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▪ Eastern Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB- ▪ Trinidad and Tobago Unit Trust Corporation’s initial rating assigned at CariAA ▪ Massy Holdings Ltd. rating reaffirmed at CariAA+ ▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA ▪ National Flour Mills Limited’s rating reaffirmed at CariA- ▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO) ▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB- ▪ Government of Barbados’s local currency rating upgraded to CariBB ▪ PanJam Investment Limited’s initial rating assigned at CariBBB+ ▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+ ▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+ ▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+
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REGIONAL
Trinidad and Tobago
T&TEC raises fees for temp connections - In the Senate Trinidad and Tobago Electricity Commission (T& TEC) has increased its fees for temporary connections for residential properties.
JMMB in front Overall stock market activity yesterday resulted from trading in 13 securities of which four advanced, five declined and four traded firm.
IMF: T&T growth flat for 2019 Three days after the World Bank said the Trinidad and Tobago economy will contract further in 2019, the International Monetary Fund (IMF) also slashed its projections for this country's economic fortunes this year.
World Bank: T&T economy will shrink this year Nothing that T& T has the largest fiscal deficit in Central America and the Caribbean, a group of World Bank economists are forecasting the T& T economy will contract this year by -0.5 per cent. T& T is one of only four countries that the World Bank estimates this year will have weaker economies by the end of 2019.
Barbados
NSC takes over Gymnasium Sporting fans need not fear. The operations of this country’s biggest multi- sports complex are continuing even with the dissolution of the Gymnasium Limited.
Austerity ‘pays’ Officials of the International Monetary Fund (IMF) are banking on a return to growth for the Barbados economy as a result of Government’s austerity measures.
June deadline Barbados has until June to meet 40 standards set out by the Financial Action Task Force (FATF), aimed at combatting money laundering and the funding of terrorism.
Barbados continued
New steps to register charities Setting up a charity in Barbados will not be as ‘simple’ as it has been for the past 40 years.
Jamaica
BOJ sells US$20 million to forex market The Bank of Jamaica (BOJ) is reporting that it intervened in the foreign exchange market yesterday by selling US$20 million to help ease the depreciation of the local currency.
Global Canna Labs closes first medical cannabis sale in Jamaica Canadian company, Global Canna Labs (GCL) has received approval from the Jamaican Cannabis Licensing Authority (CLA) to commence commercial medical cannabis sales domestically to licensed dispensaries.
Holness: Last-quarter growth was two per cent THE Jamaican economy grew a year-on-year two per cent in the fourth quarter of 2018, Prime Minister Andrew Holness has confirmed.
Flow goes bold on mobile plans Telecoms giant Flow yesterday announced an overhaul of its customer mobile plans to provide unlimited calling on any network and increased connectivity.
Both business and consumer confidence hit new peaks BUSINESS and consumer confidence in Jamaica continued on its upward trajectory to hit index points of 151.3 and 177.5 for the first quarter of 2019.
Wigton IPO aims to raise $5.5 billion WIGTON Windfarm, the wholly owned subsidiary of Petroleum Corporation of Jamaica (PCJ), hopes to raise roughly $5.5 billion from its initial public offering which is set to open on April 17.
CAC2000 losses grow more than tenfold due to roadwork The industrial air-conditioning supplier CAC2000 Limited reported that its sales dropped by one-third and its losses grew more than tenfold in the January quarter 2019 compared with the previous year, arising from roadwork disruptions adjacent to its head office on Marcus Garvey Drive in Kingston.
Jamaica continued
Everything Fresh hunts market share and growth Junior market-listed company Everything Fresh experienced a steep decline in year-end profits, but Chairman Gregory Pullen says he is not fazed since he expects revenue growth and other real benefits to flow from an aggressive expansion.
Guyana
Govt. will have to engage with ExxonMobil, private sector to renegotiate oil deal- US ambassador The US government will play no role in any possible renegotiation of the oil deal with ExxonMobil.
The Bahamas
Storms Cost Bahamas $828m in 2015-2017 The Bahamas suffered $828m in damage, losses and costs between 2015 and 2017 as a result of being struck by major hurricanes, the Prime Minister revealed yesterday.
DPM: ‘We’re as Competitive as Anyone’ On Financial Services The Bahamas “is as competitive as anyone else” in financial services, the deputy prime minister asserted yesterday, despite its latest fall in an annual survey of global financial hubs.
