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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

TCL leads with shares valued $169,447.35

Overall Market activity resulted from trading in 15 securities of which five

advanced, two declined and eight traded firm.

Protesting TCL workers demand meeting

Protesting workers of Trinidad Cement Ltd stormed the company’s Claxton

Bay head office yesterday demanding a meeting with the management

who failed to show up at a meeting on Monday.

THRTA boss: Carnival occupancy solid, but sector issues still loom

Chief executive officer of the Trinidad Hotels, Restaurants and Tourism

Association (THRTA) Brian Frontin said from the Port-of-Spain hotels which

the association polled, the larger properties reported occupancy rates of

between 90 and 100 per cent.

Angostura’s Solera opens in San Fernando

A complete one-stop outlet which offers the sophisticated wine and spirits

consumers a specialised shopping experience, supported by a very

knowledgeable staff.

Barbados

Estimates laid in Parliament

Government’s Budget, setting out the Estimates of Expenditure and

Revenue for the financial year 2018-2019, was today laid in Parliament,

together with a projected forecast for the current financial year 2017-

2018, and the Barbados Sustainable Recovery Programme (BSRP). These

will form the basis of the Parliamentary Debate to ensue from February 12

to 16, 2018, on the Appropriation Bill.

Jamaica

Gas prices down $0.54, diesel down $1.56

Motorists should see a decrease at the pumps in the price of gasoline and

diesel, effective Thursday, February 8, according to the latest ex-refinery

costs from Petrojam.

Jamaica continued

EOJ submits $41-m budget for upcoming by-elections

The Electoral Office of Jamaica (EOJ) says it has submitted a $41-million

budget to the Government for conducting the March 5 by-elections for

both the parliamentary seat of St Andrew North West and the Kingston

and St Andrew Municipal Corporation division of Norman Gardens.

Guyana

ExxonMobil contract can be renegotiated –says Granger’s advisor on

Petroleum

Zero taxes, 2% royalty not international norm

The Bahamas

Bridge Authority's $9.4m Bond Repayment Deficit

The Paradise Island Bridge Authority requires $3.5 million in 'emergency'

annual funding over a five-year period to cover a $9.4 million "deficiency"

in its bond repayment fund.

Governor Urges 'New Ways' For Unlocking $1.8bn Liquidity Pile

THE Central Bank's governor has called for the development of "new

private sector mechanisms" to put the banking system's $1.8 billion surplus

liquidity to more productive use.John Rolle, addressing the regulator's

Monday exchange control seminar, said Bahamian companies could be

"underweighting" the potential returns on capital if they made productive

investments in this nation before looking overseas.

St. Lucia

Saint Lucia named one of the “up and coming package holiday

destinations for 2018”

Results are in with the latest travel industry research on package holidays,

with tighter holidaymaker budgets being turned towards a wider range of

destinations.

St. Kitts and Nevis

IMF delegation meets with Nevis’ Ministry of Finance

A team of delegates from the International Monetary Fund (IMF) met with

Premier Hon. Mark Brantley and the Ministry of Finance to engage in

discussions and to render advice on the fiscal prudence of the Nevis

Island Administration.

Ritz-Carlton Hotel brand coming to St. Kitts is another sign of confidence in

the economy

As a result of the diligent work by the Team Unity-led Government, St. Kitts

and Nevis is poised to witness the commencement of construction on

three new hotel developments in the Federation in 2018, which would

add to the already impressive list of luxury brand establishments already

operating here.

British Virgin Islands

‘Cost of construction increasing rapidly’

As the demand for construction workers continues to increase in the British

Virgin Islands, the cost for construction-related services is also increasing.

Venezuela

Venezuela presidential vote set for April 22

Venezuela's electoral council has set April 22 as the date for a

controversial presidential election, which the opposition accuses President

Nicolas Maduro of using to engineer a second term for himself.

Other Regional

Dutch government assumes direct rule over St Eustatius after allegations of

gross neglect

The Netherlands is assuming direct control of the government of St

Eustatius, part of the Kingdom of the Netherlands, state secretary for the

interior and kingdom relations Raymond Knops announced on Monday.

The decision was reportedly made based on a report from a committee

that investigated the state of the island and concluded that there is a

“gross neglect of duties” on St Eustatius.

Other Regional continued

CDB reports regional developmental gains in 2017 despite catastrophic

Atlantic hurricane season

Despite major setbacks caused by a destructive 2017 Atlantic hurricane

season, the Caribbean Development Bank (CDB) has reported a year of

several developmental gains for the region.

Winair announces direct service to Curacao, Santo Domingo and Haiti

Regional carrier Winair has announced direct service from St Maarten to

Curacao, Santo Domingo, and Haiti, commencing February 26, 2018, with

daily service to Curacao, five flights per week to Santo Domingo,

Dominican Republic, and two flights a week to Port au Prince, Haiti.

CDB predicts 2% economic growth for the C'bean in 2018

Caribbean economies are expected to register an average two per cent

growth this year following overall growth of less than one per cent in 2017,

the Barbados-based Caribbean Development Bank (CDB) reported

Wednesday.

INTERNATIONAL

United States

Shares fragile, U.S. budget deal puts bonds on defensive

World stock markets remained on shaky ground on Thursday as U.S. bond

yields crept back towards four-year highs after U.S. congressional leaders

reached a two-year budget deal to raise government spending by almost

$300 billion.

Oil slides as U.S. output soars and North Sea crude flows restart

Oil prices hit their lowest in six weeks on Thursday after data showed U.S.

crude output had reached record highs and the North Sea’s largest

crude pipeline reopened following an outage.

Futures slip, investors take stock after volatile week

U.S. stock index futures edged lower on Thursday as investors took stock of

a heavy round of corporate results after the most volatile week of trading

in more than two-and-a-half years.

United Kingdom

Bank of England sees rates rising sooner and higher as UK boosted by

global growth

The Bank of England said on Thursday interest rates probably need to rise

sooner and by a bit more than it thought three months ago, after it raised

its growth forecasts for Britain due to the strong global recovery.

Sterling jumps after central bank sees rates rising sooner; stocks slip

Sterling jumped and stocks hit session lows on Thursday after the Bank of

England said interest rates probably needed to rise sooner and by a bit

more than it thought three months ago.

Europe

Euro zone's broad expansion to continue: ECB

Euro zone economic growth is likely to continue unabated, the European

Central Bank said in a regular economic bulletin on Thursday, which is

largely consistent with the outlook unveiled after the January policy

meeting.

Virtual currencies may stay even if bubble is already deflating: ECB

The market bubble of virtual currencies is already deflating but central

banks should still pay attention as the innovation may be here to stay

even if early market leaders die out, European Central Bank board

member Yves Mersch said on Thursday.

M&A, banks brighten lackluster European stock markets

A European recovery rally dissipated on Thursday with benchmarks across

the region weighed down by commodities and technology stocks, while

acquisition approaches sent Danish telecoms group TDC and Swiss insurer

Swiss Re flying.

Japan

Nikkei rises as investors chase bargains; automakers, drugmakers lead

Japan’s Nikkei share average rose on Thursday as buyers looked for

bargains on shares which were beaten down heavily early in the week.

Bridge Authority's $9.4m Bond Repayment Deficit Wednesday 7th February, 2018 – Tribune 242

The Paradise Island Bridge Authority requires $3.5 million in 'emergency'

annual funding over a five-year period to cover a $9.4 million "deficiency"

in its bond repayment fund.

The Authority's 2016 financial statements, tabled recently in the House of

Assembly, reveal that the 'sinking fund' created to finance repayment of

its $29 million bond debt contained just 45 per cent of what management

felt it should have accumulated. "The sinking fund was established

voluntarily by the Authority to reserve funds periodically to assist in retiring

the bonds as they mature," the financial statements said. "On December

31, 2016, the Authority had $29 million in bonds payable and $7.65 million

in the sinking fund.

"However, according to management's calculations, the estimated

amount that should have accumulated in the sinking fund at the balance

sheet date was $17.026 million. As a result, management recognises that

there is a deficiency of $9.376 million ($17.026 million versus $7.65 million)."

The Authority's bonds are divided into four tranches, with the first $7 million

in principal due for repayment next year on March 24, 2019. The 'sinking

fund' had barely enough funds to cover this repayment at year-end 2016,

although further injections should have been made in 2017 to boost it

further.

There is nothing to suggest that the Bridge Authority is in danger of

defaulting on its first $7 million long-term bond repayment, but the

financial statements laid out a plan to immediately correct the

deficiency.

This involved injecting $3.495 million in 'emergency' funding into the

'sinking fund', in addition to the Authority's regular $3.009 million annual

contribution, every year for a five-year period through to 2021.

The Authority's projections thus call for a total $32.5 million contribution

over that period, with the net injection amounting to $25.5 million as a

result of 2019's $7 million principal payout.

