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▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB

▪ Endeavour Holdings Limited’s TTD 400 million bond issue rating reaffirmed at CariA+

▪ Government of Barbados’ rating upgraded to CariBB-

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

▪ JMMB Group Limited rating assigned at jmA

▪ Government of St. Lucia’s proposed bonds’ rating assigned at CariBBB

▪ Telecommunication Services of Trinidad and Tobago rating downgraded to CariA-

▪ Trinidad and Tobago Mortgage Finance Company Limited rating reaffirmed at CariAA-

▪ The Government of Anguilla rating reaffirmed at CariBBB+

▪ NCB Financial Group rating upgraded to CariA+

▪ NCB Jamaica Limited rating upgraded to CariA-

▪ NGC’s rating reaffirmed at CariAA+ ▪ NCB Capital Markets Limited’s rating upgraded to CariBBB+

▪ NCB (Cayman) Limited’s rating reaffirmed at CariA

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REGIONAL

Trinidad and Tobago

Touchstone finds more oil in Ortoire

CANADIAN energy company, Touchstone Exploration, yesterday

announced that the company has made what it described as 'a

significant crude oil discovery with the Cascadura-1ST1 well', which is

onshore in the Ortoire exploration block.

New CEO for ANSA McAL

NOT YET 40, Anthony Sabga III was yesterday appointed as the ANSA

McAL Group CEO, effective January 1, 2020, according to an

announcement on the conglomerate's website.

CLICO Investment Fund gains $1

OVERALL market activity resulted from trading in 18 securities of which six

advanced, three declined and nine traded firm.

Barbados

Barbados passes another IMF test, gets access to more funds

Barbados has passed its latest International Monetary Fund (IMF) test with

flying colours, in the process impressing the directors of the fund, and

opening up for itself access to almost $100 million from the Washington-

based institution.

ANSA takes over Trident

After months of negotiations, ANSA McAL (Barbados Limited) has

purchased the shares of Trident Insurance Company Limited.

New panel in place for credit union mediation

Members of co-operative societies now have a new arbitration body to

address their claims and disputes.

Jamaica

Aerodromes out west getting upgrades

Transport Minister Robert Montague says the Airports Authority of Jamaica

(AAJ) has undertaken upgrading work at two aerodromes in St Elizabeth

and Westmoreland as part of an initiative to improve and expand

Jamaica’s aviation industry.

Fly Jamaica files for bankruptcy protection

Troubled airline Fly Jamaica is seeking protection from creditors as it tries

to restructure and stay in business or explore other options, such as a sale.

Utility companies pay out over $34 million for service breaches

Utility companies paid out over $34 million for service breaches between

July and September.

JSE Market Summary

Overall market activity resulted from trading in 93 stocks of which 29

advanced, 28 declined and 36 traded firm.

Trelawny residents benefiting from major JPS work

Residents of Trelawny are now benefiting from major infrastructural work

done on the Jamaica Public Service (JPS) network in the parish, the

company has said.

Anguilla

PREMIER BANKS BOASTS OF WHOPPING BUDGET SURPLUS OF $30.73 MILLION

For the first time in the history of Anguilla, the Government of the island has

been able to achieve a budget surplus that has enabled both the paying

off of substantial local debt, and provided an opportunity to finance a

number of projects and other needs in the public sector.

EU Disburses Third Education Tranche of EC$12,66M to Anguilla

The Government of Anguilla is a step closer in the realisation of the

objectives of its Education Development Plan, following the release of the

third grant assistance tranche of EC$12.66 million (€4.25M) under the 11th

European Development Fund (EDF) Education and Training Sector Policy

Support Programme.

Antigua and Barbuda

Caribbean Helicopters workers say they are ‘beyond frustrated’

Employees contracted by Caribbean Helicopters Limited (CHL) have said

they are tired of the non-action from their employers. The diverse group of

employees, some who have been employed to CHL for more than 10

years, explained that it is now nine months since they have been last paid.

Global Ports projects a windfall of US $1.9 million for the government

Global Ports Holding (GPH) Antigua has projected 2020 tourist arrivals to

be at 788,000.

British Virgin Islands

VI & Airbnb ink Hotel Accommodation Tax agreement

The Virgin Islands (VI) and booking service Airbnb have official inked

agreements for the voluntary collection of the Hotel Accommodation Tax

on transient occupancy.

Guyana

Govt. reviewing Exxon’s third field development plan

A field development plan is a layout of all of the processes and activities

intended to develop an oil field, and the manner in which those will be

executed. Before it begins to develop a field, an oil company is required

to hand over its plan to the Department of Energy for approval before it

gets to work.

Energy Dept. putting finishing touches on final draft local content policy

The Department of Energy has received the final local content policy

draft from the Consultant, Dr. Michael Warner, according to Energy

Department Head, Dr. Mark Bynoe.

The Bahamas

‘We Need Bigger Profit On Eggs’

Food retailers are seeking "at least" a three-fold increase in the mark-up

permitted on eggs by price control, with their Association chief renewing

calls for such regulations to be abolished.

The Bahamas continued

$5m Waste Of Axed Welfare Reform Plan

Poverty-stricken families and the Bahamian taxpayer have received

almost no value from a near-$5.4m investment in welfare reform that was

halted by the Minnis administration.

Super Value Chief '100%' Confident Resort Deal Close

Super Value's owner says he is "100 percent" confident that the sale of his

Bimini Sands resort will close as early as this week, adding: "I'm doing the

island a favour by exiting."

Tourism To 'Come Out Swinging' During 2020

The Bahamas will "come out swinging next year" with new tourism

promotions and initiatives as it continues to rebound from Hurricane

Dorian's devastation.

Airport Bracing For 230k Passengers

Lynden Pindling International Airport (LPIA) is aiming to make it feel like

Christmas for the 230,000 passengers set to move through its three

terminals over the next two-and-a-half weeks.

Bahamas Enjoying 'Major' Airlift Growth

The Bahamas has seen “significant airlift growth” to Nassau and two other

islands as its pushes its “open for business” message in the aftermath of

Hurricane Dorian.

INTERNATIONAL

United Kingdom

UK uses threat of Brexit cliff-edge to demand EU trade deal by end of 2020

British Prime Minister Boris Johnson will use the prospect of a Brexit cliff-

edge at the end of 2020 to demand the European Union gives him a

comprehensive free trade deal in less than 11 months.

UK jobs growth resumes, unemployment rate near 45-year low

The number of people in work in Britain unexpectedly rose in the three

months before the missed Oct. 31 deadline for Brexit, according to data

which suggests the labor market was retaining some of its strength.

United Kingdom continued

UK factory output slides in three months to December at fastest rate since

2009

British factory output fell at the fastest pace in more than 10 years during

the three months leading up to Prime Minister Boris Johnson’s election

victory, underscoring the challenge he faces to boost the economy.

Europe

Euro zone trade surplus jumps more than expected in October

The euro zone’s seasonally unadjusted trade surplus rose more than

expected in October compared with a year earlier thanks to a sharp fall

in energy imports, data showed on Tuesday.

European shares fall from records on Unilever warning, hard Brexit

European shares pulled back after a record run on Tuesday as a sales

warning from Unilever prompted investors to sell big consumer names,

while concern that Britain will take a hard line on the Brexit transition

dragged down UK domestic stocks.

Japan

Japan industry ministry gets $423 million extra budget to strengthen

resource policy

Japan’s industry ministry has secured 45.9 billion yen ($423 million) in the

country’s supplementary budget for the current financial year as it looks

to strengthen its resource policy and secure supplies of key commodities.

Japan economy minister: Hope exports, output will improve after U.S.-

China trade deal

Japanese Economy Minister Yasutoshi Nishimura said on Tuesday he

hoped the nation’s exports and factory output would improve following

an initial trade agreement between the United States and China.

Toyota expects 2020 global car sales to stay at record-high levels

Toyota Motor Corp (7203.T) expects its global vehicle sales to stay at

record highs in 2020, even as demand shows signs of slowing in China and

the United States, the world’s top car markets.

Global

Pound and stocks flop as Brexit fears resurface

European stocks skidded off record highs and sterling dropped more than

1% on Thursday, as reports that Britain’s prime minister was ready to play

rough in Brexit talks brought December’s cross-market rally to a halt.

Oil edges further above $65 on trade hopes, supply cuts

Oil edged further above $65 a barrel on Tuesday, supported by hopes

that the U.S.-China trade deal will bolster oil demand in 2020 and the

prospect of lower U.S. crude supplies.

Aussie falls on central bank minutes; pound tanks

The Australian dollar fell nearly half a percent on Tuesday after the central

bank opened the door to another cut in interest rates as early as February

while the pound tanked on reports that Prime Minister Boris Johnson was

seeking a hard line on Britain’s transition period after Brexit.

Pound and stocks flop as Brexit fears resurface Tuesday 17th December, 2019 – Reuters

European stocks skidded off record highs and sterling dropped more than

1% on Thursday, as reports that Britain’s prime minister was ready to play

rough in Brexit talks brought December’s cross-market rally to a halt.

U.S.-China trade optimism and reassuring Chinese economic data had

driven Asia and emerging market stocks to 18-month highs overnight, but

green immediately turned red when London, Frankfurt and Paris opened.

[.EU]

Britain's FTSE 100 .FTSE, which had seen its best day in nearly a year on

Monday, dropped 0.2% on reports that Prime Minister Boris Johnson would

use his control of parliament to stop any extension of the Brexit transition

period beyond 2020.

The news knocked the domestically focused mid-cap index .FTMC as

much 1.7% lower, while the pound GBP=D3 fell 1% to back below $1.32

and nearly 2% under Thursday and Friday's post-election highs of just over

$1.35. [/FRX]

A profit warning from consumer goods giant Unilever (ULVR.L) that sent its

shares down nearly 6% also helped push the broader European STOXX 600

down 0.6%. [.EU]

“So much for pragmatism,” J.P. Morgan’s Malcolm Barr said, referring to

the reports of Johnson’s hard-line Brexit stance. “We have put the risk of a

no-deal end to the transition at 25%, a number we regard as

uncomfortably high.”

The resurgence of uncertainty over Britain’s departure from the European

Union on Jan. 31 and their future relationship meant Wall Street was

expected to give back some ground when New York reopens and put

safety trades back in play.

Most 10-year European bond yields were around two basis points lower.

UK GB10YT=RR and German 10-year yields DE10YT=RR dipped to 0.77%

and -0.29% respectively, compared to 1.85% for U.S. Treasuries. [GVD/EUR]

Britain’s political wrangling had not kept Asian stocks from joining a global

rally overnight, however, as more U.S. officials confirmed phase one of a

trade deal with China was done, although the details remain

unpublished.

