SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: [email protected]
▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-
▪ Government of Barbados’s local currency rating upgraded to CariBB
▪ PanJam Investment Limited’s initial rating assigned at CariBBB+
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+
▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+
▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+
▪ The Pegasus Hotels of Guyana Limited’s rating upgraded to CariBBB
▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+
▪ Home Mortgage Bank’s rating reaffirmed at CariA
▪ NCB Cayman Limited’s rating reaffirmed at CariA
▪ NiQuan Energy Trinidad Limited’s initial rating assigned at CariA+
OUR UPCOMING WORKSHOPS!
Restructuring Problem Credits 6th & 7th February 2019 Jamaica
Benefits of a CariCRIS Rating to a Bank:
Latest Rating Actions by CariCRIS
• Reduce your borrowing cost
• Boost investor confidence by improving your corporate image
• Support capital adequacy measures by providing forward-looking risk
assessments
• Facilitate the placement of debt issues to a wide investment base
• Promote the adoption of stronger risk management practices
DATE
WORKSHOP
COUNTRY
Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings
CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.
REGIONAL
Trinidad and Tobago
CLICO case plagued by late payment woes
LATE receipt of State funds is playing havoc with the administration of
justice and, most dramatically, with the landmark case arising out of the
collapse of insurance giant CLICO, which was rescued with a taxpayer-
funded bailout of over $20 billion.
Lake Asphalt moves on without bitumen lifeline
WITH 80 PER CENT of its revenue gone with the closure of Petrotrin, state-
owned Lake Asphalt Trinidad and Tobago Ltd (LATT) has been stripped of
its security blanket of a guaranteed supply of bitumen from the refinery
and must now make some life-altering decisions if it is to survive and thrive.
SFC leads advancers
ACTIVITY on the first-tier market decreased by 54.02 per cent on a total of
466,334 shares crossing the floor, compared to 1,014,182 shares traded in
the previous week. The value of shares traded was down by 51.18 per
cent to $12,673,938.52 from the previous week's value of $ 25,959,717.59.
Barbados
Mia on a high
Prime Minister Mia Amor Mottley says she feels validated by Government’s
decision to support the Barbados Cricket Association’s (BCA) bid to host
international cricket matches between West Indies and England at
Kensington Oval.
PM Mottley to attend CARICOM-UN talks on Venezuela
Prime Minister Mia Mottley will join two Caribbean Community (CARICOM)
colleagues in New York on Monday for talks with UN Secretary General
Antonio Guterres to discuss the crisis in Venezuela.
Jamaica
Gov't Takes On $2b IDB Loan To Develop High-Skilled Workforce
The government will be using a near $2 billion loan from the Inter-
American Development Bank (IDB) to finance the training of Jamaicans
for high-skilled jobs.
Jamaican Wellness Firm Inks Distribution Deals In Mexico, Colombia
Jamaican health and wellness distribution firm Zimmer & Company has
entered into distribution deals that will see its products being made
available to the market in Mexico and Colombia.
Govt plans to spend millions improving services at tax offices
Taxpayers concerned about the long wait and slow processing at the
main tax offices can expect some relief in the near future.
NCB Capital Markets to waive arrange fees for small companies listing on
Junior Market
NCB Capital Markets is making a greater effort to get behind Small and
Medium enterprises (SMEs) and together with its Group commercial
banking arm will be placing greater emphasis on capacity building for
SMEs that have junior maket listing potential.
Guyana
IMF to have fixed petroleum team at GRA
A team from the International Monetary Fund (IMF) which specializes in
petroleum taxation and audits will be housed at the Guyana Revenue
Authority (GRA) for two years. According to GRA’s Commissioner General,
Godfrey Statia, the team of analysts gets started on February 1.
UG introduces degree programmes in oil and gas
At an official launch on Friday, The University of Guyana (UG) launched
two-degree programmes which are aimed at getting Guyanese ready to
function in the oil and gas sector.
CEMEX opens new concrete plant
Guyana’s economy continues to attract large international companies
who make big investments indicating their confidence in the economy.
Guyana Continued
Honouring FATCA Obligations… GRA hires int’l firm to gather info on
accounts held by US taxpayers
The Guyana Revenue Authority (GRA) has hired international technology
firm, Vizor Solution, to gather information on accounts held by US
taxpayers at financial institutions (FIs). The company will also facilitate the
production of an extract for transmission to the US Internal Revenue
Service (IRS).
Antigua and Barbuda
ABWREC to receive additional manpower
Government has agreed to provide assistance in the form of more
manpower to the Antigua and Barbuda Waste Recycling Corporation
(ABWREC), as the company seeks to cope with increased volumes of
recyclable plastic bottles and aluminium cans.
Dominica
CDB, EU and UK to help Dominica make public buildings more energy
efficient
The government of Dominica’s mission to make its public buildings more
energy efficient and slash its energy bill is getting financial support from
the Caribbean Development Bank (CDB), the European Union and the
United Kingdom’s Department for International Development (DFID).
Dominica Continued
Dominica to provide nearly entire population with geothermal energy,
funded partly by its citizenship programme
In December, Dominica’s energy minister, Ian Douglas, addressed the
government’s plans to build a geothermal plant in the third quarter of
2019. Construction will be set on the outskirts of the capital city of Roseau.
It hopes to power 23,000 homes with clean geothermal energy, which
represents approximately 90% of the entire population.
Dominican Republic
Dominican Republic to get nearly 2,000 hotel rooms for US$200M
The groups Velutini and IEMCA on Fri. announced a joint tourism
development project in Playa Dorada, Puerto Plata, of 1,012 rooms on the
north coast to be built at a cost of US$100 million.
Fuels rise a third straight week, except natural gas
The Industry and Commerce Ministry on Friday posted the fuel prices for
the week from January 26 to February 1, when premium gasoline will rise
RD$2.50 to RD$214.40 per gallon, and regular gasoline will cost RD$197.40,
or RD$2.10 more.
Belize
FUEL PRICES INCREASE MIDNIGHT, JANUARY 25
BELMOPAN, Thurs. Jan. 24, 2019– The Ministry of Finance announces that
at midnight on January 25th, the pump price for regular gasoline will
increase by 20 cents from $9.31 to $9.51 per gallon.
Haiti
Jobs in Haiti down by -3.1%
According to the Haitian Institute of Statistics and Informatics (IHSI), the
Employment Index (EI) in the fourth quarter of fiscal year 2017-2018 shows
a negative annual variation of -3.1% after having increased by +2.5 % in
the previous quarter.
Venezuela
UN calls for dialogue to ease tensions in Venezuela; Security Council
divided over path to end crisis
The top UN political official told the Security Council on Saturday that
dialogue and cooperation were vital to ending the crisis in Venezuela, but
during a contentious debate, Council members disagreed over the
appropriate response to mass protests in the South American country and
competing claims to the presidency.
Other Regional
Beaches Resort Turks and Caicos confirms indefinite closure in 2021
Rumors had been swirling since Thursday that Beaches Resort Villages and
Spa in the Turks and Caicos was planning a long term shut down in 2021
due to a massive bill, which is in dispute, with the Turks and Caicos Islands
Government.
INTERNATIONAL
United States
Oil falls as U.S. adds rigs; still set for best January in 14 years
Oil fell 1 percent on Monday after U.S. companies added rigs for the first
time this year, a signal that crude output may rise further, but the price is
still on course for its strongest gain in the month of January for 14 years.
$1.5 trillion U.S. tax cut has no major impact on business capex plans
The Trump administration’s $1.5 trillion cut tax package appeared to have
no major impact on businesses’ capital investment or hiring plans,
according to a survey released a year after the biggest overhaul of the
U.S. tax code in more than 30 years.
United Kingdom
UK parliament will get second chance to vote on PM May's Brexit deal
British Prime Minister Theresa May intends to give parliament a second
chance to approve a Brexit deal as soon as possible, her spokesman said
on Monday, adding that negotiations to change the deal so it can win
lawmakers’ support were ongoing.
UK union seeks urgent talks with Tesco over job cuts report
British trade union Unite said on Monday it was seeking urgent talks with
the management of Tesco after a Sunday newspaper report that the
supermarket group is planning to cut up to 15,000 jobs.
Europe
Euro zone lending growth defies gloom, M3 jumps in December
Euro zone lending growth held steady last month while a broader
indicator of money circulating in the economy surged, data showed on
Monday, defying multiplying signs of gloom in the 19-member currency
bloc.
Greece to issue new five-year bond 'in near future'
Greece is preparing to issue a new five-year bond in its first attempt to tap
financial markets since it emerged from an international bailout program
last August.
European shares on the back foot ahead of eventful week
European shares opened in negative territory on Monday as optimism
about the end of the U.S. government shutdown faded and investors
braced for an eventful week with key votes on Brexit, Sino-U.S. trade talks
and a Federal Reserve policy decision.
France prepared to step up spending cuts
French Finance Minister Bruno Le Maire said on Monday that he prepared
to step up public spending cuts to finance faster tax cuts if people voiced
a desire for lower tax in a nationwide debate underway.
China
Chinese iron ore traders face uncertainty after Vale's Brazilian mine
disaster
Vale SA’s deadly mine disaster in Brazil has created uncertainty for
China’s iron ore market at a time when demand for supply from the South
American country is rising, multiple Chinese ore traders said on Monday.
China central bank approves S&P Global's entry into China's credit rating
market
China’s central bank said on Monday it had approved the entry of S&P
Global Inc into the country’s credit rating market, as part of a wider drive
to encourage foreign investors to diversify into yuan-denominated assets.
China Continued
China encourages insurers to invest in good quality stocks, bonds
China is encouraging insurance institutions to invest in more good quality
stocks and bonds to improve their portfolios, its banking and insurance
regulator said on Monday.
Global
Stocks edge down on China worries as trade talks, Fed decision loom
World shares slipped into the red on Monday, with equities markets from
Europe to Asia buffeted by nerves over China’s economy and investors
staying cautious ahead of a week packed with major events.
Qatar National Bank hires banks for U.S. dollar bond deal
Qatar National Bank, the largest bank by assets in the Middle East and
Africa, is planning to issue shortly U.S. dollar-denominated bonds and has
hired banks to arrange the debt sale, sources familiar with the matter said.
Saudi government to spend 100 billion riyals on industry plan
The Saudi Arabian government will spend 100 billion riyals ($27 billion) in
2019 and 2020 as part of its industrial development program, Aabed
Abdullah al-Saadoun, deputy minister of Energy, Industry and Mineral
Resources said on Monday.
