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

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

▪ The Government of Anguilla rating reaffirmed at CariBBB+

▪ NCB Financial Group rating upgraded to CariA+

▪ NCB Jamaica Limited rating upgraded to CariA-

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

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

▪ Colonial Fire & General Insurance Company Limited’s rating reaffirmed at CariA

▪ Home Mortgage Bank’s rating reaffirmed at CariA ▪ Mystic Mountain Limited’s rating upgraded to CariBBB ▪ NiQuan Energy Trinidad Limited’s rating reaffirmed at CariA+

▪ Sagicor Financial Corporation Limited’s proposed bond issue initial rating assigned at CariAA

▪ Dominica Agriculture, Industrial and Development Bank’s rating reaffirmed at CariBB-

OUR UPCOMING WORKSHOPS!

Cash Flow Based Lending for Banks & Financial Institutions 4th & 5th November 2019 Guyana

Benefits of a CariCRIS Rating to a Credit Union:

Latest Rating Actions by CariCRIS

• Know where the company stands and use it as a motivation for

growth

• Employ it as a marketing tool to attract new members

• Demonstrate to members its investing capabilities

DATE

WORKSHOP

COUNTRY

Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings

CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.

REGIONAL

Trinidad and Tobago

Plipdeco leads trading

OVERALL stock market activity yesterday resulted from trading in 16

securities of which five advanced, six declined and five traded firm.

New roundabout, 4-lane carriageway for San Fernando

ATTORNEY General Faris Al-Rawi said a mega-road network project to

cater for the development of the San Fernando Waterfront and Skinner

Park will begin in November.

S&P confirms First Citizens rating

STANDARDS & Poor's (S&P) has reaffirmed the First Citizens Group's

BBB/Stable/A-2 rating. The bank, in a press release on Monday, said the

rating was a clear reflection of the group’s sound position in governance,

corporate banking and solid operation revenue, coupled with excellent

capitalisation ratios, as highlighted in the report.

TSTT raises over - $2.7 b on US roadshow

A US$400 million 10-year bond offered by the Telecommunications

Services of Trinidad and Tobago (TSTT) has been “significantly over-

subscribed” the T&T Guardian has learned.

Guyana

Unmitigated oil spill in Payara field could significantly impact Region One

– EIA

Should an oil spill occur in the Payara field of the Stabroek Block, it is likely

to have a significant impact on Region One. This is according to the

Environmental Impact Assessment (EIA) that was done on the project by

Environmental Resources Management (ERM), a consultancy firm that is

based in the United Kingdom.

Guyana Continued

Indigenous leaders urged to craft plan to benefit from oil and gas

resources

Production of oil is expected to commence in the first quarter of 2020, and

the country is projected to receive more than $62Billion (US$300M) in the

first year. With this in mind, the Director of the Department of Energy (DE),

Dr. Mark Bynoe has called on Indigenous leaders to craft a strategic plan

to ensure their communities benefit equally from those resources.

The Bahamas

Govt Finances Face 3-Year Dorian Blow

Hurricane Dorian will likely throw the government's finances off-track for

the next three years, the deputy prime minister has revealed, although its

fiscal "fundamentals" have not altered.

Royalfidelity: $1bn Goal As 'Caribbean's Premier'

RoyalFidelity is now focused on becoming "the premier Caribbean

investment bank and wealth manager" after its management-led buyout

closed last Wednesday, its president has revealed.

Dominica

Dominica to benefit from new climate resilience project

Dominica will be one beneficiary of a new project, focused on improving

local resilience to hurricanes and climate extremes in the Eastern

Caribbean.

The Dominican Republic

Despite LatAm slump, Dominican economy to grow 5%: IMF

The International Monetary Fund (IMF) on Tue. predicted that Latin

America and the Caribbean will experience economic growth of just 0.2%

during 2019, a significant reduction from the 1.4 % expansion projected in

April.

Grenada

Budget day is 20 November 2019

2020 budget will be presented on 20 November 2019

INTERNATIONAL

United States

Futures slip on renewed U.S.-China trade war concerns

U.S. stock index futures dipped on Wednesday as a new U.S. bill taking a

hard line on China stoked fresh concerns about a prolonged trade war,

but more positive results from the banking sector provided some relief and

signaled a solid start to the third-quarter earnings season.

Europe

European shares take a breather before Brexit talks resume

European shares slipped on Wednesday, after closing at their highest level

in more than a year, as London’s last-ditch Brexit talks with Brussels kept

investors apprehensive about making brisk decisions.

Euro zone inflation drops more than foreseen, trade surplus widens

Euro zone inflation dropped to its slowest pace in nearly three years in

September, more than previously estimated, the European Union statistics

agency said on Wednesday.

Euro zone inflation drops more than foreseen, trade surplus widens

Euro zone inflation dropped to its slowest pace in nearly three years in

September, more than previously estimated, the European Union statistics

agency said on Wednesday.

China

China's Ant Financial in talks for loan of up to $3.5 billion at lower rate

Ant Financial, an affiliate of China’s largest e-commerce company

Alibaba Group (BABA.N), is in talks for a syndicated loan of up to $3.5

billion at a lower rate to slash debt costs, Bloomberg reported on

Wednesday, citing unnamed sources.

China Continued

Huawei's third-quarter revenue jumps 27% as smartphone sales surge

Huawei Technologies Co Ltd’s third-quarter revenue jumped 27%, driven

by a surge in shipments of smartphones launched before a trade

blacklisting by the United States expected to hammer its business.

Global

Oil steadies below $59, weaker economic outlook weighs

Oil steadied below $59 a barrel on Wednesday, pressured by concerns

about weaker demand for fuel due to slower economic growth and

forecasts of a further rise in U.S. crude inventories.

Dollar near four-week lows as trade tensions simmer

The dollar held near a four-week low on Wednesday as trade tension

between Washington and Beijing continued to weigh on the global

growth outlook.

Sterling falters as Brexit approaches its endgame

Sterling came off five-month highs and stocks traded sideways on

Wednesday as the European Union and Britain sought to avert a disorderly

Brexit before an EU summit on Thursday.

Oil steadies below $59, weaker economic outlook weighs Wednesday 16th October, 2019 – Reuters

Oil steadied below $59 a barrel on Wednesday, pressured by concerns

about weaker demand for fuel due to slower economic growth and

forecasts of a further rise in U.S. crude inventories.

Prices gained some support due to signs from the Organization of the

Petroleum Exporting Countries that further curbs to oil supply could come

in December. OPEC and its allies meet on Dec. 5-6 in Vienna to review

output policy.

Brent crude LCOc1, the global benchmark, rose 5 cents to $58.79 a barrel

by 1137 GMT. U.S. crude CLc1 gained 24 cents to $53.05.

“Prices are under pressure from increasing pessimism about the global

economy and subsequent demand-side concerns,” Stephen Brennock of

oil broker PVM said.

In a bearish signal for demand, the International Monetary Fund said on

Tuesday the U.S.-China trade war would cut 2019 global growth to its

slowest since the 2008-2009 financial crisis.

