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REGIONAL
Trinidad and Tobago
Calypso fund drops $0.50
OVERALL market activity resulted from trading in 13 securities of which four
advanced, four declined and five traded firm.
Oil spill contained, but fishermen fear chemicals
AN oil spill in the Gulf of Paria last week has been contained and an all-
clear was given for fishermen to return to sea.
South, Central chambers: Slow sales in 2018
The retail sales sector witnessed sharp declines in 2018 according to the
heads of three business chambers with one chamber saying December
sales were down by a whopping 60 per cent when compared to 2017.
Barbados
New year, new oil supplier
Nine companies have bid to supply Barbados with petroleum products
and the winning bid should be announced early next month.
Jamaica
NCBJ offloads JMMB shares
National Commercial Bank Jamaica Ltd (NCBJ) yesterday sold its
remaining shares in JMMB Group Ltd.
Market analysts expect another good year for stocks in 2019
In the past month, the Jamaican stock market has skidded by more than
20,000 points, or more than five per cent, which means that investors have
shed a portion of the $1.6 trillion in wealth amassed up to the end of
November.
T-bill yields on the rise, as BOJ cuts signal rate
For most of 2018, the market was willing to follow the signals set by the
Bank of Jamaica, BOJ, whose policy decisions has been to cut interest
rates.
Jamaica continued
Stocks lose momentum a day after Dow's record gain
Stocks were falling sharply Thursday at mid-afternoon, making the prior
day's strong performance seem like an aberration, as Wall Street stumbles
towards what could be its worst December since the Great Depression.
Guyana
Smuggled fuel dents GuyOil sales in 2017
The state-owned Guyana Oil Company Limited (GuyOil) last year lost
ground in its gasoline, thanks to among other things, smuggling.
The stage is set for elections
On Friday December 21, 2018, the National Assembly, comprising 65
elected members, debated a motion of no-confidence initiated by the
Leader of the Opposition, Bharrat Jagdeo.
The Bahamas
Judge Clears Way For $2.8bn Revival
The Supreme Court has cleared the way for the former Ginn project’s
$2.8bn revival, and creation of up to 1,400 full-time Bahamian jobs, by
declaring Old Bahama Bay’s lease “null and void”.
Christmas Sales Matched 2017
BUSINESS this Christmas was “steady” and comparable to last year’s
holiday shopping period, several local retailers have confirmed.
St. Lucia
Economics minister believes George F.L. Charles Airport could become
hub for regional business
Economic Minister, Guy Joseph, believes that Saint Lucia has the potential
to attract regional businesses and the George F.L. Charles Airport, located
in Castries, has an integral role to play in achieving that goal.
Saint Lucia ranked in world’s best beaches list
FlightNetWork, one of the world’s largest online travel publications,
selected and ranked 400 of the world’s top beaches with the help of
1,000 of the industry’s leading travel professionals.
Haiti
Poor performance of the Haitian economy in 2018
The last Economic Report of the Year of the Economic Commission for
Latin America and the Caribbean (ECLAC) released last week, reveals
that macroeconomic performance in 2018 for Haiti has been modest and
below expectations (October 2017 period) to September 2018). The
ECLAC estimates the growth of Haiti's Gross Domestic Product (GDP) at
only 1.4% (1.2% in 2017), the persistence of an inflationary dynamic of
14.6% (15.4% in 2017), a large public deficit of 6.5% of GDP (3.9% in 2017),
as well as an increase in the current account deficit of 3.5% of GDP (2.9%
in 2017), added to a strong depreciation of the gourd.
Panama
Panama Canal revenues up 9.1%
Panama Canal revenues climbed 9.1 percent to $2.082 billion between
January and October, up from $1.908 billion in the same period of 2017,
according to official statistics released Monday.
British Virgin Islands
BVI’s accommodation inventory to normalize in a year or so
Residents and visitors have been given a clearer indication of how much
longer they will have to wait before the BVI returns to operating at full
capacity as it relates to accommodation in the territory.
Costa Rica
More Canadians To Hit Costa Rica Beaches with New Direct Flights from
Vancouver
The Canadian low-cost airline Sunwing, that also operates seasonal flight
services from over 30 local Canadian gateways, started operations this
week between Vancouver International airport (YVE) and the Daniel
Oduber International airport (LIR) in the Guanacaste of Liberia.
Dominica
Construction of geothermal power plant earmarked for 2019
Minister for Trade, Energy and Employment, Ian Douglas, has said that the
government is now in a position to begin construction of a geothermal
power plant in the Roseau Valley.
Dominica continued
Govt to remove duties on biodegradable items
In preparation for the implementation of the ban on Styrofoam and
plastics, the government has taken a decision to removed duty on bio
degradable items.
Other Regional
ECCB Governor predicts 3 per cent growth
The Governor of the Eastern Caribbean Central Bank (ECCB) is predicting
growth of 3 per cent for the Eastern Caribbean Currency Union (ECCU).
Timothy Antoine made the announcement in his 2018 Christmas message,
released recently.
ECLAC Says Latin America and Caribbean Economies to Grow 1.7% Next
Year, Amid Greater International Uncertainty
The year 2019 looks to be a period in which global economic
uncertainties, far from waning, will intensify and will arise from different
fronts. This will have an impact on the growth of the economies of Latin
America and the Caribbean, which, on average, are seen expanding 1.7
per cent, according to new projections released today by the Economic
Commission for Latin America and the Caribbean (ECLAC).
INTERNATIONAL
United States
Trump administration puts stop to new flood insurance policies
The Trump administration has decided it cannot authorize new flood
insurance policies, citing the partial shutdown of the federal government
due to a budget impasse in Congress and potentially putting thousands of
home sales in limbo.
U.S. government advises workers on staving off creditors amid shutdown
As a partial shutdown of the U.S. government stretched into its sixth day,
the agency that oversees the federal workforce offered advice on
staving off creditors to the estimated 800,000 employees who could be
affected by a lapse in pay.
United States continued
Stock futures higher as Wall St.'s post-Christmas rally continues
U.S. stock futures were higher on Friday, extending a two-day rally amid
volatile trading and raising expectations that the recent selloff may have
eased for now.
United Kingdom
May's Brexit deal can get through parliament – Hunt
Prime Minister Theresa May’s Brexit deal can be passed by the British
parliament if the European Union provides clarification that the Northern
Irish “backstop” will be temporary, foreign minister Jeremy Hunt said on
Friday.
France's Vinci in $3.7 billion swoop on UK's Gatwick airport
France’s Vinci (SGEF.PA) is taking advantage of a Brexit hit to UK asset
prices to buy a majority stake in Britain’s second-busiest airport, London’s
Gatwick, for 2.9 billion pounds ($3.7 billion), the construction company
said on Thursday.
Europe
German inflation slows just as ECB dials back stimulus
Inflation in Germany’s most populous regions slowed in December, just as
the European Central Bank ended a crisis-fighting bond purchase scheme
after four years and as global markets slumped.
China
Nissan to make fewer cars in China in months ahead as demand slows:
source
Nissan Motor Co (7201.T) will produce 30,000 fewer vehicles in the coming
months in China than what it had planned, a person briefed on the
matter told Reuters, as global automakers grapple with falling demand in
the world’s biggest car market.
China allows first-ever U.S. rice imports in 'goodwill gesture' ahead of trade
talks
China has opened the door to imports of rice from the United States for
the first time ever in what analysts took to signal a warming of relations
between the world’s two biggest economies after a frosty year marked by
tensions and tit-for-tat tariffs.
China continued
China says new financial information rules aimed at providers for
institutions
China’s internet regulator said on Friday the recently published rules
governing financial information providers are aimed at firms supplying
information to an institutional audience and to specific investors, rather
than the general public.
Japan
Japan's Nikkei ends down, books first annual loss since 2011
Japan’s Nikkei fell on its final trading day of the year on Friday as energy-
related shares sagged, leading the index to its first annual loss in seven
years.
India
Modi considers three options to aid Indian farmers hit by low crop prices:
sources
India’s Prime Minister Narendra Modi is considering three options for a
relief package to help farmers suffering because of low crop prices at a
cost of as much as 3 trillion rupees ($42.82 billion), according to three
government sources.
Modi's clampdown on e-commerce in India may not win back votes of
small retailers
India’s new curbs on e-commerce companies may not be enough to win
over small store owners and traders in next year’s general election, with
the key voting bloc still seething over what it sees as broken promises by
Prime Minister Narendra Modi.
Global
Oil prices rebound but still weak due to oversupply
Oil prices rebounded on Friday, recovering slightly from heavy losses this
week, but remained close to the lowest levels in over a year as rising U.S.
inventories and concern over global economic growth rattled markets.
Global continued
Global stocks cautiously follow Wall Street's surge
Stocks in Europe and Asia rose cautiously on Friday after Wall Street ended
a volatile session with big gains, but fears of further price swings and
worries about U.S. politics kept safe-haven currencies such as the yen and
Swiss franc in demand.
NCBJ offloads JMMB shares Friday 28th December, 2018 – Jamaica Observer
National Commercial Bank Jamaica Ltd (NCBJ) yesterday sold its
remaining shares in JMMB Group Ltd.
The sale of 326,277,325 shares yielded proceeds in excess of $9 billion for
NCBJ, which is a subsidiary of the NCB Financial Group. The transaction
means NCBJ no longer holds equity interest in JMMB and as such, JMMB
will not be considered an associated company of NCBJ and NCBFG.
“NCBFG will recognise a gain of nearly $3 billion on the sale of the shares.
NCB Capital Market Limited acted as exclusive financial advisor and
broker to NCBJ for the transaction,” the financial institution said in a
statement to shareholders.
The buyer of the shares was not disclosed.
In 2011, NCB Capital Markets Ltd — a subsidiary of NCBJ — acquired 428,
777, 325 shares or a 29 per cent stake in JMMB, making it the 'single
largest' owner of the financial institution. The transaction was valued at
roughly $3.45 billion.
Upon conclusion of the sale, the banking group said the deal was “in line
with NCBCM's investment management strategy of taking positions in
liquid financial assets and does not represent a move to take control of or
acquire a majority stake in JMMB”. Earlier this year, NCBJ offloaded
102,500,000 JMMB Group ordinary shares which were taken up by PanJam
Investment.
NCBJ's sale of shares in JMMB comes amid attempts by NCBFG to acquire
62 per cent shareholding in regional insurance conglomerate, Guardian
Holdings Ltd of Trinidad.
<< Back to news headlines >>
Market analysts expect another good year for stocks in 2019 Friday 28th December, 2018 – Jamaica Gleaner
In the past month, the Jamaican stock market has skidded by more than
20,000 points, or more than five per cent, which means that investors have
shed a portion of the $1.6 trillion in wealth amassed up to the end of
November.
But for the year to date, as of Christmas Eve equity investors were still
around $300 million richer, overall, from the net gains in stock value over
the period, nine of which have delivered triple-digit growth.
The stock market did not hit 400,000 points this year as some had
expected, but came close for the main tracking indices - at 397,517 points
for the JSE Combined Index on December 4, and 394,548 points for the
JSE Main Market Index on December 5. At Christmas Eve, with another
three days of trading left to factor for this year, the combined index was
down to 373,623 points
The top stocks and the gains made year to date are: Barita Investments,
up more than 280 per cent; Derrimon Trading, 250 per cent; SSL Venture
Capital Jamaica, 260 per cent; Salada Foods, 160 per cent; CAC 2000,
160 per cent; Kingston Wharves, 130 per cent; Palace Amusement, 130
per cent; Indies Pharma, 110 per cent; and Pulse Investments, 100 per
cent.