The Dominican Republic
US$103M wind farm in NW to save 250K barrels of oil yearly President Danilo Medina on Tues. inaugurated the first phase of the Agua Clara wind farm, whose annual electricity production will save the country around 250,000 barrels of oil per year.
IMF walks back Dominican Republic growth from 5.5% to 5.1% The International Monetary Fund (IMF) estimates that the Dominican Republic will grow 5.1% this year and that consumer prices will climb 1.4% by yearend 2019, according to its latest report from the World Economic Outlook presented on Tuesday.
Anguilla
Minister Looks at Improving Health Services in Anguilla Tax Off Drugs and National Health Insurance Coming Anguilla’s Minister of Health, Mr. Evans Rogers, told listeners at the Government’s public meeting on March 30 that his Ministry and the Health Authority are working diligently to provide improved services for the people of the island.
British Virgin Islands
Big benefits as HLSCC inks MoU with UVI -VI students can now access reduced tuition, more learning resources Paraquita Bay, Tortola, VI - Persons seeking to further their education at the University of the Virgin Islands (UVI), can now secure an almost $6,000 reduction in tuition fees from the USVI university as part of a Memorandum of Understanding signed between the UVI and the H. Lavity Stoutt Community College (HLSCC).
Other Regional
Forecasters predict below normal 2019 hurricane season With the start of the Atlantic Hurricane season in June not too far away, forecasters are predicting a below average season.
The region’s border is its major threat, says RSS executive director The region’s porous border is the biggest threat facing member states of the Regional Security System (RSS), says executive director, Captain Errington Shurland.
Ecommerce in the Caribbean: A future dream or near reality? The Caribbean is known for beautiful beaches, low taxes and for its laid- back lifestyle. But now it aims to gain a new perception: A great location to start an eCommerce.
INTERNATIONAL
United States
U.S. firm's plan for Australia-China internet cable leaves Huawei trailing U.S. submarine cable company SubCom said on Thursday it would lay an internet link from Australia to Hong Kong through Papua New Guinea, deepening its involvement in a region where China’s Huawei Technologies Co Ltd has sought to expand.
Uber plans to sell around $10 billion worth of stock in IPO Uber Technologies Inc has decided it will seek to sell around $10 billion worth of stock in its initial public offering, and will make public the registration of the offering on Thursday, people familiar with the matter said on Tuesday.
U.S. bank CEOs face off with Congress for the first time since financial crisis Chief executives of some of the largest U.S. banks will testify before Congress on Wednesday, giving lawmakers their first opportunity to grill the lenders since the 2007-2009 financial crisis.
United Kingdom
UK economy grows as pre-Brexit stockpiling lifts factories Britain’s Brexit-bound economy unexpectedly grew in February, helped by manufacturers rushing to meet orders from clients who are stockpiling goods ahead of the country’s break from the European Union, official data showed.
UK PM May says view on second Brexit referendum has not changed British Prime Minister Theresa May said on Wednesday her opposition to holding a second Brexit referendum had not changed, but she expected some lawmakers may try to push for one during the process of ratifying her EU exit deal.
Merkel ready to grant UK reasonable amount of time to resolve Brexit Britain should be given a reasonable amount of time to work out its exit from the European Union, though the delay to Brexit could be longer than British Prime Minister Theresa May has requested, German Chancellor Angela Merkel said on Wednesday.
Europe
EU to grant May a Brexit delay, with conditions The European Union will grant Prime Minister Theresa May a second delay to Brexit at an emergency summit on Wednesday but leaders will debate a longer extension with conditions to prevent any future British leader jeopardizing the bloc.
Norway's crown at five-month highs vs euro on strong outlook; euro steady The Norwegian crown held at its highest level against the euro in five months on Wednesday after stronger-than-expected inflation data raised expectations of another interest rate hike from the central bank in the coming months.
EU is not afraid of no-deal Brexit The European Union is ready and not afraid of a no-deal Brexit, a spokesman for the EU executive said on Wednesday, ahead of a summit of EU leaders devoted to deciding on Britain’s exit from the bloc.
Credit Agricole investment bank needs to cut costs, deputy CEO says Credit Agricole needs to reduce costs at its investment bank but will stop short of restructuring, a senior official said as the industry faces slowing revenue.
