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

▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+

▪ Home Mortgage Bank’s rating reaffirmed at CariA

▪ NCB Cayman Limited’s rating reaffirmed at CariA

▪ NiQuan Energy Trinidad Limited’s initial rating assigned at CariA+

▪ Government of the Republic of Trinidad and Tobago’s rating reaffirmed at CariAA+

▪ NCB Financial Group Limited’s rating reaffirmed at CariA-

▪ National Commercial Bank Jamaica Limited’s rating reaffirmed at CariBBB+

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

▪ TRINRE Insurance Company Limited’s initial rating assigned at CariA- ▪ NCB Capital Markets Limited’s rating reaffirmed at CariBBB

▪ Government of Anguilla removed from rating watch and reaffirmed at CariBBB+

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

▪ Mystic Mountain Limited’s initial rating assigned at CariBBB-

OUR UPCOMING WORKSHOPS!

Restructuring Problem Credits 23rd & 24th January 2019 Jamaica

Benefits of CariCRIS’ Bond Valuation Services:

Latest Rating Actions by CariCRIS

• Independent fair value prices for non-traded securities

• Pricing done by qualified experts

• Quick turnaround and affordable fees

DATE

WORKSHOP

COUNTRY

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

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

REGIONAL

Trinidad and Tobago

Some engineers entitled to over $1m

A FORMER Petrotrin engineer, accountant or operator with 25 years’

service will receive over $1 million as a termination payment under the

Petrotrin Collective Agreement.

Massy adds $0.93

OVERALL market activity resulted from trading in 16 securities of which

seven advanced, five declined and four traded firm.

Barbados

No private sector increases just yet

Private sector workers who might be expecting a wage increase because

of the proposed reduction in corporation tax could forget about it, at

least for now.

Jamaica

Medicanja Gets Financing from DBJ For Clinical Trials of Cannabis Drug

Medicanja has secured a grant of $7 million from Development Bank of

Jamaica, the first cannabis company to receive funding from a local

lending institution.

Guyana

ExxonMobil strikes more oil

UNITED States oil giant ExxonMobil announced on Monday that it has

made its 10th discovery offshore Guyana and increased its estimate of the

discovered recoverable resource for the Stabroek Block to more than five

billion oil-equivalent barrels.

New discovery pushes oil reserves over 5B barrels Suppliers jostle for jobs

as local content forum begins

Local companies are meeting with ExxonMobil and its contractors to talk

jobs and opportunities as the countdown continues for first oil in early

2020.

Guyana continued

‘Region three has done exceptionally well’

ASIDE from the commencement of preparatory works for the new four-

lane Demerara River Bridge, Essequibo Islands-West Demerara (Region

Three) residents can look forward massive infrastructural works to continue

throughout the region in 2019, particularly in the education and health

sectors.

The Bahamas

‘Peanut’ Profits Make Dividend Premature

Bank of The Bahamas (BOB) chairman says it is “premature” to discuss

resuming ordinary shareholder dividend payments when profits to-date

have been “kind of peanuts”.

Bob ‘Reputation’ Boost From $15m Repayment

Bank of The Bahamas believes it will boost its “reputation and

creditworthiness” by repaying its last $15m in preference share debt, and

declaring an interest dividend, before year-end 2018.

Haiti

Sunrise Airways will provide the connection Havana / Santo Domingo

Monday, the businessman and philanthropist Philippe Bayard, President of

the private Haitian airline Sunrise Airways based in Port-au-Prince, whose

head office is located in Haiti announced the opening of a new

connection between Santo-Domingo (Dominican Republic) and Havana

(Cuba). According to Bayard the excellent historical relationship between

Haiti and Cuba was "a determining factor" when choosing destinations on

the island.

Cuba

Cuban economy needs to become efficient, says president

Cuba is immersed in an unprecedented economic battle, amidst the

tense financial situation it faces, worsened by the aggressiveness of the

United States, said President Miguel Díaz-Canel on Thursday in

Guantanamo.

The Dominican Republic

Curaçao-Dominican ‘complementarity’ pact looks to spur trade

Dominican Foreign minister, Miguel Vargas, and Curacao Economy

minister Iván Steven Martina, on Monday signed a Partial Scope

Agreement, which aims to create a mechanism to spur trade and

cooperation between both countries.

Anguilla

ANGUILLA’S POSITION AFTER BREXIT – LETTER FROM THE UK PRIME MINISTER

TO THE NATION

The following comprises a letter to the British family of nations by the UK

Prime Minister Theresa May that was published this morning, as she

embarks upon entering an agreement with the European Union in which

the conditions of the UK’s withdrawal from the EU that will take place at

11pm (GMT) on the 29th March 2019 are set out. The 585-page

agreement is coupled with a Political Declaration.

CM BANKS ISSUES STATEMENT ON SALE OF SCOTIABANK (ANGUILLA) LTD

Anguilla’s Chief Minister and Minister of Finance, Mr. Victor Banks, called

an urgent press conference on Wednesday, November 28, in which he

delivered the following statement about the announcement of the sale of

Scotiabank Limited in nine Caribbean islands including Anguilla:

British Virgin Islands

Reservoir reconstruction on JVD nearly complete

Construction of the steel water tank/reservoir that is being erected on Jost

Van Dyke is nearly complete.

BVI to use int’l connections to support UK after Brexit — Premier

The British Virgin Islands will be looking to use its connections with

international partners in the financial services sector to back the United

Kingdom when it exits from the European Union (EU) in the next few

months.

INTERNATIONAL

United States

U.S. expects immediate action from China on trade commitments

The United States expects China to take immediate action to cut tariffs on

U.S. car imports and end intellectual property theft and forced

technology transfers as the two countries move toward a broader trade

deal, a White House official said on Monday.

Dollar weakens as U.S. bond yields fall, 3-5-year curve inverts

The dollar weakened in Asia on Tuesday as U.S. Treasury yields fell to three-

month lows, with investors fretting over a possible pause in the Federal

Reserve’s rate-hike cycle and portents of recession seen in a yield curve

inversion.

United Kingdom

Bank of England's Carney hits back at critics of Brexit scenarios

Bank of England Governor Mark Carney defended the central bank’s

warnings of a potentially major economic hit from Brexit which angered

lawmakers opposed to Prime Minister Theresa May’s plans for leaving the

European Union.

Europe

European Commission looking to strengthen euro's reserve currency

muscle

The European Commission has drawn up plans to boost the euro’s muscle

as a global reserve currency, one of its top officials said on Tuesday.

EU offering euro bond to provide aid to Ukraine, Georgia

The European Union has opened a tap of its outstanding April 2033 euro

bonds to provide 500 million euros of aid to Ukraine and 15 million euros of

aid to Georgia, an EU official told Reuters on Tuesday.

European shares dip as doubts grow about U.S.-China trade truce

European shares traded in negative territory on Tuesday morning as

investors started to question whether the truce agreed by the United

States and China on their trade dispute would lead to a long-term deal.

China

China central bank chief says will keep monetary policy flexible

China’s central bank will keep monetary policy flexible and adjust it

appropriately according to changes in the country’s economic situation,

bank Governor Yi Gang said.

Global

OPEC works on deal to cut output, still needs Russia on board

OPEC and its allies are working towards a deal this week to reduce oil

output by at least 1.3 million barrels per day, four sources said, adding that

Russia’s resistance to a major cut was so far the main stumbling block.

World stocks shrivel as trade truce doubts, economic woes gather

Deflating hopes of a swift resolution to the Sino-U.S. trade war knocked

world stocks off three-week highs on Tuesday, while growing fears the U.S

economy could be headed for recession sooner than expected weighed

on the dollar.

Oil jumps 2 percent on expectations of production cuts

Oil prices rose more than 2 percent on Tuesday, extending gains ahead of

expected output cuts by producer cartel OPEC and a mandated

reduction in Canadian supply.

Euro rises as Treasury yield drop whacks dollar; yuan at two-month high

The euro rallied above $1.14 on Tuesday as a fall in U.S. Treasury yields

encouraged further selling of the dollar, with the yen and trade-linked

currencies such as the Chinese yuan also racking up strong gains.

ExxonMobil strikes more oil Tuesday 4th December, 2018 – Guyana Chronicle

UNITED States oil giant ExxonMobil announced on Monday that it has

made its 10th discovery offshore Guyana and increased its estimate of the

discovered recoverable resource for the Stabroek Block to more than five

billion oil-equivalent barrels.

The resource estimate, up from the previous estimate of more than 4

billion oil-equivalent barrels, is a result of further evaluation of previous

discoveries and includes a new discovery at the Pluma-1 well, the

company said in a statement. “The discovery of a resource base of more

than 5 billion oil-equivalent barrels in less than four years is a testament of

our technical expertise and rigorous evaluation and pursuit of high-

potential, high-risk opportunities in this frontier area,” said Neil Chapman,

ExxonMobil senior vice president. “We will continue to apply what we’ve

learned to identify additional exploration prospects and potential future

discoveries that will deliver significant value to Guyanese people, our

partners and shareholders.”

The Pluma-1 well encountered approximately 121 feet (37 metres) of high-

quality hydrocarbon-bearing sandstone reservoir. Pluma-1 reached a

depth of 16,447 feet (5,013 metres) in 3,340 feet (1,018 metres) of water.

The Noble Tom Madden drillship began drilling on Nov. 1. The well is

located approximately 17 miles (27 kilometres) south of the Turbot-1 well.

The Noble Tom Madden will next drill the Tilapia-1 prospect located 3.4

miles (5.5 kilometres) west of the Longtail-1 well. “Together with the

Government and people of Guyana, we are continuing to grow the value

of the Stabroek Block for Guyana, our partners and ExxonMobil with

successful exploration investments,” said Steve Greenlee, president of

ExxonMobil Exploration Company. “Our ongoing work will evaluate

development options in the southeastern portion of the block, potentially

combining Pluma with prior Turbot and Longtail discoveries into a major

new development area.”

The Liza Phase 1 development is expected to begin producing up to

120,000 barrels of oil per day by early 2020, utilising the Liza Destiny floating

storage, production and offloading vessel (FPSO). As previously

announced, Liza Phase 2 is expected to start up by mid-2022. Pending

government and regulatory approvals, Liza Phase 2 project sanction is

expected in early 2019 and will use a second FPSO designed to produce

up to 220,000 barrels per day. Sanctioning of a third development,

Payara, is also expected in 2019 with start up as early as 2023.

The Stabroek Block is 6.6 million acres (26,800 square kilometres).

ExxonMobil’s affiliate, Esso Exploration and Production Guyana Limited, is

the operator and holds 45 per cent interest in the Stabroek Block. Hess

Guyana Exploration Ltd. holds 30 per cent interest and CNOOC Nexen

Petroleum Guyana Limited holds 25 per cent interest.

Meanwhile, Director of the Department of Energy, Dr. Mark Bynoe in an

invited comment said: “This is great news for Guyana…the country is on

the cusp of transformational development for current and future

generations, and the news of ExxonMobil’s 10th discovery offshore

Guyana is expected to facilitate the country’s realisation of substantial

social and economic improvements.

