SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: esmart@caricris.com

▪ NIF Holding Company Limited’s TT$4 billion issue rating reaffirmed CariAA

▪ Goddard Enterprises Limited’s rating reaffirmed at CariAA-

▪ NCB Global Finance Limited’s initial rating assigned at CariA

▪ RHAND Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Development Bank of Jamaica Limited’s rating upgraded to CariA- ▪ Bourse Securities Limited rating reaffirmed at CariA- ▪ PLIPDECO’s rating reaffirmed at CariA+

▪ The Government of the British Virgin Islands’ rating reaffirmed at CariAA-

▪ Venture Credit Union Co-operativ Society Limited’s rating reaffirmed at CariBBB-

▪ Eastern Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Trinidad and Tobago Unit Trust Corporation’s initial rating assigned at CariAA

▪ Massy Holdings Ltd. rating reaffirmed at CariAA+

▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA

▪ National Flour Mills Limited’s rating reaffirmed at CariA-

OUR UPCOMING WORKSHOPS!

Enterprise Risk Management 16th & 17th July 2019 Jamaica

Benefits of a CariCRIS Rating for a Bond Issue:

Latest Rating Actions by CariCRIS

• Widen the range of possible investors to ensure success of the issue

• Provide a clear understanding of the creditworthiness of the issuing firm and

the factors that will impact its performance

• Utilise a standardised system in order to compare the credit quality of one

bond issue relative to another

DATE

WORKSHOP

COUNTRY

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

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REGIONAL

Trinidad and Tobago

$387,000 from BPTT for YTEPP

Chairman of the Youth Training Employment Partnership Programme

(YTEPP) Thora Best said yesterday energy giant BPTT donated $387,000 to

its programmes.

NCB leads the way

Overall stock market activity yesterday resulted from trading in 16

securities of which six advanced, seven declined and three traded firm.

Atlantic Train One on turnaround track

Atlantic's Train One has apparently avoided being mothballed. Newsday

has been told the shareholders have decided to do a turnaround (TAR)

maintenance schedule, which has been significantly scaled back from

the original maintenance and upgrade plan – the Life Extension Project –

from 110 days to 40 days.

Central Bank: T&T economy grew in Q1, 2019

Trinidad and Tobago has experienced an energy led recovery in

domestic economic activity during the first half of fiscal year 2018/19

according to the Central Bank’s June monetary policy announcement.

Barbados

Another upgrade

Barbados has received its second credit rating upgrade in the last seven

months. Yesterday, international rating agency Moody’s announced that

having seen improvements in the country’s debt position, it raised

Barbados’ foreign and local currency issuer ratings to Caa1 from Caa3,

affirmed the foreign currency senior unsecured bond rating at Caa3, and

maintained the stable outlook.

Massy staff down tools

Staff at Massy Distribution are off the job.

Jamaica

Key fails capital test - Launches turnaround plan under FSC guidance

Key Insurance Company, known for its motor and property policies, has

developed a turnaround plan for the business to achieve profitability and

improve its capital ratios.

Salamander to manage Half Moon

The board of directors of Half Moon, one of the Caribbean's most iconic

resort destinations in Montego Bay, Jamaica, announced that it selected

Salamander Hotels & Resorts to manage the award-winning 400-acre

property.

Sagicor Select Funds IPO opens today

Sagicor Select Funds Limited's (SSFL) Initial Public Offering (IPO) is now

open and will close on July 17. With Sagicor Investments as the lead

arranger and lead broker, the IPO is seeking to raise up to $2.5 billion (with

a right to upsize by an additional $1.5 billion).

Petroleum of Venezuela seeks compensation for Petrojam

PETROLEUM of Venezuela (PDVSA) has brought a compensation claim

against the Government of Jamaica (GoJ) over the take-back of the 49

per cent shares which the company owns in the island's State oil refinery,

Petrojam.

NWA says Corporate Area roadworks to wrap by end of summer

THE Constant Spring Road expansion work which began in February last

year is roughly 70 per cent complete, while the Hagley Park Road project

is over 80 per cent finished, according to Stephen Shaw, communications

manager at the National Works Agency (NWA).

Antigua and Barbuda

The Five Islands Campus: New University of the West Indies in Antigua-

Barbuda

I am honoured to report that the chancellor, Robert Bermudez, and the

council of The University of the West Indies (UWI) have formally approved

the establishment of a campus of The University of the West Indies in

Antigua and Barbuda, within the broader context of the country’s

membership of the Organization of Eastern Caribbean States (OECS).

Costa Rica

Boston Scientific Will Hire 600 New Employees in Costa Rica

The multinational company Boston Scientific, dedicated to the design,

manufacture, distribution, and sale of medical devices less invasive of the

highest technology, announced that it will hire 600 people in the

remainder of 2019.

Government Launches Tourism Campaign to Promote Development and

Economic Reactivation of Limón

Intended for national tourists, last Friday was launched the advertising

campaign “Come to Limón! What do you like to do in the Caribbean?”,

an invitation to vacation and explore the cultural, gastronomic diversity,

the varied tourist destinations and sites, the charisma and the flavor of the

Limonene population, which is one of the most exuberant regions of the

country.

The Bahamas

IMF Lowers Bahamas 2019 Growth To 1.8%

The International Monetary Fund (IMF) last night cut The Bahamas'

projected real GDP growth for 2019 to 1.8 percent and warned that

external risks facing this country "have increased".

Nassau Hotels Hit 34% Room Revenue Increase

New Providence hotels saw average room rates for the four months to

end-April hit the $300 mark as Easter added further fuel to the year-to-

date 34 percent increase in room revenue.

Panama

Fitch gives new president cautious thumbs up

Laurentino Cortizo's first speech as president and his fiscal conservatism

produced a favourable reaction from the Fitch rating agency on Tuesday,

July 2. A statement says that the new administration is likely to maintain

the continuity of economic policies while prioritizing constitutional reform

to strengthen institutions.

Panama continued

Dollarama to acquire 50.1 percent interest in Latin American value retailer

Dollarcity

Dollarama announced Tuesday that it entered into a definitive stock

purchase agreement to acquire a 50.1 percent interest in Latin American

value retailer Dollarcity. The purchase price is based on a five-times-

multiple of Dollarcity’s EBITDA, minus net debt and subject to customary

adjustments, and will be settled in cash using available free cash flows.

Venezuela

Venezuela's June oil exports recover to over 1 million bpd: data

Venezuela’s oil exports recovered in June from a sharp drop the month

before, helped by increased deliveries to China, which is now state-run oil

firm PDVSA’s primary destination for its crude, according to company

records and Refinitiv Eikon data.

Venezuela to blend domestic, imported oil to keep exports afloat: oil

minister

Venezuela will stick to its plan of blending domestic and foreign crude to

maintain and even increase oil production and exports in the face of

sanctions prohibiting U.S. companies from buying the country’s oil, oil

minister Manuel Quevedo said on Tuesday.

Other Regional

Digicel expects debt levels to rise

Telecoms provider Digicel Group posted a nine per cent drop in its

earnings for its fourth quarter ending March 2019, and is expecting its debt

levels to rise.

INTERNATIONAL

United States

Futures eke out gains as bond yields tumble on growth fears

U.S. stock index futures edged higher on Wednesday, as benchmark bond

yields tumbled on fears of a global recession and expectations of interest

rate cuts by central banks.

United States continued

U.S. private sector adds 102,000 jobs in June

U.S. private employers added 102,000 jobs in June, below economists’

expectations, a report by a payrolls processor showed on Wednesday.

U.S. weekly jobless claims fall more than expected

The number of Americans filing applications for unemployment benefits

fell more than expected last week, pointing to sustained labour market

strength that should help support a slowing economy.

United Kingdom

UK economy shrinks as Brexit, global worries mount

Britain’s economy appears to have shrunk for the first time since late 2012

between April and June as worries about Brexit were compounded by

global trade tensions, a closely watched survey showed on Wednesday.

Europe

Europe rallies as bond yields drop to new lows

Investors returned to bonds on Wednesday, setting off another slide in

benchmark debt yields, amid fears of a global trade war and recession,

bets central banks will cut interest rates and falling oil prices.

Euro zone June business growth slow as factories still faltering

Euro zone business activity picked up slightly last month but remained

weak as a modest but broad-based upturn in the services industry offset a

continued deep downturn in factory output, a survey showed.

Deutsche Bank restructuring to cost up to $5.6 billion

Deutsche Bank expects the cost of a major overhaul in the works to be up

to 5 billion euros ($3.4-$5.6 billion), one person familiar with the matter said

on Wednesday.

China

China to promote cross-border e-commerce in more cities

China will promote cross-border e-commerce in more cities as a key

measure to stabilize trade, state television reported on Wednesday, citing

a state council meeting chaired by Premier Li Keqiang.

Japan

BOJ's Funo says no need to ramp up monetary stimulus now

Bank of Japan board member Yukitoshi Funo said on Wednesday he saw

no need to expand monetary stimulus now, as the economy was moving

in line with the central bank’s projection of a moderate recovery.

Global

Oil prices rise after U.S. crude stockpile drop

Oil prices rebounded slightly on Wednesday after a steep fall in the

previous session as OPEC and its allies’ decision to extend output cuts was

not enough to counter investors’ concerns about the slowing global

economy.

Oil prices rise after U.S. crude stockpile drop Wednesday 3rd July, 2019 – Reuters

Oil prices rebounded slightly on Wednesday after a steep fall in the

previous session as OPEC and its allies’ decision to extend output cuts was

not enough to counter investors’ concerns about the slowing global

economy.

Prices were supported by widely-watched data showing a larger-than-

expected drawdown in U.S. crude oil inventories, with government data

due later in the day.

Brent crude futures LCOc1 for September delivery were trading up 64

cents at $63.04 a barrel by 1136 GMT.

U.S. crude futures for August CLc1 were up 47 cents at $56.72 a barrel.

Both benchmarks fell more than 4% on Tuesday as worries about a slowing

global economy.

The Organization of the Petroleum Exporting Countries and other

producers such as Russia, a group known as OPEC+, agreed on Tuesday

to extend oil supply cuts until March 2020 as members overcame

differences to try to prop up prices.

“We had a pretty sharp correction yesterday so after that, a little rebound

is expected. Globally, the market is concerned about oil demand growth

potential,” Olivier Jakob of Petromatrix consultancy said.

“Extending the cut by six or nine months, it doesn’t really matter if the level

stays the same. If you (OPEC) really wanted to target stock levels, you

would need deeper cuts but Saudi Arabia has already gone beyond its

cut target.”