These gains occurred within the context of the Bank of Jamaica lowering
interest rates in 2018, the last being a 25-basis point cut to 1.75 per cent on
December 20.
Market analysts polled by the Financial Gleaner expect the Jamaica
Stock Exchange to deliver another year of solid performance in 2019,
given the current macroeconomic conditions.
"Consumer and business confidence will continue to underpin a strong
capital market provided that interest rates remain low," said Paul Simpson,
founder and group president and CEO of Cornerstone United Holdings
Jamaica Limited, the company that recently acquired Barita Investments
Limited.
The outlook for listed companies remains favourable due to the
"tremendous stability of the fiscal and monetary dynamics", supported by
growth in the economy, Simpson said.
"Capital will continue to rotate out of government paper into businesses
via the markets for corporate paper and equity," he said.
Barita's own market value has climbed above $21 billion in the year, from
$3 billion.
Many of the stocks on the JSE are trading close to their full market value
when compared with their peers. In fact, 27 of the 35 main market stocks
are currently trading at or above the market average of 19 times what
they earn in annual profit, while 11 of 37 junior market stocks are trading
above the market average of 26 times earnings, as estimated by the
Financial Gleaner using December research data from brokerage firms
Barita Investments and VM Wealth.
The central bank's lowering of interest rates was seen as a key factor in the
decision made by several listed companies to refinance their debt with
cheaper borrowings.
As to the potential headwinds for stocks next year, Mayberry Investments
CEO Gary Peart sees foreign exchange volatility as the greatest threat to
gains on the JSE.
Through the year to Christmas Eve, the JSE Combined Index has improved
by 27 per cent to 373,623.27 points; the JSE Index was up 28 per cent to
368,728.41; Junior Market Index rose 16 per cent to 3,176.89, while the JSE
USD Equities Index declined 7.0 per cent to close at 155.04 points.
At market close on Thursday, stocks fell by another 6,039 points on the
Combined Index but was still well in the black year-to-date.
Some of the gains were driven by new listings, which included Elite
Diagnostic, Everything Fresh and Indies Pharma Jamaica on the junior
market, and Sygnus Credit Investments, Mayberry Jamaica Equities and
Stanley Motta on the main market.
As of November 30, the stock market was capitalised at just under $1.6
trillion, with the junior market accounting for nearly $139 billion of the total.
Market wealth in 2017 reached 1.19 trillion, $114 billion of which was
contributed by junior market companies.
The JSE led the world in gains in 2015 in a field of 92 other global
exchanges. Its performance over the past five years also outpaces all
other markets.
<< Back to news headlines >>
T-bill yields on the rise, as BOJ cuts signal rate Friday 28th December, 2018 – Jamaica Gleaner
For most of 2018, the market was willing to follow the signals set by the
Bank of Jamaica, BOJ, whose policy decisions has been to cut interest
rates.
The monthly Treasury bill auctions held by the central bank on behalf of
the Government of Jamaica, started out at or above four per cent at the
top of the year, but fell monthly in harmony with BOJ's policy signals - that
is, until September, when the first signs that the market may be moving in
a different direction began to show up in the auction results. T-bill yields
are computed based on bids submitted to the central bank.
The August auction yielded 1.693 per cent on the three-month T-bill, which
turned out to be the floor for the market. The next month, the average
yield on the same bill was 1.709 per cent, and since then it has spiked
monthly to reach 2.047 per cent in December.
The six-month T-bill has taken a similar path, although its floor came a
month later in September at 1.869 per cent. The yield in December was
2.066 per cent.
Within that time frame, the BOJ had cut and was maintaining its policy
rate at 2.00 per cent. The policy rate is the equivalent to the overnight
rate charged to banks to park money at the central bank.
Cutting interest rates is meant to reduce the cost of borrowing, and the
cost of capital. For investors, it may also mean lower returns on some
investments, but a driver of the equities market.
However, even as T-bills have changed trajectory, the central bank
remains wedded to its 'accommodative' policy position, so in December,
even while Treasury yields had ticked back above two per cent for the first
time in six months, the BOJ's rate decision was a 25 per cent reduction in
the overnight rate to 1.75 per cent. The T-bill auction was held on
December 12 and settled on December 14, and the rate decision was
made a week later, on December 20.
BOJ says the auction results don't drive its rate decisions.
"The bank's policy decisions are not determined by the trend in Treasury
bill yields, but on the bank's outlook for inflation relative to its inflation
target," BOJ Senior Deputy Governor John Robinson told the Financial
Gleaner.
The rate cut on December 20 was based on the central bank's assessment
that inflation was in danger of falling below the lower limit of its 4.0 per
cent to 6.0 per cent target range in the latter half of 2019 and early 2020.
Robinson also said the performance of the treasuries over the past four
months was also affected by the central bank's monetary stance and a
contraction in market liquidity. For this year, each T-bill auctioned has
either offered $600 million or $700 million for market subscription.
"The signal rate is lower than the bank's inflation target and therefore
considered to be accommodative," Robinson said. "The signal rate
influences other rates in the money market, including those on treasury
bills. Treasury bill rates are therefore converging with Bank of Jamaica's
signal rate as institutions seek higher yields in alternative investment
instruments," he said.
The senior deputy governor said that although liquidity is still high, it has
been declining.
The fall in liquidity, as evidenced by lower overnight placements by banks
at the BOJ towards the latter part of 2018, he said, was associated with
the central bank's sale of US dollars to the market during the months of
August to October, continued buoyancy in revenue intake by the
Government, and the demand by financial institutions for currency for use
during the Christmas season.
The central banker also noted that the marginally higher yields on Treasury
bills should not be seen as signalling the beginning of a trend.
"The ebb and flow of the factors that affect liquidity in the market will
continue to affect short-term rates, but the long-term direction of money
market rates is guided by the central bank, through its monetary policy
decisions," said Robinson. "Money market rates are consistent with the
bank's monetary policy signals," he said.
<< Back to news headlines >>
Stocks lose momentum a day after Dow's record gain Friday 28th December, 2018 – Jamaica Gleaner
Stocks were falling sharply Thursday at mid-afternoon, making the prior
day's strong performance seem like an aberration, as Wall Street stumbles
towards what could be its worst December since the Great Depression.
The Dow Jones Industrial Average slumped 600 points in afternoon trading
Thursday. If that holds it would be the Dow's fifth loss of 500 or more points
out of 18 trading days in December.
Technology companies and health care stocks, big gainers on
Wednesday when the market had its best day in 10 years, took some of
the heaviest losses in Thursday's broad slide. Energy companies as well as
internet and social media companies fell sharply as well. As of 2:15 p.m.,
only five stocks in the S&P 500 were higher.
Volatility has been the norm this month. The market remains on track for its
worst December since 1931, during the depths of the Depression, and
could finish 2018 with its biggest losses in a decade. Even with
Wednesday's big gains, the Dow, S&P 500 and Nasdaq are all down more
than 12 per cent for the month.
"You're watching the market wrestle with, 'Okay, are we within a couple
per cent off the bottom, or does the community think there's another 20
per cent lower?'" said Billy Huzar, client investment strategist at J.P.
Morgan Private Bank.
The S&P 500 index fell 69 points, or 2.8 per cent, to 2,398 as of 2:15 p.m.
Eastern Time. The Dow slid 585 points, or 2.6 per cent, to 22,292. Both
indexes rose about five per cent Wednesday, when the Dow had its
biggest-ever single-day point gain.
The tech-heavy Nasdaq lost 214 points, or 3.3 per cent, to 6,340. The
Russell 2000 index of smaller-company stocks gave up 36 points, or 2.8 per
cent, 1,293.
The partial government shutdown that began over the weekend has
weighed on the market. Investors have also been unnerved by the
personnel turmoil inside the Trump administration, trade tensions with
China, the slowing global economy and worries that corporate profits are
going to slip sooner or later.
Technology companies, a big driver of the market's gains before the
October downturn, slumped Thursday. Advanced Micro Devices lost 7.5
per cent to US$16.55.
Perrigo gave up 6.6 per cent to US$38, one of the big decliners in the
health care sector.
Retailers, which rallied Wednesday on data showing holiday retail sales
growth hit a six-year high, helped pull the market lower Thursday. Amazon
slid 5.2 per cent to US$1,395.
Bank stocks fell along with Treasury yields, which affect interest rates on
mortgages and other loans. KeyCorp declined 3.9 per cent to US$14.13 as
the yield on the 10-year Treasury fell to 2.73 per cent from 2.79 per cent
late Wednesday.
The decline in oil prices weighed on energy stocks. Noble Energy slid 5.1
per cent to US$18.10.
Benchmark U.S. crude dropped 2.6 per cent to US$45.04 a barrel in New
York. Brent crude, used to price international oils, was down 2.6 per cent
to US$53.34 a barrel in London.
The dollar fell to 110.53 yen from 111.36 yen on Wednesday. The euro
strengthened to US$1.1444 from US$1.1351.
Gold edged up 0.6 per cent to US$1,281.10 an ounce and silver gained
1.2 per cent to US$15.31 an ounce. Copper fell 1.2 per cent to US$2.67 a
pound.
The slide in U.S. markets followed a sell-off in major indexes in Europe.
In European markets, where trading resumed after a Christmas holiday
break, the German DAX slid 2.4 per cent, while France's CAC 40 gave up
0.6 per cent. Britain's FTSE 100 fell 1.5 per cent.
In Asian markets, the Nikkei 225 index rebounded 3.9 per cent, while South
Korea's Kospi was little changed. The Hang Seng index fell 0.7 per cent
and Australia's S&P-ASX 200 jumped 1.9 per cent. Stocks climbed in
Taiwan and throughout Southeast Asia.
<< Back to news headlines >>
New year, new oil supplier Friday 28th December, 2018 – Nation News
Nine companies have bid to supply Barbados with petroleum products
and the winning bid should be announced early next month.
Chairman of the Barbados national Oil Company Limited (BNOCL) Alex
McDonald told THE NATION local companies were among those bidding,
but declined to say more because he did not want to prejudice the
bidding process.
In December, BNOCL published a notice "inviting suitable qualified
suppliers to tender for the supplying of refined petroleum products
(unleaded gasoline and ultra-low sulphur diesel) and the procurements of
its indigenous crude oil".
The deadline was last Friday and bids were opened on Thursday.
<< Back to news headlines >>
Judge Clears Way For $2.8bn Revival Thursday 27th December, 2018 – Tribune 242
The Supreme Court has cleared the way for the former Ginn project’s
$2.8bn revival, and creation of up to 1,400 full-time Bahamian jobs, by
declaring Old Bahama Bay’s lease “null and void”.
Justice Keith Thompson, in an interim order signed on Christmas Eve, found
that the six-and-a-half-year-old lease of the Grand Bahama resort to its
condominium owners had “expired” and was “of no further effect”.
He then ordered that the 73 condo owners and their company, Island
Ventures Resort & Club (IVRC), give “vacant possession” of Old Bahama
Bay “forthwith” to Lubert Adler, the US real estate financier whose
investment funds own the resort and 280 acres of West End real estate.
Justice Thompson also adjourned, or stayed, all other proceedings related
to IVRC’s battle with Lubert Adler, although he moved to address the
condo owners’ key concern by directing that the US financier find a
temporary operator/manager for Old Bahama Bay.
The order, which has been obtained by Tribune Business, said it was
“declared that the lease dated June 1, 2012, and made between Lubert
Adler and IVRC.... has expired and is null, void and of no further effect”.