“Prices remain under pressure,” said Craig Erlam, analyst at OANDA. “Oil

inventory today from API may be notable albeit unlikely to have any

major impact on the broader trend.”

The American Petroleum Institute (API) reports its weekly U.S. inventory

numbers at 2030 GMT, ahead of Wednesday’s government stocks data.

[EIA/S] Analysts estimate U.S. crude inventories rose by around 2.8 million

barrels last week.

Optimism about an imminent Brexit deal had helped support the market,

although this faded after EU sources said talks had hit a standstill and

Ireland said there were still issues to be resolved.

Analysts have said any agreement that avoids a no-deal Brexit should

boost economic growth and, in turn, oil demand.

OPEC Secretary-General Mohammad Barkindo, meanwhile, has said an

option for OPEC and its allies is to implement deeper cuts in oil production.

On Tuesday, Barkindo said OPEC would do what it could with allied

producers to sustain oil market stability beyond 2020, in a signal the

producers would continue to cooperate.

OPEC, Russia and other producers have a deal to cut oil output by 1.2

million barrels per day until March 2020.

<< Back to news headlines >>

Dollar near four-week lows as trade tensions simmer Wednesday 16th October, 2019 – Reuters

The dollar held near a four-week low on Wednesday as trade tension

between Washington and Beijing continued to weigh on the global

growth outlook.

The dollar’s losses were most pronounced against the Japanese yen,

which had reached a two-and-a-half-month low amid concern the trade

war between China and the United States will weigh on risk appetite.

“The retreat in USD/JPY is obviously a function of the markets being a little

nervous vis-à-vis any Chinese retaliation to the measures passed (in the

U.S.),” said Jeremy Stretch, head of G10 foreign exchange strategy at

CIBC Capital Markets.

The yuan fell after Beijing criticized new U.S. legislation backing pro-

democracy protests in Hong Kong.

Reports of a “Phase 1” trade deal between the United States and China

last week initially cheered markets. Lack of details on the agreement has

since curbed any enthusiasm.”Markets are still cautiously optimistic that

any unwind of the trade negotiations is not going to be a material one,”

he added.

Escalating trade tariffs from China and the United States over the past

year have forced central banks to cut interest rates as global growth

expectations weaken.

On Tuesday, the International Monetary Fund said it expected the global

economy to grow 3.0% in 2019, its slowest pace since the 2008-09 financial

crisis.

“The cost of taking this dispute to its next stage of escalation has

exponentially increased,” Morgan Stanley strategists said in a daily note,

although they added the United States and China might adopt a more

nuanced approach to the trade dispute in the coming days.

Elsewhere, the Norwegian crown NOK= weakened to its lowest since July

2001 at 9.1925 per dollar NOK=D3 and its weakest against the euro since

December 2008 EURNOK=D3.

Norway is a major exporter of oil, making it particularly sensitive to

economic tensions. The central bank has said this week it expects to keep

interest rates on hold.

Trade-oriented currencies such as the Australian dollar AUD=D3 and the

New Zealand dollar NZD=D3 also weakened. The kiwi dollar last traded

down -0.5% at 0.6261.

Against an index of six other currencies .DXY, the dollar was weaker at

98.27 and just above an intraday low of 98.16 reached in Asian trading, its

lowest in nearly four weeks.

<< Back to news headlines >>

European shares take a breather before Brexit talks resume Wednesday 16th October, 2019 – Reuters

European shares slipped on Wednesday, after closing at their highest level

in more than a year, as London’s last-ditch Brexit talks with Brussels kept

investors apprehensive about making brisk decisions.

The pan-European STOXX 600 index was down 0.3%, after closing at its

highest level since May 2018.

London-listed shares of Rio Tinto (RIO.L) were among the biggest decliners

on the STOXX 600, after the miner said its iron ore shipments rose 5%. But it

cut its bauxite and alumina production forecast for the year.

Rio’s shares also took a hit from China iron ore plunging to a six-week low

following a weak demand outlook.

The wider European mining sector .SXPP was down 1.3%, while the

financial services .SXFP and retail sectors .SXRP shed more than 1% on

declines in British stocks.

Brexit negotiations will resume in Brussels on Wednesday morning after

“constructive” negotiations went into the night on Tuesday, but time is

running out to put the deal to vote at an European Summit that starts

Thursday. Any deal will also need approval from the British parliament.

“(The market is) expecting the UK and EU to agree to a deal, but we still

don’t know whether it’s a deal that will get through parliament,” said

Jonathan Bell, Chief Investment Officer at Stanhope Capital.

European stock markets logged strong gains over the past week following

unexpected breakthroughs in Brexit negotiations with Ireland. The

benchmark index has risen more than 2%, while German stocks .GDAXI,

which have large exports to Britain, rose nearly 4%.

Britain's domestically-focused midcaps .FTMC, which rallied 5% in the past

three sessions to its highest level in a year, was down 1% on Wednesday.

In a bright spot, Volkswagen (VOWG_p.DE) shares rose 1% as industry data

showed European car registrations rose 14.4% in September.

Investor focus shifts now to Europe’s earnings season, which gets

underway in earnest next week. Analysts expect an earnings recession to

deepen as companies struggle with uncertainties around Brexit, a

protracted U.S.-China trade spat and Germany’s manufacturing

recession.

STOXX 600 companies are now expected to report a drop of nearly 3.7%

in third-quarter earnings, worse than the 3% fall expected a week ago,

I/B/E/S data from Refinitiv showed.

Dutch semiconductor equipment maker ASML (ASML.AS) slipped 0.3%

despite reporting higher-than-expected quarterly profit and bookings.

Keeping losses in check for the benchmark index were shares of Roche

(ROG.S), which rose 0.9% as the Swiss drugmaker boosted its 2019 sales

outlook for a third time, and said it expects to finish its takeover of Spark

Therapeutics (ONCE.O) this year.

Its shares boosted the healthcare sector .SXDP by 0.4%.

<< Back to news headlines >>

Euro zone inflation drops more than foreseen, trade surplus widens Wednesday 16th October, 2019 – Reuters

Euro zone inflation dropped to its slowest pace in nearly three years in

September, more than previously estimated, the European Union statistics

agency said on Wednesday.

The drop is likely to raise new concerns on the state of the euro zone

economy and may reignite a debate within the European Central Bank

on how to pursue its goal of keeping inflation close to but below 2% over

the medium term.

Eurostat said prices in the 19-country euro zone rose 0.8% on the year,

down from its earlier estimate of 0.9% and lower than the market

consensus of 0.9%.

Eurostat also said the bloc’s trade surplus with the rest of the world rose to

14.7 billion euros ($16.2 billion) in August, from 11.9 billions the previous

year, as imports fell more than exports.

The revised inflation reading marked a more pronounced slowdown than

August’s 1.0%. It was the lowest rate since November 2016, when prices

rose 0.6%.