“Guyana is well poised to truly forge ahead in the 21st century. As a petro-

development state we will, however, need to strategically invest in a

people-centred and balanced manner, where we utilise our non-

renewable resources for structural transformation and improving people’s

lives in the short-term, while concomitantly providing the foundation to

allow us to transition in the medium and long-term to a post-carbon

economy. The previous recoverable resource estimate on the Stabroek

Block was more than 4 billion barrels. This discovery reinforces the

potential of the country being able to produce more than 750,000 barrels

of oil daily by 2025, and the potential for development in the southeast

section of the Stabroek Block. The Stabroek Block is 26, 800 square

kilometres,” Dr. Bynoe added.

The Noble Tom Madden is expected to begin drilling the Tilapia-1

prospect located some 3.4 miles (5.5 kilometres) west of the Longtail-1

well. The Stena Carron drillship has recently completed operations at

Hammerhead-1 and will soon drill its next well following scheduled

maintenance.

In his recent budget presentation, Finance Minister Winston Jordan had

said that the discovery of very significant oil reserves has put Guyana at a

critical point in its history, “providing us with the opportunity to shift our

development path, modernise our economy and transform the lives of our

citizens. We are poised for rapid economic expansion, and our

government is committed to pursuing economic and social policies

conducive to equitable, sustainable and environmentally-friendly

growth.”

Jordan noted that the government has embarked on a number of

initiatives to ensure that “we do not squander these resources.” He told

the House that the administration has already completed a Green Paper

on the management of the revenues from petroleum, and that a Natural

Resource Fund Bill was introduced in the National Assembly to assure

equitable distribution of national wealth across generations, among other

objectives. “Mr. Speaker, these new resources provide a momentous

occasion for us to turn potential to prosperity. We intend to take

advantage of this and will ramp up spending on infrastructure such as

roads, bridges, airstrips, energy and telecommunications, in order to

improve and induce domestic and foreign investment, which is critical to

our growth and development prospects. Increased expenditure on

education and healthcare is also projected, so as to ensure qualitative

and quantitative enhancement of our human capital – our country’s most

valuable asset. Further, through appropriate policy measures, we will

ensure that the appreciable economic growth that is expected is felt at

all levels, especially among disadvantaged, vulnerable and

underprivileged groups and communities,” Jordan said.

He said that in order to capture the full benefit of our new-found wealth,

“we must chart a course of development that is diversified, inclusive and

sustainable. This is why we have embarked on the development of the

Green State Development Strategy (GSDS), a comprehensive document

of strategic actions, policies, projects and programmes to guide our

development trajectory over the next 20 years. The objective is broader

than Guyana’s past development strategies and captures a more holistic

view of social, economic and environmental well-being, which is in line

with the United Nation’s Sustainable Development Goals (SDGs). In

particular, the Strategy aims to foster sustained economic growth that is

low-carbon and climate-resilient, as well as promote social cohesion,

good governance and careful management of our finite natural

resources.”

<< Back to news headlines >>

New discovery pushes oil reserves over 5B barrels Suppliers jostle for jobs

as local content forum begins Tuesday 4th December, 2018 – Kaieteur News

Local companies are meeting with ExxonMobil and its contractors to talk

jobs and opportunities as the countdown continues for first oil in early

2020.

Yesterday, scores gathered at the Marriott Hotel, Kingston, as news was

announced that a 10th discovery has been made about 200 kilometres

offshore, pushing recoverable reserves beyond five billion barrels of oil.

This could push production up to 750,000 barrels per day come 2025,

authorities said yesterday.

While the forum was in the first session, a statement from Government

quoted Director, Department of Energy, Dr. Mark Bynoe, as saying that

the United States oil giant, ExxonMobil, has made its 10th discovery

offshore Guyana, at the Pluma-1 well.

“This is great news for Guyana…The country is on the cusp of

transformational development for current and future generations and the

news of ExxonMobil’s 10th discovery offshore Guyana is expected to

facilitate the country’s realisation of substantial social and economic

improvements,” said an upbeat Dr. Bynoe.

The Pluma-1, which is located some 17 miles (27 kilometres) south of the

Turbot-1 well and follows previous discoveries on the Stabroek Block,

encountered approximately 121 feet (37 meters) of high-quality,

hydrocarbon-bearing sandstone.

The well was safely drilled to 16,447 feet (5, 013 meters) depth in 3,340 feet

(1,018 meters) of water. The Noble Tom Madden drillship began drilling on

November 1, 2018.

“Guyana is well poised to truly forge ahead in the 21st century. As a petro-

development state we will, however, need to strategically invest in a

people-centred and balanced manner, where we utilise our non-

renewable resources for structural transformation and improving people’s

lives in the short-term, while concomitantly providing the foundation to

allow us to transition in the medium- and long-term to a post carbon

economy,” Bynoe noted.

The previous recoverable resource estimate on the Stabroek Block was

more than four billion barrels.

The government statement said that this discovery reinforces the potential

of the country being able to produce more than 750,000 barrels of oil

daily by 2025 and to the potential for development in the south-east

section of the Stabroek Block.

The Stabroek Block is 26,800 square kilometres, Dr. Bynoe added.

The Noble Tom Madden is expected to begin drilling the Tilapia-1

prospect located some 3.4miles (5.5 kilometres) west of the Longtail-1 well.

The Stena Carron drillship recently completed operations at

Hammerhead-1 and will soon drill its next well following scheduled

maintenance.

ExxonMobil and its affiliate Esso Exploration and Production Guyana

Limited hold 45 per cent interest in the Stabroek Block. Hess Guyana

Exploration Limited holds 30 per cent interest and CNOOC Nexen

Petroleum Guyana Limited holds 25 per cent interest.

Meanwhile, the Liza Phase 1-Supplier Development Forum at the Marriott

allowed debate on the highly controversial local content issue- in

layman’s words it is what jobs and opportunities that Guyana is getting.

Yesterday’s forum was supposed to allow local companies and partners

to mingle with ExxonMobil and its contractors.

The contractors included Noble Drilling, TechnipFMC, Saipem, SBM,

Schlumberger, Halliburton, and Guyana Shore Base.

The suppliers also making presentations were Modern Building Solutions,

Guysons Oil and Gas, Falcon Logistics and Atlantic Marine Supplies.

Today, the booths would be opened, allowing for participants to interact

with the contractors and suppliers.

According to Joanna Simmons-Homer, of the Department of Energy, with

little experience in the oil and gas sector, there will be a few success

stories emerging from companies which has grabbed opportunities.

The official told the packed Marriott room of private sector officials, and

business executives, that the government’s local content policy is nearer

to reality with finishing touches being added.

Chairman of the Private Sector Commission, Desmond Sears, expressed

delight that the Centre for Local Business Development has taken the

initiative for the forum.

The Centre, located in the compound of the Institute of Private Enterprise

Development, South Road, provides space for local firms to learn about

opportunities in the oil and gas sector, strengthen their competitiveness,

and prepare to supply the oil and gas sector with various services. This

happens through registration, training and other forums.

According to Sears, while Guyana welcomes investors, there are rules and

ethics that must be adhered to. He too called for a local content policy to

be introduced soonest with the time window of grabbing opportunities

costing monies.

He pointed to deep interest of local businesses in the oil sector with

delegations visiting Aberdeen, Scotland and Newfoundland, Canada.

Sears noted that the range for services and supplies would be wide– from

pumps to tools and boats.

He urged that a list of supplies be made available so that local businesses

can determine if they can get a piece of the pie.

The PSC official stressed, too, that Guyana has boasted of a positive

growth in the last decade, with agriculture, mining and forestry leading

the way.

The new entrants must play a role in helping Guyana move to the next

level, he urged.

Meanwhile, ExxonMobil’s Country Manager, Rod Henson, stressed that

local supplies are critical to the oil operations.

He insisted that ExxonMobil is bent in honouring the environmental and

other commitments.

The centre, he says, is helping companies understand the importance of

best practices in a high-stakes game.

Henson also warned that in a high-stakes game, there is little room for

waste and inefficiency.

ExxonMobil, he urged, needs suppliers who meet the required objectives

and are prepared to work in what will be a first-class industry.

A floating platform to store pumped oil for transfer has already been

ordered and is to arrive in Guyana for late summer next year.

Locals have been hired for the drill ships that ExxonMobil has used and on

land, a number of operations have started up in preparation where

persons have been employed.

However, ExxonMobil is being heavily criticized for its deal with Guyana

which included a 50/50 profit on oil and two percent on every barrel sold.

However, there has been deep worry about the 50/50 split with

ExxonMobil recording a dismal track record of not playing fair with its

figures.

<< Back to news headlines >>

‘Region three has done exceptionally well’ Tuesday 4th December, 2018 – Guyana Chronicle

ASIDE from the commencement of preparatory works for the new four-

lane Demerara River Bridge, Essequibo Islands-West Demerara (Region

Three) residents can look forward massive infrastructural works to continue

throughout the region in 2019, particularly in the education and health

sectors.

Some $6.3 billion has been allocated to the region for next year. That

represents a $943.5 million increase from the 2018 budget allocation.

“Region three has done exceptionally well over the last reporting period.

We will see major development in every sector and every part of Region

Three,” promised Regional Member of Parliament (MP), for the APNU/AFC

John Adams, as he delivered his presentation during the opening day of

the budget debates on Monday.

“This APNU/AFC government will deliver on our promises and they can rest

assured that no one will be left out. We will transform the economy,

empower the people, build sustainable communities and deliver a good

life to all,” Adams declared.

In his allotted 20 minutes, Adams outlined several of the projects that were

executed in the Region over 2018, and how 2019 budget caters to sustain

the region even further. Some of the new initiatives directly complement

those that were done this year. Following the construction of a special

needs school at Schoonord from funds allocated in the 2018 budget, the

2019 budget has allocated some $14 million to be used for the

procurement of a bus, specially designed for the transportation of

children with special needs and those who are differently abled.

Overall, some $135 million will be spent on education buildings in Region

Three. This year saw works being done to extend, upgrade or build several

new schools in the region, which has experienced massive population

growth over the past few years with the coming on board of several

housing schemes, including Belle West and La Parfaite Harmonie.

The Wales Primary School received a spanking upgrade this year after

years of neglect, while the Vergenoegen Secondary School was

extended and the Uitvlugt Secondary School saw the installation of gas

lines at its laboratory. There was also the rebuilding of the Department of

Education building, which was destroyed by fire in 2009.

The coming year is expected to see even more upgrades and new

initiatives coming on stream. The region will not be left out of the recent

announcement by the Minister of Finance Winston Jordan that several

smart classrooms will be coming on stream. A school in the region is

expected to be earmarked for the setting up of a smart classroom. There’s

to be a reconstruction of the Bagotsville Primary School, and two blocks at

the Leonora Primary.

This is in addition to the secondary school set to be constructed in West

Minister, West Bank Demerara that the Ministry of Education has already

signed a contract for.

Complaints by the region’s residents about the state of their roads have

not gone on deaf ears either. Some $780 million has been budgeted

under the Ministry of Communities for the construction and upgrading of

roads in several communities across the country, including Belle West,

where residents have been complaining continuously about the state of

their roads for some time now.

Residents traversing the Nismes Old Road can also breathe a sigh of relief

and expect works on a long overdue asphalted road to begin next year.

Other areas that can expect road upgrades include Schoonord,

Westminister, La Parfaite Harmonie, Zeelugt and Uitvlugt. Added to the

roads are a number of bridges. Reinforced concrete bridges are to be

constructed in Edingburg, Parika, and Hague Backdam.

