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SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: [email protected]
▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO)
▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-
▪ Government of Barbados’s local currency rating upgraded to CariBB
▪ PanJam Investment Limited’s initial rating assigned at CariBBB+
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+
▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+
▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+
▪ The Pegasus Hotels of Guyana Limited’s rating upgraded to CariBBB
▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+
▪ Home Mortgage Bank’s rating reaffirmed at CariA
▪ NCB Cayman Limited’s rating reaffirmed at CariA
OUR UPCOMING WORKSHOPS!
Fundamentals of Financial Analysis 28th & 29th March 2019 Trinidad
Benefits of a CariCRIS Rating to an SME:
Latest Rating Actions by CariCRIS
• Access a loan or line of credit from a financial institution
• Access credit from international suppliers
• Improve your business operations for greater efficiency and profitability
DATE
WORKSHOP
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Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings
CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.
REGIONAL
Trinidad and Tobago
JMMB leads trading
OVERALL stock market activity yesterday resulted from trading in 17
securities of which three advanced, seven declined and seven traded
firm.
Deyalsingh: Value for money
'BY ANY stretch of the imagination' the country is getting value for $1.1
billion being spent on the construction of the Port of Spain General
Hospital Central Block, Health Minister Terrence Deyalsingh said yesterday.
PM signs intra-regional travel agreement
The Prime Minister on Wednesday signed TT on to the Caricom Multilateral
Air Services Agreement, intended to boost the regional transportation.
Minister: ‘We are managing water problems’
PUBLIC Utilities Minister Robert Le Hunte said steps are being taken to
ensure the population has an adequate water supply during the current
drought conditions.
Barbados
Cane cut
Cane farmers will be in for a $9.7 million payday at the end of next week.
Jamaica
JSIF Signs $43.9m MOU
The Ministry of National Security (MNS) has signed a memorandum of
understanding (MOU) with the Jamaica Social Investment Fund (JSIF) for a
further $43.9 million in financial support for the Jamaica Crime
Observatory Enhancement Project.
Sygnus Weighs Fundraising Options In Hunt For US$15m
SYGNUS CREDIT Investments Limited, SCI, issued credit to an additional six
companies in the December quarter, bringing its deals since inception to
16, and is signalling that it has more prospects lined up.
Guyana
Monitoring Metered Oil … Guyana should require Exxon, others to use
independent certifying firms, standards – Int’l Consultant
With a plethora of capacity issues facing the country in its bid to prepare
for oil, there is still a chance that it can ensure transparency and
accountability when it comes to monitoring metered oil. This came to the
fore when Kaieteur News conducted an interview with International Oil
and Gas Consultant, Anthony Paul.
Guyana Goldfields announces mill expansion
Guyana Goldfields Inc. has announced that the second phase of its mill
expansion is mechanically complete and was fully commissioned as of
February 25, 2019.
The Bahamas
Underspend Helps Hit Deficit Target
The government yesterday forecast it will narrowly beat this year’s fiscal
deficit target despite a $185m revenue shortfall caused by VAT, gaming
and enforcement underperformance.
Govt Targets ‘Value’ For Its $400m Soes
The government yesterday unveiled plans to ensure it gets “value for
money” from the near-$400m in annual subsidies it pumps into state-
owned enterprises (SOEs).
Antigua and Barbuda
ABTA expects increased tourist arrivals during the summer
The Antigua and Barbuda Tourism Authority (ABTA) is projecting a five
percent growth in tourist arrivals by air during the upcoming summer
months.
UPP protests GPH agreement, calls for gov’t to scrap deal
Leaders of the main opposition United Progressive Party (UPP) and
approximately 60 of their supporters staged a protest yesterday against
the agreement that the Government of Antigua and Barbuda entered
into recently with international cruise port developers, Global Ports
Holding LLC.
Antigua and Barbuda Continued
PM blasts Dundas over Global Ports comments
Prime Minister Gaston Browne has criticized the President of the Antigua
and Barbuda Cruise Tourism Association over comments he made on
OBSERVER AM yesterday.
British Virgin Islands
Public-private partnership being considered for Palm Grove development
City Manager Janice Braithwaite-Edwards has said a public-private
partnership with investors is to be employed to undertake a development
at the now-demolished Palm Grove Shopping Centre in Road Town.
Hon Marlon A. Penn to be appointed Opposition Leader
Following a crushing and devastating defeat from the Virgin Islands Party
(VIP) in the February 25, 2019, General Elections, National Democratic
Party (NDP 1) Deputy Chairman, Hon Marlon A. Penn (R8) will become the
new Opposition Leader in the new House of Assembly (HoA).
Grenada
Prime Minister signs two agreements at Caricom meeting in St.Kitts
Grenada has become signatory to the CARICOM Multilateral Air Services
Agreement which is intended to make the Caribbean Community a more
liberalised environment for CARICOM airlines.
Dominican Republic
Social Security redo cuts AFP’s profits, saves workers US$800M
Amid applause from the audience in the National Assembly, president
Danilo Medina said he sent to Congress a bill to amend the Social Security
Law which would significantly cut the profits of the Pension Fund
Administrators. (AFP), whose commissions will drop from 30 percent to
0.85%.
St. Kitts and Nevis
Integration movement momentum continues with renewed interest says
CARICOM Chairman, Dr Harris
A renewed interest was generated in the integration movement during
the successful 30th Inter-Sessional Meeting of the Conference of Heads of
Government of the Caribbean Community (CARICOM) held over a two-
day period (February 26-27) in St. Kitts and Nevis.
Venezuela
IMF Says Venezuela Crisis Worse Than Expected as Sanctions Burn
The worst economic crisis in modern Latin American history has gotten
"even worse" than expected as new U.S. sanctions exacerbate pain on
Venezuela, according to the International Monetary Fund.
INTERNATIONAL
United States
Tesla debuts $35,000 Model 3, sees loss in first quarter
Tesla Inc said on Thursday it would not be profitable in the first quarter, as
it offered for the first time a $35,000 version of its Model 3 sedan and said
its global sales would now be online-only, steps designed to increase
demand and cut overhead costs for the electric vehicle maker.
JPMorgan keeps Venezuela in emerging bond indexes
JPMorgan has retained dollar-denominated debt issued by Venezuela
and its state-run oil company PDVSA in a key emerging market bond
index as part of its monthly rebalancing, according to two fund
managers.
United Kingdom
UK factories slash jobs, stockpile at record pace before Brexit
British factories slashed jobs in February and braced for Brexit by
stockpiling goods at the fastest pace seen in any Group of Seven country
since records started in the early 1990s, a survey showed on Friday.
United Kingdom Continued
UK pays Eurotunnel 33 million pounds over 'secretive' no-deal Brexit ferry
contracts
Britain has paid out 33 million pounds ($43.7 million) to settle a claim with
Eurotunnel which runs the Channel Tunnel between Britain and France
after the firm took legal action over the process to award ferry contracts
to cope with a no-deal Brexit.
Europe
EU banks watchdog urges protection of deposits in case of no deal Brexit
The EU banking watchdog has urged member states to offer deposit
account protection for customers of branches of British banks in the rest of
the European Union in case Britain crashes out of the bloc this month with
no deal.
Euro zone inflation's rise is a mixed bag for ECB
Euro zone inflation inched up last month, Eurostat said on Friday, mild
comfort for the European Central Bank as it prepares fresh measures to
mitigate an unexpectedly deep and long economic slowdown.
European shares start March on a high as Moncler, WPP shine
European shares rose to five-month highs in the morning of the first trading
day of March as a fresh batch of corporate updates helped drive a risk-
on mood after U.S. President Donald Trump earlier fueled some concerns
over trade talks with China.
German jobless drop, retail sales rise bode well for household spending
Germany’s jobless total fell far more than expected in February and retail
sales surged in January, data showed on Friday, boosting expectations
that private consumption will prop up growth in Europe’s largest economy
in the first quarter.
Euro zone February factory growth slammed into reverse
Euro zone manufacturing activity went into reverse for the first time in over
five years last month as trade war worries, slowing global growth and
Britain’s imminent departure from the European Union hit demand, a
survey found.
China
China says Canada has questions to answer on judicial independence
China’s Foreign Ministry grabbed a chance to question the state of
judicial independence in Canada on Friday, as Prime Minister Justin
Trudeau’s government faced accusations at home that it had tried to
intervene to stop a corruption trial.
India
India approves $1.4 billion electric vehicle incentive scheme
India’s cabinet has approved a scheme to spend $1.4 billion to subsidize
sales of electric and hybrid vehicles as part of efforts to curb pollution and
reduce dependency on fossil fuels.
Global
Brent prices slip but OPEC tightening supplies support
Brent crude fell on Friday, weighed down by surging U.S. supply and
concerns of a global economic slowdown, but falling OPEC supplies put a
floor under prices.
Brent prices slip but OPEC tightening supplies support Friday 1st March, 2019 – Reuters
Brent crude fell on Friday, weighed down by surging U.S. supply and
concerns of a global economic slowdown, but falling OPEC supplies put a
floor under prices.
International Brent crude futures were at $66.08 per barrel at 1037 GMT,
down 23 cents from Thursday’s settlement.
U.S. West Texas Intermediate (WTI) crude oil futures were at $57.24 per
barrel, up 2 cents.
The U.S. Energy Department said on Thursday it was offering up to 6 million
barrels of crude from national emergency reserves to raise funds to
modernize U.S. strategic oil reserves.
Canada’s main oil-producing province of Alberta on Thursday raised the
amount of crude that companies can produce in April to 3.66 million
barrels per day, an increase of 100,000 bpd from the limit imposed in
January.
But those moves were partially offset by reductions elsewhere.
In Venezuela, oil exports have plunged by 40 percent to around 920,000
barrels per day (bpd) since the U.S. government slapped sanctions on its
petroleum industry on Jan. 28.