The preliminary deal between Washington and Beijing reached last week

will double U.S. exports to China, White House adviser Larry Kudlow told

Fox News on Monday. The United States will also reduce some tariffs on

Chinese goods under the agreement.

Shanghai, Hong Kong and Seoul all gained more than 1% and MSCI’s all-

country index .MIWD00000PUS set a record high, putting its gains for 2019

at almost 23%, its best year in a decade and the fourth-best year ever.

“People are looking to close the year on a good note,” said Vishnu

Varathan, head of economics and strategy at Mizuho Bank in Singapore.

“I think that these are far more opportunistic than they are conviction

trades, so they tend to be a little bit more prone to taking profits.”

PALLADIUM

The Australian dollar AUD=D3 was another currency under pressure after

the minutes of this month's RBA central bank meeting suggested it might

cut interest rates again when it next meets in February.

The Reserve Bank of Australia has already cut three times since June,

taking rates to a record low of 0.75%. “Members agreed it would be

concerning if there were a deterioration in the outlook,” the bank’s

December minutes showed.

Elsewhere, investors were staying broadly optimistic over the tentative

U.S.-Sino trade deal struck last week which fueled gains in emerging

market currencies and capped the Japanese yen JPY= and Swiss franc

CHF=.

Oil was nearing three-month highs in anticipation of growing demand

from the world’s biggest economies. Brent crude LCOc1 ticked up for a

fourth day at $65.52 per barrel, while gold XAU= held just below $1,480 per

ounce.

Palladium, which is widely used in catalytic converters for car and truck

exhausts, remained the real focus, though, as it sped towards $2,000 an

ounce for the first time.

“Supply is tight in the palladium market and when you’re adding the

speculation about a potential pick-up in demand due to recovery in the

global economy, you have a perfect storm of bullish news continuing to

keep it supported,” Saxo Bank analyst Ole Hansen said.

<< Back to news headlines >>

Oil edges further above $65 on trade hopes, supply cuts Tuesday 17th December, 2019 – Reuters

Oil edged further above $65 a barrel on Tuesday, supported by hopes

that the U.S.-China trade deal will bolster oil demand in 2020 and the

prospect of lower U.S. crude supplies.

The ‘Phase One’ agreement between the world’s two largest economies

has been “absolutely completed,” Larry Kudlow, a top White House

adviser, said on Monday, adding that U.S. exports to China will double

under the deal.

Brent crude LCOc1, the global benchmark, rose 17 cents to $65.51 a

barrel by 1104 GMT, while U.S. West Texas Intermediate crude CLc1 added

1 cent to $60.22.

“Christmas has definitely arrived early for oil producers,” said Craig Erlam,

analyst at brokerage OANDA. “Brent could get closer to $70 before the

rally starts to run on fumes.”

The prolonged trade dispute has been a dampener for oil demand and

weighed on prices. Banks including JP Morgan and Goldman Sachs have

revised up their 2020 price forecasts in the wake of the improving trade

outlook and a new OPEC-led agreement to curb output.

“The risk-on tone is still noticeable,” said Tamas Varga of oil broker PVM.

“The next event to look out for is the weekly U.S. oil inventory statistics.”

Supply reports from oil industry group the American Petroleum Institute

and the government’s Energy Information Administration are expected to

show U.S. crude inventories probably fell last week.

The first of the two, from the API, is scheduled for release at 4:30 p.m. EST

(2130 GMT) on Tuesday. The government report follows on Wednesday.

Also supporting prices, the Organization of the Petroleum of Exporting

Countries and allies such as Russia - a group known as OPEC+ - are

making a further oil supply cut of 500,000 barrels per day from Jan. 1 to

support the market.

This comes on top of the existing deal to trim supply by 1.2 million bpd that

came into effect on Jan. 1 this year.


Aussie falls on central bank minutes; pound tanks Tuesday 17th December, 2019 – Reuters

The Australian dollar fell nearly half a percent on Tuesday after the central

bank opened the door to another cut in interest rates as early as February

while the pound tanked on reports that Prime Minister Boris Johnson was

seeking a hard line on Britain’s transition period after Brexit.

The Australian dollar lost 0.4% to $0.6868 AUD=D3 after minutes of its

December policy meeting showed the central bank's board was

concerned that wage growth was too weak to revive either inflation or

consumption.

The downside may be limited, however, as investors were cautiously

optimistic over an interim trade deal the United States and China struck

last week which fuelled gains in emerging market currencies and capped

the yen and Swiss franc.

The deal, announced on Friday after more than two-and-a-half years of

volatile negotiations between Washington and Beijing, will reduce U.S.

tariffs on Chinese goods in exchange for increased Chinese purchases of

some U.S. goods.

“The Aussie is weaker on the back of the back of the mode dovish than

expected RBA minutes,” said Valentin Marinov, head of G10 FX strategy at

Credit Agricole.

“That said, market expectations of a Phase 1 US-China trade deal could

limit the currency’s downside in the near term.”

The pound was the other big loser in early London trading after reports

that Johnson’s revised Withdrawal Agreement Bill would require the United

Kingdom to have arrangements to leave the European Union in place by

Dec. 31 next year.

Against the dollar, the British currency GBP=D3 fell 0.7% to $1.3236 in early

Asian trading and was hovering slightly above that level at $1.3253. It is

down nearly 2% below a post-election high of above $1.3516 hit on Friday.

The drop in the Australian dollar and the pound boosted the greenback

with the U.S. currency trading 0.1% stronger against a basket of its rivals

.DXY.

The euro was broadly stable against the greenback at $1.1143 EUR=,

levels it has traded around since August.


UK uses threat of Brexit cliff-edge to demand EU trade deal by end of 2020 Tuesday 17th December, 2019 – Reuters

British Prime Minister Boris Johnson will use the prospect of a Brexit cliff-

edge at the end of 2020 to demand the European Union gives him a

comprehensive free trade deal in less than 11 months.

In his boldest move since winning a large majority in last Thursday’s

election, Johnson will use his control of parliament to outlaw any extension

of the Brexit transition period beyond 2020.

“Our manifesto made clear that we will not extend the implementation

(transition) period and the new Withdrawal Agreement Bill will legally

prohibit government agreeing to any extension,” a senior government

official said on Tuesday.

Asked if the government would legislate to rule out any extension of the

transition beyond 2020, one of Johnson’s most senior ministers, Michael

Gove, said: “Exactly, absolutely.”

After the United Kingdom leaves the European Union on Jan. 31, it enters

a transition period in which it remains an EU member in all but name while

both sides try to hammer out a deal on their post-Brexit relationship.

A comprehensive free trade deal would encompass everything from

financial services and rules of origin to tariffs, state aid rules and fishing,

though the scope and sequencing of any future deal is still up for

discussion.

The pound fell 1.2% to $1.3155 and to 84.59 pence against the euro, levels

where it had traded before the scale of Johnson’s victory became clear

on Thursday evening and prompted strong gains. The pound is down

more than 2% from a post-election high above $1.35 against the dollar.

By enshrining in law his campaign promise not to extend the transition

period beyond the end of 2020, Johnson cuts the amount of time he has

to negotiate a trade deal to 10-11 months - and possibly quite a lot less,

given the time needed for UK and EU parliamentary approval of any deal.

The EU hopes to start the trade talks with Britain by March.

Trade deals usually take many years. The 2,000-page EU-Canada trade

deal known as CETA, or the Comprehensive Economic and Trade

Agreement, took seven years to negotiate.

While Johnson’s large majority gives him the flexibility to change the law

should he need to, he is sending a message to the EU - whose leaders

have cautioned London that more time would be needed for a

comprehensive trade deal.

EU DEAL?

If the United Kingdom and the EU failed to strike a deal on their future

relationship and the transition period were not extended, then trade

between the two would be on World Trade Organization (WTO) terms -

more burdensome for businesses.

The EU insists it will not seal a trade deal with a large, economically

powerful neighbor without solid provisions to guarantee fair competition.

Its demands will focus on environmental and labor standards, as well as

state aid rules to ensure Britain would not be able to offer products on the

bloc’s single market at unfairly low prices.

Britain’s conundrum is that it will be under pressure to loosen rules on

agricultural and food standards to strike a bilateral trade deal with the

United States.

But this would be crossing a red line for the EU, which would restrict access

to its market to protect its own producers.

Johnson and U.S. President Donald Trump by phone on Monday and they

agreed on the need for continued close cooperation and the negotiation

of an “ambitious” UK-U.S. free trade agreement.

In Britain’s talks with Brussels, fishing will be a particularly thorny issue as EU

countries will no longer be able to operate in British waters as they do

now.

With industry supply chains in the EU crossing borders multiple times for

products like cars and drugs, agreeing exact rules to designate where

products come from - and hence what regulations and taxes apply - will

also be fraught.

“It will be very complicated. It’s about an array of relations, in trade, in

fishing and cooperation in security and foreign policy,” German

Chancellor Angela Merkel told an EU summit news conference on Friday.


UK jobs growth resumes, unemployment rate near 45-year low Tuesday 17th December, 2019 – Reuters

The number of people in work in Britain unexpectedly rose in the three

months before the missed Oct. 31 deadline for Brexit, according to data

which suggests the labor market was retaining some of its strength.

The number of people in employment rose by 24,000 to 32.8 million in the

August-to-October period, bucking the median forecast for a drop of

10,000 in a Reuters poll of economists.

The employment rate hit an all-time high of 76.2% while the

unemployment rate fell back to its lowest level since the three months to

January 1975 at 3.8%.

“The larger-than-expected rise in employment in October suggests the

labor market is not getting any worse and may have even started to turn

around,” said Andrew Wishart at Capital Economics.

The increase in jobs was driven by a rise in the number of self-employed

workers and full-time staff, while the number of part-time employees fell.

British government bond prices fell by a small amount as investors viewed

the chance of a Bank of England interest rate cut next year as slightly

lower.

Britain’s labor market has stayed strong even as the economy slowed

following the 2016 referendum vote to leave the European Union. That is

due in part to employers, who are uncertain about what Brexit will bring,

hiring staff who can be laid off easily rather than making longer-term

commitments to invest in equipment.

But there had been signs recently that the jobs boom was weakening.

These prompted two interest-rate setters at the Bank of England to vote

for a cut to borrowing costs last month, and they are expected to do so

again this week.

Prime Minister Boris Johnson last week reduced some of the uncertainty

hanging over the economy by winning a big majority in a national

election, ending any doubts about whether Britain would leave the

European Union on the new date of Jan. 31.

But nerves about Brexit could return soon. Johnson plans to pass a law

ruling out any extension of the Brexit transition period beyond the end of

2020, saying he is confident he will clinch a free trade deal with the

European Union by then.

There were some signs of caution among employers in Tuesday’s data.