Climate Investment Funds to issue $500 million green bond this year or next
The Climate Investment Funds (CIF) plans to raise $500 million this year or
next by issuing a green bond to finance renewable energy projects, the
organization’s head said on Sunday.
Rusal shares soar, aluminum falls as U.S. lifts sanctions
U.S. President Donald Trump’s administration on Sunday lifted sanctions on
the core empire of Russian tycoon Oleg Deripaska, including aluminum
giant Rusal and its parent En+, despite a Democrat-led push to maintain
them.
Oil falls as U.S. adds rigs; still set for best January in 14 years Monday 28th January, 2019 – Reuters
Oil fell 1 percent on Monday after U.S. companies added rigs for the first
time this year, a signal that crude output may rise further, but the price is
still on course for its strongest gain in the month of January for 14 years.
The ongoing trade dispute between the United States and China looks
unlikely to end any time soon and the impact of the dispute on the
Chinese economy is increasing.
Brent crude oil futures were down $1.14 at $60.50 a barrel by 1038 GMT,
while U.S. futures were down $1.05 at $52.64 a barrel.
U.S. crude production, which hit a record 11.9 million barrels per day
(bpd) late last year, has undermined sentiment in the oil market, traders
said.
U.S. energy firms last week increased the number of rigs looking for new oil
for the first time since late December to 862, Baker Hughes energy services
firm said in its weekly report on Friday.
“The increase in drilling activity in the U.S. as reported by the oil service
provider Baker Hughes on Friday evening is generating headwind,”
Commerzbank said in a note.
“Clearly the significantly lower prices in the fourth quarter are prompting
shale oil producers to exercise restraint. Because prices have risen
considerably since the start of the year and there is a high number of
drilled but uncompleted wells, drilling activity is likely to recover soon.”
Even with all the uncertainty over the outlook for demand and evidence
of growing supply, the oil market has benefited this month from the start of
another round of production cuts by OPEC and its partners, as well as
robust trade in physical barrels of crude led by China.
The price has risen by 12 percent so far in January, the largest increase in
percentage terms in the first month of the year since 2005, when it rose by
14 percent.
Investors have added to their bets on a sustained rise in the oil price this
month for the first time since September, according to data from the
InterContinental Exchange.
But much of the demand outlook hinges on China and whether or not its
refiners will continue to import crude at 2018’s breakneck pace.
Industrial companies in China reported a second monthly fall in earnings
in December, despite the government’s efforts to support borrowing and
investment.
“Persistent weakness seen in Chinese economic data has raised downside
risks ... of lower crude oil imports by Beijing in 2019,” said Benjamin Lu of
Singapore-based brokerage Phillip Futures.
<< Back to news headlines >>
$1.5 trillion U.S. tax cut has no major impact on business capex plans Monday 28th January, 2019 – Reuters
The Trump administration’s $1.5 trillion cut tax package appeared to have
no major impact on businesses’ capital investment or hiring plans,
according to a survey released a year after the biggest overhaul of the
U.S. tax code in more than 30 years.
The National Association of Business Economics’ (NABE) quarterly business
conditions poll published on Monday found that while some companies
reported accelerating investments because of lower corporate taxes, 84
percent of respondents said they had not changed plans. That compares
to 81 percent in the previous survey published in October.
The White House had predicted that the massive fiscal stimulus package,
marked by the reduction in the corporate tax rate to 21 percent from 35
percent, would boost business spending and job growth. The tax cuts
came into effect in January 2018.
“A large majority of respondents, 84 percent, indicate that one year after
its passage, the corporate tax reform has not caused their firms to change
hiring or investment plans,” said NABE President Kevin Swift.
The lower tax rates, however, had an impact in the goods producing
sector, with 50 percent of respondents from that sector reporting
increased investments at their companies, and 20 percent saying they
redirected hiring and investments to the United States from abroad.
The NABE survey also suggested a further slowdown in business spending
after moderating sharply in the third quarter of 2018. The survey’s measure
of capital spending fell in January to its lowest level since July 2017.
Expectations for capital spending for the next three months also
weakened.
“Fewer firms increased capital spending compared to the October survey
responses, but the cutback appeared to be concentrated more in
structures than in information and communication technology
investments,” said Swift, who is also chief economist at the American
Chemistry Council.
According to the survey, employment growth improved modestly in the
fourth quarter of 2018 compared to the third quarter. Just over a third of
respondents reported rising employment at their firms over the past three
months, up from 31 percent in the October survey. The survey’s forward-
looking measure of employment slipped to 25 in January from 29 in
October.
<< Back to news headlines >>
UK parliament will get second chance to vote on PM May's Brexit deal Monday 28th January, 2019 – Reuters
British Prime Minister Theresa May intends to give parliament a second
chance to approve a Brexit deal as soon as possible, her spokesman said
on Monday, adding that negotiations to change the deal so it can win
lawmakers’ support were ongoing.
The spokesman said he could not imagine any circumstances under
which parliament would not be given another chance to vote on
approving a Brexit deal, and restated that May is committed to leaving
the European Union on March 29.
<< Back to news headlines >>
UK union seeks urgent talks with Tesco over job cuts report Monday 28th January, 2019 – Reuters
British trade union Unite said on Monday it was seeking urgent talks with
the management of Tesco after a Sunday newspaper report that the
supermarket group is planning to cut up to 15,000 jobs.
Tesco is Britain’s biggest private sector employer with a staff of over
300,000.
Unite said it was recognised at four distribution centres with about 1,000
members who deliver to Tesco stores across the UK.
“While the reports centre on job losses in-store, such as at the bakeries
and deli counters, we still need to know what this could mean for our
members,” said Adrian Jones, Unite national officer for retail distribution.
The Mail on Sunday reported that up to 15,000 jobs could be put at risk by
the changes, which are likely to affect the majority of Tesco’s 732 larger
stores.
<< Back to news headlines >>
Greece to issue new five-year bond 'in near future' Monday 28th January, 2019 – Reuters
Greece is preparing to issue a new five-year bond in its first attempt to tap
financial markets since it emerged from an international bailout program
last August.
The bond issue will be launched “in the near future, subject to market
conditions”, authorities said in a bourse filing, without providing further
information on the timing or the amount sought.
BofA Merrill Lynch, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley
and SG CIB have been picked as joint lead managers for the transaction.
The yield on 10-year Greek debt was down 1.5 basis points at 4.07
percent, its lowest since late September last year.
It dropped to a four-month low after the country’s parliament approved a
deal last week that changes the name of neighboring Macedonia,
ending a 28-year row.
Reuters reported last week that the country planned a five-year
syndicated issue once the vote on Macedonia’s name was out of the
way.
Greece, which emerged in August from its third international bailout since
2010, has tested market appetite under the watch of its international
lenders in recent years. It sold 3 billion euros of seven-year bonds nearly a
year ago.
Now, it wants to return to bond markets as a regular borrower.
<< Back to news headlines >>
European shares on the back foot ahead of eventful week Monday 28th January, 2019 – Reuters
European shares opened in negative territory on Monday as optimism
about the end of the U.S. government shutdown faded and investors
braced for an eventful week with key votes on Brexit, Sino-U.S. trade talks
and a Federal Reserve policy decision.
At 0951 GMT the pan-European STOXX 600 was down 0.3 percent with
most bourses and sectors in the red as news of the second consecutive
drop in Chinese industrial profits in December dampened the mood.
“Investors may want to stay cautious ahead of what is going to be a busy
week with Central bank speeches, the Brexit vote in the UK Parliament
and several important data releases in the U.S.” wrote ActivTrade analyst
Pierre Veyret.
A number of corporate developments triggered sharp moves such as for
the shares of Germany’s MorphoSys which sank 5.4 percent, the worst
performer on the STOXX, after a U.S. court ruling on three patents.
Another strong loser was Alstom, which fell 2.1 percent after the French
group and Germany’s Siemens offered new concessions to try to satisfy
antitrust concerns of the European Commission for their plans to create a
joint European rail champion.
Among winners, shares of British online grocer Ocado jumped 3.7 percent
after a report it was in talks about a tie-up with Marks & Spencer to launch
of a food delivery service. Ocado topped the FTSE 100 after hitting its
highest since Sept. 6.
Mining stocks were the standout gainers, up 0.9 percent, as iron ore prices
in China rallied after Brazil’s mining agency ordered Vale, the world’s
biggest iron ore producer, to halt operations at one of its mines.
French engineering consulting firm Altran Technologies lost ground at the
open but limited losses to 1.5 percent after it announced it had been the
target of a cyber attack that hit operations in some European countries.
In the banking sector, Spain’s Bankia was among the few stocks making
gains, rising 0.7 percent after fourth-quarter earnings showed better-than-
expected net interest income.
Switzerland’s CEVA Logistics rose 0.5 percent after it called a 1.66 billion
Swiss franc ($1.67 billion) bid from France’s CMA CGM too low.
<< Back to news headlines >>
Euro zone lending growth defies gloom, M3 jumps in December Monday 28th January, 2019 – Reuters
Euro zone lending growth held steady last month while a broader
indicator of money circulating in the economy surged, data showed on
Monday, defying multiplying signs of gloom in the 19-member currency
bloc.
With the area’s three biggest economies - Germany, France and Italy -
barely growing last quarter and sentiment indicators heading lower, banks
were expected to tighten lending, putting a further brake on growth.
Yet figures published by the European Central Bank on Monday remained
at or near their post-crisis highs, supporting the ECB’s argument that bloc
was experiencing a slowdown and not a downturn or the start of a
recession.
Household lending held steady at post-crisis high of 3.3 percent while
corporate lending expanded by 4.0 percent, not far from its post-crisis
peak of 4.3 percent hit in September.
ECB President Mario Draghi warned last week that the growth dip could
be bigger and longer than previously feared but stuck to his previous view
that the slowdown was temporary and not the beginning of a recession.
Still, markets now see almost no chance of an interest rate increase this
year and instead see more stimulus measures from the ECB, possibly fresh
loans to the bank sector, in part to maintain ample liquidity and the flow
of credit to the corporate sector.
Still, lending may slow in the months ahead after banks in a key ECB
survey recently predicted a slowdown and tighter lending standards.
The annual growth rate of the M3 measure of money supply, which often
foreshadows future activity, jumped to 4.1 percent from 3.7 percent in
November, beating market expectations for 3.8 percent. It was the best
M3 reading since last June.
<< Back to news headlines >>
France prepared to step up spending cuts Monday 28th January, 2019 – Reuters
French Finance Minister Bruno Le Maire said on Monday that he prepared
to step up public spending cuts to finance faster tax cuts if people voiced
a desire for lower tax in a nationwide debate underway.