However, a narrower inflation indicator, which strips out volatile energy

and unprocessed food prices and is monitored closely by the ECB, rose to

1.2% in September from 1.1% in August, in line with earlier Eurostat

estimates on Oct. 1.

Excluding energy, food, alcohol and tobacco, inflation grew 1.0% in

September, Eurostat said, confirming earlier figures.

The revision of the headline figure was caused by lower-than-expected

inflation for industrial products, another worrying sign for euro zone

manufacturers, who are facing drops in output and in confidence.

Prices for industrial goods, excluding energy, went up 0.2% on the year in

September, Eurostat said, revising its earlier 0.3% estimate.

Energy prices were confirmed falling by 1.8%. Inflation for service, the

largest segment of the euro zone economy, rose 1.5%, in line with previous

estimates.

The trade data also released on Wednesday confirmed manufacturing’s

difficulties. Exports of goods to the rest of the world fell by 2.2% on the year

in August.

Imports dropped even more, 4.1%, as global trade tensions seemed to

take their toll. Trade among euro zone states also fell 5.6% on the year.

Despite U.S. threats and sanctions against global partners, the latest data

showed widening gaps. The EU trade surplus with the United States grew

to 102.7 billion euros in the period from January to August, from 90.6

billions the year before.

The EU’s trade deficit with China grew to 127.4 billion euros over the same

period, from 116.3 billions a year earlier.

<< Back to news headlines >>

Euro zone inflation drops more than foreseen, trade surplus widens Wednesday 16th October, 2019 – Reuters

Euro zone inflation dropped to its slowest pace in nearly three years in

September, more than previously estimated, the European Union statistics

agency said on Wednesday.

The drop is likely to raise new concerns on the state of the euro zone

economy and may reignite a debate within the European Central Bank

on how to pursue its goal of keeping inflation close to but below 2% over

the medium term.

Eurostat said prices in the 19-country euro zone rose 0.8% on the year,

down from its earlier estimate of 0.9% and lower than the market

consensus of 0.9%.

Eurostat also said the bloc’s trade surplus with the rest of the world rose to

14.7 billion euros ($16.2 billion) in August, from 11.9 billions the previous

year, as imports fell more than exports.

The revised inflation reading marked a more pronounced slowdown than

August’s 1.0%. It was the lowest rate since November 2016, when prices

rose 0.6%.

However, a narrower inflation indicator, which strips out volatile energy

and unprocessed food prices and is monitored closely by the ECB, rose to

1.2% in September from 1.1% in August, in line with earlier Eurostat

estimates on Oct. 1.

Excluding energy, food, alcohol and tobacco, inflation grew 1.0% in

September, Eurostat said, confirming earlier figures.

The revision of the headline figure was caused by lower-than-expected

inflation for industrial products, another worrying sign for euro zone

manufacturers, who are facing drops in output and in confidence.

Prices for industrial goods, excluding energy, went up 0.2% on the year in

September, Eurostat said, revising its earlier 0.3% estimate.

Energy prices were confirmed falling by 1.8%. Inflation for service, the

largest segment of the euro zone economy, rose 1.5%, in line with previous

estimates.

The trade data also released on Wednesday confirmed manufacturing’s

difficulties. Exports of goods to the rest of the world fell by 2.2% on the year

in August.

Imports dropped even more, 4.1%, as global trade tensions seemed to

take their toll. Trade among euro zone states also fell 5.6% on the year.

Despite U.S. threats and sanctions against global partners, the latest data

showed widening gaps. The EU trade surplus with the United States grew

to 102.7 billion euros in the period from January to August, from 90.6

billions the year before.

The EU’s trade deficit with China grew to 127.4 billion euros over the same

period, from 116.3 billions a year earlier.

<< Back to news headlines >>

China's Ant Financial in talks for loan of up to $3.5 billion at lower rate Wednesday 16th October, 2019 – Reuters

Ant Financial, an affiliate of China’s largest e-commerce company

Alibaba Group (BABA.N), is in talks for a syndicated loan of up to $3.5

billion at a lower rate to slash debt costs, Bloomberg reported on

Wednesday, citing unnamed sources.

The company is in discussion with lenders for a $2.5 billion financing that

comes with a $1 billion greenshoe option, Bloomberg said.

The price talk for the three-year loan margin is less than 100 basis points

over Libor, Bloomberg reported.

Ant Financial was not immediately available for a comment.

<< Back to news headlines >>

Huawei's third-quarter revenue jumps 27% as smartphone sales surge Wednesday 16th October, 2019 – Reuters

Huawei Technologies Co Ltd’s third-quarter revenue jumped 27%, driven

by a surge in shipments of smartphones launched before a trade

blacklisting by the United States expected to hammer its business.

Huawei, the world’s biggest maker of telecom network equipment and

the No. 2 manufacturer of smartphones, was all but banned by the United

States in May from doing business with American companies, significantly

disrupting its ability to source key parts.

The company has been granted a reprieve until November, meaning it

will lose access to some technology next month. Huawei has so far mainly

sold smartphones that were launched before the ban.

Its newest Mate 30 smartphone - which lacks access to a licensed version

of Google’s (GOOGL.O) Android operating system - started sales last

month.

Huawei in August said the curbs would hurt less than initially feared, but

could still push its smartphone unit’s revenue lower by about $10 billion this

year.

The tech giant did not break down third-quarter figures but said on

Wednesday revenue for the first three quarters of the year grew 24.4% to

610.8 billion yuan.

Revenue in the quarter ended Sept. 30 rose to 165.29 billion yuan ($23.28

billion) according to Reuters calculations based on previous statements

from Huawei.

“Huawei’s overseas shipments bounced back quickly in the third quarter

although they are yet to return to pre-US ban levels,” said Nicole Peng,

vice president for mobility at consultancy Canalys.

“The Q3 result is truly impressive given the tremendous pressure the

company is facing. But it is worth noting that strong shipments were driven

by devices launched pre-US ban, and the long-term outlook is still dim,”

she added.

“STRONG PERFORMANCE”

The company said it has shipped 185 million smartphones so far this year.

Based on the company’s previous statements and estimates from market

research firm Strategy Analytics, that indicates a 29% surge in third-quarter

smartphone shipments.

Still, growth in the third quarter slowed from the 39% increase the

company reported in the first quarter. Huawei did not break out figures for

the second quarter either, but has said revenue rose 23.2% in the first half

of the year.

“Our continued strong performance in Q3 shows our customers’ trust in

Huawei, our technology and services, despite the actions and unfounded

allegations against us by some national governments,” Huawei

spokesman Joe Kelly told Reuters.

The U.S. government alleges Huawei is a national security risk as its

equipment could be used by Beijing to spy. Huawei has repeatedly

denied its products pose a security threat.

The company, which is now trying to reduce its reliance on foreign

technology, said last month that it has started making 5G base stations

without U.S. components.

It is also developing its own mobile operating system as the curbs cut its

access to Google’s Android operating system, though analysts are

skeptical that Huawei’s Harmony system is yet a viable alternative.