The financials define the 'emergency funding' as "the amount calculated

to be funded annually for the next five years to prepare for the bond

maturity when due". However, there is no mention of how this multi-million

dollar sum will be obtained.

The two obvious sources are an increase in Paradise Island bridge tolls,

which will have implications for the tourism industry, and impact frequent

users such as taxi drivers, tour operators and the employees of resorts such

as Atlantis, the Four Seasons Ocean Club, Warwick, RIU and a host of

other workers on the islands.

The other is the Bahamian taxpayer, via the Public Treasury, although it is

unclear whether the former Christie administration - or its successor - have

yet acted on the 'emergency' funding plan.

Given that the Authority's total income for the 2016 calendar year was

$2.75 million, and total revenue some $7.733 million, it appears unlikely

that it can fund the 'emergency' financing alone without a substantial toll

increase or government support.

The Authority's financial projections placed the present value of

combined principal and interest payments on its bonds at $70.759 million.

It derived the $17.026 million that should have accumulated in the 'sinking

fund' by subtracting 'paid interest' of $25.198 million from a "theoretical"

sinking fund balance of $42.223 million.

Elsewhere, the Authority's financial statements note that it has an unpaid

$97,920 Value-Added Tax (VAT) bill due to the Government on the

revenues collected from its bridge tolls dating back to 2015. This is due to

be repaid when there is "resolution", but was still on the balance sheet at

year-end 2016.

The Authority also earned $71,500, a 24.7 per cent decrease from the prior

year's $94,900, from various lease and concession agreements. These

included the light pole and tollbooth plaza advertising concessions with

Hillside Investments Company and MF International, respectively, plus

leases with Cable Bahamas and Paradise Island Marina Development.

<< Back to news headlines >>

Governor Urges 'New Ways' For Unlocking $1.8bn Liquidity Pile Wednesday 7th February, 2018 – Tribune 242

THE Central Bank's governor has called for the development of "new

private sector mechanisms" to put the banking system's $1.8 billion surplus

liquidity to more productive use.John Rolle, addressing the regulator's

Monday exchange control seminar, said Bahamian companies could be

"underweighting" the potential returns on capital if they made productive

investments in this nation before looking overseas."This point should not be

downplayed given already significant liquid resources that lay idle in local

banks," Mr Rolle said. "These resources and others are in need of greater

deployment in the enterprise sector. New private sector mechanisms

ought to be developed to deploy these resources."

He did not explain what these "mechanisms" should look like, but was

clearly referring to the $1.8 billion in excess liquidity that continues to build

in the commercial banking system, depressing deposit rates and

penalising savers.

The Central Bank's December economic developments report suggested

it was exploring ways to achieve "a soft landing" in terms of reducing these

surplus assets, which were further bolstered by some of the proceeds from

the Government's recent $750 million foreign currency bond.

This move was backed by one of Mr Rolle's predecessors as governor,

James Smith, who suggested that the Central Bank "revisit" restrictions on

Bahamian dollar lending to non-residents as a way to "grease" the

economy and release the excess liquidity.

"That's a real, I think, problem for economic growth that is seemingly not

getting the attention it deserves," Mr Smith told Tribune Business on

Monday, adding that attention typically focused on other fiscal and

monetary indicators, government and private sector spending and

unemployment.

"Underneath all of that is the Government and private sector have to

have continued access to funding, and the banking sector - which holds

all the savings in the country - has been bitten by the recession and is

reluctant to lend at the pace of a decade ago," the 2002-2007 finance

minister said.

"They're only targeting 'A' class customers who are over-qualified,

meaning they are sluggish and reluctant to lend.... Now you have the

productive sector; small, medium and large businesses, who are probably

not getting the overdraft facilities to expand and create jobs."

Excess liquidity in the Bahamian commercial banking system represents

assets that are available for lending purposes, but for which the banks

can find no borrowers who meet their qualifying criteria.

The banks' reduced risk appetite following the 2008-2009 recession, and

aversion to lending to anyone other than those able to provide 100 per

cent collateral or meet their strict approval conditions, has resulted in the

Bahamian economy's productive sector - the mortgage market and

business community - being starved of debt capital financing.

Meanwhile, focusing on exchange control liberalisation, Mr Rolle said the

Bahamas had yet to develop a 'national consensus' on what the final

goals should be and what it wanted the economy to look like.

Emphasising that any relaxation will be gradual, and conducted in a

phased, structured manner, the Governor said: "It should be stressed that

the Bahamas is not presently in the position to make a large leap to more

liberalised, unfiltered financial flows, such that the stability of our

exchange rate would be preserved.

"This is especially so considering the very liquid nature of flows to which

some stakeholder groups aspire. Preparation is still required to strengthen

our institutional capacity to function in a transformed environment, and to

improve the structural health of the economy.

"Some of our important stakeholder groups do not yet fully acknowledge

the trade-offs that could be involved between the extent of liberalisation

introduced, and difficulty it would pose to preserve the fixed exchange

rate."

<< Back to news headlines >>

Saint Lucia named one of the “up and coming package holiday

destinations for 2018” Wednesday 7th February, 2018 – St. Lucia News

Results are in with the latest travel industry research on package holidays,

with tighter holidaymaker budgets being turned towards a wider range of

destinations.

2017 was a strong year for the holiday market, with ABTA Travel Trends

2018 reporting that more people have taken a holiday this year than in

any point in the last five years. It doesn’t look like 2018 will be any

exception, with more and more Brits planning a holiday ahead of the

finalisation of Brexit in 2019.

While Europe is as popular as ever for a package holiday break, several

other notable global destinations are also growing in popularity in 2018.

Montenegro

Montenegro’s charming medieval towns and Adriatic beaches have

made it a popular spot for package holiday goers. In 2018 this idyllic

country has been made even easier to visit, owing to the introduction of

direct flights from the UK. Montenegro has a rich Catholic history and

today is home to preserved Roman remains, Orthodox churches and the

pilgrimage site at Ostrog Monastery. Since Montenegro’s independence

in 2006 it has seen a 75% increase in search interest, yet even with its

heritage and architecture drawing ever more crowds, it’s remained

something of a hidden treasure until this year. Ian Crawford,

representative for travel retailer Holiday Hypermarket commented,

“We’ve seen a growing interest in an increasingly wider range of

destinations, as holidaymakers look for somewhere that has both cultural

appeal and offers something different – and Montenegro certainly does

that. Popular TV shows like Game of Thrones have brought it to the

spotlight in recent years, and with direct flights available to get you there

in under 3 hours, the appeal is massive.”

St. Lucia

The eastern Caribbean island of St. Lucia is home to dramatic volcanoes,

tropical forests, botanical gardens, banana plantations and pure white

sand beaches. Not only has St. Lucia found fame as a honeymoon

getaway, it’s also a prized package holiday location thanks to its festivals.

The Soleil Summer Festival in May starts off the holiday season with food,

rum, jazz and soul music. St. Lucia’s Carnvial, celebrated in June and July,

is the highlight of the 2018 season, with colourful parades and costumes,

dancing in the streets and an array of drums, feathers and beads.

British Columbia

Listed by ABTA as one of its 12 top destinations to watch for 2018, the

Canadian province of British Columbia is as diverse as it is vast. It appeals

to holidaymakers thanks to its snow-topped mountains, rivers and

waterfalls, alongside golden beaches and lively cities with towering

skyscrapers. British Columbia’s coastline is almost 26,000 kilometres long,

and its main city of Vancouver has been named one of the world’s best

places to live.

Turkey

Turkey has had a few challenging years, but 2018 looks like it will be back

on top as one of the most searched for package holiday destinations.

According to ABTA research data, Turkey has already seen a 69% booking

increase for summer 2018. Turkey is known as a destination for every

holiday-goer, with vibrant markets, world-class resorts, attractive beaches

and well preserved Greco-Roman cities. Vegetarians and vegans are well

catered for on Turkish holidays, as the menus here tend to be of a healthy

Mediterranean diet, without meats or dairy products.

Malta

2018 is a big year for the island of Malta, as its historic capital Valletta has

been awarded the European Capital of Culture status. This popular city

will play host to a range of events including the Malta Jazz festival in July

and the International Arts Festival throughout the summer. Scuba divers

are also seeing the appeal of Malta in 2018, as the island’s diving sites

have been ranked as some of the best in the world.

<< Back to news headlines >>

IMF delegation meets with Nevis’ Ministry of Finance Wednesday 7th February, 2018 – SKN Vibes

A team of delegates from the International Monetary Fund (IMF) met with

Premier Hon. Mark Brantley and the Ministry of Finance to engage in

discussions and to render advice on the fiscal prudence of the Nevis

Island Administration.

