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▪ Eastern Credit Union’s rating downgraded to CariBBB-
▪ Government of the British Virgin Islands’ rating reaffirmed at CariAA-
▪ Republic Bank Limited’s rating reaffirmed at CariAA+
▪ The Pegasus Hotels of Guyana Limited’s initial rating assigned at CariBBB-
▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA
▪ NCB Capital Markets Limited’s initial issue rating assigned at CariBBB-
▪ Government of Barbados rating downgraded to CariBBB-
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB
▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+
▪ Gulf City Limited’s rating reaffirmed at CariA+
▪ National Flour Mills Limited’s rating reaffirmed to CariA-
▪ Telecommunications Services of Trinidad and Tobago Limited’s rating reaffirmed to CariA
▪ Colonial Fire and General Insurance Company Limited’s initial rating assigned at CariA
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REGIONAL
Trinidad and Tobago
Declines in all three TTSE Indices
Overall market activity resulted from trading in 12 securities of which one
advanced, four declined and seven traded firm.
Increases in revenue, income and equity for Sagicor
Against a backdrop of contrasting regional and international economic
conditions, the Sagicor Group achieved improvements in revenue, net
income and equity for the 2017 financial year.
OCM declares 2017 results: $72.4m profit before tax
One Caribbean Media (OCM) has recorded a profit before tax of $72.4
million for the financial year ended December 31, 2017.
Toyota focuses on smaller, economic vehicles
With a challenging economic climate and the removal of the fuel subsidy,
one of the leading car importers in Trinidad and Tobago is focusing on
smaller, fuel-efficient vehicles.
Delinquent loans stay in single digits
Two local banks say the number of delinquent loans has stayed in the
single-digit range even with the slowdown in the T&T economy.
Barbados
Long-term fix needed
The Congress of Trade Unions and Staff Associations of Barbados (CTUSAB)
calls attention to the tireless and relentless efforts of employees of the
Barbados Water Authority (BWA), Ministry of Health and other public-
sector agencies to alleviate the suffering and inconvenience caused by
the sewage spills and resultant odours on the South Coast.
Jamaica
Red Stripe wins new Monde Selection award
Monde Selection has given another stamp of approval to Red Stripe for
the quality of its beer.
Jamaica continued
Jamaica remains largest Caribbean supplier of ganja to US
Four Caribbean Community (Caricom) countries have been named by
the United States as major illicit drug-producing countries.
Shaw targets reduced onion imports
Industry, Commerce, Agriculture and Fisheries Minister Audley Shaw says
efforts must be made to reduce the percentage of onions being imported
for domestic consumption.
Shareholders Approve Seprod Share Increase
Shareholders at an extraordinary general meeting on Monday voted to
increase Seprod’s authorized capital by 250 million ordinary shares. That is
a nearly 50 per cent increase on the 516.97 million units outstanding
Guyana
Lopsided contract between Guyana, Exxon catches Bloomberg attention
“The government could consider issuing a temporary moratorium on new
licensing until a new fiscal regime is in place,” – IMF
Anguilla
The Reef reopens bringing more visitors to Anguilla
The Reef by CuisinArt reopened on Sunday, April 1, some eight months
after Hurricane Irma struck Anguilla on September 6, 2017 and setback
much of the island’s tourism accommodation facilities.
Antigua and Barbuda
Postal workers heading back to work
Postal workers at the General Post Office are going back to work to
address the backlog of mail and parcels that have gone undelivered for
weeks.
The Bahamas
WTO to 'Move the Needle' On Business Ease
The Bahamas' chief negotiator says joining the WTO can help solve this
nation's 'ease of doing business' woes, arguing: "We must move the
needle on new industries."
Belize
A Private Island in Belize to be Developed to Welcome Visitors in 2021
Four Seasons Hotels and Resorts announced plans for the development of
Caye Chapel, a private island in Belize featuring oceanfront estates,
private residences and overwater bungalows. Scheduled to open in 2021,
the project is in in partnership with Thor Urbana, Inmobilia Desarrollos and
GFA Grupo Inmobiliario, three leading real estate development groups
based in Mexico.
St. Kitts and Nevis
Prime Minister Harris promoting St. Kitts and Nevis’ CBI Programme in the
Middle East
St. Kitts and Nevis’ Prime Minister, Dr the Honourable Timothy Harris, is
leading a high-level delegation on a tour to promote the Federation’s
Citizenship by Investment (CBI) Programme in the Middle East.
Panama
Air China makes Panama bow, Copa hit by Venezuela
Last week saw Copa Airlines gain international recognition for its
punctuality record and get hit by a block on the company’s flights to
Venezuela, stranding sports teams, businessmen, and people seeking
medical treatment. and even leading to the cancelation of regional
football (soccer) fixtures.
Cuba
Carnival Adds 20 Cruises to Cuba
Carnival Cruise Line has added another 20 voyages to Cuba aboard
Carnival Paradise from Tampa, Florida, next year, complementing the 11
cruises to the island taking place aboard the vessel through next year.
St. Vincent and the Grenadines
New Public Service Negotiating Team Named
The Ministry of the Cabinet Office with Responsibility for Government
Reform has announced the appointment of Jonathan Smith, Vincent
Hollinsid, and Orin Simmons as the Government’s new Public Service
Negotiating Team [PSNT].
Other Regional
Catastrophe insurance facility to scale up to meet the region’s needs
On March 19, 2018, CCRIF SPC hosted a stakeholder retreat in Miami, as
part of its tenth anniversary celebrations to bring together representatives
from member countries, regional organizations and international
development partners to help define the facility’s strategic direction to
2030 and determine how CCRIF can further support the countries in the
region.
China assures Caribbean amid jitters over looming trade war with US
China has assured governments of the Community of Latin American and
Caribbean States (CELAC), which have been keeping a close watch on
the deepening trade row between that Asian country and the United
States, that the Chinese Government will not harm their economic ties.
INTERNATIONAL
United States
U.S. stock futures rise as Xi cools trade war fears
U.S. stock index futures rose more than a percent on Tuesday after
Chinese President Xi Jinping promised to cut import tariffs, soothing
investor concerns about rising U.S.-China trade tensions.
NY Fed evaluating published SOFR rates after feedback
The New York Federal Reserve on Tuesday said that it is evaluating data
used to determine its new Secured Overnight Financing Rate (SOFR), after
receiving feedback that volumes in bilateral repurchase agreements
(repo) backing the rate were higher than some had expected.
United Kingdom
Sterling basks at 2-week highs but risks grow
Sterling hit a two-week high on Tuesday as firm risk appetite and a top
policymaker’s comment that the Bank of England should not delay an
interest rate hike boosted bets in a market that is already long in the British
currency.
Europe
Russian sanctions dent European share recovery
Further U.S. sanctions on Russian interests hit Europe-listed stocks on
Monday, denting a recovery as investors became more hopeful a trade
war between the United States and China could be averted.
China
China's Xi renews pledges to open economy, cut tariffs this year as U.S.
trade row deepens
Chinese President Xi Jinping promised on Tuesday to open the country’s
economy further and lower import tariffs on products including cars, in a
speech seen as an attempt to defuse an escalating trade dispute with
the United States.
Chinese investment into U.S. slumps in 2017 on policy changes
Chinese investment in the United States fell more than a third last year to
$29 billion from a record $46 billion in 2016, the first major correction in a
decade, a report by the Rhodium Group and the National Committee on
U.S.-China Relations showed.
Japan
Nikkei climbs to near 1-month high after Xi's speech lifts mood,
automakers
Japanese stocks rose to a near one-month high on Tuesday, led by
automakers after Chinese President Xi Jinping promised to lower import
tariffs on products including cars, indirectly addressing some of the U.S.
concerns that have sparked a trade row between the world’s two biggest
economies.
Global
Dollar dips to two-week lows on Xi comments; euro jumps
The dollar dipped to a two-week low against a basket of currencies on
Tuesday after Chinese President Xi Jinping’s promise to cut import tariffs
eased concerns about a trade conflict.
Stocks gain as Xi calms U.S.-China trade fears; ruble tanks
Global equity markets rallied and the Japanese yen fell on Tuesday as
Chinese President Xi Jinping’s promise to cut import tariffs eased investor
concerns about an escalating U.S.-China trade row.
Global continued
Oil breaks above $70 a barrel as shadow of trade war recedes
Oil broke above $70 a barrel on Tuesday, extending strong gains from the
previous day, as investors grew more optimistic that a trade dispute
between the United States and China may be resolved without greater
damage to the global economy.
Long-term fix needed Tuesday 10th April, 2018 – Barbados Today
The Congress of Trade Unions and Staff Associations of Barbados (CTUSAB)
calls attention to the tireless and relentless efforts of employees of the
Barbados Water Authority (BWA), Ministry of Health and other public-
sector agencies to alleviate the suffering and inconvenience caused by
the sewage spills and resultant odours on the South Coast.
As the South Coast sewage issue continues to engage the attention of the
nation, CTUSAB commends the management of the BWA on its ongoing
efforts to find a solution.
CTUSAB understands the severity of the impact which the sewage
problem has on South Coast businesses, as it contributes to substantial loss
of revenue to both owners and suppliers.
It is the Congress’ view that should the problem of the sewage spills and
pollution of the environment on the South Coast remain unresolved, this
will continue to result in the laying off of workers. It will also lead to some
employees experiencing a reduction in their take-home pay as a direct
consequence of reduced hours of work.
Given that the prevailing environmental issues can pose a threat to the
health of residents and workers, as well as contribute to reduced levels of
worker productivity, CTUSAB urges the authorities to continue to work
aggressively towards finding a long-term solution to the South Coast
sewage problem.
<< Back to news headlines >>
New Public Service Negotiating Team Named Friday 6th April, 2018 – Bernews
The Ministry of the Cabinet Office with Responsibility for Government
Reform has announced the appointment of Jonathan Smith, Vincent
Hollinsid, and Orin Simmons as the Government’s new Public Service
Negotiating Team [PSNT].
“The PSNT will be responsible for leading future union negotiations,” the
Ministry said.
“To date, Government has completed negotiations with the Bermuda
Public Services Union [BPSU], the Fire Services Association [FSA], the
Bermuda Industrial Union [BIU], and interim agreements with the Bermuda
Union of Teachers [BUT] and the School Principals who are represented by
the Bermuda Public Services Union.
“Negotiations with the Prison Officers Association [POA] and the Bermuda
Police Association [BPA] are currently in progress.
Minister of Cabinet Office with Responsibility for Government Reform
Lovitta Foggo said, “I wish to acknowledge the dedication and
commitment of the outgoing Public-Sector Negotiation Team – Gary
Phillips, Martin Law and John Harvey.
“We are thankful for their hard work in guiding the negotiations to a
conclusion. Their work verified for this Government that the application of
a negotiations’ model that relies on non-Union members to represent the
Government’s interest is a reasonable approach.”
The Minister continued, “We are grateful to have the services of Mr. Smith,
Mr. Hollinsid, and Mr. Simmons. They each have a wealth of knowledge
and negotiations experience. We very much look forward to seeing the
positive results of their engagement with our unions.
