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▪ Government of Barbados rating downgraded to CariBBB-

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

▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+

▪ Gulf City Limited’s rating reaffirmed at CariA+

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

▪ Telecommunications Services of Trinidad and Tobago Limited’s rating reaffirmed to CariA

▪ Colonial Fire and General Insurance Company Limited’s initial rating assigned at CariA

▪ Home Mortgage Bank’s rating reaffirmed at CariA

▪ NCB Financial Group Limited’s initial corporate credit rating assigned at CariA

▪ National Commercial Bank Jamaica Limited’s rating upgraded to CariBBB+

▪ NCB (Cayman) Limited’s initial corporate credit rating assigned at CariA

▪ The Government of the Commonwealth of Dominica placed on Rating Watch – Developing

▪ Dominica AID Bank’s rating downgraded by 1-notch and placed on Rating Watch – Negative

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REGIONAL

Trinidad and Tobago

T&TEC examines rate hike to offset $bn annual wage bill

The T&T Electricity Commission has been operating at a loss for the past

seven years and its chairman is saying that the board of directors is now

looking at whether there is need to trim the fat at the utility which has

close to 3,000 employees an annual wage bill of over a billion dollars.

RBC TT profits jump 60%

RBC Royal Bank (Trinidad and Tobago) has recorded an after tax profit of

$191.3 million for its financial year ended October 31, 2017.

TTNGL dips $0.67

Overall Market activity resulted from trading in 16 securities of which 4

advanced, 6 declined and 6 traded firm.

Nedco offers VSEP

EMPLOYEES of State-owned National Entrepreneurship Development

Company Ltd (Nedco) have been offered Voluntary Separation (VSEP)

options.

A new airline to Tobago? ...company seeking investors

THE Chief executive officer of Sterling Tobago Airways Limited, which is

seeking investors to establish an air bridge to rival Caribbean Airlines,

believes that his company could make a TT $24million profit within a year

of operations.

Grande businessmen back Toco Highway

Sangre Grande residents have given a positive vote for the proposed

highway from Cumuto to Toco to help alleviate some of the travel

struggles of many making the inter-island transit. There have been many

hiccups with finding a reliable ferry source between the two islands for

many months. The only inter-island vessel is now the Trinidad and Tobago

Express, the TT Spirit has been dry docked.

Republic Financial Holdings records $340M profit

Republic Financial Holdings Ltd (RFHL) has recorded TT$340 million in profit

attributable to shareholders for the quarter ending December 31, 2017.

Barbados

IMF warns economy is slowing down

The performance of the Barbados economy is predicted to worsen this

year, dealing a staggering blow to Government’s efforts to generate

confidence in the electorate.

Haynes: Pay increase not recommended right now

Governor of the Central Bank of Barbados Cleviston Haynes today

warned Prime Minister Freundel Stuart that a pay rise for public servants

would deal a crippling blow to Government’s fiscal adjustment efforts.

Jamaica

High-level EU team arrives in Jamaica today

STEFANO Manservisi, director-general for International Cooperation and

Development in the European Commission, based in Brussels, is leading a

high-level European Union team to Jamaica, starting today.

STATIN says unemployment at its lowest in a decade

THE Statistical Institute of Jamaica (STATIN), in a release yesterday, said

that the declining unemployment rate is at 10.4 per cent, the lowest it has

been since October 2008.

Guyana

27 expressions of interest in GPL’s natural gas power plant

At least five Chinese companies are among 27 firms which have

expressed interest in operating the Guyana Power and Light (GPL)’s

natural gas-fired power plant, under a 25-year agreement, in Demerara.

Dominica

Jolly’s to acquire Oil of Ojas

“I had a divine dream, a revelation”. Twenty-two years ago, this was the

motivation behind Mr. Anthony Toulon’s creation, Oil of Ojas. A household

name in Dominica and the region, many people store a bottle in their

medicine cabinet. Today, in a bid to strengthen its foothold as a

manufacturer of safe and trusted all natural products, Jolly’s

Manufacturing and Toulon agencies announces that Jolly’s

manufacturing, a subsidiary of the parent company, Jolly’s Pharmacy will

acquire this multi-purpose essential oil.

Dominica continued

More jobs added to gov’t job program

The government is to expand a program that will be providing jobs to

residents in the wake of Hurricane Maria, Prime Minister Roosevelt Skerrit

has announced.

Gov’t donates $3.7-million for Clear Harbor renovation

The Government of Dominica has donated $3.7-million which will go

towards the renovation of sheds which house the Clear Harbor Call

Center which is located at the Industrial Estate in Canefield.

The Bahamas

$1m Factoring Scheme In Sme Funding 'Firsts'

A "first ever" $1 million accounts 'factoring' scheme aims to aid "well over

100" Bahamian small businesses immediately following its summer 2018

launch. Omni Financial Group, the Bahamian payments solutions provider,

yesterday hailed its partnership with the Inter-American Development

Bank (IDB) as potentially boosting cash flow, growth and customer base

for local micro, small and medium-sized enterprises (MSMEs). With the IDB's

Multilateral Investment Fund (MIF) providing the financing, Omni will

effectively act as its 'executing agency' by making small loans secured

against the accounts receivables (debts) owed to qualifying Bahamian

MSMEs by their clients.

Rbc's Middle Class Mortgage Appetite 'Severely Diminished'

A ROYAL Bank of Canada (RBC) executive yesterday said its appetite to

lend mortgages to middle and lower class Bahamians was "substantially

diminished" due to inadequate market infrastructure. Tim Rider, RBC

Caribbean's senior vice-president of sales, told the Royal Fidelity Economic

Outlook that as a result the Canadian-owned bank was now focused on

"affluent" borrowers when it came to home lending. With many potential

borrowers too heavily indebted to take on a mortgage, Mr Rider also

pointed to the continuing absence of a Bahamian Credit Bureau as an

example of 'inadequate market infrastructure'.

Gb Chamber Chief Fears More Closures

THE Grand Bahama Chamber of Commerce's president yesterday

expressed concern that further Freeport businesses may close following

the Prime Minister's more downbeat appraisal on the Grand Lucayan sale.

St. Lucia

Government provides update on investment projects for the South

The south of the island is earmarked for several major projects which have

already commenced or will commence in 2018.

St. Kitts and Nevis

Minister Grant lauds Development Bank for spreading the national

economic pie

When the Verchilds High School held its 25th anniversary dinner on

Saturday evening December 16 last year, the organising committee did

not have to look far for a venue. From a business standpoint their locality

had come of age, as the event that catered for nearly 200 persons was

held in Old Road.

Haiti

Brothers Investment Group International wants to invest in the country

Saturday at the Sinai Temple in Hollywood, Florida, the "Brothers

Investment Group International, LLC" a private community development

company, dedicated to improving Haitian-American communities,

composed of 200 members of the Haitian Millionaires Club, had gathered

for its first Haitian Millennium Gala more than 1,000 participants.

Other Regional

Geothermal energy can fuel the future of the Eastern Caribbean

Analysis by Judith Ephraim from the OECS Commission for the London

School of Economics and Political Science

US overtakes Cayman Islands in financial secrecy index

The United States has pushed the Cayman Islands into third place in the

global financial secrecy charts from the Tax Justice Network. The US is now

listed as the second largest tax haven in the world, behind Switzerland.

Eastern Caribbean-Southeast Asia Economic and Cultural Chamber

appoints business envoy to Middle East and Pakistan

Dr Hussain Farooq, president of HF Corporation, a citizenship and

investment advisory firm, has been appointed as the official business

envoy to Middle East and Pakistan by the Eastern Caribbean-Southeast

Asia Economic and Cultural Chamber.

INTERNATIONAL

United States

Oil rises as OPEC compliance eclipses boom in US output

Oil prices rose on Thursday after a survey showed OPEC’s commitment to

its supply cuts remains in place, even as U.S. production topped 10 million

barrels per day for the first time since 1970.

Dollar bounce only brief despite more hawkish Fed

The dollar briefly clawed back some of its recent falls on Thursday after the

Federal Reserve said inflation was likely to rise this year, but with expected

monetary tightening priced in, traders are waiting to see if upcoming

data will give the greenback more than a brief respite.

United Kingdom

All Brexit economic forecasts were wrong, British minister says

Brexit minister David Davis rekindled a debate about the credibility of the

government’s own forecasts by saying on Thursday that every economic

prediction on the British economy since the EU referendum has been

wrong.

Sterling climbs as investors' political jitters ease

Sterling strengthened on Thursday, recovering from losses earlier in the

week, as concerns over Prime Minister Theresa May’s leadership eased

and expectations grew that the Bank of England to take a more hawkish

tone in its meeting next week.

Europe

European shares slip at end of strong month

European shares fell on Wednesday as investors locked in profits at the

end of a strong month while results from some of the region’s biggest

names also weighed.

German industrial workers stage second 24-hour strike

Industrial workers in Germany began a second day of 24-hour strikes over

pay and working hours on Thursday, affecting companies including

carmakers Volkswagen (VOWG_p.DE) and Ford (F.N).

Japan

Nikkei rises for first time in 7 days, helped by softer yen, upbeat earnings

Japan’s Nikkei share average rose on Thursday, rebounding from a six-day

losing streak and pushing most sectors into positive territory, as a weaker

yen and upbeat corporate earnings drove the benchmark index higher.

Japan steelmakers' profits surge; Kobe Steel reinstates forecast

Japanese steelmakers, led by Nippon Steel & Sumitomo Metal Corp, on

Thursday reported a surge in nine-month earnings, shrugging off an

industrial quality scandal as Kobe Steel reinstated its annual net profit

forecast.

Global

Equities battle rising global bond yields to snap end-Jan losing streak

European stocks rose on Thursday after three days of losses, although U.S.

and German bond yields near multi-year highs checked gains in world

stock markets and kept them from testing recent record highs.

Factories start 2018 on solid footing

Factories across the globe got off to a strong start this year, with

manufacturing activity in most countries gaining momentum and hitting

multi-year highs.

South Korea complains to U.S. about tariffs on washing machines, solar

panels

South Korean trade representatives have made a strong complaint to the

United States about the “unfairness” of its safeguard measures against

imported washing machines and solar panels, the Asian nation’s trade

minister said on Thursday.

T&TEC examines rate hike to offset $bn annual wage bill Thursday 1st February, 2018 – Trinidad and Tobago Guardian

The T&T Electricity Commission has been operating at a loss for the past

seven years and its chairman is saying that the board of directors is now

looking at whether there is need to trim the fat at the utility which has

close to 3,000 employees an annual wage bill of over a billion dollars.

Officials of the public utility company appeared before the Public

Accounts Committee of Parliament yesterday when concerns were raised

about issues of productivity, and absenteeism at the company which has

been unable to pay its bills to the National Gas Company for the supply of

natural gas.

T&TEC chairman Keith Sirju admitted the company has been operating at

a loss since 2011. He said the annual wage bill stood at $900m, overtime

claims $120m and payment to contractors was $100m.

The utility’s financials came into focus yesterday when Sirju and Ramsook

and other top company officials appeared before the PAC to discuss the

audited financials of the commission for the period 2012 to 2015.

Sirju revealed that from 2011 to present, T&TEC’s income cannot meet its

expenditure, “every year for the past seven years we are running at a loss

that’s a hurdle that has to be overcome.”

He said the Board is now looking at “whether there is fat to be trimmed.”

And the Board is also looking at “whether it is related to the price at which

we sell electricity which has not been adjusted for eight years.”

In recent times, two other public utilities have come into the public

microscope. WASA’s management has also admitted that the company

was overstaffed by as much as 2,000 workers and TSTT which has been a

profitable state enterprise has began to cut costs by closing several of its

outlets.

The action by TSTT has prompted protests by the representing

Communication Workers’ Union.

TSTT says it has offered the workers the opportunity to be redeployed

elsewhere and given other opportunities.

T&TEC General Manager Kelvin Ramsook told the parliamentary

committee yesterday that the utility is now in discussions at the Ministry of

Labour with the Oilfields Workers’ Trade Union seeking to reclassify

contract “drivers” as craftsmen to increase the pool of crews and to

increase productivity.

“We don’t want to send anybody home. Through attrition, people will go

but I have 215 people with the position ‘drivers’ that I could have 100 two-

man crews. The craftsman can get higher pay if he gets to a technical

level he does not have to lose his job,” Ramsook said.

He said they had looked at other territories including Jamaica, Barbados

and Florida Flight and Power. “We have given the evidence, we not

saying we sending anybody home. We will train those who want to be

trained,” he said.

The matter is now at the Ministry of Labour, he said, adding that “this will

significantly solve the productivity issue that we have, what we want are

linesmen, electricians, crew supervisors, all of them must be able to drive a

vehicle and get on the job site.”

The issue of absenteeism at the Commission was so drastic that the

company had to “cut pay for people on leave.”

“When we do checks, you on leave (sick leave) but you out there doing

something else. When you are home you should be recuperating and

going to the doctor,” he said.

In addition, the utility, which says it places a high priority on the reliability

of supply to customers, is paying for 400 megawatts of electricity which it is

not using and is also facing an increase in the price for natural gas which

it pays to NGC. T&TEC owes NGC billions of dollars for natural gas.