Vacancies were the lowest since the three months to August 2017 at

794,000.

The Office for National Statistics also said average earnings rose by an

annual 3.2%, the weakest increase in more than a year and slowing

sharply from growth of 3.7% in the three months to September. The ONS

attributed much of the slowdown, however, to high bonus payments in

October 2018 which distorted the comparison.

Excluding bonuses, pay growth slowed less sharply to 3.5% from 3.6% in the

three months to September and was above the Reuters poll forecast of

3.4%.


UK factory output slides in three months to December at fastest rate since

2009 Tuesday 17th December, 2019 – Reuters

British factory output fell at the fastest pace in more than 10 years during

the three months leading up to Prime Minister Boris Johnson’s election

victory, underscoring the challenge he faces to boost the economy.

The Confederation of British Industry’s gauge of manufacturing output

over the three months to December fell to -16 from -9 in November, its

weakest reading since September 2009.

Inflows of new work also deteriorated as the CBI’s monthly order book

balance fell to -28 from -26.

The survey of 289 manufacturers covered Nov. 22 to Dec. 11, just before

Johnson chalked up a comprehensive victory in last Thursday’s election.

Other surveys have also shown Britain’s manufacturers have struggled in

recent months against a global drop in demand, as well as uncertainty

surrounding Brexit and the election.

“With manufacturers reporting that output is declining at a pace not seen

since the financial crisis, alongside another month of softer order books, it

is crucially important to rebuild business confidence in this sector,” CBI

deputy chief economist Anna Leach said.

“After three years of gridlock, the Prime Minister now has a clear mandate

to govern. Businesses across the UK will want him to break the cycle of

uncertainty,” she added.

The survey showed export orders declined at one of the fastest rates since

the financial crisis.


Euro zone trade surplus jumps more than expected in October Tuesday 17th December, 2019 – Reuters

The euro zone’s seasonally unadjusted trade surplus rose more than

expected in October compared with a year earlier thanks to a sharp fall

in energy imports, data showed on Tuesday.

The European Union’s statistics office Eurostat said the trade surplus of the

19 countries sharing the euro rose to 28.0 billion euros ($30.9 billion) in

October from 13.2 billion a year earlier after exports jumped 4.1% and

imports fell 3.2%.

Economists polled by Reuters had expected a trade surplus of 17 billion

euros in October.

The euro zone produces three quarters of the European Union’s gross

domestic product, and energy imports to the whole EU fell 7.7% in

January-October, cutting the energy trade gap to 228.8 billion euros from

246.7 billion a year earlier.

Adjusted for seasonal swings, the euro zone trade surplus in October was

24.5 billion euros, up from 18.7 billion in September, with exports up by 2.1%

and imports down 0.9% on the month.


European shares fall from records on Unilever warning, hard Brexit Tuesday 17th December, 2019 – Reuters

European shares pulled back after a record run on Tuesday as a sales

warning from Unilever prompted investors to sell big consumer names,

while concern that Britain will take a hard line on the Brexit transition

dragged down UK domestic stocks.

The pan-European equities index fell 0.6% after soaring to record highs in

the previous session.

The biggest weak spot was consumer goods giant Unilever (ULVR.L)

(UNA.AS). Its shares tumbled 6%, on course for their biggest percentage

drop since July 2015, after the company warned that 2019 sales would

grow less than it had expected, citing tough trading conditions in West

Africa and a slowdown in south Asia.

Europe’s personal and household goods sector fell 2.1%, the most among

regional subsectors.

“With Unilever, it’s a combination of technical breakdown on the charts,

you’ve got the warning and the time of the warning is not ideal because

the markets have already been rotating out of big UK defensive names,”

Mark Taylor, sales trader at Mirabaud Securities.

Taylor, however, suggested Tuesday’s broader market moves were “just

reassessing some of the outsized moves that we’ve seen in the last few

days.”

Global equity markets reached record highs on Tuesday, encouraged by

phase one of a trade agreement between the United States and China

and by Boris Johnson’s victory in UK elections last week, which raised

hopes for an orderly exit by Britain from the European Union.

Domestically focused UK stocks, also at record highs, succumbed to

selling pressure on Tuesday after reports that Johnson would use his control

of parliament to rule out any extension of the Brexit transition beyond

2020.

British banks Royal Bank of Scotland (RBS.L), Barclays (BARC.L) and Lloyds

Banking Group (LLOY.L) slid more than 3%.

London's blue-chip index, the FTSE 100 .FTSE held steady, aided by a

weaker pound. The latest data showed Britain's employers unexpectedly

took on more staff in the three months before the country's Oct. 31 Brexit

deadline, suggesting the labor market was retaining some of its strength.

Airbus rose 0.5% after Boeing said it would suspend production of its 737

MAX jetliner in January. Shares in aircraft-parts maker Safran (SAF.PA) fell

about 4%.

Ryanair, Air France and Lufthansa were all weaker as well.

Shares in Austrian specialty steelmaker Voestalpine (VOES.VI) fell 3.1%

after it cut its full-year profit forecast and said it planned to lower its

dividend payment.

German defense group Rheinmetall (RHMG.DE) was the top gainer on the

STOXX 600, up 2.3%, after Goldman Sachs started coverage with a “buy”

rating.


Japan industry ministry gets $423 million extra budget to strengthen

resource policy Tuesday 17th December, 2019 – Reuters

Japan’s industry ministry has secured 45.9 billion yen ($423 million) in the

country’s supplementary budget for the current financial year as it looks

to strengthen its resource policy and secure supplies of key commodities.

The move comes as resource-poor Japan faces an increasing risk of

supply disruption. It buys 90% of its oil from the Middle East where

geopolitical tensions are on the rise, while it is also competing with other

countries to secure liquefied natural gas and critical metals used in

batteries and other high-tech products amid rising global demand.

Japanese cabinet approved its supplementary budget last Friday,

featuring additional fiscal spending worth about 4.5 trillion yen, for the

fiscal year to March.

The Ministry of International Trade and Industry plans to use 20.9 billion yen

of the extra budget to diversify sources for rare earths and cobalt, which

are used in electric vehicles and lithium batteries, its budget document

shows.

The country aims to lower its reliance for rare earth on any single country

to 50% or less by 2025 while it wants to raise its self-sufficiency ratio through

equity investments to 50% by 2025, the ministry said in the document.

China dominates the supply chain of rare earths from mining to

processing to magnet production, accounting for more than 80 percent

of global supply.

The ministry also set aside 25 billion yen to provide funds through state-run

Japan Oil, Gas and Metals National Corp (JOGMEC) to help LNG projects

in Russia and Arctic areas.

This year, Japanese trading house Mitsui & Co and JOGMEC agreed to

buy a 10% stake in an upcoming LNG project, the Arctic LNG 2, owned by

Russia’s Novatek.

Japan is targeting to boost self-sufficiency ratio for oil and gas to 40% in

2030 from 29.6% in 2018, according to an official at the ministry.


Japan economy minister: Hope exports, output will improve after U.S.-

China trade deal Tuesday 17th December, 2019 – Reuters

Japanese Economy Minister Yasutoshi Nishimura said on Tuesday he

hoped the nation’s exports and factory output would improve following

an initial trade agreement between the United States and China.

The U.S. and China cooled their trade war last week, announcing a

“Phase one” agreement that reduces some U.S. tariffs in exchange for

what U.S. officials said would be a big jump in Chinese purchases of

American farm products and other goods.


Toyota expects 2020 global car sales to stay at record-high levels Tuesday 17th December, 2019 – Reuters

Toyota Motor Corp (7203.T) expects its global vehicle sales to stay at

record highs in 2020, even as demand shows signs of slowing in China and

the United States, the world’s top car markets.

The Japanese automaker said it planned to sell a record 10.77 million

vehicles next year, including cars sold under the Toyota, Lexus and

Daihatsu brands along with Hino trucks, a touch higher than its plans to sell

10.72 million units for the year ending December.

Competition to sell more vehicles is tight among the world’s biggest

automakers as they try to boost sales to achieve economies of scale and

reduce costs at a time when they are investing heavily to develop next-

generation technologies including self-driving vehicles and electric cars.

Germany’s Volkswagen (VOWG_p.DE) has been the top-selling

automaker for the past five years, delivering 10.83 million vehicles

including its MAN and Scania heavy trucks in 2018.


Govt. reviewing Exxon’s third field development plan Tuesday 17th December, 2019 – Kaieteur News

A field development plan is a layout of all of the processes and activities

intended to develop an oil field, and the manner in which those will be

executed. Before it begins to develop a field, an oil company is required

to hand over its plan to the Department of Energy for approval before it

gets to work.

The current review process is being conducted by the Department of

Energy, in conjunction with the Guyana Geology and Mines Commission

(GGMC).

Director of the Department of Energy, Dr. Mark Bynoe, notified the media

of this process yesterday, during a press conference at the Department’s

Brickdam office.

He said that the Government agencies have gained some level of

understanding based on their experiences during the review processes for

the Liza-1 and Liza-2 projects. Those projects have been approved and

are both set to be operationalised by this month and 2022 respectively.

The projected cost for their development amounts to nearly US$10B.

The Payara project is shaping up to cost just as much as Liza-2, as there

are many project similarities. Those include the Floating Production,

Storage and Offloading (FPSO) vessels, which would both produce

220,000 barrels of oil per day.

Dr. Bynoe said yesterday that the Liza Unity is about 97 percent complete.

The Director told reporters that the topside fabrication is ongoing, while

the line-pipe fabrication is 99 percent complete, and the buoyancy

modules 80 percent complete.

“The operator is working with the Department of Energy to continue to

fulfill the conditions that were laid down, and I’m happy to report that we

have since received one such report from the operator that was a

condition of the FDP approval.”

That report is being reviewed by the Department of Energy and the

Environmental Protection Agency (EPA).

Following the Government’s preliminary review of the Payara FDP,

Government will hire a third party reviewer to conduct a more

comprehensive review. It has completed the contract negotiation thus

far, and is now awaiting the award of the contract to a reputable

international firm.

Recent public discourse about the field development plans, as reported

by Kaieteur News, indicate that there is a considerable push to make sure

the activities planned by ExxonMobil and its partners on the Stabroek

Block, and the costs involved, are repeatedly and publicly scrutinised.

The Petroleum Directorate of Norway, for one, makes their field

development plans public. Industry experts have posited that Guyana

should do the same.

Kaieteur News posed the suggestion to Dr. Bynoe, who indicated his

refusal to do so. He indicated that there is proprietary information that

needs to remain confidential. When Kaieteur News suggested the

publication of the field development plans after the removal of such

proprietary information, the Director of the Energy Department did not

respond.