The drop comes as the Organization of the Petroleum Exporting Countries
(OPEC), of which Venezuela is a founding member, leads efforts to
withhold around 1.2 million bpd of supply to prop up prices. Venezuela is
exempt from the cuts.
“OPEC and its 10 allies are doing their job and this time they are
stubborn,” London-based brokerage PVM said in a note, referring to the
supply restrictions which have been in place since the start of the year.
On the demand side, a Reuters poll showed analysts expect global fuel
demand to slow this year amid a broad economic slowdown.
China’s February factory activity fell for a third month as the world’s
second-largest economy continued to struggle with weak export orders, a
private survey showed on Friday.
The weakness is also being felt across the wider region. South Korea’s
exports contracted at their steepest pace in nearly three years in February
as demand from China cooled further.
Despite this, fuel consumption, especially in Asia’s developing economies
which are key drivers of global oil demand, is so far holding up.
India’s diesel consumption, for example, is expected to rise to a record
this year amid economic growth of around 7 percent.
<< Back to news headlines >>
Tesla debuts $35,000 Model 3, sees loss in first quarter Friday 1st March, 2019 – Reuters
Tesla Inc said on Thursday it would not be profitable in the first quarter, as
it offered for the first time a $35,000 version of its Model 3 sedan and said
its global sales would now be online-only, steps designed to increase
demand and cut overhead costs for the electric vehicle maker.
Chief Executive Elon Musk’s warning on profit during a conference call
with members of the media, which did not include Reuters, contrasted
with Tesla’s statements last month that it was expecting a “very small” net
profit in the first quarter.
Shares of Tesla fell 3.4 percent after hours. Investors have voiced concerns
about whether Tesla would be able to maintain profit margins through
cost cutting - such as recent layoffs - as it reduces prices of its newest
vehicle.
Still, the price drop could quell concerns from some analysts that demand
for the higher-priced versions of the Model 3 was beginning to dry up in
the United States, especially after a federal tax credit was cut in half this
year.
“Tesla wants to drum up demand,” said Elazar Advisors’ Chaim Siegel.
“There was a slowdown in the U.S. as the tax credits dropped. (There are)
more tax credit hits later in the year too so they are trying to be
proactive.”
Musk has often shared that his strategy for Tesla was to build higher-priced
cars - the Model S and X - whose success would ultimately usher in a
$35,000 mass-market car, followed by an SUV, the Model Y, which is
currently in development. But customers who reserved the Model 3 at that
lower price have waited nearly three years since Musk first promised it.
An online-only sales strategy, along with other changes, would allow
vehicle prices to fall by about 6 percent on average, Tesla said in a blog
on its website bit.ly/2IHjLw4. Over the next few months, Tesla will wind
down "many" of its stores, while investing in its service system, it said.
Online-only sales represent a dramatic shift for the company that has
prided itself on its boutique retail stores. In June 2017, Musk pledged to
increase the number of stores, saying they had “barely touched the
surface” of what was possible.
As of the fourth quarter, Tesla said it recently opened 27 new locations,
bringing its total of stores and service centers to 378.
Thursday was the third time this year that Tesla lowered the price on the
Model 3, which recently started at $42,900.
The new $35,000 version has a top speed of 130 miles per hour (209 km per
hour) and can go from zero to 60 mph in 5.6 seconds, Tesla said. For
$2,000 more, Tesla offers a version with a range of 240 miles (386 km) and
a top speed of 140 mph.
GAME CHANGER WITH SPEED BUMPS
A $35,000 Model 3 is a major shot in the arm for Tesla sales during a period
of major challenges, including deliveries of the Model 3 to Europe and
China and construction of a factory in Shanghai.
“This is a game changer,” said Wedbush Securities analyst Daniel Ives.
Since tax credits will continue to decline over 2019, “this is really exactly
what the doctor ordered,” he said.
He warned, however, there could be “more speed bumps ahead,” if
more sales volume exacerbates prior problems with deliveries and service
to customers.
Musk declined to answer a question on what the profit margins of the
$35,000 vehicle would be, according to the New York Times. Gross margins
on the car were above 20 percent in the fourth quarter.
“The margin on the vehicle obviously is going to be very small if there’s
any margin there at all,” said David Kudla, CEO of Mainstay Capital
Management, which has a short position in Tesla.
As part of cost-cutting efforts, Tesla last month reduced its full-time
headcount by 7 percent, following a similar cut of 9 percent to its
workforce in June 2018.
The price cut on the Model 3 comes three days after renewed tensions
between Musk and U.S. Securities and Exchange Commission. The agency
petitioned a judge this week to have Tesla’s CEO found in contempt of an
October settlement between the parties. The SEC accuses Musk of having
made material statements about production levels on Twitter without first
having them vetted internally.
That settlement between Musk, Tesla and the SEC concerned Musk’s
August Twitter post in which he claimed to have “funding secured” to
take Tesla private at $420 per share.
On Friday, Tesla is due to repay a $920 million convertible bond.
Convertible issues give bondholders the right to trade their debt for equity
after shares rise over a certain price. Tesla shares are currently about $40
below the $359.87 conversion price.
Tesla had $3.7 billion in cash and cash equivalents at the end of
December.
<< Back to news headlines >>
JPMorgan keeps Venezuela in emerging bond indexes Friday 1st March, 2019 – Reuters
JPMorgan has retained dollar-denominated debt issued by Venezuela
and its state-run oil company PDVSA in a key emerging market bond
index as part of its monthly rebalancing, according to two fund
managers.
Investors have been concerned about the status of debt issued by
Venezuela and its oil firm after Washington imposed sweeping sanctions
earlier this year.
With the curbs, trade in Venezuelan debt has ground to a halt, leaving
some investors concerned the price is not reflective of the assets’ true
value and making it harder for passive funds to accurately reflect the
indexes.
JPMorgan, which declined to comment on its monthly rebalancing, had
sent out a survey to its clients ahead of the rebalancing asking more
specific questions about Venezuela, Tina Vandersteel, Boston-based head
of emerging country debt at Grantham Mayo Van Otterloo & Co, told
Reuters.
“JPM had launched a survey, which I’d completed, about what to do
about VENZ. The feedback I gave them was, per their index liquidity rules,
while the sanctions prevailed, they should be removed,” Vandersteel said
in an email.
Investment managers’ willingness to support the eviction of Venezuelan
debt from the indexes is also influenced by the flexibility of their funds’
investment mandates.
A leading exchange-traded fund from BlackRock, the iShares JPMorgan
USD Emerging Markets Bond ETF, for example, is allowed to invest up to 20
percent of its assets in securities not in the index, its prospectus showed.
Yet making changes to portfolios in reality is not easy.
“To actually exit the exposure is nearly impossible - especially for larger
funds - as there is no trading,” said Uday Patnaik, Head of Emerging
Market Debt at Legal & General Investment Management.
“Placing the country weight to 0 percent while freezing the price of the
securities makes the most sense,” he added.
At the end of January, PDVSA had a weight of 0.53 in JPMorgan’s EMBI
Global Diversified index while Venezuela Republic bonds were at 0.66,
according to the index provider.
Reuters did not have access to February index weight data.
Venezuela - the country with the largest oil reserves in the world - has
defaulted on most of its $63 billion of debt as it has spiraled into its worst-
ever economic crisis. The International Monetary Fund has forecast
inflation will hit 10 million percent this year.
Since the start of the year, bonds issued by Venezuela and PDVSA
chalked up steady gains amid weeks of protests that saw pressure mount
on President Nicolas Maduro.
However, trading in bonds ground to a halt after Washington imposed a
swathe of sanctions, including a ban on U.S. investors from trading in the
secondary market, other than divestment.
JPMorgan communicates any changes of index constituents to its clients
on the last trading day of the month. The EMBI Global index includes $24.1
billion of dollar-denominated PDVSA debt, according to the index
provider.
<< Back to news headlines >>
EU banks watchdog urges protection of deposits in case of no deal Brexit Friday 1st March, 2019 – Reuters
The EU banking watchdog has urged member states to offer deposit
account protection for customers of branches of British banks in the rest of
the European Union in case Britain crashes out of the bloc this month with
no deal.
Bank deposits are protected by national deposit guarantee schemes so
that if a lender went bust, sums up to 100,000 euros remain safe under EU
law - but that does not extend to branches of a bank that would be
outside the EU.
The European Banking Authority - itself having to move from London to
Paris because of Brexit - said it was calling on the schemes in EU states to
ensure that depositors in the branches of UK banks in the bloc are
adequately protected in case of a no-deal departure by Britain on March
29.
“The withdrawal of the UK from the EU is not likely to have an impact on
the protection of deposits in the vast majority of credit institutions
operating in the EU,” EBA said in an “opinion” published on Friday.
“It may affect branches of UK credit institutions in the EU depending on
the decisions taken by the UK authorities on the potential exclusion of
such branches from the scope of the UK depositor protection scheme,
after the UK’s withdrawal from the EU.”
EBA said it had to take action in an “unprecedented” situation, given that
the EU law on deposit protection does not set out how cross-border
payouts involving a non-EU branch should be carried out.
It noted that the Bank of England proposed in October that EU branches
of UK banks would no longer be protected by Britain’s deposit protection
scheme.
The BoE has not yet made a definitive statement on this, EBA said.
Britain’s intended approach would mean customers of UK banks in the EU
would lose protection unless the branches joined the local deposit
guarantee scheme, EBA added.
<< Back to news headlines >>
Euro zone inflation's rise is a mixed bag for ECB Friday 1st March, 2019 – Reuters
Euro zone inflation inched up last month, Eurostat said on Friday, mild
comfort for the European Central Bank as it prepares fresh measures to
mitigate an unexpectedly deep and long economic slowdown.
Consumer inflation in the 19 countries sharing the euro picked up to 1.5
percent in February, as expected, from 1.4 percent in January, as food
and energy costs continued to rise.
But underlying inflation, closely watched by the ECB, failed to rise. Price
growth excluding food and energy held steady at 1.2 percent, short of
the central bank’s overall inflation target of almost 2 percent.