“Should we go further on tax cuts? The grand debate will offer an answer
to this fundamental question, which involves real choices as a society,” Le
Maire said.
“I for one am ready to reduce public spending on things people do not
consider a priority in order to step up tax cuts,” Le Maire added, speaking
in a business address to business leaders.
<< Back to news headlines >>
Chinese iron ore traders face uncertainty after Vale's Brazilian mine
disaster Monday 28th January, 2019 – Reuters
Vale SA’s deadly mine disaster in Brazil has created uncertainty for
China’s iron ore market at a time when demand for supply from the South
American country is rising, multiple Chinese ore traders said on Monday.
A dam holding mine waste at Vale’s Corrego do Feijao mine collapsed
on Friday, burying mining facilities and nearby homes in the town of
Brumadinho, killing dozens and leaving the community in shock as
hundreds remain missing.
The Corrego disaster is the second deadly collapse at a Vale-owned mine
since 2015, when a dam holding tailings, or mine waste left after ore
extraction, was breached at a mine owned by Samarco Mineracao SA, a
joint venture of BHP Group and Vale.
The Corrego mine accounts for 1.5 percent of output for Vale, the world’s
largest iron ore miner, said Helen Lau, analyst at Argonaut Securities.
However, four Chinese iron ore traders said they were concerned that
supplies of high-grade Brazilian ore could tighten if the government orders
other Vale mines shut to probe for additional safety issues.
“We’re worried that the mine accident might lead to higher premiums on
low-aluminium iron ore,” said an iron ore trader with Zheshang
Development Group. He declined to be identified due to company
policy.
Vale is the world’s top supplier of low-aluminium iron ore, preferred by
Chinese mills for its low impurity level.
The Samarco site remains closed after the 2015 incident, though Vale
Chief Executive Officer Fabio Schvartsman said on Friday the site could
resume one-third of its output in 2020.
Vale did carry out safety tests at its other mines in Brazil after the Samarco
disaster and its main export port in the region, Tubarao, was closed for
four days in 2016 to fix environmental issues.
“(Samarco) led to a long halt in operations and we don’t know if this one
will cause even longer and broader disruption for mining activities at
Vale,” said an iron-ore trader based in Qingdao.
He declined to be identified as he is not authorized to speak to media.
China’s demand for higher grade ore is returning as profit margins at steel
mills have risen in recent weeks because of increasing steel demand.
(Graphic: China crude steel production vs rebar & hot-rolled coil margins -
tmsnrt.rs/2S2A2yQ)
If margins remain high, mills will increase high grade iron ore consumption
to boost output, said the Qingdao trader.
The most-active iron ore futures on China’s Dalian Commodity Exchange
soared nearly 6 percent on Monday trade to 567.5 yuan ($84.31) a tonne,
their highest in 16 months.
<< Back to news headlines >>
China central bank approves S&P Global's entry into China's credit rating
market Monday 28th January, 2019 – Reuters
China’s central bank said on Monday it had approved the entry of S&P
Global Inc into the country’s credit rating market, as part of a wider drive
to encourage foreign investors to diversify into yuan-denominated assets.
The People’s Bank of China (PBOC) said in a statement that it would
continue to push the opening up of its credit rating industry for additional
qualified foreign ratings agencies.
<< Back to news headlines >>
China encourages insurers to invest in good quality stocks, bonds Monday 28th January, 2019 – Reuters
China is encouraging insurance institutions to invest in more good quality
stocks and bonds to improve their portfolios, its banking and insurance
regulator said on Monday.
“This will help ensure stability in the capital markets and will allow insurers
to improve their investment portfolios,” the China Banking and Insurance
Regulatory Commission said in a brief statement posted on its website.
<< Back to news headlines >>
Stocks edge down on China worries as trade talks, Fed decision loom Monday 28th January, 2019 – Reuters
World shares slipped into the red on Monday, with equities markets from
Europe to Asia buffeted by nerves over China’s economy and investors
staying cautious ahead of a week packed with major events.
Major European bourses fell in morning trade, mirroring a retreat for Asian
peers as gloomy data on China’s industrial profits outweighed any boost
from the tentative end to the U.S. government shutdown late last week.
At the start of a busy week, investors were focused on Sino-U.S. trade talks
and the Federal Reserve’s policy meeting.
Also in focus was a looming twist in Britain’s exit from the European Union,
with crucial votes due on Tuesday in the British parliament designed to
break the Brexit deadlock.
By 1150 GMT, The MSCI world equity index, which tracks shares in 47
countries, was down 0.1 percent.
MSCI’s main European Index dropped 0.5 percent, with the broader Euro
STOXX 600 losing the same. Major indexes in France, Germany and Britain
all fell.
In Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul had earlier all
closed down, though MSCI’s broadest index of Asia-Pacific shares outside
Japan was flat.
Investors said stocks fell on worries over a second straight monthly fall in
profits for China’s industrial firms.
The data suggested trouble ahead for Chinese manufacturers already
struggling with falling orders, job layoffs and factory closures amid a
protracted trade war with the United States.
“A slowdown in the Chinese economy could be sometimes taken as an
idiosyncratic event which would be dealt with by Beijing,” said Philip
Shaw, chief economist at Investec.
“It’s pretty clear that the current situation is more global, in terms of the
tariff tension between the U.S. and China and the threat of that dispute
spilling over more widely.”
Investors are now waiting for Chinese Vice Premier Liu He’s visit to
Washington on Jan. 30-31, for the next round of trade negotiations with
the United States.
With the sides still far from resolving trade issues, the dollar stood firm as
traders sought a safe haven as they await news from U.S.-China talks on
Tuesday and Wednesday.
The dollar index - a gauge of its value versus six major peers - was flat at
95.793.
“In this environment the dollar is holding up well,” said Thu Lan Nguyen, a
forex strategist at Commerzbank. “I assume that this will continue to be
the case, even as the conflict intensifies at the end of the week,” she said,
referring to the talks.
The dollar will also get a strong steer from this week’s Fed meeting, where
the central bank is expected to signal a pause in its tightening cycle and
to acknowledge growing risks to the world’s biggest economy.
Though the Fed has forecast two more interest rate hikes for 2019, a
darkening global economic outlook and highly volatile stock markets
have clouded the policy picture.
BREXIT VOTES
Elsewhere in currency markets, sterling drifted lower ahead of crucial
votes in the British parliament aimed at breaking the Brexit deadlock.
The British currency lost 0.3 percent to $1.3164, as investors consolidated
positions ahead of Tuesday’s Brexit votes.
Lawmakers earlier this month rejected Prime Minister Theresa May’s deal
to leave the EU, which included a nearly two-year transition period to help
minimize economic disruption. That defeat set up a series of votes in
parliament, through which lawmakers and the government will try to find
a way forward.
Elsewhere, Germany’s 10-year government bond yield was marginally
lower at 0.194 percent, having fallen last week when European Central
Bank President Mario Draghi warned that risks to the euro zone economy
had eased.
Draghi is due to speak later on Monday at the European Parliament in
Brussels. Investors said they will look for any further details on potential
changes to monetary policy.
Brent crude futures were down 1.8 percent, at $60.56 a barrel.
The fall came as moves by U.S. firms to add rigs signaled that crude output
may rise further, and worries grew over the signs of economic slowdown in
China, the world’s second-largest oil user.
Gold was slightly down. Spot gold was down 0.2 percent at $1,300.56 per
ounce, hovering just below a more than 7-month high of $1,304.40
reached earlier in the session.
<< Back to news headlines >>
Qatar National Bank hires banks for U.S. dollar bond deal Monday 28th January, 2019 – Reuters
Qatar National Bank, the largest bank by assets in the Middle East and
Africa, is planning to issue shortly U.S. dollar-denominated bonds and has
hired banks to arrange the debt sale, sources familiar with the matter said.
The planned bond issue would be QNB’s first public dollar bond
transaction in over two years.
The lender has hired a group of banks including Barclays, Deutsche Bank,
ING and Standard Chartered to arrange the transaction, said the sources.
QNB did not immediately respond to a request for comment.
<< Back to news headlines >>
Saudi government to spend 100 billion riyals on industry plan Monday 28th January, 2019 – Reuters
The Saudi Arabian government will spend 100 billion riyals ($27 billion) in
2019 and 2020 as part of its industrial development program, Aabed
Abdullah al-Saadoun, deputy minister of Energy, Industry and Mineral
Resources said on Monday.
The program is offering investment opportunities in mining, industry,
logistics and energy sectors inside the kingdom, according to a
document distributed to participants at an investment conference the
deputy minister was addressing in Riyadh.
The program is offering investors the opportunity to invest in projects such
as plants that manufacture rubber, catalysts and vehicles, it said.
Saudi Arabia’s 2019 budget allocated SAR 33 billion for the energy,
industry, mining and logistics sectors, Energy Minister Khalid Al-Falih said in
a tweet in December.
That is more than three times the amount allocated in the previous
budget, he said, in a sign the kingdom is keep to boost diversification in
these key sectors to create jobs for Saudis and wean economy off oil.
<< Back to news headlines >>
Climate Investment Funds to issue $500 million green bond this year or
next Monday 28th January, 2019 – Reuters
The Climate Investment Funds (CIF) plans to raise $500 million this year or
next by issuing a green bond to finance renewable energy projects, the
organization’s head said on Sunday.
The $8 billion fund gets most of its money from development banks and
donor countries and finances more than 300 environmentally-friendly
energy projects in some 72 countries.
“U.S, European and Japanese investors are interested in green bond
offerings,” Mafalda Duarte said in a phone interview, without giving
further details on where the CIF plans to issue the green bond.
Green bonds are fixed income securities that raise capital for projects with
environmental benefits.
The CIF will use the proceeds to fund projects that could range from
promoting the transition to renewable energy and improving resilience to
climate change to stabilizing power grids amid the growing use of
intermittent sources of power.
The CIF also sees opportunities in electrified transport, Mafalda said.
She also stressed the need to cut the cost of concentrated solar power
technology, which uses mirrors or lenses to concentrate a large area of
sunlight, and to promote the integration of regional energy markets.
Such issues will be examined at a conference on Jan. 28-29 marking the
CIF’s tenth anniversary.
The conference will be held in the south-eastern Moroccan city of
Ouarzazate, where the CIF contributed $535 million to building a 580
megawatt (MW) solar power plant, the world’s largest.
<< Back to news headlines >>
Rusal shares soar, aluminum falls as U.S. lifts sanctions Monday 28th January, 2019 – Reuters
U.S. President Donald Trump’s administration on Sunday lifted sanctions on
the core empire of Russian tycoon Oleg Deripaska, including aluminum
giant Rusal and its parent En+, despite a Democrat-led push to maintain
them.