In terms of infrastructure in the health sector, the West demerara Regional

Hospital will be getting a concrete bridge, along with an extension of the

out-patient clinic. The Leonora Hospital road will be done fully asphalted,

and there will be an extension of the kitchen and laundry departments at

the Leonora Diagnostic Centre. Construction of staff quarters at the

Leguan Cottage Hospital is also expected to be done. “This will [provide]

for our nurses and doctors who are sent to deliver healthcare and have to

be away from the confines of their home,” Adams said.

<< Back to news headlines >>

‘Peanut’ Profits Make Dividend Premature Monday 3rd December, 2018 – Tribune 242

Bank of The Bahamas (BOB) chairman says it is “premature” to discuss

resuming ordinary shareholder dividend payments when profits to-date

have been “kind of peanuts”.

Wayne Aranha told the BISX-listed institution’s annual general meeting

(AGM) that both Board and management were focused on returning the

troubled lender to sustainable profitability, and higher returns for a bank of

its size, before looking at capital returns to investors.

He added that BOB needed to “get running on a V8 engine” following

years of sustained multi-million-dollar losses that have left it with a

$137.593m accumulated deficit, forcing it to be rescued via two

government bail-outs and a rights issue entirely financed by Bahamian

taxpayers.

Confronted with a question about when payments might resume, Mr

Aranha replied: “It’s premature to talk about when we will pay a common

share dividend... I know everybody is anxious about when we will get to

that point of paying a dividend. It would be premature to guess.

“We, as seen from the level of provisioning, are not yet running on a V8

engine - assuming it’s a V8 and not a V12. I’m hesitant to look to the future

to say when we will get a common share dividend.”

Mr Aranha said he thought BOB last paid a dividend in either 2012 or 2013,

the years just prior to the first Bahamas Resolve transaction in which $100m

worth of government bonds were injected into the bank’s balance sheet

in exchange for loans owed by 13 delinquent borrowers.

Rather than dividends, the BOB chairman said board and management

focus needed to be on sustaining - then growing - BOB’s bottom line

following its recent return to profitability, and generating shareholder

returns at a level consistent with a bank of its size.

“The concentration now must be on sustainable profitability,” Mr Aranha

told shareholders. “We look now and say we made $1.966m [in the 2019

first quarter] compared to $658,000, but after this $15m payment to

preference shareholders (see other article on Page 1B) we will have

$150m in capital. A $1m profit on that is kind of peanuts.

“The board must clearly focus the bank to that point where it makes a

return reasonable for a bank of our size. Whether it’s 8-10 percent or not, I

don’t know, but it’s clearly not 1 percent. That’s where our concentration

is.”

Mr Aranha’s message to investors, and the wider capital markets, is that

BOB’s recovery will be a long-haul despite its taxpayer-financed return to

profitability, and it is likely to be many quarters - even years - before the

bank owned 82.6 percent by the Government will be in a position to

resume dividend payments.’

The BOB chairman said the bank’s loan portfolio was key to its sustained

profitability, because that “is where the money’s to be made”, yet to

acknowledged that “it’s a very competitive market” for credit in The

Bahamas.

BOB’s loan book quality, with 28.92 percent or $101.648m of the net

portfolio in default at end-June 2018, still represents the greatest obstacle

to the bank achieving consistent profitability given that this percentage

remains more than double the commercial banking industry average

despite the shedding of its worst performing business credit.

BOB’s AGM, unlike in previous years, was relatively sparsely attended with

just 30-40 of the 3,000 minority shareholders in attendance. The bank had

placed several notices in the paper advertising the wrong date, giving

December 30 instead of November 30, although this was subsequently

corrected.

Mr Aranha also apologised after the proxy materials mailed to

shareholders inadvertently omitted Phaedra Mackey-Knowles, the

National Insurance Board’s (NIB) investments chief, and the social security

system’s Board representative, from this list of those standing for election

as BOB directors.

The meeting was also temporarily delayed for several minutes at the start

while checks were made to ensure that the Public Treasury, which holds

the Government’s majority interest in BOB, was represented so that a

proper shareholders’ quorum was present.

Mr Aranha, meanwhile, revealed that BOB “has also been plagued with a

relatively high turnover of staff”, although it hoped that the appointment

of a new executive team headed by managing director, Kenrick

Braithwaite, will help resolve this problem.

He added that fast-paced change in the banking industry meant “BOB

needs to move beyond its legacy challenges and re-tool itself”, and

“restore” both its brand and customer trust in the bank.

The BOB chairman, though, said the bank will not expand its branch

network in the Family Islands and elsewhere unless the venture will be

profitable, breaking with how the Government has used it in the past.

Mr Aranha added that BOB would look to technology-driven solutions for

under-served Bahamian communities, adding: “We’re trying to see if there

is a solution resulting in the unbanked and under-banked areas having

access to banking facilities without putting a physical plant there with a

branch and facilities as it’s just too costly.”

Referring to pleas by Long Island MP, Adrian Gibson, for BOB to establish a

branch in his constituency, he continued: “I’m sure he’s not the only one

of the political directorate who’d like to see a bank in their island, but we

can’t do it at a loss to the shareholder.”

Mr Aranha gave a broad outline, rather than any specific details, on

BOB’s turnaround plan and did not identify any markets or niche

opportunities it plans to target to reverse a loan book that has declined to

just $321m at end-September 2018.

He said a “strong risk management culture” and improved sales and

customer service remained key elements of the revival, although BOB’s

new banking system will “take many months to implement” and only be

ready at some point between July 2019 and June 2020.

“One of the issues is that we need to get up to scratch where our systems

are reliable,” Mr Aranha added. “It’s like running an old car. At some point

the bearings wear out, and you have to change them or change the car.

“We’re at a point where some of our systems are aging and changing

them, unfortunately, it doesn’t work like a new Board comes in and they

change. Executives get angry when you say why is it so slow. The answer,

which is quite good, is they say they want to do it right.

“Part of the resources we’re putting into infrastructure is to improve service

delivery. We have to strike the balance between delivery of the service

and doing it in a cost-effective way. It we promise service at a certain

level we must be able to deliver and the system changes are part of

that.”

Mr Aranha said BOB wanted to be “a bank that looks after the interests of

customers and shareholders regardless of a change in the political

directorate”, something he described as vital to the bank’s brand.

“Premises is an area that needs attention and we will get to that,” he told

shareholders. “It’s important not to spend money too early on premises

before you get on the path to sustainable profitability. We’re going to

have to look at physical premises.”

Shareholders earlier approved changes to BOB’s memorandum and

Articles of Association to bring the bank into line with “best practice”,

consolidating into them previously attached amendments that allowed

directors representing the minority shareholders to be appointed to the

Board and the conversion of unissued preference share classes to

ordinary shares.

<< Back to news headlines >>

Bob ‘Reputation’ Boost From $15m Repayment Monday 3rd December, 2018 – Tribune 242

Bank of The Bahamas believes it will boost its “reputation and

creditworthiness” by repaying its last $15m in preference share debt, and

declaring an interest dividend, before year-end 2018.

Wayne Aranha, the BISX-listed institution’s chairman, told shareholders at

its annual general meeting (AGM) that the repayment - besides boosting

the bank’s standing with capital markets investors - will also “eliminate

high cost funding”.

He disclosed that Bank of The Bahamas (BOB) primary regulator, the

Central Bank, has approved both the principal repayment to holders of

Series A and B preference shares plus the declaration of interest on them

via a dividend payment.

BOB’s sustained eight-figure annual losses from 2014-2017 resulted in the

suspension of preference share dividends in December 2016, and their

effective resumption through the year-end payment depends on the

bank having generated sufficient profits to finance the payment.

Mr Aranha said the outstanding interest needed to be paid as it

effectively represented a potential “claim” the preference shareholders

may have against BOB, although he emphasised the dividend’s

declaration was not yet a certainty due to the conditions imposed by the

Central Bank.

“On September 28, 2018, the bank obtained the approval of the Central

Bank to redeem outstanding and issues preference shares amounting to

$15m,” the BOB chairman revealed, adding that the required 90 days’

redemption notice was immediately given to investors.

He added that the regulator had also given approval to pay the interest

dividend “on condition that the bank generates a profit from which

dividends can be paid”. The date for both the principal and interest

payment is December 27, 2018.

“The board intends to declare payment of a dividend,” Mr Aranha said.

“It is envisioned such payment will be made on December 27, 2018,

concurrent with the redemption of the remaining issued and outstanding

preference shares.”

Explaining the consequences, he added that BOB will no longer have

preference shares among its balance sheet capital, which will be

reduced as a result of the principal repayment. The chairman, though,

later adopted a more cautious tone on the interest dividend payment

during the AGM’s “question and answer” period with shareholders.

“There’ll be no more principal for certain. I was cautious in my statement

that we’ll likely be declaring a dividend on the same date,” Mr Aranha

said, having earlier explained that “dividends remain outstanding and

have to be paid” since they represented a potential investor “claim”

against BOB.

With the Series A and B preference shares priced at Prime plus 2 percent,

and carrying a 6.25 percent interest coupon, the BOB chairman said

repaying the institutional and high net worth investors who hold them will

eliminate an expensive funding source for the still-recovering commercial

bank.

“The bank’s reputation and creditworthiness, in the view of the Board and

management, will effectively be enhanced by the repayment and

redemption of the preference shares,” Mr Aranha concluded.

BOB unveiled similar action at its year-end 2017 AGM, when it announced

the $6.4m principal repayment to holders of its Series D and E preference

shares to avoid a default caused by missing three consecutive interest

dividend payments.

Mr Aranha, meanwhile, said the “cautious optimism” shown at last year’s

BOB AGM had been justified by the institution’s return to profitability in

2018 and for the 2019 first quarter, with total comprehensive income for

the latter period up by 199 percent or near-tripling to $1.966m.

He conceded, though, that multiple risks still faced the troubled institution

which will ultimately cost taxpayers more than $300m to rescue via the

two Bahamas Resolve-led bail-outs and a $40m rights issue.

Mr Aranha, conceding that the profits delivered thus far “fall short of the

returns shareholders expect”, added that loan portfolio growth - “so

significant to our results” - had been elusive and caused a build-up of

cash and cash equivalents equalling $176m at the end of the 2019 first

quarter.

BOB’s liquid asset capital ratio was more than double the Central Bank’s

100 percent requirement at both year-end 2018 and end-September, and

the chairman said: “We need to lay-off some of this money in loans,

investments. We’ve been able to place those funds, when we’ve not

been able to lend, into Treasuries [Bills].”

The bank’s 2018 annual report disclosed that net loans and advances to

customers for the 12 months to end-June fell by $96.6m or 21.56 percent,

down from $448.1m to $351.5m. This credit portfolio slipped by a further

$20m during the 2019 first quarter to $331.315m.

Mr Aranha added that BOB also took a $4.7m equity hit at the beginning

of its 2019 financial year due to the adoption of new accounting

standards, which require itself and other banks to now assess potential

loan losses on a forward-looking basis as opposed to when they actually

occur.

This, though, has been partially offset by the profits generated during the

three months to end-September 2018 - a result which, Mr Aranha said,

justified the “cautious optimism” shown at year-end 2017 as “warranted”.

Yet he was quick to point out: “The Board remains prudently watchful of

the risks that confront the bank, and the results - while positive - fall short of

the returns shareholders expect. We believe we’ve taken the first steps on

the path to sustained profitability and a return to shareholder value.”