STATE COMPANIES OWE $M

While T&TEC moves on the average consumers by disconnecting their

electricity supply at a cost, the PAC heard that it’s not the same for State-

related companies which owe millions.

Sirju said, “the breakdown shows a lot of delinquent customers, WASA, TSTT

sometimes Petrotin and the like.”

The TSTT debt was put at $51 million and is part of a dispute for pole rentals

which the Commission hopes will be resolved soon.

Sirju admitted that one of the challenges the Commission faces is that it

cannot turn off power from WASA.

A private company Desalcott which provides water to WASA owes T&TEC

$36 m.

Ramsook told the PAC that in analysing the records, 23 per cent of the

Commission’s expenditure is “related to salary and wages,” but the

majority is related to conversion and gas generation, where the utility has

“little control over.

NEW INITIATIVES

The Commission plans to introduce solar street lights in the Manzanilla

area. Ramsook said, “the process is completed and we are waiting for

final approval.”

Ramsook said 1.5 per cent of the population is without electricity and for

consumers with power the Commission strives to ensure that power

outage last no longer than an average one and a half hours. In Tobago,

the average is 2.7 hours, something which he said the Commission is

hoping to improve to get to the national average of 1.5 hours.

<< Back to news headlines >>

RBC TT profits jump 60% Thursday 1st February, 2018 – Trinidad and Tobago Guardian

RBC Royal Bank (Trinidad and Tobago) has recorded an after tax profit of

$191.3 million for its financial year ended October 31, 2017.

The profit represents a 59 per cent increase from its 2016 figure when the

company registered net income after tax of $119.8 million.

Commenting on the bank's 2017 performance managing director Darryl

White said that strong risk management and cost containment initiatives

bolstered its financial position

"We were able to improve earnings through improved asset quality from

our sound risk management practices and lowered structural costs from

ongoing cost management initiatives. The Bank continues to be well

capitalized with a capital adequacy ratio of 15.1 per cent which exceeds

regulatory requirements"

According to White's statement, cost management initiatives led to a

reduction in the bank's non-interest expenses by $33.9 million, which

resulted in a 6.2 per cent improvement in RBC's efficiency ratio year on

year.

He added that the bank was able to improve its 2017 business

performance through "core asset growth, improved asset quality and

operating efficiency, despite the continued economic challenges in

addition to lower margins from a highly competitive local market"

<< Back to news headlines >>

TTNGL dips $0.67 Thursday 1st February, 2018 – Trinidad and Tobago Guardian

Overall Market activity resulted from trading in 16 securities of which 4

advanced, 6 declined and 6 traded firm.

Trading activity on the First Tier Market registered a volume of 326,314

shares crossing the floor of the Exchange valued at $9,272,160.64.

TTNGL was the volume leader with 96,007 shares changing hands for a

value of $2,576,828.80, followed by Guardian Holdings with a volume of

93,718 shares being traded for $1,608,752.25.

Trinidad Cement Limited contributed 46,495 shares with a value of

$173,821.25, while Republic Financial Holdings added 41,534 shares

valued at $4,215,701.00.

Bourse Brazil Latin Fund registered the day's largest gain, increasing $0.30

to end the day at $8.40.

Conversely, TTNGL registered the day's largest decline, falling $0.67 to

close at $26.84.

On the Mutual Fund Market 8,154 shares changed hands for a value of

$161,200.60.

Clico Investment Fund was the most active security, with a volume of

7,654 shares valued at $157,000.60.

Clico Investment Fund declined by $0.39 to end at $20.51.

<< Back to news headlines >>

Nedco offers VSEP Wednesday 31st January, 2018 – Trinidad Express Newspapers

EMPLOYEES of State-owned National Entrepreneurship Development

Company Ltd (Nedco) have been offered Voluntary Separation (VSEP)

options.

The offer was made by chairman Clarry Benn at a special staff assembly

yesterday at the Atrium, El Socorro.

The main purpose of the meeting was to bring staff up to date on

decisions taken by the board to restructure and rebrand the company,

Nedco said in a statement last night.

Benn said it had become necessary to take these steps to ensure that

Nedco can discharge its mandate in an environment which calls for

'acute sensitivity and responsiveness to prevailing social and economic

conditions'.

The board was also mindful of comments and recommendations made

by the Public Accounts (Enterprises) Committee, whose members

expressed grave concerns over Nedco's level of efficiency, productivity

and overall viability, the company stated.

Nedco promotes development of new and existing small and medium-

sized enterprises whose needs cannot be met by traditional lending

agencies.

The decision to restructure and rebrand the organisation emanated from

recommendations of PricewaterhouseCoopers (PWC) which conducted

a financial and operational assessment of Nedco immediately following

appointment of the new board in December 2015.

The PWC assessment highlighted the fact that Nedco's income from its

core business- loans and training-was insufficient to cover its operating

costs.

Two programmes

Employees have been apprised of the rationale for the restructuring and

the process to be followed in submission of applications for voluntary

separations which have offered two programmes catering to permanent

employees who are (a) less than 55 years of age and those who are 55

years or older with less than ten years' service; (b) those who are 55 years

and over with more than ten years of service as at April 30.

Receipt of applications for both VSEP programmes commences today

and closes on February 28, allowing approved applicants to exit the

company by May 1.

<< Back to news headlines >>

A new airline to Tobago? ...company seeking investors Wednesday 31st January, 2018 – Trinidad Express Newspapers

THE Chief executive officer of Sterling Tobago Airways Limited, which is

seeking investors to establish an air bridge to rival Caribbean Airlines,

believes that his company could make a TT $24million profit within a year

of operations.

And within five years, it could be more than TT$100 million.

In a letter to potential investors, Raymond McMillian made a case by

highlighting the poor state of the existing air bridge, which he said has

been a sour point for more than 30 years.

” The facts speak for themselves. Tobago has developed at a much faster

pace in the last five years, than previously. The infrastructure such as

roads, drinking water, electricity supplies, conference facilities and hotel

hospitality are at an acceptable level. The present difficulty in getting to

Tobago, defeats all of the investments above resulting in the entire

economy being frustrated.

The recent press release from the existing carrier Caribbean Airline (CAL),

stated that with a 30-minute delay, their performance was at 86 percent

(above industry standards). One then wonders why almost on a weekly

basis do we have passengers stranded and having to overnight at the

airport after waiting for hours on end, for a 20-minute flight. If there is a

simple shift in the ability of citizens, business individuals & holiday visitors to

get to Tobago with greater ease and less frustration, the entire economy

will experience the well awaited “economic explosion”.”

According to the proposal to investors, the answer is simply another carrier

to meet the demand left unsatisfied by CAL, providing the confidence for

individuals to travel, enjoy Tobago and return to their respective

destinations reliably and on time.

“It is because of our first-hand experience of the continual frustrations

which gave rise to the birth of Sterling Tobago Airways Limited trading as

“Tobago Airways”. Our tagline: seamless service, affordable price.

We are a team of energetic and dynamic citizens who have come

together to make a difference in complimenting CAL's efforts in brining

passengers to Tobago thus bridging the existing gap” states the brochure

to potential investors.

Why invest? The company gave reasons.

• Return on Investment (ROI) at above industry average. For

investments of USD100,000 and above, the returns are negotiated

on a case by case basis. All others will range between 7% to 15%

per annum.

• Special Loyalty club benefits for frequent fliers.

• Special discounts for bulk buying of tickets for monthly travel.

• Opportunity to network with businesses from around world through

our international connections.

Benefits to Tobago & the wider community of Trinidad and Tobago were

listed as brand awareness to an international audience, International

Aviation School to be located in Tobago, the foreign flight crew will be

based in Tobago, opportunities for shareholding to the average citizenry,

invisible earnings to the State's Gross Domestic Product, CSR -

opportunities to give back to our society, and international marketing of

Trinidad & Tobago to the world by our charter services.

Sterling Tobago Airways Limited stated that its initial contract (AMIC) is

with Airline Solutions Limited, a company registered in London, UK. Aircraft

Fuel is not included in the AMIC contract.

The board has agreed to “buy in” ground handling services from

Swissport, the industry leading supplier internationally.

The company also stated: “The projections are based on 90% occupancy,

given our proposed contracts with key industries, we are confident this

can be achieved".

<< Back to news headlines >>

Grande businessmen back Toco Highway Thursday 1st February, 2018 – Trinidad and Tobago Newsday

Sangre Grande residents have given a positive vote for the proposed

highway from Cumuto to Toco to help alleviate some of the travel

struggles of many making the inter-island transit. There have been many

hiccups with finding a reliable ferry source between the two islands for

many months. The only inter-island vessel is now the Trinidad and Tobago

Express, the TT Spirit has been dry docked.

Environmental activist group Fishermen and Friends of the Sea (FFOS) had

obtained an interim injunction barring the Government from continuing

work on the first phase of the $400M Churchill Roosevelt Highway

Extension to Manzanilla.

Yesterday, Works and Transport Minister Rohan Sinanan met with the

Sangre Grande Chamber of Commerce and burgesses to determine the

pros and cons of the proposed highway. The meeting took place at the

Sangre Grande Regional Corporation where stakeholders voiced their

opinions.

Sinanan said the highway was a one time deal that would benefit all

residents in the eastern peninsula. “If we don’t dream the dream and

make it happen, it will continue to be a pie in the sky,” he said.

Sinanan said while Sangre Grande was one of the largest constituencies in

the country, it was also the poorest. He said the new highway would bring

in much needed economy, employment and opportunities for the

residents.

“This is a highway to open up the eastern seaboard. It would take a while

until completion, but we know once it is started it would create jobs and

other opportunities for the people in Sangre Grande. Ninety-nine per cent

of them supported the highway in Sangre Grande. I don’t know where the

other one per cent is from, but we will find them and convince them that

this is the way to go,” he said.

As to an alternative means of Transport on the Tobago air bridge, Sinanan

said he did not know the major players involved. It was reported that

Raymond McMillan, chief executive officer of Sterling Tobago Airways

Limited felt that Caribbean Airlines needed some competition.

“I don’t know who are the major players, I have asked for a response, but I

have not seen the brochure. As of now I have no information on who are

the players, what approvals they have and who they are in contact with,”

Sinanan said. He said to open the air bridge to a private company they

would have to go through the TT Civil Aviation Authority and follow all

requirements.

<< Back to news headlines >>

Republic Financial Holdings records $340M profit Thursday 1st February, 2018 – Trinidad and Tobago Newsday

Republic Financial Holdings Ltd (RFHL) has recorded TT$340 million in profit

attributable to shareholders for the quarter ending December 31, 2017.

Announcing the results last Thursday, RFHL chairman Ronald Harford said

the improvement in profitability was driven mainly by better performance

in the group’s overseas territories.

"The profitability of the TT subsidiaries declined because of an increase in

loan impairment expense of $34 million and increase in taxation of $14.4

million, arising from the five percent higher tax rate."

Republic Bank TT is one of RFHL's subsidiaries.

The $340 million profit represents an increase of $10.2 million or 3.1 per

cent over the corresponding period in 2016. Total assets of RFHL stood at

$70 billion at December 31, 2017, an increase of 2.2 per cent over total

assets as at December 2016 and 1.5 per cent over September, 2017.

The RFHL chairman also said he remains optimistic that despite the

economic challenges in several key markets, the sound performance

achieved in this quarter will continue for the remainder of the financial

year.

<< Back to news headlines >>

Jolly’s to acquire Oil of Ojas Wednesday 31st January, 2018 – Dominica News Online

“I had a divine dream, a revelation”. Twenty-two years ago, this was the

motivation behind Mr. Anthony Toulon’s creation, Oil of Ojas. A household

name in Dominica and the region, many people store a bottle in their

medicine cabinet. Today, in a bid to strengthen its foothold as a

manufacturer of safe and trusted all natural products, Jolly’s

Manufacturing and Toulon agencies announces that Jolly’s

manufacturing, a subsidiary of the parent company, Jolly’s Pharmacy will

acquire this multi-purpose essential oil.

In light of technological advancements and rapid innovation that has

caused a resurgence in the field of manufacturing, Mr. Toulon believed

that maintaining competitiveness was significant and contemplated on

the sustainability of his creation.

Thus, in an effort to preserve his special formula which stemmed from a

dream and maintain the integrity of the brand, Mr. Toulon saw Jolly’s

Manufacturing as a deserving successor. “I looked around Barbados,

Trinidad, Antigua, St. Lucia and Martinique but Jolly’s had a track record

of pushing my product for over 20 years”, remarked Mr. Toulon.

Mr. Toulon believes that Jolly’s Manufacturing has the pre-requisites and

suitability to develop the product, making it much more international. He

stated, “That due to new investments the company has made including

quality adherence and modern equipment, he believes Jolly’s

Manufacturing is taking manufacturing to another level”.

Managing Director of Jolly’s Pharmacy, Dr. Orrin Jolly commented, “Oil of

Ojas is to me, one of the best manufactured products in Dominica. He

affirmed the high standard of the product and reflected on the oil’s

regional distribution.

Among plans for the newly acquired product, Jolly’s Manufacturing will

fund the testing of Oil of Ojas in France to ensure that the product is sold

and marketed in the EU territories. Mr. Toulon will remain an advisor to the

company while Ms. Lou Ann Jno Baptiste who is currently completing a

Master’s degree in Analytical Chemistry, will return to facilitate the

advancement and development of the product.