All of this happens as ExxonMobil hands out contract after contract for

construction works related to the still unapproved Payara FDP. The

company has indicated its intention to start production on the Payara

project in 2023


Energy Dept. putting finishing touches on final draft local content policy Tuesday 17th December, 2019 – Kaieteur News

The Department of Energy has received the final local content policy

draft from the Consultant, Dr. Michael Warner, according to Energy

Department Head, Dr. Mark Bynoe.

The Department is editing the policy and aims to complete and finalise it

before December ends. In addition, the reporting policy is already being

used, as during a press conference yesterday, Bynoe told reporters that

the Department has commenced the process of reviewing the oil

companies’ local content reports. This is in the hope that they adjust their

operations to ensure a smooth transition to adherence with the policy’s

requirements.

Kaieteur News has been reliably informed that ExxonMobil’s subsidiary,

Esso Exploration and Production Guyana Limited (EEPGL), has submitted its

2020 plan, and a report on its local content achievements.

Dr. Bynoe said that the last report from EEPGL indicated that over 1,500

Guyanese are directly employed with the operator and its contractors,

with 76 percent of them being in the skilled and professional categories.

He said the locals employed are predominantly from regions three, four

and six.

The Director further indicated that the company has engaged with over

435 Guyanese vendors and spent over $82M in the third quarter of 2019,

an increase of more than 150 percent over the 2018 figure.

Dr. Bynoe has commended EEPGL, indicating that the Department of

Energy is encouraged by the continued contributions made to raising

capacity and standards in Guyana.

Government is currently working with CGX Energy and Tullow Oil to

develop their local content plans.

The Director also said that EEPGL is working with the Council for Technical,

Vocational Education and Training (CTVET) for the revision of the

curriculum for electrical welding and fabrication level 1 programme. The

aim is to train trainers, starting in July and August of 2020, to ensure the

revised curriculum is properly delivered. There are also facility upgrades in

the works, to ensure that the laboratories facilitate safe training

procedures.


‘We Need Bigger Profit On Eggs’ Monday 16th December, 2019 – Tribune 242

Food retailers are seeking "at least" a three-fold increase in the mark-up

permitted on eggs by price control, with their Association chief renewing

calls for such regulations to be abolished.

Philip Beneby, head of the Retail Grocers Association, confirmed to

Tribune Business that the group and its members have written to the

Government's Price Control department to arrange a meeting over their

calls for the mark-up to be increased from 10 percent to around 35-40

percent.

Revealing that this has been a long-standing "issue", Mr Beneby said the

fragile nature of eggs meant Bahamian food stores frequently lost product

to damage and spoilage before they reached supermarket shelves.

With the associated refrigeration demands adding to retailers' already sky-

high electricity bills, he explained that the current mark-up means they

suffer significant losses on "a staple" for many Bahamian families because

they are unable to cover their costs.

Confirming that eggs are effectively a "loss leader" for the Bahamian

grocery industry, Mr Beneby said the sector was also exposed to sudden

global market price swings as this nation is no longer a producer.

"Eggs have been an issue with price control for a very long time," he told

Tribune Business. "The price of eggs fluctuates; we don't produce eggs

here, and it changes from time to time and place to place.

"We are only allowed a 10 percent gross mark-up. We would be seeking a

higher mark-up on egg prices. Eggs are very delicate, and we're having

losses on them while having to keep them under refrigeration and all the

other issues with it.

"The mark-up that's being looked at is at least a 35-40 percent gross mark-

up. At 10 percent, eggs are not a profitable item. It's an item that we carry

in store as a necessity item customers require but it's not a profitable item.

It is a staple, a Bahamian staple."

Mr Beneby said the Association, which counts the likes of Super Value and

BISX-listed AML Foods, the Solomon's and Cost Right operator, among its

members, has written to the Price Control department seeking a meeting

on egg mark-ups.

"A meeting was requested," he added, "but nothing has been arranged

along those lines yet. We're waiting to confirm a meeting with them." Mr

Beneby, who revealed that between 70-75 percent of the inventory sold

by his company, Carmichael Road-based Courtesy Supermarket, is price

controlled, again reiterated that such regulations were unnecessary in the

modern Bahamas and failing to fulfill their objective.

"There's no need for price control," he told Tribune Business. "That's not my

call; that's my opinion. There is no need for price control. The market is a

competitive market, and therefore competition will drive it and prices.

There's no real need for price control, but who am I? The Government

introduced it.

"Everybody is trying to hold the line on prices as best we can. The

inventory on price control is anywhere from 70 percent to 75 percent of

the total. About 70 percent of items are price controlled, at least in my

store. I can only speak for my store."

The debate over whether price controls have outlived whatever use they

had, and should therefore be abolished, or if they remain a vital tool in

ensuring lower income Bahamians can afford to purchase basic food

items, has reared up at frequent intervals in recent years - especially when

Dr Duane Sands, minister of health, unveiled the proposed reforms to the

price-controlled "breadbasket" food line-up.

Food retailers, gas stations and other industries subject to price controls,

such as auto dealerships, argue that they are outdated, antiquated and

ineffective, and are a sign of how inefficient and bureaucratic the

Bahamian economy remains by forcing them to sell a substantial portion

of their inventory below cost or at a loss.

Such industries suggest price controls are no longer fit for purpose, are

failing in their alleged role to protect consumers, and cause unintended

consequences for the Bahamian public. In the case of the food industry,

selling price-controlled items at a loss forces them to hike the price of

other products higher than they would to compensate, disadvantaging

consumers.

In countries such as Venezuela, loss-causing price controls have caused

companies to stop or restrict the supply of such products, resulting in

shortages and price hikes that place them beyond affordability for many

consumers.

Price controls were first imposed under the Pindling government in a bid to

ensure Bahamians were able to afford a reasonable standard of living,

and advocates argue that they remain fit for purpose by ensuring those

on low incomes can afford staple food items and are not exploited by

unscrupulous merchants seeking to extract every cent in profits.

Successive administrations have declined to address the issue, with many

suspecting they are eager to avoid any negative political fall-out from

abolishing or easing price controls and subsequently being accused of

being against the “small man”.

However, these regulations are viewed by many as ill-suited for market

economies, especially since they have failed to keep up with ever-

increasing expenses. Many observers believe the Bahamian food retail

and wholesale industry is sufficiently competitive to ensure prices remain

keen, thereby achieving the same effect as government regulations.


$5m Waste Of Axed Welfare Reform Plan Monday 16th December, 2019 – Tribune 242

Poverty-stricken families and the Bahamian taxpayer have received

almost no value from a near-$5.4m investment in welfare reform that was

halted by the Minnis administration.

An Inter-American Development Bank (IDB) report on efforts to reform The

Bahamas' social safety net, which it helped to finance, reveals that the

already-launched initiative was "cancelled after the change in policy

direction" that followed the May 2017 general election.

The document, which has been obtained by Tribune Business, reveals that

$5.374m in IDB financing had been spent by the time the project was

stopped. This now represents monies taxpayers will have to repay despite

not gaining the intended benefits from them.

Frankie Campbell, minister of social services and urban development,

could not be reached for comment yesterday despite text messages and

voice mails being left. However, the Minnis administration last year blasted

the welfare reform initiative for having "self-destructed and suffered

irreparable defects as a result of poor management, low performance

outputs and failure to meet deliverables".

It added that the IDB itself had recommended closing the project by its

"fixed expiration date" of August 2017 due to the "limited results" and

problems associated with its execution. Yet none of this is mentioned by

the IDB's "project completion report" which, while acknowledging

implementation challenges, blamed its closure on policy decisions taken

by the Minnis administration.

Melanie Griffin, the former social services minister who oversaw the

project's development, yesterday told Tribune Business that the IDB report

exposed "a total loss for this country" when it came to combating

"generational poverty" and welfare dependency.

She added that the project had been designed to "break that cycle" by

linking the payment of welfare benefits to specific education and health

goals. Known as a conditional cash transfer (CCT), which would have

consolidated the Government's benefits regime, the initiative aimed to

"change behaviour" among the children of poor families by promoting

schooling and healthy living.

Benefits recipients would have been required to ensure their children

maintained a 90 percent school attendance record at both primary and

secondary level, and keep a grade point average (GPA) of 2.0 or more.

Dropping below this level would have triggered a 90 percent minimum

attendance threshold at tutoring classes.

On the health front, beneficiaries and their families would have been

required to attend the likes of routine prenatal classes, "well child care"

visits, parent craft classes and healthy weight clinics in a bid to combat

childhood obesity and the high level of non-communicable diseases that

flow from it.

Mrs Griffin, arguing that the IDB report vindicated her criticisms of the

Minnis administration, said it was another example of how five-yearly

changes in government are undermining initiatives that benefit the

Bahamian people.

Adding that the fight against poverty was non-political, the former

Cabinet Minister said the Christie administration would have sought an

extension of the August 2017 deadline from the IDB had it been returned

to office.

"It was a full onslaught against poverty," Mrs Griffin told Tribune Business. "It

was not just doling out assistance. It was meant to take us beyond that. It

was meant to take families out of poverty by building health, education

and making them better able to compete in the job market.

"For me and this country it was a total loss for this programme to be

stopped. We already had in place the IT platform; it was just about

complete. Everything was in place. The IT system was not just in New

Providence; we had built the capacity and started to send computers to

Grand Bahama. I myself sat in training on these computers.

"I'm very passionate about this. I got involved with this personally to push

things, drive things...... It just goes to show what happens when you have

changes of government, and you do not have the inclination to move

forward with what the previous administration left in place," she

continued.

"All they [the Minnis administration] had to do was build on it. The IDB is not

political, and we had already had training sessions on it. This was

devastating for the social workers, who were looking forward to helping

clients better and weaning them off poverty."

The decision to halt the Social Safety Net Reform initiative was taken

under Mr Campbell's ministerial predecessor, Lanesha Rolle, who is now

minister of youth, sports and culture. A previous IDB report, revealed by

Tribune Business last year, was also highly critical of the effort in finding

that it achieved "none of the planned outcomes" with just 27 percent of

the targeted 12,000 Bahamian households receiving cash grants.

However, the more-detailed "project completion report" provides a

different take, arguing that the minimal achievements had more to do

with the project being halted in mid-stream while also identifying the

typical bureaucratic weaknesses in the Bahamian government.

"The project was cancelled after the change in policy direction based on

the change in the political administration after the elections in May 2017,"

the IDB report said. "Using social safety nets as a means of affecting these

outcomes is no longer seen as a viable option for affecting these

indicators.

"After the change in government, the programme was assessed and

found not to be in line with the current policy direction, which is why most

of the outcomes, which depended on the government delivering transfers

under the new rule, were not achieved."