The move, which sent the Russian stock index to an all-time high, has
watered down the toughest penalties imposed since Moscow’s 2014
annexation of Crimea, following a lobbying campaign in the United States
that lasted almost 10 months.
Hong-Kong listed shares in Rusal, the world’s largest aluminum producer
outside China, hit their highest since April on Monday, rising 9 percent.
Aluminum prices on the London Metal Exchange (LME) dropped as much
as 1.4 percent after the open. The sanctions had sent London aluminum
to a seven-year high when they were announced in April last year amid
fears of a supply squeeze.
On Monday, the LME said it had lifted its suspension on storing Rusal-
produced metal in LME-approved warehouses with immediate effect.
“Members may freely enter into contracts with Rusal and its affiliates,” the
LME said in a statement.
DISPUTED DECISION
The decision to lift the sanctions, imposed by the U.S. Treasury in response
to what it called Russia’s “malign activities”, defied a Democratic-led
push in the U.S. Congress to maintain the restrictions.
Earlier this month, Democrats were joined by 11 of Trump’s fellow
Republicans in the U.S. Senate in an effort to keep the sanctions on Rusal,
En+ Group and power firm JSC EuroSibEnergo.
Advocates for keeping the sanctions had argued that Deripaska, an ally
of Russian President Vladimir Putin, retained too much control over the
companies.
Some lawmakers, from both parties, also said it was inappropriate to ease
the sanctions while Special Counsel Robert Mueller investigates whether
Trump’s 2016 presidential campaign colluded with Moscow, something
the U.S. president denies.
But in its statement on Sunday, the U.S. Treasury Department said the three
companies had reduced Deripaska’s direct and indirect shareholding
stake and severed his control.
That action, it said, ensured that most directors on the En+ and Rusal
boards would be independent, including Americans and Europeans who
had no business, professional or family ties to Deripaska or any other
person designated for sanctions.
It added that the companies had agreed to “unprecedented
transparency for the Treasury into their operations” including extensive
auditing, certification and reporting requirements.
Deripaska himself remains subject to U.S. sanctions.
CHANGES IN RUSAL, EN+
After the Treasury announcement, Rusal said its chairman, Jean-Pierre
Thomas, had resigned as part of the deal to lift the U.S. sanctions.
Its parent company, En+ Group, also announced the resignation of
several of its board members and the appointment of new directors, a
move intended to satisfy U.S. Treasury demands that the boards of both
Rusal and En+ Group be made up of independent directors.
“The new board of directors will take additional actions ... to demonstrate
the board’s absolute commitment to transparency, accountability and
good corporate governance,” En+’s board chairman Greg Barker said in
a statement.
These will include the establishment of a separate board committee for
compliance and the retention of an independent expert counsel to
advise the board, Barker said.
In addition, En+ announced that Swiss company Glencore would swap
shares in Rusal for a direct ownership interest in En+.
Trump administration officials, and many Republicans who had supported
lifting the sanctions, had said they were worried about the effect on the
global aluminum industry. Rusal is the world’s largest aluminum producer
after China’s Hongqiao.
They also said Deripaska’s decision to lower his stakes in the companies so
that he no longer controlled them showed that the sanctions had worked.
Moscow has denied seeking to influence the U.S. election. Deripaska had
ties with Paul Manafort, Trump’s former campaign manager. Manafort
pleaded guilty in September 2018 to attempted witness tampering and
conspiring against the United States.
<< Back to news headlines >>
UN calls for dialogue to ease tensions in Venezuela; Security Council
divided over path to end crisis Sunday 27th January, 2019 – Caribbean News Now
The top UN political official told the Security Council on Saturday that
dialogue and cooperation were vital to ending the crisis in Venezuela, but
during a contentious debate, Council members disagreed over the
appropriate response to mass protests in the South American country and
competing claims to the presidency.
“We must try to help bring about a political solution that will allow the
country’s citizens to enjoy peace, prosperity and all their human rights,”
Rosemary DiCarlo, the UN Under Secretary-General of Political and
Peacebuilding Affairs, urged the Security Council as she briefed an urgent
meeting of the 15-member body on Saturday morning.
The meeting was requested late last week by United States Secretary of
State Mike Pompeo in the wake of days of political unrest in Venezuela,
marked by popular protests that erupted on Wednesday after the leader
of the opposition legislature, Juan Guaidó, declared himself interim
president and called for fresh elections, a direct challenge to President
Nicolás Maduro, who had been sworn in to a second term in office just
two weeks earlier.
In a statement issued by his spokesperson on Wednesday, UN Secretary-
General António Guterres urged parties to “lower tensions” in Venezuela
and called for all relevant actors to commit to inclusive and credible
political dialogue. Concerned by reports of casualties during
demonstrations and unrest in and around the capital, Caracas, the UN
chief also called for a transparent and independent investigation of those
incidents.
On Saturday, DiCarlo described the situation in Venezuela as “dire”, and
as having both an economic and political dimension.
“The population is affected in a systemic way, nearly all 30 million
Venezuelans are affected by hyperinflation and a collapse of real
salaries; shortages of food, medicine and basic supplies; deterioration of
health and education services; deterioration of basic infrastructure such
as water, electricity, transport and urban services,” she told the Council.
Years of political strife boil over into street protests
DiCarlo went on to lay out the political landscape in the country since the
parliamentary elections of December 2015, when the opposition won a
large majority of seats in the National Assembly. Subsequently, the
Supreme Court ruled that the Assembly was “in contempt” and that all its
actions were “null and void”.
In 2017, a National Constituent Assembly was established through
elections in which the opposition parties did not participate. The National
Constituent Assembly took over key functions of the legislative branch
and undertook a process of constitutional reform that remains
inconclusive and is not recognized by the opposition parties.
Attempts to bring about political dialogue started as early as May 2016,
through an initiative facilitated by three former presidents from the
Dominican Republic, Panama and Spain, under the auspices of the Union
of South American Nations (UNASUR).
“Despite some initial progress, no concrete agreements were reached
through this initiative, which was suspended by the beginning of 2017,”
she said, adding that attempts to resume and continue dialogue faltered
in February 2018 over a disagreement was the electoral calendar and
guarantees to ensure free, transparent and credible elections.
Subsequently, the government went ahead with presidential elections in
May 2018. President Nicolás Maduro was declared the winner over two
other candidates. Most of the opposition did not participate in the
elections or recognize the results. On 10 January, Nicolás Maduro was
sworn in as president for a second six-year term.
On 23 January, large scale opposition protests culminated with Juan
Guaidó, president of the opposition-led National Assembly, announcing
that he did not recognize President Maduro or his government.
“While the protests were largely peaceful, there were incidents of
violence,” Dicarlo said, noting that according to the Office of the UN High
Commissioner for Human Rights, (OHCHR), credible local sources have
reported that at least 20 people have died in the unrest. Many more have
reportedly been reportedly injured and detained in violent incidents.
Call for a political solution
Recalling that the UN secretary-general had offered his good offices to
help resolve the crisis, DiCarlo stressed that the main concern is the well-
being of the Venezuelan people and their ability to enjoy their full rights.
“The UN has been providing assistance, particularly in the areas of health
and nutrition. And the Secretary-General had asked the International
Organization for Migration (IOM) and the UN High Commissioner for
Refugees (UNHCR) to establish a mechanism to support Venezuelans
leaving the country.”
“There are divergent visions of what the future should hold for Venezuela.
But we must all be guided, however, by the pursuit of the well-being of the
Venezuelan people, and work together so that their needs are fully met,”
she said.
A divided Security Council
DiCarlo’s call for cooperation and dialogue was echoed by many of the
Council’s 15 members during the contentious debate that followed her
briefing, even as speakers for the United States and Russia sparred over
the path to end the crisis.
The US State Department on Wednesday ordered the departure from
Venezuela of some non-emergency employees, following a decision by
the Trump administration, and several other nations, to recognize Mr
Guaidó as Venezuela’s rightful president.
President Maduro responded by cutting diplomatic ties with the US.
On Saturday, US Secretary of State Mike Pompeo called on the UN to
recognize Guaidó as Venezuela’s interim president, and declared: “Now
it is time for every other nation to pick a side. No more delays, no more
games. Either you stand with the forces of freedom, or you’re in league
with Maduro and his mayhem.”
But Russia’s UN Ambassador, Vassily Nebenzia, rejected that view, saying
the US was imposing its own “approaches and recipes” to resolve the
problems on the ground in Venezuela. “This meeting is yet another
attempt by the United States to affect regime change and [the Russian
Federation] regrets that the UN Security Council has been drawn into such
an unethical ploy.”
The two diplomats had faced off ahead of the meeting when the Council
held a procedural vote on whether the session would even go forward, as
‘the situation in Venezuela’ is not an official item on the Council’s
agenda.
But by a vote of nine in favour (Belgium, Dominican Republic, France,
Germany, Kuwait, Peru, Poland, United Kingdom, United States) to four
against (China, Equatorial Guinea, Russian Federation, South Africa), with
two abstentions (Côte d’Ivoire, Indonesia), adopted the agenda item.
During the debate, French Ambassador Anne Gueguen said it was
“entirely legitimate” that the Council considers the topic, as the crisis in
Venezuela was spilling into neighbouring countries. France called for a
political and negotiated solution to the crisis. “Mr Maduro must
understand that this is his last opportunity and he must take it,” she
warned.
She said that if elections are not organized and held in eight days, France
was ready, along with the European Union, to recognize Guaidó as the
interim president. She urged authorities to refrain from the use of force
against democratically elected officials, members of civil society and
peaceful protestors.
Jorge Arreaza, Venezuela’s minister for foreign affairs, rejected what he
saw as US attempts to interfere in his country’s affairs, as well as Guaidó’s
presidential self-proclamation, which he deemed illegal.
He said the Trump administration was trying to build a physical wall on its
border with Mexico, while also erecting an “ideological wall” and
resurrecting Cold War strategies aimed at bringing misery to wider Latin
America. Nonetheless, Caracas, he declared, would find its own way
forward, without interference. “No power… can dictate to my country its
destiny or its future.”
<< Back to news headlines >>
Dominican Republic to get nearly 2,000 hotel rooms for US$200M Saturday 26th January, 2019 – Dominican Today
The groups Velutini and IEMCA on Fri. announced a joint tourism
development project in Playa Dorada, Puerto Plata, of 1,012 rooms on the
north coast to be built at a cost of US$100 million.