This may be especially concerning for the ECB, because it has long
predicted a pick-up in core inflation. The weak readings suggest a poor
understanding of how inflation dynamics changed after the euro zone’s
debt crisis.
They also give the ECB yet another reason to delay removing any further
stimulus, especially since the bloc’s growth weakness points to a dire need
of more support, not less.
Indeed, the ECB, which just ended a 2.6 trillion-euro bond-buying scheme
aimed at pushing down borrowing costs, is already contemplating new
support measures, with the first possibly coming at its next policy meeting,
on March 7.
Wanting to combat a slowdown in bank lending, the ECB is likely to signal
more long-term loans to banks, in the hope of maintaining the flow of
credit and investments.
While the bank continues to signal for steady rates only through the
summer, few believe rates will rise this year. Markets have already moved
their expectations for an increase to mid-2020.
In a separate release, Eurostat reported the euro zone’s unemployment
rate was 7.8 percent in January, unchanged from a revised figure a
month earlier, although 23,000 fewer people were unemployed than in
December.
The 7.8 percent reading was the lowest since October 2008. December’s
number had previously been estimated at 7.9 percent.
<< Back to news headlines >>
European shares start March on a high as Moncler, WPP shine Friday 1st March, 2019 – Reuters
European shares rose to five-month highs in the morning of the first trading
day of March as a fresh batch of corporate updates helped drive a risk-
on mood after U.S. President Donald Trump earlier fueled some concerns
over trade talks with China.
The pan-regional STOXX 600 index was up 0.7 percent by 0926 GMT to
above 375 points, a level not see since Oct.8.
“Momentum has flagged slightly in recent sessions and concrete news of
an agreement between the U.S. and China is now needed to prolong the
rally in risk assets,” wrote Peel Hunt analyst Ian Williams, noting that in the
meantime it was up to corporate earnings to maintain morale.
Gains spread across all regional bourses with Germany’s exporter-heavy
DAX leading the charge thanks notably to rising car makers stocks.
“If corporate profits do grow, which I think they will, equities look
reasonably good value,” said Edward Rumble, European equity portfolio
manager at RWC Partners.
The optimism on markets came despite mixed news from economic
indicators.
Data showed euro-zone manufacturing activity went into reverse for the
first time in over five years, but German retail sales jumped and the bloc’s
powerhouse unemployment remained at record lows.
All sectors were on the rise but telecoms were flat. The sector, a traditional
defensive play, has suffered from the 5-percent fall experienced by
Belgium’s Proximus after it published disappointing results.
Italian luxury group Moncler stole the spotlight with its 2018 results, which
broker Jefferies called “remarkable”, and rose 8.7 percent.
Moncler peer benefited from the rally with Gucci owner Kering up 3
percent, LVMH up 2.1 percent and Burberry rose 1.8 percent.
In the less fashionable food industry, Spanish sausage casing producer
Viscofan was up 7.6 percent after it struck an upbeat note on 2019
guidance and Kepler Cheuvreux upgraded it to “hold” from “reduce”.
Britain’s WPP, the world’s biggest advertising company, rose 6.6 percent
after its full-year results came as a relief amid fears the industry is facing
structural headwinds.
Investors have been cautious about the company since French rival
Publicis earlier this month results alarmed the market.
Among financials, Jupiter Fund Management was another big gainer, up
8.5 percent after its dividend beat estimates.
“The company paid out 90 percent of underlying earnings, driving the
beat,” write KBW analysts.
It was a different story for hedge fund manager Man Group which lost 3.6
percent after reporting funds under management fell last year.
Another disappointment came in from and Rightmove which fell 5
percent.
The property website reported its slowest full-year underlying operating
profit growth in nine years, sending its shares down nearly 7 percent at the
bottom of London’s blue-chip index.
<< Back to news headlines >>
German jobless drop, retail sales rise bode well for household spending Friday 1st March, 2019 – Reuters
Germany’s jobless total fell far more than expected in February and retail
sales surged in January, data showed on Friday, boosting expectations
that private consumption will prop up growth in Europe’s largest economy
in the first quarter.
Household spending has become a key growth driver in recent years as
Germans benefit from record-high employment and low borrowing costs
and a GfK survey published this week showed the good mood among
German shoppers was unchanged going into March.
The number of people out of work in Germany decreased by 21,000 to
2.236 million in February, seasonally-adjusted data from the Labour Office
showed. That compared with the forecast for a drop of 5,000.
The unemployment rate remained at 5.0 percent, the lowest since
German reunification in 1990.
Separate data from the Statistics Office showed German retail sales
jumping by 3.3 percent on the month in January, marking their strongest
rise since October 2016. But retail sales are a volatile indicator often
subject to revision.
“Low unemployment, rising incomes and low interest rates are supporting
consumption and housing construction,” said Joerg Zeuner, economist at
KfW bank.
But he warned that trade conflicts caused by the United States and
uncertainty related to Britain’s expected departure from the European
Union were likely to take their toll.
“The economic engine is stuttering, which will slow employment growth
this year,” he said.
Negotiated wages in Germany rose by 2.9 percent on average in 2018
compared with the previous year, data from the Statistics Office showed
on Friday.
They rose more sharply than consumer prices which increased by 1.8
percent during the same period, the data showed, suggesting consumers
have more money in their pockets to spend despite rising inflation.
The German economy posted its weakest growth in five years in 2018 and
a survey published on Friday showed slumping exports contributed to the
second successive monthly contraction in Germany’s manufacturing
sector in February.
<< Back to news headlines >>
Euro zone February factory growth slammed into reverse Friday 1st March, 2019 – Reuters
Euro zone manufacturing activity went into reverse for the first time in over
five years last month as trade war worries, slowing global growth and
Britain’s imminent departure from the European Union hit demand, a
survey found.
The downbeat survey, which showed the slowdown was being led by
Europe’s powerhouse Germany, will likely concern European Central Bank
policymakers, coming just two months after they drew a line under their
2.6 trillion euro stimulus programme.
Faced with a further slowdown in euro zone growth, the ECB will re-launch
cheap bank loans as early as June and delay rate hikes to 2020 in a bid to
stave off a recession, a Reuters poll predicted on Friday. [ECILT/EU]
IHS Markit’s February final manufacturing Purchasing Managers’ Index fell
for a seventh month, coming in at 49.3 from January’s 50.5, just above a
flash reading but its first time below the 50 level separating growth from
contraction since June 2013.
An index measuring output which feeds into a composite PMI due on
Tuesday - seen as a good gauge of economic health - fell to 49.4 from
50.5, its lowest since May 2013.
Earlier figures from Germany, Europe’s largest economy, showed factory
growth contracted for a second month. France’s manufacturing PMI
showed growth slowed sharply while Spain’s went sub-50 for the first time
in over five years.
“Euro area manufacturing is in its deepest downturn for almost six years,
with forward-looking indicators suggesting risks are tilted further to the
downside as we move into spring,” said Chris Williamson, chief business
economist at IHS Markit.
Giving little hope for a turnaround in the bloc’s fortune anytime soon, new
orders fell at the fastest rate in almost six years, backlogs of work were run
down, purchases of raw materials were curtailed and hiring remained
weak.
Perhaps unsurprisingly, optimism was at one of its lowest levels since IHS
Markit began collecting the data in July 2012. The future output index fell
to 56.7 from 57.4.
“In addition to widespread trade war worries, often linked to U.S. tariffs,
and concerns regarding the outlook for the global economy, companies
report that heightened political uncertainty, including Brexit, is hitting
demand and driving increased risk aversion,” Williamson said.
<< Back to news headlines >>
India approves $1.4 billion electric vehicle incentive scheme Friday 1st March, 2019 – Reuters
India’s cabinet has approved a scheme to spend $1.4 billion to subsidize
sales of electric and hybrid vehicles as part of efforts to curb pollution and
reduce dependency on fossil fuels.
Reuters reported earlier on Thursday that the government could approve
the scheme, known as Faster Adoption and Manufacturing of Hybrid and
Electric Vehicles (FAME), as early as this week.
Under the scheme, subsidies would be offered based on the battery
capacity of the vehicle, ranging from buses and cars to three-wheelers
and motorbikes, a government statement said. The incentives would be
applicable only on vehicles costing less than 1.5 million Indian rupees
($21,177).
The benefits of the incentives will be extended to only those vehicles fitted
with advanced batteries using lithium ion or other new technologies, the
government said.
India, one of the world’s fastest-growing car markets, still has negligible
sales of electric vehicles (EVs).
The government had set a target in 2017 for all new vehicles to be electric
by 2030, but critics said the high cost of batteries and a lack of charging
points were major obstacles. Carmakers also said the target was too
ambitious.
The transport ministry later scaled back that target to EVs making up 15
percent of vehicle sales in five years.
India will spend 100 billion rupees ($1.4 billion) over three years on
incentives, the government said.
A source had earlier told Reuters that subsidies would amount to 10,000
rupees for each kilowatt hour (kWh) of battery capacity in a vehicle,
amounting to about 50 percent of the battery cost.
The average price of an electric car in India is now about 1 million rupees.
Cars typically have a battery up to 20 kWh, so the discount under the new
scheme would be 200,000 rupees.
Automakers Mahindra & Mahindra and Tata Motors both produce electric
cars in India. Maruti Suzuki and Toyota Motor Co build hybrid cars.
Maruti, controlled by Japan’s Suzuki Motor Corp, last year said it would
start testing 50 electric vehicle prototypes. It plans to launch EVs in India
around 2020, in cooperation with Toyota.
<< Back to news headlines >>
UK factories slash jobs, stockpile at record pace before Brexit Friday 1st March, 2019 – Reuters
British factories slashed jobs in February and braced for Brexit by
stockpiling goods at the fastest pace seen in any Group of Seven country
since records started in the early 1990s, a survey showed on Friday.
The IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI),
a gauge of activity in British industry, fell to 52.0 from 52.6 in January, as
expected in a Reuters poll of economists.
Although stronger than French and German factory PMIs, IHS Markit said
the boost to British factory output mostly reflected stockpiling and a drive
to cut work backlogs in case the country fails to get a transition deal to
smooth the shock of Brexit.
The PMI’s stocks of purchases index rose in February to 59.1, the highest
level on record for any G7 PMI.
Some 70 percent of factories cited Brexit as the reason behind the record
drive to build up stocks of parts and materials, survey compiler IHS Markit
said.
Britain’s departure from the European Union is scheduled to take place on
March 29, but lawmakers in London have yet to agree on the terms of a
divorce deal, leaving open the possibility of a no-deal Brexit.
The country’s economy slowed sharply in late 2018, hit by a loss of
momentum in the global economy as well as Brexit concerns. Economists
say the weakness has continued in 2019.
Prime Minister Theresa May opened up the possibility of a short extension
to the exit date this week.
Business groups have expressed exasperation at the lack of clarity around
Brexit and Friday’s PMI of the manufacturing sector - representing about
10 percent of total British economic output - added to signs that the
impasse is hurting companies.
Factories cut jobs at the fastest pace in six years and were increasingly
downbeat about the future, the survey showed.
“Official data confirm that manufacturing is already in recession, and the
February PMI offers little evidence that any short-lived boost to output
from stock-building is sufficient to claw the sector back into growth
territory,” IHS Markit director Rob Dobson said.
Stockpiling is likely to take a chunk out of manufacturers’ operating profit,
leaving less money for investment even in the event that Brexit goes
smoothly from here.
The PMI showed export orders declined for a fifth month out of the last
seven, reflecting in part a pronounced slowdown in the global economy,
especially in Europe.
“Manufacturing and the broader UK economy therefore face a difficult
2019, with the slowdown being exacerbated later in the year as inventory
positions are unwound and Brexit-related headwinds likely to linger,”
Dobson said.
PMI data for the construction and dominant services sector are due on
Monday and Tuesday.
<< Back to news headlines >>
UK pays Eurotunnel 33 million pounds over 'secretive' no-deal Brexit ferry
contracts Friday 1st March, 2019 – Reuters
Britain has paid out 33 million pounds ($43.7 million) to settle a claim with
Eurotunnel which runs the Channel Tunnel between Britain and France
after the firm took legal action over the process to award ferry contracts
to cope with a no-deal Brexit.
Eurotunnel had begun court action after the Department for Transport
contracted ferry companies in December to ensure supplies to the state-
run National Health Service (NHS) and other critical imports should Britain
leave the European Union on March 29 without a deal.
One of the companies awarded a contract was Seaborne Freight, a
decision that provoked criticism as the company did not have any ships
and the deal was subsequently terminated last month.
In a statement, the British government said it had reached agreement
with Eurotunnel, whose holding company is Getlink, to settle the case and
ensure the Channel Tunnel would continue to keep passengers and
freight moving after Brexit.
“The agreement with Eurotunnel secures the government’s additional
freight capacity, helping ensure that the NHS has essential medicines in
the event of a no-deal Brexit,” British Transport Secretary Chris Grayling
said.
“While it is disappointing that Eurotunnel chose to take legal action on
contracts in place to ensure the smooth supply of vital medicines, I am
pleased that this agreement will ensure the Channel Tunnel is ready for a
post-Brexit world.”
In 2018, Eurotunnel carried 21 million passengers, 17 million trucks, 2.7
million cars and 26 percent of trade between Britain and the EU, and
there are fears that a no deal Brexit could disrupt supplies and choke
supply chains.
“Eurotunnel has concluded an out of court agreement ... that will ensure
the Channel Tunnel remains the preferred route for vital goods to travel
between the EU and the UK,” Eurotunnel said in a statement.
“The agreement enables the development of infrastructure, security and
border measures that will guarantee the flow of vehicles carrying urgent
and vital goods, thereby keeping supply chains essential to both industry
and consumers moving.”
Businesses have been warning of long tailbacks for lorries transporting
goods between Britain and mainland Europe, and the British government
has said most goods from the EU will be allowed into Britain without full
customs checks for at least three months if there is no Brexit deal.
In January, Eurotunnel said it was taking steps to ensure that a no-deal
Brexit would have minimum impact on its transport network and in
February Getlink said it had spent 13 million euros in Brexit preparations in
2018 and so far in 2019.
<< Back to news headlines >>
China says Canada has questions to answer on judicial independence Friday 1st March, 2019 – Reuters
China’s Foreign Ministry grabbed a chance to question the state of
judicial independence in Canada on Friday, as Prime Minister Justin
Trudeau’s government faced accusations at home that it had tried to
intervene to stop a corruption trial.
Trudeau’s domestic troubles have attracted attention in Chinese state
media due to his previous assertion that his government cannot interfere
in the case of a senior Huawei Technologies Co Ltd executive arrested in
Canada and now fighting extradition to the United States.
China has repeatedly called for the release of Meng Wanzhou, the
telecommunication giant’s chief financial officer, arrested in Vancouver in
December at Washington’s request. In late January the U.S. Justice
Department charged Huawei and Meng with conspiring to violate U.S.
sanctions on Iran.
At a regular daily news briefing in Beijing, China’s Foreign Ministry took the
opportunity to take Canada to task over possible double standards, by
commenting on a domestic Canadian political issue that does not
otherwise involve China.
Trudeau has disputed allegations by his former justice minister that
government officials inappropriately pressured her to help the SNC-Lavalin
construction firm avoid a corruption trial.
Asked by a state media journalist if it was contradictory for Trudeau to say
he couldn’t interfere in Meng’s case and yet his government be accused
of trying to intervene in the SNC-Lavalin case, Foreign Ministry spokesman
Lu Kang said he “really liked this question”.
“Of course I think that this is a question that should be asked of the
Canadian government,” Lu said.
“In fact on this case you have mentioned, people in Canada are paying
it a great deal of attention,” he added. “In fact, not only Chinese and
Canadian citizens, but the whole world are extremely interested to hear
how the Canadian government answers this question.”
Both Meng and Huawei have denied the U.S. allegations.
Ottawa has until midnight on Friday (0500 GMT Saturday) to announce
whether it will issue an authority to proceed, which would allow a court in
the Pacific province of British Columbia to start a formal extradition
hearing.
<< Back to news headlines >>
JMMB leads trading Friday 1st March, 2019 – Trinidad Express Newspapers
OVERALL stock market activity yesterday resulted from trading in 17
securities of which three advanced, seven declined and seven traded
firm.
Trading activity on the First Tier Market registered a volume of 154,538
shares crossing the floor of the Exchange valued at $877,473.78.
JMMB Group Ltd was the volume leader with 112,693 shares changing
hands for a value of $202,182.11.
Massy Holdings Ltd registered the day's largest gain, increasing $3.84 to
end the day at $52.00. Conversely, Republic Financial Holdings Ltd
registered the day's largest decline, falling $5.00 to close at $120.00.
On the Mutual Fund Market 160,958 shares changed hands for a value of
$3,243,488.00.
CLICO Investment Fund was the most active security, with a volume of
160,758 shares valued at $3,240,768.
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 >>
Deyalsingh: Value for money Friday 1st March, 2019 – Trinidad Express Newspapers
'BY ANY stretch of the imagination' the country is getting value for $1.1
billion being spent on the construction of the Port of Spain General
Hospital Central Block, Health Minister Terrence Deyalsingh said yesterday.
'The cost per bed at the PoS Central block is significantly less than what
we have built other facilities for in the recent past,' Deyalsingh stated. He
said the Central Block is a 'complete hospital and the only thing we that
was not being recreated was an Accident and Emergency Unit, because
there was already one at PoS General Hospital. He said Central Block
which should have been 'priority number one' for any Government from
2009'.
Deyalsingh was speaking at the post-Cabinet news conference at the
Diplomatic Centre, St Ann's.
'I want you as responsible members in the media to juxtapose $1.1 billion
for a 540-bed hospital with $1.2 billion for a 100-bed hospital in Point Fortin
and $1.6 billion for a 150-bed hospital in Arima and a $1.5 billion for a 240-
bed hospital in Couva,' he said.
He dismissed as 'UNC misinformation' reports that the savings made by this
Government on the contracts for the Point Fortin and Arima hospitals were
due to a reduced the scope of works. Government was able to
renegotiate the contract price for the Arima Hospital from $1.8 billion (the
price agreed to by the last Government) to $1.6 billion and the Point Fortin
Hospital from $1.5 billion to $1.2 billion. Deyalsingh said the reductions
were achieved by renegotiating the cost of UDeCOTT's (Urban
Development Corporation of Trinidad and Tobago) fees. 'This government
did not touch one square foot' of either building, he said.
Deyalsingh said the PoS Central Block which would have 540 beds was
five times the size of Point Fortin and over two and half times the size of
Arima, would cost significantly less than both hospitals.
He also refuted reports that $1.1 billion price tag did not include
equipment. He said the hospital would come equipped with an MRI,
('which PoS hospital currently does not have'), two new CT scanners, two
new X-ray machines, a catheterisation lab (to do angioplasty), a machine
for bone density testing. Included in the Central Block would be ten new
operating theatres, ten ICU beds, ten high dependency beds, a coronary
unit, an ICU for children, haematology unit, internal medicine unit, full
rehab facilities, a neurosurgery unit, an orthopaedic unit, radiology and
full lab facilities.
Deyalsingh also announced that Cabinet approved a confirmed a note
on the creation of a position of National Director of Mental Health. This
individual would advise the Minister of Health on policy to treat with
mental health and would drive the policy directive for the
decentralisation of mental health away from the St Ann's hospital and into
the communities, Deyalsingh said.
'This would change the landscape of how we deal with mental health,' he
added.