Some $9.6m worth of funding had initially been dedicated to alleviating

poverty and welfare dependency, with $7.5m to come from the IDB and

the balance from the Government. While the project was halted before

the final $4.386m was disbursed, some $5.374 had already been used.

"What we had under the old system was a grandmother on food

assistance, her daughter on food assistance, and her daughter's daughter

on food assistance," Mrs Griffin said yesterday. "It was generational, and

for us to break that generational cycle was very important and to make

these people better able to fend for themselves.

"Did the programme have some setbacks, some challenges? Of course it

did. It was a first for us. This was totally new for us. In fact, the programme

in The Bahamas was going further than many in other countries. We

looked at what had been done in other countries, and changed them to

suit the situation in The Bahamas with all its islands. It was tailor-made for

The Bahamas."

Mrs Griffin said the switch from paper food coupons to pre-paid cards was

also designed to combat widespread fraud involving the former that has

been identified in previous Auditor-General's reports.

"One of the important conclusions from the report was that the targeting

mechanism was well designed and would have been adequate to target

the poor," the IDB project completion report said, noting that some

funding was used to help poor households recover from Hurricane

Matthew in October 2016.


Super Value Chief '100%' Confident Resort Deal Close Monday 16th December, 2019 – Tribune 242

Super Value's owner says he is "100 percent" confident that the sale of his

Bimini Sands resort will close as early as this week, adding: "I'm doing the

island a favour by exiting."

Rupert Roberts told Tribune Business he hoped to conclude the deal this

week after the intended purchasers, the Asplundh family, put their

signatures to the agreement in Bimini on Friday.

Revealing that he was "too busy selling potatoes and onions", Mr Roberts

said he needed to pass Bimini Sands on to a buyer with the capital and

expertise to properly oversee its future development because it had

become too "time intensive".

"We are there," he confirmed of the sale's imminent conclusion.

"Everything is in play. We've been working it for weeks. I'd hope to sign

some time next [this] week. Something like this involves a lot of details, and

takes a lot of time to clean up."

Mr Roberts said Peter Maury, who he hired as a consultant to help oversee

Bimini Sands' operations, had visited Bimini on Friday to obtain the sign-off

from the US billionaire family that is set to acquire the property.

The Asplundhs, who originate from Philadelphia, trace the source of their

wealth to their 91-year-old business, Asplundh Tree Expert, which cuts trees

and vegetation for electrical utility companies.

Now under its third generation of family ownership, the company is

described as a $3.1bn revenue business that employs a 35,000-strong

workforce across multiple US states.

"I like the family and have a lot of confidence in them," Mr Roberts said.

"I've met Mr Asplundh, he's a young 80s, and his son lives in Florida and

he's involved." Tribune Business understands that the Asplundh family

intend to re-name Bimini Sands as Bimini Cove, but few details as to their

plans have been revealed as yet.

Reiterating his belief that they will transform the property into "a gem like

Cat Cay", Super Value's owner added that the passing of his late Bimini

Sands business partner some three to four years ago had been a key

factor behind his decision to get out.

"They have the resources and capabilities to do it," Mr Roberts said of the

Asplundhs. "At this point I'm doing Bimini a favour to exit for them to move

the resort to a higher level. I always felt that the marina should be

enlarged. We have less than 100 slips, and could go to 200. It needs that

investment, and I think with a new investor that will come.

"After [Frank] Cooney dies, I'm too busy selling potatoes and onions, and

without the eye of the master... You need the eye of the master to make it

work. It's a difficult business from what I understand of it. The hospitality

business, I don't have the expertise, so am giving it to someone who knows

something about it.

"Supermarkets are so time intensive, and take time to manage. Being

involved at Commonwealth Bank only takes so many hours in the

Boardroom. I'd rather get out as this is too time intensive."

Bimini Sands currently features 216 condo units and around 60 marina slips.

The Asplundhs are acquiring the 50 condo units yet to be sold, with just

under half - some 24 - already furnished.

Mr Roberts said he was "satisfied to move out" based on the purchase

price he is due to receive, which he declined to reveal. "I have a lot of

acreage of land in Bimini, and maybe in future years my children and

grand children will make money out of Bimini," he added.

"We still have to settle the water situation. We may stay in that, we may

hand it [the Bimini Sands water supply] over completely to the new

owners. If they want us to stay on it and help them we will, but if we stay in

it I would hope to be a water producer as water is a high duty item. Why

send hard-earned dollars to the US for water? We'll look at that in the

future."

Bimini Sands condo owners were informed of the resort's impending sale in

a letter earlier this year, which said the deal will "put Bimini Sands back on

the map" and increase the value of their properties.

"These buyers have a clear vision of what Bimini Sands should be and is

currently lacking. They do realise there is a lot of work ahead of them, as

well as gaining the trust, confidence and co-operation of all the

homeowners and HOA [Homeowners Association] board members," the

letter said.

It added that the buyer's planned upgrades included paving all roads;

new landscaping and lighting; a new condo rental programme; new

security camera system; marina expansion and fix-ups with "first right of

refusal" to current homeowners; repairs to the infinity pool; beach

replenishment; "addressing the current restaurant deficiencies" and water

supply woes; fixing the sewerage treatment plant; and marketing and

rebranding Bimini Sands.

"These buyers are very sharp and have seen all the negative postings on

social media, which is not a mystery and a big concern for them," the

letter said.

"The future of our homes at Bimini Sands will be given new life with the

enthusiasm and knowledge of these buyers. I hope we can all agree to

put our differences aside and start anew. The first test will be getting

everyone on board to approve the painting of all the buildings in each

phase, which is so badly needed."


Tourism To 'Come Out Swinging' During 2020 Monday 16th December, 2019 – Tribune 242

The Bahamas will "come out swinging next year" with new tourism

promotions and initiatives as it continues to rebound from Hurricane

Dorian's devastation.

Bridgette King, the Ministry of Tourism's executive director of sales, outlined

the country's ambitions as the Bahamas Tourist Office's sales and

marketing team organised a Christmas event for south Florida travel,

corporate and media partners at Brightline Station, Miami.

Ms King said that while The Bahamas had just missed its projected seven

million visitor target in 2019 due to Hurricane Dorian, it was now focused

on this goal for next year. She said: "Grand Bahama is coming on strong,

and although it may be a little while for Abaco, they are still rocking."

She added that the Ministry of Tourism will launch a new marketing

campaign for 2020, along with new initiatives on the ground and

activations including Sawgrass Mills Mall in Sunrise, Florida, for an entire

month.

Attendees at the event included airlines, hotels, tour operators,

wholesalers, journalists, bloggers and others. The event in Miami followed

the Bahamas Tourist Office Florida's Christmas Mix N' Mingle in Orlando a

few days earlier.


Airport Bracing For 230k Passengers Monday 16th December, 2019 – Tribune 242

Lynden Pindling International Airport (LPIA) is aiming to make it feel like

Christmas for the 230,000 passengers set to move through its three

terminals over the next two-and-a-half weeks.

“Based on historic passenger numbers this year and our initial projections,

we are in for a busy season here at the airport. Our focus at NAD is to

continue to work with all of the relevant stakeholders to ensure the smooth

movement of passengers through our facilities, especially during the peak

periods,” said Jan Knowles, Nassau Airport Development Company’s

(NAD) vice-president of marketing and commercial development.

“Our goal is to use best practices implemented over the Easter, summer

and Thanksgiving periods to manage passenger flow. The in-terminal

holiday activities, entertainment and special promotions are a way for us

to make the travel process more enjoyable for passengers.”

She added: “We’re encouraging persons travelling between now and the

New Year to plan ahead and stay connected to the airport, and their

airlines for relevant travel updates. It’s also advised that persons travelling

on US-bound flights to arrive at least three hours prior to their scheduled

departure time and two hours for international and domestic departures.”

NAD, the airport operator, has launched its seasonal entertainment

programme in-terminal with 230,000 persons set to move through its

terminals between mid-December and January 2. On December 12,

mixologist Marv Cunningham staged a holiday- inspired mixology session

featuring Spice Guava Egg Nog, Peppermint Mojito and Santa’s Little

Helper, a non-alcoholic drink for children.

The halls are decked and the trees are trimmed at Lynden Pindling

International Airport (LPIA) as the country’s major gateway prepares to

manage heavy passenger traffic over the Christmas season. Between

mid-December, 2019 and January 2nd, 2020, an estimated 230,000

passengers will be processed through the airport’s three terminals.

LPIA’s commercial retailers last week launched their 12 Days of Christmas

promotion, and US-bound passengers spending $25 or more had a

chance to “spin and win” LPIA paraphernalia. Retail promotions will

continue through Christmas Eve.


Bahamas Enjoying 'Major' Airlift Growth Monday 16th December, 2019 – Tribune 242

The Bahamas has seen “significant airlift growth” to Nassau and two other

islands as its pushes its “open for business” message in the aftermath of

Hurricane Dorian.

Tyrone Sawyer, senior director of airlift development for the Ministry of

Tourism and Aviation, said: “There has been significant growth in air seat

capacity to Nassau, North Eleuthera and Exuma, major Bahamas markets,

from the following hubs: Charlotte, Atlanta, Toronto, Miami, Dallas/Fort

Worth and Newark.

“These are some of the key hubs undergirding airlift to the islands of The

Bahamas, and this increase in airlift to The Bahamas is well-positioned to

drive the country’s tourism growth. There is a high volume of non-stop

flights from key tourist markets in close proximity The Bahamas. This

proximity advantage gives The Bahamas the unique ability to attract high

income visitors, with the desire to achieve a foreign, accessible, authentic

vacation experience at competitive prices.”

Mr Sawyer also pointed to the new and increased flights that will affect

the upcoming winter travel season, and added: “The islands of The

Bahamas have - and will - benefit from increases in non-stop air seat

capacity from core tourist markets like New York, Fort Lauderdale,

Houston, Boston, Orlando, West Palm Beach, Jacksonville and Chicago.”

He said the upcoming increases in airlift include:

• JetBlue will add a second daily flight from Boston to Nassau in March

and April 2020

• United Airlines will add a new non-stop Saturday-only jet from Denver to

Nassau in March 2020

• Silver Airways is adding a Fort Lauderdale to Bimini flight, supported by

connections through its code share partners, JetBlue and United

• Air Canada will increase its Montreal to Nassau non-stop flights from two

to four flights per week in December 2019

Dionisio D’Aguilar, minister of tourism and aviation, said: “Over the past

two years we have seen improved load factor performance by most of

our airline partners serving the islands of The Bahamas from origin and

destination markets.

“This increase in consumer demand, driven by vigorous promotional

efforts in the marketplace by the Ministry of Tourism and Aviation and our

industry partners, has given our airline partners renewed confidence to

increase air seat capacity from key markets to set the stage for further

growth.”