Besides ordering that Lubert Adler “be given vacant possession of the
leased premises forthwith”, Justice Thompson also directed that the US
financier “use its best reasonable endeavours to enter into a transitional
license or other short-term arrangement for the management of the
leased premises with either IVRC or other service providers as may be
commercially practicable”.
The ‘bigger picture’ effect of Justice Thompson’s Order is that it seemingly
paves the way for Toronto-based Skyline Investments to move ahead with
the acquisitions that are key to fulfilling its ambition of pulling off a $2.8bn,
10-year revival of the former Ginn project.
IVRC’s resistance, and initiation of Supreme Court action, had threatened
to block Lubert Adler’s sale of Old Bahama Bay to Skyline, thereby
thwarting a key component in the Canadian developer’s plan.
It will not close a $42m deal for the entire former Ginn project unless, and
until, it can obtain free and clear title to Old Bahama Bay and all its resort
assets - something that Justice Thompson’s interim Order now appears to
provide.
This outcome is also understood to have been much desired by the Minnis
administration, as IVRC’s court challenge was threatening to delay, and
potentially even derail, a major foreign direct investment (FDI) project that
the Government was relying on heavily to turn around Grand Bahama’s
moribund economy.
Justice Thompson’s ruling, though, does not completely ignore IVRC’s
needs. The requirement that Lubert Adler find a temporary
manager/operator for Old Bahama Bay until the sale to Skyline is
completed tackles the condo owners’ desire for the resort, and its
amenities, to remain open as normal through any transition period.
IVRC, in legal documents that accompanied its Supreme Court action,
had alleged that uncertainty over Lubert Adler and Skyline’s plans was
jeopardising the 1,500-room night and 945 marina dock slip leases it had
already booked for 2019 in its capacity as Old Bahama Bay’s leasehold
operator.
The condo owners’ company had claimed that it was also acting to
preserve the resort’s 103 Bahamian jobs by maintaining the “status quo”,
and ensuring the property stayed open, throughout the sales process.
However, a source familiar with Lubert Adler’s position, speaking on
condition of anonymity, told Tribune Business that the US-based financier
was always going to hire an operator for Old Bahama Bay’s marina and
other resort assets until the sale to Skyline is completed.
“They’re not going to leave people hanging,” the source said. “People
show up to that marina in bad weather all the time. They have to put
something in place for them.”
Yet different interpretations of what Justice Thompson’s interim Order
means were already emerging on Christmas Eve barely hours after his
signature had dried.
John MacDonald, IVRC’s president, told Tribune Business that based on
conversations with the condo owners’ attorneys, Lennox Paton, and his
own research, the term “vacant possession” only means handing
everything over “in good working order” once the sale to Skyline
Investments closes.
Lubert Adler, though, is understood to be interpreting the interim Order -
and especially the word “forthwith” - as meaning that IVRC must vacate
immediately, and completely hand over Old Bahama Bay and all its
assets to it.
And, while Mr MacDonald suggested IVRC will continue operating the 72-
slip marina and other resort amenities until the closing with Skyline, Tribune
Business understands that Lubert Adler is determined to seek out a
different manager given that trust between the two sides no longer exists.
The IVRC president also hinted that the condo owners may seek
compensation for “the book of business”, in terms of room and marina
reservations, they have built up for 2019. He accused Lubert Adler of
expecting to simply walk in and take this over for nothing.
“Vacant possession doesn’t mean that you leave,” Mr MacDonald told
Tribune Business. “From what I understand, our lawyers said vacant
possession means that when you turn it over it’s in good working
condition. From what I understand, we’re going to continue operating
until such time” as there is a sale.
He added that Justice Thompson had been urging both sides, IVRC and
Lubert Adler, to “work together” with no real changes to the current
situation occurring until they went back before the Supreme Court on
January 25.
“We’re trying to keep it civil and keep employees employed through the
holiday, and they’re [Lubert Adler] saying: ‘Get out of the property’,” Mr
MacDonald added. “The judge is not saying: ‘Get out’. He’s saying: ‘Work
things out. Work out some kind of term between now and the sale’.
“The status quo is us operating and keeping our employees... If there’s no
closing today, why make us fire the employees over the holiday? It’s
spiteful or not nice. Never did they send an e-mail telling us to stop taking
reservations for 2019. We have correspondence showing otherwise.”
However, an October 15, 2018, letter to IVRC’s attorneys from Scott & Co,
Lubert Adler’s Bahamian legal representatives, demands that the condo
owners “cease now” the taking of reservations for 2019 as they had been
given no permission by the US financier to do so.
Yet Mr MacDonald hinted that IVRC may well seek financial
compensation for the “quite a few reservations” taken for 2019. “There’s a
book of business, and they think we’re going to hand it over and all the
business there,” he told Tribune Business.
“We’ve spent hundreds of thousands of dollars in marketing and repairs to
get it [Old Bahama Bay] back to normal, and they expect it to be theirs,
which makes no common sense to anybody.
“If we had not taken it on when they were going to close it down in 2011,
this property would be in such disrepair that they would probably not
have a buyer. We’ve restored it over two hurricanes. If it was not for us,
there would be nothing there but our condos.
Still, Mr MacDonald conceded that IVRC would have achieved very little if
Lubert Adler is able to take possession immediately. It had initially sought
an injunction Order preventing Lubert Adler and Skyline from “interfering
or attempting to interfere” with the Old Bahama Bay assets it
operates/manages under a lease agreement.
IVRC’s summons, seen by this newspaper, also wanted the Supreme Court
to prevent Old Bahama Bay’s current and potential new owners from
“evicting or attempting to evict” it from these leased assets, which include
the 72-slip marina, gasoline station, retail and restaurants, reception area
and other facilities essential to a properly-functioning resort.
<< Back to news headlines >>
Christmas Sales Matched 2017 Thursday 27th December, 2018 – Tribune 242
BUSINESS this Christmas was “steady” and comparable to last year’s
holiday shopping period, several local retailers have confirmed.
Charmaine Daley, manager at the John’s Shoes and Accessories store on
Carmichael Road, told Tribune Business: “Things really started to pick up
on Saturday. We saw that last-minute rush. Sales, I would say, have been
maintained. I would say that business has been fairly steady this
Christmas.”
Tara Morley, director of Coles of Nassau and Morley for Men, said: “Most
people I have spoken with had a big Saturday. I’m not sure how it’s been
since then for everyone else, but we were also busy on Sunday and
Monday.”
Ms Morley, who also serves as co-chair of The Bahamas Retail Federation
(BF) and a Chamber of Commerce director, recently said the waiver of 20
percent duty for clothing and shoe retailers had been “extremely
positive”, but added that “word isn’t getting out fast enough” concerning
the concession.
One local electronics retailer told Tribune Business: “We saw a pretty good
pick up in customer traffic heading into the weekend. We haven’t really
looked at the numbers yet, but I think we did OK. Again, without really
looking at the numbers, if I were to take a guess, I would say that overall
business was comparable to last year.”
Collette McKenzie, manager of the Charlotte Street store for leather
goods retailer, Brass and Leather, told Tribune Business: “Due to the 4.5
percent increase in VAT this year business was the same as last year during
the last three shopping days.”
Many Bahamian retailers generate a significant portion of their annual
sales revenue during the busy Christmas shopping period.
<< Back to news headlines >>
Smuggled fuel dents GuyOil sales in 2017 Friday 28th December, 2018 – Kaieteur News
The state-owned Guyana Oil Company Limited (GuyOil) last year lost
ground in its gasoline, thanks to among other things, smuggling.
In its 2017 Annual Report, it was reported that net profit has decreased
almost 29 percent.
GuyOil competes mainly with SOL and Rubis.
The company’s business involves the importation, storage, distribution and
marketing of motor gasoline, gasoil, kerosene, fuel oil, and Castrol
lubricants.
The products are distributed through the large network in the petroleum
business in Guyana, comprising 52 dealer-owned, dealer operated, and
eight company-owned, company-operated service stations.
Its three terminals are at Adventure, Region Two; Providence, East Bank
Demerara and Heathburn, Berbice.
Since the loss of the Venezuela supplies in 2015, Guyana had turned to
the Petroleum Company of Trinidad and Tobago (PetroTrin) refinery in
Trinidad which is the main supplier of Mogas, Gasoil, Kerosene, and Jet A1;
and Staatsolie Maatschappij, Suriname.
Lubricant products are being supplied by BP with the company the sole
distributor of Castrol lubricants in Guyana.
According to the chairman, Mark Bender’s report, “Despite the increasing
manifestation of smuggled/illegal fuel and the increased number of
licensed private importers, GuyOil maintained its dominant position in the
Guyana market and continued to be the leader in stabilizing fuel prices,
to the benefit of the Guyanese consuming public and industries.”
According to the sales revenues, in 2017 sales were $35.259B, compared
to $31.939B in 2016, an increase of $3.32B or 10.39%.
Cost of sales was $30.465B compared to $25.889B in 2016, an increase of
$4.576B or 17.68 percent.
With regards to the sales volumes, GuyOil managed to reach 1,309,093
barrels compared to 1,287,211 barrels in 2016, an increase of 21,882
barrels or 1.7 %.
The annual report disclosed that it should be noted that sales of motor
gasoline, the company’s flagship product, decreased by 4.97%, with the
company losing market share.
In its financial performance explanation, GuyOil said that it recorded a
reduction in profitability in 2017 as compared to 2016.
The major contributory factor was the performance of motor gasoline,
which accounted for 58 percent of revenues in 2017.
Gasoline sales and the associated gross profit both declined by 4.67 %
and 21.5% respectively in 2017 as compared to 2016.
Gross profit for the year was $4.794B compared to $$6.05B for the previous
year, a decrease of $1,256B or 20.76%.
Net profit for the year after taxation amounted to $1.849B compared to
$2.609B for 2016, a decrease of $0.76B or 29.129%.
<< Back to news headlines >>
The stage is set for elections Friday 28th December, 2018 – Kaieteur News
On Friday December 21, 2018, the National Assembly, comprising 65
elected members, debated a motion of no-confidence initiated by the
Leader of the Opposition, Bharrat Jagdeo.
When the vote was taken, those in favour numbered 33 and those
against, 32. The Speaker ruled that the motion had been passed.
The government side of the House, though reeling from shock that one of
its members had voted in favour of the motion, accepted its outcome.
Prime Minister Moses Nagamootoo was reported as saying that while the
outcome was unanticipated, it had to be accepted.
President David Granger subsequently issued a statement indicating that
the government will abide by the stipulations which have been imposed
on it following the passing of the motion.
Those stipulations require the resignation of the Cabinet, including the
President, but with the government remaining remain in office until new
elections, to be held within three months.
The stage is therefore set for general and regional elections within three
months, unless an agreement is reached for it to be extended.
The President, in his statement, has noted that the government will do
everything necessary to facilitate the smooth functioning of those
elections and for normal governmental functions to continue
uninterrupted.
No-confidence motions are part of the democratic tradition. A
government stays in office only to the extent that it can demonstrate that
it enjoys the support of the majority of elected members of the National
Assembly in a vote of no-confidence.
This is a time for good sense to prevail and for all concerned to
demonstrate that Guyana subscribes to democratic tenets. Such a
demonstration will erase the fears of investors and ensure peace and
good order.
<< Back to news headlines >>
Economics minister believes George F.L. Charles Airport could become
hub for regional business Tuesday 25th December, 2018 – St. Lucia News
Economic Minister, Guy Joseph, believes that Saint Lucia has the potential
to attract regional businesses and the George F.L. Charles Airport, located
in Castries, has an integral role to play in achieving that goal.
Speaking on Radio 100’s ‘Drive By’ with Russell Lake, Joseph said the
government’s plans for both Castries and Vieux Fort call for having both
the George F.L. Charles Airport and the Hewannora International Airport,
operational.