“This Government remains committed to engendering a respect for the
workers in the public service. In that regard, we will continue to work with
our unions to cultivate improved organizational performance, which will
ultimately benefit the Government, the employees, and by extension the
people of Bermuda.”
Update 2.32pm: Shadow Government Reform Michael Dunkley said,
“Thank you to Gary Phillips, John Harvey and Martin Law for their
dedication and progress in this important matter.
“I note that negotiations continue with the Prison Officers Association and
the Bermuda Police Association.
“I would have expected in announcing the new negotiating team the
Minister would have provided a detailed update on the current state of
affairs.
“I quote the Minister when in thanking the prior team she remarked…” We
are thankful for their hard work in guiding the negotiations to a
conclusion.” Clearly that is not the case as the POA and BPA negotiations
remain in progress. But if they are concluded as the statement says then
why the need for a new team?
“In addition, what is the mandate and terms of reference for the new
team? How much will they be paid and what is the length of the
appointment? What are the terms of any settlements reached? Has any
harmonization been reached amongst various union agreements?
“Providing these answers allows accountability and transparency which
this government always talks about.”
<< Back to news headlines >>
Carnival Adds 20 Cruises To Cuba Monday 9th April, 2018 – Caribbean News Now
Carnival Cruise Line has added another 20 voyages to Cuba aboard
Carnival Paradise from Tampa, Florida, next year, complementing the 11
cruises to the island taking place aboard the vessel through next year.
The new voyages aboard Carnival Paradise are in addition to the 17
recently announced Cuba cruises aboard Carnival Sensation departing
from Miami in 2019, indicating that more and more travellers view cruising
as a great way to experience the destination.
“Our Cuba cruises have been met with phenomenal guest response since
we began sailing to the island last year and we’re thrilled to add yet
another 20 voyages to this fascinating and sought-after destination,” said
Christine Duffy, president of Carnival Cruise Line.
The newly added five-day voyages on Carnival Paradise will depart
Tampa on Saturdays and feature a day-long or a full day and overnight
call in the Cuban capital of Havana, along with stops at tropical
destinations Key West and Cozumel.
Carnival Paradise’s new Cuba cruise schedule includes:
10, five-day cruises overnighting in Havana with a visit to Key West –
departing March 2, April 13, May 25, June 22, July 6, Aug. 3 and 17, Sept.
14 and 28 and Oct. 26, 2019;
Six, five-day voyages featuring a day-long call in Havana and a visit to
Cozumel – departure dates include Jan. 5, March 16, May 11, Aug. 31,
Nov. 9 and Dec. 7, 2019;
Four, five-day sailings featuring day-long calls to Havana, Key West and
Cozumel – departing Feb. 16, June 8, July 20and Oct. 12, 2019.
Guests sailing on Carnival’s Cuba cruises can select from nearly 20
different shore excursion experiences that showcase the island’s vibrant
culture, majestic beauty and centuries-old architectural landmarks. A
variety of Cuban-themed activities and entertainment, Havana-inspired
deck parties, trivia contests and salsa lessons, are also offered. Also
onboard is a Cuba expert who discusses the country’s rich history and
culture.
Carnival Paradise completed an extensive, multi-million-dollar
refurbishment last month that added a spectacular water park, 38 new
cabins, 98 balconies to existing staterooms, and a host of exciting food
and beverage concepts.
New spaces include Guy’s Burger Joint developed in tandem with Food
Network star Guy Fieri, the poolside RedFrog Rum Bar and Blue Iguana
Tequila Bar, the BlueIguana Cantina Mexican eatery, a new Camp
Ocean marine-themed play area, a nine-hole miniature golf course, a
Pixels-branded digital photo platform and enhanced retail offerings
including boutiques from Pandora and Guess.
<< Back to news headlines >>
Red Stripe wins new Monde Selection award Tuesday 10th April, 2018 – Jamaica Observer
Monde Selection has given another stamp of approval to Red Stripe for
the quality of its beer.
The local brewing giant has been invited to the 2018 World Quality
Selections scheduled for May in Spain to receive a Silver Quality Award.
This is Red Stripe's 12th Monde Selection award.
Created in 1961, Monde Selection is an annual, non-competitive award
for food, drinks, and cosmetics products.
“No matter how many times you are recognised at this level, it still gives
you a great feeling of pride. And that's what Red Stripe represents for us —
Jamaican pride in a bottle, and the Monde award simply means the
world knows it,” said Nasha-Monique Douglas, Red Stripe senior brand
manager, in a release from the company.
As Desnoes and Geddes (D&G) celebrates 100 years of operations in
2018, Douglas contends that the Monde Award is a testament to the
consistent quality of the company's flagship beer.
“We seek and receive continuous feedback from the public and other
stakeholders in the brewing industry. In addition to consumer insight, our
beer is brewed to very specific standards that ensure we stay true to what
our consumers expect from the 'Great Jamaican Beer',” explained
Douglas. “This award is not just about validation, but it marks an
accomplishment of our passion for a brand that represents a people and
a culture.” Red Stripe was first brewed in 1928, 10 years after D&G was
formed.
The evaluation of beer by Monde Selection is conducted through the
collaboration of 70 international experts who taste and individually
evaluate and score the beers. Once brews succeed the jury's evaluation,
scores are added up and averaged, and brands awarded with a bronze,
silver, gold or grand gold quality award.
<< Back to news headlines >>
Jamaica remains largest Caribbean supplier of ganja to US Tuesday 10th April, 2018 – Jamaica Observer
Four Caribbean Community (Caricom) countries have been named by
the United States as major illicit drug-producing countries.
In its 2018 International Narcotics Control Strategy Report, the State
Department noted that the Bahamas, Belize, Haiti and Jamaica were also
described as major drug-transit countries.
According to Washington, a major illicit drug-producing country is one in
which 1,000 hectares or more of illicit opium poppy is cultivated or
harvested during a year; 1,000 hectares or more of illicit coca is cultivated
or harvested during a year; or 5,000 hectares or more of illicit cannabis is
cultivated or harvested during a year.
The report noted that Jamaica remains the largest Caribbean supplier of
marijuana to the United States and the Caribbean islands.
“Although cocaine and synthetic drugs are not produced locally,
Jamaica is a transit point for drugs trafficked from South America to North
America and other international markets,” the report noted, stating that in
2016, drug production and trafficking were enabled and accompanied
by organised crime, domestic and international gang activity, and police
and government corruption.
“Illicit drugs are also a means of exchange for illegally trafficked firearms
entering the country, exacerbating Jamaica's security situation,” the
report stated.
It said that drugs flow from and through Jamaica by maritime
conveyance, air freight, human couriers, and private aircraft.
“Marijuana and cocaine are trafficked from and through Jamaica into
other Caribbean nations, the United States, Canada, and the United
Kingdom. Jamaica is a transit point for cocaine moving from Central
America to the United States, and some drug trafficking organisations
exchange Jamaican marijuana for cocaine.”
The report noted that factors that contribute to drug trafficking include
the country's convenient geographic position as a waypoint for illicit drugs
trafficked from Latin America include its lengthy, rugged, and difficult-to-
patrol coastline; a high volume of tourist travel and airline traffic; its status
as a major transhipment hub for maritime containerised cargo as well as
inadequate educational and employment opportunities for at-risk youth
who engage in crime and a struggling economy that encourages
marijuana cultivation in rural areas.
The report noted that while the government and law enforcement
authorities are committed to combating narcotics and illicit trafficking
“their efforts were only moderately effective in 2016 because of
insufficient resources, corruption, an inefficient criminal justice system, and
the inability of lawmakers to adopt meaningful legislation to combat
corruption.
“In 2015, legislation to decriminalise the possession and use of small
amounts of marijuana for personal use (including religious purposes) went
into effect.”
The State Department also named Belize as the lone Caricom country
identified as a major source of precursor or essential chemicals used in the
production of illicit narcotics.
Regarding money laundering, Washington named all the15-member
Caricom countries “whose financial institutions engage in currency
transactions involving significant amounts of proceeds from international
narcotics trafficking”.
But it acknowledged that the “complex nature of money laundering
transactions today makes it difficult in many cases to distinguish the
proceeds of narcotics trafficking from the proceeds of other serious crime.
Moreover, financial institutions engaging in transactions involving
significant amounts of proceeds of other serious crime are vulnerable to
narcotics-related money laundering”.
Washington said that this year's list of major money laundering countries
“recognises this relationship by including all countries and other
jurisdictions, whose financial institutions engage in transactions involving
significant amounts of proceeds from all serious crime”.
<< Back to news headlines >>
Shaw targets reduced onion imports Monday 9th April, 2018 – Jamaica Observer
Industry, Commerce, Agriculture and Fisheries Minister Audley Shaw says
efforts must be made to reduce the percentage of onions being imported
for domestic consumption.
It is a call to which the Caribbean Broilers Group is responding through its
Crop Division subsidiary, Imagination Farms, situated at Hill Run, St
Catherine, where it has 12 of over 400 acres of land under onion
cultivation.
Data provided by the Caribbean Broilers, more popularly known for meat
production, indicate that over the past five years, domestic onion
consumption soared to 10 million kilogrammes per annum, of which
imports accounted for approximately 85 per cent.
Against this background, Shaw emphasised that “we have to begin to
chip away at that (85) percentage”, through increased domestic
cultivation.
He was speaking with journalists following a tour of Imagination Farms last
Friday.
Caribbean Broilers Group Operations Manager Don McGlashan told JIS
News that the entity is seeking to produce enough onions from the 12
acres under cultivation to contribute to reducing imports by an initial 10
per cent, with a view to increasing this to 50 per cent over the next five
years.
Noting that the Mercedes and Polaris varieties of onions are currently
grown at the farms, McGlashan said the entity wants to contribute to
reducing the ratio of imports.
“We (Jamaica) are importing about nine million kilogrammes and we
want to be a part of the process to arrest this situation. We have started
on a good road. Our yields have been good and at the end of the
harvest in another 10 days, we should be doing as well as anybody in first
world countries,” McGlashan added.
Meanwhile, Shaw reiterated plans to put vast acreages of unused arable
lands, particularly at sugar estates in Monymusk, Clarendon and Bernard
Lodge, St Catherine, under production.
“Right now, Monymusk only uses about 6,000 acres of land, which is in
cane production. When we improve the conditions there, by getting more
small, medium and large farmers [involved in] producing cane, we're…
going to need about 15,000 acres,” he said.
The minister also reiterated that over 20,000 acres of land are going to be
available for lease and sale.
“We're going to put them in the hands of serious people who are going to
plant (crops, and from these,) process and use what we can locally (for
general consumption) and in the tourism industry,” he added.
Meanwhile, Shaw underscored the need to boost the ratio of domestic
crops consumed within the hospitality sector, which he said totals five per
cent.
The minister said against the background of inputs from stakeholders, such
as the Caribbean Broilers Group, he is optimistic of a turnaround in this
regard.
In addition to onions, Imagination Farms also cultivates scotch bonnet
peppers, sorrel, sweet corn and West Indies Sea Island Cotton.