Still, promotions and patriotic purchases have driven Huawei’s

smartphone sales in China - surging by a nearly a third compared to a

record high in the June quarter - helping it more than offset a shipments

slump in the global market.

<< Back to news headlines >>

Sterling falters as Brexit approaches its endgame Wednesday 16th October, 2019 – Reuters

Sterling came off five-month highs and stocks traded sideways on

Wednesday as the European Union and Britain sought to avert a disorderly

Brexit before an EU summit on Thursday.

Hopes of a breakthrough lifted markets on Tuesday, but investors turned

more cautious after looking for a deal during the night that never came.

Conflicting reports about the ongoing talks triggered a series of sharp

moves on the pound. Reports that Germany might use emergency

measures to counter any market panic from a hard Brexit, such as

banning bets on falling share prices, also weighed on morale.

“Most of the good news that could have been anticipated has been

priced in, and now there’s caution it seems on whether we get a deal

today or not,” said Kallum Pickering, senior economist at Berenberg.

Sterling was GBP=D3 down 0.4% against the dollar with investors trading

volatility levels not seen since the 2016 June Brexit referendum.

The pound had strengthened by close to 5% over the past week as

investors rushed to reprice the prospect of a last-minute Brexit deal before

the Oct. 31 deadline.

Euro zone government bonds were also volatile on Wednesday as

investors watched the eleventh-hour talks.

German 10-year government bond yields DE10YT=RR were last flat at -

0.42%, after reaching an 11-week high of -0.397% as Bunds extended a

sell-off that began on Tuesday.

British government 10-year bond yields were down 2.7 basis points at

0.67%, unaffected by data showing inflation in September reached 1.7%

year-on-year, below market expectations.

The pan-European STOXX 600 retreated 0.1%, but Britain's domestically

focused midcaps .FTMC, a gauge of Brexit anxiety, fell 0.8%. Ireland's ISEQ

.ISEQ, another vulnerable index, lost 0.6%.

Earlier, shares rose in Asia. MSCI’s broadest index of Asia-Pacific shares

outside Japan .MIAPJ0000PUS gained 0.5%. MSCI’s gauge of stocks across

the globe .MIWD00000PUS was flat.

“Even though we are most optimistic that a deal does happen, we don’t

think the most likely outcome is that it happens by October 31, so you

would be looking at some form of extension and potentially elections,”

said, Andrew Sheets, chief cross asset strategist at Morgan Stanley.

Third-quarter earnings are expected to show an overall decline in

earnings, which could also weigh on morale, Sheets said. Morgan Stanley

had a below-consensus view on how companies would fare this quarter,

he said.

Europe’s companies are struggling with uncertainties ranging from Brexit

and the U.S.-China trade war to Germany’s manufacturing recession.

Companies listed on the STOXX 600 index are now expected to report a

decline in third-quarter earnings of as much as 3.7%, worse than the 3%

expected a week ago, according to I/B/E/S data from Refinitiv.

Bloomberg reported, citing sources, that China will struggle to buy $50

billion of U.S. farm goods annually unless it removes retaliatory tariffs on

American products, which would require reciprocal action by U.S.

President Donald Trump.

The U.S.-China trade war will cut 2019 global growth to its slowest pace

since the 2008-2009 financial crisis, the International Monetary Fund

warned on Tuesday.

Global gross domestic product is now expected grow 3% in 2019, the IMF

said its latest World Economic Outlook projections, down from 3.2% in a

July forecast, largely because of global trade friction.

U.S. stocks, which typically track the ups and downs of the trade war,

were set to open in the red. S&P 500 futures ESc1 and Nasdaq futures

NQc1 were both down 0.3%.

In commodities, Brent crude LCOc1 shed about 0.1 cent to $58.66 a

barrel. U.S. crude CLc1 rose 10 cents to $52.91 after falling the day before

over fears the trade war would keep squeezing the global economy.

In emerging markets, Turkey’s Halkbank (HALKB.IS) saw its shares and

bonds plunge after U.S. prosecutors charged the state-owned lender with

taking part in a multibillion-dollar scheme to evade U.S. sanctions on Iran.

A day earlier, Washington had imposed sanctions on Turkish officials,

raised tariffs and halted trade talks after Turkey invaded northeastern Syria

in a campaign again Kurdish fighters. Before Turkish markets opened,

authorities banned short selling on seven large Turkish bank stocks,

including Halkbank. Selling shares in the banks only to buy them later in

the session was also banned, authorities said.

<< Back to news headlines >>

Futures slip on renewed U.S.-China trade war concerns Wednesday 16th October, 2019 – Reuters

U.S. stock index futures dipped on Wednesday as a new U.S. bill taking a

hard line on China stoked fresh concerns about a prolonged trade war,

but more positive results from the banking sector provided some relief and

signaled a solid start to the third-quarter earnings season.

Bank of America (BAC.N), the second-largest U.S. bank by assets, rose

2.2% in premarket trading after beating third-quarter profit estimates.

This followed upbeat results on Tuesday from major U.S. banks JPMorgan

Chase & Co (JPM.N), Citigroup Inc (C.N) and healthcare giants Johnson &

Johnson (JNJ.N) and UnitedHealth Group Inc (UNH.N).

Tech heavyweights Netflix Inc (NFLX.O) and International Business

Machines (IBM.N) are due to report later on Wednesday.

Analysts have forecast a 3% drop in third-quarter earnings for S&P 500

companies, projecting their worst quarterly performance in nearly three

years, according to Refinitiv data.

The U.S. House of Representatives passed legislation on Tuesday related to

pro-democracy protests in Hong Kong and the extradition of a Chinese

telecom executive. In response, China warned that bilateral relations

would be damaged if the measures became law.

The two countries have been embroiled in a tit-for-tat tariff war that has

taken a toll on financial markets in the past 15 months and dented growth

in the global economy. Last week, U.S. President Donald Trump

announced a partial trade deal, but it did not include concrete details.

At 7:22 a.m. ET, Dow e-minis 1YMcv1 were down 51 points, or 0.19%. S&P

500 e-minis EScv1 were down 5.75 points, or 0.19% and Nasdaq 100 e-minis

NQcv1 were down 16.25 points, or 0.2%.

A Commerce Department report at 8:30 a.m. ET is likely to show U.S. retail

sales rising 0.3% in September, after a 0.4% gain in August.

Among other stocks, Achillion Pharmaceuticals Inc (ACHN.O) surged

86.8% after drugmaker Alexion Pharmaceuticals Inc (ALXN.O) agreed to

buy the biotech firm in a deal initially valued at $930 million.

PNC Financial Services Group Inc (PNC.N) gained 0.3% after the regional

bank beat Wall Street estimates for quarterly profit.

Eli Lilly and Co (LLY.N) fell 1.5% after the drugmaker said its experimental

pancreatic cancer treatment in combination with a cocktail of

chemotherapies did not meet the main goal in a late-stage study.

<< Back to news headlines >>

Plipdeco leads trading Wednesday 16th October, 2019 – Trinidad Express Newspaper

OVERALL stock market activity yesterday resulted from trading in 16

securities of which five advanced, six declined and five traded firm.