Jolly’s Manufacturing is the manufacturer of locally made products

including Bay Off Insect Repellent Cream and Spray, Babylis Male and

Female Adult Deodorant, Babylis Cream and MB ointment.

<< Back to news headlines >>

More jobs added to gov’t job program Tuesday 30th January, 2018 – Dominica News Online

The government is to expand a program that will be providing jobs to

residents in the wake of Hurricane Maria, Prime Minister Roosevelt Skerrit

has announced.

Earlier this month, Skerrit announced that the cabinet has taken the

decision to create 1,100 jobs to engage those made redundant and

displaced by the hurricane.

Skerrit said 100 more jobs will be added to the program.

“We’ve taken the decision to bring it to 1,200 jobs in the public service

and this is a direct response to the fallout due to the passage of Hurricane

Maria,” he said.

He said these jobs will be for those who lost their jobs in the private sector

and it might take some time before the private sector gets on its feet

again.

“Several of our brothers and sisters in Dominica would have lost their jobs

from the private sector,” he noted. “If the private sector firm is not

operational, we don’t expect them to keep staff for any period of time.

Some of the private sector firms will take some time to get back on their

feet: they have to reconstruct, they have to rebuild, they have to restock,

some of them, they are still waiting for their insurance money …”

The Prime Minister said a decision was taken to “maintain the dignity and

the sanity of these people who were affected by the hurricane.”

The program is expected to begin in March with funds from the island’s

CBI Program.

<< Back to news headlines >>

Gov’t donates $3.7-million for Clear Harbor renovation Tuesday 30th January, 2018 – Dominica News Online

The Government of Dominica has donated $3.7-million which will go

towards the renovation of sheds which house the Clear Harbor Call

Center which is located at the Industrial Estate in Canefield.

This was announced by the Chairman of the Dominica Agricultural

Industrial and Development (AID) Bank Martin Charles.

Charles was speaking at bank’s post-Hurricane Maria press conference at

the bank’s conference room on Tuesday morning.

“We are also thankful to the government for making available some $3.7-

million for restoring and refurbishing of the sheds occupied by Clear

Harbor at the industrial estate in Canefield,” he stated.

He noted that Clear Harbor is one of the single largest employers on the

island and therefore the refurbishment of the facility was critical.

He said that the Prime Minister’s (Roosevelt Skerrit) decision on donating

the funds came following a site visit to the facility with the members of the

Board of Directors of the AID Bank and its management team.

“Prior to this announcement the Prime Minister ensured that a generator

was made available to Clear Harbor weeks after Maria so that they could

have commenced their operations,” Charles remarked.

Meantime, Charles has expressed his gratitude towards the Government

of Dominica for the millions which have been invested in the bank over

the years especially through the Citizenship By Investment (CBI) Fund.

He said that the government has ensured that Dominica’s economy will

recover by lending to the productive sectors.

Charles said that as a result of the government’s investment it would

create: “an increased employment, the control and production of the

food import bill and increase revenue and foreign exchange earnings.”

The site in which Clear Harbor operates at the Canefield Industrial site is

owned by the AID Bank.

<< Back to news headlines >>

IMF warns economy is slowing down Wednesday 31st January, 2018 – Barbados Today

The performance of the Barbados economy is predicted to worsen this

year, dealing a staggering blow to Government’s efforts to generate

confidence in the electorate.

The International Monetary Fund (IMF) is forecasting jaundiced 0.5 per

cent growth this year, on the heels of a less-than-impressive 0.9 per cent

last year.

In a statement released today just as Central Bank Governor Cleviston

Haynes was reporting on the economy, the IMF said “growth is slowing

reflecting increased pace of fiscal consolidation”.

It said the flagging economy was in need of a stronger macroeconomic

framework and bolder structural reforms in order to achieve fiscal and

debt sustainability, address the large financing needs, build adequate

international reserves, and boost growth.

The Washington based lending agency added that the low growth was as

a result of ongoing fiscal adjustment and “policy uncertainty related to

the forthcoming elections”.

“Large fiscal deficits, high debt, and low reserves are posing challenges,”

it said in the statement that followed the conclusion at the end of last

week of its Article IV Consultation with Barbados.

Haynes announced today that the fiscal deficit had been reduced to 3.7

per cent of gross domestic product (GDP) or $399.5 million between April

and December last year, 33 per cent lower than the $596.1 million for the

same period the previous financial year.

At the same time, overall debt fell to 145.9 per cent of GDP, from 147.5

per cent the previous year.

However, the IMF suggested that the deficit had not fallen nearly as much

as it would have liked, stating that “the larger than expected fiscal deficit

is increasing funding challenges”, while it called for “sustained action to

bolster reserves”, which slumped to $410 million, or 6.6 weeks of import

cover at the end of December.

It also made mention of the slashing by the Central Bank of its financing of

Government to a mere $96.8 million between April and December,

compared to $714.5 million for the corresponding period for fiscal year

2016/2017.

But the lending agency expressed concern about the increased reserve

requirements by commercial banks for holding Government securities,

stating that the added requirements had increased the banks’ exposure

to sovereign risk.

At the same time the IMF called on Government to enhance regulatory

and supervisory frameworks, especially for non‑bank financial institutions,

“to strengthen the anti-money laundering/combating financing of

terrorism regime, and to proceed with legislative amendments to increase

Central Bank independence”.

“Directors encouraged the authorities to continue efforts to phase out

direct financing of the Government by the Central Bank and to reorient

monetary policy towards supporting the fixed exchange rate regime,” the

statement said.

The international lending institution report also emphasized the need for a

comprehensive restructuring of state owned enterprises, saying this was

critical in order to address structural imbalance in the public sector, “in

particular by reducing Government transfers”.

“Priority should be given to defining clear objectives for state owned

enterprises reform and implementing the Public Financial Management

and Audit Act, as well as other measures,” said the IMF directors, who also

insisted that changes be made to the size and delivery of social

programmes in an effort to “contain their cost and ensure their long‑term

viability”.

“Directors emphasized that stronger and deeper structural reforms are

critical to unlock the economy’s growth potential and maintain

macroeconomic stability. They underscored that reforms should focus on

strengthening the business environment, facilitating economic

diversification, and improving the efficiency and effectiveness of public

service delivery. Directors supported the authorities’ efforts in improving

the timeliness and quality of economic data,” the statement added.

<< Back to news headlines >>

Haynes: Pay increase not recommended right now Wednesday 31st January, 2018 – Barbados Today

Governor of the Central Bank of Barbados Cleviston Haynes today

warned Prime Minister Freundel Stuart that a pay rise for public servants

would deal a crippling blow to Government’s fiscal adjustment efforts.

In delivering his 2017 economic review, Haynes said modest progress

made over the last nine months in reducing the public sector wage bill

would be wiped out by additional expenditure at a time when the

emphasis must be on reducing spending.

“We want to be able to reduce expenditure at this point rather than to

increase expenditure. I don’t know if I need to say anymore,” he said in

response to questions about whether Government would be able to

afford to give public servants an increase.

“An increase in wages at this time, the question is how are we going to

finance it? We already have difficulty financing the existing expenditure,

so if you have an increase in wages and expenditure at this point, what is

going to be the source of that financing? We are setting ourselves up for

what I would call a very disorderly adjustment because in the absence of

financing what you get is a further build up in arrears in the system,”

Haynes warned.

The National Union of Public Workers (NUPW) is demanding a 23 per cent

pay rise and a $60 million lump sum as a coping subsidy, which it said

Government workers need to help them cope with the rising cost of living

which resulted from the austerity measures introduced here last year,

including the hike in the National Social Responsibility Levy from two to ten

per cent on all imported and locally produced goods.

At the same time, the Barbados Workers’ Union wants a 15 per cent

increase for its members in the public service, but has all but abandoned

the idea of a subsidy.

The NUPW last month rejected a $49 million lump sum offer, which

Permanent Secretary in the Ministry of the Civil Service Alyson Forte

yesterday said was not the final offer, but was put on the table for

discussion.

Forte also told Barbados TODAY he was awaiting word from Stuart on how

much more Government was willing to offer the workers.

However, the Central Bank Governor today stood firm in his opposition to

an increase in wages.

“We have to move in a direction of being able to eliminate arrears in the

system rather than a further build up. Therefore, adding expenditure is not

going to help in that particular situation. And I need not spell out the other

balance of payments potential that is created by increased wages at this

point,” Haynes said.

Acknowledging that it had been “a long time” since public servants had

received a pay rise – ten years – Haynes said “the broader picture” should

be considered, stressing that Government would have to find ways to

make up for the increase in expenditure occasioned by a salary increase.

The top economic advisor reported that while Government expenditure

rose by $9.9 million between April and December 2017, there were

modest savings on goods and services, along with wages and salaries.

Central Bank figures showed that at the end of the review period wages

and salaries stood at $579.2 million, down from $583.7 million at the end of

the corresponding period the previous year.

The increase in expenditure was as a result of hikes in interest payments,

transfers and subsidies, as well as grants to individuals and public

institutions.

<< Back to news headlines >

High-level EU team arrives in Jamaica today Thursday 1st February, 2018 – Jamaica Observer

STEFANO Manservisi, director-general for International Cooperation and

Development in the European Commission, based in Brussels, is leading a

high-level European Union team to Jamaica, starting today.

Foreign Minister Senator Kamina Johnson Smith, in a release yesterday,

said Manservisi will lead the high-level delegation to Kingston from

February 1 to 2 for regional and bilateral talks with several high-level

government representatives from Jamaica and the wider Caribbean.

“Mr Manservisi's visit comes at an important juncture, especially as we

prepare for a new chapter in the rich history of development cooperation

between the EU and the African, Caribbean and Pacific (ACP) Group, of

which Jamaica is a founding member,” she said.

Jamaica recently held the chair of the CARIFORUM group within the ACP

and is scheduled to assume the presidency of the ACP during the period

February 1 to to July 31, 2018.

During the visit, Manservisi will meet with Prime Minister Andrew Holness,

Senator Johnson Smith, Minster of Justice Delroy Chuck and Minister of

Finance Audley Shaw. These meetings, the statement said, will address

aspects of the EU/Caribbean/Jamaica relationship, the CARIFORUM-EU

Economic Partnership Agreement (EPA) as well as cooperation in the

areas of security, justice and energy. He will also hold meetings with

representatives of EU Member States and with development partners.

A highlight of the visit will be the grant financing signing ceremony

involving the IDB and the Government of Jamaica. The grant will support

a multimillion-dollar energy management and efficiency programme.

Today, Manservisi will deliver a public lecture entitled: The EU and the

Caribbean: a proposal for a modern partnership beyond 2020 at the

University of the West Indies. He will also tour sections of downtown

Kingston, including the Ward Theatre and Justice Square.

Ambassador Malgorzata Wasilewska, head of the EU Delegation in

Jamaica, meanwhile, has underscored that “having a strong EU-

CARIFORUM relationship is crucial for achieving the Sustainable

Development Goals, particularly for Small Island Developing States”. The

visit, said the ambassador, is designed to demonstrate the valuable

outputs of the very successful partnership with Jamaica across multiple

sectors.

Manservisi's visit is the first to Jamaica by a high-level EU representative in

11 years.

The European Union, comprising 28 member states, is the world's largest

grant donor. Between 2014 and 2020, the EU is committed to providing

euro 46 million to Jamaica. The EU's priorities in the Caribbean are citizen

security, protecting the environment, curbing climate change, health with

special emphasis on improving maternal and child health and improving

the management of public finances.

<< Back to news headlines >>

STATIN says unemployment at its lowest in a decade Thursday 1st February, 2018 – Jamaica Observer

THE Statistical Institute of Jamaica (STATIN), in a release yesterday, said

that the declining unemployment rate is at 10.4 per cent, the lowest it has

been since October 2008.

STATIN, the Government's statistics agency, said that the youth

unemployment rate of 25.4 per cent was also the lowest since January

2008, while female employment continues to increase.

In addition, it noted that at October 2017, most of the persons who

gained employment were non-government employees.

According to the information included in the 2017 Labour Force Survey,

the number of persons employed in October 2017 was 1,206,800, which

was 27,300 (2.3 per cent) more than the 1,179,500, recorded in October

2016. For males, employment had increased by 5,300 (0.8 per cent)

between October 2016 (663,600) and October 2017 (668,900), while

female employment increased by 22,000 (4.3 per cent) from 515,900 to

537,900 over the same period.

The release said that the unemployment rate for October 2017 was 10.4

per cent, which was 2.4 percentage points lower than the rate of 12.9 per

cent for October 2016. This decrease was driven by a larger decline in the

female unemployment rate. Male unemployment rate declined by 1.6

percentage points (from 8.9 per cent to 7.3 per cent) and for females the

decrease was 3.4 percentage points (from 17.5 per cent to 14.1 per cent).

In the employed labour force, the occupation group 'Clerks' increased by

7,900 people (9.4 per cent), from 83,700 in October 2016 to 91,600 in

October 2017. Increases in employment were also observed in the groups

'Skilled Agricultural and Fishery Workers' and 'Elementary Occupations' by

6,200 and 5,200 persons respectively over the same period.