<< Back to news headlines >>
PM signs intra-regional travel agreement Thursday 28th February, 2019 – Trinidad and Tobago Newsday
The Prime Minister on Wednesday signed TT on to the Caricom Multilateral
Air Services Agreement, intended to boost the regional transportation.
Dr Rowley and his fellow Caricom Heads of Government signed the
agreement on the final day of their latest Inter-sessional Meeting in St Kitts
and Nevis.
The Caricom Multilateral Air Services Agreement expands the scope for
airlines owned by Caricom nations to provide air services throughout the
Community, the Office of the Prime Minister said in a release.
The agreement will allow for no restriction on routes, capacity or traffic
rights and should facilitate increased intra-regional travel as well as
provide more cargo options for exporters and importers with resulting cost
savings.
When fully implemented this should provide a major boost to the regional
transportation sector, which is a critical aspect of the Caricom Single
Market and Economy (CSME). Discussions on the agreement was first
announced at a CSME meeting in Port of Spain last December.
<< Back to news headlines >>
Minister: ‘We are managing water problems’ Thursday 28th February, 2019 – Trinidad and Tobago Newsday
PUBLIC Utilities Minister Robert Le Hunte said steps are being taken to
ensure the population has an adequate water supply during the current
drought conditions.
Le Hunte said the drought not something which was created by the Water
and Sewerage Authority (WASA) or himself and is "well documented" by
the Meteorological Office.
This is not the first time the country has faced a drought, he said, recalling
that in 2010, water production dropped from 240 million to 180 million
gallons per day, and drastic cutbacks were made. Water production
currently stands at 215 million gallons per day, Le Hunte said, and efforts
are being made to ensure that water resources are properly managed.
This includes rehabilitating old wells, drilling new wells and talking with
Desalcott about boosting its production from the desalination plant.
Twenty-seven wells were identified for rehabilitation and 25 have been
rehabilitated to date. He said a further 15 wells are also being looked at.
With 60 per cent of the country's water resources being surface water, Le
Hunte said drought conditions will affect them.
He acknowledged that WASA has aged infrastructure and steps are
being made to upgrade it. Compared to other countries, TT has a high
water usage, he said, and of the 240 million gallons per day the country
produces, it should only be using 115 million gallons.
Not all parts of the country have a 24/7 water supply and changes in the
water schedules have inconvenienced some communities, he admitted,
but to have a 24/7 water supply and high usage, the country would need
to produce 270 million gallons a day.
To cater for the harsh dry season, Le Hunte said WASA has developed a
water management supply plan, which includes redistributing water from
unaffected areas with high pressures to more water-stressed areas on the
periphery of the distribution system, enhanced leak repairs and increased
water trucking.
Le Hunte also stressed the need for everyone to play their part in water
conservation and not engage in blame games, because this creates a
false reality. The water problems will not be solved overnight by magic, he
stressed, but by addressing those problems systematically.
In a release, Gary Aboud, secretary of the activist group Fishermen and
Friends of the Sea, said water is a human right, and successive
governments have contributed to the current problem over time.
WASA said in a statement that amended water schedules will be released
on its website, Facebook and Twitter pages on Friday.
<< Back to news headlines >>
ABTA expects increased tourist arrivals during the summer Thursday 28th February, 2019 – The Antigua Observer
The Antigua and Barbuda Tourism Authority (ABTA) is projecting a five
percent growth in tourist arrivals by air during the upcoming summer
months.
Speaking at a recent press conference, ABTA’s Chief Executive Officer
Colin James said achieving this level of growth will require key
stakeholders in the tourism industry to collaborate with the authority in its
summer campaign.
“The ability of [the summer campaign] to succeed is just getting the
resources we need in a timely manner and executing all the campaigns
and the strategies that we said we will be doing. It is incumbent on us to
get the buy-in from all the partners and it is already communicated that
everyone is willing to work and support this summer campaign,” he said.
The five percent growth projection is expected to equate to 5,000 new air
arrivals during May through October. Incoming chairperson of the ABTA
Board of Directors, Lorraine Headley-Raeburn, said the increase in air
arrivals was projected to inject US $12 million into the Antigua and
Barbuda economy.
“We actually did some projections in terms of the numbers that we expect
to make as a result of the campaign based on previous ones done by the
Tourism Authority. [Based on previous] spending of each
visitor on island, for the US $1 million we would invest in this campaign – if
we were to see 5,000 growth [in visitors] – we would be looking at US $12
million that we would see on island spend across the destination,” she
said.
The projected growth is part of the ABTA’s summer campaign initiative
through which the Tourism Authority hopes to highlight various activities in
Antigua and Barbuda that are geared towards health and wellness,
yachting and romance.
<< Back to news headlines >>
UPP protests GPH agreement, calls for gov’t to scrap deal Friday 1st March, 2019 – The Antigua Observer
Leaders of the main opposition United Progressive Party (UPP) and
approximately 60 of their supporters staged a protest yesterday against
the agreement that the Government of Antigua and Barbuda entered
into recently with international cruise port developers, Global Ports
Holding LLC.
The protesters assembled early Thursday morning at Heritage Quay to
show their dissatisfaction with what the party termed a deal that
amounted to a “massive sellout” by the Gaston Browne administration.
Former Prime Minister and former political leader of the UPP, Baldwin
Spencer, said this agreement is not in the interest of Antigua and Barbuda
and called on the government to scrap it.
“We are drawing attention to the massive sellout of Antigua and Barbuda
by this government over the GPH agreement and we are making a
statement that this agreement must be scrapped,” Spencer said.
He said he did not understand why the government would ever sign the
agreement in the first place.
“In fact, it strikes at the very heart of what we have been seeking to do,
which is to empower our people and to change this idea that we have to
give everything away every time we want to develop [the country],” he
said.
OBSERVER media also spoke to the Leader of the Opposition and the
UPP’s Deputy Political Leader, Jamal Pringle, who said that the number of
people at the protest was representative of the level of discontent that
the public has with the Global Ports Agreement.
“It goes to show that there is a lot people against what is happening and
are willing to stand up to the government and protest against [the
agreement],” Pringle said.
According to reliable sources, taxi drivers, store owners, tourists, and
employees of the St. John’s Development Corporation (SJDC) also joined
in the protest.
Since the announcement of the US $83 million agreement with the
London-based Global Ports Holding LLC to hand-over the St. John’s cruise
facility – exclusive of Heritage Hotel, Newport Holdings, Downtown
Development and the Vendors Mall – opposition leaders have been quick
to criticize the agreement.
<< Back to news headlines >>
PM blasts Dundas over Global Ports comments Thursday 28th February, 2019 – The Antigua Observer
Prime Minister Gaston Browne has criticized the President of the Antigua
and Barbuda Cruise Tourism Association over comments he made on
OBSERVER AM yesterday.
During an interview on the show, Nathan Dundas expressed his belief that
the Prime Minister was poorly advised regarding the recently signed
Global Ports Holdings LLC Agreement.
Dundas said that as a major cruise stakeholder the association has serious
concerns about what he termed the threat to the job security of direct
and indirect local employees.
“We have hundreds of taxi drivers in Antigua and Barbuda; stakeholders in
Heritage Quay; we have single mothers who depend on the cruise tourism
business and it is really something that affects us considerably and we
really believe that it wasn’t handled in the way it should have been
handled,” he said.
He said news of the Global Ports agreement had caused one major cruise
line to deploy its vessels and services elsewhere.
However, PM Browne was quick to respond and told OBSERVER media
that Dundas had been aware of the negotiations with Global Ports during
the past seven months, and should also be fully aware that Antigua has
the worst service quality and visitor experience in the region, and one of
the lowest cruise tourism return on capital in the region.
Based on the fiscal constraints facing the country and the poor service
quality, private management and capital is required to transform our
mediocre cruise product into a globally competitive one, Browne added.
“If Mr. Dundas has a better and more viable funding/investment option to
develop the cruise facilities, I would have been happy to explore that
option before execution of the GPH deal,” he said.
The prime minister pointed out that, as an agent for the cruise lines,
Dundas would have been in a conflict of interest situation if he had been
allowed to participate in the negotiations with Global Ports Holdings.
Meantime, during his earlier interview on OBSERVER AM, and in response
to government’s claims that cruise lines were not making any significant
contribution to the local economy, Dundas pointed out that the total
cruise expenditure for Antigua and Barbuda was one of the highest in the
Caribbean, which includes port charges, tours and head tax.
“Total expenditure by the cruise lines for the last year was for [British Virgin
Islands] $2 million; St. Lucia was $5 million; St. Kitts and Nevis was $7 million;
Martinique was $6 million; Grenada was $1.2 million; Guadeloupe –
because they do homeporting with Barbados – was $10 million; St. Vincent
was $3 million; and Antigua and Barbuda’s figure was $23 million,” he said
“This is what Global Port saw; they saw services,” he added.
Dundas is also of the view that resources and money were wasted over
the years by both the current and previous administrations in dredging.
“We recall that Prime Minister [Browne] had to pay $4 million for the lack
of dredging by the previous administration. This current administration
where, in speaking to the port authority, they hired a Trinidadian company
that never did major dredging in the Caribbean before,” he said.
<< Back to news headlines >>
Public-private partnership being considered for Palm Grove development Thursday 28th February, 2019 – BVI News Online
City Manager Janice Braithwaite-Edwards has said a public-private
partnership with investors is to be employed to undertake a development
at the now-demolished Palm Grove Shopping Centre in Road Town.
The city manager, however, said she does not know what development
will be constructed at the location.
“There are no designs but there are things that people have in mind.
Nothing has come to fruition as yet,” Braithwaite-Edwards told BVI News
on Wednesday.
“We are in the process of getting the documentation done so that we
can decide how we are going to move forward with it … It is a document
that helps what it is you want to achieve, and what are the pieces
involved to get the achievement done so that somebody can bid for the
project,” she added.
The city manager gave the indication on the heels of a change in the
government of the BVI. The government was changed from an NDP
administration to a VIP administration.