In a meeting with Tourism minister Francisco Javier García in Madrid’s
Tourism Fair (Fitur), investors said the project Green One Playa Dorada will
create direct and indirect jobs for Puerto Plata, strengthening tourism’s
growth and the area’s economy.
In that same venue that concludes tomorrow Sunday, Spanish-Dominican
mogul Juan Jose (Pepe) Hidalgo, who owns the multinational Globalia,
announced several tourism projects in the Dominican Republic at a cost
of around US$100 million. He said he already has the land to build 800
rooms in Bayahíbe and then build a highrise in Boca Chica.
<< Back to news headlines >>
Fuels rise a third straight week, except natural gas Friday 25th January, 2019 – Dominican Today
The Industry and Commerce Ministry on Friday posted the fuel prices for
the week from January 26 to February 1, when premium gasoline will rise
RD$2.50 to RD$214.40 per gallon, and regular gasoline will cost RD$197.40,
or RD$2.10 more.
Regular diesel will cost RD$172.40, or RD$2.80 more and premium diesel
will cost RD$184.10 will, an increase of RD$3.20.
Avtur will cost RD$135.50 per gallon, up RD$2.00; kerosene will cost
RD$162.00, a RD$2.20 increase, and fuel oil will cost RD$112.95, an
increase of RD$2.20.
Propane gas (LPG) will cost RD$105.50 per gallon, or RD$0.70 more and
natural gas remains at RD$28.97 per cubic meter.
The Central Bank’s posted average exchange rate of RD$50.44 per dollar
was used to calculate all fuel prices.
<< Back to news headlines >>
CLICO case plagued by late payment woes Sunday 27th January, 2019 – Trinidad Express Newspapers
LATE receipt of State funds is playing havoc with the administration of
justice and, most dramatically, with the landmark case arising out of the
collapse of insurance giant CLICO, which was rescued with a taxpayer-
funded bailout of over $20 billion.
When the matter was passed to him by then-Central Bank governor Ewart
Williams in 2010, Director of Public Prosecutions (DPP) Roger Gaspard SC
said he could never have expected that so many years later, his office
would still be putting it together.
By his calculation, late payments have set back the CLICO investigation
by 'at least a year and a half' while increasing its cost to taxpayers which,
according to figures released in Parliament by Attorney General Faris Al-
Rawi last month, currently stands at about $180 million.
Asked when he expected the investigation to be completed, Al-Rawi had
said the time frame 'rests exclusively with the Office of the DPP'.
Not exactly so, according to Gaspard.
Big league of white-collar cases
In an interview with the Sunday Express last Friday, Gaspard said: 'The
nature of this investigation involves certain evidentiary platforms with a
reliance on IT (information technology). Having to stop and start back
tends to increase cost and results in a loss of time.'
This does not include the cost of flying foreign experts in international
fraud in and out of the country whenever their work is aborted due to
non-payment.
He acknowledges with its mammoth global footprint and intricate
financial dealings, the CLICO case has pitchforked Trinidad and Tobago
into the big league of white-collar criminal cases, well beyond the human
and physical resources of his office and those of the Trinidad and Tobago
Police Service.
Just the paperwork alone has strained both storage and scanning
capacity.
'No DPP in this hemisphere would have had a case of this magnitude,' he
said, explaining his resort to the services of British lawyer Edward Jenkins
QC, well-known for cases involving business crime and fraud.
The launch of a commission of enquiry in 2012 in the early stages of the
investigation, and even before critical files had been passed by the
Central Bank to the DPP, complicated matters and put the DPP on the
wrong side of a public thirsty for justice when he tried to stop the airing of
potential evidence before the commission.
Seven years later, with a cynical public even less inclined to trust the
system, Gaspard offers the assurance that the investigation is 'closer to the
end than to the beginning', with the major costs behind it.
<< Back to news headlines >>
Lake Asphalt moves on without bitumen lifeline Sunday 27th January, 2019 – Trinidad Express Newspapers
WITH 80 PER CENT of its revenue gone with the closure of Petrotrin, state-
owned Lake Asphalt Trinidad and Tobago Ltd (LATT) has been stripped of
its security blanket of a guaranteed supply of bitumen from the refinery
and must now make some life-altering decisions if it is to survive and thrive.
For now, one of the more extreme options is off the table.
Earmarked for 49 per cent divestment in the 2019 State Enterprise
Investment Programme, the Sunday Express understands that the decision
has been put 'on hold', giving the management and board a chance to
stabilise and turn around the fortunes of LATT.
The company's first order of business was to secure a supply of bitumen for
its customers at home. Last week, chairman Christopher John-Williams
confirmed that its first bitumen shipment of 100,000 imperial gallons
imported from Barbados had arrived. Another was on the way. In the
process, the additional costs incurred for shipping, storage and transport
has led Lake Asphalt to increase its prices by 30 to 40 per cent.
With the Petrotrin refinery under continued maintenance while its
successor board reviews purchase and lease offers, including from the
Oilfields Workers Trade Union, there is a good chance that prices could
ease by mid-year with a resumption of refinery operations, officials said.
Lake Asphalt's main strategies for survival and growth, however, lie in
product innovation and the opening of new markets through dealerships
beyond its current network of China, Germany, Saudi Arabia, Bahrain,
Philippines and Jamaica.
The company is particularly excited about the potential of inventions by
chemist, Dolly Nicholas, a legend in the local scientific community, who
has several patents to her name and now has a pending patent for the
manufacture of Trinidad Lake Asphalt Cold Milled. Nicholas' method
could revolutionise the packaging and transportation of LATT's asphalt
which, John-Williams noted, has undergone no innovation for over 100
years, ever since the British started packaging raw natural asphalt in bulk
form in wooden drums.
By contrast, Nicholas' Cold-Milled TLA produces a powdered product
without additives to retain its 100 per cent TLA quality. If all goes well, TLA
Cold-Milled could go to market by the end of this year. A lot is resting on
the success and marketing of this product, not the least of which is the
survival and expansion of LATT on the basis its own resources. Companies
from China have expressed the most interest in different forms of business
relationships with LATT.
Airport paved with concrete instead
However, not all has worked out. Following a state visit to China last year,
Prime Minister Dr Keith Rowley had high hopes of a market for Trinidad
asphalt in the US$13.8 billion Beijing Daxing International Airport, which is
scheduled to open on September 30th as the world's largest airport. That
did not materialise. The airport is being paved with concrete instead.
A three-year asphalt supply contract signed between LATT and China
Railway in 2011 ended without delivering anything close to the promised
US$50 million in revenue. This, despite a take-or-pay clause which, John-
Williams confirmed, was never enforced. In another case, an MOU signed
with Beijing Oriental Yuhong Waterproofing Technology Company Ltd for
the establishment of a manufacturing plant at La Brea has not taken off.
That contract is in dispute.
On the immediate horizon, however, is an order from Beijing Construction
and Engineering Group which has the contract to build the $702 million
Phoenix Park Industrial Estate which is being financed through
concessional loans from the Government of China.
And then there are the back-to-back local and national elections, due
this year and next year, when the demand for asphalt for road-paving at
home can rise to record levels.
Currently operating on the cusp of possibility but not yet opportunity,
John-Williams and his board are focusing on nuts and bolts. He said the
company is in the process of completing a major auditing exercise
involving ten years of unaudited accounts. They hope to have its
financials current by the end of this year.
If there is a silver lining in the abrupt rupture of Lake Asphalt's cosy
relationship with Petrotrin, described by John-Williams as one in which LATT
was a 'ward' of Petrotrin, it would be the challenge to find its own feet in
exploring the fullest potential of the extraordinary La Brea Pitch Lake, the
largest natural deposit of asphalt in the world. But for that, it would have
to be willing to go beyond mere mining.
<< Back to news headlines >>
SFC leads advancers Sunday 27th January, 2019 – Trinidad Express Newspapers
ACTIVITY on the first-tier market decreased by 54.02 per cent on a total of
466,334 shares crossing the floor, compared to 1,014,182 shares traded in
the previous week. The value of shares traded was down by 51.18 per
cent to $12,673,938.52 from the previous week's value of $ 25,959,717.59.
The volume leader last week was GraceKennedy Ltd (GKC) capturing
15.87 per cent of the market activity or 73,994 shares traded, followed by
ANSA McAL Ltd (AMCL) with 15.32 per cent or 71,461 shares traded. In
third place was T& TNGL (NGL), with 13.68 per cent or 63,799 shares
traded.
The indices ended the week in mixed territory. The Composite Index
decreased by 0.02 per cent or 0.27 points to close at 1,305.17. The All
Trinidad and Tobago Index rose by 0.06 per cent or 1.09 points to end at
1,706.08. The Cross Listed Index closed at 122.19, down by 0.19 per cent or
0.23 points and the Small and Medium Enterprise Index ended at $ 99.50.
Last week there were nine stocks advancing and six stocks declining,
while two stocks are at their 52-week high and three stocks at their 52-
week low.
Major advance
Sagicor Financial Corporation (SFC) was the major advance, up 3.15 per
cent or $0.27 to close the week at $8.83. In second place was ANSA
Merchant Bank Ltd (AMBL) with an increase of 1.32 per cent or $0.50 to
close at $38.50, followed by One Caribbean Media Ltd (OCM) up 0.97 per
cent or $0.10 to close at $10.45.
The major decline was Guardian Holdings Ltd (GHL) down 2.37 per cent or
$0.45 to end at $18.50, followed by National Flour Mills Ltd (NFM) down by
1.21 per cent or $0.02 to close at $1.63. In third place was JMMB Group Ltd
(JMMBGL) with a decrease of 1.12 per cent or $0.02 to end at $1.77.
There was no activity on the Second Tier Market this week.
On the TTD Mutual Fund Market 91,336 CLICO Investment Fund (CIF) units
traded with a value of $1,861,569.59. CIF's unit price closed at $20.70, an
increase of 2.42 per cent or $0.49. Also, 6,230 units in Calypso Macro Index
Fund (CALYP) traded with a value of $85,517.00. CALYP's unit price ended
at $14.00, a decrease of 3.45 per cent or $0.50 from the previous week.
CinemaOne Ltd (CINE 1) on the Small and Medium Enterprise Market
closed at $9.95 with no shares traded last week.
This week MPC Caribbean Clean Energy Ltd (MPCCEL) was listed on USD
Equity Market with no shares traded and closed at US$1.
<< Back to news headlines >>
ABWREC to receive additional manpower Monday 28th January, 2019 – The Antigua Observer
Government has agreed to provide assistance in the form of more
manpower to the Antigua and Barbuda Waste Recycling Corporation
(ABWREC), as the company seeks to cope with increased volumes of
recyclable plastic bottles and aluminium cans.