European stocks cautiously higher before Brexit summit, ECB meeting European shares edged higher on Wednesday ahead of a Brexit summit and a policy meeting of the European Central Bank, with Spanish shares rising for the first time in three days.
Swedish spring budget outlines spending on climate change, jobs Sweden’s spring mini-budget on Wednesday contained reforms totalling 4.5 billion crowns ($486 million) and highlighted the centre-left coalition government’s focus on climate change.
China
China's giant money market fund relaxes investment restrictions The world’s biggest money market mutual fund, overseen by the Chinese billionaire Jack Ma’s Ant Financial Group, has relaxed some restrictions on individual investments to stanch a rise in redemptions.
China continued
March mobile phone shipments to China fall 6 percent as economy slows Shipments of mobile phones to China fell 6 percent in March compared with the same year-earlier month, official figures showed on Wednesday, as slowing economic growth took a toll on the sector.
Japan
Bank of Japan's Kuroda vows to continue 'powerful' easing Bank of Japan Governor Haruhiko Kuroda vowed on Wednesday to continue the central bank’s “powerful” monetary easing to achieve its 2 percent inflation target, while urging the government to win market confidence in its fiscal management.
Nissan brand Infiniti aims to launch first electric car in three years, made in China The first electric car for Nissan Motor Co’s premium brand Infiniti will be a sporty sedan produced in China, the Japanese carmaker said in a statement viewed by Reuters ahead of a public announcement expected as soon as Wednesday.
India
India Inc's earnings lag in Modi era, but optimism remains Prime Minister Narendra Modi’s moves to cut red tape and streamline the tax system have won him plaudits, but data shows that the Modi government’s pro-business agenda has failed to translate into earnings growth for most Indian corporations.
India's Modi may face some civil service departures from his office if re- elected The Indian government may have to make a series of major changes at the top of the nation’s civil service if Prime Minister Narendra Modi is re- elected to a second term in May, according to multiple sources in the administration.
India's Modi rides nationalist fervour ahead of election starting on Thursday India’s prime minister is rallying his nationalist base as the world’s biggest democracy begins a general election on Thursday, but it has become tighter than anticipated, thanks to dwindling incomes for farmers and scarce jobs.
Global
Oil up on tight supply, but economic slowdown weighs Oil prices rose on Wednesday back toward five-month highs hit the previous day as OPEC production cuts and U.S. sanctions on Iran and Venezuela continued to tighten supply, though economic worries increased.
Aramco's new bonds inch up in early trade Saudi Aramco’s newly issued dollar-denominated bonds inched up on Wednesday, with longer-dated paper outperforming, sources familiar with the matter said.
EU to grant May a Brexit delay, with conditions Wednesday 10th April, 2019 – Reuters
The European Union will grant Prime Minister Theresa May a second delay to Brexit at an emergency summit on Wednesday but leaders will debate a longer extension with conditions to prevent any future British leader jeopardizing the bloc.
In what was cast in London as a national humiliation, May dashed to Berlin and Paris on the eve of the summit to ask Angela Merkel and Emmanuel Macron to allow her to postpone a divorce that was supposed to have been Britain’s ‘liberation’
May had requested the EU defer Friday’s exit until June 30 but in Brussels a “flextension” until the end of the year or until March 2020 was being discussed, EU diplomats said.
Such an option would allow Britain to leave earlier if the Brexit deadlock in London could be broken, though the EU will try to stitch in conditions that prevent any successor to May from making mischief as Britain heads to the exit.
France opposes an automatic long extension at this stage and if London wants one, Macron could demand May sign up to a legally binding undertaking not to cause trouble by vetoing EU decisions.
A draft of the summit conclusions seen by Reuters said Britain would be granted another delay on certain conditions. It left the end-date blank.
“The United Kingdom shall facilitate the achievement of the Union’s tasks and refrain from any measure which could jeopardize the attainment of the Union’s objectives,” the draft read.
A long delay to Brexit would put the entire divorce in doubt by opening up the space for a second referendum and election, while harsh conditions would likely lead to a swifter end to May’s premiership.
European leaders fear a no-deal exit on Friday at 2200 GMT would spook financial markets, hurt the EU 27’s $16 trillion economy and undermine global trade.
“In my view, a short extension would not bring much,” said Detlef Seif, deputy EU spokesman for Merkel’s parliamentary group. “There is no appetite to return to a new European Council every six weeks to decide whether to renew the extension.”