Reports suggest that discussions for a new development at Palm Grove
began under the NDP government. Now that VIP leader Andrew Fahie
has been sworn in as the new Premier of the Virgin Islands, it is yet to be
seen whether his administration will halt whatever agreement that is
currently underway for the location.
What happened to Palm Grove
Palm Grove was demolished since last August after authorities labelled it
unsafe. In late 2017 all tenants were vacated after the old structure was
weakened by the 2017 hurricanes.
Palm Grove was also affected by crystallite asbestos, a mineral commonly
used in building construction, and by inhaling small particles of asbestos, it
can lead to cancer and respiratory illnesses.
Local experts said that type of the mineral found in Palm Grove was not
dangerous.
<< Back to news headlines >>
Hon Marlon A. Penn to be appointed Opposition Leader Thursday 28th February, 2019 – Virgin Islands News Online
Following a crushing and devastating defeat from the Virgin Islands Party
(VIP) in the February 25, 2019, General Elections, National Democratic
Party (NDP 1) Deputy Chairman, Hon Marlon A. Penn (R8) will become the
new Opposition Leader in the new House of Assembly (HoA).
Hon Penn will commence the role at the First Sitting of the First Session of
the Fourth House of Assembly (HoA) after Chairman of the NDP, Mr Myron
V. Walwyn lost his At-Large seat by over 600 votes.
Senior sources within the NDP 1 told our news centre that Hon Penn got
support from both Hons Mark H. Vanterpool (R4) and Alvera Maduro-
Caines (R6) in a letter to Governor Augustus J. U. Jaspert, giving him a
majority.
Another member with interest?
According to sources, there was another Opposition Member lobbying to
hold the post, however, the person did not get the support.
Meanwhile, new Premier and Minister of Finance, Hon Andrew A. Fahie
(R1) has not named his Deputy Premier nor the person expected to take
up the post of Speaker of the HoA.
It is believed the announcements will be made in the coming days as the
Cabinet is expected to be sworn in on Tuesday, March 5, 2019.
<< Back to news headlines >>
Social Security redo cuts AFP’s profits, saves workers US$800M Thursday 28th February, 2019 – Dominican Today
Amid applause from the audience in the National Assembly, president
Danilo Medina said he sent to Congress a bill to amend the Social Security
Law which would significantly cut the profits of the Pension Fund
Administrators. (AFP), whose commissions will drop from 30 percent to
0.85%.
The AFPs’ high gains and the affiliates low profitability is one of the aspects
most criticized by Social Security sectors, who demand a reduction,
above all experts and labor.
In his speech Medina said the bill he was sending to Congress would
improve social security coverage.
“Another great news is that this law will significantly reduce AFP
commissions, from two commissions of up to 30% profitability, a
commission of 1.4% of balances, decreasing each year up to 0.85%,” he
said.
Medina added that the amendment will save RD$40.0 billion (US$800)
over the next 12 years, which he affirms will go directly to the affiliated
workers fund.
<< Back to news headlines >>
Prime Minister signs two agreements at Caricom meeting in St.Kitts Thursday 28th February, 2019 – gov.gd
Grenada has become signatory to the CARICOM Multilateral Air Services
Agreement which is intended to make the Caribbean Community a more
liberalised environment for CARICOM airlines.
Prime Minister, Dr. the Right Honourable Keith Mitchell signed the
agreement at the just concluded Inter Sessional Meeting of the
Conference of Heads of Government of CARICOM in St. Kitts and Nevis.
Dr. Mitchell was among four CARICOM leaders who signed the
agreement Wednesday, bringing to nine the number of countries that
have now become signatories.
As explained on the CARICOM website, the “CARICOM Multilateral Air
Services Agreement expands the scope for airlines owned by CARICOM
nationals to provide air services throughout the community.”
Further, the agreement “allows for no restriction on routes, capacity or
traffic rights and should facilitate increased intra-regional travel and
provide more cargo options for exporters and importers with resulting cost
savings.”
Meeting in a special session on transportation, Dr. Mitchell and his
CARICOM colleagues agreed that “member states should undertake a
review of their domestic taxes and other charges related to the air
transportation sector, with a view to simplifying and streamlining the
relevant tax structure.”
CARICOM leaders are seeking to provide travellers in the region with
adequate, competitive and efficient air transportation services at
affordable prices.
Dr. Mitchell also signed the Declaration of Intent to Provisionally Apply the
Protocol on Contingent Rights on Wednesday. According to the
communique from the meeting, this would “apply the measures that
would allow their nationals to benefit in those countries from the provisions
of that agreement on contingent rights which allows for spouses and
dependents of skilled workers who move to another country to access
services such as education and health on the same basis as nationals.”
<< Back to news headlines >>
IMF Says Venezuela Crisis Worse Than Expected as Sanctions Burn Thursday 28th February, 2019 – Bloomberg
The worst economic crisis in modern Latin American history has gotten
"even worse" than expected as new U.S. sanctions exacerbate pain on
Venezuela, according to the International Monetary Fund.
There’s more downside risk in the region after the Trump administration
slapped a de facto oil ban on Venezuela and tightened restrictions on
state oil giant PDVSA, said the IMF’s Western Hemisphere Director
Alejandro Werner.
“Venezuela is going through a humanitarian crisis, an economic crisis,
hyperinflation and a debt crisis,” Werner said in an interview in
Bloomberg’s New York office. “We have seen a combination of these
things in many nations, but seeing the four of these things together makes
for an extremely complicated case.”
Werner said the IMF is ready to help if Venezuela’s government seeks the
fund’s expertise in formulating policy. The nation is currently mired in a
political crisis as autocrat Nicolas Maduro and U.S.-backed opposition
leader Juan Guaido both claim the presidency. The IMF has said it could
put together a loan package for Venezuela "in less than six months" if
there were to be a political transition. Bondholders expect a credit line
would help put the nation on a more sustainable path to recover from
what the IMF estimates was a 50 percent contraction over the past five
years, according to Werner.
“If you look at the pricing of bonds today, obviously no one is expecting
full recovery,” he said. “But what they would expect, and that’s why
they’re holding these bonds, is that eventually a package will be put
together and that a country with the wealth of Venezuela can lay out the
policies to go back to a sustainable, inclusive growth process.”
Werner said he’s more optimistic on Brazil, Argentina and other Andean
nations.
He said Brazilian Economy Minister Paulo Guedes’s pension overhaul
proposal will probably win approval in the second half of 2019, spurring a
“decent amount” of savings for South America’s largest economy. Still,
Werner said recent data indicates economic growth may be “a bit
weaker” than his 2.5 percent annual forecast. Local economists have
already begun cutting their outlooks. That may create some space for
Brazil’s new central bank president, Roberto Campos Neto, to ease the
key rate that’s already at a record low, he said.
“To the extent that economic data continues to surprise on the downside,
there might be some space to move,” Werner said. “The current rate was
set with an expectation that the economy would be growing slightly faster
at this time.”
Meantime, he said Argentina’s new monetary policy framework has
helped stabilize financial markets after the peso led global currency losses
last year. Werner said he doesn’t expect the IMF’s commitment to the
nation to waver if President Mauricio Macri were to lose his re-election bid
in October, as the fund has support from different parts of the political
spectrum. Jose Luis Espert, a fringe right-wing candidate, has said as
president he’d ask for an additional $30 billion so Argentina could honor
its commitments through 2021.
“Financial markets are sending the signal that they think the course is right,
and what I am expecting is an inflection point in which annual inflation will
start to come down,” Werner said. ”The government has the right
approach.”
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Monitoring Metered Oil … Guyana should require Exxon, others to use
independent certifying firms, standards – Int’l Consultant Friday 1st March 2019 – Kaieteur News
With a plethora of capacity issues facing the country in its bid to prepare
for oil, there is still a chance that it can ensure transparency and
accountability when it comes to monitoring metered oil. This came to the
fore when Kaieteur News conducted an interview with International Oil
and Gas Consultant, Anthony Paul.
This publication asked Paul to share how Trinidad and Tobago keeps track
of the volume of oil produced, the price at which it was sold, and the
costs incurred by oil companies.
With respect to the volume of oil produced, Paul noted that TT’s Ministry of
Petroleum and Mines, as it was then called, had established a Petroleum
Inspectorate, whose role and function was to measure and certify
quantities produced and sold.
The Chatham House Advisor said that TT’s Customs Department also
witnesses shipments. Paul said, “There are standard industry methods for
measuring and certifying volumes, and the physical and chemical
properties of oil and gas, which affect the price. T&T uses these.”
Further to this, Paul noted that in Joint Ventures, non-operating parties
require that the operator engage an independent certifying firm to
validate the reported volumes and composition being sold and/or
exported.
Based on checks with local authorities, Guyana is far from making use of
such systems and mechanisms. But all hope is not lost. Guyana still has a
chance to protect itself says Paul. He noted that the Government may
not need the internal capacity to do this themselves, but rather, require
that independent certifying firms, methods and standards be used by the
oil majors.
Further to this, the international Oil Consultant said that this is an area into
which locals should be promoted very rapidly, as it is an ongoing business
for many years and can bring additional value to Guyana, inclusive of the
requisite analytical laboratories that must be certified to internationally
acceptable standards.
TRAINING FOR GUYANESE
Last April, this newspaper raised the issue of having systems in place to
monitor oil offshore with the Guyana Revenue Authority’s Commissioner-
General, Godfrey Statia.
Statia had said that special officers would be trained to monitor metered
oil production by ExxonMobil. But efforts to follow up with him on this
matter recently proved futile.
Be that as it may, the tax chief on several occasions said to Kaieteur News
that he is aware of how important meter monitoring is to ensuring
accountability and transparency in the oil and gas sector. The Chartered
Accountant had said that this type of monitoring is imperative, as there
are documented cases where the failure to do so has cost nations billions
of dollars in revenue.