Ahead of government data due later on Wednesday, industry group the

American Petroleum Institute (API) said that U.S. crude inventories fell by 5

million barrels last week, more than the expected decrease of 3 million

barrels. <EIA/S>

The OPEC+ agreement to extend oil output cuts for nine months should

draw down oil inventories in the second half of this year, boosting oil

prices, analysts from Citi Research said in a note.

“Keeping cuts through the end of 1Q aims to avoid putting oil into the

market during a seasonal low for demand and refinery runs,” they said.

Still, signs of a global economic slowdown hitting oil demand growth

worried investors after global manufacturing indicators disappointed and

the United States opened another trade front after threatening the EU

with more tariffs.

Barclays expects demand to grow at its slowest pace since 2011, gaining

less than 1 million barrels per day year-on-year this year.

Morgan Stanley, meanwhile, lowered its long-term Brent price forecast on

Tuesday to $60 per barrel from $65 per barrel, and said the oil market is

broadly balanced in 2019.

Crude prices were also capped by signs of a recovery in oil exports from

Venezuela in June and growth in oil production in Argentina in May.

<< Back to news headlines >>

BOJ's Funo says no need to ramp up monetary stimulus now Wednesday 3rd July, 2019 – Reuters

Bank of Japan board member Yukitoshi Funo said on Wednesday he saw

no need to expand monetary stimulus now, as the economy was moving

in line with the central bank’s projection of a moderate recovery.

“We can expect Japan’s economy to recover in the latter half of this

year. As such, I see no need to ease policy further now,” Funo told a news

conference after meeting with business leaders in Hiroshima, western

Japan.

<< Back to news headlines >>

Futures eke out gains as bond yields tumble on growth fears Wednesday 3rd July, 2019 – Reuters

U.S. stock index futures edged higher on Wednesday, as benchmark bond

yields tumbled on fears of a global recession and expectations of interest

rate cuts by central banks.

Bond yields around the world slid as trade tensions continued to simmer

despite the recent truce between the United States and China, with the

nomination of IMF chief Christine Lagarde to head the European Central

Bank adding to bets of monetary easing.

The benchmark U.S. 10-year Treasury yields US10YT=RR slipped to their

lowest since November 2016, while the 10-year UK gilts yield fell below the

Bank of England’s main policy rate for the first time in a decade.

Hopes that the Federal Reserve would cut rates to preserve a decade-

long U.S. expansion helped the S&P 500 and the Dow Jones indexes post

their best June performance in decades, with traders now betting for

about a 25% chance the central bank would cut borrowing costs by half

a percentage point at its July 30-31 policy meeting. [MMT/]

Trading volumes are expected to be thin due to shortened trading hours

on Wednesday ahead of the July Fourth holiday.

At 7:18 a.m. ET, Dow e-minis 1YMcv1 were up 57 points, or 0.21%. S&P 500

e-minis EScv1 were up 8 points, or 0.27% and Nasdaq 100 e-minis NQcv1

were up 27 points, or 0.34%.

Investors will also turn their attention to the multiple economic data

scheduled to be released, starting with the ADP National Employment

report at 8:15 a.m. ET.

The private survey is often considered a precursor to the Labour

Department’s monthly jobs report, and is expected to show private

employers added 140,000 jobs last month, compared to an addition of

27,000 jobs in May.

A report from the Census Bureau is likely to show international trade deficit

widened to $54 billion in May from $50.8 billion in April. The data is due at

8:30 a.m. ET.

A Commerce Department report, due at 10:00 a.m. ET, is likely to show

factory orders fell 0.5% in May, after slipping 0.8% in April.

Among stocks, Symantec Corp (SYMC.O) surged 19.4% in premarket

trading after sources told Reuters that chipmaker Broadcom Inc

(AVGO.O) is in advanced talks to buy the cybersecurity firm. Broadcom

fell 4.4%.

Shares of U.S.-listed gold miners gained as prices of the precious metal

rose on safe-haven bets.

<< Back to news headlines >>

U.S. private sector adds 102,000 jobs in June Wednesday 3rd July, 2019 – Reuters

U.S. private employers added 102,000 jobs in June, below economists’

expectations, a report by a payrolls processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National

Employment Report would show a gain of 140,000 jobs, with estimates

ranging from 75,000 to 190,000.

Private payroll gains in the month earlier were revised up to 41,000 from an

originally reported 27,000 increase.

The report is jointly developed with Moody’s Analytics.

The ADP figures come ahead of the U.S. Labour Department’s more

comprehensive non-farm payrolls report on Friday, which includes both

public and private-sector employment.

Economists polled by Reuters are looking for U.S. private payroll

employment to have grown by 153,000 jobs in June, up from 90,000 the

month before. Total non-farm employment is expected to have changed

by 160,000.

The unemployment rate is forecast to stay steady at the 3.6 percent

recorded a month earlier.

<< Back to news headlines >>

U.S. weekly jobless claims fall more than expected Wednesday 3rd July, 2019 – Reuters

The number of Americans filing applications for unemployment benefits

fell more than expected last week, pointing to sustained labour market

strength that should help support a slowing economy.

Initial claims for state unemployment benefits dropped 8,000 to a

seasonally adjusted 221,000 for the week ended June 29, the Labour

Department said on Wednesday. Data for the prior week was revised to

show 2,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims dropping to 223,000 in

the latest week. The Labour Department said only claims for Virginia were

estimated.

Claims data could become volatile in the coming weeks as auto

manufacturers temporarily shut down assembly plants for summer

retooling. Companies implement the plant closures at different times,

which can throw off the model the government uses to remove seasonal

fluctuations from the data.

Claims continue to be watched for signs of an increase in layoffs

stemming from trade tensions between the United States and China.

Rising risks to economic growth from the trade war, and low inflation,

prompted the Federal Reserve to signal last month interest rate cuts as

early as at its July 30-31 meeting.

The four-week moving average of initial claims, considered a better

measure of labour market trends as it irons out week-to-week volatility,

rose 500 to 222,250 last week.

The claims data has no bearing on June’s employment report, which is

scheduled for release on Friday. Nonfarm payrolls probably increased by

160,000 jobs last month after rising by only 75,000 in May, according to a

Reuters survey of economists. The unemployment rate is forecast

unchanged near a 50-year low of 3.6% in June for a third straight month.

The economy is slowing as last year’s massive stimulus from tax cuts and

more government spending fades.

Manufacturing is struggling, the trade deficit is widening again, consumer

confidence is ebbing and the housing sector remains mired in a soft

patch.

The Atlanta Fed is forecasting gross domestic product to rise at a 1.5%

annualized rate in the April-June quarter. The economy grew at a 3.1%

pace in the first quarter following a temporary boost from exports and an

accumulation of inventory.

Thursday’s claims report also showed the number of people receiving

benefits after an initial week of aid fell 8,000 to 1.69 million for the week

ended June 22. The four-week moving average of the so-called

continuing claims slipped 1,750 to 1.69 million.

<< Back to news headlines >>

Europe rallies as bond yields drop to new lows Wednesday 3rd July, 2019 – Reuters

Investors returned to bonds on Wednesday, setting off another slide in

benchmark debt yields, amid fears of a global trade war and recession,

bets central banks will cut interest rates and falling oil prices.

European Union leaders’ nomination of Christine Lagarde, the head of the

International Monetary Fund, to replace Mario Draghi as president of the

European Central Bank reinforced expectations of more monetary policy

easing if it’s needed.

Traders greeted the decision by sinking German 10-year Bund yields to

record lows of minus 39 basis points, lowering Italian two-year yields back

into negative territory for first time in over a year and lifting stocks and U.S.

futures.

The yield on 10-year UK gilts fell 4 basis points to 0.687%, which left it below

the Bank of England’s main policy rate for the first time in a decade. U.S.

Treasury yields slumped to their lowest since late 2016.

“We have already seen some weak data in recent weeks, so that is the

backdrop,” said Elwin de Groot, head of macro strategy at Rabobank.

“And now have Christine Lagarde as the likely successor of Mr Draghi at

the ECB, which for the market says that the dovish policies will continue.”

European shares took little notice of some sizeable decline in Asia’s stock

markets and pushed 0.8% higher. Gains were led by an unusual pairing of

defensive healthcare stocks and carmakers, which both jumped 1.2%.

There was plenty of data to digest, too. Euro area business activity picked

up last month, figures showed, but remained weak. An upturn in services

offset a downturn in factory output.

Worryingly, forward-looking indicators did not point to a rebound, and

other data showed Britain’s economy apparently shrank in the second

quarter.

“The latest downturn has followed a gradual deterioration in demand

over the past year as Brexit-related uncertainty has increasingly

exacerbated the impact of a broader global economic slowdown,” Chris

Williamson, chief business economist at IHS Markit, said of the UK reading.

CROWN ON TOP

In the currency markets, the pound flirted with two-week lows and stood

at $1.2568, on course for its fifth drop in the past six sessions.

The euro was steadier at $1.1282. The dollar dropped to 107.70 yen, off

Monday’s high of 108.535, which followed a weekend agreement

between the United States and China to resume trade talks.

Sweden’s crown reached a 2 1/2-month high of 10.4890 to the euro after

the Riksbank said it remained on track to raise rates by early 2020, albeit

with some caveats. [/FRX]

Oil prices also rose after data showed U.S. crude stockpiles fell more than

expected last week. They remained wobbly, however, after falling more

than 4% on Tuesday, even after OPEC and allies including Russia agreed

to extend supply cuts.

Brent crude futures rose 0.7% to $62.85 per barrel. U.S. West Texas

Intermediate crude futures gained 0.6% to $56.56 a barrel after dropping

4.8% the day before.

Gold gained 0.5% to $1,425.64 per ounce after rising as high as $1,435.99.

<< Back to news headlines >>

Euro zone June business growth slow as factories still faltering Wednesday 3rd July, 2019 – Reuters

Euro zone business activity picked up slightly last month but remained

weak as a modest but broad-based upturn in the services industry offset a

continued deep downturn in factory output, a survey showed.

Worryingly for policymakers at the European Central Bank, who are under

pressure to support growth, forward-looking indicators did not point to a

bounce back and business expectations for the year ahead dropped.

By the end of September, the ECB will either cut its deposit rate or ease its

forward guidance further by pledging to keep interest rates lower for

longer, according to a majority of economists in a Reuters poll. [ECILT/EU]

The European Union’s nomination of IMF chief Christine Lagarde to

replace Mario Draghi at the helm of the ECB has reinforced expectations

for easier monetary policy going forward.