Trading activity on the First Tier Market registered a volume of 146,611

shares crossing the floor of the Exchange valued at $1,440,965.37.

Point Lisas Industrial Port Development Corporation Ltd was the volume

leader with 71,700 shares changing hands for a value of $247,365.

Trinidad and Tobago NGL Ltd registered the day's largest gain, increasing

$0.20 to end the day at $25.72.

Conversely, JMMB Group Ltd registered the day's largest decline, falling

$0.05 to close at $2.10.

CLICO Investment Fund was the only active security on the Mutual Fund

Market, posting a volume of 5,870 shares valued at $141,273.20.

The Second Tier Market did not witness any activity. The SME Market did

not witness any activity.

The USD Equity Market did not witness any activity.

<< Back to news headlines >>

New roundabout, 4-lane carriageway for San Fernando Wednesday 16th October, 2019 – Trinidad and Tobago Newsday

ATTORNEY General Faris Al-Rawi said a mega-road network project to

cater for the development of the San Fernando Waterfront and Skinner

Park will begin in November.

He said the project, funded by the government, will see Lady Hailes

Avenue upgraded into a four-lane dual carriageway from Todds Street,

between Skinner Park and the Southern Academy for the Performing Arts

(SAPA) to Queens Street extension at King’s Wharf.

This is all part of the San Fernando Waterfront Redevelopment project. The

scope of work will entail constructing a roundabout at Connection Drive

(the entrance to Roodal Cemetery), improving the Gulf View Link Road

intersection, extending Rushworth Street to connect to Lady Hailes

Avenue and constructing a pedestrian overpass near Circle Drive

(Embacadere).

The plan was rolled out by the Programme for Upgrading Roads Efficiency

Unit (PURE), a project management unit of the Ministry of Works, during

the first of two mandatory public consultations to obtain a Certificate of

Environmental Clearance (CEC).

Construction and design manager II Saran Robinson said there will be

benefits, including improvement to traffic congestion, the aesthetics of

the environment, improved road network connectivity for future

development and upgrades to existing drainage when the network

becomes operational.

In the interim, she cautioned, there will be some negative impacts, such

as the relocation of residents, environmental pollution during construction,

disruption of sea bathing and traffic congestion.

At the first consultation at City Auditorium, San Fernando on Tuesday last

week, representatives from two churches and the Girl Guides Association

questioned the effect the project would have on their respective

properties.

Moderator of the Presbyterian Church the Rev Joy Abdul-Mohan asked

how the waterfront project, which is catering for almost 800 houses at two

different sites, as well as commercial interests, could affect the

Presbyterian Synod, St Andrew's Theological College and Naparima

College, which sits just above the planned development.

Girl Guides manager, south, Marilyn Barker-Duncan and Jacqueline Dolly,

chief commissioner TT, also had similar concerns about their headquarters

at Embacadere, as did a representative from the Revival Times Assembly

Church on King’s Wharf.

Al-Rawi, MP for San Fernando West, where the development is planned,

said their buildings will not be touched.

“The Girl Guides, Court Shamrock, the Synod, St Andrew's, Naparima

College – none of these buildings will be impacted negatively. They are

very much impacted positively, because their land value begins to

skyrocket.”

He said the plan was well thought out to minimise any glitches such as

land acquisition.

He said to cater for the waterfront development – which includes the

fishing port, Plaza San Carlos, the removal of the PTSC bus yard to make

way for housing position, developing the hospital car park, the Anglican

Church development and a new magistrates' court at Irving Park – the

road network is essential to take care of the volume of users about to

come in.

"This is big news for San Fernando," he said.

<< Back to news headlines >>

S&P confirms First Citizens rating Wednesday 16th October, 2019 – Trinidad and Tobago Newsday

STANDARDS & Poor's (S&P) has reaffirmed the First Citizens Group's

BBB/Stable/A-2 rating. The bank, in a press release on Monday, said the

rating was a clear reflection of the group’s sound position in governance,

corporate banking and solid operation revenue, coupled with excellent

capitalisation ratios, as highlighted in the report.

The S&P report said: “The ratings on FCBL reflect its steady market position

as the second largest bank in TT’s banking system in terms of loans and

deposits and its well-established footprint in the corporate banking

business. However, the bank has been focusing on expanding its retail

presence in the past two years, which is accelerating credit growth.”

On prospects for the bank, it said: “The stable outlook on First Citizens Bank

Ltd (FCBL) for the next two years reflects our expectation that it will

maintain its current market position and satisfactory operating

performance, reflected in steady profitability metrics and manageable

asset quality metrics.”

Group CEO Karen Darbasie said the affirmation by S&P was a testament

to the sound governance and risk-management policies, consistent hard

work and commitment exhibited by group’s key stakeholders including

the board, management and staff."

<< Back to news headlines >>

Dominica to benefit from new climate resilience project Tuesday 15th October, 2019 – Dominica News Online

Dominica will be one beneficiary of a new project, focused on improving

local resilience to hurricanes and climate extremes in the Eastern

Caribbean.

The 3-year project, being executed by the Caribbean Natural Resources

Institute (CANARI), was announced on Sunday, in recognition of

International Day for Disaster Risk Reduction – 2019.

Titled, “Civil society-led solutions for community-based and ecosystem-

based disaster risk reduction and resilience in the Eastern Caribbean”, it

will be concentrated in Dominica, Antigua and Barbuda, along with

Grenada.

The countries were chosen because of the severe impact of hurricanes in

recent times – Grenada, from Hurricane Ivan in 2004 and Antigua and

Barbuda and Dominica, from Hurricanes Irma and Maria in 2017.

CANARI has explained that it will work closely with six partner civil society

organizations (CSOs) and community stakeholders on the ground in the

countries, to strengthen their organizational and technical capacity to

deliver integrated Eco-Disaster Risk Reduction (Eco-DRR) and Community-

Based Disaster Risk Reduction (CBDRR) solutions.

A regional dialogue will be held to gain common understanding on – and

best practices for – building resilience, what this means for Caribbean

Small Island Developing States (SIDS) and the role of CSOs.

Partner-CSOs will then be supported in their efforts with small grants and

mentoring sessions.

Direct beneficiaries of the project will include around 4,000 persons living

in six high-risk communities – half of them women – as well as National

Disaster Offices and CSOs working in disaster risk management in the

target countries.

The project is being funded by the Inter-American Foundation (IAF) and

will be implemented from 2019 to 2022.

<< Back to news headlines >>

Budget day is 20 November 2019 Tuesday 15th October, 2019 – Now Grenada

2020 budget will be presented on 20 November 2019

National Sustainable Development Plan will become guide for 2020 to

2035 budget presentations

Finance Minister Dr Keith Mitchell will be presenting the 2020 budget on 20

November 2019, almost 6 weeks after the ceremonial opening of the Third

Session of the Tenth Parliament.

