the government, through the DYBT, to provide training and
financial support to young entrepreneurs, setting the foundation for
increased business success, job creation, and reduced outward
migration.
At the request of the Government of Dominica and the Caribbean
Development Bank, IOM Dominica will conduct a 2-month research to
determine the number of people, and particularly children, who migrated
out of Dominica after Hurricane Maria.
The IOM according to the organization’s website, works to help ensure the
orderly and humane management of migration, to promote international
cooperation on migration issues, to assist in the search for practical
solutions to migration problems and to provide humanitarian assistance to
migrants in need, including refugees and internally displaced people.
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