Wednesday’s release of IHS Markit’s Euro Zone Composite Final Purchasing

Managers’ Index (PMI), considered a good measure of overall economic

health, will also do nothing to change those views. It only nudged up to

52.2 in June from May’s 51.8.

That was a touch higher than a preliminary reading of 52.1 but it remained

close to the 50-mark separating growth from contraction.

The upturn was nevertheless evident throughout much of the euro zone,

and earlier figures from three of the bloc’s biggest economies —

Germany, France, and Spain — showed services activity accelerated.

“The continued stagnation in Italy is a worry, while the small rebound in

the Spanish services sector is encouraging,” noted Nicola Nobile at Oxford

Economics.

“Nonetheless, we continue to see the ECB headed for another dose of

monetary policy easing in September as it attempts to reinvigorate the

region’s economy.”

IHS Markit said the survey was indicative of GDP rising just over 0.2% in the

second quarter, weaker than the 0.3% predicted in last month’s Reuters

poll.

It was a different story in Britain, where the PMI suggested the economy

contracted 0.1% last quarter as firms worried about Brexit and the slowing

global economy. [GB/PMIS]

The robust German, French and Spanish readings helped a PMI covering

the wider euro zone services industry bounce to 53.6 from May’s 52.9, a

counterweight to a fifth month of contraction in manufacturing.

[EUR/PMIM]

“There is for now fairly little evidence of the protracted manufacturing

weakness causing significant adverse spill-overs into the euro zone’s

domestic economy,” wrote Nobile.

Monday’s factory PMI indicated there will be a slow start to the second

half for manufacturers as new orders fell for a ninth month, stocks of raw

materials were depleted again, backlogs of work were run down and

headcount was reduced for a second month.

While most of the forward-looking services indexes were positive they

remained weak, and new export business — which includes trade

between member countries — fell for a tenth month. The sub-index

registered 49.4 compared to May’s 48.2.

Citing trade war worries, rising geopolitical uncertainty and slowing global

economic growth, firms were less optimistic. The composite future output

index fell to 59.2 from 59.8, one of its lowest readings in over four years.

<< Back to news headlines >>

Deutsche Bank restructuring to cost up to $5.6 billion Wednesday 3rd July, 2019 – Reuters

Deutsche Bank expects the cost of a major overhaul in the works to be up

to 5 billion euros ($3.4-$5.6 billion), one person familiar with the matter said

on Wednesday.

CEO Christian Sewing flagged an extensive restructuring in May. He

promised shareholders “tough cutbacks” to the investment bank to turn

the lender around after it failed to agree a merger with rival

Commerzbank (CBKG.DE).

The lender, Germany’s largest, is planning on cutting between 15,000 and

20,000 jobs, or more than one in five of its 91,500 employees.

A spokesman for Deutsche declined to comment on the expected cost of

the restructuring. The bank said it was working on measures to accelerate

its transformation so as to improve its sustainable profitability.

“We will update all stakeholders if and when required,” the bank said.

<< Back to news headlines >>

China to promote cross-border e-commerce in more cities Wednesday 3rd July, 2019 – Reuters

China will promote cross-border e-commerce in more cities as a key

measure to stabilize trade, state television reported on Wednesday, citing

a state council meeting chaired by Premier Li Keqiang.

“We will add a new batch of cross-border e-commerce pilot cities on top

of the existing 35 pilot zones,” it said without elaborating.

<< Back to news headlines >>

UK economy shrinks as Brexit, global worries mount Wednesday 3rd July, 2019 – Reuters

Britain’s economy appears to have shrunk for the first time since late 2012

between April and June as worries about Brexit were compounded by

global trade tensions, a closely watched survey showed on Wednesday.

A day after Bank of England Governor Mark Carney warned of the

growing risks from a no-deal Brexit and protectionist trade policies, a

gauge of Britain’s huge services industry — the IHS Markit/CIPS services

Purchasing Managers’ Index (PMI) — slipped to 50.2 in June, just above

the no-growth level of 50.

Economists polled by Reuters had expected the PMI to remain at May’s

level of 51.0.

Equivalent surveys for manufacturing and construction published earlier

this week showed those sectors contracted in June, meaning Britain’s

economy overall probably shrank by 0.1 percent in the second quarter,

IHS Markit/CIPS said.

British gross domestic product last shrank from one quarter to another in

the final three months of 2012, according to official data. The last time

GDP shrank for two or more quarters in a row — the widely accepted

definition of a recession — was in 2008-2009, during the global financial

crisis.

“The latest downturn has followed a gradual deterioration in demand

over the past year as Brexit-related uncertainty has increasingly

exacerbated the impact of a broader global economic slowdown,” said

Chris Williamson, chief business economist at IHS Markit.

“Risks also remain skewed to the downside as sentiment about the year

ahead is worryingly subdued, suggesting the third quarter could see

businesses continue to struggle.”

British government bond yields fell further after the survey, with the yield

on 10-year gilts hitting its lowest level since the months after the 2016 Brexit

referendum.

CURVE INVERSION

Investors see more chance of a cut to British interest rates after Carney’s

speech on Tuesday, in which he said the economy might need more

support to cope with the shock of a no-deal Brexit or an escalation of

global trade tensions.

The yield curve between two- and five-year British government bonds

inverted for the first time since 2008 on Wednesday, suggesting investors

see a risk of recession.

The BoE says Britain’s economy probably flatlined in the second quarter

after strong growth early in the year when companies were rushing to get

ready for the original March 29 Brexit date.

That deadline has since been pushed back to Oct. 31.

Andrew Wishart, an economist with consultancy Capital Economics, said

the pre-March 29 rush accounted for some of the second-quarter

weakness.

“But the fact the surveys have not picked up toward the end of the

quarter, and global manufacturing is slowing, means the risk is that the

economy fails to bounce back in the third quarter,” he added.

Many businesses are alarmed by the prospect of a no-deal Brexit,

something both candidates to replace Theresa May as prime minister

have said they are prepared to do if necessary.

Williamson said the weak reading of Britain’s economy should put pressure

on the Bank of England to add stimulus.

“For policymakers to not loosen policy with the all-sector PMI at its current

level would be unprecedented in the survey’s two-decade history,” he

said.

<< Back to news headlines >>

IMF Lowers Bahamas 2019 Growth To 1.8% Tuesday 2nd July, 2019 – Tribune 242

The International Monetary Fund (IMF) last night cut The Bahamas'

projected real GDP growth for 2019 to 1.8 percent and warned that

external risks facing this country "have increased".

The fund's executive board, in concluding its annual Article IV consultation

with this nation, shaved 30 basis points off the 2.1 percent economic

expansion it had forecast for The Bahamas as recently as April 15 following

the completion of its team's visit.

It warned that global economic developments had increased the

downside risks facing the Bahamian economy, which is especially

vulnerable to external shocks give its openness, reliance on the

performance of other nations and vulnerability to hurricanes and other

forms of natural disasters.

"Growth is projected to reach 1.8 percent in 2019 before converging to its

potential of 1.5 percent in the medium term," the IMF executive board

said in its statement on The Bahamas. "Risks to global growth, particularly

in key trading partners, have increased.

"Slowing external demand or a tightening of financial conditions in key

advanced economies could adversely affect growth prospects.

Vulnerability to hurricanes and climate change remains high.

"Domestically, reform momentum could stall delaying fiscal consolidation

and the implementation of competitiveness-enhancing reforms. In the

international sector, reputational risks could intensify despite the recent

strengthening of regulatory and transparency standards, possibly

challenging existing business models."

The IMF's reference to "key trading partners" likely alludes to the US and

China, and their ongoing "tariff war" over the Trump administration's

allegations that Beijing is "cheating" through intellectual property theft,

forcing American companies into ventures with Chinese companies to

obtain their technology, and other unfair terms of trade.

Given that The Bahamas imports virtually all that it consumes, tariff-

induced price hikes on Chinese-manufactured components of finished US

goods will inevitably be passed on to Bahamian businesses and

consumers still adjusting to the inflationary/cost of living impact from the

increase to 12 percent VAT.

And, besides the threats that The Bahamas cannot control, the IMF

executive board's statement also expresses concern over whether there is

sufficient will - both in the government and the private sector - to see the

necessary fiscal and "ease of doing business" reforms through to

completion.

The reference to "reputational risks" seems to concern The Bahamas'

efforts to escape the Financial Action Task Force's (FATF) monitoring list for

nations identified as having deficiencies in their anti-financial crime

regimes. This nation's continued presence on the list leaves it exposed to

inclusion on the European Union's (EU) revised "high risk" list.

And the IMF also warned The Bahamas to guard against "potential

spillovers into the domestic financial system" from the removal of the walls

that previously separated it from the international financial services

industry. The "unification" of the two segments was designed to bring The

Bahamas into compliance with the EU's demand for an end to such so-

called "ring fencing".

"Caution" was then urged over the Central Bank's plans to create a digital

Bahamian dollar to boost financial inclusion, especially in the Family

Islands, with the IMF saying it had to be aware f the potential risks to

"financial stability".

The IMF's growth revision is likely to have been prompted, at least in part,

by the Department of Statistics' release of The Bahamas' annual GDP data

in May, which found that real growth in 2018 had come in at 1.6 percent.

Although those findings, which were released after the Fund's April

statement, represented the first substantial economic expansion for five

years they were still well short of the 2.3 percent real growth that had

been projected for 2018 by both the IMF and the Government.

The IMF has thus acted to bring its own forecasts in line with the

Department of Statistics, given that Bahamian real GDP growth last year

undershot expectations. Based on a $10.8bn economy, the Fund's revised

projection effectively slashes The Bahamas' 2019 expansion by some

$32m.

Yet, on the positive side, 1.8 percent real GDP growth - if is achieved - still

represents an improvement - albeit modest - on 2018's performance.

However, it remains well short of the sustained 5 percent growth that the

IMF itself says is necessary if this nation is to both absorb all new school

leaver entrants into the workforce and reduce the existing 10.7 percent

jobless rate by 50 percent.

Elsewhere, the IMF executive board's assessment of The Bahamas'

economic prospects was little different from that given by its Article IV

mission team in April. It repeated calls for the Government to

"operationalise" the five-person Fiscal Council and conduct "a

comprehensive tax review" to make the current system more efficient and

progressive.