During the opening Head of State, Governor-General Dame Cécile La

Grenade in her Traditional Throne speech, disclosed that the National

Sustainable Development Plan will become the guide for all budget

presentations from 2020 to 2035.

The plan will officially be presented to parliament the same day that the

budget will be presented.

“The policy agenda guiding the general path followed by my

government for the fiscal year 2020 will be aligned with the goals of the

National Sustainable Development Plan, (NSDP). In fact, the national plan

will provide the strategic direction for all national budgets for the ensuing

years through 2035,” the Governor-General told the joint sitting of the

Houses of Parliament.

“The strategic priorities of the 2020 budget and the work programmes of

all ministries, departments and agencies are framed within the context of

my government’s medium-term agenda, which guides public sector

implementation of the strategic actions that are aligned with goals of the

national plan,” she said.

The NSDP will implement a systematic and coordinated framework to

guide Grenada’s sustainable development agenda from 2020 to 2035.

The plan focuses on promoting balanced, harmonious, and inclusive

development in Grenada.

The cabinet on Tuesday met in the special meeting to approve votes for

the budget. The Finance Committee which includes all members of the

Lower House or House of Representatives is also expected to review and

approved allocated in the budget before it is officially presented to the

house and debated.

<< Back to news headlines >>

TSTT raises over - $2.7 b on US roadshow Wednesday 16th October, 2019 – Trinidad and Tobago Guardian

A US$400 million 10-year bond offered by the Telecommunications

Services of Trinidad and Tobago (TSTT) has been “significantly over-

subscribed” the T&T Guardian has learned.

This according to a Oppenheimer & Co Inc to TSTT Chief Executive Officer

(CEO) Dr Ronald Walcott dated yesterday.

The bond is expected to consolidate all TSTT’s liabilities into a single facility.

“I want to congratulate you and the TSTT team for successfully completing

this significant and complex transaction,” Tonelli’s letter stated.

“We kicked off the execution process with our official engagement on

April 16, 2019 and initial meetings. There were a number of significant

under­takings including finalising the Offer Memorandum, the Rating

Agency presentations, the preparation of 2018/2019 as well as the

2019/2020 Q1 audit,” it stated.

“Once we officially announced the offering we began an intense and

extensive road­show over a ten-day period, which involved meetings,

presentations, conference calls and Q&A with many of the largest

institutional investors around the world,” the letter stated.

Tonelli said TSTT had to market the company, and this was not easy.

“You and your team did a great job of telling the TSTT story of restructuring

and transformation. This was not an easy story to tell given some of the

fundamentals and the company’s financial performance over the last

three years, while it was executing its strategic plan,” the letter added.

“Additionally the challenges associated with the government’s

outstanding debt to TSTT, the uncertainty of the 49 per cent minority

shareholding of the company and the current leverage were offset by

your Q1 performance, your team’s clarity of your strategic direction and

your demonstrated knowledge of the business,” it stated.

Tonelli said the bond would be at a rate of 8.875 per cent.

“As a result, we are pleased to advise that the book was significantly over-

subscribed. Additionally, we are pleased to have been able to price the

bond at a yield of 8.875 per cent which is well within our initial estimates,

given the ratings, and below the rate we projected in the financial model.

Looking at the comparisons in the market, this rate is excellent and the

team should feel justifiably proud of this accomplishment,” it stated.

<< Back to news headlines >>

Unmitigated oil spill in Payara field could significantly impact Region One

– EIA Wednesday 16th October, 2019 – Kaieteur News

Should an oil spill occur in the Payara field of the Stabroek Block, it is likely

to have a significant impact on Region One. This is according to the

Environmental Impact Assessment (EIA) that was done on the project by

Environmental Resources Management (ERM), a consultancy firm that is

based in the United Kingdom.

The EIA, which was perused by Kaieteur News, states that if spilled oil

reaches the coast in Region One. The risks of oiling nesting beaches could

pose inter-generational risks to marine turtles. It also states that other

physical and biological resources such as air quality, seabirds, marine fish,

and marine benthos could also be impacted.

Elaborating further, the ERM stated in the report that an unmitigated oil

spill could potentially impact Guyanese fisher folk. It noted however, that

the magnitude of this impact would depend on the volume and duration

of the release as well as the time of year at which the release were to

occur (e.g., whether a spill would coincide with the time of year when

these species are more abundant in the Project Development Area).

In light of the sensitivity of many of the resources that could be potentially

impacted by a spill such as Shell Beach Protected Area, marine

mammals, critically endangered marine turtles, coastal Guyanese and

Amerindian communities reliant on ecosystem services for sustenance

and their livelihood, the EIA stressed that preparation for spill response is

warranted.

In this regard, it was noted that ExxonMobil’s subsidiary, Esso Exploration

and Production Guyana Limited (EEPGL) will implement from time to time,

regular oil spill response drills, simulations, and exercises. Kaieteur News

also understands that EEPGL will involve appropriate Guyanese authorities

and stakeholders in these activities and document the availability of

appropriate response equipment on board the FPSO as well as offsite

equipment required to be mobilized for a timely response.

PAYARA PROJECT OVERVIEW

According to documents in the possession of the Environmental

Protection Agency, EEPGL’s Payara development will be located in the

eastern area of the Stabroek Block which is approximately 190 km (118

miles) from Georgetown.

The operator notes that oil production from Payara is expected to last at

least 20 years with startup of the facilities expected to occur

approximately in mid-2023.

EEPGL noted that it will drill approximately 35 to 45 wells offshore to

support extraction of the oil from below the sea floor. It said that each well

will be drilled using a floating drill ship. Also, each well will be directionally

drilled to specific reservoir targets generally 4,000 to 5,500 meters (m)

below the sea level.

Further to this, EEPGL said it will install some of the oil production facilities

on the sea floor at approximately 1,500-1,980 m (4,900-6,500 ft.) water

depth. It said that these subsea facilities include various types of pipes

and hardware.

Kaieteur News understands that the subsea facilities allow the oil from the

wells to be gathered and moved to the surface of the ocean for further

processing. EEPGL will then install other oil production facilities on a vessel

which floats on the surface of the ocean. The vessel is called a Floating

Production, Storage, and Offloading (FPSO). It will be moored on location

in approximately 1,800-1,980 m (5,900-6,500 ft.) of water depth and will

remain on location throughout the life of the facility. EEPGL said that oil

production facilities on the FPSO will further process the oil extracted from

below the sea floor.

The operator also stated that the FPSO will have the capacity to produce

up to approximately 180,000 to 220,000 barrels of oil per day. During the

early stage of production operations, the FPSO is anticipated to produce

up to an average of approximately 5,700,000 to 6,600,000 barrels of crude

oil per month. These estimates are preliminary and are subject to change.

Further to this, it was noted that the Project is expected to employ up to

600 persons during development well drilling, approximately 600 persons

at the peak of the installation stage, and up to about 140 persons during

production operations.