They are also working with value-added processors to provide them with
produce and to enter into long-term contracts for supplies.
Caribbean Broilers' management anticipate that, similar to its livestock
operation, they can partner with small farmers to provide them with
access to research inputs and engage them as independent contract
growers.
<< Back to news headlines >>
Shareholders Approve Seprod Share Increase Monday 9th April, 2018 – Jamaica Gleaner
Shareholders at an extraordinary general meeting on Monday voted to
increase Seprod’s authorized capital by 250 million ordinary shares. That is
a nearly 50 per cent increase on the 516.97 million units outstanding
Seprod closed trading last Friday at $35.63 for a total market value of
$18.4 billion.
The increase is a necessary first step in Seprod’s bid to buy 100 per cent of
Facey Commodity's Consumer division. A portion of the new shares will be
issued to Musson's subsidiary, Facey Group Limited as part payment for
Facey Consumer.
Seprod CEO Richard Pandohie says Facey Group will receive a mix of
cash and shares for the acquisition. It is not yet clear how much of the
authorized shares will be used in the transaction.
Pandohie says that with this step out of the way the process will continue
to arrive at proper company valuations.
Under the deal, Seprod will acquire warehousing space and real estate at
53 and 61 Newport Boulevard at Newport West, Kingston as well as food
brands such as Eve and Delight.
<< Back to news headlines >>
A Private Island in Belize to be Developed to Welcome Visitors in 2021 Monday 9th April, 2018 – Caribbean 360
Four Seasons Hotels and Resorts announced plans for the development of
Caye Chapel, a private island in Belize featuring oceanfront estates,
private residences and overwater bungalows. Scheduled to open in 2021,
the project is in in partnership with Thor Urbana, Inmobilia Desarrollos and
GFA Grupo Inmobiliario, three leading real estate development groups
based in Mexico.
Four Seasons Resort and Residences Caye Chapel, Belize will transform the
intimate private island of Caye Chapel into a luxury destination for
residence owners and leisure travellers, with approximately 50 private
estate lots, 35 private residences, and 100 guest rooms and suites.
The island will feature an 18-hole golf course designed by Greg Norman in
consultation with Lorena Ochoa, a Fabien Cousteau nature and
conservation institute, a marina and private airstrip.
“We are excited to be a part of the reimagination of Caye Chapel into an
exclusive luxury experience, and to do so in a way that protects and
reinforces the natural wonders of the island,” said J. Allen Smith, President
and CEO of Four Seasons Hotels and Resorts.
The 280-acre Caye Chapel is located in the Belize archipelago in the
Caribbean Sea, adjacent to the UNESCO World Heritage designated
Belize Barrier Reef System, the largest reef system in the northern
hemisphere. The island is outlined by 6 miles (9.7 kilometres) of white sand
beaches and turquoise waters and is located 16 miles (26 kilometres) from
Belize City, either 30 minutes by boat or 10 minutes by flight.
The island’s marina and airstrip can accommodate private boats and
planes for easy access by owners and guests arriving from further afield. A
destination in its own right, the island also acts as a convenient base to
explore the nearby cultural and natural sites of mainland Belize and
surrounding cays.
For those looking to make their stays on the island more permanent, the
development will include residences that owners can help design and
build to their own preferences. Each lot will have private beach and golf
course access.
The resort will feature 100 guest rooms and suites designed by Studio
Caban, including a collection of overwater bungalows.
Myriad amenities include health and wellness facilities, two beach clubs,
multiple dining and bar options with sea views, retail outlets, a young
residents club, a marina, tennis courts and the 18-hole White Shark Golf
Course designed and reinvented by Greg Norman and Lorena Ochoa.
Guests and homeowners will also get to enjoy boat expeditions,
snorkelling, paddle boarding, diving and the on-site Fabien Cousteau
Nature and Conservation Institute and Adventure Centre. The institute will
be home to research and education initiatives that guests and residents
can participate in, including a 3D coral reef printing programme.
<< Back to news headlines >>
Lopsided contract between Guyana, Exxon catches Bloomberg attention Tuesday 10th April, 2018 – Kaieteur News
“The government could consider issuing a temporary moratorium on new
licensing until a new fiscal regime is in place,” – IMF
US (Bloomberg) – Exxon Mobil Corp. got such a “favourable” deal from
Guyana – home to the biggest new deep-water oil play – that the tiny
South American country should rewrite its tax laws, the International
Monetary Fund said.
While Guyana should honour the existing deal, future contracts should
ensure the state gets a higher portion of crude proceeds, the fund said in
a report seen by Bloomberg News.
The country, South America’s third poorest with an average per capita
income of around $4,000, has little experience of dealing with
multinational behemoths such as Exxon.
Terms of the 2016 contract “are relatively favourable to investors by
international standards,” the IMF said in a report prepared for Guyanese
officials. “Existing production sharing agreements appear to enjoy royalty
rates well below of what is observed internationally.”
IMF officials have visited the nation multiple times over the past nine
months as they help improve its legal, fiscal and regulatory frameworks
before Exxon commences oil production in 2020. Guyana, whose entire
population of 770,000 is about half the size of Philadelphia, has become
one of Exxon’s five key global projects for the next decade due to the
sheer size of its oil endowment.
“Government take is generally lower in frontier plays than in established
areas as governments need to incentivize companies to undertake high-
risk exploration,” Exxon said in a statement, citing a Wood Mackenzie Ltd.
study that found Guyana in the middle range of the 148 jurisdictions
evaluated.
A GIANT AWAKES
Guyana’s huge deep-water oil discovery keeps growing.
With companies such as Total SA, Tullow Oil Plc and Repsol SA also
exploring for oil in Guyana’s waters, time is of the essence. “The
government could consider issuing a temporary moratorium on new
licensing until a new fiscal regime is in place,” the IMF said.
Exxon’s total acreage in Guyanese waters covers 11.5 million acres,
equivalent to about 2,000 leases in the U.S. sector of the Gulf of Mexico.
Exxon leads a partnership group that includes Hess Corp. and China’s
CNOOC Ltd. The IMF declined to comment beyond the report.
$700 MILLION
Expectations are high. Government revenues from Exxon’s first project,
which involves pumping less than 15 percent of the crude found to date,
are expected to peak at $700 million a year by the late 2020s, equivalent
to the country’s tax take in 2016.
The government has no plans to change the Exxon contract, Mineral
Resources Minister Raphael Trotman said by email. The terms cover the
Stabroek Block where Exxon struck oil through its Liza-1 well in 2015.
However, the government will have different terms for future contracts,
Trotman said.
Exxon’s deal was procured partly because it entered the country in 1999,
when the Guyanese coastline wasn’t regarded as promising oil territory by
most of the industry. “It is not unusual to see more favourable fiscal terms
for early investments in the extractive industries,” the IMF said in its report,
which was delivered to Guyanese leaders in November.
RESOURCE CURSE
To reap the benefits of oil, Guyana faces a familiar challenge: gaining as
much revenue as possible without deterring investment. Politicians say
they want to set up a sovereign wealth fund and avoid the resource curse
— the phenomenon whereby discovery of a valuable commodity stunts
growth in other sectors of an economy, fuelling corruption, conflict and
currency swings that ultimately strand most of the population in poverty.
Either way, oil is poised to profoundly change Guyana, a country the size
of Kansas that was colonized by the Dutch and British before obtaining
independence in 1966. Its economy currently relies on agriculture and
gold mining.
With first oil due in 2020, just five years after it was discovered, the
government has much to do, the IMF said in the report. Exxon’s deal with
Guyana gave it the lowest average effective tax rate among nine
projects in countries that include Norway, Brazil, Peru and Trinidad &
Tobago.
COST DEDUCTIONS
Open Oil, a Berlin-based company that advocates contract
transparency, also found Guyana’s share of the Stabroek was low
compared with both established and early-stage producing countries.
Guyana will receive 52 percent of positive cash flow over the life of
Exxon’s initial project, compared with between 63 percent and 72
percent for developments in Liberia, Mauritania, Ghana, Senegal and
Papua New Guinea, it said in a March report.
The Exxon contract, which was published on a government website last
year, provides Guyana with a 2 percent royalty on sales and 50 percent
of profitable oil, once costs are repaid. Exxon and its partners can only
deduct three-quarters of their costs each year, giving the government
some cash in the first years of the project.
The IMF report recommends that Guyana:
-employ a more progressive tax regime so that the government receives a
higher share of profits as projects earn more
-consider eliminating interest expenses from the project’s costs to avoid
“abusive use of debt”
-introduce tighter ring fences to avoid costs being shared around multiple
fields
-bulk up its regulatory capability
“We intend on implementing as many of the recommendations as
possible,” Trotman, the minister, said. In so far as the Exxon-led group’s
contract is concerned, “the government has no intention of revisiting it at
this time. For future contracts we certainly will be having updated terms.”
<< Back to news headlines >>
WTO to 'Move the Needle' On Business Ease Monday 9th April, 2018 – Tribune 242
The Bahamas' chief negotiator says joining the WTO can help solve this
nation's 'ease of doing business' woes, arguing: "We must move the
needle on new industries."
Raymond Winder told Tribune Business that becoming a full member of
the rules-based trading regime will force the Bahamas to modernise its
economy and remove structural impediments to growth, citing the
absence of "quality investment legislation" as one such bottleneck that
must be addressed.
The Deloitte & Touche managing partner said he was "convinced we
have lost out on potentially significant investment", especially for Grand
Bahama, with this nation "never making the first cut" among investors due
its status as a WTO non-member and uncertainty over "the rules of the
game".
Trade regimes such as the WTO mandate that countries codify their
investment rules in statute law, rather than leave them open to change as
'policy', and Mr Winder suggested one benefit from such an enforced
change will be to "level the playing field" between foreign and Bahamian
investors.
Many in the private sector have argued that the Bahamas must first
improve its economic competitiveness and address its 'ease of doing
business' deficiencies in particular, if local businesses are to 'survive and
thrive' in a post-WTO environment where they will have to battle larger
foreign rivals 'head on'.
They have called for these weaknesses to be addressed 18-24 months
before the Bahamas becomes a full WTO member, but Mr Winder
rejected using this as an excuse to delay the country's accession.
He argued that the two issues - WTO membership and 'ease of doing
business' - are not mutually exclusive and independent but interlinked with
progress on one helping to move the other forward.
With the economy's 'twin pillars' of tourism and financial services "under
attack", Mr Winder said the Bahamas had little choice but to diversify and
restructure its economy through WTO and other initiatives.
He argued that the country had wasted the past decade "fighting" over
how to redistribute economic wealth, rather than "growing the pie" for the
benefit of all Bahamians.
Explaining why 'ease of business' concerns "do not have a bearing" on the
Bahamas' WTO progress, Mr Winder told Tribune Business: "We ought not to
use these problems to not have a good quality conversation on the
merits, and pros and cons, of becoming a member of the WTO.