A week ago the management of ABWREC announced that it would not
be collecting waste until January 28, due to an existing backlog which
had to be cleared first.
Following the disclosure, officials from the Ministry of Health and the
Environment invited the management of the recycling plant to a meeting
to discuss possible solutions.
Present at the meeting were Health Minister Molwyn Joseph; Environment
Implementation Coordinator Indira James-Henry; President of the Rotary
Club of Antigua Sundown, Jonah Ormond; Chairman of ABWREC, Mario
Bento; and Past President of Rotary Club of Antigua Sundown, Herald
Rolland.
In a post on its Facebook page the ministry said during the meeting it was
disclosed that ABWREC’s temporary closure resulted from a shortage of
labour to cope with the increased volume of recyclable plastic bottles
and aluminium cans.
The ministry committed immediately to assist ABWREC by organising an
additional eight labourers as per that specific request, and it is
anticipated that the additional support will be realized by today.
Both parties also discussed long-term strategies to deal with a more robust
and extensive recycling programme, and agreed to establish a closer
collaboration in order to meet the national demands.
ABWREC is a non-profit business and a project of the Rotary Club of
Antigua Sundown in partnership with the government through the
National Solid Waste Management Authority, the Environment Division,
and the Central Board of Health. Its mission is to assist in bulk waste
reduction and the removal of non-biodegradable materials from Antigua
& Barbuda through recycling.
<< Back to news headlines >>
CDB, EU and UK to help Dominica make public buildings more energy
efficient Friday 25th January, 2019 – Dominica News Online
The government of Dominica’s mission to make its public buildings more
energy efficient and slash its energy bill is getting financial support from
the Caribbean Development Bank (CDB), the European Union and the
United Kingdom’s Department for International Development (DFID).
CDB’s board of directors on Thursday approved a grant of US$127,000
from the bank’s sustainable energy for the Eastern Caribbean (SEEC)
programme to help the Dominican government conduct energy audits
on 15 public buildings and facilities.
The identified buildings, which include major government complexes such
as the Financial Centre, the Douglas-Charles Airport and Dominica State
College, currently consume some 4,459,402-kilowatt hours of energy
annually, costing more than EC$4 million a year.
The audits will analyse the energy performance of the buildings, and
identify and recommend cost-effective and feasible energy efficiency
measures.
Acting head of the Renewable Energy/Energy Efficiency Unit, CDB,
Joseph Williams, noted that the project could result in cost and carbon
emission savings for Dominica.
“Through this project, the government of Dominica could benefit from a
reduction in its annual expenditure on electricity of an estimated US$2
million. Implementing energy efficiency measures could result in a
decrease of about 30 percent in energy consumption and savings of
1,929 megawatt hours of electricity per year, equivalent to a reduction of
1,254 tonnes of carbon dioxide emissions, helping Dominica meet its
nationally determined contributions under the Paris Agreement.”
SEEC is a multi-donor trust fund for which CDB is the lead finance institution
and executing agency. The programme provides blended resources to
address energy security issues through renewable energy and energy
efficiency solutions, particularly in the public sector.
The project is in line with CDB’s strategic objective of supporting inclusive
growth and sustainable development within its borrowing member
countries as well as the bank’s corporate priority of strengthening and
modernising social and economic infrastructure.
<< Back to news headlines >>
Dominica to provide nearly entire population with geothermal energy,
funded partly by its citizenship programme Sunday 27th January, 2019 – Caribbean News Now
In December, Dominica’s energy minister, Ian Douglas, addressed the
government’s plans to build a geothermal plant in the third quarter of
2019. Construction will be set on the outskirts of the capital city of Roseau.
It hopes to power 23,000 homes with clean geothermal energy, which
represents approximately 90% of the entire population.
Funding for the geothermal project was partly acquired through
Dominica’s citizenship by investment (CBI) programme. Additional funds
came from the World Bank, Caribbean Development Bank and the Inter-
American Development Bank.
Though small in size, Dominica is considered the best second citizenship to
invest in, according to an independent study by the Financial Times’
publication, PWM. After they pass the due diligence checks, citizenship
hopefuls then choose to either invest in real-estate or contribute to a
government fund. The latter is called the Economic Diversification Fund
(EDF) and it sponsors public and private sectors in Dominica that need the
financial support or have economic potential.
Each eligible person to become a citizen of Dominica adds at least
US$100,000 to the EDF. If they apply jointly as a family, which is possible
under Dominica’s CBI programme, these contributions amount to
US$175,000 for a couple, US$200,000 for a family of four, and another
US$25,000 for any additional dependents. Eventually, the money goes
towards modernising the local infrastructure, schools, hospitals, and even
develop thriving industries like tourism and IT.
The UN predicts that Dominica will have the greatest GDP growth in 2019
in the Caribbean region. Considering the constant flow of foreign
investment, Dominica is prepared to set long-term goals that exceed
sustainability expectations on a global scale. After Hurricane Maria in
2017, Prime Minister Roosevelt Skerritt pledged to make Dominica the
“world’s first climate resilient nation”. He immediately launched the
Climate Resilient Execution Agency of Dominica, otherwise known as
CREAD. It aims to consolidate sustainability efforts, raise funds and provide
essential services.
The geothermal plant will have a substantially positive impact on the
island’s national advancement and the lives of its citizens. “With the
commissioning of this plant, we will be in a position to benefit from clean,
reliable, low-cost, renewable, high-quality energy supply in the future,
which will benefit all sectors of productive activity in Dominica,” Douglas
said.
In addition to exploring the benefits of renewable energy, the island’s
plastic ban has been in operation as of January 1. It was described by
National Geographic as one the world’s most comprehensive plastic
bans. This follows the island’s “Housing Revolution” initiative, which builds
new homes that can withstand most known weather events. Like the
geothermal project, the scheme is funded by the CBI programme.
<< Back to news headlines >>
Beaches Resort Turks and Caicos confirms indefinite closure in 2021 Saturday 26th January, 2019 – The Antigua Observer
Rumors had been swirling since Thursday that Beaches Resort Villages and
Spa in the Turks and Caicos was planning a long term shut down in 2021
due to a massive bill, which is in dispute, with the Turks and Caicos Islands
Government.
Minutes ago, and in response to Magnetic Media queries, Beaches
confirms that yes, it is true.
“Beaches Turks & Caicos Resort Villages & Spa will be closed from
September 3rd to October15th in 2019 and from September 7th to
October 22, 2020, and then for an indefinite period from January 2021.”
Government taxes were reportedly calculated in a way that is not sitting
well with Sandals Resorts International, which owns the Beaches family
resorts. The calculations by the Ministry of Finance and backed by the
Attorney General’s Chambers have reportedly been in dispute for years.
The lingering bill in dispute has now ballooned to some $60 million, we are
told.
Finance Ministers have asked for the debt to be treated with leniency to
no avail and once again exposes the topsy-turvy order of governance in
the Turks and Caicos Islands, which is actually led by the Civil Service and
not elected politicians.
“The upcoming closures of Beaches Turks & Caicos are the result of
several critical and long-standing issues which have impacted our
operations over the past several years. We apologize for any
inconvenience caused to our customers and look forward to welcoming
them back soon.”
Naturally, this decision by Beaches Resorts is being cited as catastrophic
for the Turks and Caicos Tourism industry, as Beaches is a key linchpin in
the success of air arrivals to Providenciales, in particular.
Beaches explained: “Guests traveling between now and January 2021
that are not impacted by these closures will receive the vacation
experience that we have become known for. All features and facilities of
the resort will be open and operating per usual. For impacted guests, we
are committed to making this as seamless as possible by allowing them to
change their travel dates to Beaches Turks & Caicos or travel on their
original travel dates to one of our other locations in Jamaica, Beaches
Negril or Beaches Ocho Rios, at no additional cost, including airfare
change fees. Guests may also choose to travel to any of our 16 Sandals
Resorts.”
Magnetic Media has reached out to Premier and Finance Minister
Sharlene Robinson on the matter.
The statement from Beaches Resort is titled: ‘BTC Pending Closure’.
<< Back to news headlines >>
Mia on a high Sunday 27th January, 2019 – Nation News
Prime Minister Mia Amor Mottley says she feels validated by Government’s
decision to support the Barbados Cricket Association’s (BCA) bid to host
international cricket matches between West Indies and England at
Kensington Oval.
Given projections that Barbados stood to gain $80 million in foreign
exchange, and following West Indies’ massive victory in the first Test that
featured outstanding performances from four local boys, Mottley also
pledged Government’s commitment to any sporting activity that would
redound to the benefit of the country.
In an interview with THE NATION after West Indies crushed England by 381
runs on Saturday on the back of sterling contributions from captain Jason
Holder and fellow Barbadians Shane Dowrich, Kemar Roach and Roston
Chase, Mottley expressed delight at the turn of events.
“I am on top of the world. This is even more special for me. One of the first
decisions I made after being sworn in as Prime Minister was to agree to
host this match and the One-Day Internationals. To have this kind of
validation with this kind of victory, it doesn’t get better than this – a Bajan
double century, a Bajan century, a ‘barriffle’ of Bajan wickets in the first
and second innings, and then to have a Bajan sub as wicketkeeper when
the chips were down,” she said.
<< Back to news headlines >>
PM Mottley to attend CARICOM-UN talks on Venezuela Sunday 27th January, 2019 – Barbados Today
Prime Minister Mia Mottley will join two Caribbean Community (CARICOM)
colleagues in New York on Monday for talks with UN Secretary General
Antonio Guterres to discuss the crisis in Venezuela.
According to a statement from the CARICOM Secretariat, issued on
Sunday evening, the regional delegation will be led by CARICOM
Chairman, Prime Minister Dr Timothy Harris of St Kitts and Nevis, and will
also include Trinidad and Tobago’s Prime Minister Dr Keith Rowley.
Grenada’s Minister of Foreign Affairs, Peter David, and CARICOM
Secretary General Irwin LaRocque will also attend the talks at UN
Headquarters.
The meeting is a follow up to the decision of CARICOM Heads of
Government at their Special Emergency Meeting on Thursday which
discussed the ongoing conflict in Venezuela.
The CARICOM Leaders agreed to request a meeting with the UN
Secretary-General which he accepted.
<< Back to news headlines >>
Gov't Takes On $2b IDB Loan To Develop High-Skilled Workforce Sunday 27th January, 2019 – Jamaica Gleaner
The government will be using a near $2 billion loan from the Inter-
American Development Bank (IDB) to finance the training of Jamaicans
for high-skilled jobs.
The contract for the loan, valued at US$15 million, was signed on Friday
and is repayable over 24 years. The interest rate was not disclosed.