"Directors .... particularly welcomed the enactment of the Fiscal

Responsibility Act, noting that its effective implementation would bolster

policy credibility and ensure durable gains from fiscal consolidation," the

IMF statement said.

"Directors encouraged steps to further strengthen public financial

management systems, tighten expenditure control, and operationalise

the Fiscal Council as planned. They also saw value in a comprehensive

review of the tax regime to enhance its efficiency and progressivity,

including by reducing distortions and other preferential treatment."

The IMF statement made no mention of either an income or corporate

income tax, although many observers are likely to interpret the term

"progressivity" as referring to just that. The Fund also reiterated the need to

lower energy costs, improve access to credit and eliminate labour market

skills mismatches to improve economic competitiveness before The

Bahamas joins the WTO.

"Directors stressed the importance of advancing structural reforms to

boost competitiveness and unlock the economy's potential for high and

inclusive growth," the IMF added. "Lowering the cost of doing business

would help attract needed foreign direct investment."

Following the reforms to bring The Bahamas into compliance with the EU's

anti-tax evasion drive, the Fund continued: "Directors looked forward to

the swift implementation of the new framework for the international sector

aimed at enhancing its transparency and monitoring.

"They encouraged the authorities to remain vigilant against potential

spillovers into the domestic financial system from the unification of

banking license regimes. Directors also welcomed the authorities'

initiatives to advance financial inclusion while emphasising the need to

proceed with caution on the issuance of a Central Bank digital currency,

mindful of possible risks to financial stability."

<< Back to news headlines >>

Nassau Hotels Hit 34% Room Revenue Increase Tuesday 2nd July, 2019 – Tribune 242

New Providence hotels saw average room rates for the four months to

end-April hit the $300 mark as Easter added further fuel to the year-to-

date 34 percent increase in room revenue.

The Central Bank’s report on monthly economic developments for May

highlighted a buoyant tourism industry through its peak winter season, with

Easter maintaining the momentum of double digit increases across all

major performance indicators for Nassau/Paradise Island hotels.

“The latest data from The Bahamas Hotel & Tourism Association (BHTA)

and the Ministry of Tourism showed a 27.9 percent improvement in room

revenue during April, as the average occupancy rate firmed by 5.9

percentage points to 78.5 percent, while the average daily room rate

(ADR) increased by 14.8 percent to $304.68,” the Central Bank said.

“Similarly, on a year-to-date basis, total room revenue expanded by 34

percent, with the average occupancy rate advancing by 11.9

percentage points to 77.9 percent. In addition, the ADR firmed by 10.4

percent to approximately $300.”

Despite the feeling among some observers that the benefits of such

“double digit” increases have yet to be felt by ordinary Bahamians and

the wider economy, the Central Bank added: “Increased visitor traffic for

the Easter holiday period sustained the growth in tourism, led by gains in

the high value-added stopover visitor segment.

“According to the latest data from the Ministry of Tourism, total arrivals

rose by 11.9 percent in April, outpacing the 0.9 percent increase recorded

in the corresponding month last year, as hotels benefited from the Easter

holiday traffic.

“Specifically, the growth in air arrivals quickened to 18.8 percent from 4.3

percent, and sea passengers advanced by 9.6 percent, a reversal from a

slight 0.1 percent reduction in 2018,” the regulator continued.

“Underpinning this improvement, visitors to New Providence recovered by

23 percent, a turnaround from 2018’s 10.9 percent contraction, amid

gains in both air and sea tourists.

“In contrast, gains in Family Island visitors slowed to 6.9 percent from 31.3

percent a year earlier, as changes in major cruise lines’ port itineraries

resulted in a deceleration in sea arrivals’ growth, although the higher

value-added air component recorded an upturn over the prior period’s

outcome.

“In contrast, conditions in Grand Bahama remained relatively weak, as

total arrivals contracted further by 26.7 percent as the decline in calls

from major cruise lines, outweighed the air segment’s marginal gain.”

For the first four months of 2019, total tourist arrivals to New Providence

jumped by 26 percent while flows to the Family Islands rose by just 1.2

percent due to a “weaker sea volume”. The Central Bank added:

“Further, visitors to Grand Bahama contracted by 21.2 percent owing to a

fall-off in the cruise segment, which overshadowed the incremental

improvement in air arrivals.”

The May report said similar trends to the hotel and wider tourism industry

were witnessed in the Bahamian vacation rental market. It added: “Data

from AirDNA revealed a 25.2 percent increase in total room nights sold

during May, with bookings for hotel comparable and entire place listings

firming by 30.8 percent and 24.6 percent, respectively.

“An analysis of the major markets showed that Exuma recorded the

strongest growth of 34.7 percent, followed by New Providence (19.3

percent) and Abaco (21.5 percent). However, bookings for Grand

Bahama fell by 5.2 percent on account of a decrease in the entire place

category.

“In terms of pricing, the ADR for hotel comparable listings contracted by

23.3 percent to $150.43 due to broad-based declines across all major

destinations. Similarly, rates for entire place listings narrowed by 6.4

percent to $399.28 with declines in all of the markets—with the exception

of Exuma.”

As for air arrivals and departures, May data from the Nassau Airport

Development Company (NAD) showed a 15.8 percent rise in stopover

departures. “The growth in non-US departures accelerated to 15.1

percent from 11.8 percent, while the dominant US component advanced

by 15.9 percent for the second consecutive year,” the Central Bank said.

“Further, over the first five months of 2019, aggregate departures rose by

19.9 percent, extending the 12.7 percent expansion recorded in the prior

period as the growth rate for US traffic nearly doubled to 21.6 percent,

although gains in the non-US component tempered to an albeit healthy

11.2 percent.”

<< Back to news headlines >>

Fitch gives new president cautious thumbs up Tuesday 2nd July, 2019 – Newsroom Panama

Laurentino Cortizo's first speech as president and his fiscal conservatism

produced a favourable reaction from the Fitch rating agency on Tuesday,

July 2. A statement says that the new administration is likely to maintain

the continuity of economic policies while prioritizing constitutional reform

to strengthen institutions.

The rating agency said that "the maintenance of policies oriented to the

existing market will contribute to macroeconomics, stability and will

support the forecast of a stronger growth of the Gross Domestic Product

(GDP) in 2019-2020.

However, it predicts that the incoming administration will face fiscal

challenges with the weakening of tax collection, the reported

accumulation of arrears and promises to increase social spending, which

could complicate compliance with the deficit ceiling, except reforms. to

boost government revenues.

The agency expects President Cortizo to prioritize a constitutional review

with the aim of strengthening institutions, strengthening the separation of

powers and improving controls and balances.

According to Fitch Ratings, "a constitutional review requires a two-thirds

majority in Congress through two legislatures before being approved by

popular referendum."

The fiscal deficit of the Non-Financial Public Sector (NFPS) reached 1.4% of

GDP in the first quarter of 2019, an increase of 0.8% compared to the

same period of 2018, due to a decrease in revenues of 7% year with year.

Revenue was weak due to slower growth and structural weakness in the

collection of taxes, together with arrears than the total administration

revenue of $1 trillion, which may affect compliance with the deficit limit of

2% of GDP.

The rating agency noted that "the outgoing government amended the

Fiscal Social Responsibility Law (LRSF) simplifying its framework, but

allowing greater deficits until 2021, repeating a pattern of postponement

of consolidation objectives.

<< Back to news headlines >>

Dollarama to acquire 50.1 percent interest in Latin American value retailer

Dollarcity Wednesday 3rd July, 2019 – Caribbean News Now

Dollarama announced Tuesday that it entered into a definitive stock

purchase agreement to acquire a 50.1 percent interest in Latin American

value retailer Dollarcity. The purchase price is based on a five-times-

multiple of Dollarcity’s EBITDA, minus net debt and subject to customary

adjustments, and will be settled in cash using available free cash flows.

“With this transaction, which is expected to be immediately accretive to

our earnings, Dollarama is establishing a compelling second growth

platform, in complement to our Canadian growth strategy,” said Neil

Rossy, president and chief executive officer of Dollarama.

“After six years of due diligence review and on-the-ground experience in

Latin America, we believe that now is the right time to exercise our option

to acquire this interest, and that Dollarcity is the right vehicle to capture

the growth potential we see in our chosen markets. We have full

confidence in our local partners, who will continue to lead the Dollarcity

business with our support.”

“We are very excited to bring our relationship with Dollarama to the next

level, and together strive to achieve Dollarcity’s long-term growth

objectives. We have leveraged Dollarama’s expertise to establish a

successful value retail model in El Salvador, Guatemala and Colombia,

and we look forward to continuing to grow our store network in these

countries in the years ahead,” said Marco Baldocchi, chief executive

officer of Dollarcity.

Dollarcity growth plan: 600 stores by 2029

As at March 31, 2019, Dollarcity operated a total of 180 stores, with 44 in El

Salvador, 54 in Guatemala and 82 in Colombia. Dollarcity’s growth plan to

2029 is to reach a target of up to 600 stores within its three existing

countries of operation, with the majority of store growth to be focused in

Colombia.

Dollarcity’s growth target for the calendar year 2019 is 40 to 50 net new

stores. In the first quarter of 2019, Dollarcity had already opened 11 net

new stores.

Transaction background and purchase price

In February 2013, Dollarama entered into a commercial agreement to

share its business expertise and provide sourcing services to Dollarcity,

through a wholly-owned subsidiary, Dollarama International Inc. This

agreement included the option for Dollarama to acquire a 50.1 percent

interest in Dollarcity as of the beginning of the seventh year of the

partnership. The countries covered by the agreement are Colombia,

Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua,

Panama and Peru.

In 2016, the agreement was amended to postpone the opening of the

call option window from February 2019 to February 2020, as well as the

relevant reference financial period for the purposes of the purchase price

calculation, in order to provide the parties with more time to test the value

retail concept in Colombia and to take into account the additional

investments required to be made by Dollarcity to enter this market.

Dollarama and Dollarcity have now mutually agreed to accelerate the

call option while maintaining, for the purposes of purchase price

calculation, the formula agreed upon in 2013 and the reference financial

period agreed upon in the 2016 amendment.

The purchase price formula is a five-times-multiple of Dollarcity’s EBITDA for

the 12-month period ending June 30, 2020, minus net debt and subject to

other customary adjustments, based on audited financial statements.

Dollarama will make an upfront payment of US$40 million upon

transaction closing, and settle the balance in the third quarter of

Dollarama’s fiscal year 2021. The total purchase price is currently

estimated at between US$85 million and US$95 million, based on financial

projections provided by Dollarcity management.