The meeting, part of a technical assistance mission, took place on

February 02, 2018 at the Premier’s Office at the Social Security building at

Pinney’s. Mr. Colin Dore, Permanent Secretary in the Ministry of Finance

and Mrs. Joan Browne, Principal Assistant in the Ministry of Finance were

also present.

Premier Brantley thanked the delegation who was in St. Kitts and Nevis on

a specially-requested visit. He also thanked the IMF for its financial

assistance over the years to the Federation of St. Kitts and Nevis, and

individually, Nevis.

In opening remarks, Premier Brantley briefly spoke to the challenge of

pinpointing Nevis’ contribution on a Federal level.

“We have had and continue to have to have discussions internally

because, of course, part of the difficulty we’ve had is in terms of

measuring Nevis’ position, vis-à-vis the overall Federal position, and

certainly we hope that working with our technocrats here at the Ministry

of Finance and with the IMF, that we ultimately can get to a position

where we can have perhaps a more adequate measure as to where

Nevis, as an island, stands in relation to the overall formulation of GDP and

the like for the country as a whole,” he said.

This would influence discussions at the Federal level so as to calculate and

potentially implement legislature that would govern the establishment of

accounts that should be appropriated for circumstances such as in the

event of natural disasters.

In brief remarks, Mr. Matt Davies, Division Chief of the Resource

Management Division of the Fiscal Affairs Department at the IMF, said the

team will deliver a report to the Prime Minister of St. Kitts and Nevis Dr. Hon.

Timothy Harris with some recommendations provided to the government

for comments.

He said the Prime Minister had requested the team advise the Federal

government in two areas: how St. Kitts can develop its budgeting and

fiscal management systems to ensure fiscal sobriety and; how the benefits

of sobriety, over recent years, aided by the citizenship by investment

revenues, can be put aside and used only for really special circumstances

so that the savings of the nation is available for future generations.

“In that idea is particularly how they can be put aside to make sure that

St. Kitts and Nevis can deal with the consequences of natural disasters

which are unpredictable by their very name… The Prime Minister talked

about this in the budget speech as a ‘Growth and Resilience Fund’ so our

job is to think about how that fund could be established in relation to the

budgets.

“For Nevis, we want to really get a sense of what the main budgetary

issues are, where the opportunity and constraints you see might come

from if the government opted to enforce the sobriety and to understand

a little bit more about whether there are any differences both budgetary

and vulnerability to natural disasters in Nevis or St. Kitts. Make sure we

understand your perspectives so that we can integrate it within the

recommendations,” he said.

The other members of the IMF delegation were Mr. Matt Crooke,

Economist and Consultant; Takuji Komatsuzaki, Senior Economist at

Caribbean 1, Western Hemisphere Department; and Nicholas End,

Economist at the Department of Public Finances.

<< Back to news headlines >>

Ritz-Carlton Hotel brand coming to St. Kitts is another sign of confidence in

the economy Wednesday 7th February, 2018 – SKN Vibes

As a result of the diligent work by the Team Unity-led Government, St. Kitts

and Nevis is poised to witness the commencement of construction on

three new hotel developments in the Federation in 2018, which would

add to the already impressive list of luxury brand establishments already

operating here.

This “tremendous” news, according to Prime Minister Dr. the Honourable

Timothy Harris, is another sign of the strong confidence investors have in

the Government and economy of St. Kitts and Nevis.

Prime Minister Harris announced during his February 1 press conference

that the award-winning Ritz-Carlton Hotel Company L.L.C., part of Marriott

International, will open a Ritz-Carlton Resort in St. Kitts in 2021 on the

Southeast Peninsula.

The 125-suite resort will include 25 branded villas and residences, as well as

a luxury spa, several swimming pools and indoor and outdoor dining

facilities.

“What is important is that they tell us that the Ritz-Carlton Resort will create

over 300 new jobs when construction starts – and they expect to start later

on this year in 2018,” Prime Minister Harris said, adding that a further 250

permanent jobs will be made available once the resort is operational.

In addition to the Ritz-Carlton Resort, Dr. Harris noted that his Team Unity

Cabinet will soon announce the names of two other leading hotel brands

that have serious interest in operating in St. Kitts.

Prime Minister Harris stated, “The St. Kitts and Nevis which we have the

honour to govern and administer is a well sought after destination for

investment, education, research, work, residence and holiday.”

“Why such great confidence by discerning people in St. Kitts and Nevis?”

the prime minister asked. “The answer, in part, is that our country is being

excellently managed. Its fiscal house is in order. Property rights are being

protected and respected. Workers rights are legislatively enshrined and

stability and democracy are alive and well in St. Kitts and Nevis.”

Dr. Harris said the St. Kitts and Nevis that his Government envisages is “one

in which there is inclusive growth that benefits all in our society. It must

benefit our bar operators, our taxi men and women, our vendors at Black

Rocks, on our beaches and elsewhere.”

<< Back to news headlines >>

ExxonMobil contract can be renegotiated –says Granger’s advisor on

Petroleum Thursday 8th February, 2018 – Kaieteur News

Zero taxes, 2% royalty not international norm

Advisor to President David Granger on Petroleum, Dr. Jan Mangal,

yesterday said that the ExxonMobil production sharing agreement (PSA)

with Government can be renegotiated. He added that zero taxes and

two percent royalty in the current agreement is not the international

norm.

Delivering a presentation on the Government of Guyana’s Vision for the

Oil and Gas Sector at the University of Guyana, Dr. Mangal said that the

current contract must be compared to what obtains internationally.

Dr. Mangal is a Guyanese who has spent 18 years in the industry, 13 of

them with Chevron working on major oil and gas projects in the United

States, West Africa and Asia. He noted that contracts should always be

reviewed as new information becomes available.

“Contracts are always changed. A contract is an agreement between

two people. Both parties need to be comfortable. If one party becomes

really uncomfortable it will be changed,” Dr. Mangal pointed out.

He said that Guyana is a sovereign country and the evidence around the

world is that contracts can be renegotiated as the situation changes.

“Look at the price for natural gas…people sign contracts for natural gas

at a very high price. The price of gas has dropped internationally, people

are renegotiating those contracts. A contract is an agreement and

people need to be comfortable with it,” Dr. Mangal noted.

He stated that the question of renegotiating the contract is one that the

people of Guyana must answer.

Asked whether he agrees with the feedback so far from the public that

the contract should be renegotiated, Dr. Mangal said that the people of

Guyana are doing a great job with the information which has been

provided to the public.

“I have a view on it. I am not at the stage yet where I am sharing that

view publicly, but it is under discussion within Government,” Dr. Mangal

stated.

Dr. Mangal said that this discussion must continue. He noted that he will

be preparing a white paper on the oil and gas sector for submission to

President Granger, shortly.

According to Dr. Mangal, the focus last year was to get the ExxonMobil

contract released to the public.

Dr. Mangal expressed his happiness that the information is out there and

people are doing the analysis for themselves.

“It will take some time for people to do the analysis and for Guyanese as a

whole to decide what they want to do. Look at the tradeoffs between

sticking with things that they are or looking for another solution,” Dr.

Mangal noted.

Minister of Natural Resources, Raphael Trotman, spoke highly about being

able to increase the royalty from 1% to 2% when Guyana signed the 2016

PSA with ExxonMobil and its partners following negotiations to amend the

1999 agreement.

“Royalty when you look around is more between 10% and 20%,” Dr.

Mangal stated. He noted that in some places, the royalty is much higher

than 20%.

Another contentious issue is the zero taxation contained in the ExxonMobil

contract. Generally, taxes are applied after production oil is split between

the contractor and the Government.

“What we can do is look at what are the international norms. Tax is usually

20-30 %. In some places it is much higher than that,” Mangal noted.

He acknowledged that the production split of 50-50 is not too bad.

He cautioned that oil companies will always share the view that

renegotiating the contract will discourage investment. This, he noted,

should be considered along with the effect of Venezuela aggression.

“Guyanese need to weigh that,” Dr. Mangal stated.

<< Back to news headlines >>

Estimates laid in Parliament Tuesday 6th February, 2018 – Nation News

Government’s Budget, setting out the Estimates of Expenditure and

Revenue for the financial year 2018-2019, was today laid in Parliament,

together with a projected forecast for the current financial year 2017-

2018, and the Barbados Sustainable Recovery Programme (BSRP). These

will form the basis of the Parliamentary Debate to ensue from February 12

to 16, 2018, on the Appropriation Bill.

Revised Fiscal Balance 2017-2018

On the accrual basis Current Revenue of $3,134.8 million is expected, of

which $2 914.5 million is tax revenue and $220.3 million is non-tax revenue

and grant income. Total expenditure is projected to be $4 479.8 million, of

which $3,146.8 million is current expenditure, exclusive of amortisation,

and $361.7 million is capital expenditure. The revised negative net

operating balance of $12.1 million represents 0.1 per cent of GDP at

market prices.