"Some have alleged we should not be talking about WTO until we address
the 'ease of doing business'. The 'ease of business' is a process, and most
of it is internal. But the Economic Partnership Agreement (EPA) process, in
particular, has helped to move the process of improving the quality and
'ease of doing business', and by moving further forward on the WTO some
of the things that will come out of that - becoming a WTO member - will
also help the quality and 'ease of doing business'."
Mr Winder cited as a specific example the Bahamas' investment
framework, which is currently set out in policy via the National Investment
Policy rather than in statute law. This means investment 'rules' can be
subjected to sudden, arbitrary change at the whim of the then-
government, with the resulting uncertainty doing little to inspire investor
confidence.
"We've lagged behind in adopting quality investment legislation," the
Bahamas' chief WTO negotiator argued, "that specifically spells out what's
available for foreigners to invest in, what's reserved for Bahamians to
invest in, and what's needed as we go through the investment process.
"WTO requires all that [to be in law] before we sign on. That will help in
laying the groundwork where the policy is clear for a foreign investor and
Bahamian investor. What are the steps in law that one can do and can't
do.
"Today, we constantly find ourselves tweaking the policy depending on
who the investor is. WTO will not accept that as the way." The National
Investment Policy has long been subjected to such treatment, with
different governments frequently waiving the rules on industries seemingly
reserved for Bahamian ownership only to facilitate specific foreign
investors.
The Government has long known such reform was necessary if the
Bahamas was to pursue WTO membership. Tribune Business can recall
interviewing Zhivargo Laing, the minister of state for finance with
responsibility for trade, almost a decade ago in which the conversion of
the National Investment Policy into an Act of Parliament was a key topic
of discussion.
Mr Winder, though, said codifying the Bahamas' investment regime in law
would boost local investors and eliminate some of the mistrust that exists
between the private sector and government.
"Bahamians have long voiced their concern about foreigners receiving
concessions and Bahamians not receiving similar concessions," he told
Tribune Business. "As long as they are policy, and the law is not clear, this
feeling will persist.
"I'm not saying they're [Bahamians] wrong; in some cases they are right.
Once this is codified Bahamians will find themselves in a better position to
understand how they meet some of the requirements for these
concessions.
"Today, the whole picture is clouded, and there's this whole mistrust
between the Government and private sector as to what's going on," Mr
Winder continued. "When this whole process is looked at, the Bahamian
private sector will find themselves in a better position, and not just to
complain about it. If the Government violates the law, they can take it to
court.
"It will level the playing field between Bahamians and foreigners. That's
one of the things WTO does. It ensures you have a level playing field
where everyone can understand no particular group is receiving an
advantage to their detriment."
The chief negotiator's argument that the Bahamas should not halt WTO
accession while it addresses its 'ease of business' concerns is unlikely to be
accepted by everybody. Robert Myers, the Organisation for Responsible
Governance's (ORG) principal, described such a notion as "naive and
irresponsible" in a recent interview with this newspaper.
He warned that the Bahamian middle class and small and medium-sized
enterprises (SMEs) will be "decimated" should the country open up to
foreign competitors able to exploit greater 'economies of scale' and
squeeze out local firms.,
"I'm pro-WTO because it provides Bahamians with an opportunity to
expand beyond our borders, but we cannot do so when our hands are
tied behind our backs by the Government," Mr Myers told Tribune Business.
"They've got to unshackle us and allow us to be competitive.
"He's [Mr Winder] saying we should disregard it, that it's not relevant. That's
absolute rubbish. To say so shows no understanding of what we're doing....
So, we should ignore that and march on to opening up our borders, and
allow in people that are far more competitive because of they operate in
a range of economies with massive economies of scale and lower costs?
"What do you think that's going to do to SMEs and large enterprises in the
Bahamas? You're simply going to eliminate and decimate the middle
class and middle-income group unless you address the gorilla in the
room."
Mr Winder, meanwhile, said the Government agreed with the private
sector that improvements to 'the ease of doing business' are "not moving
along fast enough". And its current investment regime was inadequate
when it came to attracting foreign capital.
"It is clear that we haven't been able to make any meaningful strides in
modernising this country to attract quality investment on a regular and
ongoing basis," the Deloitte & Touche (Bahamas) partner said.
"While I cannot say all is principally due to the fact that we are not a
member of the WTO or more trading agreements, it is clear that for us to
make meaningful improvements in the number of private sector job
opportunities we're going to have to be far more competitive in attracting
investment to the Bahamas that results in ongoing, quality jobs for
Bahamians.
"We have lagged behind in that area, and one of the primary reasons we
have lagged is that any investor coming to the Bahamas does not get a
clear position on what the rules are, and what can and cannot be done,"
Mr Winder added.
"It creates, and further gives this perception, of corruption and folks
receiving benefits and information they should not be receiving. It gives
that impression - I'm not saying it's actually happening - simply because
we have this policy position which constantly moves depending on what
type of day it is."
Mr Winder said the Bahamas has reached a stage in its economic
development where "it cannot do the same thing over and over” and
expect tourism and financial services to keep carrying the job creation
load when both are under constant external pressures.
"The time demands we move the needle to create new industries and do
some things in this country," he told Tribune Business, pointing out that the
Bahamas was failing to properly exploit its US proximity and assets such as
Freeport's deep-water harbour.
Calling for "a major shift", rather than the "tweaks" employed to-date, Mr
Winder added: "We must make a major jump, and the WTO can help with
that a great deal.
"I'm concerned we have lost out on potentially significant investment for
Grand Bahama solely because we are not a member of WTO. Those
investors will not even have spoken to the Government or Port Authority.
They would have seen from a distance the challenges of doing business in
the Bahamas. No need for further analysis; we never made the first cut as
a place to do business."
Emphasising that economic growth is a must, Mr Winder added: "For the
last decade now we have been fighting among ourselves over the
distribution of the pie. We must now expand the pie.
"This is not about distributing the pie; it's about making the pie bigger so
others can benefit."
<< Back to news headlines >>
Prime Minister Harris promoting St. Kitts and Nevis’ CBI Programme in the
Middle East Monday 9th April, 2018 – SKN Vibes
St. Kitts and Nevis’ Prime Minister, Dr the Honourable Timothy Harris, is
leading a high-level delegation on a tour to promote the Federation’s
Citizenship by Investment (CBI) Programme in the Middle East.
Prime Minister Harris is presently in Dubai, United Arab Emirates (UAE),
where he is expected to meet with a number of international marketing
agents and promoters of economic citizenship programmes to discuss
new investment opportunities in St. Kitts and Nevis.
The prime minister is being accompanied on this visit by Chief Executive
Officer (CEO) of the St. Kitts and Nevis Citizenship by Investment Unit, Mr.
Les Khan and Consul General at the Consulate of St. Kitts and Nevis in
Dubai, Mr. Justin Hawley.
Prime Minister Harris stated that the intention is “to stimulate further interest
in the market of the CBI programme which has been significantly revived
under his Team Unity-led Administration.”
While there, the St. Kitts and Nevis delegation will update potential
investors on the recently announced Sustainable Growth Fund. Under this
new investment option, a single applicant will require a contribution of US
$150,000, inclusive of Government fees whereas the contribution for a
family of up to four will be US $195,000.
Prime Minister Harris is also scheduled to meet with economic citizens living
in Dubai with a view to encourage them to make greater investments in
the country, to return to visit, and to be more active participants in the
socio-economic life of St. Kitts and Nevis.
From Dubai, Prime Minister Harris and his team will then travel to Hong
Kong where they will engage even more agents and investors on
opportunities in the twin island Federation.
According to Dr Harris, St. Kitts and Nevis’ Citizenship by Investment
Programme, long regarded internationally as the platinum brand of the
economic citizenship industry, continues to employ the most vigorous due
diligence procedures “where we go through multiple tiers of vetting and
this includes the involvement of external international agencies that are
involved in the fight against crime.”
The federation’s CBI programme, the longest-running citizenship
programme in the world, has over the last three years received several
accolades, as a result of an extensive rebranding process initiated by the
Team Unity Government.
The programme recently achieved the number one ranking in the OECS
by a quality of passport index survey conducted by Henley & Partners in
January, 2018. The Federation was also recognized for offering the World’s
Most Innovative Investment Immigration Programme at the 2017 Russian
Global Citizen Awards Ceremony.
<< Back to news headlines >>
Air China makes Panama bow, Copa hit by Venezuela Sunday 8th April, 2018 – Newsroom Panama
Last week saw Copa Airlines gain international recognition for its
punctuality record and get hit by a block on the company’s flights to
Venezuela, stranding sports teams, businessmen, and people seeking
medical treatment. and even leading to the cancelation of regional
football (soccer) fixtures.
The Venezuelan action led to the recall of the Panama ambassador and
the exit from Panama of the Venezuelan ambassador.
Meanwhile, the opening of a new air link to Tocumen International Airport
got less recognition than it merited. The Air China inaugural flight from
Bejing to Panama arrived at 12,30 pm on Thursday, April 5 a service
predicted to give a major fillip to Panama tourism. The plane was met by
President Juan Carlos Varela and government officials.
<< Back to news headlines >>
Catastrophe insurance facility to scale up to meet the region’s needs Monday 9th April, 2018 – Caribbean News Now
On March 19, 2018, CCRIF SPC hosted a stakeholder retreat in Miami, as
part of its tenth anniversary celebrations to bring together representatives
from member countries, regional organizations and international
development partners to help define the facility’s strategic direction to
2030 and determine how CCRIF can further support the countries in the
region.
CCRIF has been providing parametric catastrophe insurance coverage
since 2007 for hurricanes and earthquakes and – since 2013 – for excess
rainfall in the Caribbean, extending into Central America in 2015. Pay-outs
up to December 2017 have amounted to approximately US$130.5 million,
all settled within 14 days of the hazard event, and have been critical for
immediate response and recovery activities following these devastating
events.
Governments and donors, which have witnessed first-hand the aftermath
of extreme geophysical and climate events throughout the past decade,
particularly in the latter months of 2017, have been encouraged by
CCRIF’s rapid response and pay-outs.
Within this context, and as CCRIF enters its 11th year of operations, the
facility is exploring scaling up to better serve the countries in the region.
For CCRIF CEO, Isaac Anthony, “charting a course to 2030 is even more
an urgent requirement as the impacts of climate change are increasingly
affecting CCRIF’s Caribbean and Central American member countries”.
The events of the past two hurricane seasons certainly supports this.
In his opening remarks, CCRIF chairman Milo Pearson, informed the almost
50 participants at the stakeholder retreat that even following CCRIF’s pay-
outs of US$55 million to nine member governments after tropical cyclones
Maria and Irma, CCRIF remains financially solvent with its long-term
sustainability intact.
Stakeholders indicated that CCRIF is an exemplar in its field of work and
were pleased that the facility partners with member countries to find
innovative solutions to cope with improving resilience. They also reiterated
the value of membership in CCRIF and supported and welcomed the call
for the scaling up of the facility.
Scaling up of CCRIF could include providing increased CCRIF coverage
for existing members, adding new members to CCRIF – in both the
Caribbean and Central America and maybe even beyond, and
introducing new products such as a drought product as well as providing
coverage for the agriculture and fisheries sectors and public utilities (e.g.
water and wastewater; energy, including renewables; and
telecommunications) and possibly other economic industries such as
tourism.