The transaction, which is subject to customary closing conditions, is

expected to close in August 2019. Dollarama will account for its

investment in Dollarcity based on the equity method.

Operational structure and governance

Dollarcity stockholders will be comprised of Dollarama, with 50.1%

ownership, and the Dollarcity founding group, with 49.9% ownership. As a

result, certain strategic and operational decisions will be subject to 100%

stockholder approval. These include, but are not limited to, decisions

related to capital structure, nature of the business, merger and acquisition

activities, executive officer appointments, approval of annual budget

and business plan, and entry into new countries.

The Dollarcity Board of Directors will be composed of five directors, three

Dollarama representatives and two representatives of the Dollarcity

founding group.

Stockholder Options

The Dollarcity founding group has ordinary course put rights commencing

in 2022, subject to transaction size thresholds, required ownership

thresholds and freeze periods, among other conditions and restrictions.

Event-driven put rights also exist for a sale transaction, a Dollarama

change of control or a designated person event. The exercise of any put

right triggers a fair market valuation to establish the applicable share

price.

Dollarama has no remaining call options but does have the ability to

postpone the exercise of the Dollarcity founding group put rights in certain

situations.

<< Back to news headlines >>

$387,000 from BPTT for YTEPP Wednesday 3rd July, 2019 – Trinidad Express Newspaper

Chairman of the Youth Training Employment Partnership Programme

(YTEPP) Thora Best said yesterday energy giant BPTT donated $387,000 to

its programmes.

She made this comment after YTEPP's 2019 graduation ceremony at

National Academy for the Performing Arts (NAPA) in Port of Spain.

Education Minister Anthony Garcia said he was 'very proud of the

graduates' and he urged them to develop their entrepreneurial spirit.

Wearing red gowns, about 1,600 graduates who had participated in 22

skill training areas like heavy machine preparations, patient care

assistance and food preparation celebrated their achievement.

Best said: 'BPTT is one of our strategic partners. We got $387,000 from BPTT

and $200,000will be used for ten $20,000 grants. In each cycle of the

training, the two best business proposals in each workshop will be given a

$20,000 grant in Port of Spain, San Fernando, Tobago and East and

Central.'

She also praised a 'retrenchment' class which catered for people up to 60

years old who had lost their jobs and wanted to learn new skills.

<< Back to news headlines >>

NCB leads the way Wednesday 3rd July, 2019 – Trinidad Express Newspaper

Overall stock market activity yesterday resulted from trading in 16

securities of which six advanced, seven declined and three traded firm.

Trading activity on the First Tier Market registered a volume of 211,431

shares crossing the floor of the Exchange valued at $2,410,020.46.

NCB Financial Group Ltd was the volume leader with 101,060 shares

changing hands for a value of $961,046.25. Unilever Caribbean Ltd

registered the day's largest gain, increasing $0.25 to end the day at

$25.25. Conversely, NCB Financial Group Ltd registered the day's largest

decline, falling $0.26 to close at $9.51. CLICO Investment Fund was the

only active security on the Mutual Fund Market, posting a volume of

40,459 shares valued at $972,475.50. 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 >>

Atlantic Train One on turnaround track Wednesday 3rd June, 2019 – Trinidad and Tobago Newspaper

Atlantic's Train One has apparently avoided being mothballed. Newsday

has been told the shareholders have decided to do a turnaround (TAR)

maintenance schedule, which has been significantly scaled back from

the original maintenance and upgrade plan – the Life Extension Project –

from 110 days to 40 days.

The TAR is expected to start in October, but the hope is that Train One will

be back up by the end of the year. The short-term goal is for the plant to

run at least until the end of the first quarter of 2020. After that, another

assessment will be made based on the availability of gas to supply the

train.

Newsday was also told there is a commercial issue that needs to be

resolved.

In May, BPTT confirmed "disappointing results" from its infill drilling

programmes in the Columbus Basin would have a material impact on

forecast production, especially in 2020 and 2021. The company said there

will therefore be challenges to the gas supply to Train One after 2019.

The government, though, was not too worried about the potential fallout.

In the short term, the country’s prospect’s might be better. In a press

conference shortly after the BPTT announcement, Finance Minister Colm

Imbert said the gas could be diverted to the other three trains and other

downstream petrochemical plants, from which the country actually gets

better returns.

Train One initially had a lifespan of 20 years, due to expire in April this year.

Last November, Communications Minister Stuart Young said Government

had successfully negotiated a five-year extension, including better pricing

terms for the government.

Shell is the major shareholder in Train One, followed by BPTT, Chinese

investors, CIC, and the State through the NGC. Government has no stake

in Trains Two and Three but has an 11 per cent stake in Train Four.

Last month, in an address to the House of Representatives, Energy Minister

Franklin Khan said phase two of negotiations with shareholders – the issue

of restructuring of the four LNG trains into a single unit – would be the

focus. Government will also seek to increase its shareholding throughout

Atlantic.

Newsday approached Shell, BPTT and Atlantic for comment, and while

the request was acknowledged, up to news time, no response had been

received. Khan did not respond to calls to his cellphone.

<< Back to news headlines >>

Central Bank: T&T economy grew in Q1, 2019 Monday 1st July, 2019 – Trinidad and Tobago Guardian

Trinidad and Tobago has experienced an energy led recovery in

domestic economic activity during the first half of fiscal year 2018/19

according to the Central Bank’s June monetary policy announcement.

The Central Bank noted that government’s deficit for the first half of the

2018/2019 fiscal year was much lower when compared to the

corresponding period last fiscal year.

“The boost to natural gas output from the Juniper project positively

affected downstream production of petrochemicals and liquid natural

gas (LNG). At the same time, toward the end of the year, refining output

fell substantially as a result of the closure of the Petrotrin refinery.

“There were also maintenance related production stop pages at some

petrochemical plants in the final quarter of 2018,” the report said.

It added that more recent information shows that natural gas production

rose further in the first two months of 2019 with the coming onstream of

new gas from the Angelin platform.

“LNG and petrochemicals output also increased while crude oil

production continued to decline owing to mature acreage.

“The spillover from the energy to the non-energy sectors appeared to be

slow and somewhat uneven in 2018, however, based on available data,”

the report said.

Energy prices displayed positive trends over November 2018 to May 2019.

According to the Central Bank strong seasonal demand over the winter

months accounted for the rise in natural gas prices (7.5per cent year-on-

year) to US$3.16/million British Thermal Units (mmbtu) over the period.

The Bank said latest data indicated an increase in the unemployment rate

to 4.8 per cent in 2017 even as the labour market participation rate also

declined as some people opted to leave the job market, perhaps as a

result of difficulty in obtaining employment.

The bank noted that more recent data point to a year-on-year rise in

retrenchment notices filed with the Ministry of Labour in 2018 and early

2019, suggesting a further slackening of labour market conditions.

Inflation however continued to be low and stable in early 2019 due to low

international food prices and moderate domestic demand. Headline

inflation stood at 1.2 per cent and construction sectors boosted growth in

2018.

The report said consolidated private sector credit, which had been

expanding moderately in 2018, dipped in March 2019.

Regionally the Central Bank said in in early 2019 Barbados output suffered

from fall-offs in construction and other non-traded sectors.

It added that following some tightening in the latter part of 2018, global

monetary and financial conditions have eased since the beginning of

2019 as major central banks have kept monetary policy unchanged or

have implemented further accommodation measures

The Bank has continued to conduct open market operations in light of

changing market conditions.

Lower fiscal injections over November 2018 to May 2019 relative to the

previous seven-month period (April to October 2018) resulted in the Bank

injecting a net amount of $4.2 billion in liquidity into the financial system

through net maturities of OMOs. Furthermore, sales of foreign exchange

by the Central Bank to authorised dealers indirectly withdrew liquidity from

the system. Liquidity levels over the period were lower compared to the

prior seven-month period, which led to in a rise in daily interbank

borrowing; however, the interbank rate remained unchanged, the report

noted.

It added the local foreign exchange market remained tight despite an

increase in authorised dealers’ foreign currency purchases from the

public.

Over November 2018 to May 2019, both purchases and sales of foreign

exchange by authorised dealers increased when compared to the

corresponding period a year earlier.

<< Back to news headlines >>

The Five Islands Campus: New University of the West Indies in Antigua-

Barbuda Wednesday 3rd July, 2019 – Caribbean News Now

I am honoured to report that the chancellor, Robert Bermudez, and the

council of The University of the West Indies (UWI) have formally approved

the establishment of a campus of The University of the West Indies in

Antigua and Barbuda, within the broader context of the country’s

membership of the Organization of Eastern Caribbean States (OECS).

Physically located in the community known as “Five Islands,” this newest

campus of The UWI will be officially known as the “Five Islands Campus.”

In addition to serving the specific development needs of Antigua and

Barbuda, it will provide a hub to enable greater participation in the

development agendas of the OECS by the UWI.

Excellent public universities such as the UWI, are not designed nor funded

to serve themselves. Their mandate is to serve all sections of the

communities that support them. The UWI knows no other mandate. It is the

region’s premier public university, ranked within the top five percent of the

world’s finest.

In recent decades several studies have shown that The UWI has

underperformed within the OECS sub-region. The nations that constitute

this integrated community are founders and original chartered members

of the university. However, they have not had the benefit of full access to

the university’s brand, that is theirs, within national and sub-regional

development strategies.

The government of Antigua and Barbuda placed the case before The

University of the West Indies inviting its greater involvement in the

development affairs of the country and sub-region. For the University, this

request was simultaneously a practical, financial and ethical matter.

The OECS constitutes a significant part of the CARICOM family with a

population of approximately 600,000 citizens, of which 102,000 reside in

Antigua and Barbuda.

The UWI will now enter the OECS, headquartered with a landed campus in

Antigua and Barbuda, after several decades of landed campus service

and leadership in Jamaica, Trinidad and Tobago, and Barbados, and a

major medical faculty presence in the Bahamas.

Ten years ago, this landed campus service was radically enhanced by the

digital and physical presence of the Open Campus that has since been a

lifeline for thousands of citizens in underserved communities across our

archipelago.

The OECS, however, remained a part of our family that is in urgent need

of the service, long considered a norm in countries that have had the

financial resources to fund landed campuses.

While in recent years the OECS registered amongst the highest rates of

economic growth in the region, The UWI has remained dissatisfied with the

level of its contribution to the development of the higher education and

professional training sectors.