The funds will be channelled through the Global Services Sector Project
(GSS), which is the vehicle being used by the government to develop a
high-skilled workforce that will enable Jamaica to take advantage of
high-value jobs in the global marketplace.
The Ministry of Finance explained that the GSS project is comprised of two
main components. The first component seeks to improve the skills
development system to provide the GSS with better skilled workers,
particularly, in higher value-added segments. The implementing entities
for this component are HEART/NTA; the Ministry of Education, Youth and
Information; and the Business Process Industry Association of Jamaica.
The finance ministry explained further that the second component, for
which JAMPRO is the executing agency, will attempt to strengthen
Jamaica’s institutional capacity to increase investment and promote
exports in the global services sector. It is expected that Jamaica’s
capacity to attract investment and increase exports in high-valued
segments will be significantly enhanced.
According to Finance Minister Nigel Clarke, “the Government of Jamaica
is particularly committed to expanding and deepening human capacity
development as we seek to increase Jamaica’s institutional capacity to
attract Foreign Direct Investment (FDI) and increase exports.”
Clarke noted that as the market for global services continues to expand,
Jamaica must leverage its strategic assets - location, people, and
language – to not only develop the Business Processing Outsourcing
Sector, but to create opportunities for additional skill levels to take
advantage of other segments of the global services sector.
“The GSS project demonstrates the growth of the Global Services Sector
(Global Services) in Jamaica, particularly in higher-value added segments
– Information Technology Outsourcing (ITO) and Knowledge Processing
Outsourcing (KPO),” he said.
<< Back to news headlines >>
Jamaican Wellness Firm Inks Distribution Deals In Mexico, Colombia Monday 28th January, 2019 – Jamaica Gleaner
Jamaican health and wellness distribution firm Zimmer & Company has
entered into distribution deals that will see its products being made
available to the market in Mexico and Colombia.
According to Chief Executive Officer T’Shura Gibbs, Zimmer Mexico will
seek to penetrate the vast Mexican customer base with a wide array of its
products, while Colombian firm Medical Extractos, a leading
manufacturer of pharmaceutical and botanical products, will handle the
distribution of the Jamaican firm’s beauty and cosmetic line into that
market.
”Zimmer has always been looking for opportunities to expand and grow
our distribution footprint, and we are particularly interested in the markets
that have us working in the Caribbean and Latin America,” Gibbs told The
Gleaner.
The Montego Bay-based company has been expanding since it began
operations last year when Gibbs decided to leave her executive position
at the Jamaica Public Service Company and start her own business.
A CHANCE TO DO MORE
Zimmer & Company has focused on the hemp-based CBD (cannabidol)
wellness aspect of the industry and now carries a line of 150 products in its
portfolio.
“Some of the markets that we target would historically survive off the
crumbs of (the cake baked by) developed countries, but what cannabis
offers these countries is the ability to bake the cake themselves,” board
Chairman Douglas Gordon told The Gleaner. “Purely from what it means
in economic terms to these countries, we believe there should be more
synergistic relationships because this is a way for us to generate wealth
and a much better socio-economic framework for our populations.”
The company is actively pursuing deals in Europe and the continent of
Africa, an accomplishment Gordon would savour.
“As Caribbean nationals, it would be a real source of pride for us to
become a dominant name in the continent of Africa,” he said. “Europe is
a huge market and would also be an awesome accomplishment.”
<< Back to news headlines >>
Govt plans to spend millions improving services at tax offices Sunday 27th January, 2019 – Jamaica Observer
Taxpayers concerned about the long wait and slow processing at the
main tax offices can expect some relief in the near future.
Minister of Finance and the Public Service Dr Nigel Clarke, says that there
will be major improvements over the next few months.
“In another few months, or maybe weeks, I will be outlining a strategic
approach to the problem,” Dr Clarke told last Wednesday's Mayberry
Investment Limited's (MIL) monthly investment forum at the Knutsford
Court Hotel, New Kingston,
“We have a sort of three-year plan to upgrade the tax offices across the
country, to make them more customer-friendly, and to take some of the
heavy activities that are repetitive and move them into other areas, so
that the ones that require more time and more customer interface have
that space,” Clarke said.
He added that there are also plans to construct drive-through facilities, at
the offices where there is enough space to accommodate it.
“We are going to be making some changes in Kingston, as well, and we
are working exactly on that, you will hear me speak about that shortly,”
he said.
The Second Supplementary Estimates, approved by the House of
Representatives recently, indicates that $47.3 million of the amount will be
spent on a new car park for the Falmouth Tax office, and $29 million as
additional requirement to complete purchase of land for the construction
of a new Collectorate in Cross Roads, Kingston.
Dr Clarke also responded to questions about the possibility of
compensation for businesses affected by the current major road works
projects; China's involvement with the restructuring on the island's physical
infrastructure and Bernard Lodge; and the Jamaica Public Service(JPS)
Company's anticipated reduced reliance on Petrojam for fuel.
He said that he acknowledged that there has been a lot of short-term
pain for small businesses affected by the current Legacy road works
programme.
“Let me acknowledge that there has been a lot of short term pain, and
we have to make trade-offs. We are not going to move forward without
trade-offs. But, there are very few things that involve 100 percent gain. To
move forward, invariably, there is a cost and the cost in this case is that it
has inconvenienced a lot of people and a lot of businesses for sure, and
where it is justified to do so, the government has been making a deal.
For example, where there is a broken main or telephone lines, they have
been repaired, and so forth, he said.
He stated, however, that with the increased budget, approved recently
for the Major Infrastructure Development Programme (MIDP) in the
supplementary estimates for the Ministry of Economic Growth and Job
Creation, the government is bringing forward the completion of several of
the major legacy projects.
“So soon and very soon that pain will go, and you will be left with long-
term gains,” he added.
In response to a question that some people don't feel there has been
enough communication from government to the businesses about the
projects, Clarke said it was a fact that some people feel that the
communication has not been direct enough in terms of people who are
directly affected by the works.
However, he said it would be considered as a lesson in how to handle
these issues in the future.
Clarke said that, in terms of the country's relationship with Chinese
investors and construction companies, going forward, Jamaica's options
will be wider than they have been prior to their involvement.
“China has been a great friend to Jamaica,” he said, noting their support
for the economy during the depression of 2008/2009.
“However, going forward, as our fiscal situation improves, our options will
open up, including in the area of financing,” he added.
Dr Clarke said that the anti-Chinese sentiments that are being expressed
are misplaced and are, probably, grounded in newspaper reports about
what is happening in other countries.
He noted that Jamaica's total loan portfolio with China was 3.9 per cent
of the country's total loan portfolio. But he explained that none of the
peculiar arrangements that exist between China and those countries are
included in their loan agreements.
“So, people have nothing to fear in that regard. But, I think we should be
fair as well, that we have had a very productive bilateral relationship with
China,” he stated.
On the issue of JPS' expected reduced fuel purchases from the Petrojam
refinery, Dr Clarke said that the substitution of LNG would reduce the
power company's monthly purchase of fuel from the refinery from the
current $20 million to $5 million.
<< Back to news headlines >>
NCB Capital Markets to waive arrange fees for small companies listing on
Junior Market Sunday 27th January, 2019 – Jamaica Observer
NCB Capital Markets is making a greater effort to get behind Small and
Medium enterprises (SMEs) and together with its Group commercial
banking arm will be placing greater emphasis on capacity building for
SMEs that have junior maket listing potential.
To kick-start this effort NCB Capital Markets will waive its arranger fees for
all junior market mandates signed with it between now and September
30, 2018.
This means that junior market IPOs arranged by NCB Capital Markets will
be done free of broker fees.
“This demonstrates the NCB Financial Group's commitment to our SMEs as
well as the further development of the equities market and its potential
impact on nation building,” said the CEO of NCB Capital Markets, Steven
Gooden.
Over the last two financial years, NCB has been involved in over US$1.7
billion of capital markets and structured products transactions across the
region.
“Last year we would have been involved in close to half of the entire
Jamaican dollar denominated private placements, in terms of value,
executed under the FSC's Exempt Distribution regime. We would have also
executed a similar percentage in value of equities traded on the Jamaica
Stock Exchange (JSE), said Gooden.
Speaking at the 14th Regional Conference on Investments & the Capital
Markets at the Pegasus on Tuesday night, Gooden said the starting point
for any business enterprise is capital or risk capital.
He noted that for a developing country, access to bank financing is
relatively good but to access it you need risk capital, a type of funding
that falls outside the mandate of a commercial bank.
“Capital in the form of equity or some form of subordinated debt is a key
ingredient for credit expansion . As such the capital markets provide that
bridge for those that are in need and those that have the risk capital to
invest. These suppliers of capital may be in the form of institutional
investors or the average person through direct investments or indirectly
through pension schemes,” Gooden added.
<< Back to news headlines >>
IMF to have fixed petroleum team at GRA Sunday 27th January 2019 – Kaieteur News
A team from the International Monetary Fund (IMF) which specializes in
petroleum taxation and audits will be housed at the Guyana Revenue
Authority (GRA) for two years. According to GRA’s Commissioner General,
Godfrey Statia, the team of analysts gets started on February 1.
He said that the funding for this exercise is made possible through the IMF
and the British.
Since its first report to the Government about two years ago, the IMF has
said that GRA should be the single revenue collection agency for the
petroleum sector. The Fund contends that this is a reasonable decision
given the key role played by the PSA and the pay-on-behalf arrangement
for corporate income tax in existing contracts (where the contractor’s
income tax obligations are settled from the government’s share of the
profit oil).
The Fund had also noted that the Petroleum Industry Taxpayer Unit
attached to the large taxpayer office in the GRA should be prioritized. It
said that this effort is supported by a peripatetic advisor from the US
Treasury office of technical assistance.
The Fund said it will be important for this unit to start verifying and
undertaking audits of cost incurred during the exploration and
development phase, which is getting underway now.
The financial organization also said it would be advantageous to establish
close working relations between the GRA and the sector regulators
(Ministry of Natural Resources, Guyana Geology and Mining Commission
and the prospective Petroleum Commission) to ensure that the limited
petroleum sector expertise in government is applied most efficiently.
(KIANA WILBURG)
<< Back to news headlines >>
UG introduces degree programmes in oil and gas Sunday 27th January 2019 – Kaieteur News
At an official launch on Friday, The University of Guyana (UG) launched
two-degree programmes which are aimed at getting Guyanese ready to
function in the oil and gas sector.