<< Back to news headlines >>

Indigenous leaders urged to craft plan to benefit from oil and gas

resources Wednesday 16th October, 2019 – Kaieteur News

Production of oil is expected to commence in the first quarter of 2020, and

the country is projected to receive more than $62Billion (US$300M) in the

first year. With this in mind, the Director of the Department of Energy (DE),

Dr. Mark Bynoe has called on Indigenous leaders to craft a strategic plan

to ensure their communities benefit equally from those resources.

Dr. Bynoe was at the time addressing the over 200 Toshaos and other

Indigenous leaders in Georgetown for the 13th National Toshaos Council

(NTC) conference at the Arthur Chung Conference Centre (ACCC).

He said, “It must not just be a band-aid solution to address an immediate

need, it should be focused towards where is it you want to go as a

community, as a village and how is it you are going to get there… the

biggest question that people ask is ‘when the monies begin to flow, how

much will come to my region?’ The first thing I say is to have a plan… that

in time to come you can have a defined pathway of how you will be able

to improve the wellbeing of your people,” Dr. Bynoe advised the leaders.

The Director also explained that Guyana will not automatically be

transformed with first oil since the $62Billion only represents about 10% of

Guyana’s current Gross Domestic Product (GDP).

“It is important that we understand that as we move forward within this

sector… that we need to prioritise. Government also needs to prioritise as

there are multiple demands on the limited resources, they have at their

disposal inclusive of improvement in health care, education, enhanced

infrastructure, enhanced water quality, while also seeking to ensure that

we have more sustainable livelihood opportunities,” the director stated.

While providing an overview of the new and emerging sector, Dr. Bynoe

explained that in terms of direct benefits, Guyana is entitled to two

percent royalty and 12.2 percent of profit oil in the initial stages. As it

relates to direct employment opportunities, to date there are over 1,300

Guyanese who are already employed directly in the sector. Guyana has

also benefitted from over $150M already injected into the sector.

He further outlined that going forward, indirect benefits will include

associated gas which can help in electricity stability and the reduction of

the cost of energy; and even more training opportunities. Dr. Bynoe

added that while the administration is keen on ensuring all Guyanese are

getting their ‘fair share’, just as important is the fact that their capacity is

built through training to ensure they are working alongside those external

experts to ensure those skills are transferred.

The Toshaos called for more education and awareness programmes on oil

and gas within the hinterland villages. Dr. Bynoe said that the department

has recognised the need to conduct more awareness sessions in these

areas and will be moving in that direction.

Guyana first discovered oil in May 2015. To date, ExxonMobil has made 14

discoveries that approximate around 6 billion recoverable barrels of oil;

while Tullow has made 2 discoveries.

<< Back to news headlines >>

Govt Finances Face 3-Year Dorian Blow Tuesday 15th October, 2019 – Tribune 242

Hurricane Dorian will likely throw the government's finances off-track for

the next three years, the deputy prime minister has revealed, although its

fiscal "fundamentals" have not altered.

K Peter Turnquest told Tribune Business that a "three-year run-out period"

was "not unreasonable" given the extent of the devastation inflicted by

the category five storm on infrastructure and other public assets, as well as

multiple communities in Abaco and east Grand Bahama.

This indicates that Dorian has blown the government's fiscal consolidation

plan off-course until 2021-2022 at least, although the scale of the damage

is likely to progressively decrease from the projected $436m increase in

the 2019-2020 deficit during future years.

Mr Turnquest, meanwhile, said he was "personally disappointed" that

Dorian had prevented the Government's finances from "turning the

corner" and achieving a surplus that would enable it to start paying down

the $8bn-plus national debt.

Arguing that the Minnis administration was "on track" to achieve this until

the storm smashed into The Bahamas, he said the "fundamentals" of the

Government's fiscal consolidation plan had not changed and pledged

that it would not be distracted by Dorian from its ultimate long-term goals.

Warning against unchecked public spending post-Dorian, particularly that

which failed to produce results, Mr Turnquest said that while the

Government may not achieve its 10 percent cut in discretionary

expenditure it was seeking to reinforce the "belt tightening" message

across all ministries and agencies.

Speaking after he revealed that Dorian is forecast to produce a more-

than-quadrupling in this year's forecast fiscal deficit to $573.4m, Mr

Turnquest suggested the storm's aftermath will force the Government to

deviate from its fiscal projections for the remainder of the current

administration's term.

"Without pre-empting the Fiscal Responsibility legislation or Act, and

strategy report we plan to do in November, I think a three-year run-out

period for this upturn in debt and spending is not unreasonable," he told

Tribune Business.

"There are those who will say it's too aggressive, and we maybe ought to

go to five years and longer, but the plan we've put in to-date - which was

for three years, and people said was too aggressive - has been working.

The economy has been growing, the unemployment numbers dropping,

so all those statistics prove we were on the right path."

Mr Turnquest's mention of November refers to the fact that the Fiscal

Responsibility Act requires the Government to present an adjustment plan

if it is likely to miss its financial targets. This must detail the measures it will

take to get its consolidation plan back on track, and estimates of how

long it will take to do so.

This plan is to be presented to both parliament and the Fiscal

Responsibility Council (FRC) in November as part of the upcoming 2019

Fiscal Strategy Report, while a post-Dorian budget will outline changes to

revenue and spending along with requests for additional borrowing.

Dorian's effects will be with The Bahamas for many years to come,

although the bulk of the financial impact will be felt in the early years as

restoration efforts start to ramp up.

From a 2019-2020 fiscal perspective, the storm is forecast to wipe out

$215m, or eight percent, of full-year revenues while extra spending to

rebuild utility infrastructure, public health clinics, temporary housing and to

deliver government services in the impacted areas has been pegged at

just over $222m.

"The personal disappointment is that we weren't able to continue with the

reform agenda," Mr Turnquest told Tribune Business, pointing to the

progress made by the Government in slashing the 2017-2018 deficit to

$222.4m.

Arguing that the Minnis administration had been "on track" to eliminate

the persistent nine-figure annual deficits that have plagued The Bahamas

for decades, he added: "That's the only disappointment I have from a

personal perspective; that we didn't actually get to turn the corner and

get on with the new norm and paradigm of surpluses, so that we can pay

down these debts in an aggressive way."

Promising that not even Dorian would deflect the Government from this

goal, Mr Turnquest continued: "The fundamentals of what we're trying to

do have not changed. We have to continue to be aggressive with the

consolidation plan, using aggressive revenue collection and compliance,

and being aggressive on cutting costs and using technology to be as

efficient as possible, and using good procurement practices to get better

value for money.

"If we keep these things in mind, and don't get distracted by the impact of

this storm with spending, we should be OK and get ourselves back on a

reasonable path in a reasonable time."

Mr Turnquest said the Government's bid to cut discretionary spending by

10 percent, in an effort to narrow the deficit as much as possible and free-

up monies for Dorian-related spending, was targeted at items that were

non-policy priorities.

"We've put before Parliament a very aggressive budget," he explained.