He stated that legislation has been passed, where the government is
encouraging regional businesses to establish their headquarters in Saint
Lucia, and the George F.L. Charles Airport could become a hub to
facilitate this.
“We believe that we can attract a lot of regional businesses, so this
becomes your regional hub where you land at the airport,” he said. “Your
hotel is 20 minutes away, your conference centre, and that’s why we are
looking at Point Seraphin hotel with a conference centre, we are looking
at the Vigie side of the beach, that area there, we are looking at having
more conference facility hotels available so you can so you can attract
that level of regional business into Saint Lucia.”
Joseph said that is the plan of the government and he pointed out that
the George F.L. Charles Airport is an important link to regional traffic.
“That is the plan, and George Charles Airport is a very vital link for the
regional traffic,” he stated. “So we believe that our plans for Castries and
our plans for Vieux Fort call for having both airports operational rather
than having one airport being operational.”
<< Back to news headlines >>
Saint Lucia ranked in world’s best beaches list Friday 28th December, 2018 – St. Lucia News
FlightNetWork, one of the world’s largest online travel publications,
selected and ranked 400 of the world’s top beaches with the help of
1,000 of the industry’s leading travel professionals.
Saint Lucia has one beach featured in the ‘Top 50 Central American &
Caribbean Beaches’ category: Jalousie Bay in Soufriere.
Jalousie is ranked 41st.
Grace Bay in Turks and Caicos is ranked #1, Seven Mile Beach in Cayman
Islands #2, and Varadero Beach in Cuba #3.
FlightNetWork said: “Often touted as the Mecca of lust-worthy beaches,
the shores of Central America and the Caribbean provide ample reasons
to pack your bathing suits and book a flight. To ensure your vacation
doesn’t disappoint, we’ve developed one of the most extensive lists of
Central American and Caribbean beaches. When you’re done perusing
this list, you’ll have a firm grasp on the life-enhancing beaches you
deserve to visit as soon as possible.
“To create Central America and the Caribbean’s Top 50 Beaches©.
FlightNetwork collected insight from over 1200 journalists, editors, bloggers,
and agencies, who know all things travel. The invaluable wisdom they
provided ensured our list of Central American and Caribbean beaches
will lead you to shores so extraordinary you may decide to permanently
change your address.”
<< Back to news headlines >>
Panama Canal revenues up 9.1% Monday 24th December, 2018 – Newsroom Panama
Panama Canal revenues climbed 9.1 percent to $2.082 billion between
January and October, up from $1.908 billion in the same period of 2017,
according to official statistics released Monday.
October was the month with the best performance in the period, with
revenues of $217.68 million2.74% more than the $211.76 million in
September
In the first 10 months of this year the Canal, which accounts for around 6%
of world trade, recorded a total of 11,504 transits, 0.89% more than the
11,401 of the same period of 2017.
<< Back to news headlines >>
Poor performance of the Haitian economy in 2018 Wednesday 26th December, 2018 – Haiti Libre
The last Economic Report of the Year of the Economic Commission for
Latin America and the Caribbean (ECLAC) released last week, reveals
that macroeconomic performance in 2018 for Haiti has been modest and
below expectations (October 2017 period) to September 2018). The
ECLAC estimates the growth of Haiti's Gross Domestic Product (GDP) at
only 1.4% (1.2% in 2017), the persistence of an inflationary dynamic of
14.6% (15.4% in 2017), a large public deficit of 6.5% of GDP (3.9% in 2017),
as well as an increase in the current account deficit of 3.5% of GDP (2.9%
in 2017), added to a strong depreciation of the gourd.
The program signed in February 2018 with the International Monetary Fund
(IMF) is no longer valid [loss of significant budget support] due to non-
compliance with quantitative criteria (including the public sector deficit
and the level of reserves), as well as reforms in the electricity and energy
sector, the reduction of fuel subsidies which entails considerable
expenditures for the Treasury, averaging more than $ 200 million a year.
In 2018, the central government's tax burden (12.7% of GDP) decreased
slightly compared to the previous year (13.6% of GDP). The total tax
collection decreased in real terms by -4%, due to the reduction of direct (-
5%) and indirect revenues (-11%) and the contraction of customs revenue
(-8%). Total central government expenditure increased by 17.7% in real
terms, following a positive change in current expenditure (17%), including
subsidies (37%), but also public investment (26%). %). It should be noted
that for the first time in the last five years, these investments were intended
for programs and projects of infrastructure and agricultural work.
The overall central government deficit (6.5% of GDP) was largely financed
by net contributions from the Central Bank (BRH) [more than 26 billion
Gourdes, which reached record figures (4% of GDP), despite the
agreement management of cash, consisting of the alignment of public
expenditures according to disposable income, subscribed between the
Ministry of Economy and the BRH in September 2017.
Haiti's external public debt posted an overall balance of 2.1 billion dollars
(22 percent of GDP), with a slight increase of 0.2 percent in 2018.
The monetary policy of 2018 has adopted a cautious attitude, focused on
two main objectives: to reduce inflation and to mitigate the depreciation
of the Gourde against the dollar. BRH maintained the benchmark interest
rate at 12%. Although the average exchange rate (65.42 gourdes per
dollar) in 2018 is similar to that of 2017, a nominal exchange rate
depreciation process (11.6%) accelerated from March, given the stricter
measures on dollar-denominated transactions (which were cancelled in
October) and speculation about a shortage of dollars in the economy.
BRH's net dollar sales were $82 million (twice the amount of 2017), resulting
in a loss of nearly $150 million in net international reserves of $775 million at
the end of September ($924 million in 2017).
The current account deficit accounted for 3.5% of GDP (2.9% in 2017),
driven by the trade deficit and partially offset by the flow of remittances
from the diaspora. Imports of goods increased by 26% compared to a 9%
change in exports. The trade deficit of $ 3.5 billion, up 32% from 2017, is
due to the rise in international oil prices (+ 33%) and, to a lesser extent,
other commodities and food products. The level of exports has been
maintained thanks to the export results of garment factories which
account for 75% of the total value of exports and agricultural products.
In December 2018, inflation was expected to be 15.3% year-on-year
(14.5% in November) whose upward trend was mainly related to imported
products, through the transmission of the depreciation of the exchange
rate.
Moreover, at the level of the Greater Region (Caribbean and Latin
America), ECLAC expects the Dominican Republic to close the year 2018
with a growth rate of 6.3%, the highest rate of growth. in the region
followed by Antigua and Barbuda (5.3%), Grenada (5.2%), Bolivia (4.4%),
Panama (4.2%), Paraguay (4.2%), Chile (3.9%), Peru (3.8%), Honduras
(3.7%), Guyana (3.4%), Saint Vincent and the Grenadines (3.2%) and
Costa Rica ( 3%), Mexico (2.2%), Uruguay (1.9%), Suriname (1.9%), Trinidad
and Tobago (1.9%), Jamaica (1.5%), Haiti (1, 4%), Brazil (1.3%), Cuba (1.1%)
and Ecuador (1%). On the other hand, Venezuela will end the year with a
-15% decline in GDP, Dominica (-4.4%) and Argentina (-2.6%).
<< Back to news headlines >>
Global stocks cautiously follow Wall Street's surge Thursday 27th December, 2018 – Reuters
Stocks in Europe and Asia rose cautiously on Friday after Wall Street ended
a volatile session with big gains, but fears of further price swings and
worries about U.S. politics kept safe-haven currencies such as the yen and
Swiss franc in demand.
European shares opened in positive territory after Thursday’s 1.7 percent
retreat and were up about 1.4 percent at 0920 GMT, with most bourses
and sectors in the black.
They have not matched a two-day surge on U.S. indexes that saw the
benchmark S&P 500 index gain 5.9 percent, its best performance since
late August 2015 when the market was in the midst of a downturn over a
slowing Chinese economy.
Asian stock markets also posted modest gains, with MSCI’s broadest index
of Asia-Pacific shares outside Japan rising 0.8 percent.
While Wall Street’s capacity to shake off an initial selloff and post one of its
highest daily percentage increases has fuelled hope that some of the
selling pressure is easing, investors in Europe remained wary.
“The volatility here at year-end is unlikely to be sustained, but without
more encouraging signals from Washington, the markets will likely remain
treacherous in the New Year,” Marc Chandler at Bannockburn securities
told clients.
Volatility in Europe and in the United States has spiked to highs not seen
since the sharp global correction in stock markets in February.
The yearly picture for world stocks remains grim, with the MSCI world
equity index, which tracks shares in 47 countries, losing close to 12 percent
so far in 2018.
While stocks showed signs they might recoup more losses in the year’s final
days, lingering doubts about the stability of the market sustained demand
for safe-haven currencies.
“Markets are a bit more cautious on risk appetite, with the Japanese yen
and the Swiss franc gaining,” said Lee Hardman, an FX strategist at MUFG
in London.
“The dollar continues to be soft across the board as volatile stock markets
are reducing the relative safe haven appeal for U.S. assets.”
The dollar extended overnight losses and was down 0.55 percent at
110.40 yen and was on track to lose more than 2 percent this month.
Against the Swiss franc, it declined 0.3 percent to 0.9853 francs per dollar
after slumping more than 0.8 percent the previous day.
The euro was a shade higher at $1.1444.
Oil prices rebounded and took back some of the ground lost this week,
but remained close to their lowest levels in more than a year as rising U.S.
inventories and concern over global economic growth kept markets
under pressure.
Brent crude oil was up $1.10, or 2.1 percent, at $53.26 a barrel by 0906
GMT, having earlier risen more than 3 percent. It had dropped 4.2 percent
on Thursday.
Spot gold, which has benefited this week from the global market turmoil,
was just slightly higher at $1,276.33 an ounce following an ascent to a six-
month high of $1,279.06 on Wednesday.
In fixed income, Italian yields rose as investors made space for the last
auction of the year.
A strong auction of zero-coupon bonds on Thursday led to a mini-rally in
Italian government debt as investors saw this is a good omen for today’s
up to 5-billion-euro bond sale, which caps one of the largest borrowing
programs.
The Treasury is hoping the auction will decisively show that Italy has turned
a corner after months of volatile trading on the back of fractious talks
between Rome and Brussels over its spending plans.
<< Back to news headlines >>
Oil prices rebound but still weak due to oversupply Wednesday 26th December, 2018 – Reuters
Oil prices rebounded on Friday, recovering slightly from heavy losses this
week, but remained close to the lowest levels in over a year as rising U.S.
inventories and concern over global economic growth rattled markets.
Brent crude oil LCOc1 was up 69 cents, or 1.32 percent, at $52.85 a barrel
by 1130 GMT, having earlier risen more than 3 percent. It had dropped 4.2
percent on Thursday.
U.S. light crude CLc1 was up 96 cents, or 2.15 percent, at $45.57, after
rising 3.6 percent in early trade.
Oil prices fell to their lowest in almost 18 months this week and are down
more than 20 percent for the year, depressed by ample supplies that
have filled fuel tanks worldwide.
Stock markets in Europe and Asia rose on Friday after Wall Street ended a
volatile session with big gains, but fears of further price swings and worries
about U.S. politics kept investors cautious. [MKTS/GLOB]
“For the time being, the stock market and the oil market will echo each
other,” said Ahn Yea-Ha, commodity analyst at Kiwoom Securities.
“Global economic slowdown worries have been weighing on stock
market movements, and oil prices are not free from those concerns.”
Stephen Innes, head of trading for Asia-Pacific at futures brokerage
Oanda in Singapore, said crude prices had been pressured by slowing
economic growth “coupled with the expectation of strong U.S.
production in the new year”.