For males, the occupational group 'Elementary Occupations' accounted

for the largest increase of 5,100 (6.7 percent) over the period, moving

from 75,800 in October 2016 to 80,900 in October 2017. For the same

period, the largest gain for females (8,800 or 6.5 percent), was in the

group 'Professionals, Senior Officials and Technicians'

The number of persons employed in the group “Health & Social Work” was

32,500, a 28.0 per cent (7,100) increase over October 2016. The industry

group “Manufacturing” had the largest increase in the number of males

(5,400), moving from 49,200 to 54,600 over the period. For females, the

industry group “Health & Social Work” accounted for the largest increase

of 8,000 (44.4 percent) over the period, moving from 18,000 in October

2016 to 26,000 in October 2017.

<< Back to news headlines >>

Geothermal energy can fuel the future of the Eastern Caribbean Wednesday 31st January, 2018 – Caribbean News Now

Analysis by Judith Ephraim from the OECS Commission for the London

School of Economics and Political Science

LONDON, England — The London School of Economics and Political

Science has teamed with Judith Ephraim and the staff from the

Sustainable Energy Unit of the Organisation of Eastern Caribbean States

(OECS) Commission for an analysis on the future of geothermal energy in

the Caribbean.

Though geothermal energy is a more involved and expensive undertaking

than other renewables, its significant benefits make it an ideal way for the

Eastern Caribbean to gain greater energy independence, reduce energy

costs, and achieve sustainable development.

The islands of the Eastern Caribbean are renowned for their natural

beauty and rich culture. But the volcanic origin of these islands has not

only created breathtaking scenery, it could soon provide the solution to

the region’s quest for clean, renewable, and affordable energy.

Like most small island developing states (SIDS), the countries of the

Organisation of Eastern Caribbean States (OECS) spend a large part of

their earnings on imported fossil fuels to meet their energy needs, yet they

also boast high levels of solar radiation, good wind regimes, and

impressive geothermal potential.

Across the world, the cost of energy has a major influence on quality of

life. Energy represents a significant cost to households, businesses, and

states. Reductions in the cost of technologies such as solar have led to

promising growth in the renewable energy sector, but to make this sector

a significant contributor to electricity generation in the OECS, efforts must

include geothermal energy development.

The benefits of geothermal energy in the Caribbean and beyond

The International Renewable Energy Agency reports that geothermal

deployment worldwide reached a total installed capacity of 12.7

gigawatts in 2016, a level well below its potential. There is, however,

increasing recognition of its many advantages over other technologies,

which may explain why global geothermal output has risen by 26 percent

in just over five years.

First, it has high availability and can be delivered 24 hours a day, 365 days

a year. Geothermal energy plants can also operate continuously at up to

98 percent capacity because they have a constant source of “fuel” and

require little downtime for maintenance. With climate change gradually

increasing the severity of extreme weather events, a further advantage of

geothermal installations is their greater resilience in the face of hurricane

damage, as compared to solar, wind, and wave technologies.

Though there is currently just one operational geothermal plant in the

Caribbean, on the French island of Guadeloupe, geothermal studies have

been carried out since the 1950s, generating a wealth of knowledge that

can inform new projects. With recognition of the unique benefits of

geothermal spreading, seven of the OECS’ ten members are now

pursuing geothermal energy projects.

The growing presence of geothermal in the Eastern Caribbean

Montserrat, with the smallest population in the OECS, is already well

advanced, with two rounds of exploratory drilling having confirmed a

productive geothermal resource, and a third exploratory well on the way.

Discussions regarding the design, procurement, and construction of a 2.5-

3.5 megawatt (MW) plant are in progress.

Due to rising fuel prices and the cost of shipping to the island, Montserrat

has some of the highest electricity costs in the world. A successful

geothermal energy project would reduce the cost of electricity

generation, in turn lowering costs for investors and ultimately transforming

Montserrat’s wider economy.

In Dominica, meanwhile, geothermal work has been underway for some

time, but the devastating effects of Hurricane Maria have only reinforced

the need for the country to invest in indigenous renewable energy

sources.

Surface studies on St Kitts, carried out by a geothermal company from

nearby Guadeloupe, are still ongoing, but preliminary results indicate the

potential for a geothermal plant of 18-36 MW. On sister island Nevis

additional testing is required, but a plant of 9 MW is being considered.

Saint Lucia has completed both a feasibility study and also an

environmental and social impact assessment in preparation for

exploratory drilling.

St Vincent and the Grenadines has completed a power purchase

agreement with a private generating company for the sale of future

geothermal energy, and a drilling contractor has already been procured.

Grenada is setting up a project management unit to oversee their

geothermal work with drilling expected to commence soon.

Understanding and overcoming the barriers to geothermal development

The OECS Commission’s recent stakeholder analysis sought to identify the

main challenges to geothermal energy development in the region.

Feedback from governments, utility companies, and private-sector

experts showed a clear consensus amongst all participants that finance

and government policy are the main challenges to geothermal energy

development in the region, whereas technological issues and competition

from other energy sources play a lesser role.

Although geothermal projects are relatively capital intensive, a

geothermal power plant has low and predictable operating costs.

However, financing for geothermal energy remains a challenge for the

region given the high cost of the exploratory studies required to confirm

the resource.

Few OECS countries are currently in a financial position to pursue

geothermal on their own, and neither are they necessarily prepared to

take loans from multilateral development banks for that purpose. This

means that private sector developers are likely to play a significant role in

geothermal energy development in the region.

Aside from this important role of the private sector in capitalising

geothermal projects, Eastern Caribbean states are seeking innovative

financing options that will not negatively impact the electricity tariffs

expected from geothermal generation.

A critical issue in future will be successful negotiation of supply

agreements with regard to concessions, timeframes, prices, and other

regulations. These must ensure fair terms and conditions for all

stakeholders. In this regard, national governments have a leading role to

play in safeguarding the interests of the countries.

Since geothermal energy development constitutes a novel undertaking

for most of the Eastern Caribbean, capacity building will also be key.

Geothermal energy development will require input from several

professional fields, but will also require specialised knowledge and skills.

Once geothermal plants are built, close management will be needed as

they require careful optimisation over time. As such, a holistic approach is

key to achieving best practices in terms of field appraisal, project

development, drilling, and operation, thereby ensuring that geothermal

projects achieve their anticipated economic performance.

Though geothermal energy is a much more involved and expensive

undertaking than solar or wind, the benefits may well be worth the effort.

It is geothermal energy that holds real promise for the Eastern Caribbean

as we seek to gain greater energy independence, reduce energy costs,

and drive towards sustainable development in the region.

<< Back to news headlines >>

27 expressions of interest in GPL’s natural gas power plant Thursday 01st February, 2018 – Kaieteur News

At least five Chinese companies are among 27 firms which have

expressed interest in operating the Guyana Power and Light (GPL)’s

natural gas-fired power plant, under a 25-year agreement, in Demerara.

GPL, the state-owned electric utility invited technically and financially

sound business parties to submit an expression of interest (EoI) for

Independent Power Production (IPP) on a build, own and operate 50-

megawatt (MWs) Capacity Natural Gas Power Plant.

The EoI period ended yesterday, with senior GPL officials unveiling the

names of the companies which responded to the company’s request.

Inside GPL’s boardroom at Duke Street, Kingston, the official documents

revealed a large interest from South American states, especially Colombia

and Venezuela. Companies in Qatar, Dubai, Trinidad and Tobago, United

States and the United Kingdom, also made EoI submissions.

Scope of work for the project comprises all activities necessary to

develop, finance, insure, install new plant and equipment, test,

commission, own, operate and maintain the power generation facility.

The project also entails the construction of associated substations, fuel

storage facility and other related facilities for complete operation,

generation and transmission of electricity to the national grid.

Among the requirements for the EoI, was access to competent

construction, commissioning, operation and maintenance contractors of

at least two similar-sized facilities, a strong balance sheet with a minimum

capital of US$25 million, audited financial statements for the last three

years and a bank credit reference.

Companies were also required to demonstrate the ability to raise funds to

undertake a project with a notional capital cost of US$100 million, at

competitive terms with a debt/equity ratio within the range of 80%:20%

and 70%:30%.

The next phase is for the EoI submissions to be evaluated.

Initially, GPL last September had invited EoI for a 50 MW dual-fuel power

plant with a mix of heavy fuel oil and natural gas. The plant was to be built

within the specific areas of Georgetown, East Coast of Demerara and the

East Bank of Demerara.

The decision by GPL to move in the direction of natural gas only is

interesting, given that the coalition government said as recent as last

week that it has not decided whether to utilize the excess natural gas

from ExxonMobil operations.

Minister David Patterson has disclosed that it is estimated that the natural

gas to be produced daily is between 30-50M cubic feet. A portion of that

amount is to be re-injected into ExxonMobil’s operations with the

remaining amount to be disposed of or likely utilized by Guyana.

Patterson stated that at this time the Government remains focused on

continuing developmental work based on a specific location for the

landing of the natural gas pipeline.

The Minister, who is part of the Government team of Cabinet members

overseeing the developing of the oil and gas industry in Guyana,

disclosed that indeed the administration is exploring the commercial use

and development of natural gas. The current assessments being done are

both for downstream power generation through the development of a

new power generation facility – and as a medium to long-term investment

opportunity.

<< Back to news headlines >>

$1m Factoring Scheme In Sme Funding 'Firsts' Wednesday 31st January, 2018 – Tribune 242

A "first ever" $1 million accounts 'factoring' scheme aims to aid "well over

100" Bahamian small businesses immediately following its summer 2018

launch. Omni Financial Group, the Bahamian payments solutions provider,

yesterday hailed its partnership with the Inter-American Development

Bank (IDB) as potentially boosting cash flow, growth and customer base

for local micro, small and medium-sized enterprises (MSMEs). With the IDB's

Multilateral Investment Fund (MIF) providing the financing, Omni will

effectively act as its 'executing agency' by making small loans secured

against the accounts receivables (debts) owed to qualifying Bahamian

MSMEs by their clients.

This is known as 'factoring', which is commonplace in most economies, but

has never been done in a structured way in the Bahamas. The Bahamas

Agricultural and Industrial Corporation (BAIC) will work with Omni to

identify potential lending clients, and develop the benchmarks and rules

that MSMEs must meet to qualify for the micro loan facility.

Harvey Morris, Omni's chief executive, told Tribune Business that while the

scheme would boost access to capital for an 'underserved' element of

the private sector, it will also impose "long-term discipline" on MSMES when

it comes to financial management.

He explained that the ultimate goal was to enable MSMEs to grow to the

point where they could access more traditional forms of capital, such as

debt financing provided by commercial banks, thereby stimulating

economic growth, entrepreneurship and job creation.

Mr Morris suggested Omni's IDB partnership was "the first time that

factoring has been done" in such a structured way in the Bahamas, with

the parties "leaning towards" a model where the payments solutions

provider paid the full invoice value - minus a small discount - to the MSE

upfront.

While some factoring schemes only pay a proportion of the invoice value,

Mr Morris added that the preferred model would better "increase the

supplier's [MSME] cash flow".

"We are going to work with known purchasers and suppliers, and once the

supplier has delivered the products his invoice is brought to us," the Omni

chief explained. "We will discount the invoice at an amount to be

determined, because we got an exceptional rate on this facility from the

IDB, and those funds will be paid to the supplier immediately."

Using a 5 per cent discount rate as an example, Mr Morris said Omni

would pay the supplier $9,500 on a $10,000 invoice. The payments

provider would then treat the invoice as its own receivable, collecting

repayment from the borrower's client after one-three months depending

on the payment terms.

Mr Morris said the scheme aimed to enhance MSME cash flow and

liquidity by giving them instant funds to restock inventory, enabling them

to start the product and supply cycle much quicker than if they were

waiting for client payments.

"The benefit for them is to replenish their inventory," he explained to

Tribune Business, "and it also gives them the opportunity to negotiate sales

with suppliers [clients] who they will not normally deal with now because

those suppliers have a longer payments cycle.

"The SME may have put all of his money in because financing may be

difficult for him, so all funds go into products. He has a good receivable,

but how does he replenish inventory to produce another set of products?"

Mr Morris said this was the problem that Omni's partnership with the IDB is

seeking to solve, and he suggested that "well over 100" MSMEs will be

assisted "in the very early stages".

"The intent is to try and provide the funding to persons who don't have any

access to financial services; credit services," he told Tribune Business.

"We're looking at farmers, we're looking at cottage industries, we're

looking at persons providing services to the Government.

"This year our [Omni's] focus is on providing financial inclusion to MSMEs. It's

badly needed, but a lot of people, because they're not aware of the

service, they have a receivable and wait it out while their business suffers.

"In speaking to members of BAIC, once we started the education process,

everyone gave us a scenario where the product could have helped them

if available before."

Mr Morris said Omni had been working on the factoring product's

development for 18 months prior to yesterday's formal unveiling, with its

actual launch scheduled for summer 2018.

He added that the IDB will now arrange for Omni's team to visit other

countries that employ MSME factoring schemes, so it can obtain

"complete knowledge" before completing its own version;

"The next step is the completion of the conditions precedent," Mr Morris

said. "A key one is entering into an agreement with BAIC to assist in the

screening of SMEs, and further review and development of the final

product for approval by the IDN and our Board. As far as the process is

concerned, we have probably another three to six months to complete

the next phase."