"Amongst the items in the Budget are some high priority policy items and

some other things that can be repurposed. We're asking all agencies and

ministries to look at those items - not the critical policy imperatives - and

see how they can possibly delay or amend those priorities so they're more

affordable in the short-term.

"We may or may not be able to achieve 10 percent. We are sending the

message these are not normal times. We are all going to have to tighten

our belts to fit into the fiscal window and land on the target."

The discretionary spending cuts, though, will not touch at least 80-90

percent of the Budget which has already been allocated to fixed costs,

such as debt servicing and principal repayment, civil service salary costs

and rents for government buildings.

Mr Turnquest, though, warned against runaway spending in times of

disaster. "To the naysayers who have taken the traditional approach to

public finances; that we must spend in times of difficulty, what we've

been able to demonstrate up to now is that while that is true to some

extent, we must not saddle ourselves with debt, particularly debt that

does not show results at the end of the day," he added.

"It must be managed and controlled so that we do not fool ourselves into

thinking we can drive consumption through spending."

<< Back to news headlines >>

Royalfidelity: $1bn Goal As 'Caribbean's Premier' Tuesday 15th October, 2019 – Tribune 242

RoyalFidelity is now focused on becoming "the premier Caribbean

investment bank and wealth manager" after its management-led buyout

closed last Wednesday, its president has revealed.

Michael Anderson, pictured, confirming that all necessary regulatory

approvals in The Bahamas and Barbados have been received, told

Tribune Business that the merchant bank is aiming to grow assets under

management by 25 percent over the next year to hit the $1bn mark by

end-2020.

Expressing "relief" that RoyalFidelity's purchase from Royal Bank of Canada

(RBC) and its parent group had finally closed, some eight months after it

was first announced, Mr Anderson said the way was clear to "focus on

building our business again".

He revealed that top RoyalFidelity executives, including those from

Barbados and the Cayman Islands, will meet in early November to

develop a strategy for regional expansion that includes penetration of the

eastern Caribbean.

Mr Anderson added that RoyalFidelity's Nassau office will remain the

headquarters for its back office functions and information technology (IT)

systems, acting as the springboard for its growth plans, and its workforce is

expected to hit 50 before year-end via the hiring of four more staff.

He added that RoyalFidelity is aiming for its Caribbean operations to be "if

not larger, at least as big as The Bahamas" within the next five years. This

nation currently accounts for 80 percent of its activities, and Mr Anderson

said he expected local business to maintain its present ten to 15 percent

annual growth rate for "the next three years".

Regional expansion, though, stands to get a major boost from the

imminent acquisition of its former parent group's Cayman Islands pension

administration portfolio, which Mr Anderson said was anticipated to close

in early November pending the necessary regulatory approvals.

He added that this would add $150m in assets under management to

RoyalFidelity's total, taking it close to the $1bn mark it is targeting for end-

2020.

"We closed the transaction Wednesday," Mr Anderson told Tribune

Business, adding that his reaction was "one of relief" given that the buyout

of previous 50/50 owners, RBC and BISX-listed Fidelity Bank (Bahamas),

had first been announced in early February.

"It's just taken a long time," the RoyalFidelity chief added. "It's one of

opportunity. Like I said before we've got a huge opportunity to move into

new markets such as Cayman. I'm encouraged that we've got most of this

out of the way and can focus on building the business.

"The discussions around transactions get complex, and a lot of people are

involved, so it distracts from the day-to-day business. We can now focus

on building our business again."

Mr Anderson said RoyalFidelity will place great emphasis on its technology

platform to drive efficiencies and business development as it seeks to

penetrate new regional markets and establish a solid business book in

each one it targets.

"We have a strategic meeting at the beginning of November, bringing all

of our people together, including Cayman, to talk about how to improve

our technology to create efficiencies and develop business across the

region," he explained.

"We're looking to grow our pensions and asset management business

across the region, not just in Cayman and The Bahamas. As we broaden

our business, we have to have the technology available to us to drive and

manage that.

"We're centralising administration in The Bahamas to manage that for all

the region, so all the back office and IT systems will be run through the

Nassau office," Mr Anderson continued. "We've been adding staff since

we moved up on East Hill Street in February. We currently have 46 staff,

and expect to be at 50 before the year ends."

RoyalFidelity has hired six staff since the buyout was announced, and Mr

Anderson said the merchant bank was still finalising employment terms

and other issues relating to employees who were expected to come

across to it from the former Fidelity parent group.

While its Cayman pension acquisition is expected to close imminently, the

RoyalFidelity chief said the initial pace of its Caribbean expansion was

difficult to predict. "It's with the regulators, and all information has been

supplied," Mr Anderson said of the pension deal. "Some time between the

end of October and early November we will get that one closed.

"It's difficult to tell," he added of how quickly the Caribbean roll-out will

likely occur. "We've got to enter new markets, start marketing and build a

presence. It takes a little while to build results. Next year will be more

formative in setting up, and going forward we will expect to see more

significant growth."

Mr Anderson said the pace of Caribbean expansion would have to be

rapid if RoyalFidelity was to lessen its reliance on The Bahamas, given that

it is projected to maintain present 10-15 percent growth rates for the next

three years.

"Today The Bahamas is 80 percent, a big part of our business," he told

Tribune Business, "but in the next five years we'd expect the other

businesses to be, if not larger, at least as big as The Bahamas. Although

The Bahamas will have the majority of our business for some time to come,

as those markets grow they will gain in proportion to the total.

"We continue to grow our business across all business lines in The Bahamas,

each one of our areas growing by a typical 10-15 percent for the last five

years. We expect to grow in that same area for the next three years to

come. With a high degree of liquidity in the market, and people looking

for higher return investment opportunities, we see more people coming in

to funds and asset management."

Unveiling RoyalFidelity's goal to become "the premier investment bank

and wealth manager in the region", Mr Anderson told Tribune Business:

"We want to be a Caribbean regional financial services entity; asset

manager, wealth manager and pensions provider. We believe there is a

massive opportunity in pensions across the region as more and more

people start to recognise the need for pensions."

With the merchant bank's assets under management currently standing at

$800m, he added: "We expect to be close to $1bn by the end of next

year. The Cayman acquisition will add $150m to assets under

management, and we believe by the end of next year we will get to the

$1bn mark."

<< Back to news headlines >>

Despite LatAm slump, Dominican economy to grow 5%: IMF Wednesday 16th October, 2019 – Dominican Today

The International Monetary Fund (IMF) on Tue. predicted that Latin

America and the Caribbean will experience economic growth of just 0.2%

during 2019, a significant reduction from the 1.4 % expansion projected in

April.

The Fund attributed the trend to a lower growth than expected in the two

largest economies in the region, Brazil and Mexico, the Argentine crisis

and the severe Venezuelan depression, whose domestic product will

shrink this year by a third.

The IMF projected that Latin America will rebound and grow 1.8% next

year. During 2018 the expansion had been 1%, according to the AP.

The countries with the best performance this year will be Dominica (9.4%),

Dominican Republic (5%), Guyana (4.4%) and Panama (4.3%).

<< Back to news headlines >>