Mr Sawyer added: “The goal is to build upon a proven formula: Build

strong demand and airlift will follow.”


Touchstone finds more oil in Ortoire Tuesday 17th December, 2019 – Trinidad Express Newspapers

CANADIAN energy company, Touchstone Exploration, yesterday

announced that the company has made what it described as 'a

significant crude oil discovery with the Cascadura-1ST1 well', which is

onshore in the Ortoire exploration block.

The oil company said Cascadura well cased hole wireline logs indicated

significant prospective oil pay totalling 1,037 feet from 1,374 feet of gross

sand.

The company said it expects to complete and test the well in the first

quarter of 2020. It said Cascadura is the second prospect of four on the

Ortoire block with initial test results at COHO-1 previously released by the

Company last month.

Commenting on the discovery, Touchstone's president and CEO, Paul R

Baay: 'The well results far exceed any pre-drill expectations. This well is not

only a significant discovery and milestone for Touchstone, but we believe

it also establishes a new development stage for onshore drilling in Trinidad.

'In the new year, we expect to test each zone independently in order to

better understand the economic potential of the prospective oil sands,

and if the findings are positive, it will set up an expansive development

drilling programme in the area.'

In a statement, former minister of energy in the previous People's

Partnership administration, Kevin Ramnarine, congratulated the company

on the discovery.

He noted that Touchstone was formally awarded the licence for the

Ortoire block October 31, 2014 following a successful competitive land bid

round in 2013/2014 that saw the award of three blocks to three

companies.

'It was always expected that these three land blocks had the potential to

resuscitate land-based oil production in T& T and stimulate economic

activity in the south-eastern part of the island,' said Ramnarine.

He added that what is significant about the Cascadura well is the fact

that it discovered crude oil in 1,037 feet of total net oil pay, which makes it

a potentially significant discovery and 'potentially the most significant

discovery on land since the 2002 discovery of the Carapal Ridge (now

Shell Central Block).'

He noted that the success of Touchstone underscored the need for the

Ministry of Energy to be continuously awarding acreage for exploration,

adding that unfortunately, the opposite has happened in the last four

years.

'For the period 2016 to 2018, the Ministry of Energy has awarded zero

hectares of acreage for exploration-a trend which will have most likely

continued into 2019.'

Touchstone said it expects to complete and test the Cascadura-1ST1 well

in the first quarter of 2020.


New CEO for ANSA McAL Tuesday 17th December, 2019 – Trinidad Express Newspapers

NOT YET 40, Anthony Sabga III was yesterday appointed as the ANSA

McAL Group CEO, effective January 1, 2020, according to an

announcement on the conglomerate's website.

Sabga takes over the day-today running of the group, one of the largest

in Trinidad and Tobago.

Norman Sabga served as executive chairman of the group following the

death of the founder of the company, Anthony Sabga, in May 2017.

Anthony N Sabga was Norman's father and Anthony Sabga III's

grandfather.

Andrew Sabga, Norman's brother, has been appointed to the role of

deputy chairman of the ANSA McAL board.

In the statement, ANSA McAL said: 'The group makes these changes to

align its senior leadership team and structure with its long-term strategic

vision, that will maintain competitiveness and sustainability, while

expanding and diversifying its business portfolio.

These changes will also ensure that the level of agility necessary to

embrace and respond to the business opportunities in the region and

globally reside at the most senior executive levels of the group.'

Anthony Sabga III received a BSc in economics from City University in the

United Kingdom and a Master's in International Business Administration

from Regents Business School in Britain, which he completed in 2003.

He is currently the executive chairman of ANSA McAL's beverage sector

with operations in T& T, Grenada, St Kitts and Cape Canaveral in Florida.

Before his promotion, he was directly responsible for the strategic

development of the group's IT infrastructure as well as the introduction of

the Balanced Score Card and strategic management frameworks.

For the nine months period ending September 30, 2019, the group

reported a 2.7 per cent decline in its profit after tax, which totalled $442.4

million in 2019, compared with $454.8 million. The group's revenue

increased by 3.6 per cent in the January to September 2019, compared

with the year-earlier period.

ANSA McAL has four main segments: manufacturing; packaging and

beverage; financial services and media, retail and services.


CLICO Investment Fund gains $1 Tuesday 17th December, 2019 – Trinidad Express Newspapers

OVERALL market activity resulted from trading in 18 securities of which six

advanced, three declined and nine traded firm.

Trading activity on the First Tier Market registered a volume of 161,327

shares crossing the floor of the Exchange valued at $6,141,962.10. JMMB

Group Ltd was the volume leader with 57,466 shares changing hands for a

value of $160,154.80, followed by Republic Financial Holdings Ltd with a

volume of 27,863 shares being traded for $3,650,553. Scotiabank Trinidad

and Tobago Ltd contributed 24,075 shares with a value of $1,440,838.75,

while The West Indian Tobacco Company Ltd added 14,318 shares valued

at $609,169.70.

CLICO Investment Fund registered the day's largest gain, increasing $1 to

end the day at $27. Conversely, The West Indian Tobacco Company Ltd

registered the day's largest decline, falling $0.41 to close at $42.55.

On the Mutual Fund Market 1,050 shares changed hands for a value of

$17,100. Calypso Macro Index Fund was the most active security, with a

volume of 1,000 shares valued at $15,750. Calypso Macro Index Fund

remained at $15.75. CLICO Investment Fund advanced by $1 to end at

$27. Eppley Caribbean Property Fund Ltd SCC - Development Fund

remained at $0.67. Eppley Caribbean Property Fund Ltd SCC - Value Fund

remained at $1.70. Praetorian Property Mutual Fund remained at $3.05.

The Second Tier Market did not witness any activity. Mora Ven Holdings

Ltd (Suspended) remained at $12.


VI & Airbnb ink Hotel Accommodation Tax agreement Sunday 15th December, 2019 – Virgin Islands News Online

The Virgin Islands (VI) and booking service Airbnb have official inked

agreements for the voluntary collection of the Hotel Accommodation Tax

on transient occupancy.

This comes following an April 30, 2019 Cabinet decision where property

owners who lease their homes through AirBnB are now required to pay

hotel accommodation tax.

According to a GIS release, the agreement was signed on November 20,

2019, by the Premier and Minister of Finance, Honourable Andrew A. Fahie

(R1) on behalf of the Government while International Senior Tax Manager,

Mr Alan Maher signed on behalf of Airbnb.

“Your Government views Airbnb as a valuable part of our economic

landscape and contributing positively to the economy,” Premier Fahie

said during his 2020 budget presentation on November 19, 2019.

Tourism Sector Boost

Ahead of the agreement, Governor of the Virgin Islands, Mr Augustus J. U.

Jaspert during his November 14, 2019, "Speech from the Throne,' promised

that legislation will come with the aim of boosting revenues for the tourism

sector.

"On an immediate priority basis, our Government will give the tourism

sector the attention and level of priority it deserves and focus on

strengthening the accommodation sector, bringing new hotel investment,

and supporting the marine sector," he said.

GIS has since indicated that over 2,000 guests booked accommodation

through Airbnb between July 2017 and July 2018, with an average stay of

four days. Airbnb allows property owners to lease their home spaces or

accommodations to international travellers through a mobile application

available on several platforms.


PREMIER BANKS BOASTS OF WHOPPING BUDGET SURPLUS OF $30.73 MILLION Monday 16th December, 2019 – The Anguillian

For the first time in the history of Anguilla, the Government of the island has

been able to achieve a budget surplus that has enabled both the paying

off of substantial local debt, and provided an opportunity to finance a

number of projects and other needs in the public sector.

The achievement was announced in the House of Assembly on Tuesday,

December 10, by Premier and Minister of Finance, the Honourable Mr.

Victor Banks. Among other matters, as a result of the big budget surplus,

Government is in a position to repay longstanding salary deductions to

civil servants and staff of the statutory Health Authority of Anguilla.

Premier Banks disclosed the surplus while speaking during the second

reading of the Supplementary Appropriation Bill 2019 which he moved. His

address in the House began as follows:

“Mr. Speaker, in the earlier part of this year, the House of Assembly passed

an Appropriation Bill in the amount of $208, 361, 415, in estimated

Recurrent Revenue; and we estimated that Recurrent Expenditure would

be in the amount of $213,480,000.

“When Recurrent Expenditure exceeds the anticipated revenue, it means

that you are budgeting for a deficit – meaning that what you are

budgeting for, you are not going to be able to make, and you will have a

shortfall. In this case, the shortfall that was estimated was 5,118,685.”

Premier Banks continued: “Even though we budgeted for a deficit, we are

seeing, from the performance of the budget, that we are not going to

have a deficit of 5 million dollars, but rather a surplus of 30.73 million

dollars…We have in fact earned more than we are spending…Even

though we have 30 million dollars, estimated as a surplus, there are things

we would have put off in the past that we now find ourselves in a position

to respond to.

“That 30 million dollars, we are estimating, is not sitting in the Treasury

waiting to be spent but it are funds that we can now allocate towards

commitments that we have made – especially on the repayment of debt

or obligations to public servants; obligations to medical treatment

overseas; to statutory bodies; and obligations to cutting back on arrears.

So there are a whole host of issues that can be addressed.”

Mr. Banks outlined a number of areas in which a portion of the surplus

money will be spent as follows:

The Anguilla Community College: $516,000; medical treatment overseas: $

1,720,000; Customs Duty refunds: $400,000; Government of Anguilla

deferred salaries (25% owed at the end of October 2019): $1,845,814;

Anguilla Health Authority deferred salaries: $1,623,259; Anguilla Air and

Sea Ports Authority deferred salaries; $1,011,047; Equity contribution to the

Anguilla Development Board: $1,000,000; claims against the Government

of Anguilla: $500,000; Insurance to cover Government property and new

vehicles: $1,500,000; and grants and contributions (to include payments to

the Caribbean Tourism Organisation): $600,000. These payments total

$10,716,120.

Premier Banks stated that provision was also made for supplementary

capital expenditure as follows: land acquisition for the Blowing Point Port

Development: $ 3,502,725; land acquisition for road development (legacy

items): $400,000; and IT equipment: $533,539.

Meanwhile, other large amounts of the surplus funds have been

committed to various ministries and departments across the public

service. The list showing the distributions is available on the Government of

Anguilla’s website. The allocations, when added to the above payments

as disclosed by Premier Banks, amount to the 30.73 million dollars –the

2019 budget surplus he spoke about.

The Supplementary Budget Appropriation Bill 2019 received the full

support of all members who were present at the House of Assembly sitting.

Absent were the Leader of the Opposition, Ms. Palmavon Webster and

the Second Nominated Member, Mr. Paul Harrigan.