<< Back to news headlines >>
Guyana Goldfields announces mill expansion Friday 1st March 2019 – Kaieteur News
Guyana Goldfields Inc. has announced that the second phase of its mill
expansion is mechanically complete and was fully commissioned as of
February 25, 2019.
“Based on the highly encouraging results from trials supplementing mill
feed with pre-crushed ore, as well as the higher than expected
performance in throughput from the completion of the first phase mill
expansion in 2018 [average 2018 mill throughput of 7,000 tonnes per day
(“tpd”) versus a design template of 6,600 tpd], the scope of the second
phase of the mill expansion was reduced to include only the addition of a
pre-crushing circuit.”
The original scope included the addition of the pre-crush circuit along
with a 1,000 tpd ball mill, representing a total 2018 capital savings of US$2
million.
The company said it expects that the second phase of the mill expansion
will further improve recovery by up to two percent throughput by 10% and
allow for 75% redundancy of the primary crusher.
Scott A. Caldwell states: “Mill performance has continuously exceeded
our expectations. The anticipated enhanced capacity and redundancy
of the primary crushing circuit will further lower our per unit costs in our
efforts to optimize and continuously improve our operations.”
Guyana Goldfields Inc. is a Canadian based mid-tier gold producer
primarily focused on the exploration, development and operation of gold
deposits in Guyana. It is the single largest gold producer, moving now to
develop the country’s first underground mine. However, it is facing
troubles from a number of shareholders with a key general meeting in a
number of weeks.
The operations are at Aurora, Cuyuni, Region Seven.
<< Back to news headlines >>
Underspend Helps Hit Deficit Target Thursday 28th February 2019 – Tribune 242
The government yesterday forecast it will narrowly beat this year’s fiscal
deficit target despite a $185m revenue shortfall caused by VAT, gaming
and enforcement underperformance.
Deputy Prime Minister K Peter Turnquest, unveiling the 2018-2019 mid-year
budget in the House of Assembly, said the Minnis administration was on
track to limit the full-year deficit to around $230m - some $5-$10m less than
the “red ink” target set last May.
He said the Government will be able to achieve this, and offset its
revenue gap, through “significant spending restraint” projected to slash
recurrent expenditure by five percent compared to initial forecasts.
This, based on Tribune Business’s calculations, amounts to a $130m cut to
projections that it would spend some $2.589bn on its recurrent or fixed-
costs - typically civil service salaries, benefits and rents - this fiscal year.
Mr Turnquest yesterday identified the 12 percent VAT rate’s delayed
introduction in key sectors such as hotels and construction, coupled with
the Government’s web shop taxation settlement and later-than-expected
creation of the Revenue Enhancement Unit, as the key factors behind
why revenues are now forecast to fall 7 percent short of Budget
predictions.
This amounts to a $185.43m undershoot of the initial $2.649bn target, this
newspaper has calculated, although Mr Turnquest implied that the VAT
rate hike and other tax measures had still produced their desired effect
because full-year recurrent revenues will be more than $400m ahead of
2017-2018.
However, he confirmed long-standing predictions that VAT collections will
be “somewhat under the Budget forecast” for 2018-2019 as a result of the
transition period granted to the likes of hotels and contractors, which
enabled them to honour reservations and contracts that were in effect
prior to the budget at the former 7.5 percent rate.
Mr Turnquest added that the revised web shop taxation structure, which
has reduced the “sliding scale” levy from six to two lower rates, and the
switch to taxing patrons on their winnings rather than deposits and ticket
sales, was forecast to reduce the Government’s tax take from the sector
by $18m compared to initial estimates.
And he revealed there will be a “dip” in the $80m that was forecast to be
collected via enhanced compliance/enforcement due to the delayed
creation of the Revenue Enhancement Unit, which is supposed to target
tax evasion relating to VAT, Business Licence fees, Stamp Duty and real
property tax.
The deputy prime minister did not provide a figure for the projected VAT
shortfall, although based on the total undershoot - and the losses relating
to web shops and the Revenue Enhancement Unit - this is likely to be
around $90m or half of the $185m.
“All told, we now estimate that revenues will fall short of the Budget
projection by some 7 percent, but still come in some $400m higher than
the last fiscal year,” Mr Turnquest told the House of Assembly.
However, he said “significant expenditure restraint” had kept the
Government on course to hit the $237.6m full-year deficit target,
equivalent to 1.8 percent of Bahamian GDP, as mandated by the Fiscal
Responsibility Act’s goals.
“Based on expenditure trends in the first half of the fiscal year, it is now
estimated that both recurrent and capital expenditure will come in
somewhat lower than had been projected at the time of the 2018-2019
Budget,” Mr Turnquest said. “That, in large measure, reflects the
Government’s dedicated commitment to stringent expenditure restraint.
“Accordingly, recurrent expenditure is now projected at a level some 5
percent below the Budget forecast. Capital expenditure was particularly
subdued in the first half of the fiscal year but, with our commitment to
significantly invest in new and modern public infrastructure, we expect the
pace of spending in this area to pick up appreciably in the second half of
the year. The estimated outturn for capital expenditure is nonetheless now
expected to come in below the amount budgeted for the entire year.”
The deputy prime minister did not produce a revised full-year estimate for
capital spending, which was initially forecast to total just under $300m.
Just $86.949m, or less than one-third of this sum, had been spent at the
fiscal mid-year point of end-December 2018 - thus giving the Government
enough room to increase this and still come in under projections.
Confident that spending controls will offset the revenue shortfall, Mr
Turnquest said: “With the fiscal outturn in the first half and projected
developments in the second half, we now foresee a fiscal deficit in 2018-
2019 slightly under the Budget forecast by some $5-10m. Thus, we project
presently a budget deficit of somewhere near $230m, which means we
remain firmly on target.”
A further indication of the Government’s optimism that it will not be
thrown off-target comes from the fact that no new borrowing measures,
above and beyond what was approved in May’s budget, were unveiled
in the House of Assembly yesterday.
Pledging to maintain the Minnis administration’s cost-cutting focus, Mr
Turnquest said it was “taking a hard look” at all government programmes
and services “to see where we can cut spending, enhance value for
money, improve services to make them more efficient and effective, and
identify savings and reallocations to accommodate higher priority policy
objectives”.
He added that the Ministry of Finance was poised to take its regular
monthly meetings with government agencies a step further by
“mandating the creation of monthly spending plans by agencies, so as to
foster proper financial planning and cash management and minimise the
accumulation of further arrears”.
Mr Turnquest added that the Government was continuing to work on a
Public Debt Management Bill to improve governance of its existing $8bn-
plus national debt and ensure its “prudent management”.
This, he said, will lead to the creation of a Public Debt Management
Office within the Ministry of Finance and, under it, a Public Debt
Management Unit to co-ordinate strategy for minimising The Bahamas’
debt servicing costs.
“This development will eradicate the past practice of inefficiently
managing the country’s debt portfolio and will instead create a
framework for actively managing the country’s debt, with the aim of
achieving the overarching goal of the Fiscal Responsibility Act of reducing
the debt-to-GDP ratio to a more sustainable level,” Mr Turnquest told the
House.
He added that the Government was also set to complete its transition to
its new Chart of Accounts by July 1 this year, bringing it more into line with
international standards and setting the stage for accrual-based
accounting come 2022.
“Last May, this government accepted the difficult decision of raising taxes
and the tax burden on Bahamians,” the deputy prime minister said. “We
did this knowing full well the political consequences and the harsh
criticism that the Government would face, even from our own side.
“We realised that this sacrifice asked of Bahamians was not the politically
popular thing to do, but it was the right thing to do. It was the right thing
to do.”
<< Back to news headlines >>
Govt Targets ‘Value’ For Its $400m Soes Thursday 28th February 2019 – Tribune 242
The government yesterday unveiled plans to ensure it gets “value for
money” from the near-$400m in annual subsidies it pumps into state-
owned enterprises (SOEs).
K Peter Turnquest, deputy prime minister, lamented that while some $398m
in recurrent spending was allocated to SOEs for the 2018-2019 fiscal year,
there was no framework to properly monitor whether these entities are
spending taxpayer monies wisely.
Unveiling the mid-year budget statement in the House of Assembly, Mr
Turnquest said the government will next month launch a project to
evaluate its state-owned enterprises.
“Historically, successive governments have not had the effective means
to evaluate the fiscal stewardship of state-owned enterprises (SOEs),” he
added. “Some 15.4 percent of the government’s recurrent expenditure is
allocated to these SOEs, which translates to some $398m.
“Yet, even as their share of the public purse has grown, the framework to
obtain the timely and consistent information necessary to assess the value
for money obtained by these SOEs simply has not been developed. We
intend to change this.”
Mr Turnquest continued: “The project is expected to take place over three
phases, the first being an analysis of SOEs, authorities, and other quasi-
government entities and their operations, so as to provide forward looking
strategies for each entity.
“The second phase will include the formation of a comprehensive
strategy for cost rationalisation and cost recovery for SOEs - in line with
international best practices - as well as an efficient financial and
management reporting model. The third stage will include the
implementation of the strategic model, and the roll out of new budgeting,
accounting and performance management.”
Mr Turnquest added that there have been “significant developments” in
the government’s efforts to instill prudent fiscal management via the
drafting of several bills focused on strengthening governance.
“Specifically, the Public Financial Management Bill (or PFM Bill) is being
drafted with assistance from the IMF’s Caribbean Technical Assistance
Centre (CARTAC) and is expected to modernise and eventually replace
the Financial Administration and Audit Act, 2010,” said Mr Turnquest.
“Its main objective is to provide a more comprehensive legal framework
that will provide the necessary support to strengthening the oversight,
management and control of public funds.”
<< Back to news headlines >>
Integration movement momentum continues with renewed interest says
CARICOM Chairman, Dr Harris Thursday 28th February 2019 – Skn Vibes
A renewed interest was generated in the integration movement during
the successful 30th Inter-Sessional Meeting of the Conference of Heads of
Government of the Caribbean Community (CARICOM) held over a two-
day period (February 26-27) in St. Kitts and Nevis.