Seeking to manage expectations, he added that yesterday's signing with

the IDB did not mean the factoring scheme will launch today. "This does

not mean the IDB will disburse the funds to us and we'll be lending

tomorrow," Mr Morris said. "It requires a lot more due diligence."

He explained that one of the conditions required to qualify for factoring is

the presentation of an invoice to "a reputable company that can settle

that invoice on the due date", thereby minimising risk for Omni and the

wider programme.

"The short-term benefit to the sector is the capital," Mr Morris told Tribune

Business, "but the long-term benefit is financial discipline and chance to

demonstrate their ability to serve a facility from a commercial bank.

"It's our hope many of these clients will be graduated. This product was

tailor-made for us by the MIF in the Bahamas. And the IDB continues to

encourage us to provide financial inclusion for all."

The $1 million represents the first time the MIF, the IDB's private sector arm,

has made a non-grant disbursement in the Bahamas.

<< Back to news headlines >>

Rbc's Middle Class Mortgage Appetite 'Severely Diminished' Wednesday 31st January, 2018 – Tribune 242

A ROYAL Bank of Canada (RBC) executive yesterday said its appetite to

lend mortgages to middle and lower class Bahamians was "substantially

diminished" due to inadequate market infrastructure. Tim Rider, RBC

Caribbean's senior vice-president of sales, told the Royal Fidelity Economic

Outlook that as a result the Canadian-owned bank was now focused on

"affluent" borrowers when it came to home lending. With many potential

borrowers too heavily indebted to take on a mortgage, Mr Rider also

pointed to the continuing absence of a Bahamian Credit Bureau as an

example of 'inadequate market infrastructure'.

Legislation to create such a facility has been tabled in the House of

Assembly, and is expected to be debated early in 2018, but the RBC

executive said its non-existence meant that lending decisions were

currently based on "imperfect information" with banks unable to properly

assess the creditworthiness of individual borrowers.

And, defending RBC's continued Bahamian branch closures and drive to

digital banking, Mr Rider said the bank needed to be "speeding up" -

rather than slowing down - when it came to driving such change.

Amid all the complaints, he questioned whether a bank such as RBC

should be committed to the Bahamas if this nation was "not committed to

its own success', arguing that reforms such as digital banking where

necessary to drag the country to world-class norms.

Mr Rider also warned that Bahamian companies and wealthy individuals

were setting up "escape routes" for their assets and families in case the

Bahamian economy and government finances continued to nosedive -

confirming what multiple sources have recently informed Tribune Business

about.

"The current mortgage lending infrastructure has substantially diminished

RBC's appetite for mortgages to the average Bahamian, and forced our

focus up-market to those borrowers who are more affluent and have

proven ability to repay their debt," Mr Rider said.

"The mortgage lending infrastructure, and lending infrastructure in general

in this country, needs to improve so that we can actually open the

lending books."

Mr Rider added that the mortgage market has largely been deserted by

the local banks, with Commonwealth Bank, Bank of the Bahamas and

Fidelity Bank (Bahamas) now all largely focused on consumer loans that

are perceived as less risky because they can be secured via salary

deductions.

The senior RBC executive said many potential borrowers are over-

leveraged, further depressing the pool of borrowers who can potentially

qualify for a mortgage. "From an aggregate perspective we see the

country having over-leveraged consumers and over-leveraged

businesses," he said.

"Leverage at the sovereign level is a concern, but the VAT tax has

indicated that the size of the economy is larger than originally thought, so

the debt-to-GDP can be turned, but it will have to primarily be through

expense control back towards an investment grade rating."

While many Bahamians will likely be further riled by Mr Rider's comments,

having been antagonised by RBC's recent branch consolidations and

Family Island withdrawals, they have major social and economic

implications for this nation.

For they suggest that the dream of 'owning a piece of the rock' is

increasingly being placed beyond the reach of middle class and average

Bahamians, the majority of society, as a result of commercial bank risk

aversion to mortgage lending.

This is a consequence of the fall-out from the 2008-2009 recession, which

resulted in $600 million worth of non-performing mortgage loans clogging

bank balance sheets and depressing profit performance, and the

prolonged workout that followed.

The Bahamian economy, together with unemployment and salary levels,

has yet to fully recover and this, combined with more stringent banking

lending standards, has sharply reduced the origination of new mortgage

loans.

This, in turn, has depressed the Bahamian housing market, resulting in

sharply reduced work volumes for multiple professions that rely upon it -

the likes of contractors, realtors, attorneys and other service providers.

The negative ripple effects have been felt throughout the Bahamian

economy for a decade, and Mr Rider yesterday identified structural

impediments to increased commercial bank lending.

He said the Bahamas does not have a Credit Bureau, making it nearly

impossible for lenders to truly understand the level of indebtedness of a

potential client. "This means decisions are based on significantly imperfect

and much more narrow information than we are used to having in

Canada, the US and Europe," Mr Rider said.

"While I know it is on the legislative docket, an expedited focus would be

highly recommended."

While he did not identify other 'inadequate mortgage infrastructure', Mr

Rider may also have had in mind the Homeowners Protection Act passed

by the former Christie administration. While the goal was to make

struggling borrowers more secure in their home, the Act is viewed as

having had unintended consequences.

Sir Franklyn Wilson, the Arawak Homes chairman, previously called on the

Government to "urgently review" the Act, branding it "a real disaster" for

the Bahamas' struggling mortgage market.

A well-known Progressive Liberal Party (PLP) supporter, he criticised the

Christie administration for "unnecessarily rushing" the Act into law so it

could meet a 2012 manifesto promise prior to the May 10 general

election.

He argued that it imposed overly-burdensome restrictions on what banks

and other mortgage lenders "can and cannot do" in relation to their

distressed properties, and introduced concepts and definitions that were

unworkable in practice. K P Turnquest, the Deputy Prime Minister,

subsequently said the Government would conduct just such a review.

Mr Rider, meanwhile, said RBC has made significant investments in its

digital app and point of sales (POS) technology. He added that it had to

make "hard choices" to ensure the bank can survive.

"I have been asked many times to slow down and give folks time to

adjust," said Mr Rider, who argued: "We cannot be slowing down. In fact,

we need to be speeding up." He posed the question: "Should a global

lender like RBC be committed to the Bahamas if the Bahamas is not

committed to its own success?"

Mr Rider said that without change to bring the Bahamas towards world-

class norms, it will continue to fall behind.

"Wealthy Bahamians and companies are limiting their investments in the

Bahamas at this time, given their current exposure levels, as well as setting

up financial escape routes for their families should the Bahamas continue

to deteriorate financially," he added.

"While we understand the prudence of this as a risk manager and banker,

it is a detriment to the Bahamian economy."

<< Back to news headlines >>

Gb Chamber Chief Fears More Closures Wednesday 31st January, 2018 – Tribune 242

THE Grand Bahama Chamber of Commerce's president yesterday

expressed concern that further Freeport businesses may close following

the Prime Minister's more downbeat appraisal on the Grand Lucayan sale.

Mick Holding told Tribune Business he was surprised to hear Dr Hubert

Minnis tell the nation that the sale of Freeport's 'anchor resort' property

was "far from completed", given that the Prime Minister had indicated that

the Wynn Group purchase would close by end-February 2018 barely a

month earlier.

Dr Minnis, in his televised address, only said the Grand Lucayan's sale

would close "this year", and Mr Holding was fearful that the absence of a

better-defined timetable could cause some businesses - especially those

in the Port Lucaya Marketplace and the surrounding area - to lose hope.

Pointing out that there were still 11 months to go in the year, the GB

Chamber chief said the sale and re-opening of the Grand Lucayan held

more importance for Grand Bahama's economy than the $2.56 billion

revival of the former Ginn project at West End that was much touted by

the Prime Minister. Mr Holding, though, quickly acknowledged that west

Grand Bahama "badly needed" renewed investment activity, and said

residents there would argue that developing the ex-Ginn sur mer site was

more important than the Grand Lucayan.

Arguing that the Bahamas, and Grand Bahama, should "aim for both"

projects to get going, Mr Holding said each was critical to reviving the

island's economy and reducing the unemployment rate.

"I think that probably, but I doubt it will come first, the Grand Lucayan will

have a greater impact on the general economy of Grand Bahama," he

told Tribune Business.

"There are a lot of businesses hanging in there, just waiting for the hotel to

re-open, and if something doesn't happen quite soon some of those

businesses will go under."

Mr Holding added: "It's not just the jobs in the hotel; there's a whole

infrastructure around there; restaurants, bars and retail, that depended on

the hotel for their trade. Many have closed, others are hanging on, but

may also close down."

Admitting that he was taken aback by the Prime Minister's more

downbeat assessment, he told Tribune Business: "Before Christmas I think

the statement was January/February 2018.

"This year has got 11 months to run, and that's quite a difference between

January and February. I was a little bit surprised, I must admit. I think some

of them [Port Lucaya area businesses] will hang on if there's something

positive; they'll think: 'At least there's a lifeline there'.

"I think what's going to happen, as things get tight or tighter and there's still

no deadline, some of them may go under I'm afraid. That's my concern."

Dr Minnis, in his national address, switched quickly from the Grand

Lucayan to the potential acquisition of the former Ginn project by

Toronto-based investor/developer, Skyline Investments, and its Grand

Palm Beach Acquisitions vehicle.

Mr Holding described the purchase, if it closes, as only "positive" for West

End and the wider Grand Bahama economy in terms of job creation and

increased economic activity.

"It's going to create permanent jobs out there, not only in West End, which

badly needs employment and regeneration, but also the rest of Grand

Bahama," he told Tribune Business.

"That community [West End] has suffered enormously for many years, and

was badly beaten up in Hurricane Matthew. This will certainly help the

economy out there."

Mr Holding also expressed hope that Skyline would invest as heavily in the

West End community as Ginn has done.

Skyline Investments, which is listed on the Tel Aviv Stock Exchange,

describes itself on its website as having $500 million in assets. It specialises

in real estate investment and development related to the hotel/resort

industry.

It describes itself as "sourcing new acquisition opportunities to grow and

diversify its cash flow in North America", with an emphasis on

geographical diversification.

Current properties include the Hyatt Regency at The Arcade in Cleveland;

the Renaissance Cleveland Hotel; Bear Valley Ski Resort in California, plus

a variety of mixed-use resort developments throughout Canada.

Dr Minnis, unveiling the group's plans, said: "Grand Beach Acquisitions will

construct, repair, revitalise, develop and operate 246 rooms in three

hotels; a banquet facility; 116 branded hotel residences; 1,000 other

residences; a hotel/casino site; approximately 150,000 square feet of

shops and restaurants; a spa and wellness retreat; two marinas; an 18-hole

golf course including driving range; an IFR-rated airport; a resort hospitality

training academy; and an organic farm.

"Grand Palm Beach Acquisitions intends to repair, revitalise and develop

the property, to be known as 'Bahama Bay', in nine phases over a 10-year

period with a projected expenditure of $2.56 billion."

<< Back to news headlines >>

Government provides update on investment projects for the South Wednesday 31st January, 2018 – St. Lucia News

The south of the island is earmarked for several major projects which have

already commenced or will commence in 2018.

Prime Minister and Minister for Finance, Economic Growth, Job Creation,

External Affairs and the Public Service Honourable Allen Chastanet

updated the nation on the developments during a press briefing on

Tuesday at the Finance Administrative Centre.

Among the anticipated investment projects discussed were the Fairmont

for Sabwisha, Choiseul, the Ritz Carlton for Black Bay, Vieux Fort, the

Canelles Project and the Desert Star Holdings “Pearl of the Caribbean”

project also for Vieux Fort.

The Prime Minister recently returned from a trip to Miami, Florida, where he

and a team of ministers – Minister for Infrastructure, Ports, Energy and

Labour Honourable Stephenson King, Minister for Equity, Social Justice and

Empowerment Honourable Lenard Montoute and Minister with

responsibility for Investment Honourable Bradly Felix – held meetings with

cruise lines on the southern cruise ship terminal.

“While we were in Miami we had several meetings and the first of which

was with two major cruise industry partners, Royal Caribbean and

Carnival,” explained the Prime Minister. “This was specifically in relation to

the Il Pirata site where we want to proceed with reclaiming land in that

area to build a cruise ship terminal, a hotel park, as well as a major

marina. We have been working with the cruise lines in order to make sure

we are meeting their standards and so we have now entered discussions

to formally bring them into the project.”

The Prime Minister was also pleased to speak of the recommencement of

the Horse Racing track in Vieux Fort which forms part of the DSH project.

He explained that during the Miami visit meetings were also held with Gulf

Stream Park, a racetrack and casino in Hallandale Beach, Florida, which is

one of the most important venues for horse racing the United States. He

explained that Saint Lucia’s racetrack will have some of the same design

elements.

“It is not just about horse racing, it is about developing a village around

that facility. So those meetings went extremely well. Thankfully, work has

recommenced on our horse racing track,” he noted, while adding that a

land dispute which had caused the hiatus had been settled.

DSH Chairman Teo Ah Khing was also on hand at the press briefing to

show and explain the design for the race track as well as the design for

the cruise terminal. With the target date for the track being October this

means Saint Lucia could see our first major world class horse racing event

in 2018.