On the cash basis current revenue of $2 999.8 million is expected, of which

$2 779.5 million is tax revenue and $220.3 million is non-tax revenue and

grant income. Total expenditure is projected to be $4 479.8 million, of

which $3 146.8 million is current expenditure, exclusive of amortization,

and $206.5 million is capital expenditure. The revised deficit of $353.6

million, on the IFI basis, represents 3.7 per cent of GDP at market prices.

The primary balance for the financial year 2017-2018 is estimated to be a

surplus of $410.0 million on the accrual basis and $430.2 on the cash basis.

Overview 2018-2019

It is estimated that Government’s total expenditure for the financial year

2018-2019, on the accrual basis, will be $4 526.2 million. When converted

to the cash basis, total expenditure is $4 463.3 million, a decrease of $16.5

million or 0.4 per cent from the revised figure for 2017-2018. Of the

amount approved for the 2018-2019, $3 178.1 million represents current

expenditure and $1 285.2 million represents capital expenditure and

amortisation.

Expenditure on goods and services is expected to increase by $22.0

million to $413.9 million. Current transfers are projected to decrease by

$74.0 million or 6.2per cent to $1 116.1 million.

The repayment of principal and interest on Government’s debt is

expected to account for $1.8 billion compared to the revised projection

of $1.9 billion. On the accrual basis, current revenue for the next fiscal

year is projected at $3 233.0 million. On the cash basis current revenue is

projected at $3 098.0 million, an increase of 3.3 per cent over the revised

revenue of $2 999.8 million for the financial year ending March 2018.

When amortisation of $1 044.3 million is taken into account, a deficit of

$321.0 million on the cash basis is expected, representing 3.3per cent of

GDP.

On the accrual basis the deficit is expected to be $8.5 million or 0.1per

cent of GDP. The primary balance is projected to be a surplus of $478.8

million on the cash basis and $398.1 million on the accrual basis.

The Estimates for the 2018-2019 fiscal year include provision for the

following activities:

A current subvention of $145.5 million and a capital subvention of $3.8

million is being provided to the Queen Elizabeth Hospital;

Subventions of $87.7 million and $8.6 million have been provided to the

Barbados Tourism Marketing Inc. and the Barbados Tourism Product

Authority respectively;

An amount of $17.1 million has been provided to enable the preservation

of investments made in CLICO International Life Insurance Limited;

$7.0 million has been provided for the CAF Road Rehabilitation

Programme as well as $7.0 million for the IDB Road Rehabilitation

Programme;

Grant funding of $20.0 million is expected to be received as budgetary

support and also to assist in carrying out the following programmes:

Renewable Energy Program;

The Hope Agricultural Training Institute Project;

UWI Food Security Project

A current subvention of $26.6 million and a capital subvention of $2.4

million have been provided to the Sanitation Service Authority;

An amount $10.8 million has been provided for the Public Sector Smart

Energy Programme;

An amount of $12.2 million has been provided to the Barbados Drug

Service for the purchase of drugs;

A current subvention of $71.3 million has been provided to the University of

the West Indies;

A current subvention of $19.0 million has been provided to the Welfare

Department;

Skills for the Future programme under the Ministry of Education, Science,

Technology and Innovation has been provided with an amount of $6.2

million;

$15.0 million has been provided for the redevelopment of Sam Lord’s

Castle; and

$15.0 million has been provided to bring to account projects of the

Barbados Water Authority funded by the CDB and the Canadian

Commercial Corporation.

<< Back to news headlines >>

Venezuela presidential vote set for April 22 Wednesday 7th February, 2018 – Jamaica Observer

Venezuela's electoral council has set April 22 as the date for a

controversial presidential election, which the opposition accuses President

Nicolas Maduro of using to engineer a second term for himself.

The head of the National Electoral Council, Tibisay Lucena, made the

announcement Wednesday after talks broke down between the

government and opposition on setting a date for the polls.

With the opposition coalition barred from fielding a candidate and

several top Maduro critics banned, the deeply unpopular leftist president's

opponents accuse him of rigging the snap vote before it is even held.

Venezuela was not due to hold a presidential election until December.

But the Constituent Assembly — an all-powerful legislature stacked with

Maduro loyalists — announced last month the date would be brought

forward.

It comes at a time when the opposition is reeling from Maduro's attacks

and its own internal divisions.

Its umbrella coalition, the Democratic Unity Roundtable (MUD), tried to

negotiate a later date in talks with government officials in the Dominican

Republic.

But the dialogue broke down Wednesday, with Maduro refusing to budge

from a draft deal on early elections that the opposition called

unacceptable.

"We implore the government not to commit the absurd mistake of calling

elections unilaterally," tweeted opposition delegate Julio Borges.

The Supreme Court, which critics say systematically bows to Maduro, has

barred the MUD from fielding a candidate under its banner, and banned

several prominent opposition figures from participating.

The election will be held against a backdrop of economic and political

crisis. The South American country, impoverished despite being a major oil

producer, is suffering food and medicine shortages brought on by a

recent period of low oil prices, declining production, and economic

mismanagement.

It is in the grips of hyperinflation and teetering on the brink of outright

default.

Venezuela is also increasingly isolated internationally.

The United States and European Union have imposed sanctions on

Maduro and his officials, with Washington calling him a "dictator."

Maduro and his government defend themselves by saying the economic

crisis is the work of enemy nations — invariably the United States,

sometimes Colombia — plotting with right-wing businessmen seeking to

overthrow him.

<< Back to news headlines >>

Gas prices down $0.54, diesel down $1.56 Wednesday 7th February, 2018 – Jamaica Observer

Motorists should see a decrease at the pumps in the price of gasoline and

diesel, effective Thursday, February 8, according to the latest ex-refinery

costs from Petrojam.

87- and 90-octane gasoline will be sold for $123.35 and $126.19 per litre,

respectively, down by $0.54 each.

Automotive diesel fuel will be sold for $122.97 per litre following a

decrease of $1.56 while ultra-low sulphur diesel is down by $1.26 and will

be sold for $127.81 per litre.

Meanwhile, kerosene decreased in price by $1.52 and will be sold for

$105.55 per litre. Propane liquid petroleum will be sold for $45.02 per litre,

up by $0.26 and butane liquid petroleum will be sold for $48.59 per litre

after an increase of $0.15.

Marketing companies and retailers will add their respective mark-up to

these prices.

<< Back to news headlines >>

EOJ submits $41-m budget for upcoming by-elections Wednesday 7th February, 2018 – Jamaica Observer

The Electoral Office of Jamaica (EOJ) says it has submitted a $41-million

budget to the Government for conducting the March 5 by-elections for

both the parliamentary seat of St Andrew North West and the Kingston

and St Andrew Municipal Corporation division of Norman Gardens.

Of the budget submitted to the Ministry of Finance on Monday, $26.8

million has been estimated for the election in St Andrew North West, while

$13.9 million has been apportioned for the Norman Gardens Division, EOJ

said in a release this afternoon.

Nomination Day is set for next Monday, February 12 between 10:00 am

and 2:00 pm at the Pembroke Hall Community Centre for the St Andrew

North West constituency and noon to 2:00 pm at the Windward Road

Primary and Junior High School for the Norman Gardens Division.

Candidate and former Jamaica Labour Party (JLP) Senator Ambassador

Nigel Clarke will be going up against the People's National Party's (PNP)

Keisha Hayle, who is principal of Padmore Primary School in the said

constituency.

Meanwhile, Jacqueline Lewis will represent the PNP in Norman Gardens,

which had been represented by former Mayor Brown Burke prior to her

election to represent South West St Andrew in Parliament. It is still not

certain who the JLP will put forward to contest the seat.

Candidates are required to fill out a nomination form signed by any ten or

more electors registered to vote in St Andrew North Western; six electors or

more registered to vote in the Norman Gardens division; and pay the

nomination fee of $3,000.

The EOJ said a total of 112 polling stations across 21 voting locations will

be used in St Andrew North West and 52 polling stations across 12

locations will be used in the Norman Gardens Division.

A total of 420 Election Day workers will be required to conduct both

elections; 285 in St Andrew North Western and 135 in Norman Gardens.

The workers will be trained to use the Electronic Voter Identification System

(EVIS), which will be used to identify electors in both elections, EOJ added.

Based on the November 30, 2017 voters' list, which will be used for the

elections, there are 13,517 registered voters in the Norman Gardens

Division and 30,216 in the St Andrew North West constituency.

<< Back to news headlines >>

TCL leads with shares valued $169,447.35 Thursday 8th February, 2018 – The Trinidad Guardian Newspaper

Overall Market activity resulted from trading in 15 securities of which five

advanced, two declined and eight traded firm.

Trading activity on the First Tier Market registered a volume of 103,342

shares crossing the floor of the Exchange valued at $1,490,799.23.