MAY ALONE
EU leaders are exasperated with May’s handling of a tortuous and potentially expensive divorce that many in Brussels feel is a distraction from ensuring the bloc can hold its own beside the United States and China.
“People are tired and fed up (with Britain’s indecision), but what to do?” one EU diplomat said. “We won’t be the ones pushing the UK off the cliff edge.”
French officials have said if Britain draws out its divorce it should not take part in EU budget talks or in choosing the next president of the EU’s executive commission.
Nearly two weeks after Britain was supposed to leave the EU, the weakest British prime minister in a generation said she feared Brexit might never happen as she battles to get a divorce deal ratified by a divided parliament.
After her pledge to resign failed to get her deal over the line, she launched crisis talks with the opposition Labour Party in the hope of breaking the domestic deadlock.
But when she arrives in Brussels, May is unlikely to be able to trumpet any breakthrough with Labour. After Tuesday’s round of talks, Labour said it had not yet seen a clear shift in May’s stance.
May will have to explain her Brexit strategy before the EU’s 27 leaders on Wednesday before leaving while they discuss her request over dinner. While they dine, she will wait for their decision in the British delegation’s quarters.
The British leader is then briefed on the EU’s decision by summit chairman Donald Tusk. The last time, May spoke for over an hour and took questions while the leaders discussed for about 5 hours.
The Northern Irish party which props up her minority government said May was embarrassing the United Kingdom.
“Nearly three years after the referendum the UK is today effectively holding out a begging bowl to European leaders,” Democratic Unionist Party deputy leader Nigel Dodds said.
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Norway's crown at five-month highs vs euro on strong outlook; euro steady Wednesday 10th April, 2019 – Reuters
The Norwegian crown held at its highest level against the euro in five months on Wednesday after stronger-than-expected inflation data raised expectations of another interest rate hike from the central bank in the coming months.
Norway’s core CPI for March came in at 2.7 percent compared with market expectations of 2.5 percent, supporting the view that near-term inflation is holding up in an economy that is also benefiting from higher commodity prices.
The crown, which is already one of the best performers against the dollar and the euro so far this year, gained by nearly half a percent against the euro and the dollar.
Versus the euro, the crown gained to 9.5850 crowns per euro, its highest level since mid-November 2018. Despite the gains, it broadly remains one of the most undervalued currencies in the G10 FX space.
“The positive economic development as well as price pressure is making rate hikes necessary,” Commerzbank strategists said.
The optimism around the crown was in contrast to the general sense of caution over the euro before the outcome of a European Central Bank meeting later in the day.
“Norway holds up impressively well despite a very visible slowdown in surrounding countries and the inflation figure today is another strong confirmation of that,” said Andreas Steno Larsen, an FX strategist at Nordea Bank.
The ECB is all but certain to keep policy on hold, taking its time to evaluate whether its most recent stimulus is enough to arrest a rapid decline in sentiment.
The single currency was also hemmed in a tight range thanks to a bunch of currency options struck between 1.12 to 1.15 levels by traders in the eventuality of Britain crashing out of the European Union without a deal.
That hedging in the currency markets was also evident in the sterling derivative markets, with deep out of the money puts, a form of insurance protection to protect against the likelihood of sterling crashing sharply, seeing some demand.
Elsewhere, broader sentiment in the market remained subdued as the flare-up between the United States and Europe added to other potential global flashpoints over trade, including Sino-U.S. negotiations.
Against a basket of key rival currencies, the dollar was broadly flat at 96.95.
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EU is not afraid of no-deal Brexit Wednesday 10th April, 2019 – Reuters
The European Union is ready and not afraid of a no-deal Brexit, a spokesman for the EU executive said on Wednesday, ahead of a summit of EU leaders devoted to deciding on Britain’s exit from the bloc.
“While a no deal withdrawal will cause disruption and is not desirable, the EU is fully prepared for it,” European Commission spokesman Margaritis Schinas told a daily briefing.
“This is not our desired outcome but we are not afraid of it. We are prepared.”
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Credit Agricole investment bank needs to cut costs, deputy CEO says Wednesday 10th April, 2019 – Reuters
Credit Agricole needs to reduce costs at its investment bank but will stop short of restructuring, a senior official said as the industry faces slowing revenue.