<< Back to news headlines >>

Sunrise Airways will provide the connection Havana / Santo Domingo Monday 3rd December, 2018 – Haiti Libre

Monday, the businessman and philanthropist Philippe Bayard, President of

the private Haitian airline Sunrise Airways based in Port-au-Prince, whose

head office is located in Haiti announced the opening of a new

connection between Santo-Domingo (Dominican Republic) and Havana

(Cuba). According to Bayard the excellent historical relationship between

Haiti and Cuba was "a determining factor" when choosing destinations on

the island.

For this destination, Sunrise Airways will operate two weekly flights,

Wednesday and Sunday, from Santo Domingo at 7:00 am. The return flight

will depart from Havana at 5:30 pm.

Philippe Bayard said he was pleased with the opening of this new

destination in the Caribbean, which positions Sunrise Airways "as one of

the fastest growing airlines in the region, exceeding 200,000 passengers in

the ten first months of 2018."

Recall that Sunrise Airways began serving Santiago (Cuba) from Port-au-

Prince in 2014, then extended its connections to Havana. Sunrise Airways

plans to open two more routes to Santa Clara and Holguin in 2019.

The inaugural flight to the Cuban capital is scheduled for December 5.

<< Back to news headlines >>

U.S. expects immediate action from China on trade commitments Tuesday 4th December, 2018 – Reuters

The United States expects China to take immediate action to cut tariffs on

U.S. car imports and end intellectual property theft and forced

technology transfers as the two countries move toward a broader trade

deal, a White House official said on Monday.

President Donald Trump and Chinese President Xi Jinping on Saturday

agreed to a ceasefire in a trade war that has seen the flow of hundreds of

billions of dollars’ worth of goods between the world’s two largest

economies disrupted by tariffs.

The two leaders agreed to hold off on imposing more tariffs for 90 days

starting Dec. 1 while they negotiate a deal to end the dispute following

months of escalating tensions.

Global markets rose on Monday to their highest levels in about three

weeks on the news. On Wall Street, the Dow Jones Industrial Average, the

S&P 500 and the Nasdaq Composite all gained more than 1 percent.

U.S. soybean futures rose to their highest level since at least August, part of

a broader commodities rally.

China offered more than $1.2 trillion in additional commitments on trade

at the dinner between Xi and Trump on Saturday, Treasury Secretary Steve

Mnuchin said on Monday.

White House economic advisor Larry Kudlow said the figure was a broad

benchmark that would depend on private transactions for U.S. goods and

was subject to market conditions.

China committed to start lifting tariffs and non-tariff barriers immediately,

including reducing its 40 percent tariffs on autos, Kudlow said.

“We expect those tariffs to fall to zero,” he told reporters.

Americans would get a majority ownership in Chinese companies for the

first time, Kudlow said on CNBC. Mnuchin, also speaking on CNBC, hailed

a shift in tone.

Trump has made improving the terms of trade for the United States a

signature of his “America First” presidency and has prided himself on

confronting Beijing over trade practices that the United States and its allies

complain are unfair.

“My meeting in Argentina with President Xi of China was an extraordinary

one,” Trump tweeted on Monday. “We are dealing from great strength,

but China likewise has much to gain if and when a deal is completed.

Level the field!”

China’s Foreign Ministry spokesman Geng Shuang on Tuesday referred

questions on the details of the trade agreement to the commerce

ministry, which has yet to provide any.

He reiterated that during the meeting the two leaders agreed their

economic teams would step up talks to work toward getting rid of all the

tariffs, and aim for a mutually beneficial deal so that trade and economic

relations can get back on a “healthy” track as soon as possible.

He gave no further details.

Kudlow, director of the National Economic Council, said he, Mnuchin and

U.S. Trade Representative Robert Lighthizer held private meetings in

Argentina with China’s Vice Premier Liu He, who told them Beijing would

move quickly on its new commitments.

“The history here with China promises is not very good. And we know

that,” Kudlow said. “However, I will say this: President Xi has never been

this involved.”

Kudlow said: “They cannot slow walk this, stall this, meander this. Their

word: ‘immediately.’”

Administration officials expressed a mixture of scepticism and optimism on

Monday over whether China would deliver. None of the commitments

were agreed to in writing and many specifics have yet to be worked out.

Kudlow said U.S. officials would monitor Chinese progress closely.

Negotiators will actually have less than 90 days to reach a deal because

of holidays in both countries over the next three months, Chinese

ambassador to the United States, Cui Tiankai, told reporters on Monday.

LIGHTHIZER TO LEAD TALKS

Trump has appointed Lighthizer, who just completed a new trade

agreement with Canada and Mexico and is one of the administration’s

most vocal China critics, to oversee the new round of talks, officials said.

The appointment may signify a harder line with Beijing and marks a shift

from the past, when Mnuchin had a lead role.

“He’s the toughest negotiator we’ve ever had at the USTR and he’s going

to go chapter and verse and get tariffs down, non-tariff barriers down and

end all these structural practices that prevent market access,” White

House trade adviser Peter Navarro told National Public Radio on Monday.

The White House is stepping up efforts to prod other countries to build

more vehicles in the United States. Lighthizer and other officials, including

Kudlow, are set to meet with German automakers, including the chief

executives of Volkswagen AG (VOWG_p.DE) and Daimler AG, on

Tuesday, people briefed on the matter said.

Kudlow said the meeting was not meant to focus on potential tariffs,

though Trump still had that option in his “quiver,” and the automakers

would be encouraged to build engines in the United States.

On Sunday, Trump tweeted that China had agreed to cut import levies on

American-made cars.

Chinese regulators did not respond to requests for comment on the tweet.

Neither country mentioned auto tariffs in their official briefings of the

meeting on Saturday.

<< Back to news headlines >>

OPEC works on deal to cut output, still needs Russia on board Tuesday 4th December, 2018 – Reuters

OPEC and its allies are working towards a deal this week to reduce oil

output by at least 1.3 million barrels per day, four sources said, adding that

Russia’s resistance to a major cut was so far the main stumbling block.

OPEC meets on Thursday in Vienna, followed by talks with allies such as

Russia on Friday, amid a drop in crude prices caused by global economic

weakness and fears of an oil glut due largely to a rise in U.S. production.

The producer group’s de facto leader, Saudi Arabia, has indicated a

need for steep reductions in output from January but has come under

pressure from U.S. President Donald Trump to help support the world

economy with lower oil prices.

Possibly complicating any OPEC decision is the crisis around the killing of

journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October.

Trump has backed Saudi Crown Prince Mohammed bin Salman despite

calls from many U.S. politicians to impose stiff sanctions on Riyadh.

The sources, three from the Organization of the Petroleum Exporting

Countries and one from a non-OPEC producer, said the meetings were

taking place in a difficult environment and that Russia’s position would be

key in reaching a deal.

“Russia is playing tough,” one of the OPEC sources said.

Another OPEC source said: “The Saudis are working hard on the cut. But if

Russia says no cut, then we (OPEC) won’t cut.”

Russian sources have indicated the country could contribute some

140,000 bpd to a reduction, but Middle East-dominated OPEC insists

Moscow cut by 250,000-300,000 bpd.

Two sources said talks were focusing on a pro-rata cut of 3-3.5 percent

from October output levels, with no exemptions for any member.

Sources also said OPEC could delay a decision to cut if the main criteria

such as Russia’s involvement were not met, even though doing so would

mean a further fall in prices.

“OPEC can always meet again in February, for example, and decide on a

cut then. Those who were not able or willing to cooperate will be wanting

to cut then,” one source said.

Saudi Arabia previously insisted on a need to reduce production.

It was unclear whether the apparent shift in position was caused by OPEC

using negotiation tactics to bring Russia on board or by pressure from

Trump to refrain from cutting output.

DAMAGE AVOIDANCE

Iraq’s oil minister said OPEC must come up with a medium- to long-term

strategy to achieve crude price stability and minimize damage to oil

markets caused by geopolitics.

Thamer Ghadhban said Iraq would work to help balance markets and

bolster prices. Iraq is OPEC’s second-biggest producer after Saudi Arabia.

Solutions to low oil prices should “not be limited to decreasing output”,

Ghadhban said in a statement, adding that any agreement reached this

week should avoid damage to the interests of OPEC and non-OPEC oil

producers.

In October 2018, OPEC pumped 32.916 million bpd, while its non-OPEC

allies pumped 18.252 million bpd, according to the group’s internal data.

The non-OPEC source said a deal could still be done this week, though

details remained unclear: “The Saudis and Russians have an agreement to

cut. They are just working on the final details on the volumes and

mechanisms.”

Brent oil prices LCOc1 rose more than 2 percent on Tuesday, boosted by

expectations OPEC would reduce output [O/R].

<< Back to news headlines >>

World stocks shrivel as trade truce doubts, economic woes gather Tuesday 4th December, 2018 – Reuters

Deflating hopes of a swift resolution to the Sino-U.S. trade war knocked

world stocks off three-week highs on Tuesday, while growing fears the U.S

economy could be headed for recession sooner than expected weighed

on the dollar.

The rapprochement between U.S. President Donald Trump and China’s Xi

Jinping at the weekend G20 meeting had fired up markets on Monday.

But the upbeat mood quickly dissipated on scepticism that Washington

and Beijing can resolve deep-seated differences on trade in the agreed-

upon three-month negotiating window.

Adding to market woes, was an inversion of the short end of the U.S. yield

curve which raised the spectre of a possible U.S. recession.

Following declines on Asian bourses, where Japan’s Nikkei stock index

closed 2.4 percent lower, the mood was sombre in Europe with the wider

blue chip index slipping 0.3 percent. Frankfurt’s DAX and Paris’ CAC 40 fell

0.6 percent while MSCI’s index of world stocks declined 0.1 percent.

“The initial relief rally was never going to last. Investors need more detail

now in order for that risk on sentiment to survive,” said Jasper Lawler, head

of research at London Capital Group. “So far that detail has not been

coming through and investors have more questions than answers.”

There was confusion over when the 90-day period, during which the U.S.

and China would hold off on imposing more tariffs, would start. A White

House official said it started on Dec. 1, while earlier, White House

economic adviser Larry Kudlow told reporters it would start on Jan. 1.

Moreover, none of the commitments that U.S. officials said had been

given by China - including reducing its 40 percent tariffs on autos - were

agreed to in writing and specifics had yet to be hammered out.

Meanwhile the U.S. yield curve focused investors’ minds. The curve

between U.S. three-year and five-year and between two-year and five-

year paper inverted on Monday - the first parts of the Treasury yield curve

to invert since the financial crisis, excluding very short-dated debt.

Analysts expect the two-year, 10-year yield curve - seen as a predictor of

a U.S. recession - to follow suit.

On Tuesday, the yield on benchmark 10-year Treasury notes was at 2.95

percent compared with its U.S. Monday close of 2.99 percent. And the

spread between 10-year and two-year Treasury yields tightened to

around 13 basis points - hitting its narrowest level since July 2007.

“The focus is now shifting to the inverted U.S. bond yield curve which has

negative connotations, while implying the U.S. economy is heading

towards what was only a few weeks ago an improbable economic

slowdown,” said Stephen Innes, head of trading for APAC at Oanda.

“Now, even recessionary fear is starting to raise its ugly head.”

However, analysts said U.S. manufacturing data released on Monday

pointed to a stronger economic outlook, with new orders a “key driver” in

boosting activity.