U.S. crude inventories rose 6.9 million barrels to 448.2 million barrels in the
week to Dec. 21, according to the American Petroleum Institute. The U.S.
Energy Information Agency (EIA) will publish its data at 1600 GMT. [EIA/S]
“If the EIA’s data shows a rise in U.S. crude inventories, that would cap
price gains,” Ahn said.
The United States has emerged as the world’s biggest crude producer this
year, pumping 11.6 million barrels per day (bpd), more than both Saudi
Arabia and Russia.
Russian Energy Minister Alexander Novak said on Thursday that Russia
would cut its crude output by between 3 million and 5 million tonnes in the
first half of 2019 as part of a deal between producers.
Earlier this month, the Organization of the Petroleum Exporting Countries
and its allies including Russia, agreed to cut output by 1.2 million bpd, or
more than 1 percent of global consumption, starting in January.
Markets will be closed on Tuesday for the New Year’s Holiday and trading
is expected to be light on Monday.
“Things will only start to get slowly back to normal at the end of next
week,” said Olivier Jakob of Swiss energy consultancy Petromatrix. “Until
then we continue to view the crude oil futures as very difficult to trade
and too dependent on the variations of the equity markets.”
<< Back to news headlines >>
Calypso fund drops $0.50 Friday 28th December, 2018 – Trinidad Express Newspapers
OVERALL market activity resulted from trading in 13 securities of which four
advanced, four declined and five traded firm.
The Composite Index advanced by 0.75 points (0.06 per cent) to close at
1,303.34. The All T& T Index advanced by 0.80 points (0.05 per cent) to
close at 1,703.24.
The Cross Listed Index advanced by 0.10 points (0.08 per cent) to close at
122.08. The SME Index remained at 100.00. Trading activity on the first-tier
market registered a volume of 97,164 shares crossing the floor of the
Exchange valued at $3,363,780.49.
TTNGL LIMITED was the volume leader with 35,914 shares changing hands
for a value of $1,050,253.50, followed by West Indian Tobacco Company
with a volume of 22,500 shares being traded for $2,143,125.00. JMMB
Group contributed 22,000 shares with a value of $38,837.80, while
GraceKennedy added 14,500 shares valued at $42,050.
Scotiabank registered the day's largest gain, increasing $0.25 to end the
day at $64.25. Conversely, Calypso Macro Index Fund registered the day's
largest decline, falling $0.50 to close at $15.
On the mutual fund market 3,985 shares changed hands for a value of
$70,087. Calypso Macro Index Fund was the most active security, with a
volume of 2,000 shares valued at $30,000.
Calypso Macro Index Fund declined by $0.50 to end at $15. CLICO
Investment Fund advanced by $0.03 to end at $20.19.
The second-tier market did not witness any activity. Mora Ven Holdings Ltd
remained at $12.00.
<< Back to news headlines >>
Oil spill contained, but fishermen fear chemicals Friday 28th December, 2018 – Trinidad Express Newspapers
AN oil spill in the Gulf of Paria last week has been contained and an all-
clear was given for fishermen to return to sea.
But the fishermen have expressed concerns about the chemicals being
used in the clean-up operations.
Councillor for Cedros, Shankar Teelucksingh, said fishermen met at the
weekend to discuss their concerns.
'There is no communication from the company on the chemicals being
used and how safe it is. The fishermen are now reluctant to go back out at
sea,' he said yesterday.
The oil spill, which has been quietly leaking into the Gulf of Paria, was
discovered last Thursday.
Heritage Petroleum Company Limited, the company established to
replace Petrotrin, issued a release last Friday stating that its HSE
department had received reports of oil having been sighted in the vicinity
between RP1 and Platform 9, Soldado Main Field at 11.25 a.m.
The company stated that its oil spill contingency plan was immediately
activated and the relevant personnel were dispatched to the scene.
The spill has been isolated and Heritage HSE personnel have shut in SWS
and surrounding facilities. The volume of spilled oil is estimated to be less
than five barrels, it stated.
Another blow
Heritage Petroleum stated that clean-up activities and repairs were in
progress and there had been no material impact on the environment.
'There have been no further oil sightings or evidence of oil leakage and
monitoring is on-going. All regulatory agencies, including the Ministry of
Energy and Energy Affairs, the Environmental Management Authority
(EMA), and the Occupational Safety and Health Agency (OSHA) have
been notified,' it stated.
The Express was told that a skeleton crew of former Petrotrin workers was
called out to contain the leak. Teelucksingh said the oil had not reached
the shore. 'The fishermen have taken a decision to remain on land
because they are not sure how much oil is out there. This is another blow
for the fishermen because just days ago they were told of the cessation of
regular gas. We are having a meeting with them this evening to discuss
this,' he said. The Ministry of Energy and Energy Industries last week
announced the cessation of the supply of regular gasoline (RON 83) on
the local market. Following the closure of the Petrotrin Refinery the last
stocks of regular gasoline were distributed by December 7. Fishermen
complained that they would now have to pay more than double the
price for fuel. And they warned that the price of seafood may increase
this Christmas season.
<< Back to news headlines >>
South, Central chambers: Slow sales in 2018 Friday 28th December, 2018 – Trinidad Express Newspapers
The retail sales sector witnessed sharp declines in 2018 according to the
heads of three business chambers with one chamber saying December
sales were down by a whopping 60 per cent when compared to 2017.
However, the chambers were optimistic that 2019 should be a better year
as two elections were projected to occur in 2019 and 2020 respectively
with infrastructure works expected to increase in preparation for the
elections.
San Fernando Business Association president Daphne Bartlett, in a
telephone interview yesterday said many businesses had lost money in the
latter half of the year and had hoped they would “break even” in
December.
“The sales for this year was slow and it came right down to near 60 per
cent less in the month of December. Many of the businesses lost money
for the last six months and the thing is, we are trying hard not to send
home any employees.”
“We know exactly what caused it and when you send home, they are
saying 5,500 but we know it is closer to 12,000-15, 000 persons who would
have become unemployed. If you do things that will close many
businesses, what you are really doing is slowing the economy.”
“My advice for the government is it should always be cognizant of the
fact that businesses drive the economy. All these new for sale signs going
up, for rent, businesses being closed, what is that indicating to you. It says
something is going wrong.”
The outspoken business head said the Petrotrin saga was far from over
and wondered where government would get the US dollars needed to
purchase fuel on the international markets.
“You are taking our US dollars to buy fuel when before you were spending
TT dollars to get the fuel. I think they need to sit down, get some advisor to
advise them what to do and how to do it because we may end up in the
worst possible way by the IMF.”
Meanwhile, Penal/Debe Chamber of Commerce president Rampersad
Sieuraj said sales in the region were “rather slow” when compared to
previous years.
“Things were not as bright as it used to be in prior years and I think the
Petrotrin issue might have had something to do with that. Also the issue of
crime continue to be a problem which we have in Penal/Debe.”
However he was optimistic about 2019 saying TT would be on an election
footing which traditionally witnessed an increase in government spending
on infrastructure works such a roads bridges, and drains.
“One would hope that there will be a reduction in crime to start with and
create a better business climate.”
Couva/ Point Lisas Chamber of Commerce head Ramchand Maraj said
central businesses have recorded reduced sales due to the closure of the
Arcelor Mittal steel plant in 2017 as well as Petrotrin in early November
2018.
He said the New Year may witness a re-emergence of the plant as bids
were still open as well as the opening of more family owned businesses.
Maraj however said the non-importation of regular gasoline for the
region’s fisher folk as well as the crime situation had contributed to
decreased economic activity in the region.
“The only disappointing thing is the fisher folk experiencing with the regular
gas and that is creating real hardship. And on the issue of crime, I hope it
is abated and I want to commend Commissioner of Police Gary Griffith,
and all the efforts made by the police service.”
He too said the elections scheduled for 2019 and 2020 should also
generate economic activity in the coming years.
<< Back to news headlines >>
ECCB Governor predicts 3 per cent growth Thursday 27th December, 2018 – The Antigua Observer
The Governor of the Eastern Caribbean Central Bank (ECCB) is predicting
growth of 3 per cent for the Eastern Caribbean Currency Union (ECCU).
Timothy Antoine made the announcement in his 2018 Christmas message,
released recently.
Antoine, who assumed the position two years ago, said despite some
challenges experienced, 2018 proved to be a relatively good one for the
ECCB and the ECCU.
“Following the growth setback last year, the ECCU recovered and is
projected to grow by about 3 per cent. Furthermore, there has been a
reduction in unemployment in some member countries. The ECCB
continues to make significant strides with the implementation of our
strategic plan,” Antione said.
He also added that, “Amid all of our hard work to preserve monetary and
financial stability and promote growth and development, there were
several memorable moments including the celebration of our 35th
anniversary, our global award [from] Global Markets, the hosting of the
Intra Regional Central Bank Games, the basketball team that emerged as
champions of the St Kitts Amateur Basketball Association A-Division
League, and Christmas Lighting of the ECCB Campus.”
The governor also stated that in looking ahead to 2019, an exciting year
beckons, as several strategic initiatives are set come to fruition. These
include the credit bureau, the partial credit guarantee scheme, the
rollout of their FinTech pilot, and their new bank notes.
Meanwhile, Sir K Dwight Venner (the deceased former governor of the
ECCB) will be memorialised on the EC $50 note when the bank releases its
new-look notes for 2019. Sir Dwight, who served as governor for 26 years,
passed away in 2016.
The material currently used to produce the EC dollar notes will also be
changed, making for a more durable currency.
According to the Central Bank, other features will include the notes being
lateral instead of horizontal, the security features will also be enhanced to
include a holographic window on the $20, $50 and $100 notes, which
would make them difficult to replicate.
The holographic window will also appear on the $5 and $10 notes on a
smaller scale.
<< Back to news headlines >>
BVI’s accommodation inventory to normalize in a year or so Thursday 27th December, 2018 – BVI News Online
Residents and visitors have been given a clearer indication of how much
longer they will have to wait before the BVI returns to operating at full
capacity as it relates to accommodation in the territory.
“From all accounts, we anticipate that our room inventory will be near
normalcy by the end of 2019 or by Q2 (the second quarter) of 2020,”
Premier and Minister of Tourism Dr D Orlando Smith said in an address a
week ago.
The latest statistics indicate that, at the end of 2018, the BVI has
approximately 1,000 rooms on land and about 3,200 berths at sea. The
current number of berths represent about 75 percent of the territory’s pre-
storm inventory, Dr Smith said.
$12 million enhancements
In another aspect of tourism, Premier Smith announced that some $12
million is being spent to create ‘enhancements’ in the sector.
These enhancements will come in the form of increased signs territory-
wide. This is in an effort to make the BVI more tourist-friendly, Dr Smith said.
The tourism minister said the signage initiative will happen in a “phased
process”.
A number of new bathroom facilities are also to be constructed for visitors.
“We expect to see bathrooms added to Smugglers, Long Bay, Brewers
Bay, Spring Bay and Savannah Bay in the foreseeable future. Cane
Garden bay has already been completed. Our guests are asking for these
enhancements and for us to maintain our luxury designation, we have to
meet the demands of our visitors. To meet this objective, a comprehensive
$12 million-dollar plan has been prepared by the BVITB is in place and we
expect to see work continuing at an even faster pace in the first quarter
of 2019,” Dr Smith explained.
<< Back to news headlines >>
Construction of geothermal power plant earmarked for 2019 Thursday 27th December, 2018 – Dominica News Online
Minister for Trade, Energy and Employment, Ian Douglas, has said that the
government is now in a position to begin construction of a geothermal
power plant in the Roseau Valley.