Xavier Musca, deputy chief executive officer of the French lender, told journalists that there were too many investment banks not sufficiently focused on their business.
But Credit Agricole already restructured in 2011 and 2012 to downsize the investment bank to refocus, he said.
“We will not announce a restructuring,” Musca said. “We will need to reduce costs, but it will not be a restructuring as announced by others.”
Societe Generale plans to cut 1,600 jobs, mainly at its corporate and investment banking arm, in an attempt to boost profits after a poor performance last year, France’s third-largest bank said on Tuesday.
And Mitsubishi UFJ Financial Group is considering scaling back its bond and equity sales and trading operations in London and New York as part of a broader restructuring of its global markets division, two sources said on Tuesday.
Musca said the bank would announce a medium-term strategic plan on June 6 but that radical change was not in store.
“We have a good business model, and we will not change it,” he told a club of business journalists in Frankfurt on Tuesday evening. The comments were embargoed for Wednesday.
Musca is also chairman of the board of directors at Amundi, the asset manager mostly owned by Credit Agricole.
Musca said that Amundi was open to acquisitions, though focused on organic growth.
“We consider Amundi as a natural consolidator in Europe, in particular in the euro zone,” he said. “We have capabilities to buy a lot of things, because we are a strong bank and have capacity to invest.”
Speculation has been mounting over recent weeks that DWS, the asset manager mostly owned by Deutsche Bank, could go on sale to finance a merger with Commerzbank.
Deutsche Bank and DWS declined to comment.
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European stocks cautiously higher before Brexit summit, ECB meeting Wednesday 10th April, 2019 – Reuters
European shares edged higher on Wednesday ahead of a Brexit summit and a policy meeting of the European Central Bank, with Spanish shares rising for the first time in three days.
The regional STOXX 600 index was up 0.2 percent at 0929 GMT after flitting between slight gains and losses, led by advances in Madrid and Frankfurt.
The ECB is widely expected to keep borrowing costs on hold, but investors will be keen to see if the region’s central bank provides more details on its plans to issue a new round of cheap multi-year loans to banks to support economic growth.
The rate decision is due out at 1145 GMT.
“The economic data out of the Eurozone shows that the growth has become feeble and there is a strong need for more support from the ECB,” said Naeem Aslam, chief market analyst at TF Global Markets (UK) Ltd in London.
Investors are also waiting for U.S. inflation data and minutes of the Federal Reserve’s March policy meeting due later in the day.
Buoying sentiment was the latest data showing Britain’s economy unexpectedly grew in February, which follows the International Monetary Fund cutting its 2019 global economic growth forecasts for third time in seven months on Tuesday.
European basic resources stocks led gains on STOXX 600 while retail sector was another notable gainer, rising after four sessions of losses.
Tesco boosted the pan-region index after the company posted a better- than-expected full-year operating profit, cementing the recovery of Britain’s biggest supermarket.
Dunelm Group Plc rose more than 2 percent as the homeware retailer said it expected to top analysts’ forecasts for full-year profit, as surging online demand helped it ride out a tough British retail environment.
Shares of ASOS surged 14 percent after the British online fashion retailer stuck to its full-year guidance for sales, profit margins and capital expenditure despite a plunge in first-half pre-tax profit.
At the other end of the index, British engine maker Rolls-Royce dipped after agreeing to inspections on some Trent 1000 TEN engines earlier than previously planned, after the re-emergence of issues related to blade deterioration.
Shares in Indivior Plc plunged by about 75 percent after the U.S. Justice Department announced the indictment of the British drugmaker and a subsidiary on charges that they engaged in an illegal scheme to boost prescriptions of the film version of its opioid addiction treatment Suboxone.
Some ex-dividend stocks, including Swedish Match, Sampo, Nokian Tyres, were among the biggest weights on the index.
Britain’s FTSE was little changed ahead of a summit between British Prime Minister Theresa and the European Union where a Brexit extension until the end of the year or until March 2020 was looking like the most likely outcome, EU diplomats said.
Reckitt Benckiser slid more than 6 percent as the U.S. Department of Justice alleged that the illegal marketing scheme began before Indivior was spun out of the consumer goods group.
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Swedish spring budget outlines spending on climate change, jobs Wednesday 10th April, 2019 – Reuters
Sweden’s spring mini-budget on Wednesday contained reforms totalling 4.5 billion crowns ($486 million) and highlighted the centre-left coalition government’s focus on climate change.