Meanwhile oil prices extended gains, adding to Monday’s 4 percent

surge as investors bet a key OPEC meeting on Thursday could deliver

supply cuts.

U.S. crude and Brent crude added 1.6 percent to $53.82 and $62.7 per

barrel respectively. [O/R]

SOFTER DOLLAR

The dollar weakened against major currencies, weighed down by falling

U.S. bond yields.

The dollar index, which tracks the greenback against a basket of peers,

softened 0.5 percent to 96.53, while the euro added 0.6 percent to

$1.1416.

The dollar also weakened 0.8 percent against the Japanese yen and fell

more than 0.5 percent to its weakest level since September against the

offshore Chinese yuan to 6.83 yuan.

Federal Reserve Chairman Jerome Powell was scheduled to testify on

Wednesday to a congressional Joint Economic Committee, but the

hearing was postponed because of a national day of mourning for U.S.

President George H.W. Bush, who died on Friday.

The dollar came under pressure last week on Powell’s comments that

rates were nearing neutral levels, which markets widely interpreted as

signalling a slowdown in the Fed’s rate-hike cycle.

Meanwhile sterling was back on the Brexit rollercoaster, rallying sharply

after the EU’s top legal adviser said Britain had the right to withdraw its

Brexit notice.

This was a bounce back from two-month lows it hit in early trade against

the dollar on concern about British parliamentary approval for a proposed

Brexit deal.

The pound last stood 0.7 percent firmer at $1.2814 while weakening 0.2

percent against the euro to 89.10 pence.

Spot gold jumped on the weaker dollar, trading up 0.5 percent at

$1,237.24 per ounce. [GOL/]

<< Back to news headlines >>

Oil jumps 2 percent on expectations of production cuts Tuesday 4th December, 2018 – Reuters

Oil prices rose more than 2 percent on Tuesday, extending gains ahead of

expected output cuts by producer cartel OPEC and a mandated

reduction in Canadian supply.

Brent crude oil LCOc1 rose $1.55 or 2.5 percent to a high of $63.24 by 0955

GMT. U.S. light crude CLc1 was $1.25 higher at $54.20.

Both benchmarks climbed around 4 percent on Monday after U.S.

President Donald Trump and Chinese President Xi Jinping agreed at a

meeting of the Group of 20 industrialized nations (G20) to pause an

escalating trade dispute.

“The market seems positively oriented following the G20 developments

and heading into the OPEC meeting on Thursday,” BNP Paribas

commodities strategist Harry Tchilinguirian told Reuters Global Oil Forum.

“A commitment by Russia to cooperate with Saudi Arabia and achieve

an agreement at the next OPEC meeting has certainly lifted spirits,” he

added.

The Middle East-dominated Organization of the Petroleum Exporting

Countries will meet on Thursday in Vienna to agree future output and will

discuss strategy with other producers outside OPEC, including Russia.

OPEC and its allies are working towards a deal to reduce oil output by at

least 1.3 million barrels per day (bpd), OPEC sources have told Reuters,

adding that they were still talking to Russia about the extent of its

production cuts.

“We expect OPEC to follow suit and agree to a production cut in Vienna

this coming Thursday,” U.S. bank Goldman Sachs said in a note to clients.

“A cut in OPEC and Russia production of 1.3 bpd will be required to

reverse the ongoing counter-seasonally large increase in inventories.”

It added that it expected a joint effort by OPEC and Russia to withhold

supply to push Brent oil prices “above the mid-$60 per barrel level”.

Helping OPEC in its efforts to rein in emerging oversupply was an order on

Sunday by the Canadian province of Alberta for producers to scale back

output by 325,000 bpd until excess crude in storage is reduced.

OPEC’s biggest problem is surging production in the United States where

output, mostly from its southern shale fields, has grown by around 2 million

bpd in a year to more than 11.5 million bpd. C-OUT-T-EIA

Barclays bank pointed out in a note to clients that oil production in the

state of Texas alone “reached 4.69 million bpd in September, compared

with Iraqi output of 4.66 million by our estimates”.

Iraq is OPEC’s second-biggest oil producer, behind Saudi Arabia.

<< Back to news headlines >>

European Commission looking to strengthen euro's reserve currency

muscle Tuesday 4th December, 2018 – Reuters

The European Commission has drawn up plans to boost the euro’s muscle

as a global reserve currency, one of its top officials said on Tuesday.

Olivier Guersent, the Commission’s Director General that oversees much

of its financial markets work said there was a “logic” in increasing the

euro’s importance as a reserve currency, although it would also bring

greater “responsibility”.

“Still it would be greatly beneficial if it was the case. That is why we are

putting forward the recommendation of it tomorrow,” he said at a

Financial Times banking conference.

He wouldn’t expand on the plans ahead of their formal launch, but one

of the areas where the euro still lags the dollar, and increasingly in recent

years the Chinese yuan, is the commodity and energy markets.

“Of course the ultimate state of being an international reserve currency

will probably have to come with deeper reforms,” Guersent added.

<< Back to news headlines >>

Euro rises as Treasury yield drop whacks dollar; yuan at two-month high Tuesday 4th December, 2018 – Reuters

The euro rallied above $1.14 on Tuesday as a fall in U.S. Treasury yields

encouraged further selling of the dollar, with the yen and trade-linked

currencies such as the Chinese yuan also racking up strong gains.

Investor jitters about China and the United States’ ability to resolve their

trade differences did not spread into the foreign exchange market, with

emerging market currencies and the Australian and Canadian dollars

building on Monday’s gains.

The dollar, measured against a basket of currencies, fell to its weakest

since November 22.

U.S. Treasury yields fell overnight, with two-year yields rising above those of

longer-dated 5-year notes for the first time in more than a decade.

The so-called “inversion” of the yield curve is the first since the beginning

of the financial crisis in 2007 and to many investors sounded an alarm

about a looming U.S. economic slowdown.

Continuing interest rate hikes have sent short-dated yields higher while

tepid inflation and slowing economic growth expectations have kept

longer-dated yields pinned down.

“Clearly investors think the Federal Reserve is going to become more

cautious and data dependent with rate hikes. We are basically

approaching the end of the rate hiking cycle. That is negative for the

dollar,” said Esther Reichelt, FX strategist at Commerzbank.

The dollar index dropped 0.6 percent to 96.473 .DXY, while the euro

added as much as half a percent to $1.1419 EUR=.

Reichelt said that despite the headwinds for the dollar, without a

resolution on the European Union’s dispute with Italy over its proposed

budget, or euro-specific positive developments, euro/dollar would likely

trade in a range of $1.12 to $1.16.

The recent weakness in the dollar comes against the backdrop of a

temporary truce in the US-China trade conflict agreed over the weekend,

which has bolstered investor confidence in riskier currencies versus the

safe-haven greenback.

The dollar fell half a percent against the offshore yuan CNH= to 6.8421 on

Tuesday, its weakest level since September. On Monday, the dollar shed

more than 1 percent versus the yuan, its steepest fall since Aug. 25.

YUAN STRENGTH

Analysts said that investors were nervous about the trade war truce, with

only vague statements from both U.S. President Donald Trump and

Chinese leader Xi Jinping. The edgy mood was evident in weakness in

stock markets on Tuesday.

“On the other hand, it hasn’t prevented the Chinese yuan from making

further gains overnight and... the yuan is as much a leader as a follower of

global FX mood,” said Kit Juckes, FX strategist at Societe Generale.

The Australian dollar AUD=, generally sensitive to global risk sentiment, was

also further boosted by the broad-based dollar selling, gaining 0.4 percent

in Asian trade to $0.7384. The Reserve Bank of Australia kept its policy cash

rate unchanged on Tuesday in a widely expected move.

The yen JPY= gained 0.8 percent to 112.74 yen per dollar and was on

course for its biggest one-day rise since July.

Emerging market currencies including the Mexican peso MXN= and Indian

rupee INR= were mostly up against the dollar on continued relief over

Washington and Beijing's trade war ceasefire.

<< Back to news headlines >>

Bank of England's Carney hits back at critics of Brexit scenarios Tuesday 4th December, 2018 – Reuters

Bank of England Governor Mark Carney defended the central bank’s

warnings of a potentially major economic hit from Brexit which angered

lawmakers opposed to Prime Minister Theresa May’s plans for leaving the

European Union.

The BoE said last week that under a worst-case exit from the European

Union, Britain could suffer greater damage to its economy than during the

global financial crisis.

Carney told lawmakers on Tuesday that the scenarios set out by the BoE

were based on detailed preparatory work to ensure banks and other

lenders were ready for Brexit, and were not off-the-cuff forecasts.

“There’s no exam crisis. We didn’t just stay up all night and write a letter to

the Treasury Committee,” Carney said at a committee hearing in

parliament. “You asked for something that we had, and we brought it,

and we gave it to you.”

Less than four months before Brexit, it remains unclear whether Britain will

leave the EU with a transition deal to smooth the shock for the economy.

May agreed a plan with EU leaders last month but it faces deep

opposition in parliament including from within May’s own Conservative

Party. The plan faces a key vote on Dec. 11.

Pro-Brexit critics of Carney, who have long accused him of political

meddling in the debate about Britain’s relationship with the EU, dismissed

last week’s BoE report as scare-mongering.

Former BoE Governor Mervyn King joined the criticism on Tuesday when

he lamented the central bank’s involvement in what he said was an

attempt to frighten the country about Brexit.

“It saddens me to see the Bank of England unnecessarily drawn into this

project,” King said in an article published on Bloomberg.

BREXIT SHOCKS

Carney stressed the worst-case scenarios were “low-probability events in

the context of Brexit” which the central bank needed to consider to make

sure Britain’s banking system could withstand any Brexit shocks.

“We’re already sleeping soundly at night, because we have the financial

sector, the core of the financial sector, in a position that it needs to be for

a tough scenario.”

But he told lawmakers that the price of food could go up by 10 percent if

Britain left the EU with no deal and no mitigating arrangements to avoid

chaos at the country’s ports.

He said Britain’s ports were not ready for even a managed shift to World

Trade Organization rules for the country’s exports and imports with the EU.

“Don’t assert what is not correct,” he snapped at one lawmaker who said

the BoE had not considered the possibility of substituting trade with the EU

for other markets.

Carney reiterated his opposition to ceding decision-making over rules for

the banking sector to the EU after Brexit, given the scale of Britain’s

financial services sector.

“We would not be comfortable...outsourcing supervision of this incredibly

complex, incredibly important financial sector,” he said.

Deputy Governor Jon Cunliffe said a Norway-style Brexit — in which Britain

would stay in the EU’s single market and follow the bloc’s rules without any

say on them — was undesirable given Britain’s finance industry was 20

times the size of Norway’s.

Some lawmakers have suggested a Norway-style Brexit could be a

temporary solution for Britain as it struggles to find a way to strike a new

long-term relationship with the EU.

<< Back to news headlines >>

EU offering euro bond to provide aid to Ukraine, Georgia Tuesday 4th December, 2018 – Reuters

The European Union has opened a tap of its outstanding April 2033 euro

bonds to provide 500 million euros of aid to Ukraine and 15 million euros of

aid to Georgia, an EU official told Reuters on Tuesday.

The deal was connected to last week’s European Commission approval of

500 million euros ($568 million) of aid to Ukraine, the official said.

“When we go to the market to raise funds, we link it directly to the

beneficiary, which explains why we are going to market now in the first

week of December,” the official said, asking to remain anonymous as the

matter was not yet public.