During CCRIF’s ten years in existence, the facility has demonstrated that
disaster risk insurance can effectively provide a level of financial
protection for countries vulnerable to tropical cyclones, earthquakes and
excess rainfall. Left unchecked, the economic impact of disasters can
generate large losses that disrupt long-run economic growth trajectories.
Ideas and strategies emerging from participants included: broadening
CCRIF’s research and development capacity; determine how best the
facility could provide in-country support for strengthening national
comprehensive disaster risk management strategies; and, utilizing the
CCRIF models and the modelling work undertaken by the facility to
enhance country decision making processes around disaster risk
reduction among others.
Participants also were encouraged by fact that CCRIF in collaboration
with the Munich Climate Insurance Initiative will be focusing on increasing
the number of low-income persons in the region who have access to
climate risk insurance through a micro insurance product known as the
livelihood protection policy (LPP) and increase the number of companies
in the region offering this micro insurance to the most vulnerable in our
societies.
The ideas and recommendations from this retreat, along with information
gleaned in a stakeholder assessment conducted in January and February
2018, were channelled into CCRIF’s own strategic planning retreat held on
March 20, 2018.
Anthony emphasized that these activities will lead toward CCRIF playing
its part in helping the region realize CARICOM’s stated ambition of making
the Caribbean the first climate-resilient zone in the world.
At the close of the retreat, CCRIF also took the opportunity to launch the
CCRIF Online Policy Forum as part of its tenth anniversary efforts to
strategically find ways to engage members and stakeholders in defining
CCRIF’s way forward to 2030 to better support disaster risk management in
the region. The forum is expected to bring together our key contacts from
member countries – finance/permanent secretaries in the ministry of
finance but could also include key regional organizations, officials in
national disaster offices and meteorological offices among others.
Anthony stated, “We hope to use the online forum to discuss key topics
related to risk financing, provide updates on CCRIF among others and
indicated that the Forum will provide a unique space for officials to
engage in open and frank discussion and will provide an opportunity to
develop solutions to address common challenges in keeping with the spirit
of innovation and building a resilient Caribbean”.
<< Back to news headlines >>
China assures Caribbean amid jitters over looming trade war with US Tuesday 10th April, 2018 – Jamaica Observer
China has assured governments of the Community of Latin American and
Caribbean States (CELAC), which have been keeping a close watch on
the deepening trade row between that Asian country and the United
States, that the Chinese Government will not harm their economic ties.
At the same time, however, China has indicated that should the fresh
wave of trade dispute escalate into an all-out war, countries within the
regional bloc should expect some level of fall-out.
Chinese state officials have insisted on using the term “trade conflict” to
describe the dispute which has intensified over the past several days after
Washington last Monday issued a list of Chinese export products, worth
US$50 billion, against which the Donald Trump Administration has
proposed levy of an additional 25 per cent in import duties.
The US said it was moving to impose additional duties under Section 301 of
US Trade Act, as a result of an investigation into China's intellectual
property policies and practices.
Addressing journalists from the Caribbean and Latin American region at
China's foreign affairs ministry here Sunday, Han Jing, counsellor in the
ministry's Department of Latin America and Caribbean, stated: “Some
other countries and regions will feel the pinch of the trade dispute
between China and America but we will uphold WTO system and rules in
our trade relations with them. China will always be a defender and
contributor to multilateral trade systems. We will not harm our economic
relations and trade ties with the Caribbean and Latin American
countries”.
Han argued that trade disputes among countries are normal but that
these should be addressed through consultation.
“The method taken by the United States runs counter to the spirit of the
WTO (World Trade Organization). It is not beneficial to the interest of US
consumers and its national interest. It will also harm China's national
interest of course, or even the economic interest of the whole world,” he
said.
Han, like China's vice-minister of commerce Wang Shouwen did at a news
conference last Wednesday, stressed that China does not want the trade
war with the US, but warned that, “we are not afraid of it either”.
The US is targeting 1,300 Chinese products in the dispute with China.
China has since retaliated with its own list of 106 US goods worth a
corresponding US$50 billion in annual trade, for tariffs. The list targeted for
additional tariffs cover 14 categories of goods and includes passenger
airplanes, chemicals, and soybeans.
In response, President Trump has now asked the US trade representative to
consider US$100 billion in additional tariffs, according to a White House
release issued on Thursday.
“In light of China's unfair retaliation, I have instructed the USTR to consider
whether US$100 billion of additional tariffs would be appropriate under
Section 301 (of the US Trade Act) and, if so, to identify the products upon
which to impose such tariffs,” the statement said.
Section 301 authorises the US president to: “Take all appropriate action,
including retaliation, to obtain the removal of any act, policy, or practice
of a foreign government that violates an international trade agreement or
is unjustified, unreasonable, or discriminatory, and that burdens or restricts
US commerce.”
At the same time, China has also filed a request for consultation with the
WTO under its dispute settlement framework over US tariffs totalling 35 per
cent on steel and alumina imports, which China said can affect it and
other countries.
<< Back to news headlines >>
U.S. stock futures rise as Xi cools trade war fears Tuesday 10th April, 2018 – Reuters
U.S. stock index futures rose more than a percent on Tuesday after
Chinese President Xi Jinping promised to cut import tariffs, soothing
investor concerns about rising U.S.-China trade tensions.
In his first public comments since the trade dispute with the Trump
administration started, Jinping vowed to open the country’s economy
and said China would raise the foreign ownership limit in automobile,
shipbuilding and aircraft sectors “as soon as possible”.
His comments buoyed global markets, which have been under pressure
as China and the United States threatened each other with billion in tariffs
and investors feared that protectionist measures would hit global
economic growth.
Shares of major U.S. automakers such as General Motors (GM.N), Ford
(F.N), Fiat Chrysler (FCAU.N) and Tesla (TSLA.O) were up between 2
percent and 4 percent premarket following Xi’s comments.
U.S. stocks will also face a major test in coming weeks as first-quarter
earnings pour in. Big banks such as JPMorgan Chase (JPM.N), Citigroup
(C.N) and Wells Fargo (WFC.N) will kick off the earnings season with their
results on Friday.
Analysts expect quarterly profits for S&P 500 companies to rise 18.5
percent from a year ago, which would be the biggest gain in seven years,
according to Thomson Reuters I/B/E/S.
Investors will keep a close eye on Facebook (FB.O) CEO Mark
Zuckerberg’s testimony before U.S. lawmakers on Tuesday and
Wednesday.
The CEO is expected to strike a conciliatory tone in an attempt to blunt
possible regulatory fallout from the privacy scandal engulfing his social
network.
On Monday, stocks pared gains late in the session following a report that
the Federal Bureau of Investigation raided the office of President Donald
Trump’s lawyer.
At 7:11 a.m. ET, Dow e-minis 1YMc1 were up 274 points, or 1.14 percent,
with 79,089 contracts changing hands.
S&P 500 e-minis ESc1 were up 29 points, or 1.11 percent, with 261,980
contracts traded.
Nasdaq 100 e-minis NQc1 were up 95.25 points, or 1.47 percent, on
volume of 89,430 contracts.
Among stocks, shares of Nvidia (NVDA.O) rose 4 percent premarket after
Morgan Stanley raised the stock to “overweight”.
Verifone Systems (PAY.N) shares were up 51.7 percent after the company
agreed to be taken private for $2.28 billion.
<< Back to news headlines >>
China's Xi renews pledges to open economy, cut tariffs this year as U.S.
trade row deepens Tuesday 10th April, 2018 – Reuters
Chinese President Xi Jinping promised on Tuesday to open the country’s
economy further and lower import tariffs on products including cars, in a
speech seen as an attempt to defuse an escalating trade dispute with
the United States.
While most of the pledges were reiterations of previously announced
reforms, which foreign businesses complain are long overdue, Xi’s
comments sent stock markets and the dollar higher on hopes of a
compromise that could avert a trade war. [MKTS/GLOB]
Xi said that China will sharply widen market access for foreign investors, a
chief complaint of the country’s trading partners and a point of
contention for U.S. President Donald Trump’s administration, which has
threatened billions of dollars in tariffs on Chinese goods.
“President Xi’s speech appears to have struck a relatively positive tone
and opens the door to potential negotiations with the U.S. in our view. The
focus now shifts to the possible U.S. response,” economists at Nomura said.
“But of course, actions speak louder than words. We will keep an eye on
the progress of those opening-up measures.”
The speech at the Boao Forum for Asia in the southern province of Hainan
had been widely anticipated as one of Xi’s first major addresses in a year
in which the ruling Communist Party marks the 40th anniversary of its
landmark economic reforms and opening up under former leader Deng
Xiaoping.
Xi said China would raise the foreign ownership limit in the automobile,
shipbuilding and aircraft sectors “as soon as possible”, and push previously
announced measures to open the financial sector.
“This year, we will considerably reduce auto import tariffs, and at the
same time reduce import tariffs on some other products,” Xi said.
He also said “Cold War mentality” and arrogance had become obsolete
and would be repudiated. His speech did not specifically mention the
United States or its trade policies, which have been assailed by Chinese
state media in recent days.
Vice Premier Liu He had already vowed at the World Economic Forum in
January that China would roll out fresh market opening moves this year,
and that it would lower auto import tariffs in an “orderly way”.
Chinese officials have been promising since at least 2013 to ease
restrictions on foreign joint ventures in the auto industry, which would allow
foreign firms to take a majority stake. They currently are limited to a 50
percent stake in joint ventures and cannot establish their own wholly
owned factories.
Tesla’s Chief Executive Elon Musk has railed against an unequal playing
field in China and wants to retain full ownership over a manufacturing
facility the company is in talks to build there.
“This is a very important action by China. Avoiding a trade war will benefit
all countries,” Musk tweeted after Xi’s speech.
Foreign business groups welcomed Xi’s commitment to reforms, including
promises to strengthen legal deterrence on intellectual property violators,
but said the speech fell short on specifics.
“Ultimately U.S. industry will be looking for implementation of long-stalled
economic reforms, but actions to date have greatly undermined the
optimism of the U.S. business community,” said Jacob Parker, vice
president of China operations at the U.S.-China Business Council.
EASING OF TENSION
Jonas Short, head of the Beijing office at Everbright Sun Hung Kai, said the
market was cheered by Xi’s speech because it was framed in more
positive terms which could ease trade tensions, but he voiced caution
about promised reforms.
“China is opening sectors where they already have a distinct advantage,
or a stranglehold over the sector,” Short said, citing its banking industry,
which is dominated by domestic players.
Xi’s renewed pledges to open up the auto sector come after Trump on
Monday criticized China on Twitter for maintaining 25 percent auto import
tariffs compared to the United States’ 2.5 percent duties, calling such a
relationship with China not free trade but “stupid trade”.
Analysts have cautioned that any Chinese concessions on autos, while
welcome, would be a relatively easy win for China to offer the United
States, as plans for opening that sector had been under way well before
Trump took office.