The programmes are the Associate Degree in Science (Petroleum
Engineering), which is being offered in collaboration with the University of
the West Indies (UWI); and a Master’s Degree in Science (Petroleum
Engineering), which is being done in partnership with the University of
Trinidad and Tobago (UTT).
Vice-Chancellor of UG Professor Dr. Ivelaw Lloyd Griffith said, “We found it
necessary to build partnerships to tap into the expertise of people who
are in Guyana and out of Guyana.”
“This programme is enabled to help us deal with some realities that we
aren’t able to deal with ourselves.”
According to him, the pursuit of partnerships will be more forthcoming as
the university serves to meet the needs of the country–beyond oil and gas
development.
Pro Vice-Chancellor and Principal of UWI, Professor Brian Copeland,
posited that locals ought to position themselves to foster development in
their country and contribute to the development of the Caribbean.
“These degree programmes are the first critical steps which would equip
and encourage graduates to take responsibility to use their knowledge
and expertise to ensure that there is accountability for Guyana’s natural
resource.”
In a recent forum hosted by the Energy Department, UG Registrar, Dr.
Nigel Gravesande, informed young people about the programmes and
indicated that there were already 74 persons who would have signed up
for them.
Dr. Gravesande had stated that the Associate Degree will be a two-year,
full-time programme of study in which a strong foundation in
Mathematics, Physics, and fundamentals in Petroleum technology will be
established during the first year of study.
In the first semester of the first year, he emphasized that students will be
required to complete a workshop skills training course to help them with
the practical or hands on skills that will be required for the industry.
In the second semester of the first year, emphasis will be focused on the
technical aspects of Petroleum Engineering. These include drilling,
production, reservoir characterization, and management skills.
All students will be required to complete a mandatory in-house industry
project which will incorporate the knowledge gained from all the courses
covered in the Associate Degree Programme.
Once successful, the students can choose to move on to the master’s
degree programme in Petroleum Engineering.
<< Back to news headlines >>
CEMEX opens new concrete plant Sunday 27th January 2019 – Kaieteur News
Guyana’s economy continues to attract large international companies
who make big investments indicating their confidence in the economy.
CEMEX’s TCL Guyana Incorporated (TGI) was the latest company to
demonstrate this confidence with the opening of its new concrete plant,
according to the government release.
The plant located on Lombard Street, Georgetown, which was officially
opened Thursday, aims to serve Guyana’s expanding economy
particularly in light of the potential production of oil and gas around the
corner.
Minister of Finance Winston Jordan making brief remarks during the simple
ceremony said that he welcomes all investments that will sever Guyanese
and boost the country’s economy. Minister Jordan noted that cement is
an important part of the building infrastructure not only in Guyana but
around the world.
“Given the oil and gas that is meant to flow if not late this year then
certainly early next year then Guyana indeed will be poised for a take-off,
a long sustained, high-end growth and cement will definitely play a great
part in that and of course when we are speaking about climate change
and resilient infrastructure, when we talking about a country that is six feet
below sea level, cement as a bulwark against the ocean and the rivers
will be very important,” he stated.
Also attending was Mexico’s Ambassador to Guyana, Ivan Roberto Sierra
Medel, who observed the launch of the concrete plant is the starting
point of a transformational process in Guyana.
“Today, the company that specialises in building a better future, CEMEX, is
confirming a long-term bet on the bright future of Guyana,” he said.
The Ambassador also highlighted that with the growing relationship
between Guyana and Mexico, other companies have already signalled
their interest to invest in the economy.
Business Manager of TGI Roger Ramdwar, General Manager of Arawak
Cement Company Limited Yoga Castro Izaguirre and TCL Guyana
Incorporated, and President of Guyana Manufacturing and Services,
Shyam Nokta, all applauded the opening of the company.
The company’s self-compacted concrete is expected to eliminate the
need for vibrating equipment at job sites. It is also said to reduce the time
for each pour as concrete freely flows into the moulds and create a high-
quality finish, reducing both rendering time and expenditure.
<< Back to news headlines >>
Honouring FATCA Obligations… GRA hires int’l firm to gather info on
accounts held by US taxpayers Saturday 26th January 2019 – Kaieteur News
The Guyana Revenue Authority (GRA) has hired international technology
firm, Vizor Solution, to gather information on accounts held by US
taxpayers at financial institutions (FIs). The company will also facilitate the
production of an extract for transmission to the US Internal Revenue
Service (IRS).
This move is in line with Guyana’s obligations under the Foreign Account
Tax Compliance Act (FATCA).
The Foreign Account Tax Compliance Act requires Tax Authorities in
countries with a signed Model 1 Intergovernmental Agreement (IGA) with
the US, to report information to the IRS. Guyana signed its IGA with the USA
on October 17, 2016.
Signed at the Ministry of Finance in Georgetown, the US-Guyana IGA
allows for the exchange of banking and tax information for citizens
residing in both countries as foreign nationals and required the
Government of Guyana to amend Section 63 of the Financial Institutions
Act, to designate GRA as the Competent Authority, on behalf of the
Government of Guyana.
FIs are thus required to undertake certain due diligence and verification
procedures to identify accounts held by US persons and report
information on these accounts to the GRA which will, in turn, report the
information to the IRS.
According to Vizor Software, the contract awarded by GRA is for its AEOI
(Automatic Exchange of Information) Solution. The feature highlights of
the Vizor AEOI solution include Financial Institution self-registration and
account creation; Extensive validation of FATCA data; Configuration
options for running in “fully automated” mode; and Management reports
for monitoring, tracking and reviewing information within the system by
the competent authority and automated exchange of information with
the IRS.
Vizor Software is the global leader in cross-border information exchange
solutions for Tax Authorities with over 15 jurisdictions having already
implemented its solution to facilitate FATCA exchanges. The company
notes that its proven software platform can be implemented in as little as
five weeks and is continuously upgraded to ensure compliance with any
future changes to the standards.
It has said that the extensive validation of all submitted data greatly
reduces the administrative burden and risk for the Competent Authority.
FIGHT AGAINST OFFSHORE TAX EVASION
Guyana and the USA had signed the IGA as a commitment to fighting
offshore tax evasion.
FATCA, which was enacted in 2010 by the US Congress, is designed to
prevent tax fraud and evasion by US taxpayers using offshore banking
facilities. It creates a new regime of automatic tax information sharing
between financial institutions.
At the 2016 signing, Finance Minister, Winston Jordan, had said Guyana
chose to be involved in this important venture not only because it will help
to reduce tax evasion in the United States, but also, in Guyana, through
the exchange of information between the two countries.
To fulfill the potential of FATCA to be a potent weapon in the fight against
tax evasion and avoidance, the Finance Minister had said that Guyana
would be required to undertake a number of measures to improve and
strengthen its legislative and institutional arrangements.
“Thus, for example, Guyana amended Section 63 of the Financial
Institutions ACT, Chap 85:03, Laws of Guyana, to designate the Guyana
Revenue Authority as the competent Authority, on behalf of the
Government of Guyana.
“This will allow Financial Institutions to provide the GRA with customer
information on reportable accounts,” the economist said.
The Finance Minister said that the sharing of information across countries is
important for the enforcement of domestic tax laws.
“By working together to increase transparency, both Guyana and the US
will be able to detect and deter abuse of the tax system in both countries.
This will enable better accountability within the global financial sector. The
FATCA Agreement represents another step in our countries’ cooperation
with each other, in order to combat money laundering and tax evasion
and avoidance.”
Jordan continued, “Improving financial regulation and cooperation with
international regulators has become an urgent priority in recent years, as
the loss of correspondent banking relationships, due to de-risking, has put
pressure on financial institutions in Guyana and the rest of the Caribbean
region.”
He added, “Healthy correspondent banking relationships are essential
because they facilitate trade, foster economic growth; create legitimate
avenues for growing remittances and providing access to financial
services.”
The Finance Minister had said that the adverse effects of de-risking on
international trade, financial stability and growth, and money transfers
(including remittances) have already been felt in many countries.
He said that if de-risking continues unchecked, all Caribbean states can
expect to experience some level of macroeconomic instability, financial
exclusion and, ultimately, economic collapse.
<< Back to news headlines >>
FUEL PRICES INCREASE MIDNIGHT, JANUARY 25 Saturday 26th January 2019 – Amandala
BELMOPAN, Thurs. Jan. 24, 2019– The Ministry of Finance announces that
at midnight on January 25th, the pump price for regular gasoline will
increase by 20 cents from $9.31 to $9.51 per gallon.
This increase in the price is principally due to tightening global demand
reflecting extreme winter conditions in North America and Europe,
together with uncertainties in geopolitical conditions in several major oil-
producing countries in the Middle East and in Latin America.
<< Back to news headlines >>
Jobs in Haiti down by -3.1% Sunday 27th January 2019 – Haiti Libre
According to the Haitian Institute of Statistics and Informatics (IHSI), the
Employment Index (EI) in the fourth quarter of fiscal year 2017-2018 shows
a negative annual variation of -3.1% after having increased by +2.5 % in
the previous quarter.
No sector is spared, the public sector is the most affected with an annual
decline of 3.9%. EI level of the NGO and International Organizations (IO)
sector of 1.1% and the private sector 0.7%
The decline of the EI in the public sector for the fourth quarter of fiscal
year 2018 is caused directly by the drop recorded in its component "Public
Administration" which records a between July - September 2017 and July -
September 2018, a decrease of 4.3%.
For its part, the EI of the NGO sector and the IOs, after three consecutive
quarters of slowdown, finally regressed. The year-on-year NGO EI
decreased by 0.8% while the EI of the IOs decreased by 33.3% year-on-
year.
For a second consecutive quarter, the secondary sector suffered a fall,
followed this time by the tertiary sector, which is also experiencing a
decline. Secondary sector EI drops 4.3% year-over-year. The Tertiary
Employment Index shows a negative annual variation of 3.0%.
All components of the secondary sector posted downward trends. The
Employment Index in the Buildings and Public Works sector, which fell by
7.7% and the Industry Index by 5.0%, contributed significantly to the 4.3%
drop in the sector. The negative annual variation of 0.4% in the Electricity
and Water business strengthens the downward trend.
As for the tertiary sector, the fall of its EI of 3.0% is caused by the observed
decline of the Non-Merchant Services and Financial Institutions branches.
The Employment Index level of the Non-Merchant Services division
decreased by 4.1%. The Financial Institutions branch fell by 0.6% for the
same period. However, the negative annual variation of the sector is
mitigated by the good performance of the branches that maintain
positive year-on-year growth such as: Transport and Communications
(6.7%), Other Merchant Services (4.6%) and Commerce, Restaurants and
Hotels (3.1%) %).
<< Back to news headlines >>