The OECS registers the lowest rates of youth tertiary education enrolment

in the Caribbean, and indeed the hemisphere. This unacceptable

circumstance is reflected in some of the highest youth unemployment

rates in the region.

Together, they constitute a real threat to sustained development in the

sub-region. The UWI community long concerned about this reality within

the OECS family welcomes this glorious moment that provides it with an

opportunity for corrective action.

In 2017, the council of The UWI received a presentation from the

government of Antigua and Barbuda calling for the establishment of a

21st century, fit for purpose campus, to promote national and sub-

regional economic and social development, with a focus on the robust

expansion of its social capital.

The council, in response, established a task force to conduct a feasibility

study under the co-chairmanship of pro-vice-chancellors, professor Alan

Cobley and professor Densil Williams.

The task force submitted its report in March 2019, and recommended the

creation of a campus, explicitly designed to meet the needs of Antigua

and Barbuda, and the OECS sub-region, based on projected financial

feasibility.

Critically, the government of Antigua and Barbuda, provided the task

force with financial data and evidence of its policy intent, illustrating its

ability to meet the financial operations of the campus.

The report recommended to council, the establishment of the campus

within defined guidelines outlined for program and facilities development.

Council in accepting the recommendation of the task force has further

instructed management to establish an implementation committee that

will proceed immediately to craft and guide the creation of the Five

Island Campus.

The Five Islands Campus will begin by admitting its first cohort of some 800

students in September 2019.

The majority of these 800 students are already registered in levels one and

two of The UWI programs currently being delivered in Antigua under a

franchise agreement at the Antigua State Community College, and other

tertiary institutions. These students will be invited to transition over to the

Five Islands Campus.

This is a historic moment in the development of the Caribbean

community, in Antigua and Barbuda, the OECS, and for The UWI that is

committed to serving the needs of its chartered members, and the entire

region.

Like its sister campuses at Mona, St Augustine, Cave Hill and The Open

Campus, the Five Islands Campus will begin modestly and will no doubt

soar to magnificent heights in the years to come.

It’s a future to be crafted by us all. In this regard, we urge the region to

embrace this youngest sibling of the UWI, in much the same way that you

have developed and celebrated other campuses. This is why The UWI has

become the number one ranked university in the Caribbean.

On behalf of the UWI, chancellor Bermudez and I, wish to commend

prime minister Browne, his government, and the people of Antigua and

Barbuda, for taking this bold, visionary step into the future they wish to

craft for their citizens and indeed for the collective benefit of Caribbean

people.

There is no doubt that the region’s development is being held back, not

by a shortage of capital, but by inadequate critical skills, and a shortage

of trained professionals. This campus is intended to contribute to solving

this development problem in Antigua and Barbuda and by extension, the

sub-region and CARICOM in general.

Without vision, courage and commitment, there can be no progress for

our people. We thank prime minister Browne, and his government, for

having the confidence in their own UWI to satisfy their development

aspirations. We shall do our very best to honour your trust.

The university wishes to thank the prime ministers and governments who

host our three landed campuses in Jamaica, Trinidad and Tobago, and

Barbados. We thank you, our principal stakeholders, for your scrutiny of

the proposal and your endorsement.

The enormous investment of public resources your countries have made

to empower and to expand The UWI over 71 years has made possible this

historic moment.

Thank you, prime minister Holness, prime minister Rowley, prime minister

Mottley, and your dedicated teams of ministers and civil servants.

Thank you for your persistent governance oversight of the UWI, and your

willingness to enable it to continue on its journey to spread its service

across the region, like a warm blanket, according to our first chancellor,

Princess Alice of Athlone.

I also wish to thank prime minister Gonsalves of St Vincent and the

Grenadines, as chairman of the OECS, who provided regional leadership

that enabled broad support for this initiative. In this regard, I also thank all

prime ministers of the OECS who gave their full support.

Finally, I wish to commend pro-vice-chancellors Cobley and Williams, co-

chairs of the task force, as well as all members, who worked hard and

smart on their report, including student representatives whose voices rose

up in support of more educational access for the youth of the region, who

have inspired us all.

To the chancellor, campus principals, university registrar and university

bursar, all pro vice-chancellors, directors, deans, heads of departments,

presidents of the guilds of students, and all members of the university

community, thank you for enabling The UWI to be the best it can be in

serving the region while being a global exemplar in the provision of

accessible and affordable quality higher education.

Our solidarity will now be required more than ever as we build a campus

befitting the excellence of the UWI. With this action, the people of our

region, the youth especially, will be better served.

Finally, I urge and implore all colleagues at sister campuses to work

steadfastly and with devotion to develop our Five islands Campus. This

21st century is ours; let us, therefore, fully embrace the Five Islands

Campus as a metaphor of the persistent deepening of Caribbean

integration and the consolidation of Caribbean confidence in action.

Let us all, therefore, bless the Five Islands Campus and all it represents in

the sovereign development of our people.

<< Back to news headlines >>

Boston Scientific Will Hire 600 New Employees in Costa Rica Wednesday 3rd July, 2019 – Costa Rica News Today

The multinational company Boston Scientific, dedicated to the design,

manufacture, distribution, and sale of medical devices less invasive of the

highest technology, announced that it will hire 600 people in the

remainder of 2019.

These will be added to the 4,200 employees currently working in the

company, placing it as the employer of the largest medical device sector

in the country.

The profiles to be hired are from different areas and range from workers

with 6th-grade levels of schooling (ideally, 9th-year schooling), to

professional engineering graduates (mechanics, electromechanics,

electronics, materials, electrical, industrial, chemical, mechatronics),

finance, accounting, among others. The positions will be for the 2 plants

that Boston Scientific has in the country: one in La Aurora de Heredia and

the other in El Coyol de Alajuela.

Boston Scientific’s headquarters in Costa Rica

Boston Scientific has an unblemished record in its financial performance

over the last 5 years, reaching revenues of US$ 9.8 billion in 2018, while

developing multiple new acquisitions. The plants in Heredia and El Coyol

are part of this great growth, expanding operations to support the

manufacture of multiple product lines.

“The Boston Scientific team in Costa Rica already has the opportunity to

support the company both regionally and globally”, said Luis Javier

Serrano, Vice President of Operations at the Coyol plant. “We have a solid

manufacturing operation, a Research and Development Centre, as well

as collaborators who work in the design of new products, assurance of the

quality of the designs and regulatory matters. Also, we have

representatives from the commercial area (clinical specialists and direct

sales) who provide services to Central America and Panama, as well as

global information technology services “.

President Carlos Alvarado commented that these 600 new hires of Boston

Scientific ratify the confidence of this corporation in the capacity of Costa

Rican talent, remembering that, last May, the plant located in Coyol de

Alajuela won the Shingo Prize, the most relevant in excellence operational

that is granted in the world.

Company’s employees working in a favourable cooperative environment

Alvarado also reaffirmed the commitment of the Government to continue

working together with the private sector for the promotion and

consolidation of foreign direct investment, seeking to improve the living

conditions of the population throughout the territory.

The Minister of Foreign Trade, Dyalá Jiménez, added: “We are pleased to

announce that Boston Scientific will generate new jobs in the country.

These job opportunities allow people with skills in the areas of

manufacturing and research and development to have growth options.

This is an example of a company that continues to bet on the human

talent of quality that our country offers”. The company confirmed that its

hiring plans are mainly due to the growth of recent acquisitions and

manufacturing of new products by Boston Scientific.

The general director of the Costa Rican Coalition of Development

Initiatives (CINDE), Jorge Sequeira, celebrated the announcement:

“Boston Scientific is one of the pioneer companies in the medical device

industry in the country. Thanks to the quality of local human talent have

successfully developed the production of medical devices and, more

recently, has added new research and development functions. This

example is replicated in many companies in the life sciences sector,

which from 1999-2017 registered an increase in productivity of 63%,

measured through exports per employee that went from US$ 76,000 to US$

124,000”.

Those interested in applying and opting for a position within the company

should do so at the address: www.bostonscientific.com/careers. There

you can see the open positions in Costa Rica, create your profile to apply

and create alerts for future positions. Also, you can visit their Facebook

page: Boston Scientific Costa Rica, and review the tutorial videos on how

to apply. The places will be enabled continuously in the system, so it is

recommended to those interested to review the page frequently.

<< Back to news headlines >>

Government Launches Tourism Campaign to Promote Development and

Economic Reactivation of Limón Wednesday 3rd July, 2019 – Costa Rica News Today

Intended for national tourists, last Friday was launched the advertising

campaign “Come to Limón! What do you like to do in the Caribbean?”,

an invitation to vacation and explore the cultural, gastronomic diversity,

the varied tourist destinations and sites, the charisma and the flavour of

the Limonene population, which is one of the most exuberant regions of

the country.

This campaign, a project that emerges from the Mesa Caribe, is a joint

effort with the Federation of Chambers of the Caribbean, which validated

the conceptualization of the promotional clip.

A mother and her son appearing in the promotional clip for promoting

tourism in Limón.

“The Caribbean has all the capabilities to develop tourism and generate

economic reactivation so important for citizens. The richness in flora and

fauna, multiculturalism, and the combination of mountains, rivers, and

seas is an incomparable strength for the development of the region”, said

Marvin Rodríguez, 2nd Vice President of the Republic and Coordinator of

the Mesa.

This investment of ¢ 105 million is an extension of the promotional

campaign of domestic tourism “Vamos a Turistear” (Let’s make tourism),

which encourages the national population to live unique experiences in

their own country and in this specific case in the Caribbean.

The Minister of Tourism, María Amalia Revelo, reiterated that “this

campaign is part of the commitment of the Government for the tourist

development of the province of Limón, coordinated effort -with the

Federation of Chambers of the Caribbean that groups the private sector-,

as is the way to operate the Costa Rican Institute of Tourism (ICT)”.

“Limón has enormous potential for tourism development. We celebrate

these important steps to make known their beauty. Positioning efforts such

as these are added to projects already advancing such as the new cruise

and marine terminal that seek to boost opportunities for the province”,

said Andrea Centeno, Executive President of the Board of Port

Administration and Economic Development of the Atlantic Coast of Costa

Rica (JAPDEVA).

Limón downtown

The campaign will last 4 months (July, August, September, and October)

with an initial launch on television and the social media of the brand

“Vamos a Turistear” (www.vamosaturistear.com) for a month.

Subsequently, it will be scheduled in digital media, buses, radio, and film

for 3 months.