“This track is a world class standard track,” stated the DSH Chairman. “It is

going to hold not just races for local horses and horsemen, there will be a

place for international persons to bring their horses here for racing at the

same time, to have good horses, award-winning horses come and race

here. This will improve tourism and sports.”

Mr. Ah Khing spoke about the far reaching benefits of the race track in

terms of international media coverage and linkage industries.

The press also got the opportunity to see designs for the port facility in the

south which the Prime Minister explained is long overdue.

“The port in the south allows constituencies that have not been able to

participate in cruise tourism to develop their attractions because we have

so many attractions in our southern communities,” stated the Prime

Minister, who also specifically spoke about the benefits of the terminal to

taxi drivers in the south who depend heavily on getting business only from

the airport.

The Prime Minister explained that there are currently Environment Impact

Assessments and sensitivity studies being done on the area.

In terms of more upcoming projects for the south, the Prime Minister stated

that equipment has been arriving for the Sabwisha project and it is

carded to start early March. The Government is also finalizing

arrangements for the Ritz Carlton and an announcement on Canelles will

be made soon by the developers. The Prime Minister also explained that

he will make an announcement shortly regarding the redevelopment of

the Hewanorra International Airport.

<< Back to news headlines >>

Minister Grant lauds Development Bank for spreading the national

economic pie Wednesday 31st January, 2018 – SKN Vibes

When the Verchilds High School held its 25th anniversary dinner on

Saturday evening December 16 last year, the organising committee did

not have to look far for a venue. From a business standpoint their locality

had come of age, as the event that catered for nearly 200 persons was

held in Old Road.

If the anniversary dinner were to have been held in November last year,

just a few days earlier, its most likely venue would have been in Basseterre.

One person who knows why that would have been so, is the Area

Parliamentary Representative, the Hon Lindsay Grant who is also the

Federal Minister of Tourism, International Trade, Industry, and Commerce.

“It is good to see that the Development Bank (of St. Kitts and Nevis) is

reaching out into the rural communities empowering young

entrepreneurs,” said the Hon Grant who had attended the dinner as the

Area Parliamentary Representative. The dinner was held at the Railway

Bar and Grill in Old Road.

He went on to explain why he had mentioned the Development Bank of

St. Kitts and Nevis (DBSKN): “A case in point is the Railway Bar and Grill

right here in Old Road. It is a magnificent edifice and where persons from

within the community - we have Old Road, Half Way Tree, Challengers

etc. - could host functions in a building, and in an area that can match

anywhere in Basseterre.”

The Verchilds High School’s anniversary dinner was the first event

attracting over 100 persons at the Railway Bar and Grill, a new business

venture that is owned and operated by a young entrepreneur, Ms Arlene

Fyfield, who was empowered by the Development Bank of St. Kitts and

Nevis (DBSKN) through its business loans programme.

“I think it (Development Bank) gives the persons in the rural communities

an opportunity to have functions in an area where they are from, rather

than having to journey to Basseterre, and still knowing that the pleasantly

is still here,” observed the Hon Grant. “The ambience of their surrounding

and the service is fantastic.”

He concluded by saying: “It augurs well for St. Kitts and Nevis, and it is

good because it is the same thing we teach in tourism that tourism is not

just for Basseterre but it is for rural communities, and we have to engage

rural communities to make sure that the national pie is spread around.”

The Railway Bar and Grill is located in the Wingfield Estate, Old Road,

which is best known for its tourism related businesses. It is next to the

discarded sugar train railway line and shed, and hence the name Railway

Bar and Grill. The owner, Ms Arlene Fyfield, has been in the hospitality and

catering business since 2008.

She had started with a small wooden structure in the same area in 2008,

where she sold chicken and chips, water, sodas and other snacks

catering to the locals and even tourists who she says loved her chicken.

But with the encouragement of her daughter Ms Arnisha Agard she was

able to think of expanding her business.

After they would have started construction of the new buildings to house

the expanded business, Ms Fyfield’s boyfriend, Mr Keithroy Dyer who is a

contractor, encouraged her to approach the Development Bank of St.

Kitts and Nevis for funding to allow for a smooth expansion. This was done

and the bank responded positively and the business opened its doors on

Sunday December 3 last year.

According to Mrs Kimmoy O’Loughlin-Burroughs, Assistant Manager,

Business Support Unit at the Development Bank of St. Kitts and Nevis

(DBSKN), the bank is open to financing to anyone whether they are in

urban or rural areas as long as the business idea fits the area/location and

that it is a viable business idea.

“At the Development Bank everyone has an equal opportunity in terms of

location or geography,” said Mrs O’Loughlin-Burroughs. “Ms Fyfield had

been in the business for quite some time and would have gained enough

experience to run a bigger operation. While she is keen to continue doing

business with the local people, part of her target market is the tourists who

come to the area.”

The bank official concluded: “Location-wise, the Railway Bar and Grill is in

a good position for Ms Fyfield to reach her target market.”

<< Back to news headlines >>

Brothers Investment Group International» wants to invest in the country Wednesday 31st January, 2018 – Haiti Libre

Saturday at the Sinai Temple in Hollywood, Florida, the "Brothers

Investment Group International, LLC" a private community development

company, dedicated to improving Haitian-American communities,

composed of 200 members of the Haitian Millionaires Club, had gathered

for its first Haitian Millennium Gala more than 1,000 participants.

In the presence of Stéphanie Auguste, the Minister of Haitians Living

Abroad, Carmel André Béliard, Minister of Agriculture, several business

owners, leaders of the Haitian Community in Florida, the Group of Haitian

investors from the diaspora has proposed a set of commitments and

actions initiated by the Group to rebuild Haiti.

Brothers Investment Group International, LLC would have already

obtained the licenses for the launch of its own commercial bank "Brothers

Capital Bank and Trust" to the exclusive service of the Haitian interests.

According to Anson Jean-Pierre, the President of Brothers Investment

Group International, the value of the Group would be approximately $3.5

billion and the Group wishes to mobilize a capital of $ 10 billion over the

long term to invest, among other things, in the banking, energy, real

estate and education.

Several investments in Haiti are envisaged including :

A project of solar energy production;

An ecological real estate development project on the Côte des Arcadins

An organic and organic agricultural production project for domestic

consumption and export to the United States in particular.

<< Back to news headlines >>

US overtakes Cayman Islands in financial secrecy index Wednesday 31st January, 2018 – Caribbean News Now

The United States has pushed the Cayman Islands into third place in the

global financial secrecy charts from the Tax Justice Network. The US is now

listed as the second largest tax haven in the world, behind Switzerland.

The TJN’s 2018 Financial Secrecy Index (FSI), produced in partnership with

Transparency International and the Financial Accountability and

Corporate Transparency (FACT) Coalition, launched the report in

Washington on Tuesday, when Gary Kalman, the executive director of

FACT, said the US ranking and lack of leadership was enabling the global

tax haven industry.

The authors of the report continue to campaign against secrecy in global

finance because they say it facilitates financial crime, money laundering,

corruption and tax evasion.

“Jurisdictions who fail to contain it deny citizens elsewhere their human

rights and exacerbate global inequality,” the TJN said in a release.

Analyzing each of the countries on its list in the 2018 report, the TJN

acknowledged in its assessment of the Cayman Islands that there had

been some changes and said that the jurisdiction had responded in a

mixed fashion to the global initiatives that have emerged to tackle the

problem of international financial secrecy.

The Cayman Islands remains in the top three, the TJN said, because of the

scale of onshore operations and the persistent levels of secrecy. But the

report acknowledged that Cayman was one of “relatively few classic tax

havens to opt for the ‘automatic information exchange’ in Europe”,

though the TJN criticised that deal as “very narrowly focused and full of

loopholes” that had hardly impacted offshore business here.

The country report also gave credit to Cayman for being one of the first

countries to sign on for the common reporting standard, which will begin

to take effect here this year, acknowledged the repeal and replacement

of the Confidential Relationships (Preservation) Law.

However, it still criticised the jurisdiction and even noted the drama

surrounding local newspaper editor David Legge fleeing from Cayman in

June 2015 after Premier Alden McLaughlin accused him of treason over

an editorial about petty local corruption.

The TJN remains a staunch critic of Cayman and other financial offshore

centres, but this particular report and its surrounding messages are firmly

aimed at the US. For many years the Cayman Islands has pointed to

America as a jurisdiction with far less regulation and controls that this

jurisdiction, and now it seems the TJN and Cayman at least agree on one

thing.

<< Back to news headlines >>

Eastern Caribbean-Southeast Asia Economic and Cultural Chamber

appoints business envoy to Middle East and Pakistan Wednesday 31st January, 2018 – Caribbean News Now

Dr Hussain Farooq, president of HF Corporation, a citizenship and

investment advisory firm, has been appointed as the official business

envoy to Middle East and Pakistan by the Eastern Caribbean-Southeast

Asia Economic and Cultural Chamber.

The Eastern Caribbean-Southeast Asia Economic and Cultural Chamber is

a member of the SIDS Global Business Network administered by the United

Nations Office of the High Representative for the Least Developed

Countries, Landlocked Developing Countries and Small Island Developing

States (UNOHRLLS) and an official participant to the United Nations Global

Compact.

Matthew Pajares Yngson, the hon. executive director and envoy for

diplomatic affairs of the Chamber said: “As a non-governmental

organization part of the SIDS Global Business Network, a program

administered by the UNOHRLLS, the Chamber realizes the importance of

networking with other regions outside our main areas of proficiency.

Dr Farooq is respected and well-connected in both Pakistan and the

Middle East and, as a forward-thinking organization, it is our belief that

connecting the Eastern Caribbean to these important growth regions is

vital in reaching our long-term mandate.

“There are numerous synergies that can be realized when connecting the

Eastern Caribbean to the rest of the world. Though we aim to be the main

conduit between the Eastern Caribbean and Southeast Asia, we must

also understand the potential of other regions in the world that may also

be of great benefit to our stakeholders in the Eastern Caribbean.

“The business and regional experience that Dr Farooq brings to the

Chamber will contribute greatly not only to the success of the

organization, but more importantly to the Eastern Caribbean states that

are still recovering from the devastation brought about by the recent

hurricanes.

“We thank Dr Farooq for his acceptance in this important role and know

very well that he will be a strong asset in our inter-regional organization.”

In expressing his gratitude to the Chamber, Farooq said: “I feel honoured

to be given this opportunity by the Eastern Caribbean-Southeast Asia

Economic and Cultural Chamber — to act as a business envoy for the

Chamber in the Middle East and Pakistan — and feel very optimistic and

enthusiastic about the potential that exists for collaboration between

these regions.

“The Eastern Caribbean is a region full of opportunities, resources and has

a lot of horizons waiting to be explored; and we intend to bridge the gap

between the Eastern Caribbean nations, and the Middle East and

Pakistan.

“Pakistan and West Indies go a long way with cricket being a major

joining force. We, now, need to work on the advancement of this

relationship for the benefit of these nations.

“The Middle East region is also getting more informed about the potential

of the Eastern Caribbean region. The number of passengers travelling from

the Middle East to the Caribbean is increasing, and through tourism

comes awareness.

“The Eastern Caribbean states have a lot to offer — be it agribusiness or

cruise tourism, business processing outsourcing or sustainable resort

development; and through proper representation of these opportunities in

the Middle Eastern countries and Pakistan, we can help in bringing more

tourists, and hence investors, to the Eastern Caribbean region.

“Nutmeg, for example, is a widely used product in Pakistan and the

Middle East — with Pakistan and the United Arab Emirates importing a

major portion, according to one estimate, from Guatemala. This could be

just one potential area, among many, for Grenada to explore.

“A pro-business environment, English-speaking workforce and presence of

bilateral treaties with different countries make the Caribbean region

conducive to investment. Investors in the Southeast Asia are also realizing

the potential of the Caribbean markets.

“We also aim to strengthen the relationship between the governments of

these countries in areas such as global warming and climate change —

considering the important role this is playing in our everyday lives — and

we intend to provide a platform for public-private dialogue in such

important areas.

“Intelligent partnerships, and tapping into the untapped potential, are the

way forward in this era of globalization and through this alliance; the

potential opportunities that exist for multilateral collaboration in trade and

investment between these regions can be capitalized on.”

<< Back to news headlines >>

South Korea complains to U.S. about tariffs on washing machines, solar

panels Thursday 1st February, 2018 – Reuters

South Korean trade representatives have made a strong complaint to the

United States about the “unfairness” of its safeguard measures against

imported washing machines and solar panels, the Asian nation’s trade

minister said on Thursday.

Last week, U.S. President Donald Trump imposed a steep tariff on imported

washing machines and solar panels in a move to protect American

manufacturers, sparking criticism from China and South Korea.

South Korea and the United States began talks in January to revise a two-

way trade pact that took effect in 2012, as Trump has been vocal about

scrapping the deal to tackle trade imbalances, particularly with U.S.

automakers.

South Korean Trade Minister Kim Hyun-chong said the talks were far from

complete, but both sides were hopeful of wrapping up the negotiations.

“We had heated negotiations... We have still long way to go,” Kim told

reporters in Seoul after an hours-long second round of talks on the pact.