Trinidad Cement Limited was the volume leader with 45,657 shares

changing hands for a value of $169,447.35, followed by Sagicor Financial

Corporation Limited with a volume of 22,972 shares being traded for

$179,641.04.

Scotiabank Trinidad & Tobago Limited contributed 10,652 shares with a

value of $657,556.27, while Trinidad & Tobago NGL Limited added 6,986

shares valued at $186,971.38. Scotiabank Trinidad & Tobago Limited

registered the day’s largest gain, increasing $0.32 to end the day at

$61.73. Conversely, Ansa McAL Limited registered the day’s largest

decline, falling $1.00 to close at $60.00.

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

Market, posting a volume of 731 shares valued at $14,985.50. Clico

Investment Fund remained at $20.50.

Bourse Brazil Latin Fund remained at $8.40. Calypso Macro Index Fund

remained at $21.40.

Fortress Caribbean Property Fund Limited SCC—Development Fund

remained at $0.67. Fortress Caribbean Property Fund Limited SCC—Value

Fund remained at $1.70.

Praetorian Property Mutual Fund remained at $3.05.

The Second Tier Market did not witness any activity.

Mora Ven Holdings Limited remained at $14.49.

<< Back to news headlines >>

Protesting TCL workers demand meeting Thursday 8th February, 2018 – The Trinidad Guardian Newspaper

Protesting workers of Trinidad Cement Ltd stormed the company’s Claxton

Bay head office yesterday demanding a meeting with the management

who failed to show up at a meeting on Monday.

Oilfields Workers’ Trade Union (OWTU) branch president for TCL Ahmad

Mohammed described the communications by the management as a

blatant disrespect to the workers and the union.

TCL workers have been protesting since last week.

The workers are protesting the company’s plan to retrench up to 100

workers from its 300-plus workforce.

Mohammed said a meeting was agreed upon by TCL and the OWTU to

be held at the union’s Paramount Building in San Fernando.

He said during the day, the union received a letter from TCL stating that

“they were not interested in meeting with any items such as the

Memorandum of Agreement, which has been outstanding since 2014, the

Cost of Living Allowance for casual and temporary workers and any other

issue except redundancy and redundancy alone.”

Mohammed, who left the workers inside the compound to speak with the

media, said they had a brief discussion with the general manager who

promised to speak with his management team before returning with news

for the workers.

He said senior union officials were also mediating their protests as workers

were “very frustrated and very angry.”

“What we want is for them to reconvene a meeting between the parties

because the writing and exchanging of love letters at this stage are not

really solving any issues presently between the company, the workers and

the union.

Contacted yesterday, TCL chairman Wilfred Espinet said he was unaware

of the action taken by the workers.

However, Espinet said if it was true, the union ought to realise that such

actions do not solve anything.

Up to late yesterday, the T&T Guardian was awaiting a response from

TCL’s Group Public Relations, Michelle Langton.

<< Back to news headlines >>

THRTA boss: Carnival occupancy solid, but sector issues still loom Thursday 8th February, 2018 – The Trinidad Guardian Newspaper

Chief executive officer of the Trinidad Hotels, Restaurants and Tourism

Association (THRTA) Brian Frontin said from the Port-of-Spain hotels which

the association polled, the larger properties reported occupancy rates of

between 90 and 100 per cent.

He added that statistic is about the same as 2017 as well as for other

years.

Referring to smaller properties, Frontin said owners are signalling that there

is still some availability, "because they are trending between 80 and 85 per

cent occupancy as of Monday, that is a bit down from prior years."

Frontin's remarks come on the backdrop of T&T experiencing a slow-down

in its economy and the mounting challenges faced by stakeholders in the

Tourism sector.

Highlighting one of the trends which tourism stakeholders are witnessing,

Frontin said the length of stay for the Carnival period has been reduced.

Instead of staying for an average of seven days, visitors are requesting

shorter time spans.

"In the past we would see some visitors block off 5-7 days, starting Friday to

the following Ash Wednesday or even earlier, 7-10 day periods.

"Some hotels are saying they are going to be breaking up the period to

allow clients who want shorter stays, 3-4 days. That is not something they

would have traditionally done because the demand for longer stays

would have been been there, so that demand has reduced somewhat

between last year and now."

Frontin said that "destination T&T" is not being promoted properly.

"There has been no marketing of destination T&T at any level for Carnival.

In October 2016, the Ministry of Tourism cancelled all overseas marketing

representation agencies. These were PR firms hired by the Government to

promote T&T either in the US, UK, in Scandanavia, in Europe and all their

contracts were cancelled in 2016 and there has been no replacement to

date."

Frontin added that on one hand, there has been no agency in T&T doing

promotion of the destination since March 2017, while on the other, T&T

does not have any external agencies acting on behalf of the

Government in the respective markets to promote the country's tourism

and Carnival product.

He said tourist would not know about the country if it was not being

properly promoted.

<< Back to news headlines >>

Angostura’s Solera opens in San Fernando Thursday 8th February, 2018 – Trinidad and Tobago Newsday

A complete one-stop outlet which offers the sophisticated wine and spirits

consumers a specialised shopping experience, supported by a very

knowledgeable staff.

That is how Angostura CEO Genevieve Jodhan referred to Solera, the

House of Angostura’s retail store. The second branch of Solera officially

opened on January 25 at the C3 Centre, Corinth on the outskirts of San

Fernando. The other outlet is at the corner of Tragarete Road and Gray

Street, Port of Spain.

Jodhan told guests at the launch that the company, which is renowned

for its iconic bitters created in 1824, is today on the move.

"We intend to become the most admired beverage company in the

Caribbean and to do that we are continually re-assessing, expanding and

innovating our product portfolio and our distribution channels. Solera is just

one example of that forward-thinking mindset."

Jodhan explained the meaning of the word Solera, a process developed

by the Spanish for ageing wine, sherry and spirits, like rum where younger

wines are systematically blended with more mature wines. The finished

product, she said, is an exquisite mixture of ages.

Among those at the opening were San Fernando Mayor Junia Regrello;

San Fernando East MP Randall Mitchell; Trade and Industry Minister Paula

Gopee-Scoon; former San Fernando mayor Kenneth Ferguson; the Mack

family, founders of JT Allum and Company; and senior manager of

Hospitality and Communications (Angostura) Giselle Laronde-West.

Jodhan said in the past six years Angostura launched four limited edition

rums, including Legacy by Angostura, which is still the world’s most

expensive rum, and Amaro di Angostura.

She said the company is expanding because of its consumers’ loyalty and

the best time to invest is when an economy is contracting. "Our global

business is growing. We also have to reinvest in Trinidad and Tobago, so

we are not giving up on the country. We are a net foreign exchange

earner, so we have been importing products. But we are not using up

foreign exchange, we are actually bringing back some value here as

opposed to receiving it."

Gopee-Scoon said the opening of Solera was a sign of good things to

come. She complimented the company for it successes, saying it is all for

the benefit of the people of the country.

"I am happy to know that you are reinvesting, and we look forward to you

investing in new products as well. Company investments mean more

profits, more profits mean more employment, greater profits also mean

greater foreign exchange earnings," Gopee-Scoon said.

<< Back to news headlines >>

‘Cost of construction increasing rapidly’ Thursday 8th February, 2018 – BVI News Online

As the demand for construction workers continues to increase in the British

Virgin Islands, the cost for construction-related services is also increasing.

Residents who are repairing or rebuilding homes and business facilities are

starting to complain about these reported rising prices.

Some residents are reporting that since the hurricanes, the daily cost to

retain construction services have increased considerably and have even

doubled in some instances.

“The cost of construction is increasing rapidly,” decried one resident while

speaking at a public meeting in Cane Garden Bay this week.

He explained: “Say, for instance, John Doe was working at The Moorings

and he got laid off. He was working for $40 or $50 per day. All of a sudden

he goes to the college, takes a course for five months, and he becomes a

$180-a-day man, and the people are paying these prices.”

Government ‘working on’ solution

Residents in need of property repairs have been echoing similar woes and

are calling on government to intervene.

“I do agree that we have to look at the labour cost of the country,” said

Premier Dr D Orlando Smith while responding to the concerns this week.

He pointed to an impending piece of legislation as a solution to the issue.

“What we are looking at now is what you call Consumer Protection

Legislation which that (the problem) will come under and I do have a

draft which I received a couple days ago to review,” Dr Smith said.

Residents have said they welcome the long-promised legislation.

However, many have grown impatient and are clamouring for immediate

relief from the pressure being placed on their pockets.

Reports of rising labour costs come just two months after insurance expert

Michael Fusco warned residents to brace for increased prices on local

goods and services.

At the time, he said prices would increase based on a phenomenon

known as ‘demand surge’.

Effectively, demand surge is a process resulting in a higher cost to repair

property damage after large disasters, than the price to repair the same

damage after a small disaster.