The spring budget is mainly an adjustment to the main budget in the autumn. In 2018, the opposition forced its budget through a hung parliament, a measure which included 20 billion Swedish crowns ($2.16 billion) in tax cuts and left Social Democrat Finance Minister Magdalena Andersson little room for new spending.
While debt is at its lowest since the late 1970s, the government has prioritized strong finances and Andersson said new spending would be offset by cuts in other areas.
“The economic situation in Sweden has improved in recent years and growth has been high,” Andersson said in a statement.
“However, in recent times there have been several indicators to suggest that economic development has dropped somewhat, which indicates that growth will slow in 2019.”
Measures in the budget included 2.0 billion crowns in measures to fight climate change, 1.1 billion to cut employers labour taxes and 900 million for teaching assistants in schools.
The measures were all well flagged by the government of the Social Democrats and Greens.
The budget was the first chance for the minority coalition to put its stamp on fiscal policy since taking power in January.
However, Andersson’s hands are tied by an agreement with two centre- right parties who back the government. Under the cross-party deal, the government has said it will cut income taxes for top earners from the start of next year, increase climate taxes and take steps to deregulate the labour market.
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UK economy grows as pre-Brexit stockpiling lifts factories Wednesday 10th April, 2019 – Reuters
Britain’s Brexit-bound economy unexpectedly grew in February, helped by manufacturers rushing to meet orders from clients who are stockpiling goods ahead of the country’s break from the European Union, official data showed.
While still sluggish, the economy expanded by 0.2 percent from January, the Office for National Statistics said on Wednesday.
Economists in a Reuters poll had expected zero growth.
Britain’s economy has held up better than expected since the 2016 Brexit referendum although it has slowed since mid-2018 as the political impasse over the country’s departure from the EU deepened and as the world economy lost momentum.
The International Monetary Fund said on Tuesday that Britain would grow by 1.2 percent in 2019, if it can avoid the shock of a no-deal Brexit. That would be faster than Germany’s 0.8 percent and only a touch slower than France’s 1.3 percent.
But Britain still looks set for its weakest growth in a decade this year, even assuming a Brexit deal will be done, according to forecasts from the IMF and the Bank of England.
Prime Minister Theresa May will ask EU leaders for a new delay to Brexit on Wednesday, just two days before Britain is due to leave the bloc without the cushion of a transition deal.
Wednesday’s data showed that over the three months to February, gross domestic product grew by 0.3 percent, holding at the same pace as in January — which was revised up slightly from a previous estimate — and stronger than a forecast of 0.2 percent in the Reuters poll.
In annual terms, growth in February hit 2.0 percent, the strongest pace since late 2017.
Sterling briefly hit the day’s high, rising 0.2 percent to $1.3086 before falling back.
Samuel Tombs, an economist with Pantheon Macroeconomics, said the resilience of the data — combined with wages that are growing at their fastest pace in a decade — would put renewed pressure on the BoE to raise interest rates this year.
“We continue to think that the 20 percent chance that investors are attaching to a rate hike this year is far too low and still expect the (BoE) to raise Bank Rate once before the end of this year,” Tombs said in a note to clients.
BREXIT BOOST FOR FACTORIES, FOR NOW
The ONS said it saw signs that clients of manufacturers were stockpiling goods to get ahead of any border delays after Brexit, which was originally scheduled for March 29.
Manufacturing output jumped by 0.9 percent in February from January, accounting for about half of the overall economic growth rate.
Economists have warned that a rise in orders before Brexit could lead to a pay-back of less demand later.
The ONS said it could not quantify the impact of stockpiling on the data.
Britain’s dominant services sector grew by 0.1 percent in monthly terms in February, held back by the 12th fall in a row in the financial services sector — the longest such run on record — while construction rose by 0.4 percent.
There were signs that the slowdown in the global economy was also weighing on Britain’s economy.
Export volumes fell by 0.4 percent in the three months to February from the three months to November while imports jumped by 6.8 percent.
So far, Britain’s exporters have shown no sign of being helped by the fall in the value of the pound following the 2016 Brexit referendum.
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UK PM May says view on second Brexit referendum has not changed Wednesday 10th April, 2019 – Reuters
British Prime Minister Theresa May said on Wednesday her opposition to holding a second Brexit referendum had not changed, but she expected some lawmakers may try to push for one during the process of ratifying her EU exit deal.