Other projects on the way

The board of directors of the ICT approved, on June 24th, a Cooperation

Agreement with JAPDEVA for US$ 200 thousand to finance improvement

works in the port infrastructure of the Hernán Garrón Salazar cruise

terminal in Limón. The improvements will include internal and external

boarding rooms, areas for artisans, a gazebo, patios, and service areas for

passengers and crew.

In addition, ICT together with the Municipality of Talamanca will invest ¢

760 million (approximately US$ 1.3 million at the current exchange rate) in

a dock in Cahuita and a berth in Puerto Viejo destined to safe transfer

and enjoyment of people who visit the main attractions of these areas.

The delivery of the berth is planned for the 4th Quarter of 2019, and that of

the dock for 4th Quarter 2020.

In the Pavona de Pococí, it will invest ¢ 300 million (approximately US$ 500

thousand at the current exchange rate). In improvements of the wharf for

the entry of tourists to Tortuguero, a project that is coordinated with the

Ministry of Public Works and Transportation and the Ministry of Environment

and Energy (MINAE), it will be included in the institutional budget of 2020.

By means of these works and the advertising campaign, they add an

investment of around US$ 2.2 million in the province of Limón.

<< Back to news headlines >>

Another upgrade Tuesday 2nd July, 2019 – Nation News

Barbados has received its second credit rating upgrade in the last seven

months. Yesterday, international rating agency Moody’s announced that

having seen improvements in the country’s debt position, it raised

Barbados’ foreign and local currency issuer ratings to Caa1 from Caa3,

affirmed the foreign currency senior unsecured bond rating at Caa3, and

maintained the stable outlook.

Moody’s said the island’s “capacity to service its restructured and

potential future debt obligations has materially improved”. It added the

decision to upgrade the foreign and local currency issuer ratings to Caa1

“signals the improved debt service capacity now and in relation to future

issuances”.

Last November, following about two dozen downgrades by various

entities, another leading rating agency Standard & Poor’s (S&P) raised its

long and short term local currency ratings for Barbados from selective

default (SD/SD) to B-/B. S&P also assigned a B- local currency issue rating

on the domestic debt issued in the recent debt exchange.

Moody’s, whose rating committee on Barbados met on June 27, said its

decision to issue new ratings reflected several considerations.

<< Back to news headlines >>

Massy staff down tools Tuesday 2nd July, 2019 – Nation News

Staff at Massy Distribution are off the job.

More than 30 employees from the warehouse at Spring Garden, St

Michael, downed tools earlier this afternoon and gathered on the eastern

side of the compound.

Shop steward Anderson Sobers told THE NATION that they were frustrated

after salary negotiations broke down.

Sobers, who is also a porter, said they also wanted better working

conditions. He complained of heat in the warehouse, which he said

needed an industrial cleaning.

The workers are currently meeting with Barbados Workers' Union

representative Dionne Howard.

A skeleton crew is still on the job.

<< Back to news headlines >>

Venezuela's June oil exports recover to over 1 million bpd: data Tuesday 2nd July, 2019 – Reuters

Venezuela’s oil exports recovered in June from a sharp drop the month

before, helped by increased deliveries to China, which is now state-run oil

firm PDVSA’s primary destination for its crude, according to company

records and Refinitiv Eikon data.

PDVSA and its joint ventures exported 1.1 million barrels per day (bpd) of

crude and refined products last month, a 26% increase over May. Chinese

buyers took 59% of the shipments, followed by India with 18% and

Singapore with 10%, the documents showed.

June data show the OPEC member nation has been able to restore the

level of exports it maintained earlier this year, after the U.S. imposed

sanctions on PDSVA in January designed to starve the nation of oil

revenue. PDVSA has since reorganized its businesses to continue crude

exports, which are the country’s main source of revenue.

PDVSA did not reply to a request for comment.

The United States this year barred U.S. companies from dealings with

PDVSA and recognized Venezuelan congress chief Juan Guaido as the

country’s legitimate leader on the grounds that President Nicolas

Maduro’s 2018 re-election was a sham.

Venezuelan oil exports to China have risen consistently since the sanctions

hit, the data showed. In February, the volume shipped was 233,000 bpd,

and in June it almost tripled to 656,000 bpd. However, PDVSA’s exports to

India, another large receiver, have declined to 200,000 bpd, while

deliveries to Europe have remained around 85,000 bpd in recent months.

Under oil-for-loan agreements with China and Russia that have supplied

billions of dollars to Venezuela in the last decade, PDVSA must deliver the

largest portion of its oil exports to China National Petroleum Corp

[CNPC.UL] and Russia’s Rosneft to repay the credits. Another share of the

exports is exchanged for fuel purchases.

PDVSA imported 117,100 bpd of fuel in June, the third consecutive

monthly drop. Rosneft and Spain’s Repsol were the main suppliers of

products, including gasoline, diluting naphtha, diesel and liquefied

petroleum gas, according to the data.

Last month, PDVSA began tests to reshuffle crude production to favour

exports of grades favoured by Asian refiners. U.S. refiners that once were

among Venezuela’s largest receivers took no crude last month. Exports to

Cuba last month declined after a May jump, the documents showed.

<< Back to news headlines >>

Venezuela to blend domestic, imported oil to keep exports afloat: oil

minister Tuesday 2nd July, 2019 – Reuters

Venezuela will stick to its plan of blending domestic and foreign crude to

maintain and even increase oil production and exports in the face of

sanctions prohibiting U.S. companies from buying the country’s oil, oil

minister Manuel Quevedo said on Tuesday.

State-run oil company PDVSA in June began tests to focus exports almost

entirely on the crude grade preferred by some Asian markets, Merey

heavy crude, after shipments of oil and refined products fell in May

following U.S. sanctions, according to internal documents seen by Reuters.

“Our plan is to recover. We have internal strategies... One of them is to

continue blending (to produce) the product we export the most, Merey

crude. We will continue blending our own crudes and will also import

crude,” Quevedo said on the sidelines of a meeting between OPEC and

non-OPEC countries in Vienna.

Quevedo said sanctions imposed in late January have affected PDVSA’s

financial transactions, shipping and procurement, and have delayed a

plan to boost Venezuela’s crude output by 1 million bpd.

On top of sanctions, power outages in March also knocked down

PDVSA’s crude output to 400,000 bpd, Quevedo sad, also affecting

exports to most PDVSA’s customers.

“We have done nothing wrong. We don’t deserve to have any country

watching over us,” he said.

Venezuela’s oil exports recovered in June from a sharp drop the month

before, helped by increased deliveries to China, which is now state-run oil

firm PDVSA’s primary destination for its crude, according to company

records and Refinitiv Eikon data.

Washington in January imposed the toughest sanctions yet on PDVSA to

pressure socialist President Nicolas Maduro to step down, after recognizing

the head of congress, Juan Guaido, as the country’s legitimate leader.

The measures ban U.S. companies, which were the main buyers of

Venezuelan oil, from dealing with the company.

<< Back to news headlines >>

Digicel expects debt levels to rise Wednesday 3rd July, 2019 – Jamaica Gleaner

Telecoms provider Digicel Group posted a nine per cent drop in its

earnings for its fourth quarter ending March 2019, and is expecting its debt

levels to rise.

The company said its earnings were impacted by one-off costs.

“We are fully committed to returning the business to a more sustainable

leverage level,” said Antonia Graham, head of group communications, in

response to Financial Gleaner queries about the financial results.

Digicel, which had its beginnings in Jamaica but now spans 32 markets

internationally, recorded a three per cent decline in revenue for the

quarter to US$570 million, but the telecoms said top-line income would

have grown 1.0 per cent were it not for currency movements and other

one-off costs.

Its earnings before interest, tax, depreciation and amortisation, EBITDA,

totalled US$230 million in the quarter, down 9.0 per cent year-on-year.

Digicel also indicated that its net debt was projected to rise to 7.0 times its

earnings in 2020, up from 6.7 times earnings in 2019. But the company said

bondholders should not be overly concerned about the rise as it plans to

reduce its leverage over time.

“This will take time. However, the momentum that we are beginning to

see in the underlying revenues provides us with comfort that we can

return the business to full-year revenue and EBITDA growth and begin to

deliver organic deleveraging,” said Graham.

Digicel expects single-digit growth in its earnings in 2020, but thinks this

would be sufficient to allow it room to reduce debt. It expects to see

underlying revenue growth across all business segments, in particular a

return to growth for the full year in its mobile business and the continued

performance in business solutions and home and entertainment

segments.

Digicel said its fourth-quarter EBITDA was adversely impacted by full-year

charges booked in the quarter.

Digicel, like other telecoms, continue to face challenges in monetising the

shift from voice to data services. Added to that are heavy capital

expenditures, one-off costs and currency movements.

The telecom continues to meet its interest payment obligations on its

bonds. However, earlier this year, Jamaica’s JMMB Group recommended

that its clients sell their bonds, saying Digicel’s results, which at the time

referenced its third-quarter earnings, had not improved in line with

expectations, making the servicing of the bonds continuously challenging.

In January, Digicel extended the timeline for the payout of bonds due by

2020 and 2022 to 2022 and 2024, respectively. Rating agency Moody’s

assigned a limited default status to the bonds following the extension,

although it revised the rating to Caa1, up from Caa3. Despite the benefits

from the two-year debt extension, Moody’s labelled the transaction as

‘distressed’, mainly because of Digicel’s “untenable capital structure”,

with high leverage of around 6.7 times gross debt to EBITDA.

<< Back to news headlines >>

Key fails capital test - Launches turnaround plan under FSC guidance Wednesday 3rd July, 2019 – Jamaica Gleaner

Key Insurance Company, known for its motor and property policies, has

developed a turnaround plan for the business to achieve profitability and

improve its capital ratios.

It comes in the wake of a breach of Key’s minimum capital test for its full

year ended December 2018, which its auditor, PricewaterhouseCoopers,

PWC, called a “primary measure of solvency”.

Insurance regulator The Financial Services Commission, FSC, requires an

insurer’s capital to surpass a measure of what it insures by two and a half

times, or 250 per cent. For the 2018 financial year, Key’s MCT was less than

half the requirement, at 112.5 per cent, and also less than half the 266 per

cent level the company achieved in financial year 2017.

The FSC requires that companies file their MCT estimates on an annual

basis, but Key will submit its MCT on a monthly basis as part of its

turnaround plan.