But Vice Commerce Minister Qian Keming said at the forum on Tuesday
that China’s economic reforms were driven by domestic factors and not
due to external pressures.
Xi also said China would speed up opening up of its insurance industry,
with Shanghai Securities News citing a government researcher after the
speech saying foreign investors should be able to hold a controlling stake
or even full ownership of an insurance company in the future.
Trump’s move last week to threaten China with tariffs on $50 billion in
Chinese goods was aimed at forcing Beijing to address what Washington
says is deeply entrenched theft of U.S. intellectual property and forced
technology transfers from U.S. companies.
Chinese officials deny such charges and responded within hours of
Trump’s announcement of tariffs with their own proposed commensurate
duties.
The move prompted Trump last week to threaten tariffs on an additional
$100 billion in Chinese goods, which have yet to be identified. None of the
announced duties have been implemented yet, offering room for
negotiation.
Beijing charges that Washington is the aggressor and spurring global
protectionism, although China’s trading partners have complained for
years that it abuses World Trade Organization rules and practices unfair
industrial policies that lock foreign companies out of crucial sectors with
the intent of creating domestic champions.
While U.S. officials, including Trump, have recently expressed optimism that
the two sides would hammer out a trade deal, Chinese officials in recent
days have said negotiations would be impossible under “current
circumstances”.
Dallas Federal Reserve Bank President Robert Kaplan, on a visit to Beijing,
said he was optimistic that very few if any of the proposed tariffs by the
United States and China announced in recent weeks will actually be
implemented.
“I think it’s so clearly in the interest of both countries that we have a
constructive trading relationship and that we have substantive talks to
redress these issues.”
<< Back to news headlines >>
Chinese investment into U.S. slumps in 2017 on policy changes Tuesday 10th April, 2018 – Reuters
Chinese investment in the United States fell more than a third last year to
$29 billion from a record $46 billion in 2016, the first major correction in a
decade, a report by the Rhodium Group and the National Committee on
U.S.-China Relations showed.
The main culprit was government policy on both sides of the Pacific,
namely Beijing’s efforts to crack down on outbound capital flows and
Washington’s intensified screening of Chinese acquisitions in America, said
the report issued on Tuesday.
The report by the New York-based consultancy and the non-profit business
lobby comes at a time of heightened friction between China and the
United States over trade and warns that “policy bellicosity especially from
Washington” was casting a darker shadow over the economic
relationship.
“This more problematic political environment is likely not just transient but
rather the new normal. Changing policy attitudes on both sides are deep-
seated, not just tactical ploys,” said the report.
In 2017, the value of announced foreign direct investment deals from
China into the United States plummeted by more than 90 percent from
the year before, while much of the money that continued to flow into
America was carryover from 2016 deals, the report said.
Average deal values dropped to $215 million from $356 million, it said.
It said planned greenfield projects were delayed, fewer jobs were added
to Chinese payrolls in America compared to previous years and some
Chinese companies even began looking for exits.
The “policy attitudes” behind the falling numbers were “unlikely to reverse
fully anytime soon, suggesting that lower levels of investment will persist in
the near term”, it said.
American investment in China, meanwhile, was basically flat at $14 billion
last year from $13.8 billion the year before, it said.
<< Back to news headlines >>
NY Fed evaluating published SOFR rates after feedback Tuesday 10th April, 2018 – Reuters
The New York Federal Reserve on Tuesday said that it is evaluating data
used to determine its new Secured Overnight Financing Rate (SOFR), after
receiving feedback that volumes in bilateral repurchase agreements
(repo) backing the rate were higher than some had expected.
The New York Fed said it is looking into the issue with its bilateral repo data
provider to determine whether there was an impact on the published
rate, volume or other statistics.
The bank began publishing SOFR last week, the first step in a multi-year
effort to make the rate an alternative to the London interbank offered
rate (Libor) in derivatives contracts.
<< Back to news headlines >>
Dollar dips to two-week lows on Xi comments; euro jumps Tuesday 10th April, 2018 – Reuters
The dollar dipped to a two-week low against a basket of currencies on
Tuesday after Chinese President Xi Jinping’s promise to cut import tariffs
eased concerns about a trade conflict.
Relatively high yielding currencies such as the Australian dollar AUD=D3
and the Canadian dollar CAD=D3 were the chief beneficiaries in London
trading of a revival in risk appetite against the dollar while the yen and the
Swiss franc weakened.
“President Xi’s comments and seasonality effects with April being
traditionally a strong month for risk appetite is helping currency markets
recover some ground,” said Simon Derrick, chief currency strategist at BNY
Mellon in London.
Xi pledged to open the economy further and lower import tariffs on
products including cars.
In his first public reaction to the tariff stand-off, Xi refrained from increasing
tension with Washington and appeared to give clear backing for open
economies rather than isolationism.
The dollar-yen rate rose 0.2 percent at 107.01 yen JPY= after going as high
as 107.245.
Against a broader basket of currencies, the greenback was trading at a
two-week low .DXY at 89.63. It has fallen nearly 1 percent in the last three
trading sessions.
“Xi explicitly did not continue the trade war rhetoric so this is going to be
risk-friendly and the market will be relieved,” said Kit Juckes, a macro
strategist at Societe Generale.
Juckes said he expected high-yielding currencies including the Australian
dollar and the New Zealand dollar to perform well as risk appetite
returned.
ROUBLE WOES
But in a sign that market risks lurk on the side-lines, the Russian rouble RUB=
tanked by 4 percent on Tuesday after a similar drop on Monday, raising
some concerns that more weakness in the Russian currency could trigger
a wider shakeout in broader positions in emerging markets.
Russian assets have been pounded following Washington’s move to
impose major sanctions against Russian businessmen and their companies
to punish Moscow for its alleged meddling in the 2016 U.S. election and
other “malign activity”.
If the sell-off continues to accelerate and the rouble significantly
decouples from economic fundamentals and oil prices, the central bank
may consider selling hard currencies to slow down the pace of
depreciation, Rabo Bank strategists wrote in a daily note.
Elsewhere, the euro EUR=EBS briefly jumped after a European Central Bank
policymaker said the bank could raise its sub-zero deposit rate before
normalizing monetary policy.
The single currency was trading 0.4 percent up on the day at at $1.2362
after rising to a high of $1.2378.
<< Back to news headlines >>
Russian sanctions dent European share recovery Monday 9th April, 2018 – Reuters
Further U.S. sanctions on Russian interests hit Europe-listed stocks on
Monday, denting a recovery as investors became more hopeful a trade
war between the United States and China could be averted.
The pan-European STOXX 600 index ended the day up just 0.1 percent as
sanctions that included a blacklisting of aluminium giant Rusal sent mining
stocks spiralling lower.
Resilience among financials stocks was just enough to keep the market in
positive territory.
Basic resources stocks .SXPP sank 1.7 percent, as a sector that has already
seen sharp declines as a result of trade tensions hit its lowest level in four
months.
“Everything gets sold off in this environment,” said John Meyer, mining
analyst at SP Angel. “The U.S. list may not be the final list and it feels like
there will be more sanctions so investors do not know which, if any, stocks
to hold.”
Stocks linked to allies of President Vladimir Putin suffered sharp declines.
London-listed shares in En+ Group (ENPLq.L), which manages the assets of
Russian tycoon Oleg Deripaska, sank 42 percent after the U.S. sanctions
blacklist targeted the magnate whose business empire has a global
footprint.
The stock has lost more than half its value since Friday’s open, with
management saying the sanctions were “highly likely” to materially affect
the business and prospects in an adverse way.
Shares in Swiss pump maker Sulzer (SUN.S) and technology group Oerlikon
(OERL.S) were also sharply down, falling 8.5 percent and 8.4 percent
respectively after their majority holder Viktor Vekselberg appeared on the
sanctions list.
Companies with significant operations in Russia were also punished.
Precious metals miner Polymetal (POLYP.L) sank 18 percent, the worst
STOXX faller, while Raiffeisen Bank (RBIV.VI) tumbled 12 percent.
Shares in Carlsberg (CARLb.CO), which sells a lot of its beer in Russia and is
sensitive to the rouble, significantly lagged beverage sector peers. They
declined 1.1 percent as the currency suffered its biggest one-day fall in
three years.
Aluminium maker Norsk Hydro (NHY.OL) benefited from sanctions hitting
rival Rusal (0486.HK) (RUAL.MM).
The Norwegian company’s shares shot up 6.6 percent to the top of the
European index as traders said there was a positive read across. Miner Rio
Tinto (RIO.L) was also seen as a beneficiary, and its shares rose 1.1
percent.
Overall, investors were more positive on the potential for stocks to recover,
looking ahead to the start of the first-quarter earnings season as a likely
positive catalyst.
“Equities are looking over sold just as a very strong reporting season is
beginning,” wrote JP Morgan analysts. “Global earnings delivery plus U.S.
buybacks could catalyse recovery.”
Financial stocks provided the most support to the market with Deutsche
Bank (DBKGn.DE) up 1.2 percent after it named a new CEO who said
tough decisions would have to be made and the structure of its
investment bank reviewed.
Portuguese energy and utility group EDP (EDP.LS) gained 3.8 percent after
a report French utility Engie (ENGIE.PA) was examining a possible bid.
Also, on the M&A front, Novartis (NOVN.S) ended the day down 0.1
percent, giving up earlier gains after announcing a $8.7 billion deal for
AveXis (AVXS.O), a move into gene therapy that gives the Swiss drug
maker a rare-disease treatment seen reaping billions in sales and bolsters
its technology base.
Billerud Korsnas (BILL.ST) fell 7.8 percent after a downgrade to “sell” from
an SEB analyst.
<< Back to news headlines >>
Nikkei climbs to near 1-month high after Xi's speech lifts mood,
automakers Tuesday 10th April, 2018 – Reuters
Japanese stocks rose to a near one-month high on Tuesday, led by
automakers after Chinese President Xi Jinping promised to lower import
tariffs on products including cars, indirectly addressing some of the U.S.
concerns that have sparked a trade row between the world’s two biggest
economies.
The comments come following a week of escalating tariff threats amid
U.S. frustration with China’s trade and intellectual property policies, rattling
financial markets worrying over potential damage to global growth.
The Nikkei rose 0.5 percent to 21,794.32, the highest closing level since
March 15, but off an intraday high of 21,933.99.
The market opened lower but rose after Xi’s speech in which he also said
China would raise the foreign ownership limit in the automobile sector “as
soon as possible” and push previously announced measures to open the
financial sector.
“He spoke in more details than the market had expected,” said Nobuhiko
Kuramochi, a strategist at Mizuho Securities. “The market was focused on
mention about some sectors including auto and finance, and he seems to
have delivered enough details to satisfy investors.”
The transport equipment sector gained 1.4 percent, with Toyota Motor
Corp up 1.4 percent, Honda Motor Co jumping 2.6 percent and Mazda
Motor Corp gaining 0.8 percent.
Companies with large exposure to China also staged a rally.