“The U.S. is keen on automobiles in light of reducing its trade deficit with

South Korea.”

The United States is South Korea’s second-biggest trading partner after

China.

Negotiators from both countries divided into groups to discuss specific

subjects such as anti-dumping and safeguard issues, the auto sector’s

market access and tariffs and investor-state dispute settlement, Kim

added.

In response to the U.S. tariffs, South Korea’s trade ministry has vowed to

“actively respond to U.S. trade protectionism,” including making a

complaint to the World Trade Organization (WTO).

<< Back to news headlines >>

Oil rises as OPEC compliance eclipses boom in US output Thursday 1st February, 2018 – Reuters

Oil prices rose on Thursday after a survey showed OPEC’s commitment to

its supply cuts remains in place, even as U.S. production topped 10 million

barrels per day for the first time since 1970.

Brent April crude futures were up 53 cents on the day at $69.42 a barrel by

1150 GMT, while NYMEX crude for March delivery rose 42 cents to $65.15 a

barrel.

Brent crude rose by 3.3 percent in January, its strongest start to the year

for five years, in line with a broad rise in other risk-linked assets such as U.S.

equities, which hit record highs last month and marked their biggest

January increase since 1997.

With investors now pondering which of oil’s current key driving forces will

prove to be the dominant one - rising U.S. crude output, or OPEC’s

adherence to its supply cuts, the relationship with equities and even the

dollar is likely to erode.

“I don’t think it’s durable, that suddenly we see oil and the S&P attached

at the hip. They have coincidentally done well and it’s profit-taking. But I

think their fortunes are going to diverge and this correlation won’t survive

the test of time,” London Capital Group head of research Jasper Lawler

said.

“The other factor is that big $70 level in Brent. That is pretty much the top

of the range for most forecasts out there. So again, that’s a price level

that gives some pause for thought. I don’t think we should go back to 60

but I think probably 65 seems like a logical area to ... start refocusing on

the fundamentals of the market versus general sentiment.”

Goldman Sachs raised its three-month forecast for Brent to $75 from $62

and its six-month forecast to $82.50 from $75.

Oil prices are unlikely to advance much above $70 a barrel in 2018, given

the tug of war between OPEC and the U.S. shale industry, a Reuters poll

showed on Wednesday.

U.S. crude oil production in November surpassed 10 million bpd for the first

time since 1970, and neared the all-time output record, the Energy

Information Administration said on Wednesday.

The EIA also reported the biggest increase in crude oil stocks since March

last year, a rise of 6.8 million barrels.

“As oil prices rise, higher shale output is definitely on the market’s mind,”

said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and

Consulting in Tokyo.

Output by the Organization of the Petroleum Exporting Countries (OPEC)

also rose in January from an eight-month low as higher output from

Nigeria and Saudi Arabia offset a further decline in Venezuela, a Reuters

survey found.

However, adherence by producers included in the deal to curb supply

rose to 138 percent from 137 percent in December, suggesting

commitment is not wavering even as oil prices hit their highest since 2014.

<< Back to news headlines >>

Factories start 2018 on solid footing Thursday 1st February, 2018 – Reuters

Factories across the globe got off to a strong start this year, with

manufacturing activity in most countries gaining momentum and hitting

multi-year highs.

Business surveys from Europe and Asia showed solid activity and output,

reinforcing expectations for another year of synchronized global

expansion that has propelled many world stock markets to or close to

record highs.

Last year, the euro zone economy was a surprise global star and any signs

that zip, alongside rising price pressures, has carried into this year will be

welcomed by the European Central Bank as it moves to unwind its super-

loose monetary policy.

The 19-country bloc’s booming manufacturing industry raced into 2018,

churning out goods at one of the fastest monthly paces in over 20 years in

January.

“The euro zone economy clearly has a tailwind behind it. There is nothing

on the immediate horizon which would make you think the economy is

about to run out of steam,” said Peter Dixon, global financial economist at

Commerzbank.

IHS Markit’s January final manufacturing Purchasing Managers’ Index for

the euro zone was 59.6, matching an earlier preliminary reading but

below December’s 60.6 - which was the highest since the survey began in

June 1997.

Indicating February would also be a busy month, new orders growth was

at a near record pace as was employment. Firms also built up a solid

backlog of work and were their most optimistic in at least 5-1/2 years.

Among the four biggest economies, PMIs were close to record highs in

Germany and Italy and among the best for 17 years and a decade in

France and Spain respectively.

But the biggest outlier in Europe was Britain, where manufacturing lost

more momentum than expected last month. Uncertainties over its path to

leave the European Union next year curtailed business investment,

following one of the steepest jumps in the cost of raw materials in

decades.

“The UK economy looks set to grow at half the rate of the U.S. in 2018 and

a full percentage point slower than the euro zone,” said James Knightley,

chief international economist at ING. “It should be doing much better

given the global upturn in demand and the competitive sterling

exchange rate.”

The UK factory PMI dropped to its lowest since June and the prospects for

2018 do not look bright.

Markets were little moved by the data. Focus will later turn to the United

States, where a sister survey is expected to show solid manufacturing

activity.

TECH TRADE

The strongest manufacturing readings in Asia came from tech exporters,

which continue to ride a robust semiconductor cycle driven by upgrades

in smartphones, industrial robots, cars, and more recently demand for

computing machines used to mine cryptocurrencies like bitcoin.

In Japan, the Markit/Nikkei PMI rose to a four-year high.

Taiwan’s reading rose to its highest since April 2011, while South Korean

factory activity bounced back into expansion territory as domestic and

export orders picked up.

Even in China -- where authorities are cracking down on air pollution and

excessive financial risks -- factory growth last month appeared generally

resilient, though economists agree the crackdowns will start to weigh on

activity eventually.

The private Caixin/Markit PMI was steady at 51.5, matching December’s

reading and better than economists at expected, though official data on

Wednesday suggested a slight softening as export orders faltered.

A clearer picture of China’s manufacturing activity and its actual

demand may not emerge until spring when winter smog restrictions are

lifted and construction revives.

“Overall, we expect Asian manufacturing conditions to remain healthy,

supported by robust external demand and accommodative domestic

monetary policy,” said Krystal Tan, Asia economist at Capital Economics.

RISK OF PROTECTIONISM

The outlook for Asia’s export-reliant economies, however, remains

clouded by worries about U.S. trade protectionism as the Trump

administration starts translating last year’s tough talk into action.

Washington slapped steep import tariffs on washing machines and solar

panels last week, drawing protests from Beijing and Seoul, and U.S. officials

suggest other measures are on the way.

While such steps could hurt growth, HSBC Private Banking’s head of

investment strategy for Asia Cheuk Wan Fan said there was no reason to

panic as Asian countries trade more with each other than in the past and

are less reliant on the United States.

Individual companies were therefore more at risk than the wider

economic picture.

“When we look at the risk arising from U.S. protectionism and trade in-

fighting, we adopt a bottom-up approach in identifying potential victims,”

she said. “We will avoid these companies which heavily rely on U.S. export

markets.”

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All Brexit economic forecasts were wrong, British minister says Thursday 1st February, 2018 – Reuters

Brexit minister David Davis rekindled a debate about the credibility of the

government’s own forecasts by saying on Thursday that every economic

prediction on the British economy since the EU referendum has been

wrong.

Davis made the comments in parliament after being asked about leaked

analysis, drawn up by government officials, which suggests Britain would

be worse off after Brexit under a wide range of potential scenarios.

He questioned the value of such research, saying the work is “incredibly

difficult” and that every institution that had tried it had failed.

“Every forecasting model on the performance on the British economy post

the referendum by every major organization, the banks, the government

organizations and, indeed, international organizations has proven wrong,”

Davis said.

“One of the ways it has been proven wrong is because employment in

this country has grown despite the forecasts to record levels today. We will

be seeking to do the best we can to ensure that growth record is

maintained.”

Bodies such as the International Monetary Fund and the Bank of England

have raised their forecasts from gloomy predictions made around the

time of 2016 referendum. However, Britain’s economy has

underperformed many of its peers and is likely to lag global growth this

year.

In the same debate, junior Brexit minister Steve Baker suggested

government officials may be undermining government policy by

calibrating their work to show only the downside of Brexit.

When asked by another Member of Parliament whether he had heard

claims that Treasury officials had “deliberately developed a model” to

show that leaving the EU customs union was damaging to influence

policy, Baker said he agreed.

“I‘m sorry to say that my honorable friend’s account is essentially correct,”

Baker said, adding that this was “quite extraordinary”.

British officials are legally obliged to remain impartial on policy.

The minister then quickly clarified that he had not suggested the

accusation itself was correct.

“To be absolutely clear, I’ve said it was correct that the allegation was put

to me,” Baker said. “I did not in any way seek to confirm the truth of it.”

Some of the most vocal advocates of a total separation from the EU,

known as a hard Brexit, have repeatedly suggested that the machinery of

government was biased against Brexit and working behind the scenes to

sabotage it.

<< Back to news headlines >>

German industrial workers stage second 24-hour strike Thursday 1st February, 2018 – Reuters

Industrial workers in Germany began a second day of 24-hour strikes over

pay and working hours on Thursday, affecting companies including

carmakers Volkswagen (VOWG_p.DE) and Ford (F.N).

The IG Metall union has called for full-day walkouts through Friday, firing a

last warning shot before it ballots for extended industrial action that could

be crippling to companies reliant on a supply chain of car parts and other

components.

Both the union and employers said on Thursday they were open to talks

resuming on Monday. But each is demanding more willingness from the

other to make concessions.

“There can only be an agreement if the employers improve their stance

on all three topics: pay, the right to shorter hours and aid for workers

burdened by their situation at home or at work,” IG Metall chief Joerg

Hofmann said.

Emboldened by Germany’s fastest economic growth in six years and

record low unemployment, IG Metall is demanding an 8 percent pay rise

over 27 months for 3.9 million metal and engineering workers across

Europe’s largest economy.

The union has also asked for workers to be given the right to reduce their

weekly hours to 28 from 35 to care for children, elderly or sick relatives,

and to be able to return to full time after two years.

This is IG Metall’s first major push for a change in hours since workers

staged seven weeks of strikes in 1984 to help secure a cut of the working

week to 35 from 40 hours.

Employers have offered a 6.8 percent wage increase, but rejected the

demand for shorter hours unless they can also increase workers’ hours

when necessary.

They have also dismissed the idea that they should make up some of the

pay shortfall for workers who cut their hours, saying that would mean some

being paid a higher hourly wage than others.

Around 68,000 workers at 80 companies including truckmaker MAN and

automotive supplier ZF Friedrichshafen downed their tools on Wednesday,

IG Metall said.

By Friday, that number is expected to rise to around 260 companies,

including Mercedes-Benz maker Daimler (DAIGn.DE) and Porsche

(VOWG_p.DE).

The DIW economic institute has estimated the strikes could cost

companies a total of 62 million euros ($77 million) a day in lost revenue,

assuming around 50,000 workers, or on average 200 per company, stop

working for one day each.

The employers are challenging the strikes in court and seeking damages.

Workers at Volkswagen’s headquarters in Wolfsburg and at other sites in

western Germany were staging separate strikes on Thursday after IG

Metall rejected an improved pay offer for about 120,000 staff at the

carmaker.

<< Back to news headlines >>

European shares slip at end of strong month Wednesday 31st January, 2018 – Reuters

European shares fell on Wednesday as investors locked in profits at the

end of a strong month while results from some of the region’s biggest

names also weighed.

The STOXX 600 index fell 0.2 percent on the day, ending at its lowest in

more than three weeks and suffering its third consecutive day of losses.

The pan-European benchmark, however, ended January with a 2.1

percent monthly gain as optimism over earnings and economic growth

outweighed recent bond market jitters and concerns over a rising euro.

”We’ve the impression that investors are looking for a pretext to take a

breather and lock in some of their gains.” said Andrea Tueni, head of sales

at Saxo Banque Paris.

Results were center stage on Wednesday, with investors particularly

impatient with earnings misses in this high-valuation environment.

Ericsson (ERICb.ST) sank 9.2 percent after the telecoms equipment maker

reported a deeper than expected loss and said the Chinese market

would continue to decline.

Debt collector Intrum Justitia (INTRUM.ST) tumbled by 8.9 percent after its

fourth-quarter revenue and earnings missed expectations.

Shares in fashion retailer H&M (HMb.ST) fell 10.6 percent after fourth-

quarter profit and profit margins fell and the company said it would open

far fewer stores in 2018.

It was another dark day for struggling UK outsourcer Capita (CPI.L), and a

pay day for short-sellers, with the shares down 47 percent after the

company warned on profit, announced a rights issue and suspended its

dividend.

Yet investors remained optimistic on European equities in general.

“It has been a very strong start to the year, and with that, markets can

always take a pause, but there is nothing from the earnings season so far

that would not support a continued constructive view on the market,”

said Britta Weidenbach, head of European equities at Deutsche Asset

Management.

Year to date in 2018, European equity funds have registered the strongest

inflows across all major regions, drawing in more than $22 billion, HSBC

found. Last year Europe accounted for more than a third of global equity

fund flows.

There were some bright spots among companies reporting on

Wednesday.