Addressing a press conference on Wednesday evening February 27 at the
Royal Ballroom of the St. Kitts Marriott, Chairman of the Conference Prime
Minister Dr the Hon Timothy Harris advised that all member states
participating in the Caribbean Single Market and Economy (CSME) have
now signed the Protocol on Contingent Rights.
“Nine countries have agreed to apply, provisionally, the protocol,” said Dr
Harris. “This means that the nationals of those countries, their spouses and
dependants will benefit from additional rights such as primary education
when they move from one-member state of the Community to another.”
Countries participating in the Caribbean Single Market and Economy are
Antigua and Barbuda, Barbados, Dominica, Grenada, Guyana, St. Kitts
and Nevis, Saint Lucia, St. Vincent and the Grenadines, and Trinidad and
Tobago.
“We have also reached agreement on a protocol to deal with Public
Procurement that will open the regional market for goods and services
procured by public entities,” said Prime Minister Harris. “Two countries
signed this agreement during the course of the meeting.”
The Heads of Government at the two-day 30th Inter-Sessional Meeting of
the Conference of Heads of Government of the Caribbean Community
are said to have welcomed the opening of the Agreement on the
Protocol for Public Procurement and noted that the Protocol can be
provisionally applied when seven Member States have signed a
declaration of intent.
Prime Minister Harris who assumed the CARICOM chairmanship on
January 1 this year was flanked at the press conference by CARICOM’s
Secretary General Ambassador Irwin LaRocque, and Jamaica’s Foreign
Affairs Minister Hon Kamina Johnson-Smith. Jamaican Prime Minister the
Most Hon Andrew Holness, who attended the two-day meeting was the
immediate past CARICOM Chairman.
While Dr the Hon Ralph Gonsalves, Prime Minister of St. Vincent and the
Grenadines, did not participate in the press conference, he appeared
briefly, and Prime Minister Harris recognised his presence.
Other Heads of Government attending the 30th Inter-Sessional Meeting of
the Conference of Heads of Government of the Caribbean Community
were Prime Minister of Antigua and Barbuda, Hon Gaston Browne; Prime
Minister of The Bahamas, Dr the Hon Hubert Minnis; Prime Minister of
Barbados, Hon Mia Motley; Prime Minister of Dominica, Hon Roosevelt
Skerrit; Prime Minister of Grenada, Dr the Hon Keith Mitchell; Prime Minister
of Saint Lucia, Hon Allen Chastanet; and Prime Minister of Trinidad and
Tobago, Dr the Hon Keith Rowley.
Belize was represented by the Attorney General Hon Michael Peyrefitte;
Guyana was represented by His Excellency Second Vice President and
Minister of Foreign Affairs, the Hon Carl Greenidge; Haiti was represented
by Foreign Minister, Hon Bocchit Edmond; and Suriname was represented
by Minister of Foreign Affairs, Hon Yidiz Pollack-Beighle.
Associate Members in attendance were Bermuda represented by Deputy
Premier and Minister of Home Affairs, Hon Walter Roban; and the Turks
and Caicos Islands, represented by Deputy Premier, Hon Sean Astwood.
<< Back to news headlines >>
Cane cut Monday 1st March, 2019 – Barbados Today
Cane farmers will be in for a $9.7 million payday at the end of next week.
But while making the disclosure this afternoon, the chairman of the
privately-run Barbados Sugar Industry Limited (BSIL), Mark Sealy, insisted
that million-dollar backpay may not be enough to induce his members to
start the crop by the end of this week or early next week.
BSIL represents more than 60 per cent of local cane producers with
Government employing the rest.
Sealy told Barbados TODAY that the backpay, which was owed to cane
farmers for last year’s harvest that ended in July, must go hand-in-hand
with a new price offer from Government for canes to be delivered this
year.
Sealy said: “We have not received a cane price yet for this crop; and that
is something we would need to have in order to move forward. We have
a meeting with all of the farmers today and we will get some feedback
from them as to what their feelings are with regard to moving forward.”
The private cane producers’ spokesman said the BSIL leadership was
working closely with the Ministry of Agriculture to ensure the debt to
farmers was settled by the end of next week as promised.
He suggested the farmer’s long wait for their money had devastated their
businesses, forcing some of them to the brink of collapse.
“We are looking forward to receiving that payment at the end of next
week, simply because the cash flow of farmers has been totally depleted.
Money is needed to pay farmers, to buy diesel, to buy fertiliser, etcetera,”
he told Barbados TODAY.
Sealy said that some farmers have even had to cut the hours of work of
their staff due to their ongoing financial challenges.
He said: “So bearing in mind these payments should have been made
quite some time ago . . . we moved forward in good faith last year,
without a cane price. And we received word of an offer of a cane price
down in December . . . bearing in mind the crop would have finished in
July.
“We are still now awaiting the payment. We accepted that offer in
December, which is $150 per ton. And we are nearly down in March now
and we have not received payment for it.”
I think another major point would be that we must have a cane price for
this year’s crop,” said Sealy, whose organisation represents some 15 cane
producers.
The 2019 sugar harvest is expected to record a massive drop in
production.
General manager of the state-owned farming enterprise, Barbados
Agricultural Management Company (BAMC), Leslie Parris, said that the
industry would be reaping more than 9,000 tons of cane less than what
had been projected up to last month.
He said the earlier forecast of 146,000 tons of cane for this year’s harvest
has been substantially scaled down to 137,000 tons.
And even that, Parris warned, may also drop further by the end of
harvesting.
“We were looking at 137,000 of cane. However, based on the lack of
rainfall, it might be lower than that. The lack of rainfall would have been
one of the main reasons. The drop from 146,000 to 137,000 tons would be
significant, as you would appreciate. I don’t have the percentage in my
head, but you are talking approximately 9,000 tons of cane,” the sugar
industry executive told Barbados TODAY
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JSIF Signs $43.9m MOU Monday 1st March, 2019 – Jamaica Gleaner
The Ministry of National Security (MNS) has signed a memorandum of
understanding (MOU) with the Jamaica Social Investment Fund (JSIF) for a
further $43.9 million in financial support for the Jamaica Crime
Observatory Enhancement Project.
The Crime Observatory is an instrument through which the MNS keeps up-
to-date, reliable data so as to promote transparency, security, and safety
in the national interest. It also establishes valid and consistent crime and
violence-related statistics.
The project, which commenced in May 2014, will continue until May 2020.
According to Shauna Trowers, acting chief technical director of research
in the Ministry of National Security, the project has been successful thus
far.
“Our achievement to date has been mainly equipping the ... Jamaica
Constabulary Force with the information technology equipment in the
form of desktop computers, laptops, and other related equipment that’s
needed to ensure that the crime observatory functions as it should.
“In terms of capacity building, we are looking at spatial analysis … so we
need to understand the terrain so we know what kind of policing is
necessary. We also are looking at the GIS (geographic information
system), using the technology to leverage our policing, and that is what
the observatory and the information have done to date,” Trowers said.
When the programme started in 2011, it covered five parishes and five
types of incidents. It has since expanded to cover all 14 parishes and
collects data on murders, shootings, sexual offences, robberies, fatal
shootings, traffic fatalities, and suicides.
<< Back to news headlines >>
Sygnus Weighs Fundraising Options In Hunt For US$15m Monday 1st March, 2019 – Jamaica Gleaner
SYGNUS CREDIT Investments Limited, SCI, issued credit to an additional six
companies in the December quarter, bringing its deals since inception to
16, and is signalling that it has more prospects lined up.
But the two-year-old company, while breaking out the geographic
markets and sectors in which its capital is deployed, is holding its list of
borrowers close to the vest.
Nearly three-quarters of the funds lent to SMEs (small and medium-size
enterprises), 72 per cent, have been distributed in Jamaica, while the rest
has been deployed to entities in Barbados, St Lucia and the ABC islands,
which comprises Aruba, Bonaire and Curaçao. The financing distributed
to date tops US$27 million, mostly to business operators in the
manufacturing, telecommunications and energy sectors.
At the end of last year, the company had US$9.4 million of capital to lend,
but needs more arsenal, and has turned to the market to raise additional
funds for future financing deals.
“By the end of March, we would have used up a significant amount of our
dry powder,” said Berisford Grey, cofounder and CEO of Sygnus Capital,
the firm that manages Sygnus Credit and pursues business leads on its
behalf.
“We will likely raise between US$10 million and US$15 million more funds to
satisfy the demand,” Grey said.
Sygnus Credit, which was incorporated offshore in St Lucia in January 2017
and listed on the Jamaica Stock Exchange in June 2018, is yet to decide
whether its fundraising will be done via an issue of preference shares or a
rights issue of ordinary shares to existing shareholders.
The company, whose assets were last estimated at US$38 million,
describes its model as an “alternative channel” for private credit to
businesses that need capital for growth.
DOES NOT OFFER LOANS
Expanding on the company’s operation on Wednesday, Grey said Sygnus
does not offer loans but rather, private credit investments through
customised financing solutions, such as the issue of notes with a profit-
share component, preference shares, and flexible amortisation and zero
amortisation clauses.
He was responding to queries on whether Sygnus Credit’s issuing of credit
in foreign exchange meant that its operation had to be approved by the
Bank of Jamaica.
“SCI is not regulated, as it is just a private company using its equity capital
to invest in other companies, like a private equity firm,” he said.
In the quarter ending December 2018, Sygnus Credit reported interest
income of US$856,000, or almost triple the US$320,000 earned in the year-
prior period. Profit nearly doubled, from US$698,000 to US$1.3 million.
“We are continuously interacting with clients and these clients want more
funds to invest. So our pipelines of investments is always growing,” said
Grey. “Everything is validating our business model that the medium-sized
market was underserved by non-traditional financing methods.”
Three of the six new investments in the December quarter were made in
the ABC islands and Barbados, he said.
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