Ian Douglas said that project could begin by the third quarter of 2019 as
Dominica continues on its path towards becoming a climate resilient
country.
“The government has seen tremendous progress being made in the
Geothermal Development Programme. This is one of the pillars upon
which we intend to achieve the goal of being the first climate resilient
country in the world. We are now in the position to begin the construction
of the power plant by the third quarter of 2019,” he said
He further mentioned how this can positively impact on Dominica’s
growth and advancement.
“With the commissioning of this plant, we will be in a position to benefit
from clean, reliable, low-cost, renewable, high-quality energy supply in
the future, which will benefit all sectors of productive activity in
Dominica.”
Douglas thanked the international partners who have assisted the
government in this quest to date.
The quest by the current administration to tap Dominica’s geothermal
energy potential started as far back as 2011 when the government signed
a contract for the exploratory drilling of geothermal wells in the Roseau
Valley.
Drilling for the island’s geothermal project officially ended in 2015 and the
project entered a new stage.
In his budget address that same year, Prime Minister Skerrit said that
negotiations were underway for a joint venture with a French investment
consortium, to build and operate the domestic plant with the aim of
exporting electricity to Guadeloupe and Martinique.
The government subsequently announced in 2016, that it had taken a
decision to run the geothermal project as a company solely owned by
the government and people of Dominica and would go ahead alone in
constructing a small geothermal plant in Dominica. It committed to
investing US$15M into the geothermal company with funds from the
Citizenship by Investment Programme.
In February 2017, Prime Minister Skerrit stated that an investment of $45-
million would be made available for the development of a geothermal
plant. The funds, he said, would come from the country’s Citizenship by
Investment Program (CBI).
If Minister Douglas’s announcement materializes, it appears that some
eight years after the geothermal development project started, Dominica
could receive its first geothermal power plant.
<< Back to news headlines >>
Govt to remove duties on biodegradable items Thursday 27th December, 2018 – Dominica News Online
In preparation for the implementation of the ban on Styrofoam and
plastics, the government has taken a decision to removed duty on bio
degradable items.
Hon. Prime Minister Roosevelt Skerrit said this measure will take effect from
January, 2019.
“The cabin has taken a decision and legislation to ban on Styrofoam
bowls, cups and plastic food utensils and remove the duties and
biodegradable items so that our citizens can have access to it in a
cheaper fashion. From January, we will have that in full effect and we
look forward in everybody cooperating and collaborating.” he stated
The prime Minster also expressed concern over the indiscriminate littering
which is taking place in Dominica.
“There will be other actions that the government will articulate in respect
to biodegradable items but also the littering, because we have to address
this in a fundamental and serious way as a country. Too many people are
just throwing things on the streets, on the side of the road and ravines with
no admonition and those that do not listen, will feel the full extent and
wrath of the law,” Skerrit said
The Prime Minister encourages everyone to work together as a country “if
we want to see a pristine and clean Dominica.”
<< Back to news headlines >>
ECLAC Says Latin America and Caribbean Economies to Grow 1.7% Next
Year, Amid Greater International Uncertainty Thursday 27th December, 2018 – Caribbean 360
The year 2019 looks to be a period in which global economic
uncertainties, far from waning, will intensify and will arise from different
fronts. This will have an impact on the growth of the economies of Latin
America and the Caribbean, which, on average, are seen expanding 1.7
per cent, according to new projections released today by the Economic
Commission for Latin America and the Caribbean (ECLAC).
The United Nations regional organization unveiled its last economic report
of the year, the Preliminary Overview of the Economies of Latin America
and the Caribbean 2018, at a press conference led by its Executive
Secretary, Alicia Bárcena, in Santiago, Chile.
According to the document, the countries of Latin America and the
Caribbean will confront a complex global economic scenario in the
coming years, in which less dynamic growth is expected, both for
developed countries as well as emerging economies, along with
increased volatility of international financial markets. On top of this, there
is a structural weakening of international trade, aggravated by trade
tensions between the United States and China.
The economic growth projection for Latin America and the Caribbean in
2019 is 1.7 per cent, slightly below what ECLAC released last October (1.8
per cent), while the estimate for the current year (2018) was also trimmed
to 1.2 per cent (from the 1.3 per cent forecast in October).
The greatest risk to the region’s economic performance in the run-up to
2019 continues to be an abrupt deterioration in the financial conditions for
emerging economies, the report adds. During 2018, emerging markets,
including Latin America, showed a significant reduction in external
financing flows, while at the same time sovereign risk levels increased and
their currencies depreciated against the dollar. The text indicates that
new episodes of deterioration in future financial conditions cannot be
discounted, and that the consequences for countries will depend on how
exposed they are in terms of their external financing needs and profiles.
“Public policies are needed to strengthen sources of growth and cope
with the scenario of uncertainty at a global level,” Bárcena indicated.
“The active role of fiscal policy in the region in terms of revenue and
spending must be bolstered. In this sense, it is essential to reduce tax
avoidance and evasion and illicit financial flows. At the same time, direct
taxes and also health-related and green taxes must be strengthened. In
terms of expenditures, in order to stabilize and invigorate growth, public
investment must be reoriented toward projects that have an impact on
sustainable development, with emphasis on public-private partnerships
and on productive reconversion, new technologies and green
investment. All of this while protecting social spending, above all in
periods of economic deceleration, so that it is not affected by cutbacks.”
The senior UN official also warned that public debt profiles must be taken
care of in light of the uncertainty that could increase their cost and levels.
As in previous years, in its Preliminary Overview of the Economies of Latin
America and the Caribbean, ECLAC projects a growth dynamic with
varying intensities between countries and subregions. This reflects not only
the differentiated impacts of the international context on each economy,
but also the dynamics of spending components – mainly consumption
and investment – which have been following different patterns in
economies of the north and of the south.
In this vein, it is forecast that Central America (excluding Mexico) will grow
3.3 per cent in 2019, South America 1.4 per cent and the Caribbean 2.1
per cent. On a country level, the island of Dominica is seen leading
regional growth with a 9.0 per cent expansion, followed by the Dominican
Republic (5.7 per cent), Panama (5.6 per cent), Antigua and Barbuda (4.7
per cent) and Guyana (4.6 per cent). At the other extreme, Venezuela will
suffer a -10 per cent contraction in its economy, Nicaragua -2.0 per cent
and Argentina -1.8 per cent. The region’s biggest economies, Brazil and
Mexico, are seen growing 2.0 per cent and 2.1 per cent, respectively.
In its stocktaking of the current year, 2018, ECLAC’s report indicates that
economic growth was led by domestic demand. Fixed investment
showed a dynamic of recovery, while private consumption remained the
main source of growth, even though its growth rates moderated since the
second quarter of 2018.
In terms of fiscal policy, consolidation deepened in 2018 and the process
of fiscal adjustment led to a reduction in the primary deficit (from 0.7 per
cent of GDP in 2017 to 0.6 per cent of GDP in 2018), although this was
accompanied by a small increase in public debt.
<< Back to news headlines >>
More Canadians To Hit Costa Rica Beaches with New Direct Flights from
Vancouver Thursday 27th December, 2018 – Qcostarica
The Canadian low-cost airline Sunwing, that also operates seasonal flight
services from over 30 local Canadian gateways, started operations this
week between Vancouver International airport (YVE) and the Daniel
Oduber International airport (LIR) in the Guanacaste of Liberia.
The flight operates weekly on Sundays with a Boeing 737 MAX.
Sunwing, based in Toronto, Canada, will operate the Vancouver
connection until March 31, 2019.
“The Canadian tourist is one of the most interesting in Costa Rica and the
different tourist attractions of the country, fleeing the cold of winter to be
received by the Costa Rican sun motivates hundreds of tourists to choose
us as their favourite holiday destination, for that we serve the tourist with
quality and excellence,” said César Jaramillo, manager of Coriport, the
Liberia airport manager.
Direct flights from Canada to Costa Rica took off from 2012 after the
signing of the air transport agreement to open the door to commercial
flights between both countries, without the need to fly through the United
States.
In addition to Sunwing, Montreal based Air Transat operated multiple
flights weekly to San Jose (SJO) and Liberia and Canada’s national
carrier, Air Canada, with daily service to San Jose from Toronto and
Montreal.
For the Costa Rican Tourism Institute, the Vancouver flight also benefits the
economy of hundreds of Guanacaste families that are positively
impacted by the increase in tourists in high season.
“We are pleased to receive the first flight of the company Sunwing on the
Vancouver-Liberia route and expand the possibilities of tourism growth in
Guanacaste, with flights and aeronautical technology that allows us to
reach new destinations. We continue working to strengthen the national
tourism industry, which generates 8.2% of the Gross Domestic Product,
“said Maria Amalia Revelo, Minister of Tourism.
<< Back to news headlines >>
Trump administration puts stop to new flood insurance policies Thursday 27th December, 2018 – Reuters
The Trump administration has decided it cannot authorize new flood
insurance policies, citing the partial shutdown of the federal government
due to a budget impasse in Congress and potentially putting thousands of
home sales in limbo.
The Federal Emergency Management Agency (FEMA), which oversees a
federal program that insures about 5 million homes and businesses, on
Wednesday posted a notice on its website that the program will not be
able to “issue new contracts for flood insurance during a lapse in authority
unless Congress passes legislation.”
The National Association of Realtors estimated the decision could disrupt
up to 40,000 home sales each month.
FEMA said that during the shutdown, the government-backed National
Flood Insurance Program will continue to pay all claims on policies taken
out before midnight on Dec. 21.
The federal government has been partially shut down since Saturday
because of an impasse over President Donald Trump’s demand for $5
billion in taxpayer funding for a proposed Mexican border wall. Last week
Trump said his administration was prepared for a lengthy shutdown.
<< Back to news headlines >>
U.S. government advises workers on staving off creditors amid shutdown Thursday 27th December, 2018 – Reuters
As a partial shutdown of the U.S. government stretched into its sixth day,
the agency that oversees the federal workforce offered advice on
staving off creditors to the estimated 800,000 employees who could be
affected by a lapse in pay.
The Office of Personnel Management (OPM) suggested furloughed
workers could offer partial payments to mortgage lenders and posted on
its website form letters they could use.
“I am a Federal employee who has recently been furloughed due to a
lack of funding of my agency,” said one of three templates offered by the
agency. “Because of this, my income has been severely cut and I am
unable to pay the entire cost of my mortgage, along with my other
expenses.”
In a Twitter post, OPM said idled workers should contact personal
attorneys if they needed advice on dealing with creditors.
President Donald Trump and congressional leaders have reached an
apparent stalemate in a fight over government funding with the president
insisting on $5 billion from taxpayers for a wall along the U.S. border with
Mexico against stiff resistance from Democrats.
Unable to reach a compromise, about a quarter of government agencies
shut down at midnight last Friday.
Trump has said he will wait to reopen the government for however long it
takes to receive the funding for the wall, and Democrats sound willing to
wait until they claim control of the U.S. House of Representatives on Jan. 3.
The stakes are high for the estimated 15 percent of the federal workforce
whose agencies are affected. Although they will receive paychecks as
normal for the pay period that ended Dec. 22, future pay remains in
doubt, even as their bills do not.
According to the American Federation of Government Employees, a
union that represents federal employees, about 420,000 federal
employees will be working without pay, while 380,000 others have been
told to stay home.
AFGE spokeswoman Ashley De Smeth said the letter templates were
developed during a shutdown in 2013.
“It is business as usual,” she said. “It is up to each agency to decide how
to use them.”