Electrolux (ELUXb.ST) rose 6.9 percent after the home appliance maker

reported a bigger than expected rise in fourth-quarter profit, while

Finland’s Elisa (ELISA.HE) gained 5.8 percent after its results beat

expectations.

An order boom helped truckmaker Volvo (VOLVb.ST) to raise its outlook,

driving the shares up 0.4 percent.

In an early sign of the negative impact forex could have on some

European businesses, Infineon (IFXGn.DE) shares fell 1 percent after the

chipmaker cut its revenue guidance because of the weak dollar.

“I think there will be selected companies with a potential negative impact

from the dollar, but the question is, is it a net negative and what is the

underlying story,” said Deutsche Bank’s Weidenbach.

Overall fourth-quarter earnings for the STOXX 600 are expected to

increase by 11.9 percent year on year, the latest Thomson Reuters data

showed.

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Nikkei rises for first time in 7 days, helped by softer yen, upbeat earnings Thursday 1st February, 2018 – Reuters

Japan’s Nikkei share average rose on Thursday, rebounding from a six-day

losing streak and pushing most sectors into positive territory, as a weaker

yen and upbeat corporate earnings drove the benchmark index higher.

The Nikkei rose 1.7 percent to 23,486.11 after declining for six straight

sessions.

Fujifilm Holdings jumped 12 percent after the company said it will take

over Xerox Corp in a $6.1 billion deal, combining the U.S. company into an

existing joint venture to gain scale and cut costs in the face of declining

demand for office printing.

Sumitomo Mitsui Financial Group, Japan’s second-largest bank by market

valuation, and Mizuho Financial Group, the third-largest lender, jumped

4.4 percent and 2.2 percent respectively after they both reported hefty

gains in their stock portfolios.

Hino Motors soared 8.0 percent after the truckmaker raised its full-year net

profit outlook.

On the other hand, Fujitsu Ltd dived 13 percent after its operating profit

dropped 29.3 percent for the April-December period.

The broader Topix gained 1.8 percent to 1,870.44, with 32 of its 33

subsectors rising.

<< Back to news headlines >>

Equities battle rising global bond yields to snap end-Jan losing streak Thursday 1st February, 2018- Reuters

European stocks rose on Thursday after three days of losses, although U.S.

and German bond yields near multi-year highs checked gains in world

stock markets and kept them from testing recent record highs.

Stock markets in Europe rose 0.25 percent , supported by a flurry of mostly

positive earnings results, while Japan's blue-chip stock index bounced 1.7

percent off four-week lows .N225 and MSCI's all-country equity index

.MIWD00000PUS was marginally higher.

U.S. equity futures ESc1 1YMc1 however pointed to a flat open for Wall

Street ahead of earnings announcements from tech giants Apple

(AAPL.O), Alphabet (GOOG.O) and Amazon.com (AMZN.O).

January's last trading session on Wall Street ended in the red, but U.S.

indexes still ended with monthly gains of over 5 percent .SPX. World stocks

enjoyed a record 15-month winning streak.

This week’s meeting of the U.S. Federal Reserve was more hawkish than

expected, but confirmed what markets had already expected - an

interest rate rise is likely in March, said Markus Huber, a trader at

brokerage City of London Markets.

“In light of today’s flood of earnings in Europe and the United States, the

Fed meeting will most likely have only a limited and temporary impact on

markets,” Huber predicted.

Global equity markets are torn between buoyant economic growth and

double-digit company earnings, on the one hand, and the possibility that

U.S. and euro zone central banks will tighten policy faster than expected.

The growth momentum was confirmed by manufacturing activity surveys

on Thursday that showed Asian factories getting off to a strong 2018 start

and Europe posting solid growth.

Boeing and Facebook were the latest to reinforce the solid U.S. earnings

growth picture. European markets cheered improved performance at

Unilever and Royal Dutch Shell (ULVR.L) (RDSa.L)

Huber said results from the likes of Amazon and Apple would be crucial.

“It will be essential that those companies not only deliver in regard to

earnings expectations but also show that the momentum going forward

remains strong,” he added.

Equity bullishness is being tempered, however, by rising global bond yields.

The Fed held interest rates unchanged on Wednesday but raised its

inflation outlook, no longer saying it expected price growth to stay below

2 percent. It also flagged “further gradual” rate increases.

That wording convinced many that rates could rise four times this year,

rather than three.

U.S. 10-year Treasury yields surged to near four-year highs above 2.75

percent US10YT=RR after the Fed statement, while German Bund yields on

Thursday rose to fresh two-year highs at around 0.74 percent DE10YT=RR.

Two-year U.S. yields are near decade-highs and could rise further should

jobs data due on Friday confirm sustained labor market strength.

“Long-ended U.S. yields are still rising and that’s spilling over on the

European market and (German) Bunds especially,” said Commerzbank

rates strategist Rainer Guntermann.

Pressure is building on euro zone authorities, too, to curb stimulus, with

employment at record highs and Thursday’s manufacturing surveys

confirming the bloc’s growth boom.

On currency markets, the dollar’s post-Fed bounce fizzled, pushing it

down 0.1 percent against a basket of currencies .DXY. The euro gained

0.2 percent to $1.2440, just off recent three-year highs of $1.2538.

The British pound GBP=D4 rose 0.25 percent, after a 5 percent gain in

January, its biggest monthly rise since May 2009, owing to broad dollar

weakness and expectations of a Brexit deal more favourable to the UK.

The weak dollar trend will not be changed by Fed rate rises, ING Bank

analysts predicted. Not only was policy tightening already priced in,

economic recovery elsewhere and U.S. political uncertainty suggested

“the overnight dollar strength is unlikely to transform into a trend,” they

told clients.

Oil prices LCOc1 CLc1 were higher after a survey showed OPEC’s

commitment to its supply cuts remains in place, even as U.S. production

topped 10 million barrels per day for the first time since 1970.

<< Back to news headlines >>

Sterling climbs as investors' political jitters ease Thursday 1st February, 2018 – Reuters

Sterling strengthened on Thursday, recovering from losses earlier in the

week, as concerns over Prime Minister Theresa May’s leadership eased

and expectations grew that the Bank of England to take a more hawkish

tone in its meeting next week.

Reports that May was facing a leadership challenge from members of her

own party, as well as criticism from the House of Lords, which said in a

report that her Brexit legislation plans contained “fundamental flaws”,

weighed on the currency earlier in the week.

But the pound has been recovering since Tuesday, when Bank of England

Governor Mark Carney struck an upbeat tone on the economy and said

focus was turning to inflation, which investors thought might mean interest

rate would rise faster. The central bank meets next Thursday.

“There were a couple of things in there that suggested things were more

optimistic,” said ING currency strategist Viraj Patel, in London. “He (talked

about) focus shifting back to curbing inflation, which suggested that

maybe they’re looking at a hike in 2018.”

Patel said sterling had also been able to recover because of the absence

of bad news this week.

“Domestic political noise will act as a limiter for sterling, but it won’t

actively weigh on it. Once that noise doesn’t escalate, or there’s no new

catalyst, the natural tendency is for the pound to just revert some of those

losses,” he said.

A report that showed British manufacturing lost more momentum than

expected last month, with activity falling to a seven-month low, took some

shine off sterling but was not enough to knock it into negative territory.

By 1000 GMT the pound was trading up 0.4 percent up at $1.4244, having

earlier reached $1.4275. Against the euro, it was up 0.1 percent at 87.36

pence.

The pound reached its highest levels on a trade-weighted basis since late

June 2016 in the aftermath of the Brexit vote last week. It was just a half a

percent off that high on Thursday.

Since the EU referendum, sterling is still down around 9 percent on a trade-

weighted basis, but it is up about 8 percent from a trough reached in

October 2016.

“With the currency having returned to more ‘normal’ levels recently, we

foresee a slower pace of gains for the rest of 2018, mainly against the

dollar, before the pound trade-weighted index trend appreciation re-

accelerates in 2019,” Credit Agricole strategists wrote in a note to clients.

<< Back to news headlines >>

Dollar bounce only brief despite more hawkish Fed Thursday 1st February, 2018 – Reuters

The dollar briefly clawed back some of its recent falls on Thursday after the

Federal Reserve said inflation was likely to rise this year, but with expected

monetary tightening priced in, traders are waiting to see if upcoming

data will give the greenback more than a brief respite.

The dollar, which is stuck near three year lows after its worst monthly

performance since mid-2016, rose in Asian trading before giving up those

gains.

Traders said that non-farm payroll numbers due later this week, as well as

a host of other economic indicators, will need to be strong to help push

the dollar higher.

The U.S. currency has struggled this year as expected monetary tightening

in other parts of the world, alongside stronger global economic growth,

encourage investors to put more of their money elsewhere, and

particularly back into the euro zone.

The Fed kept interest rates unchanged on Wednesday but said inflation is

likely to quicken this year, bolstering expectations borrowing costs will

continue to climb under incoming central bank chief Jerome Powell.

Against a basket of currencies, the dollar was flat on the day at 89.082. It

touched a fresh three-year low of 88.438 earlier this week.

Against the euro, the dollar also gave up its gains and was down 0.1

percent as the single currency once again pushed past $1.24 to trade at

$1.24275.

“While the kneejerk reaction has been a higher dollar, we expect the

positive effect on the dollar to fade rather soon,” ING analysts said.

“Not only is there already a fair degree of tightening priced in, but

synchronised economic recovery elsewhere and still very much present

U.S. political uncertainty...suggest that the overnight dollar strength is

unlikely to transform into a trend.”

The euro rose around 3.5 percent in January, during which it scaled a

three-year peak above $1.25, amid prospects for the European Central

Bank to begin normalising monetary policy this year.

That prospect got a boost earlier on Wednesday after last month’s

underlying euro zone inflation picked up pace.

Traders are awaiting European manufacturing survey data, as well as

comments by the European Central Bank chief economist, due later on

Thursday.

The dollar did hold on to its gains against the yen. It edged up 0.3 percent

to 109.56 yen, moving away from a four-month low of 108.28 plumbed on

Friday.

The U.S. currency lost 3.1 percent against the yen in January, weighed by

a bevy of factors including concerns about U.S. trade protectionism and

lingering speculation the Bank of Japan was gearing up to begin an exit

from its easy monetary policy.

“Dollar/yen is still in a consolidation phase,” said Tareck Horchani, head of

Asia-Pacific sales trading for Saxo Markets in Singapore, adding that the

dollar’s bounce was still looking tepid.

<< Back to news headlines >>

Japan steelmakers' profits surge; Kobe Steel reinstates forecast Thursday 1st February, 2018 – Reuters

Japanese steelmakers, led by Nippon Steel & Sumitomo Metal Corp, on

Thursday reported a surge in nine-month earnings, shrugging off an

industrial quality scandal as Kobe Steel reinstated its annual net profit

forecast.

The earnings suggest the steelmakers escaped any sustained negative

impact from the scandal kicked off when Kobe Steel in October admitted

to discovering widespread product data tampering at some of its plants,

undermining Japan’s reputation for manufacturing excellence.

Kobe Steel, Japan’s No.3 steelmaker, said it was reinstating a forecast for

its first annual profit in three years, after establishing that the tampering

had not impacted the safety of its products, which are used widely in

planes, trains and automobiles.

Kobe forecast 45 billion yen ($411 million) of profit for the year through

March and also raised its sales prediction, suggesting customers had not

abandoned the company after the scandal. Before withdrawing its

forecast in October it had expected an annual profit of 35 billion yen.

“Stronger-than-expected profits in steel and construction machineries

were behind an increase in annual forecast,” Kazuaki Kawahara, Kobe

Steel’s managing executive officer, told a news conference.

Before the scandal - which is expected to cost the company 10 billion yen

this year - clouded its outlook, Kobe Steel had posted annual net losses in

the two previous years.

In the April-December, Kobe Steel returned to a net profit of 55.8 billion

yen from a loss of 36.5 billion yen a year earlier, as higher prices in steel

products and higher sales of construction machineries more than offset an

impact from the scandal.

Kawahara said its external committee is expected to complete

investigation over its data misconduct by the end of this month.

Nippon Steel said it had a 108 percent rise in April-December recurring

profit, led by solid demand and higher prices for steel products, and

raised its full-year net profit forecast, citing higher-than-expected gains

from asset sales.

Japanese steelmakers are enjoying the best market conditions in at least

three years. Steel prices have risen on increased production by

automakers, while construction is in full swing for Tokyo’s 2020 Olympics.

Nippon Steel’s recurring profit for the nine months through Dec. 31 came

to 225.48 billion yen. Its profit forecast for the year to March 31 remained

at 300 billion yen, below a mean estimate of 328 billion yen among 13

analysts surveyed by Thomson Reuters I/B/E/S.

“Steel prices at home and abroad are on the rise to reflect solid

demand,” said Toshiharu Sakae, Nippon Steel’s executive vice president.

“But we are concerned about (the) raw materials market, especially for

higher coking coal prices, and other materials such as zinc and

manganese which are becoming an extra cost burden of over 50 billion

yen,” he said.

JFE Holdings Inc, Japan’s second-biggest steelmaker, said its recurring

profit for the nine months through December nearly quadrupled to 170.44

billion yen.

It raised its full-year profit estimate by 10 percent to 220 billion yen thanks

to an appraisal of gains on its raw materials inventory amid higher prices

for coking coal and iron ore.

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