The Daily Telegraph reported earlier this week that May was considering offering lawmakers a vote on whether to hold a confirmatory public vote on her Brexit deal in a bid to break the deadlock in talks with the opposition Labour Party.
Asked by a lawmaker whether this had been offered during talks with Labour, May said: “My position on a second referendum, the government’s position, has not changed.”
“When we come to a deal, we will have to ensure that legislation goes through this House. Of course it may be that there are those in this House that wish to press that issue as the legislation goes through.”
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Merkel ready to grant UK reasonable amount of time to resolve Brexit Wednesday 10th April, 2019 – Reuters
Britain should be given a reasonable amount of time to work out its exit from the European Union, though the delay to Brexit could be longer than British Prime Minister Theresa May has requested, German Chancellor Angela Merkel said on Wednesday.
“I am, and the government is, of the view that we should give the two parties a reasonable amount of time,” Merkel said of Britain’s ruling conservatives and opposition Labour Party, who are in talks to find a Brexit deal.
“It could well be that it is a longer extension than has been requested by the British prime minister,” Merkel told Germany’s Bundestag lower house of parliament. May has asked EU leaders to postpone Britain’s exit until June 30.
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Oil up on tight supply, but economic slowdown weighs Wednesday 10th April, 2019 – Reuters
Oil prices rose on Wednesday back toward five-month highs hit the previous day as OPEC production cuts and U.S. sanctions on Iran and Venezuela continued to tighten supply, though economic worries increased.
International benchmark Brent futures were up 36 cents, or 0.5 percent, at $70.97 a barrel by 1050 GMT. U.S. West Texas Intermediate (WTI) crude oil futures were up 45 cents, or 0.7 percent, at $64.43.
Oil markets have tightened this year because of U.S. sanctions on oil exporters Iran and Venezuela, as well as supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russia, a group known as OPEC+.
Brent and WTI crude oil futures have risen by about 30 percent and 40 percent respectively since the start of the year.
“The global oil market is clearly moving back toward balance thanks to OPEC+ production cuts,” ING bank said.
OPEC is expected to release its monthly oil market report at 1110 GMT.
The Dutch bank said the reduction was not only down to voluntary supply cuts, which the group started this year to prop up prices, but also involuntary curbs from Venezuela and Iran - which are exempt from the OPEC cut pact - because of U.S. sanctions.
“Declines from these two exempt countries account for almost 47 percent of the reduction seen from OPEC,” ING added.
But Russia’s role in the pact came into focus after a senior Russian official signalled that Moscow might seek to raise output, though President Vladimir Putin indicated on Tuesday that current prices suited Russia.
“The Russian camp is increasingly coy about extending supply cuts. Suffice to say this may throw a spanner in the works for a sustained price recovery,” said PVM analyst Stephen Brennock.
Not all regions are in tight supply, however.
U.S. crude stocks rose by 4.1 million barrels to 455.8 million barrels in the week to April 5, data from industry group the American Petroleum Institute showed on Tuesday, though gasoline and distillate inventories fell more than expected.
But in its third downgrade on global growth since October, the IMF warned on Tuesday that the global economy was slowing more than expected and a sharp downturn may be looming.
Slower growth would undermine fuel demand and could put a cap on prices.
The IMF said the global economy is likely to grow by 3.3 percent this year, the slowest since 2016. The forecast cut 0.2 percentage points from the IMF’s outlook in January.
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Aramco's new bonds inch up in early trade Wednesday 10th April, 2019 – Reuters
Saudi Aramco’s newly issued dollar-denominated bonds inched up on Wednesday, with longer-dated paper outperforming, sources familiar with the matter said.
The company on Tuesday issued $12 billion worth of paper, disappointing much of the over $100 billion in demand.
Of the five tranches, the $3 billion 30-year bonds were the best performers, up by slightly over 1 cent, the sources said, while shorter-dated paper made more modest gains.
The sources said there would be a clearer picture of the bonds’ performance once markets in London and New York open later on Wednesday.
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India Inc's earnings lag in Modi era, but optimism remains Wednesday 10th April, 2019 – Reuters
Prime Minister Narendra Modi’s moves to cut red tape and streamline the tax system have won him plaudits, but data shows that the Modi government’s pro-business agenda has failed to translate into earnings growth for most Indian corporations.