OPM did not respond to a request for comment.
“Due to a lapse in appropriations, OPM responses to incoming media
(requests) may be delayed,” an email from the office said.
<< Back to news headlines >>
Stock futures higher as Wall St.'s post-Christmas rally continues Friday 28th December, 2018 – Reuters
U.S. stock futures were higher on Friday, extending a two-day rally amid
volatile trading and raising expectations that the recent selloff may have
eased for now.
The final week of 2018 has seen wild swings in equities. The benchmark
S&P 500 tested its 20-month low and was at the brink of a bear market
territory early in the week before the three main indexes roared back, with
their biggest daily surge in nearly a decade on Wednesday and a late
rally the following day.
On Thursday, the S&P fell as much as 2.8 percent but closed 0.8 percent
higher as the markets turned around late in the session.
The CBOE Volatility Index .VIX, an indicator of short-term volatility in the
stock market, rose to 36 midweek, its highest level since early February. It
has since pulled back below 30, but remains well above a recent low of
15 at the beginning of December.
In a sign of optimism on trade on Friday, China opened the door to
imports of rice from the United States for the first time ever in the run-up to
talks between the two countries in January.
“With two trading sessions left before year end, the indices are likely to be
supported by window dressing and technical factors,” said Peter Cardillo,
chief market economist at Spartan Capital Securities in New York.
Cardillo expects another round of positive trading, which he says will be
supported in part by the news that China is allowing U.S. rice imports
ahead of the trade talks.
At 6:39 a.m. ET, S&P 500 e-minis ESc1 were up 0.95 percent. Dow e-minis
1YMc1 were up 0.92 percent and Nasdaq 100 e-minis NQc1 were up or
0.81 percent.
Despite two days of gains, all three major indexes are still down more than
9 percent for December and remain on track for their biggest annual
percentage drop since 2008.
Investors head into 2019 with a list of worries ranging from U.S.-China trade
tensions, rising interest rates and a cooling economy to a partial U.S.
government shutdown, which is now in its sixth day.
On the economic calendar, data from National Association of Realtors
will likely show pending home sales edged higher to 560,000 million in
November from 544,000 million the month before. The data is expected at
10:00 a.m. ET.
<< Back to news headlines >>
May's Brexit deal can get through parliament – Hunt Friday 28th December, 2018 – Reuters
Prime Minister Theresa May’s Brexit deal can be passed by the British
parliament if the European Union provides clarification that the Northern
Irish “backstop” will be temporary, foreign minister Jeremy Hunt said on
Friday.
The backstop is an insurance policy designed to prevent the return of
border checks between Ireland, an EU member, and British-ruled Northern
Ireland. It is proving the biggest obstacle to a divorce deal between
Britain and the EU.
May pulled a vote on her divorce deal earlier this month after admitting
that parliament would reject it. MPs are set to discuss the agreement
again next month, with a vote in the week starting Jan. 14.
Parliament is deeply divided, with both supporters and opponents of Brexit
opposed to May’s deal, which seeks to maintain close ties with the EU.
Britain is due to leave the bloc on March 29 and the impasse has
increased the chances of a no deal Brexit and led to growing calls for a
second referendum.
Hunt said May’s withdrawal agreement could be passed by MPs if the EU
made clear that the Irish “backstop” would be time-limited.
Critics fear the backstop will trap Britain in a customs union with the EU
indefinitely, while European leaders have said they would not renegotiate
the treaty.
“If it is temporary, then parliament can live with that,” Hunt told BBC radio.
“We can get this (the deal) through, absolutely can.”
If May’s deal fails, senior ministers are themselves split on what should
happen. Some suggest that another referendum should be considered,
while others, including Hunt, favour a “managed” no-deal Brexit. May
herself has said neither option is viable.
Jeremy Corbyn, leader of the opposition Labour Party, said May should
recall parliament early to allow a vote on her Brexit deal, and warned it
was a matter of “when, not if” his party tried to force an election by
proposing a vote of no-confidence in the government.
MPs are not due to return until Jan. 7 and Corbyn said the government
was using the delay as a ploy to put pressure on parliament to accept her
deal or risk a no-deal Brexit.
“What I suspect is that it’s a completely cynical manoeuvre to run down
the clock and offer MPs the choice of the devil or the deep blue sea,”
Corbyn said in an interview with the Independent newspaper.
<< Back to news headlines >>
France's Vinci in $3.7 billion swoop on UK's Gatwick airport Thursday 27th December, 2018 – Reuters
France’s Vinci (SGEF.PA) is taking advantage of a Brexit hit to UK asset
prices to buy a majority stake in Britain’s second-busiest airport, London’s
Gatwick, for 2.9 billion pounds ($3.7 billion), the construction company
said on Thursday.
The deal to buy a 50.01 percent stake gives Vinci, which already runs 45
airports in 12 countries, access to the world’s largest metropolitan aviation
market and is part of the company’s drive to expand its most promising
businesses.
Vinci Airports President Nicolas Notebaert signalled uncertainty over
Britain’s departure from the European Union next March had cut the price
of buying into Gatwick, and forecast any hit to UK economic growth after
Brexit was likely to be offset by a rise in tourism due to a weaker pound.
“Just a few months ago we would not even have dreamed of being able
to acquire an unlimited licence in the London airports system for less than
20 times core earnings,” he said on a conference call, referring to the
price of the deal.
The acquisition is expected to close by June 2019.
It comes just days after drone sightings caused 36 hours of chaos for more
than 100,000 travellers at Gatwick. CEO Stewart Wingate, who will remain
in his role, said the airport was working to avoid a repeat of the disruption.
Thirty miles (48 km) south of London, Gatwick serves 228 destinations in 74
countries and is a major base for airlines including EasyJet (EZJ.L) and
British Airways (ICAG.L).
It handles over 46 million passengers per year, more than a quarter of the
170 million passenger journeys the London airports system - led by
Heathrow - handled in 2017.
Vinci says Gatwick is the most efficient airport in the world and operates
the busiest single runway, which in 2017 achieved a record 950 flights in
one day.
Gatwick plans to serve growing demand by optimising its existing runway
and boosting use of its standby one.
FRENCH AIRPORTS GIANT
Vinci is buying Gatwick shares from existing shareholders.
Investment group Global Infrastructure Partners will halve its stake to 21
percent, while Abu Dhabi Investment Authority will own 7.9 percent,
California Public Employees’ Retirement System 6.4 percent, National
Pension Service of Korea 6 percent and Australia’s Future Fund Board of
Guardians 8.6 percent.
The deal follows Vinci’s purchase this year of the airport management
portfolio of Airports Worldwide, which allowed it to enter the United States
and expand in Europe.
Notebaert said the deal would “not in the least” affect Vinci’s interest in
Paris airports operator ADP (ADP.PA), which the government plans to
privatise.
“For ADP, all depends on the terms the government will set in coming
months. We have the financial and operational capacity,” he said.
Vinci operates airports in countries including France, Portugal, Britain,
Sweden, Serbia, Cambodia, Japan, United States, Dominican Republic,
Costa Rica, Chile and Brazil. In 2017, its network handled over 180 million
passengers.
To counter signs of weakness in its construction business, the company has
been expanding into faster growing and more profitable concessions
such as airports and motorways.
In 2017, Vinci Airports’ managed activities revenue was 3.2 billion euros,
with consolidated revenue at 1.4 billion euros.
Between 2014 and 2017, Vinci Airports’ revenue grew 196 percent, driving
the concessions business up 19.3 percent. Vinci Construction’s revenue fell
9.5 percent over the same period.
At 1403 GMT, Vinci shares were little changed at 70.5 euros.
<< Back to news headlines >>
German inflation slows just as ECB dials back stimulus Friday 28th December, 2018 – Reuters
Inflation in Germany’s most populous regions slowed in December, just as
the European Central Bank ended a crisis-fighting bond purchase scheme
after four years and as global markets slumped.
The annual inflation rate in Germany’s most populous state, North Rhine-
Westphalia, slowed to 1.8 percent in December from 2.4 percent a month
earlier, preliminary regional statistics office data showed on Friday.
In Bavaria, the second-most populous state, annual inflation was
measured at 2.2 percent after 2.7 percent in the previous month. In
Baden-Wuerttemberg, the third most populous state, annual inflation
slowed to 2.0 percent from 2.7 percent.
The state inflation readings, which are not harmonized to compare with
other euro zone countries, feed into nationwide data due at 1300 GMT.
A poll conducted before the release of the regional data suggested
Germany’s harmonized consumer price inflation (HICP) rate would slow to
1.9 percent from 2.2 percent in November.
In a precarious balancing act, the ECB earlier this month formally ended
its 2.6 trillion-euro bond-buying scheme but promised to keep feeding
stimulus for years into an economy struggling with an unexpected
slowdown and political turmoil.
The ECB’s goal is to keep inflation in the euro zone close to, but just below,
2 percent a year. The bank said on Thursday the global economy is set to
slow down in 2019 and stabilize thereafter, but it still expected prices to
rise.
The euro zone will publish preliminary inflation data for December on Jan.
4. The headline figure is expected to slow to 1.8 percent after 1.9 percent
in November.
<< Back to news headlines >>
Nissan to make fewer cars in China in months ahead as demand slows:
source Thursday 27th December, 2018 – Reuters
Nissan Motor Co (7201.T) will produce 30,000 fewer vehicles in the coming
months in China than what it had planned, a person briefed on the
matter told Reuters, as global automakers grapple with falling demand in
the world’s biggest car market.
After Ford Motor Co (F.N) and Hyundai Motor Co (005380.KS), Nissan
becomes the latest automaker to cut production in the country, where
slowing economic growth and a crippling trade war with the United States
have pummelled vehicle sales in the past few months.
Nissan plans to cut production in China by a total of 30,000 units during
the December-February period from its initial output plans, said the person
who declined to be identified as the plans are not public.
Automakers set initial plans on how many vehicles to produce at each of
their plants. These plans can be modified due to demand, supply chain
issues and other factors. It was not known how much Nissan had planned
to produce in the three months.
The automaker produced nearly 400,000 units in the country during the
three-month period ended February this year. The period covers the first
two months of the year, when sales usually slow in the run-up to the Lunar
New Year holidays.
Japan’s Nikkei business daily reported late on Thursday that Nissan plans
to cut production at three plants in China, including one in Dalian, where
it produces the popular Qashqai and Infiniti QX50 SUV crossover models,
and in Zhengzhou, where it makes the X-Trail SUV crossover, one of its top-
selling models, and Venucia brand models.
A Nissan spokeswoman in Beijing declined on Friday to comment on
future production plans.
China is Nissan’s second-largest market, accounting for roughly one-
quarter of its annual global vehicle sales. It sold 1.5 million vehicles in
China last year, and earlier this year said it planned to boost sales to 2.6
million units by 2022, making China its biggest market in terms of vehicle
sales.
But a stretch of booming demand for cars in China seems to have come
to an end, with the market on track to post a fall in annual sales for the
first time since at least 1990. Nissan’s group sales in China rose 3.9 percent
in the January-November period, slowing from a 12 percent jump a year
ago.
A slowdown in the major market comes at a time when the Japanese
automaker is grappling with a scandal involving alleged financial
misconduct of Carlos Ghosn, leading to his arrest and subsequent ouster
as chairman, and straining ties with French auto-making partner Renault
SA (RENA.PA).
<< Back to news headlines >>
China allows first-ever U.S. rice imports in 'goodwill gesture' ahead of trade
talks Friday 28th December, 2018 – Reuters
China has opened the door to imports of rice from the United States for
the first time ever in what analysts took to signal a warming of relations
between the world’s two biggest economies after a frosty year marked by
tensions and tit-for-tat tariffs.