Industrial robot maker Fanuc Corp advanced 3.3 percent, machine tool
maker Okuma jumped 4.0 percent and construction machinery maker
Komatsu rose 2.9 percent.
The broader Topix gained 0.4 percent to 1,731.94.
<< Back to news headlines >>
Stocks gain as Xi calms U.S.-China trade fears; ruble tanks Tuesday 10th April, 2018 – Reuters
Global equity markets rallied and the Japanese yen fell on Tuesday as
Chinese President Xi Jinping’s promise to cut import tariffs eased investor
concerns about an escalating U.S.-China trade row.
Russian assets extended Monday’s slide as investors digested the new
round of U.S. sanctions targeting the country’s tycoons. The ruble plunged
more than 4 percent against the dollar to its lowest since late-2016.
Speaking at the Boao Forum for Asia in Hainan province, Xi vowed to
open China’s economy further, protect intellectual property of foreign
firms and he criticised a “Cold War mentality” as obsolete, in his first public
comments since the trade dispute with U.S. President Donald Trump’s
administration erupted.
Xi’s comments prompted a largely positive reaction in financial markets,
which have been rattled over the past week on fears the tit-for-tat U.S.-
China tariffs will escalate into a full-scale trade war that would threaten
global growth.
European markets followed Asia with solid gains. Germany’s DAX rose 0.8
percent, France’s CAC 40 0.51 percent and Britain’s FTSE 100 0.59 percent.
The U.S. S&P 500 E-mini futures gained 1.15 percent, suggesting U.S. shares
would open positively.
The MSCI World Index rose 0.34 percent.
“In the current environment markets are grabbing at the slightest hint.
Today’s message from Xi contained nothing really new but it seemed like
a conciliatory tone and so the market is just grabbing at that,” said Peter
Garnry, head of equity strategy at Saxo Bank in Copenhagen.
“It goes back to the fact that there is still uncertainty on trade wars and
even if we get a slight indication that it won’t be the worst-case scenario,
the market reacts positively,” he said, while predicting ongoing trade
tensions throughout 2018.
Oil markets rose sharply on hopes that the trade dispute may be resolved
without greater damage to the global economy. Brent crude futures
climbed more 2 percent to $70.12.
After trading flat for most of the day, the euro surged when European
Central Bank policymaker Ewald Nowotny told Reuters that the central
bank could stagger the process of raising euro zone interest rates by first
lifting its sub-zero deposit rate back toward positive territory.
The euro rose 0.4 percent to $1.2378 and left the dollar down across most
major currencies aside from the Japanese yen.
The yen, which traditionally rises in times of market stress, fell versus both
the dollar and euro. The dollar rose to as high as 107.245 before giving up
some of those gains.
Safe haven bond prices including 10-year Treasuries initially dropped as
risk appetite recovered.
Gold rose 0.2 percent.
The Australian dollar, which has fallen in recent weeks because of the
economy’s exposure to global trade flows, gained against the dollar, as
did Asian currencies including the Chinese yuan
“Xi explicitly did not continue the trade war rhetoric so this is going to be
risk-friendly and the market will be relieved,” said Kit Juckes, a macro
strategist at Societe Generale.
RUSSIAN FALLS
Russian financial markets sold off sharply.
The ruble tumbled 4.2 percent, bringing its losses against the dollar since
last Friday to around 10 percent.
Rouble-denominated shares rose 0.8 percent, bouncing off multi-month
lows hit on Monday when the Moscow bourse dropped 8.3 percent. The
shares of Rusal, the aluminium giant, which, with its boss Oleg Deripaska,
was highlighted prominently in the sanctions, fell a further 7.5 percent in
Hong Kong after slumping 50 percent on Monday.
Its dollar bonds maturing 2022 were trading at record lows around 52
cents, having lost half their value since the sanctions were announced.
“It is very serious, it’s very rare that you see a country literally force a
company from another country towards bankruptcy. When you are shut
out of dollar funding markets, a lot of your business will just stop working,”
Saxo Bank’s Garnry said, adding that Russia’s smaller role in global
financial markets would limit the wider fallout. The MSCI Emerging markets
index was up 0.63 percent as other larger markets outside of Russia rallied.
For Reuters Live Markets blog on European and UK stock markets open a
news window on Reuters Eikon by pressing F9 and type in ‘Live Markets’ in
the search bar
<< Back to news headlines >>
Sterling basks at 2-week highs but risks grow Tuesday 10th April, 2018 – Reuters
Sterling hit a two-week high on Tuesday as firm risk appetite and a top
policymaker’s comment that the Bank of England should not delay an
interest rate hike boosted bets in a market that is already long in the British
currency.
Markets see an 80 percent probability of a rate hike in May and the latest
comments and strong housing survey data this week offered further
encouragement.
Ian McCafferty, one of two policymakers on the nine-member Monetary
Policy Committee who voted for a rate rise last month, told Reuters in an
interview that wage growth might prove stronger than most of his
colleagues thought, adding to pressure on inflation that is running above
the BoE’s target.
“The pound remains bid due to the global backdrop, seasonal demand
and Mcafferty’s comments,” said Neil Jones, head of hedge fund sales at
Mizuho Bank Ltd.
Sterling edged higher after Mcafferty’s interview was published and hit a
day’s high of $1.4170 against a broadly sturdy dollar. Against the euro, it
strengthened to 87.08 pence
The British currency has rallied more than 1.5 percent in the last three
trading sessions. Market watchers say a successful break above the
$1.4252 line would put sterling on track to test a 2018 high of $1.4346 hit in
late January.
Its gains against the struggling euro have been even more pronounced.
Sterling has strengthened 1 percent so far this month after a 2 percent
rally in March.
“This an interesting level technically ... recent data and positioning seem
to be weighing on the euro,” said John Marley, head of FX strategy at
Infinity International, a currency risk management firm.
April tends to be a strong month for the British currency, according to
recent analysis by strategists at Bank of America Merrill Lynch. They said
dividend payments by UK companies have helped sterling to rally every
April for the last 14 years.
The BoE raised rates for the first time in more than a decade in November
and a recent string of strong data including house price data on Monday
have virtually sealed the case for a second rate increase in May.
But positioning is already long according to various survey data and poll
forecasts and therefore the market may be vulnerable to a selloff if a
correction materialises or data surprises on the downside.
<< Back to news headlines >>
Oil breaks above $70 a barrel as shadow of trade war recedes Tuesday 10th April, 2018 – Reuters
Oil broke above $70 a barrel on Tuesday, extending strong gains from the
previous day, as investors grew more optimistic that a trade dispute
between the United States and China may be resolved without greater
damage to the global economy.
Brent crude futures were up $1.39 at $70.04 a barrel by 1131 GMT, while
West Texas Intermediate crude futures rose $1.23 to $64.65 a barrel.
The oil price has risen by nearly 4.5 percent in the last two trading days.
President Xi Jinping on Tuesday promised to open China’s economy
further and lower import tariffs, in a speech that struck a conciliatory tone
on the trade tensions between China and the United States.
Equities and industrial commodities rose, while perceived safe-havens
such as gold and U.S. Treasuries came under pressure, reflecting
confidence among traders and investors that a trade war is increasingly
unlikely.
“It’s not so much ‘risk on/risk off’, as it is ‘trade war on/trade war off’ and,
at the moment, we’re ‘trade-war off’,” London Capital Group’s Jasper
Lawler said.
“There’s a lot of political motivation in the tariffs in the United States, but
ultimately, they won’t want a trade war, there is a general desire to boost
the U.S. economy.”
Concerns of a prolonged trade dispute between the world’s two biggest
economies and uncertainty over the supply and demand balance of
global oil markets have made for volatile trading in the last few weeks.
Oil briefly rose above $70 two weeks ago, after Saudi Arabia vowed it
would keep an agreement in place to limit supply into next year. But the
U.S. decision to impose tariffs on $50 billion of Chinese goods a week later
sent the price to a two-week low.
Oil markets have been supported by healthy demand and supply cuts led
by the Organization of the Petroleum Exporting Countries.
However, soaring U.S. crude production, which has jumped by a quarter
since mid-2016, threatens to undermine OPEC’s efforts.
The American Petroleum Institute will publish storage data later on
Tuesday while the U.S. Energy Information Administration releases its
monthly report on U.S. production.
“Today’s monthly report from the EIA is likely to confirm that the supply
situation is set to ease, primarily on the back of growing non-OPEC
production,” Commerzbank said in a note.
“It is doubtful whether this will pressure the price, however, as the most
recent price drivers were for the most part not fundamental in nature.”
<< Back to news headlines >>
Declines in all three TTSE Indices Tuesday 10th April, 2018 – Trinidad and Tobago Guardian
Overall market activity resulted from trading in 12 securities of which one
advanced, four declined and seven traded firm.
Trading activity on the First Tier Market registered a volume of 108,997
shares crossing the floor of the Exchange valued at $2,224,506.02. Sagicor
Financial Corporation Limited was the volume leader with 29,429 shares
changing hands for a value of $229,521.20, followed by NCB Financial
Group Limited with a volume of 24,363 shares being traded for
$151,604.60. T&T NGL Limited contributed 20,792 shares with a value of
$574,469.65, while Guardian Holdings Limited added 19,574 shares valued
at $313,180.
One Caribbean Media Limited enjoyed the day’s sole price increase,
climbing $0.05 to end the day at $12.48. Conversely, First Citizens Bank
Limited registered the day’s largest decline, falling $0.11 to close at
$32.59.
Clico Investment Fund was the only active security on the Mutual Fund
Market, posting a volume of 1,828 shares valued at $36,836.55. It remained
at $20.15.
In Monday’s trading session the following reflect the movement of the TTSE
Indices:
• The Composite Index declined by 1.41 points (0.11 per cent) to close at
1,259.
• The All T&T Index declined by 0.78 points (0.05 per cent) to close at
1,699.62.
• The Cross Listed Index declined by 0.28 points (0.25 per cent) to close at
110.37.
<< Back to news headlines >>
Increases in revenue, income and equity for Sagicor Tuesday 10th April, 2018 – Trinidad and Tobago Guardian
Against a backdrop of contrasting regional and international economic
conditions, the Sagicor Group achieved improvements in revenue, net
income and equity for the 2017 financial year.
In a report on the results which has been posted to the T&T Stock
Exchange, chairman Stephen McNamara told shareholders: “Regionally,
the Caribbean experienced modest economic growth, but continued to
engage in fiscal consolidation through various measures of tax increases
and public expenditure cuts to reduce high levels of public debt.
Internationally, the USA experienced growth, increases in interest rates
and a significant, but favourable change in its tax regime for business.”
He said the group’s net income increased by US$6 million from US$109.3
million in 2016, while group equity was US$932.3 million, compared to
US$795.4 million in the prior year, an increase of US$136.9 million.
Net income attributable to shareholders was US$72.2 million, compared to
US$61.7 million in the prior year, an increase of US $10.5 million. Earnings
per common share was US 23.7¢—an annualised return on common
shareholders’ equity of 13.3 per cent compared to 12.6 per cent for the
prior year.