<< Back to news headlines >>

Dutch government assumes direct rule over St Eustatius after allegations of

gross neglect Wednesday 7th February, 2018 – Caribbean News Now

The Netherlands is assuming direct control of the government of St

Eustatius, part of the Kingdom of the Netherlands, state secretary for the

interior and kingdom relations Raymond Knops announced on Monday.

The decision was reportedly made based on a report from a committee

that investigated the state of the island and concluded that there is a

“gross neglect of duties” on St Eustatius.

The local governing body, the island council, will be dissolved and other

officials will be relieved of their duties. A government commissioner will be

appointed to administer the island’s affairs. Knops was due to travel to the

island this week to explain the Dutch government’s decision to the local

population.

The situation on St Eustatius has been a concern to the Netherlands

government for some time, and the previous minister of home affairs

Ronald Plasterk established a committee to identify the problems and

make recommendations on how to correct the situation.

The committee concluded that the local government was characterized

by lawlessness and financial mismanagement. There are also signs of

discrimination, intimidation, threats and insults, and the pursuit of personal

power at the expense of the inhabitants, the committee said.

“Citizens and entrepreneurs experience legal inequality. No administration

is in order and the island is neglected in a physical sense,” according to

the committee.

Knops said in a statement that since other measures have not brought the

island council to heel, there is only one thing left to do: government

intervention.

“It is the harshest measure, but now that everything else has failed, it is the

only possibility that remains. The people of St Eustatius deserve better,” he

said.

<< Back to news headlines >>

CDB reports regional developmental gains in 2017 despite catastrophic

Atlantic hurricane season Wednesday 7th February, 2018 – Caribbean News Now

Despite major setbacks caused by a destructive 2017 Atlantic hurricane

season, the Caribbean Development Bank (CDB) has reported a year of

several developmental gains for the region.

The bank last year approved US$364 million in loans and grants, an

increase of US$58 million on the previous year, which has paved the way

for the implementation of projects that focus on strengthening resilience,

building back better and placing the Caribbean further along a path

toward sustainable development.

“This path will not be without challenges but CDB remains committed to

partnering with our borrowing member countries to make extreme

poverty in our region a thing of the past,” said Daniel Best, director of

projects, CDB during the bank’s annual news conference on Wednesday.

Pointing to the bank’s flagship poverty reduction programme, the Basic

Needs Trust Fund (BNTF), in his presentation to media, Best said that the

allocation of US$40.8 million in resources from the Bank’s Special

Development Fund last year is helping CDB to continue addressing the

needs of the region’s most vulnerable through the programme.

In 2017, BNTF also expanded its support to include entrepreneurial

development, particularly among the region’s youth. The director also

confirmed that in 2017, the Fund completed 152 sub-projects across its

participating countries.

Best highlighted that, through partnerships with international donors, CDB

last year mobilised additional concessional resources for infrastructural

development across the region. The bank, in collaboration with

development partners such as Agence Française de Développement;

European Investment Bank, European Union; and the governments of

Canada and the United Kingdom, mobilised and operationalised

concessional resources for infrastructure projects spanning the agriculture;

education; energy; and water and sanitation sectors.

In addition, CDB addressed the impact of the devastating hurricanes of

2017, approving US$104 million in rehabilitation and reconstruction loans,

immediate response loans and emergency relief grants that will benefit

approximately 134,000 people in Anguilla, Antigua and Barbuda, and the

British Virgin Islands who were affected by Hurricanes Irma and Maria.

“Such cataclysmic events are the new normal for our region. This is why

our interventions in economic and social infrastructure are rooted in

climate resilience. For the first time, the bank has incorporated community

resilience and psychological support services in its recovery

programming,” Best told the media.

Speaking to the bank’s plans for 2018, the director said CDB was actively

working to fast-track the implementation of rehabilitation and

reconstruction projects.

He confirmed that key areas of focus for projects in 2018 include the

continued advancement of energy efficiency and renewable energy

initiatives in the bank’s borrowing member countries; addressing the issue

of youth unemployment; investing in climate-smart agriculture

interventions; and continuing support for the creative industries sector

through the Cultural and Creative Industries Innovation Fund approved in

2017.

<< Back to news headlines >>

Winair announces direct service to Curacao, Santo Domingo and Haiti Wednesday 7th February, 2018 – Caribbean News Now

Regional carrier Winair has announced direct service from St Maarten to

Curacao, Santo Domingo, and Haiti, commencing February 26, 2018, with

daily service to Curacao, five flights per week to Santo Domingo,

Dominican Republic, and two flights a week to Port au Prince, Haiti.

These services will use an ATR 42 aircraft with a capacity of 48 passengers.

These flights are in partnership with alliance partner Air Antilles, and will

originate and terminate in St Maarten.

“In keeping with Winair’s tradition of providing safe, reliable transportation

we are very pleased to recommence service to these destinations. Winair

looks forward to the continued support of the shareholders, employees

and most importantly our customers with these new services. This positive

development fills a much needed void in air connectivity and will also

provide additional employment to St. Maarteners in these trying times,”

said Michael Cleaver, CEO and president of Winair.

<< Back to news headlines >>

Shares fragile, U.S. budget deal puts bonds on defensive Thursday 8th February, 2018 – Reuters

World stock markets remained on shaky ground on Thursday as U.S. bond

yields crept back towards four-year highs after U.S. congressional leaders

reached a two-year budget deal to raise government spending by almost

$300 billion.

While the deal was a rare display of bipartisanship that should stave off a

government shutdown, it looks set to widen the U.S. federal deficit further

and could fan inflation -- prompting the Federal Reserve to lift interest

rates faster.

The Bank of England meets later in the day and is expected to say that

another rate increase could be nearing as Britain’s economy grows faster

than expected.

European stock markets opened the day lower, with blue-chip indexes in

Frankfurt, Paris and London down 0.3-0.7 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.1

percent, but remained near six-week lows hit earlier this week amid a rout

in world stocks.

In China, Shanghai’s benchmark index hit a six-month low, even as data

showed the country’s trade performance in January had exceeded

expectations.

Investors remained wary after an aggressive selloff in equities in the past

week on worries about the prospects of rising interest rates, which would

shut off the liquidity spigot that has fed an exuberant rally in riskier assets.

<< Back to news headlines >>

Euro zone's broad expansion to continue: ECB Thursday 8th February, 2018 – Reuters

Euro zone economic growth is likely to continue unabated, the European

Central Bank said in a regular economic bulletin on Thursday, which is

largely consistent with the outlook unveiled after the January policy

meeting.

“The ongoing broad and solid economic expansion is expected to

continue beyond the near term,” the ECB said. “The prevailing strong

cyclical momentum could lead to further positive growth surprises in the

near term.”

“Downside risks continue to relate primarily to global factors, including

developments in foreign exchange markets,” the ECB added.

<< Back to news headlines >>

Virtual currencies may stay even if bubble is already deflating: ECB Thursday 8th February, 2018 – Reuters

The market bubble of virtual currencies is already deflating but central

banks should still pay attention as the innovation may be here to stay

even if early market leaders die out, European Central Bank board

member Yves Mersch said on Thursday.

“Virtual currencies are not money, nor will they be for the foreseeable

future,” Mersch said in London. “Their market share is still small and their

ties to the real economy are still limited.”

“But this can be subject to change. Regulators and legislators on all levels

should therefore urgently pay close attention to mitigating the potential

risks that could stem from growing virtual currency business,” Mersch

added.

Mersch added that he saw no convincing motivation for the ECB to issue

digital money, a subject under study by several central banks, as such an

innovation is unnecessary for now with likely negative impacts on the

financial system.

<< Back to news headlines >>

Oil slides as U.S. output soars and North Sea crude flows restart Thursday 8th February, 2018 – Reuters

Oil prices hit their lowest in six weeks on Thursday after data showed U.S.

crude output had reached record highs and the North Sea’s largest

crude pipeline reopened following an outage.

The rise in U.S. 10-year government bond yields to their highest in four

years this week has put the dollar on track for its biggest weekly rise since

November 2016, making it more profitable for non-U.S. investors to sell

dollar-denominated assets such as oil.

Brent crude futures LCOc1 were down 14 cents at $65.37 a barrel by 0907

GMT, having hit a 2018 low of $65.10. U.S. futures CLc1 were down 15

cents at $61.64 a barrel.

Brent futures have lost around 8 percent in value since reaching a four-

year high above $71 in late January, and investors in crude are still sitting

on one of the largest bullish positions in history. [O/ICE] [CFTC/]

“This is more a timely correction. I don’t believe it’s going to come

significantly lower,” PVM Oil Associates strategist Tamas Varga said.

“The 10-year yields went higher again yesterday so, if you believe in this

sort of inverse correlation, then that is bearish as well.”