The green light from Chinese customs, indicated in a statement posted on
the customs authority’s website on Friday, comes in the run-up to talks
between the countries in January after U.S. President Donald Trump and
Chinese President Xi Jinping agreed a moratorium on higher tariffs that
would affect trade worth hundreds of billions of dollars.
It wasn’t immediately clear how much rice China, which sources rice
imports from within Asia, might seek to buy from the United States. But the
move, which comes after years of talks on the matter, follows pledges
from China’s commerce ministry of further U.S. trade openings earlier this
week.
As of Dec. 27, imports of brown rice, polished rice and crushed rice from
the United States are now permitted, as long as cargoes meet China’s
inspection standards and are registered with the United States
Department of Agriculture.
“The permission for U.S. rice suggests an improving U.S. and China
relationship,” said Cherry Zhang, an agriculture analyst with consultancy
JCI. Zhang said she expected any imports would likely be ordered by
state-owned companies.
Officials at a government-affiliated think-tank in Beijing said the price of
U.S. rice is not competitive, compared with imports from South Asia, and
said the move to formally permit import should be interpreted as a
goodwill gesture.
China opened its rice market when it joined the World Trade Organization
in 2001, but a lack of phytosanitary protocol between China and the
United States effectively banned imports, according to trade group USA
Rice.
Nonetheless in July, China formally imposed additional tariffs of 25 percent
on U.S. rice, even though imports were not permitted at the time.
<< Back to news headlines >>
China says new financial information rules aimed at providers for
institutions Thursday 27th December, 2018 – Reuters
China’s internet regulator said on Friday the recently published rules
governing financial information providers are aimed at firms supplying
information to an institutional audience and to specific investors, rather
than the general public.
Financial information services are different from internet news and
information services, the Cyberspace Administration of China (CAC) said
in a statement on its website.
The CAC issued on Wednesday new regulations for domestic financial
information providers, in an apparent crackdown on online content
deemed detrimental to the country’s financial stability as the economy
slows.
Financial information providers are not allowed to distort Chinese fiscal
and monetary policies, disturb economic order or to harm the nation’s
interests, the CAC said then.
Service providers being targeted include those involved in financial
analysis, financial trading and financial decision-making, but do not
include foreign wire services.
The regulations are due to take effect on Feb. 1.
In recent years, domestic financial information service providers have
developed rapidly, and some of them are not stringent on content,
speculating on financial market risks, publishing sensitive market
information and distorting financial regulatory policies, the CAC said on
Friday.
Financial information services mainly refer to the provision of information
and statistics, rather than financial services like deposit and loan services,
securities transactions, insurance purchases, fund deals, bond
transactions, and foreign exchange trading, the CAC said.
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Japan's Nikkei ends down, books first annual loss since 2011 Friday 28th December, 2018 – Reuters
Japan’s Nikkei fell on its final trading day of the year on Friday as energy-
related shares sagged, leading the index to its first annual loss in seven
years.
The Nikkei share average ended the session 0.31 percent down at
20,014.77.
The benchmark index booked a 12.1 percent decline in 2018, its first
annual loss since 2011 and breaking the longest winning streak since the
late 1980s.
The broader Topix lost 0.50 percent to 1,494.09, and recorded a 17.8
percent decline over the year, its biggest annual loss since 2011.
Wall Street’s three main indices staged a strong comeback on Thursday,
surging from significant losses to end the session overnight in positive
territory.
“U.S. equities were very volatile yesterday. It was a relief they ended
positively after all, but because of the volatility it’s hard to take risk on the
Tokyo market,” said Eiji Kinouchi, chief technical analyst at Daiwa
Securities.
Japanese investors remained cautious throughout the session on Friday.
Kinouchi said they braced for possible further volatility in U.S. markets and
preferred to stay on the sidelines ahead of the start of Japan’s long new
year holiday.
“Next week, Tokyo will only be open on Friday while New York will only
close for New Year’s Day,” he said.
Energy-related shares weighed on the broader market on Friday after oil
prices fell steeply overnight on worries about oversupply and an
increasingly muddled outlook for global growth.
Oil refiner Idemitsu Kosan shed 1.4 percent and Showa Shell Sekiyu KK lost
0.9 percent.
Petroleum products major Inpex Corp recovered from a more than 1
percent decline by midday to finish 0.1 percent higher.
Shares of many index heavyweights dipped, with Toyota down 0.1
percent, Sony Corp falling 1.1 percent, and Nintendo losing 0.1 percent.
Uniqlo-operator Fast Retailing was off 0.4 percent while factory
automation equipment maker Keyence shed 1.4 percent.
SoftBank Group, which was down 1.1 percent at midday, recovered from
earlier losses to finish the session with a 0.3 percent gain.
Twelve out of the Tokyo Stock Exchange’s 33 sub-sectors were in positive
territory, led by non-ferrous metals and iron and steel.
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Modi considers three options to aid Indian farmers hit by low crop prices:
sources Friday 28th December, 2018 – Reuters
India’s Prime Minister Narendra Modi is considering three options for a
relief package to help farmers suffering because of low crop prices at a
cost of as much as 3 trillion rupees ($42.82 billion), according to three
government sources.
The possibilities are a direct payment to all landowning farmers,
compensation for those who sold produce below government prices, and
a loan forgiveness program.
Modi is desperate to claw back support among India’s 263 million farmers
and their many millions of dependents after his Hindu nationalist Bharatiya
Janata Party (BJP) lost power earlier this month to the opposition Congress
in three big heartland states. A general election has to be held by May.
The government is keen to find a way to get money to farmers as quickly
and simply as possible so that they can feel the benefits before the
election. That could come at a major cost to its budget, which is already
strained because of lower-than-expected tax revenues, and is likely to
undermine its fiscal deficit target for the year ending in March.
The BJP won much of the rural vote at the last election in 2014 but there
has been increasing anger with the government in the countryside
because Modi has tried to get the market to play a bigger role in setting
prices and sought to reduce government intervention. Healthy crop
production in the past two years and lower than expected exports have
combined to drive prices down at a time when some farm costs have
been surging.
The quickest option, and currently the most favoured inside the
government, is to directly pay landowning farmers 1,700-2,000 rupees per
acre, said two of the sources, including one at the farm ministry. They
spoke on condition they not be identified.
The finance ministry estimates such a scheme, which means farmers
would get the money before next sowing season, could cost up to 1 trillion
rupees.
The second option would be to compensate farmers for the difference
they received by selling their produce in the market compared with the
government price that is set for grains and some other products, one of
the finance ministry officials said. That would be cheaper, costing about
500 billion rupees, the official added.
That option has some major drawbacks, though, as government support
schemes have lost credibility because they don’t cover all farm produce
and claiming from the government has often proven difficult. Middlemen
have also taken advantage of such schemes by persuading the farmer to
give them part of any subsidy or compensation.
The most expensive option - at a cost of as much as 3 trillion rupees - and
the least favoured inside the government, would involve writing off farm
loans by up to 100,000 rupees per person. That is a policy that is being
pushed hard by the opposition Congress party.
MODI IN SERIES OF DISCUSSIONS
“Broadly speaking, the government is considering three options – writing
off some farm loans, introducing a price differential plan and direct
transfer of cash to farmers,” said a source at the farm ministry.
All three sources, said that the government has not yet discussed the ways
in which it plans to fund any of the schemes.
In the last week Modi had a series of meetings with Finance Minister Arun
Jaitley, Agriculture Ministry Radha Mohan Singh and officials from its top
think tank Niti Aayog to weigh its options for a farm relief program.
BJP President Amit Shah also met Agriculture Minister Singh last night to
discuss the proposals, according to a senior cabinet minister, who did not
want to be named.
The government is also planning to buttress any package by revising the
existing crop insurance policy to facilitate easier settlement of claims and
also give greater non-collateralized credit assess to farmers, the minister
said.
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Modi's clampdown on e-commerce in India may not win back votes of
small retailers Friday 28th December, 2018 – Reuters
India’s new curbs on e-commerce companies may not be enough to win
over small store owners and traders in next year’s general election, with
the key voting bloc still seething over what it sees as broken promises by
Prime Minister Narendra Modi.
From Feb. 1, e-commerce firms such as Amazon.com and Walmart-
owned Flipkart Group will not be able to sell products from companies in
which they have an equity interest or form exclusive agreements with
sellers.
Intended to prevent predatory pricing and deep discounting, the curbs
follow intense lobbying by India’s many millions of small shopkeepers and
the middlemen who serve them, particularly after Walmart this year spent
$16 billion to acquire Flipkart.
The sector, which includes an estimated 25 million small store owners,
largely supported Modi in the 2014 general election. While seeing the new
rules as a step in the right direction, many small businesses feel too much
damage has been done after Modi went back on promises that he would
not allow the entry of foreign companies into the domestic retail sector.
“We clapped and voted for Modi believing in his promises. But what have
we got is just a slap on our face,” said Pankaj Revri, president of a furniture
market association in central Delhi.
The curbs, announced on Wednesday, surprised foreign e-commerce
firms as little had been done by the government despite over three years
of lobbying by domestic retailers.
Modi’s Hindu nationalist Bharatiya Janata Party is widely viewed as
panicking after losing five state elections this month. The government,
which must hold a general election by May, is also expected to come up
with new support programs for farmers as their opposition grows due to
low crop prices.
An opinion poll by TV channel ABP News this week predicted Modi’s party
could fall short of a majority if the opposition forms an effective alliance in
the national election.
EARNINGS HALVED
B.C. Bhartia, president of the Confederation of All India Traders, said some
small businesses had seen earnings more than halve in the last few years
as they struggle to compete with low prices offered by the American-
controlled behemoths.
“The last-minute policy change is too little and too late,” he said.
In particular, retailers and traders believe Modi turned a blind eye to what
they say was the use of policy loopholes by major e-commerce
companies to offer heavy discounts that allowed them to seize market
share for goods such as electronic items.
Asked about those accusations, Amazon India said in a statement that it
had always operated “in compliance with the laws of the land” and that
had more than 400,000 small and medium businesses on its marketplace.
Flipkart declined to comment on the specific allegations.
Small Indian businesses have also been bruised by other Modi policies,
including a sudden ban on the use of high-value currency notes in late
2016 and the launch of a national sales tax in 2017, both of which raised
compliance costs.
Bhartia said if the government was serious about the concerns of small
traders, it should prosecute violators of trade rules and appoint an
independent regulator to curb malpractice.
A government official told reporters on Thursday the administration could
consider demands for a regulator in its new e-commerce policy,
expected to be released in the coming months.
A September report by PricewaterhouseCoopers estimated online
commerce in India would grow 25 percent a year for next five years,
hitting $100 billion a year by 2022.
The new curbs could harm those growth prospects and discourage some
foreign investors, said investment consultants.
“Sentiment is definitely hurt,” said Harminder Sahni of retail consultant
Wazir Advisors, adding that the policy suggested online retail business
should only be done by Indians.
Amazon said in its statement it was evaluating the new guidelines to
engage as necessary with the government so it could remain true to its
vision of “transforming how India buys and sells and generating significant
direct and indirect employment.”
Flipkart said the advent of e-commerce had created hundreds of
thousands of jobs and “the industry was set to be a major growth driver for
the Indian economy and create millions of jobs in the future.”
“It is important that a broad market-driven framework through the right
consultative process be put in place in order to drive the industry
forward,” it added.
The government boasts of attracting nearly $223 billion foreign investment
in the last four years, compared with about $152 billion in the previous four
years.
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