EU Disburses Third Education Tranche of EC$12,66M to Anguilla Monday 16th December, 2019 – The Anguillian

The Government of Anguilla is a step closer in the realisation of the

objectives of its Education Development Plan, following the release of the

third grant assistance tranche of EC$12.66 million (€4.25M) under the 11th

European Development Fund (EDF) Education and Training Sector Policy

Support Programme.

The disbursement comes on the heels of a recent mission to Anguilla by EU

Head of Delegation, Ambassador Daniela Tramacere, who commended

the Anguillan authorities on the continued progress in the implementation

of its Education Policy despite the lingering challenges resulting from the

damage inflicted by hurricane Irma in 2017.

During the mission, Ambassador Tramacere visited three Education

Facilities – the Morris Vanterpool Primary School, the Orealia Kelly Primary

School, and the Valley Primary School – and witnessed first-hand the

devastating impact Hurricane Irma had on the physical infrastructure of

these schools. In some cases, a number of the school blocks had to be

demolished or completely refurbished, leading to classes having to be

accommodated in the remaining blocks or at alternate facilities.

The Ambassador applauded both the Education officials and the strong

community spirit which has ensured that despite the physical constraints

of the current teaching and learning environment so severely

compromised, there remains an unwavering commitment and positive

attitude to moving forward and bringing the situation back to some form

of normalcy in the near future. She also expressed satisfaction in the

Government as it continues to show positive progress and commitment

towards prudent Public Financial Management (PFM) and good

Budgetary Transparency reforms.

The overall expected outcome of the education reform is for all children

to be able to complete seven years of quality primary education and five

years of an appropriate, quality secondary education, regardless of any

physical or intellectual disabilities.

The EU reaffirms its strong belief that supporting education is a solid

development investment and is confident that this programme will

contribute to the reconstruction of a quality educational system in

Anguilla that will be accessible, efficient, cost-effective, affordable and –

very important – also resilient.

The EU has provided development aid to Anguilla since 1976. The overall

programme budget for the current 11th EDF intervention is approximately

EC$45 million (€14.05M) until 2021, with EC$40 million (€12.6M) earmarked

for the education and training sector as budget support, and the

remainder EC$4.5 million (€1.45M) set aside for specific technical

assistance needs. Anguilla also benefits from EU assistance channelled

through the current EDF Caribbean regional programmes that amount to

approximately EUR58M.


Caribbean Helicopters workers say they are ‘beyond frustrated’ Tuesday 17th December, 2019 – Antigua Observer

Employees contracted by Caribbean Helicopters Limited (CHL) have said

they are tired of the non-action from their employers. The diverse group of

employees, some who have been employed to CHL for more than 10

years, explained that it is now nine months since they have been last paid.

They have been venting their frustration with the entire situation at CHL for

a while and now, and yesterday they told OBSERVER media that enough

is enough.

Abuse, neglect, fraud, negligence, dishonesty are some of the terms the

workers used to describe the action – or inaction in some cases – of the

leadership of CHL, by staff who have long passed a state of

disgruntlement.

They have hired a lawyer as a group, who has been liaising with a

worker’s union on their behalf. However, according to them, this action

has not proven very fruitful, as they are still just waiting aimlessly.

The staff members also claim that they have had to seek alternate jobs to

maintain their day-to-day lives, while still being legally employed by CHL.

This has had an adverse effect on their employment, and they are unable

to accept jobs at the airport due to their CHL affiliation.

They are also very displeased with several other issues that have arisen

over the course of the past few months.


Global Ports projects a windfall of US $1.9 million for the government Monday 16th December, 2019 – Antigua Observer

Global Ports Holding (GPH) Antigua has projected 2020 tourist arrivals to

be at 788,000.

In a record year, cruise tourist arrivals to the twin-island state totalled

792,873 passengers in 2018.

Though passenger arrivals are projected down, the Head of Finance at

GPH Antigua, Nadasta Hurst, said the company is projecting a total of US

$1.97 million to go directly to the Government of Antigua and Barbuda

(GOAB) by the end of 2020.

Of the rates being charged by GPH to the expected cruise tourists, US $1

will be charged per passenger as government head tax and US $1.50 per

passenger will be charged as environmental tax.

After last week Thursday’s official handover of the St John’s port

management to GPH, a number of questions have been asked by the

port’s various stakeholders as to their place and role in its new direction.

The handover of the port management left Heritage and Redcliffe quays

store and property owners, taxi operators, vendors and the existing St

John’s Development Corporation (SJDC) staff anxiously awaiting the

fulfilment of promises made by both the GOAB and GPH.

Seeking to allay some concerns, GPH Antigua General Manager, Dona

Regis, said that, “we’ve hired 22 local residents … while we’re global,

we’re certainly a very local company”.

“So what that means is that as we expand into markets, we ensure that

we understand the local culture, the way of the life of the people. We

understand the local norms, their way of doing business and we respect

that,” she added.

The general manager admitted that the conversations with the

stakeholders are still ongoing: “Naturally… when there is change… there

are always things [outstanding] that we have to work together on. But we

have committed on both sides to be open with each other and I think

that is the platform for success.”

At last week’s handover ceremony, GPH committed a number of

promises to include paying off a 20-year-old US $21 million debt at Antigua

Commercial Bank. The general manager along with GPH Antigua’s head

of finance, Nadasta Hurst confirmed that this bond has been paid in full.

Regis and Hurst also confirmed that GPH has taken over the financing the

fifth pier berth of up to US $30 million and that it will be completed for the

summer of 2020.

“So, the building of that fifth berth that can accommodate 5000-plus

passengers per call on a year-round basis,” Regis explained, “you do the

math. You can see how we can move from 700,000 to 1.5 million

passengers.”

As it pertains to GPH’s promise to upgrade the quay areas, Hurst said. “We

have started some minor upgrades; there are cruise ships in every day as

it is the season, so we are limited to what we can do. But we will, over the

next 10 to 12 months, be spending up to US $3 million to upgrade the

Heritage Quay complex.”


Aerodromes out west getting upgrades Monday 16th December, 2019 – Jamaica Gleaner

Transport Minister Robert Montague says the Airports Authority of Jamaica

(AAJ) has undertaken upgrading work at two aerodromes in St Elizabeth

and Westmoreland as part of an initiative to improve and expand

Jamaica’s aviation industry.

Speaking at last Thursday’s ground-breaking ceremony for the extension

of the runway at the Sangster International Airport in Montego Bay,

Montague said the projected work is to take place at the Lionel Densham

Aerodrome in St Elizabeth, and the Negril Aerodrome in Westmoreland.

“We’re moving now to step up the pace with general aviation, and

therefore the AAJ has undertaken a programme of upgrading our

aerodromes, which they’ve started by installing pilot lounges in all our

aerodromes. For the Lionel Densham Aerodrome, we’re supposed to do

an overlay on the runway, and we’re putting in some restrooms and a

waiting area because we’re determined to open up the south coast,”

said Montague.

“The Negril Aerodrome is getting some attention in terms of recovering the

runway in Negril, because one-third of the Negril runway is actually under

water, and we’re putting in a firehouse and an area where searches can

be done with decency and consideration,” Montague added.

Restoration underway

Thursday’s update follows an earlier announcement in March, where

Montague indicated that restoration work would take place at the Negril

Aerodrome after two major commercial airlines expressed interest in

operating commercial flights out of Negril.

Montague also praised the runway expansion project for the Sangster

International Airport as proof of Jamaica’s adherence to aviation safety

standards. The runway will be extended from 2,662 metres to 2,940 metres

in six construction phases at a cost of US$70 million (J$9,839,158,000).

“Since the privatisation of the Sangster International Airport in 2003,

Montego Bay Jamaica Airports Limited (which operates the airport) has

undertaken significant improvement works to the third-largest airport in

the region. As the transformation of the airport into a world-class facility

continues, it’s important to ensure that the airport’s continued

compliance with local and international standards for safety and aviation

security is at its highest level,” said Montague.

The Sangster Airport runway project will also see the installation of a jet-

blast screen to prevent damage or injury from jet engines’ high-energy

exhausts.


Fly Jamaica files for bankruptcy protection Sunday 15th December, 2019 – Jamaica Gleaner

Troubled airline Fly Jamaica is seeking protection from creditors as it tries

to restructure and stay in business or explore other options, such as a sale.

That filing for bankruptcy protection with the Office of Insolvency was

done on October 29, according to Marlon Murdock, the agent for Fly

Jamaica trustee Wilfred Baghaloo.

It follows the unravelling of a nascent deal over the summer with a group

of investors seeking to acquire the airline from founder Paul Reece.

Murdock told the Financial Gleaner that Fly Jamaica is preparing a

proposal for creditors to vote on, which was preceded by a ‘Notice of

Intention’ in the press.

“The process now is that since Fly Jamaica has filed a notice of intention,

they had an initial 30 days to put together a proposal that they were

going to present to creditors, who will then vote on it so that they can

either accept or reject,” the agent said.

‘They’ve been given an extension for that initial 30 days so the new date

will be January 14, 2020,” Murdock added.

So far, Fly Jamaica has presented a list of 259 creditors, who are owed

US$21.86 million ($2.9 billion).

Murdock says the current list is not exhaustive and that the trustee is still

receiving claims from creditors not on the current roll. He is encouraging

all creditors to come forward for a clear picture of the carrier’s

indebtedness.

“What we were given by the company is a list of creditors that were in

existence on the day the company filed. What we want is for those who

are creditors to submit claims against the company, and they can do

that by emailing me,” said Murdock. He and Baghaloo work with

PricewaterhouseCoopers Jamaica.

Fly Jamaica has been grounded for just over two years. Since a plane

incident in November 2017 when the lone operational Fly Jamaica

airplane – a Boeing 757 en route to Toronto from Guyana – skidded off the

runway as the pilot attempted an emergency landing at the Cheddi

Jagan International Airport, the damaged plane has been languishing at

a remote section of the airfield.

Prospective buyers of the airline, headed by French acquisition and

diversified firm W&L SAS, initially said they planned to get the airline flying

again by September, which appeared to be a long shot, given that

approvals were needed from the Jamaica Civil Aviation Authority to

achieve that goal.

That deal is no longer in play.

Murdock says Reece contacted the team at PwC to say that the

prospective buyers were having difficulties completing the transaction,

and that Fly Jamaica’s debts were piling up in the meantime.

“They weren’t operating so there was no revenue coming in; so they

needed some time to put together a proposal,” Murdock said.

“Since they had the accident in Guyana they had a class action suit that

was about to be filed against them, so they realised that they needed the

time to get something done,” he said of the urgency.

Murdock says if things were allowed to progress, the value residing in the

company would likely continue to erode to the detriment of some

creditors, when the holdings were eventually liquidated.