Initial marketing levels on the 15-year bond sale are at 4 basis points

below mid-swaps, two banking sources said, suggesting a yield of around

1.18 percent, based on Tradeweb prices.

The EU official said the lending terms to Ukraine and Georgia will have the

same maturity and coupon as the EU bond deal.

That would represent a substantial saving for Ukraine compared with its

own borrowing costs in the bond market. A Ukraine September 2032

government bond, for example, was trading at a yield of 9.88 percent on

Tuesday.

The deal would bring the outstanding April 2033 bond up to 2.615 billion

euros. Settlement is due next Monday, Dec. 11, according to the banking

sources. That means the funds will be available to the EU as early as next

week.

The loan to Ukraine, the main cause for the bond deal, will come with

economic policy conditions, but it is not restricted to a particular project

or purpose, the official said.

Last week, the European Commission said on its website it has approved

the disbursement of the 500 million euros of a new Macro-Financial

Assistance programme to Ukraine. [bit.ly/2rgGmE1 ]

Commerzbank, Goldman Sachs, LBBW and TD Securities are arranging the

bond issue.

<< Back to news headlines >>

European shares dip as doubts grow about U.S.-China trade truce Tuesday 4th December, 2018 – Reuters

European shares traded in negative territory on Tuesday morning as

investors started to question whether the truce agreed by the United

States and China on their trade dispute would lead to a long-term deal.

After enjoying a rally for its first day of trading in December, Germany’s

DAX .GDAXI – the most sensitive to China and trade war fears – was down

0.6 percent at 0906 GMT.

The pan-European STOXX 600 fell 0.3 percent.

“The number one driver for global risk sentiment is the U.S.-China trade

talks, which suddenly don’t look as promising as they did over the

weekend,” wrote Commerzbank rates strategist Christoph Rieger.

The European automotive sector .SXAP, which is most sensitive to trade

war fears, was the worst performing one, down 1.7 percent.

The tech sector .SXAP was also a big loser, down 0.9 percent.

Chipmakers, which are also heavily exposed to China and trade sustained

heavy losses with AMS (AMS.S) down 4.7 percent, Siltronic (WAFGn.DE)

down 3.8 percent.

Adding to the weak sentiment, the yield curve between U.S. three-year

and five-year notes and between two-year and five-year inverted on

Monday, a first since the financial crisis, excluding very short-dated debt.

Analysts now fear an inversion of the two-year, 10-year yield curve could

be imminent and point toward a possible U.S. recession.

“Recessionary fear is starting to raise its ugly head,” wrote Stephen Innes

at broker Oanda.

France’s JCDecaux (JCDX.PA) posted one of the worst individual falls,

down about 6 percent after Exane BNP Paribas reinitiated its coverage of

the stock with an “underperform” rating.

French catering group Elior (ELIOR.PA) sank 7.3 percent after cutting its

sales growth outlook, and Belgian postal services firm Bpost plunged 20

percent after a profit warning.

Energy stocks were among the few gainers as oil prices rose amid

expected OPEC-led supply cuts and a mandated reduction in Canadian

output.

BP (BP.L) rose 0.6 percent and Royal Dutch Shell (RDSa.AS) 0.5 percent.

German industrial gases group Linde (LINI.DE) will replace British bank

Barclays (BARC.L) on the leading index of pan-European stocks STOXX

Europe 50 .STOXX50 STOXX Ltd, the operator of Deutsche Boerse Group's

index business, said.

The change comes as part of the quarterly reshuffle and will be effective

at the opening of European trading on Dec. 24, STOXX said on Monday.

<< Back to news headlines >>

Dollar weakens as U.S. bond yields fall, 3-5-year curve inverts Tuesday 5th December, 2018 – Reuters

The dollar weakened in Asia on Tuesday as U.S. Treasury yields fell to three-

month lows, with investors fretting over a possible pause in the Federal

Reserve’s rate-hike cycle and portents of recession seen in a yield curve

inversion.

The U.S. 10-year Treasury yield fell to 2.94 percent on Tuesday, its lowest

level since mid-September. The difference in yield between the U.S. 2-year

and 10-year tightened to its smallest since July 2007.

“Falling U.S. yields are a negative for the dollar, especially versus the major

currencies,” said Rodrigo Catril, senior currency strategist at NAB.

The curve between 3-year and 5-year notes inverted for the first time since

2007 on Monday and was last at minus 1.2 basis points.

The 2-year and 10-year yield curve is a key focus for investors as an

inversion is seen as predictor of a U.S. recession. A yield curve is said to be

inverted when yields on longer-dated maturity bonds are lower than

shorter-dated bonds.

The yield curve has flattened as continuing interest rate hikes send short-

dated yields higher, while longer-dated Treasury yields are kept down by

tepid inflation and slowing global growth.

Catril added that U.S. Treasury yields are near crucial technical support

levels, a break of which could add further pressure on U.S. yields and the

dollar. The dollar index, a gauge of its value versus six major peers, was off

0.23 percent at 96.8. The weakness in the dollar comes against the

backdrop of a temporary truce in the US-China trade conflict, which has

bolstered investor confidence in riskier currencies versus the safe-haven

greenback. The dollar had been supported for most of 2018 by a robust

U.S. economy and a relatively hawkish Fed, which is widely expected to

raise its policy interest rate later this month.

Markets have priced in an 87 percent probability of a rate hike at the

Fed’s Dec. 18-19 meeting.

The dollar came under pressure last week when the market took

comments from Fed Chair Jerome Powell as signalling a slower pace of

rate hikes.

A more dovish tone from the Fed last week has led markets to question

how many times the central bank will hike rates in 2019.

“Given data remains strong, we think the Fed will hike twice in 2019 and

that’s more than what the market is pricing in right now...we remain

moderately bullish on the dollar,” said Nick Twidale, chief operating officer

at Rakuten Securities.

Currencies such as the Chinese yuan, which were battered in the US-

China trade war, are expected to trade stronger versus the greenback in

the coming weeks as investor sentiment improves.

The dollar fell 0.5 percent against the offshore yuan to 6.8375. On

Monday, it lost 1.07 percent, its steepest percentage fall since Aug. 25.

“For now, it seems China has got the best out of G20 and we expect the

yuan to remain supported,” added Twidale.

However, he warned that markets need to see a further easing in trade

tensions for the risk-on rally to continue.

The Australian dollar benefited from the broad-based dollar selling,

gaining 0.2 percent in Asian trade at $0.7368. The Reserve Bank of

Australia kept its policy cash rate unchanged on Tuesday in a widely

expected move.

The yen traded at 113.05 to the dollar, with the greenback losing 0.5

percent versus the Japanese currency.

Elsewhere, sterling was gained 0.2 percent to trade at $1.2744 due to

broad dollar weakness. On Monday, the pound fell below $1.27 for the first

time since Oct. 31.

Sterling has posted losses for three consecutive weeks as traders bet that

British Prime Minister Theresa May will not be able to pass her Brexit deal

through parliament on Dec. 11.

<< Back to news headlines >>

China central bank chief says will keep monetary policy flexible Tuesday 4th December, 2018 – Reuters

China’s central bank will keep monetary policy flexible and adjust it

appropriately according to changes in the country’s economic situation,

bank Governor Yi Gang said.

Yi’s comments come amid widespread expectations that the central

bank will ease policy further in coming months to support China’s

economic growth, which has cooled to the weakest pace since the

global financial crisis.

However, some of the pressure for more immediate action may have

been lifted by a weekend agreement between the United States and

China for a temporary truce in their trade war to allow for further

negotiations.

When an economy begins overheating, Yi said tools must be used to

allow a “slow release of air” and a “soft landing”, while during times of

recession or external shocks financial markets must be stabilized and

public confidence shored up.

Yi made the comments in an article in the China Finance magazine,

which is published by the People’s Bank of China (PBOC), to

commemorate the 40th anniversary of its landmark economic reforms

and opening up under former Chinese leader Deng Xiaoping.

The PBOC has already slashed banks’ reserve requirements four times this

year and brought down market interest rates to relieve funding strains on

cash-strapped companies.

But talk began to swirl recently that policymakers may be weighing more

aggressive action to jumpstart the economy — such as the first

benchmark lending rate cut in three years — if Washington followed

through on its threat to sharply ramp up trade pressure on China at the

start of the new year.

To be sure, China’s central bank has plenty of policy tools to choose from

to bring down rates.

Ming Ming, a former PBOC official and head of fixed income research at

Citic Securities in Beijing, said guiding the loan prime rate (LPR) lower is a

“soft” option for cutting interest rates, and is more reasonable compared

with adjusting benchmark interest rates.

“We believe (the authorities) will cut policy rates, such as open market

operation and medium-term lending facility rates, to guide market rates

lower. That will transmit to the LPR and drag lending rates lower,” he said

in a note on Tuesday.

Markets are now hoping for signals on 2019 economic priorities from

several key policy meetings in coming months.

The Central Economic Work Conference (CEWC) is usually held in mid-

December. Key growth targets and policy goals are discussed but

typically not announced until the National People’s Congress in March.

The Sino-U.S. trade agreement “suggested that the gap between the two

sides is narrowing, a situation that China was also hoping to reach as it

settles China’s biggest source of uncertainty. And it will set the tone for the

plenum and future reform and opening,” said Chen Xingdong, chief

China economist at BNP Paribas in Beijing.

Markets are now awaiting the fourth plenum of the 19th Party Congress,

where the main objective is to set a general tone for the country’s

development.

A rebound in the yuan currency following the trade deal — if sustained —

could give policymakers more room for further easing, some market

watchers say. Loosening policy while the yuan was under pressure from

trade tensions had raised the risk of triggering capital outflows.

The yuan posted its biggest daily gain in nearly three years on Monday,

firming 1 percent against the U.S. dollar as weary Chinese markets

welcomed news of the trade ceasefire.

It gained another 0.4 percent on Tuesday. As of 0343 GMT the onshore

spot yuan CNY=CFXS traded at 6.8565 per dollar, up more than 1,000 pips

from Friday's late-night closing price of 6.9590.

Chinese 10-year treasury futures for March delivery CFTH9 were up 0.3

percent at 97.060 on Tuesday morning, supported by expectations of

easing.

Chinese Premier Li Keqiang on Monday reiterated confidence that Beijing

will meet its annual economic growth target of around 6.5 percent this

year, despite the risk of a protracted trade war with the United States.

But talk is already growing over what targets the government will set for

next year, and what that may signal in terms of fiscal and monetary policy

adjustments.

Some analysts believe China’s growth could cool to as low as 6 percent in

2019 if trade tensions persist, which would be the weakest pace the

country has seen since 1990.

<< Back to news headlines >>

No private sector increases just yet Monday 3rd December, 2018 – Barbados Today

Private sector workers who might be expecting a wage increase because

of the proposed reduction in corporation tax could forget about it, at

least for now.

In fact, President of the Barbados Chamber of Commerce and Industry

(BCCI) Ezra Prescod said it would be “reckless” if he should agree that

private sector bosses give their workers a pay hike without first

understanding what their businesses have gone through over the past

decade.

He was responding to suggestions made last week by Minister of Transport,

Works and Maintenance Dr William Duguid, who pleaded with private

sector operators to give their workers a wage increase in a bid to spur

economic recovery.

Duguid had argued that it was only fair for the local private sector to give

an increase to workers considering Government’s recent decision to lower

the corporation tax rate from 30 per cent to be between zero and 5.5 per

cent, effective January 1, 2019.