“The financial projections from the company’s turnaround plan show the

company meeting its required MCT for each month from February 2019 to

the end of December 2019 and as at December 2020,” said the

company, which trades on the junior market of the Jamaica Stock

Exchange.

The regulatory shortfalls are hinted at in its operational performance. While

Key’s net premiums hit a high of $1.15 billion in December 2018, up nearly

48 per cent from $778.7 million a year earlier, claims grew at a faster pace

to surpass $1.1 billion. It resulted in a $167.5 million net loss for Key.

Efforts at comment from Key Managing Director Sandra Masterton and

the FSC were unsuccessful. Key’s finance director, Jacqueline Johnson,

told the Financial Gleaner that Masterton was best suited to discuss the

turnaround plan.

Key Insurance Company holds $888.8 million in group equity and liquid

assets of $1.4 billion.

The company said in delayed market filings of its financial results that it

had undertaken a series of actions within its turnaround plan, which

includes an ongoing “communiqué” with the FSC to assess the company’s

regulatory targets.

It also undertook asset disposals in late 2018 and early 2019, which shifted

the portfolio to less risky assets. The realignment resulted in the reduction

of regulatory capital requirement by $37.6 million, the company said.

As a third measure, Key renegotiated some of its reinsurance

arrangements in response to what it called the severity of claims. It

increased its reinsurance coverage while adding fire catastrophe excess

of loss coverage and motor quota share reinsurance coverage aimed at

reducing its loss exposure in that category.

“These initiatives improved the company’s operating performance and

reduced the regulatory capital required,” said Key.

Between January and April, the MCT ratio showed improvements,

clocking in at 235 per cent, 372.4 per cent, 406.1 per cent and 382 per

cent, respectively. Only January fell below the regulatory capital

requirements.

Auditor PwC said its audit of the company’s 2018 results focused on the

MCT because Key’s compliance has a direct bearing on its ability to

maintain its licence to sell property and casualty insurance in Jamaica.

The auditor affirmed that Key was meeting the MCT targets in the months

following the audit period.

“Based on the procedures performed, management’s plans and

assumptions used in its capital and net profit projections are not

unreasonable,” PwC said.

<< Back to news headlines >>

Salamander to manage Half Moon Wednesday 3rd July, 2019 – Jamaica Observer

The board of directors of Half Moon, one of the Caribbean's most iconic

resort destinations in Montego Bay, Jamaica, announced that it selected

Salamander Hotels & Resorts to manage the award-winning 400-acre

property.

Specialising in independent luxury, Salamander owns and manages the

Forbes Five-Star Salamander Resort & Spa in Middleburg, Virginia, and

Innisbrook Resort in Tampa. The company also operates the new Hotel

Bennett in Charleston, South Carolina, The Henderson, a grand beach

resort in Destin, Florida, and the recently renovated Hammock Beach

Resort, near St Augustine, Florida.

“With successes in operating luxury, golf and beach properties,

Salamander is our chosen hospitality partner for Half Moon,” said Guy

Steuart III, chairman of Half Moon.

“Since the inception of Half Moon, our team members have injected their

hearts and souls into what has become a globally-recognised brand and

symbol for gracious Jamaican hospitality, one of the finest experiences in

the Caribbean,” he continued. “As we commemorate our 65th

anniversary, Half Moon intends to build on its reputation of providing

transformative experiences for generations of discerning travellers.”

Half Moon opened in 1954 and is the chosen retreat for royalty, presidents

and celebrities. It expanded with the purchase of the neighbouring

Colony Hotel in 1979, and then with the construction of five-to-seven-

bedroom villas, which were rebranded in 2018 as Rose Hall Villas By Half

Moon.

Half Moon offers guests unique and award-winning experiences including

but not limited to a spa and wellness sanctuary, the Fern Tree Spa at Half

Moon, an 18-hole championship golf course, equestrian centre, 11 floodlit

tennis courts, and the Sugar Mill, awarded as Jamaica's best restaurant.

Salamander, founded by noted entrepreneur Sheila Johnson, will work

closely with Half Moon's owners and its team to build on the resort's legacy

of excellence.

“We are delighted to have this amazing opportunity to collaborate with

Half Moon and the Jamaica business and tourism communities,” said

Sheila Johnson, Salamander's founder and CEO. “The resort is renowned

for its wonderful, caring employees, many of whom have been a part of

the Half Moon family for generations. I look forward to introducing my

business partners, colleagues and Salamander's many loyal guests to Half

Moon's storied history and exciting future.”

Johnson is the only African-American woman to wholly own a Forbes Five-

Star resort. Renowned as the co-founder of Black Entertainment Television,

she is also a partner in Monumental Sports & Entertainment, and the

recipient of numerous awards including the Lincoln Medal, which is

presented to citizens whose work and achievements exemplify the legacy

of America's 16th president.

<< Back to news headlines >>

Sagicor Select Funds IPO opens today Wednesday 3rd July, 2019 – Jamaica Observer

Sagicor Select Funds Limited's (SSFL) Initial Public Offering (IPO) is now

open and will close on July 17. With Sagicor Investments as the lead

arranger and lead broker, the IPO is seeking to raise up to $2.5 billion (with

a right to upsize by an additional $1.5 billion).

Investors can buy into the Class B ordinary shares at a share price of $1

with minimum share purchase being 1000.

The IPO prospectus, which is currently on the Jamaica Stock Exchange

and Sagicor Jamaica websites - jamstockex.com and

sagicorjamaica.com respectively, was uploaded on June 20, 2019.

Sagicor Select Funds is listing one of the classes of ordinary shares, Sagicor

Financial Select (a listed equity fund-LEF), that will own financial stocks

currently trading on the Main and Junior markets of the Jamaica Stock

Exchange (JSE).

There are currently 23 financial companies' stocks in the Sagicor Financial

Select Fund.

As an LEF, the Sagicor Financial Select Fund will provide investors with the

opportunity to benefit from investing in a pool of assets from a range of

financial companies listed on the JSE. This lends itself immediately to

diversification for investors once they purchase shares in the Sagicor

Financial Select Fund.

<< Back to news headlines >>

Petroleum of Venezuela seeks compensation for Petrojam Wednesday 3rd July, 2019 – Jamaica Observer

PETROLEUM of Venezuela (PDVSA) has brought a compensation claim

against the Government of Jamaica (GoJ) over the take-back of the 49

per cent shares which the company owns in the island's State oil refinery,

Petrojam.

Energy Minister Fayval Williams made the disclosure in the House of

Representatives yesterday, responding to questions from Opposition

spokesman on energy Phillip Paulwell.

Williams said the claim is being made in the Supreme Court, and stressed

that this action is provided for under the Compulsory Acquisition (Shares in

Petrojam Limited) Bill which was passed in by Parliament in February. She

said the documentation for the claim is now with the Attorney General's

Chambers.

Attorney General Marlene Malahoo Forte told the House that the portfolio

minister would make a statement after she had been provided with a full

brief.

The Government passed legislation for the forced acquisition of the 49 per

cent shares in Petrojam held by Venezuela's State-owned oil company's

subsidiary, PDV Caribe.

The Jamaican Government maintained that the move was necessary as

Venezuela had not kept its end of the bargain for the upgrading of the

refinery, under the 2006 joint venture agreement signed between the

Petroleum Corporation of Jamaica (PCJ), its subsidiary Petrojam, and PDV

Caribe SA — a subsidiary of Venezuela's State oil refinery PDVSA.

Included in the legislation is a provision for parties who wish to make

compensation claims to do so within three months after the gazetting of

the notice of March 13, 2019.

Prime Minister Andrew Holness told the House in his budget presentation in

March that: “Without that action, credible investment in the refinery

would have been limited, if not impossible to obtain. Without this action, it

was clear that it would have become increasingly difficult and ultimately

unsustainable to operate and do business with suppliers, banks and

insurers once sanctions remained in place. This action has cleared the

way for Jamaica to make strategic decisions about its energy security

without encumbrances.”

He said the Government was satisfied that it acted fairly and

appropriately to secure Petrojam's value for the benefit of the country.

“We aren't seeking to take property without paying for it,” he said.

Meanwhile, Paulwell has suggested that the 38-page report of the

Petrojam Review Committee (PRC), which was tabled yesterday, should

be presented to the Economy and Production Committee for full

discussion.

One of the main recommendations made by the PRC is that the 57-year-

old refinery should be divested under a long-term lease agreement.

<< Back to news headlines >>

NWA says Corporate Area roadworks to wrap by end of summer Wednesday 3rd July, 2019 – Jamaica Observer

THE Constant Spring Road expansion work which began in February last

year is roughly 70 per cent complete, while the Hagley Park Road project

is over 80 per cent finished, according to Stephen Shaw, communications

manager at the National Works Agency (NWA).

He said that the bridges at Portia Simpson Miller Square are complete and

the focus now is on completing the retaining walls that form part of the

approach roads.

“We are constructing eight such walls and four have already been

completed,” Shaw told the Jamaica Observer yesterday. “We have also

paved a section of the corridor, between Mahoe Drive and Carpenter

Avenue. More than 90 per cent of the storm water drains have been

done. A similar percentage of median barriers have also been

completed.”

With regard to the Constant Spring Road project, he noted that pipelines

are still being laid, but said this work is about 90 per cent complete.

“There is about 800 metres of pipe-laying works to be completed. We

have paved 3.2 km of the 4-km stretch of road. The paving works include

both layers being done in the vicinity of Clifton Boulevard and Cassava

Piece Road,” he reported.

The NWA spokesman told the Observer that the agency is striving to have

the project completed by the end of summer.

He gave a similar timeline for the anticipated completion of the Hagley

Park and Portia Simpson Miller Square works in an interview with RJR last

week.

“We are now at a stage where some delicate issues are to be addressed.

These include relocating transmission waterlines between Hillman Road

and Mary Brown's Corner. The pipeline in this area is not only old and

fragile, but also sits very close to the road surface. We intend to complete

the laying of all other lines before relocating these lines in order to

minimise the interruptions to customers of the National Water Commission

(NWC).

According to the NWA, the benefits to commuters on completion of the

project will be the widening of the roadway from two to four lanes with

sidewalks and concrete medians, right-turning lanes at select

intersections, improved intersections with upgraded and new traffic

signals and pedestrian facilities, improvement of storm water drainage

systems, improvement of NWC water mains and sewerage systems,

among others.

The improvements, it said, will also reduce travel time along the corridor

and eliminate conflict points.

A total of US$19 million is being spent on the Constant Spring Road

project.

<< Back to news headlines >>