Oil prices were dented by the restart of the Forties pipeline in the North

Sea, following an outage the previous day.

The Forties pipeline, which carries around a quarter of all North Sea crude

output and roughly a third of Britain’s offshore natural gas production, shut

on Wednesday for the second time in two months, following a valve

closure at its Kinneil facility in Scotland.

The U.S. Energy Information Administration (EIA) this week upped its 2018

average output forecast to 10.59 million barrels per day, up 320,000 bpd

from its last forecast just a week earlier.

At 10.25 million bpd, U.S. output is now higher than the previous 10.044

million bpd record from 1970 and above that of top exporter Saudi

Arabia.

“Clearly, the data points to an imbalanced market and oil prices have

responded by turning sharply lower,” said Fawad Razaqzada, market

analyst at futures brokerage Forex.com.

U.S. crude inventories C-STK-T-EIA rose 1.9 million barrels in the week to

Feb. 2, to 420.25 million barrels.

Chinese consumption of oil meanwhile is rising, as reflected by the surge

to a record 9.57 million bpd in imports in January, according to official

customs data.

<< Back to news headlines >>

Futures slip, investors take stock after volatile week Thursday 8th February, 2018 – Reuters

U.S. stock index futures edged lower on Thursday as investors took stock of

a heavy round of corporate results after the most volatile week of trading

in more than two-and-a-half years.

By 6:50 a.m. ET (1150 GMT), Dow e-minis 1YMc1 were down 47 points, or

0.19 percent. S&P 500 e-minis ESc1 were down 5.25 points, or 0.2 percent,

with 226,163 contracts traded.

Nasdaq 100 e-minis NQc1 were down 2.25 points, or 0.03 percent, on

volume of 59,558 contracts.

Wall Street ran out of steam on Wednesday after an early surge as

investors continued to question the nature of a sharp fall at the start of the

week, which saw the Dow Jones Industrial Average notch its biggest

intraday fall on record.

The market’s main gauge of volatility, the CBOE Volatility Index .VIX, fell to

28.50 on Thursday, still more than twice levels it held over the past few

months. The index hit its highest level since August 2015 on Tuesday.

Investors are weighing whether the sharp swings are the start of a deeper

correction or just a temporary bump in the nine-year bull market, spurred

by concerns over rising interest rates and bond yields.

Dallas Fed President Robert Kaplan said on Thursday the central bank

could hike rates three times this year and the recent market volatility in

itself was not enough to change his base scenario.

Philadelphia Fed President Patrick Harker, Minneapolis Fed chief Neel

Kashkari and Kansas City Fed President Esther George are expected to

make appearances at different events later in the day.

The 10-year U.S. Treasury yield crept back US10YT=RR to 2.83 percent, near

Monday’s four-year peak of 2.885 percent.

Economic data at 8:30 a.m. ET is expected to show weekly jobless claims

rose to 232,000 from 230,000 a week earlier.

Among stocks, Tesla (TSLA.O) was down 1.4 percent in premarket trading

after the electric automaker said spending could rise in 2018.

Twitter (TWTR.N) rose 11.8 percent after it reported its first quarterly net

profit and topped Wall Street targets as video ad sales rose.

Yelp (YELP.N) fell 11 percent after a host of brokerages cut their price

targets on the consumer review website operator’s stock following

quarterly results.

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M&A, banks brighten lackluster European stock markets Thursday 8th February, 2018 – Reuters

A European recovery rally dissipated on Thursday with benchmarks across

the region weighed down by commodities and technology stocks, while

acquisition approaches sent Danish telecoms group TDC and Swiss insurer

Swiss Re flying.

Europe’s STOXX 600 share index fell 0.5 percent by mid-morning, pulled

lower by a 1.5 percent decline in basic resources .SXPP, and weaker

industrials stocks.

The index was still down 2.8 percent year-to-date after equities worldwide

took a battering this week. The previous two sessions saw the heaviest

volumes traded on the STOXX 600 in more than seven months.

Financials limited the damage, with euro zone banks .SX7E gaining 0.4

percent after strong earnings from UniCredit (CRDI.MI) and Societe

Generale (SOGN.PA).

Merger and acquisition activity drove the top European gainers.

Danish telecoms company TDC (TDC.CO) led the STOXX 600, shooting up

16.3 percent and on track for its best day since June 2007, after it rejected

a takeover approach from Macquarie and three Danish pension funds.

Swiss Re (SRENH.S) shares jumped 4.6 percent after the reinsurer said it was

in talks with Japan’s SoftBank (9984.T) to sell a minority stake.

Strong results also boosted some stocks as investors’ focus turned back to

the European earnings season.

“At the end of the day for us, the question was does this correction

change the earnings picture or the economic picture? At this point, no it

doesn‘t,” said Pierre Bose, head of European strategy at Credit Suisse.

Societe Generale shares rose 3.9 percent after the bank reported

forecast-beating results despite a quarterly drop in profits.

“French retail revenues better than guidance, and good numbers in

markets with equity derivatives back to normal,” said Jefferies analysts.

Italy’s UniCredit rose 3 percent after profit topped forecasts, and Banco

BPM (BAMI.MI) led Italian stocks with a 4.1 percent gain after the bank

raised its target for shedding bad loans.

Norwegian consumer goods firm Orkla (ORK.OL) gained 5.8 percent after

its fourth-quarter earnings beat forecasts.

Schibsted (SBSTA.OL), however, fell 5.5 percent after traders said its third-

quarter earnings missed forecasts.

After this week’s sharp correction, valuations of the STOXX 600 have fallen

back below their one-year average.

“It’s not cheap, but it’s much closer to fair value,” said Credit Suisse’s

Bose.

“The market was moving close to vertically for the first few weeks of this

year, and absolute valuation has been a bit expensive for the past 18

months. From that point of view the correction that we’ve had is actually

extremely helpful.”

But the market was still warily eyeing volatility levels which partly

determine how asset allocators measure the levels of risk they can take

on.

“If volatility remains higher, the one thing that does change for investors

everywhere is the risk/reward ratio,” said Bose.

<< Back to news headlines >>

CDB predicts 2% economic growth for the C'bean in 2018 Thursday 8th February, 2018 – Jamaica Observer

Caribbean economies are expected to register an average two per cent

growth this year following overall growth of less than one per cent in 2017,

the Barbados-based Caribbean Development Bank (CDB) reported

Wednesday.

CDB director of Economics, Dr Justin Ram, told the bank's annual news

conference that the 2017 Atlantic Hurricane season resulting in several

countries, such as Antigua and Barbuda, Dominica, Bahamas, St Kitts-

Nevis, Turks and Caicos Islands and the British Virgin islands experiencing

varying levels of destruction, had left the region experiencing growth of

0.6 per cent.

But he told reporters that all of CDB's Borrowing Member Countries (BMCs)

are expected to contribute to the overall economic growth this year.

“This is mainly driven by the return to growth in Trinidad and Tobago and a

2.3 per cent uptick in Jamaica, which accounts for about a fifth of

regional GDP (gross domestic product).

“The highest growth rates are anticipated for Anguilla and Dominica as

they rebuild from the damage caused by the 2017 hurricanes. Antigua

and Barbuda and the Turks and Caicos Islands are also expected to have

strong growth,” Ram said.

Dominica's economy is expected to grow by 6.4 per cent this year, Ram

said as the island recovers from the devastating effects of Hurricane Maria

last September.

“The highest growth rates are projected for Anguilla and Dominica as they

rebuild from the damage caused by the 2017 hurricanes. Antigua and

Barbuda, and the Turks and Caicos Islands are also expected to have

strong growth,” Ram said, estimating that Dominica suffered negative

growth of 6.9 per cent as the island lost 225 per cent of GDP.

With regards to the economic situation in Barbados, where last week, the

International Monetary Fund (IMF) expressed concern at the island's large

fiscal deficit, high debt and low foreign reserves, Ram said the Freundel

Stuart administration needed to properly manage its debt.

“Secondly the government also needs to examine its other expenditures

and particular as it relates to transfer and subsidies which are currently

running at around 13 per cent of GDP.

“So that means there needs to be some reform particularly of state

owned enterprises,” Ram said, adding that the government needs to

make the Barbados economy “a lot more competitive and productive.

“And so that means dealing with the inefficiencies in the doing business

environment,” he said.

The IMF had also emphasised that a stronger macroeconomic framework

and bolder structural reforms were needed to achieve fiscal and debt

sustainability, address the large financing needs, build adequate

international reserves, and boost growth.

It also recommended that adjustment measures should focus on

expenditure, primarily supported by reform of the State-owned

enterprises.

“Efforts to contain the wage bill and reform of government pensions, while

improving revenue administration and broadening the tax base, including

by reducing exemptions, would also be important,” the Washington-

based financial institution had said.