However, Prescod suggested that should private sector workers get an

increase in wages it would have to be “some ways out”.

“To speak now to wage increases would be reckless of me as a

representative of the private sector without having an understanding of

what businesses have to really recover, because you would imagine that

some would have gone through financing to keep their businesses open,

some would have really cut as much as they could cut and really now

need to stabilize their own businesses to continue into the future,” said

Prescod.

“I am certain though that once they are able to do so, people in a bid to

become more competitive in the world economy need to invest in

training, they need to ensure they have the right talent and properly

positioned talent and also ensure that the talent that they have is well

rewarded. At that point, and that is some ways out, I do think that they will

have to address that, but to say now they are going to raise wages I think

is irresponsible and I can’t speak to that,” he said.

The BCCI head explained that since the reduction in the tax rate would

not take place until early 2019, that meant companies would still have to

file their next tax return at the current rate of 30 per cent come the middle

of next year.

Furthermore, said Prescod, due to the harsh economic climate over the

past decade, businesses have been constrained, and have had to

endure some contraction in most operations due to various tax measures

over the years.

“One of those measures is the imposition of taxation at the corporate

level, the adjustment up to 30 per cent on corporation tax. That

corporation tax still becomes due, further to the minister of finance’s

comments, at the end of fiscal year 2018/2019. So that 30 per cent is

going to carry through,” he explained.

“We are going to be recognizing at the end of that period a decrease in

tax rate for most entities within the band that has been defined by the

Prime Minister up to the end of calendar year 2018/2019, which then

becomes due for filing in June 2020,” he said.

<< Back to news headlines >>

Medicanja Gets Financing from DBJ For Clinical Trials of Cannabis Drug Monday 3rd December, 2018 – Jamaica Gleaner

Medicanja has secured a grant of $7 million from Development Bank of

Jamaica, the first cannabis company to receive funding from a local

lending institution.

The grant will support clinical trials of a pain drug for cancer patients,

which was described as the first trial of its kind in the world.

The trials will seek to determine whether doses of a cannabis drug

developed by Bio-Tech will medically reduce pain experienced by

terminal cancer patients, who are currently treated for pain with drugs

such as morphine. Both Bio-Tech and Medicanja are members of the

Eden Gardens Group of Companies headed by Dr Henry Lowe.

The trials are being done in collaboration with the UWI Caribbean Institute

for Health Research, which will conduct the study with 50 patients over 12

weeks.

“We are happy to invest in wealth creation but also position Jamaica as a

global leader in innovation and research,” said DBJ managing director

Milverton Reynolds at the signing ceremony for the grant at the Eden

Gardens Wellness Resort and Spa in Kingston on Monday.

DBJ is a government-run bank.

Reynolds explained that local lending institutions particularly banks are

concerned about being blacklisted by US banks with which they have

correspondent banking relationships, given that cannabis is still largely an

illegal drug.

Even DBJ itself is only willing to support a discrete segment of the

cannabis, that is, medicinal marijuana projects. Recreational cannabis is

out.

“I cannot stand here today and definitively say we can support the wider

cannabis industry. It requires policy and protocols,” said Reynolds. “But we

are willing to meet with cannabis entrepreneurs to see how DBJ can assist

in policy or research so the DBJ can be the institution of choice for the

sector,” he added.

The cost to develop drugs can range up US$100 million over three stages

of evaluation, said Lowe at the signing ceremony. The first stage must

prove that the drug is safe. The second phase involves clinical studies of a

small group. The third phase is an extension of clinical studies to broaden

the base to pick up aberrations.

Lowe said that the third phase is the most expensive, usually involving

1,000 test subjects.

“Jamaica has great opportunity to use clinical studies to establish itself as

the industry leader. US clinical trials are unaffordable except for the big

pharma companies,” he said.

Phase two of the Medicanja/Bio-Tech trials is projected to cost

US$300,000.

<< Back to news headlines >>

Curaçao-Dominican ‘complementarity’ pact looks to spur trade Monday 3rd December, 2018 – Dominican Today

Dominican Foreign minister, Miguel Vargas, and Curacao Economy

minister Iván Steven Martina, on Monday signed a Partial Scope

Agreement, which aims to create a mechanism to spur trade and

cooperation between both countries.

Vargas said the agreement initiates a dialogue based on respect for

national laws and the application of a preferential tariff, which in his view

facilitate trade and bilateral economic complementarity.

“On the one hand, our industry can supply the important market of

Curacao. On the other hand, we can be strategic partners in the field of

tourism, positioning our countries as multi-destination in the Caribbean

region,” Vargas said in a statement.

<< Back to news headlines >>

Cuban economy needs to become efficient, says president Monday 3rd December, 2018 – Caribbean News Now

Cuba is immersed in an unprecedented economic battle, amidst the

tense financial situation it faces, worsened by the aggressiveness of the

United States, said President Miguel Díaz-Canel on Thursday in

Guantanamo.

Summarizing the visit of the Council of Ministers to Guantánamo to

evaluate the progress of socio-economic programs in the province, Diaz-

Canel was confident that “we will move forward, if we make better use of

the resources and human potential available to us.

He described this battle as immediate, fundamental and rigorous, with the

objective that economic development reaches domestic life, an

advance that is part of the changes that the people expect from the

Cuban state, and that cannot be postponed.

This context demands, he said, careful planning, and that it be capable

of preventing bureaucratic methods from immobilizing it.

The Cuban president noted that “we are going to present to the National

Assembly conceptual ideas to defend the 2019 economic plan, which will

mark a moment of adjustment, consolidation and implementation of

innovative ideas, among them that the budget is not burdened with

funding directed to the unbudgeted activity”.

The president added that the structures and economic management

teams in this struggle to advance the country should take advantage of

the talent of economists, academics, scientists and specialists from various

branches.

“The strategy is to unite those who know, assess their proposals and

articulate with our objectives, the most important of which is to raise the

standard of living of the population, with or without obstacles,” he said.

<< Back to news headlines >>

Some engineers entitled to over $1m Tuesday 4th December, 2018 – Trinidad Express Newspapers

A FORMER Petrotrin engineer, accountant or operator with 25 years’

service will receive over $1 million as a termination payment under the

Petrotrin Collective Agreement.

This, in addition to a pension, to which he/she is entitled upon attaining

age 55.

If the years of service amount to 35 years, and the salary was

approximately $32,000 a month, the employee would receive a

termination payment of $1.5 million.

This is gleaned from Petrotrin's termination benefit guide provided to the

Express, which gave the figures for the various categories of workers, the

years of service and the termination benefit calculations.

Petrotrin terminated all 3,400-plus permanent workers and 1,229

temporary workers last Friday and closed its doors.

According to the benefit guide, a manager with 20 years’ service, whose

salary was $82,186 a month would receive approximately $2.1 million.

The highest termination payment is $2.5 million, according to the Exit

Calculations provided to the Express.

This would apply to a manager, crude trader, superintendent, Head of

Business Support and Head of Scheduling whose salary was $50,747 a

month and who gave 35 years of service.

A cleaner or a clerk with 15 years’ service, earning $5,684 a month, will

receive a termination payment of approximately $335,872.

A cleaner, who according to the guide is in the same wage category as a

clerk, gauger, sampler and fitter, who has worked for 35 years, will get

$927,501 in termination benefit.

At the other end of the spectrum, a clerk, sampler, gauger, fitter and

cleaner with five years’ service will receive $84,128 while one with 10

years’ service will receive $178,337.

A clerk with 20 years’ service will receive a termination benefit of $411,956.

According to the Petrotrin guide, in the area of the distribution of service,

67 per cent of former permanent employees at Petrotrin have more than

ten years of service, while 33 per cent have less than ten years’ service,

one per cent has over 40 years’ service, while eight per cent have

between 36- and 40-years’ service.

The bulk of the employee fall in two categories - 21 per cent of former

employees have between six- and ten-years’ service, while 29 per cent

have between 11- and 15-years’ service.

OWTU education officer Ozzie Warwick said yesterday there were issues

with the calculations.

Warwick said some of the workers who started receiving their severance

package yesterday had been given less than the sums to which they

were entitled.

'Some workers have begun to receive their packages but there are some

issues with regard to the calculation,' he said.

He added that there were casual workers who worked for the company

for 'many many years who received nothing'. He said the 'Petrotrin

debacle' continued to be played out with the severance packages.

Tax concession coming

Minister of Finance Colm Imbert yesterday confirmed that Cabinet last

Thursday, 'using Section 124 of the Income Tax Act approved the increase

in the amount of income from severance/ termination benefits that is

exempt from tax, from $300,000 to $500,000'.

'The Board of Inalnd Revenue was so advised,' he said, adding that all

workers are now eligible for this benefit.

'It means TSTT workers who are earmarked for separation would also

benefit from this provision.

The tax concession can be implemented by executive action under

Section 124 which states: 'The president may remit or refund the whole or

any part of the tax payable or paid, as the case may be, by any person if

he (or she) is satisfied that it would be just and equitable to do so.'

Prime Minister Dr Keith Rowley had announced this concession in

Parliament two weeks ago.

Government has paid out a total of $2.7 billion to settle the termination

benefits to the former 5,000 plus workers at Petrotrin.

The Prime Minister signed off on the $2.7 billion payout on Friday morning

and it went to the banks. The Government had to provide the funds

because Petrotrin had no money to make such a large payment.

<< Back to news headlines >>

Massy adds $0.93 Tuesday 4th December, 2018 – Trinidad Express Newspapers

OVERALL market activity resulted from trading in 16 securities of which

seven advanced, five declined and four traded firm.

The Composite Index advanced by 16.56 points (1.30 per cent) to close at

1,294.65. The All T& T Index advanced by 3.87 points (0.23 per cent) to

close at 1,694.97. The Cross Listed Index advanced by 4.05 points (3.47 per

cent) to close at 120.84. The SME Index remained at 100.00.

Trading activity on the first-tier market registered a volume of 776,612

shares crossing the floor of the Exchange valued at $9,472,757.70.

Sagicor Financial Corporation was the volume leader with 375,798 shares

changing hands for a value of $3,690,116.16, followed by First-Caribbean

International Bank with a volume of 151,350 shares being traded for

$1,218,680. JMMB Group contributed 100,000 shares with a value of

$175,000, while LJ Williams Ltd B added 50,000 shares valued at $37,500.

Massy Holdings Ltd registered the day's largest gain, increasing $0.93 to

end the day at $45.07. Conversely, Sagicor Financial Corporation

registered the day's largest decline, falling $0.68 to close at $9.82.

CLICO Investment Fund was the only active security on the mutual fund

market, posting a volume of 35,930 shares valued at $724,051.40. CLICO

Investment Fund declined by $0.05 to end at $20.15. Calypso Macro Index

Fund remained at $15.85.

The second-tier market did not witness any activity.

<< Back to news headlines >>

ANGUILLA’S POSITION AFTER BREXIT – LETTER FROM THE UK PRIME MINISTER

TO THE NATION Monday 3rd December, 2018 – The Anguillian

The following comprises a letter to the British family of nations by the UK

Prime Minister Theresa May that was published this morning, as she

embarks upon entering an agreement with the European Union in which

the conditions of the UK’s withdrawal from the EU that will take place at

11pm (GMT) on the 29th March 2019 are set out. The 585-page

agreement is coupled with a Political Declaration.