Total revenue increased to US$1,220.9 million, compared to US $1,134.1
million the previous year, an increase of US$86.8 million or 7.7 per cent. Net
premium revenue reached US$745.6 million, compared to US$664 million,
an improvement of US$81.6 million or 12.3 per cent. Premium income
increased in all segments and benefited from the issuance of a single
premium annuity relating to the group’s Jamaica segment.
McNamara said: “Exchange gains/(losses) also showed a loss of US$4.2
million, compared to gains of US$12.6 million in the prior year, a reduction
of US$16.8 million. Foreign exchange movements were affected by a
strengthening of the Jamaica dollar when compared to the United States
dollar in 2016, resulting in foreign exchange declines in financial assets
denominated in United States dollars in our Jamaica segment.
“Overall, the company experienced a gain on translation of the Jamaica
segment, which is reported in other comprehensive income. In addition,
the prior year included exchange gains relating to declines in the Trinidad
dollar, when compared to the United States dollar, there was no
significant foreign exchange movement, relative to this currency in 2017.”
As at December 31, 2017, Sagicor’s assets amounted to US $6.8 billion, up
from US$6.5 billion in 2016 and liabilities closed at US$5.9 billion, compared
to US$5.7 billion for the previous year.
Sagicor is listed on the Barbados and T&T Stock Exchanges and the
London Exchange.
<< Back to news headlines >>
OCM declares 2017 results: $72.4m profit before tax Tuesday 10th April, 2018 – Trinidad Express Newspapers
One Caribbean Media (OCM) has recorded a profit before tax of $72.4
million for the financial year ended December 31, 2017.
The company's profit before tax for the same period in 2016 was $86.5
million.
In 2017 the media group recorded a $52.4 million (US$7.7 million) profit
after tax, according to its consolidated audited financial results.
'The OCM Group continued to deliver satisfactory performances despite
the adverse economic conditions in the markets in which we operate,'
chairman Faarees Hosein stated in an advertisement on Page 37 of
today's newspaper. OCM is the parent company of Caribbean
Communications Network (CCN) which publishes the Express newspaper
and operates TV6. In 2017, group revenues of $442 million (US$65 million)
decreased by five per cent from $466 million (US$68 million) in 2016.
Profit for the year of $52.4 million was six per cent less than $56 million
(US$8.2 million) in 2016.
Earnings per share were $0.69 compared with $0.82 in the previous year. A
Goodwill impairment charge of $7m (US$1 million) was incurred by the
Distribution business as a result of the sharp market contraction which has
directly impacted sales, the audited results stated.
'Our Trinidad based media business benefited from restructuring exercises
while the new investment in a Broadband Cable company was able to
make a solid profit contribution. In light of the changing market
landscape, we have strategies to achieve even higher levels of
efficiency,' Hosein added.
The company's directors have approved a final dividend of $0.40 per
share to be paid on April 30, bringing the total dividend declared for the
year 2017 to $0.67.
The annual shareholders' meeting has been scheduled for Thursday, June
7 at 10 a.m. at Express House, 35 Independence Square, Port of Spain.
<< Back to news headlines >>
Toyota focuses on smaller, economic vehicles Tuesday 10th April, 2018 – Trinidad Express Newspapers
With a challenging economic climate and the removal of the fuel subsidy,
one of the leading car importers in Trinidad and Tobago is focusing on
smaller, fuel-efficient vehicles.
Toyota Trinidad Ltd launched its new 2018 Agya model at Toyota's San
Fernando showroom last Saturday.
Speaking to members of the media during the launch, Toyota Trinidad Ltd
president Shigeru Ito said, the Agya is just one of many cars the company
will launch this year.
Ito said the company took note of the current economic landscape and
the direction of the Government since the 2018 budget.
He said, 'We want to make it easier to own a vehicle. Anyone ranging
from university students to retirees will enjoy this car.'
Agya means fast in Sanskrit. Compact and modern, it carries a one litre
VVTI engine and 4-speed automatic transmission.
'Even though it is small it can perform,' Ito said.
'The Agya comes with ABS system, dual air bags and immobiliser. Don't let
the size fool you, there is enough room for five people six feet tall to sit in
there comfortably, he said.
Priced at $125,000, customers would also enjoy one year of free service,
he said.
Earlier this year, Toyota launched its 2018 Yaris as one of its more
compact, fuel-efficient cars.
Ito said, 'We want to provide the opportunity to purchase a brand-new
Toyota that is both dependable and affordable.'
If you are a fan of the Prius model, the company says it plans to relaunch
the Prius C hybrid featuring a more appealing look.
<< Back to news headlines >>
The Reef reopens bringing more visitors to Anguilla Monday 9th April, 2018 – The Anguillian
The Reef by CuisinArt reopened on Sunday, April 1, some eight months
after Hurricane Irma struck Anguilla on September 6, 2017 and setback
much of the island’s tourism accommodation facilities.
The Reef by CuisinArt, located on Merrywing Bay along Anguilla’s south-
west coast, opened in November 2016 and is the sister hotel of the nearby
CuisinArt Golf Resort & Spa. A member of Small Luxury Hotels of the World,
The Reef was named the #1 Resort in Anguilla, #2 in the Caribbean, and
one of the Top 50 Resorts in the World, by the 2017 Conde Nast Readers’
Choice Awards, a very distinct honor for a property with less than one
year in operation.
The Reef by CuisinArt features On the Rock lounge; a fitness centre, a
media room and boutique; tennis and bocce courts; The Yacht Club for
breakfast and dinner; a spectacular central pool leading to the beach –
and the seaside Breezes Restaurant and Bar that has become a popular
venue for both visitors and the local market. The grand main building
features Golfview and Seaview Junior Suites and spectacular Junior Suites
in the four beachfront buildings.
The reopening of the Reef by CuisinArt was marked by the arrival of a
number of guests who were personally welcomed by President and
General Manager, Mr. Stephane Zaharia and staff.
The Government and people of Anguilla are delighted that another of the
island’s large hotels has reopened after recovering from the hurricane,
and more well-needed tourists will come to the island.
Mr. Zaharia told the local media: “The recovery process went extremely
well. We had committed to a strong action plan, following the hurricane
of September 6, that included the reopening CuisinArt Golf Club in
December and the complete reopening of The Reef on April 1. We have
accomplished this and the “new” Reef features the relaunching of our
Lobby Bar to the new On The Rock, fabulous dining experiences at The
Yacht Club and Breezes, a full schedule of spa treatments and fitness
classes, new lush landscaping, and more. We are ready to welcome
guests and have them experience our legendary service.
“We are thrilled we were able to deliver on our promise and we will now
be working throughout the month of April on the reopening of Tokyo Bay
Restaurant and Venus Spa at CuisinArt, and then the full reopening of the
estate with the fully-renovated CuisinArt Resort on November 1st.
Everything is on schedule and we are continuously ensuring the market of
our viability and, more importantly, our resilience following the unfortunate
event which we all have lived through in Anguilla.
“We could not have done all of this without the tremendous help of our
staff and all members of our team. Everybody is fully committed and fully
dedicated to the success of our estate, and we cannot wait for the future
because the future is extremely bright.”
<< Back to news headlines >>
Postal workers heading back to work Tuesday 10th April, 2018 – The Antigua Observer
Postal workers at the General Post Office are going back to work to
address the backlog of mail and parcels that have gone undelivered for
weeks.
Ongoing renovations at the lower High Street location resulted in
employees being sent home for more than two weeks. Mail and parcels
were piling up and many residents were becoming frustrated with the lack
of information on how soon regular operations would resume.
Wigley George, president of the Antigua Trades and Labour Union told
OBSERVER media yesterday that despite the issues that caused workers to
refuse to resume work, they have “volunteered” to work.
He added that this was particularly commendable because employees
were not to work in the current conditions.
“The workers recognised that the public is under heavy strain. The banks
are not able to process their remittances because of the lack of
paperwork, and the [Antigua Public Utilities Authority] bills that are still out
there. I want to thank the workers for taking the initiative in the interest of
the public,” George said.
He said the decision was made at a meeting yesterday after workers
approached him to indicate they would be willing to resume duties since
they would not be required to be in the building for long periods.
“The sorters would go in and the postmen and women would pick up the
bag, go out and deliver and then return their bag and go home,” he
explained.
During the last three weeks, postal workers were asked to stay home in
order to facilitate the refurbishment.
Last week Tuesday, health official agreed with the almost 300 workers who
said that the building was not fit for employees to work in while the repairs
were underway.
The employees were dismissed and told to await further instructions on
their return after they protested.
Striking employees complained about the dust, poor ventilation and a
noisy building that did not have adequate bathroom facilities for the
workers.
Meanwhile, people with outstanding mail can report to the post office to
collect them today.
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Delinquent loans stay in single digits Tuesday 10th April, 2018 – Trinidad and Tobago Guardian
Two local banks say the number of delinquent loans has stayed in the
single-digit range even with the slowdown in the T&T economy.
Nigel Baptiste, Managing Director of Republic Bank Limited (RBL) said the
situation with delinquent loans “has not been far different from prior years”
which he attributed to prudent borrowing by customers combined with
diligent follow up by staff of the bank.
“Generally, however, the last quarter of 2017 and first quarter of 2018 as
been relatively slower than a few years ago but consistent with the trend
of the last couple of years,” he said.
Commenting on the Central Bank of T&T’s decision to maintain the repo
rate at 4.75 per cent, Baptiste, who is also the President of the Bankers
Association of T&T (BATT), suggested that the rationale might be trying to
balance two concerns in the external environment—the economic
slowdown and continued surplus demand for foreign exchange.
“There is now a negative gap between the local and US-dollar rates
which will only increase pressure on the exchange rate,” he said.
“At the same time however, with domestic demand fairly subdued, the
Central Bank is mindful of not wanting to add any further pressure. History
will have to assess whether their actions are prudent but they are in a no-
win situation.”
Baptiste said bankers have had to change their lending strategy to
accommodate the slowdown in the economy and have been “much
more judicious in extending additional credit facilities to clients,
particularly where we felt they might be over-stretching and relying on
everything to go right.”
He added: “This has enabled many businesses to now weather the
slowdown, such that, while profits might have been down or stable, their
businesses are not in jeopardy.”
Scotiabank is reporting that for the first quarter of fiscal 2018, its total loan
portfolio increased year over year by two per cent, with a “decline in
business lending, driven by material scheduled repayments.”
“Retail loan growth was achieved mainly in our mortgages portfolio with
lower levels of growth in motor vehicles loans, partly driven by the decline
in motor vehicle sales of 14.6 per cent, as the sales of both private (17.1
per cent) and commercial vehicles (9.3 per cent) declined over October
to November 2017 (year on year) as reported in the Central Bank
Economic Bulletin, March 2018.”
The bank said its first quarter results showed that loan loss expenses had
increased over the same period last year, as it “continues to exercise a
prudent risk management approach in managing delinquency, in this
challenging economic environment.”
Scotiabank said: “The credit quality of our loan portfolio continues to be
solid as the ratio of non-accrual loans to total loans stood at 2.23 per cent
at the end of the period.”
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