“Most likely, the creditors would end up getting less than they would get

that if the company had time to put together a proposal which would

likely include finding new investors to pump some funds into the

company,” Murdock said.

“Recognising that they needed that time to put together that proposal –

and they asked us to act as trustees – our role is really to guide in helping

them to prepare the proposal and to assist them when they have to

negotiate with investors,” Murdock said.

He adds that if the airline is to fly again, it will need new capital injection.


Utility companies pay out over $34 million for service breaches Friday 13th December, 2019 – Jamaica Gleaner

Utility companies paid out over $34 million for service breaches between

July and September.

The amount was paid out as a result of breaches of the Guaranteed

Standards and actions taken on behalf of customers by the Office of

Utilities Regulation (OUR).

The data, contained in the OUR’s 2019 July – September Quarterly

Performance Report, indicate that for the period, the Jamaica Public

Service Company Limited (JPS) paid out approximately $33.4 million and

the National Water Commission (NWC) $464,760 for breaches of the

Guaranteed Standards.

The OUR says the sum of $227,432 was secured for utility customers

through action taken by its Consumer Affairs Unit.

Of this, JPS accounted for the highest share of 74%, while Columbus

Communications (Flow) and C&WJ accounted for 16% and 10%

respectively.

JPS’s compliance report on its Guaranteed Standards performance

indicates that 16,261 breaches were committed, representing a 5%

decrease in the number of breaches compared to the preceding quarter.

The OUR says these breaches attracted compensatory payments of

approximately $33.4 million, all of which were made through automatic

compensation.

The Guaranteed Standards regarding: Estimated Bills (which restricts JPS

from sending more than two consecutive estimates without a penalty);

Connection to Supply (which prescribes the time within which JPS is to

make a simple connection); and Reconnection (which requires that JPS

restores supply within 24 hours of payment of overdue amounts)

accounted for approximately 99% of breaches and payments.

During the quarter, NWC reported that it paid out $464,760 for breaches

of the Guaranteed Standards.

The NWC’s compliance report on its Guaranteed Standards performance

indicates that a total of 659 breaches were committed, which represents

a 70% increase.

These breaches had a potential pay-out of approximately $1.8 million

while actual payments amounted to $464,760.

The actual payments represented 21% of the total potential payments

and were made by way of automatic credits to the affected accounts.

The remaining 79% of potential payments not made, were for breaches

for which the required claim forms were not submitted.

The standards with the highest incidents of breaches for the NWC were:

Access (which requires that new service connections are made within 10

working days); Meter Installation (which stipulates that meters should be

installed within 30 working days upon request) and Meter Reading (which

stipulates that meters are to be repaired/replaced within 20 working days

of identified or reported defects).

These three standards represented 79% of total breaches and 78% of

potential payments.


JSE Market Summary Tuesday 17th December, 2019 – Jamaica Gleaner

In Monday ‘s trading session the following reflect the movement of the JSE

Indices:

The JSE Combined Index advanced by 2,246.83 points (0.45%) to close at

501,243.15.

The JSE Index advanced by 2,373.62 points (0.47%) to close at 504,792.38.

The JSE All Jamaican Composite Index advanced by 2,789.02 points

(0.51%) to close at 554,585.11.

The JSE Select Index advanced by 59.84 points (0.46%) to close at

13,033.54.

The JSE Cross Listed Index declined by 8.00 points (8.38%) to close at 87.45.

The Junior Market Index advanced by 6.03 points (0.18%) to close at

3,412.43.

The JSE USD Equities Index advanced by 5.09 points (2.34%) to close at

222.51.

The JSE Financial Index advanced by 0.74 points (0.54%) to close at

136.67.

The JSE Manufacturing & Distribution Index advanced by 0.16 points

(0.16%) to close at 97.79.

Overall market activity resulted from trading in 93 stocks of which 29

advanced, 28 declined and 36 traded firm.

Market volume amounted to 59,185,912 units valued at over

$2,189,584,992.88. MAILPAC GROUP LIMITED was the volume leader with

33,220,659 units (56.13%) followed by NCB FINANCIAL GROUP LIMITED with

8,065,181 units (13.63%) and CARIBBEAN CEMENT COMPANY LTD. with

5,257,837 units (8.88%).


Trelawny residents benefiting from major JPS work Sunday 15th December, 2019 – Jamaica Observer

Residents of Trelawny are now benefiting from major infrastructural work

done on the Jamaica Public Service (JPS) network in the parish, the

company has said.

Since the start of the year, 71 poles have been replaced while 639 poles

have been rehabilitated. The company has also changed out 912 pieces

of equipment and installed 197 lightning arrestors.

The announcement was made by president and CEO of JPS, Emanuel

DaRosa, at a town hall meeting last Thursday evening in Falmouth. The

meeting was hosted by the Ministry of Local Government and Community

Development, in collaboration with the Office of Disaster Preparedness

and Emergency Management.

Pole rehabilitation is a process which sees ageing poles being fortified with

steel and iron reinforcements, to give them another 15 to 20 years of life.

The process is highly cost effective and ensures that service delivery will

not be compromised by weakened or substandard poles.

Communities benefiting from the 639 pole rehabilitation exercise include

Falmouth, Ulster Spring, Deeside, Jackson Town, Alpha, Greenwood and

Hammersmith.

Lightning arrestors, a critical element in the protection of the JPS network,

have been installed since the start of the year in Jackson Town, Sherwood,

Greenwood, Fontabel and Reserve in the parish. Lightning arrestors assist

in mitigating the damaging effects of lightning storms on the network, thus

reducing the number of outages due to this weather phenomenon.

The company said that it remains committed to ongoing improvements in

the network and customer service, as it seeks to deliver the highest

standard of customer care across the island.


Barbados passes another IMF test, gets access to more funds Monday 16th December, 2019 – Nation News

Barbados has passed its latest International Monetary Fund (IMF) test with

flying colours, in the process impressing the directors of the fund, and

opening up for itself access to almost $100 million from the Washington-

based institution.

However, it was the comment of the directors of the IMF as they reviewed

the progress on the island’s Barbados Economic Recovery and

Transformation (BERT) programme that was most heartening.

According to the directors, in spite of its limited technical capacity,

Barbados has made impressive progress towards achieving fiscal and

debt sustainability, rebuilding reserves, reducing uncertainty towards

generating growth.

This development was explained by Dr Kevin Greenidge, Government’s

economic advisor on loan from the IMF, who noted that today the

Executive Board of the IMF completed the second review of our BERT

programme which is supported by an IMF Extended Fund Facility (EFF).

The completion of this review allows us to draw the equivalent of SDR 35

million (about US$98 million).

“This passing of the second review reflects Barbados meeting all its targets

under the BERT programme and in some instances, with a wide margin.

There were lots of praise from the Directors at the Board....

“Of course, there is significant work to be done, and we remain resolved

to stay the course and continue meeting our commitments under the EFF.

“Passing yet another IMF review, completing the debt restructuring and

having our credit ratings upgraded are all sending an important message

to the world – that Barbados is back; we are serious about our reforms

and about transforming the economy,” Greenidge said.


ANSA takes over Trident Monday 16th December, 2019 – Barbados Today

After months of negotiations, ANSA McAL (Barbados Limited) has

purchased the shares of Trident Insurance Company Limited.

Chairman of ANSA McAL Andrew N. Sagba made the announcement in

a statement issued today, saying the Trinidad and Tobago conglomerate

was delighted to welcome Trident Insurance into the wider ANSA McAL

family which comprises 73 companies in more than eight countries.

It is not clear whether the sale of Trident Insurance will affect the staff

complement there. Sabga only offered assurances to policyholders in the

statement, saying “Trident insurance would continue to conduct business

as usual”.

Back in June, David Alleyne, General Manager of Brydens Insurance,

which is a branch of the ANSA McAL-owned Tatil Insurance Company in

Trinidad and Tobago, told Barbados TODAY, that the companies had

come to an agreement to join forces to create a stronger, focused entity.

At today’s signing, President and CEO of Trident Insurance Algernon Algie

Leacock said the resources of the ANSA McAL conglomerate would

enable Trident Insurance “to better support the evolving needs of our

policyholders, and to remain a strong player in this fast-paced and

aggressive financial environment”.

“We are therefore extremely pleased to accept this offer,” he added.

Leacock also revealed that the deal paves the way for the Leacock

family and Group to pursue “other business opportunities which are a

better strategic fit to their existing businesses and future expansion plans”.

The over 39-year-old Trident Insurance Company offers a range of

products including property, motor, travel, liability and marine insurance. It

is in the top ten of insurers in Barbados, based on gross written premiums.


New panel in place for credit union mediation Monday 16th December, 2019 – Barbados Today

Members of co-operative societies now have a new arbitration body to

address their claims and disputes.

Minister of Small Business Entrepreneurship and Commerce Dwight

Sutherland announced at his Warrens Office today that the Co-operative

Societies Appeals Tribunal under the Co-operative Societies Act Cap.378A

has been launched and will be made up of three members.

He introduced veteran attorney-at-law Anthony Reece as Chairman,

active member of the Credit Union Movement Hally Haynes as Deputy

Chairman, while Operations Manager of the Barbados Teacher’s Co-

operative Credit Union Limited Davidson Ishmael will serve as a member.

Sutherland, who indicated that the tribunal will have jurisdiction to hear

appeals against the decision of the Registrar of Co-operatives Brent

Gittens or an arbitrator, explained that the department regulates and

supervises 25 non-financial co-operatives and also has oversight of 39

friendly societies co-operators.

“Within all businesses you will have challenges. The tribunal is here as a key

cog in building out co-operatives successfully to ensure that any

challenges will be dealt with outside the court of law. Members within the

co-operatives from time to time may have challenges and of course Mr

Gittens, once he comes up with a decision those members within the co-

operatives may not agree with the decision of the Registrar of the Co-

operatives and they have a right to go to arbitration. That body is the co-

operatives tribunal,” he said.

“We have making up the tribunal experienced persons who the

Government feels are fitting to lead any arbitration or any dispute that will

arise from time to time among the members of the co-operatives. And I

want to thank these members publicly for accepting the offer on behalf

of the Cabinet of Barbados,” Sutherland added.

The Minister said the model was critical to Government’s mandate to

building out the economy.

He said the co-operative business model has proven that it was a great

platform for creating wealth that was owned and controlled by the

masses. This, he added, is demonstrated by the existence of financial co-

operatives with an estimated asset base of $2.4 billion, a membership

base of over 200,000 and well over 500 employees.

“Since this Government came to office, having seen six non-financial

credit unions formed, I am confident that the whole people centred

approach to wealth creation will be managed effectively and efficiently

by these members, both the registrar and the tribunal,” he said.


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