Anguilla has now spent two years lobbying and negotiating with the UK

Government and EU Commission, in so doing raising awareness of the

critical socio-economic ties between Anguilla and its European

neighbours in the Caribbean and of Anguilla’s heavy reliance on support

from the EU itself, albeit contributed to by the UK. We are now at a pivotal

stage in the process that will play out daily until the date of withdrawal.

From Anguilla’s position, there is little more that we attain at this stage,

having received expressed assurances by the UK government that

Anguilla will be protected and that the main focus for the island will be

conducted during the next phase of the negotiations in which Future

Relations will be addressed. In this, and taking into account the current

sentiment that appears to surround today’s signing of the agreement by

the EU and UK leadership, I believe this to be the case for Anguilla,

although we see continued turbulence surrounding Gibraltar, our fellow

territory, that has led to last minute adjustments due to the fact that their

sovereignty is at risk, unlike our own.

Post Brexit, Anguilla will become a border nation of an Outer Most Region

of the EU in the guise of French St Martin and, secondly, a border nation of

the Dutch nations with which it also shares direct marine borders that are,

for this purpose, treated as one Dutch entity. The EU fully recognise the

desirability of continued mutually beneficial interaction between the

islands that aligns with much of its work with independent countries in the

region. I therefore anticipate that the second phase of negotiations will

reflect this mutual objective fortified by the consensus of the people in the

islands.

As I have maintained throughout, the real risk to Anguilla therefore lies in

the politics within the UK itself where there are multiple hurdles that must

first be overcome if the ratification of the Withdrawal Agreement and

Political Declaration that are comprised in the first phase of the process

are, in fact, to be formally adopted in the UK parliament, on behalf of all

British nations, including Anguilla. If they are not there is a real risk of an

acrimonious No Deal Brexit that may indirectly affect the islands should

the EU or the member states in question ordain that their Caribbean

interests become less cooperative whether temporarily, or permanently;

or the necessary administrative adjustments reflecting the new

relationship lead to periods of uncertainty, as under a No Deal Brexit there

would no longer be a recognised transition period in which the new post

Brexit relationships between the EU and British nations could be

developed, hence the term ‘crashing out of Europe’. Whilst the islands will,

no doubt try to find ways and means of accommodating each other’s

needs, as French St Martin is a collectivité of France, the French

Government in Paris will lead on this in practice. Meanwhile, I shall

endeavour to maintain swift updates as developments unfold.

Mrs Blondel Cluff CBE,

Representative of the Government of Anguilla to the UK and EU

and Special Adviser to the Chief Minister

When I became your Prime Minister, the United Kingdom had just voted to

leave the European Union. From my first day in the job, 1 knew 1 had a

clear mission before me – a duty to fulfil on your behalf: to honour the

result of the referendum and secure a brighter future for our country by

negotiating a good Brexit deal with the EU. Throughout the long and

complex negotiations that have taken place over the last year and a half,

I have never lost sight of that duty.

Today, I am in Brussels with the firm intention of agreeing a Brexit deal with

the leaders of the other 27 EU nations. It will be a deal that is in our

national interest one that works for our whole country and all of our

people, whether you voted ‘Leave’ or ‘Remain’.

It will honour the result of the referendum. We will take back control of our

borders, by putting an end to the free movement of people once and for

all. Instead of an immigration system based on where a person comes

from, we will build one based on the skills and talents a person has to

offer. We will take back control of our money, by putting an end to vast

annual payments to the EU. Instead, we will be able to spend British

taxpayer’s money on our own priorities, like the extra £394 million per

week that we are investing in our long-term plan for the NHS.

And we will take back control of our laws, by ending the jurisdiction of the

European Court of Justice in the UK. In future, our laws will be made,

interpreted and enforced by our own courts and legislatures.

We will be out of EU programmes that do not work in our interests: out of

the Common Agricultural Policy, that has failed our farmers, and out of

the Common Fisheries Policy, that has failed our coastal communities.

Instead, we will be able to design a system of agricultural support that

works for us and we will be an independent coastal state once again,

with full control over our waters.

The deal also protects the things we value. EU citizens who have built their

lives in the United Kingdom will have their rights protected, as will UK

citizens living elsewhere in the EU. A free trade area will allow goods to

flow easily across our borders, protecting the many skilled jobs right across

the country that rely on integrated supply-chains. Because our European

friends will always be our allies in the fight against terrorism and organised

crime, the deal will ensure that security co-operation will continue, so we

can keep our people safe.

As Prime Minister of the United Kingdom, I have from day one been

determined to deliver a Brexit deal that works for every part of our country

– for England, Scotland, Wales and Northern Ireland, for our Overseas

Territories like Gibraltar, and also for the Crown Dependencies. This deal

will do that. Crucially, it will protect the integrity of our United Kingdom

and ensure that there will be no hard border between Northern Ireland

and Ireland – so people can live their lives as they do now.

It is a deal for a brighter future, which enables us to seize the opportunities

that lie ahead. Outside the EU, we will be able to sign new trade deals

with other countries and open up new markets in the fastest-growing

economies around the world. With Brexit settled, we will be able to focus

our energies on the many other important issues facing us here at home:

keeping our economy strong, and making sure every community shares in

prosperity; securing our NHS for the future, giving every child a great start

in life, and building the homes that families need; tackling the burning

injustices that hold too many people back, and building a country for the

future that truly works for everyone.

On 29 March next year, the United Kingdom will leave the European

Union. We will then begin a new chapter in our national life. I want that to

be a moment of renewal and reconciliation for our whole country. It must

mark the point when we put aside the labels of ‘Leave’ and ‘Remain’ for

good and we come together again as one people. To do that we need

to get on with Brexit now by getting behind this deal.

Parliament will have the chance to do that in a few weeks’ time when it

has a meaningful vote on the deal I hope to strike today. I will be

campaigning with my heart and soul to win that vote and to deliver this

Brexit deal, for the good of our United Kingdom and all of our people.

<< Back to news headlines >>

CM BANKS ISSUES STATEMENT ON SALE OF SCOTIABANK (ANGUILLA) LTD Monday 3rd December, 2018 – The Anguillian

Anguilla’s Chief Minister and Minister of Finance, Mr. Victor Banks, called

an urgent press conference on Wednesday, November 28, in which he

delivered the following statement about the announcement of the sale of

Scotiabank Limited in nine Caribbean islands including Anguilla:

“I was informed by a principal of Scotiabank Anguilla Limited on the

afternoon of Monday November 26, 2018 that the Bank had come to an

agreement with Republic Finance Holdings Limited (RFHL), subject to

regulatory approvals, to sell its banking operations in Anguilla and a

number of other branches in the OECS, St Maarten and Guyana.

“I was also told that the information was by way of giving the Ministry of

Finance and the Government of Anguilla a “heads up” in advance of

formal releases from both parties on Tuesday, November 27, 2018.

“As fiduciary institutions it is expected that such negotiations would take

place in the strictest confidence, to include a number of non-disclosure

agreements designed to create a level of comfort to both parties as well

as a means of protecting their responsibilities to their shareholders and

customers.

“Obviously, this news may come as a shock to many persons and I have

heard such comments like disrespect and lack of proper courtesies on the

part of Scotiabank and the Republic Finance Group. However, we hold

the view that such information must be handled discretely given the

negative impact that premature announcements could cause to normal

banking operations.

“I have noted a number of important points from both releases as follows:

• This decision is in relationship to Scotiabank’s operations in the region —

not just Anguilla.

• The Republic Group is a regional corporation whose interests are highly

vested in our region.

• Scotiabank has expressed confidence in their ability to look after their

customers and employees.

• It will be business as usual until the necessary approvals are in place.

• This agreement should not result in any immediate disruptions to the

operations in Anguilla.

• We have noted based on the pricing of the deal that Scotiabank

Anguilla appears to have high value to both parties to the agreement.

“The Government of Anguilla understands that it is the right of any

company to make business decisions in the interests of its shareholders. In

the circumstances we are grateful to Scotiabank for the service it has

been providing to this community over the years and look forward with

great hope to a successful outcome to the next step of the process in the

interest of Anguilla.”

<< Back to news headlines >>

Reservoir reconstruction on JVD nearly complete Tuesday 4th December, 2018 – BVI News Online

Construction of the steel water tank/reservoir that is being erected on Jost

Van Dyke is nearly complete.

Once construction is completed, this new reservoir will have a capacity of

up to 28 feet of water.

In explaining how the capacity of the tank will arrive at 28 feet, the

Department of Water & Sewerage explained: “Additional blue panels

would be added to the body of the tank to heighten the tank/make it

taller.”

The department added: “A bypass would be installed, and this would

provide the flexibility to provide service to customers regardless of what

happens to the tank. We are rebuilding with resilience in mind.”

No specific timeline has been given as to when the construction will be

completed. But, currently, the roofing of the structure is being installed,

the Water & Sewerage department said.

Jost Van Dyke residents have been without a reservoir since the

September 2017 disasters destroyed the sole reservoir on the island.

Deputy Permanent Secretary in the Ministry of Communication and Works

Jeremy Hodge had told BVI News months ago that a resident on the

island had agreed to allow his personal cisterns to be used to pump water

to the rest of the island, in the interim.

Reservoir repair and restoration projects, which are being undergone on

reservoirs across various sections of the territory, is a joint partnership

between the BVI and the United Kingdom.

The BVI is paying roughly $150,000, which will go towards a part of the

labour cost, while the UK would cover the remaining cost, which has not

been divulged.

Hodge had however noted that some of the reservoirs can cost up to a

million dollars each. The work is being undertaken by a seven-man team

from Florida Aqua Store.

<< Back to news headlines >>

BVI to use int’l connections to support UK after Brexit — Premier Tuesday 4th December, 2018 – BVI News Online

The British Virgin Islands will be looking to use its connections with

international partners in the financial services sector to back the United

Kingdom when it exits from the European Union (EU) in the next few

months.

Premier Dr D Orlando Smith gave that indication in a media release on

Monday, stating that the BVI plays an integral role within the wider

international economy.

He said: “As the UK approaches its exit from the EU in March 2019, the

value of the BVI will only continue to increase in importance as we

leverage existing relationships with key markets to support the UK as it

looks to redefine its role on the international stage post-Brexit.”

He said he will be leveraging the BVI’s strong relationship with markets

such as Asia and Africa.

Britain’s exit from the EU (a move dubbed Brexit) is among the things

Premier Smith will discuss this week during a Joint Ministerial Council with

the other leaders of UK Overseas Territories (OT).

The group is slated to discuss what Brexit means for OTs in the areas of

international trade, the environment, development funding, and EU exit

legislation.

The entire subject of the OT’s constitutional relationship with the UK will

also be up for discussion, the Office of the Premier said.

“As the UK seeks to define its relationship with the EU we are, in turn,

discussing how we ensure our constitutional relationship with the UK is fit for

purpose,” Dr Smith said.

He added: “We are pleased that the UK government will continue to

support us and are encouraged by the Prime Minister’s statement that

‘we will always negotiate on behalf of the whole UK family [including the

Overseas Territories] and in the future relationship we will stand up for their

interests’.”

Premier Smith further noted that his main focus in these joint ministerial

meetings is to promote the role of the BVI in a post-Brexit world and to

protect the rights of BVI residents as it relates to the territory’s constitutional

relationship with the UK.

<< Back to news headlines >>