Ram told regional reporters it was also important for the government to

target social interventions and upgrade the island's infrastructure.

“Throughout this process of reform, it is really important that the

government focuses social intervention towards those who need it.. And

that also means that there needs to be a new training programme to

provide labourers with the skills for the new labour market.

“The government needs to examine its infrastructure. It needs to put in

place a programme that reforms and replaces some of the infrastructure

that we have now, particularly as it relates to roads and to sewage.”

In his presentation, Ram said that although a return to growth is

encouraging, the Caribbean still lags behind other small developing states

where economic growth is at 4.8 per cent average compared to the

Caribbean at 0.8 per cent since 2009.

Ram said that in order for Caribbean to ensure sustainable, inclusive

growth and development, measures to improve resilience are needed

and recommended a framework that could help countries build

resilience.

He said it is built on four pillars: macroeconomic resilience; productivity

and competitiveness; human development; and environmental resilience.

“Any blueprint for building resilience in the Caribbean must take into

account all of the key elements identified in the four pillars. In addition we

must ensure that we consider regional integration and gender equality—

cross-cutting themes that support and reinforce the four elements. It is

important that we build resilience in all four areas, which are

interconnected,” said Ram.

With respect to specific policy actions, the CDB official noted that at the

macroeconomic level, fiscal rules that encourage governments to save

should be implemented; and debt-to-GDP limits should be introduced.

He also recommended that countries adopt reforms that make it easier to

do business, thus setting the environment for private-sector-led growth.

He said resilience at the environmental level will mean stricter compliance

with stricter building codes, and the development of indemnity insurance

markets.

”We believe that all of this can be strengthened if there is greater gender

equality particularly within the labour market. Regional Cooperation will

also reinforce this for example, free movement of labour and capital

which could assist with overcoming diseconomies of scale associated with

small size,” Ram said.

The CDB said that despite the devastation caused by the hurricanes, it

had been able to provide increased levels of assistance to its member

countries.

CDB director of projects, Daniel Best, said the CDB, the region's premier

financial institution, last year approved US$364 million in loans and grants,

an increase of US$58 million over the 2016 figure.

He said the funds had paved the way for the implementation of projects

that focus on strengthening resilience, building back better and placing

the Caribbean further along a path toward sustainable development.

“This path will not be without challenges but CDB remains committed to

partnering with our BMCs to make extreme poverty in our Region a thing

of the past,” said Best. Noting that the plans for 2018, include fast tracking

the implementation of rehabilitation and reconstruction projects.

He said that key areas of focus for projects in 2018 include the continued

advancement of energy efficiency and renewable energy initiatives in

the BMCs; addressing the issue of youth unemployment; investing in

climate-smart agriculture interventions; and continuing support for the

creative industries sector through the Cultural and Creative Industries

Innovation Fund approved in 2017.

<< Back to news headlines >>

Nikkei rises as investors chase bargains; automakers, drugmakers lead Thursday 8th February, 2018 – Reuters

Japan’s Nikkei share average rose on Thursday as buyers looked for

bargains on shares which were beaten down heavily early in the week.

The Nikkei ended up 1.1 percent at 21,890.86 points, but has still lost nearly

6 percent so far this week.

Automakers, glassmakers and pharmaceutical stocks led the gains, while

food companies and metal stocks lost ground.

Toyota Motor Corp rose 2.4 percent, Subaru Corp advanced 2.9 percent,

Asahi Glass jumped 5.9 percent and Takeda Pharmaceutical added 1.8

percent.

Condiment maker Ajinomoto shed 1.7 percent and Toho Zinc stumbled

5.7 percent.

The broader Topix rose 0.9 percent to 1,765.69.

<< Back to news headlines >>

Bank of England sees rates rising sooner and higher as UK boosted by

global growth Thursday 8th February, 2018– Reuters

The Bank of England said on Thursday interest rates probably need to rise

sooner and by a bit more than it thought three months ago, after it raised

its growth forecasts for Britain due to the strong global recovery.

The BoE’s rate-setters voted 9-0 to hold Bank Rate at 0.5 percent, as

expected in a Reuters poll, giving them time to assess how the world’s

sixth-biggest economy copes with the approach of Brexit.

But Governor Mark Carney and colleagues said they now wanted to

return inflation to its 2 percent target over “a more conventional horizon”,

in a sign they were turning their sights to tackling price growth over two

years rather than three.

Sterling rose by more than a cent against the U.S. dollar after the

announcement, reversing its recent declines, while British government

bond prices fell and share prices slipped.

Rate futures were pricing in a more than 50 percent chance of a rate hike

in May with an increase fully priced in for August.

“It is no surprise to see interest rates being kept on hold this month. But it is

still likely that we will see at least one quarter point rise in 2018 and possibly

two or three,” said PwC senior economic adviser Andrew Sentance, a

former BoE rate-setter.

The Monetary Policy Committee raised interest rates for the first time in a

decade in November and said on Thursday that it now thought the next

hike needed to come a bit more quickly than it thought then.

Before Thursday’s statement, investors saw a nearly 50-50 chance of the

next hike coming in May, when the BoE is due to update its economic

forecasts again, and this new message is likely to increase bets on a move

then.

“Were the economy to evolve broadly in line with the February Inflation

Report projections, monetary policy would need to be tightened

somewhat earlier and by a somewhat greater extent over the forecast

period than anticipated at the time of the November Report,” the MPC

said.

Britain’s economy has slowed since the 2016 Brexit vote but it has fared

better than many investors expected at the time of the referendum,

thanks largely to the much stronger global rebound in countries such as

the United States, Germany and other key trading partners.

The BoE has stuck to its plan to raise rates gradually, and before Thursday’s

announcement financial markets were expecting Bank Rate to hit 1.2

percent by early 2021, the BoE noted, something that would suggest two

or three rate hikes by then.

However that scenario would still leave inflation above its 2 percent target

in three years’ time, the BoE said on Thursday, suggesting it might hikes

rates by more than investors have been expecting recently.

In November, the BoE signalled it expected two hikes over the following

three years.

Peter Dixon, an economist with Commerzbank, said the central bank

wanted to put markets on notice that further rate hikes were on the way,

but he was not yet sure the case was clear enough for a move.

“We have yet to see evidence to support the view that we need more

aggressive forward tightening than we thought three months ago,” he

said.

FASTER GROWTH

On Thursday, the BoE nudged up its economic growth forecasts for Britain

to show an average annual expansion of 1.75 percent over the next three

years.

That was a lot weaker than its expectation of global growth of nearly 4

percent over the same period and was also below the country’s pre-

financial crisis average of about 2.9 percent.

The BoE linked the sluggish British outlook to slower growth in the labour

force, due to fewer immigrants coming to Britain after Brexit and to the

country’s ageing population.

But even with slower growth, Britain remained susceptible to excessive

inflation. The BoE said it expected the economy could only grow by 1.5

percent a year before it started to generate too much price pressure.

Annual wage growth is expected to pick up to 3 percent by the end of

2018, in line with previous forecasts.

The BoE lowered most of its inflation projections after sterling rose recently

and bond yields in financial markets jumped. But inflation was expected

to remain above the 2 percent target at 2.11 percent in three years’ time.

BoE Governor Mark Carney said last month that Britain’s chances of

catching up with its faster-growing peers depended largely on progress in

the Brexit negotiations between London and Brussels.

Prime Minister Theresa May wants to clinch a transition deal next month to

secure full access for Britain to EU markets for about two years after it

leaves the bloc in March 2019.

Some economists have said that the BoE has a narrow window to raise

rates because later in the year, London and Brussels could be wrangling

over their long-term relationship, weighing on the economy and possibly

preventing the bank from moving.

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Sterling jumps after central bank sees rates rising sooner; stocks slip Thursday 8th February, 2018 – Reuters

Sterling jumped and stocks hit session lows on Thursday after the Bank of

England said interest rates probably needed to rise sooner and by a bit

more than it thought three months ago.

Against the dollar, the pound rose as much as 0.9 percent to hit a day's

high of $1.4015 GBP= after trading flat before the BoE announcement, in

which the bank kept rates unchanged.

Against the euro, sterling rallied more than one percent to hit a one-week

high of 87.41 pence EURGBP=.

Britain's internationally-exposed FTSE 100 .FTSE hit its session low, down 1.1

percent, after the BoE decision.

The Bank of England said interest rates probably needed to rise sooner

and by a bit more than it thought three months ago, after it raised its

economic growth forecasts for Britain due to the strong global recovery.

British two-year government bond yields GB2YT=RR rose to the highest

since December 2015 after the decision, rising by around 6 basis points

after the decision to 0.706 percent.

Short sterling interest rate futures <0#FSS:> fell sharply after the decision,

dropping around 5 to 7 ticks across 2018 and 2019 contracts and

indicating a steeper path of interest rate hikes priced by the market.

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