As India’s top software services companies Tata Consultancy Services Ltd and Infosys Ltd get set to kick-start another earnings season - the last under Modi’s current tenure - expectations remain muted. Yet, Indian stock markets trade near record highs and many investors remain upbeat.
“Interest rates have fallen quite drastically and retail investors are left with less choice,” says Krish Subramanyam, co-head, equity advisory at Altamount Capital. “Equities have been a preferred investment, and having Modi has kept markets buoyant.”
Hopes of Modi returning as prime minister after elections that get under way on Thursday have kept foreign investors bullish on India, while the domestic audience rides a wave of patriotism after tensions with arch-rival Pakistan spiked in February. Local markets rose after the tensions eased in March.
Foreign inflows into Indian equities were a net $6.7 billion in January- March, more than reversing outflows of $4.4 billion in 2018.
The NSE Nifty has risen about 7 percent this year, and about 63 percent since Modi took office in 2014.
Recent opinion polls suggest Modi’s Bharatiya Janata Party-led (BJP) alliance will win a thin parliamentary majority in the elections.
If opinion polls suggest Modi will not return, that “could cause some nervousness”, said Gautam Chhaochharia, head of India research and a managing director at UBS.
The stock market has rallied without support from earnings. Aggregate data on 399 of India’s largest listed companies for which comparable data is available shows earnings have fallen in four of the five years of Modi’s tenure, whereas they rose in four out of the five years his predecessor Manmohan Singh was prime minister.
The data, sourced from Refinitiv, also shows that on average, earnings rose 11.94 percent annually under the prior government, while they fell 3.72 percent during Modi’s time.
Graphic: Corporate India's earnings lag under Modi government png tmsnrt.rs/2D7eato
“The underlying earnings trajectory is not even average, it’s one of the worst,” said Chhaochharia.
Big structural changes such as the ban on high currency notes and the launch of a nationwide goods and services tax have hurt growth in the Indian economy, say analysts.
The ratio of corporate profit to gross domestic product (GDP) for companies in the Nifty 500 Index was 2.8 percent in 2018, the lowest in 15 years, according to a report by Motilal Oswal Securities.
MARKETS STILL BULLISH
Modi took office on a wave of optimism he would change India’s economic fortunes. Although India has not grown at the anticipated pace, investors remain hopeful his reforms will pay off eventually.
The nearly 75 percent rise in the Nifty 500 index during Modi’s tenure also reflects a flight of money from traditional investments such as real estate and gold into shares following his shock 2016 ban on high-value bank notes.
Still, the performance lags that during each term of Congress-led coalitions, when the Nifty 500 rose nearly 100 percent.
Graphic: Nifty 500 index rise during government tenures png tmsnrt.rs/2D6w0Nr
A market rally without an earnings recovery has meant that, based on price-to-earnings ratios, Indian companies are at record high valuations.
On average, the Nifty 500 index has traded at a P-E ratio of 18 in the past five years, much higher than the 14.22 level during the prior government.
As earnings reports for the year ended in March begin on Friday, some brokerage firms are somewhat upbeat on a pick-up in earnings.
Deutsche Bank, in a note this week, said it expects median annual growth for firms it follows to be 8 percent.
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India's Modi may face some civil service departures from his office if re- elected Wednesday 10th April, 2019 – Reuters
The Indian government may have to make a series of major changes at the top of the nation’s civil service if Prime Minister Narendra Modi is re- elected to a second term in May, according to multiple sources in the administration.
At least eight senior bureaucrats in the prime minister’s office have either sought a transfer to other departments or plan to take premature retirement, three government officials said. The officials, from the prime minister’s office, the home (interior) ministry and the foreign ministry, declined to be named because of the sensitivity of the subject.
Two of them said they too are keen to be transferred to state capitals or to other jobs. They said officials in several ministries were trying to move, but did not have a number.
There are about 25 senior civil servants working in the prime minister’s office, which under Modi has become the single most powerful department in government.
The three officials said the reasons for wanting out are almost all the same. Many top bureaucrats complained about two aspects of the Modi administration – their inability to influence government policy as it is largely controlled and set by the prime minister and a small group of ministers and advisers, and the demanding work schedule they face.
“The sense of partnership is missing, Modi and his ministers do not have an organic relationship with the bureaucrats,” said the civil servant in the home ministry.
Sanjay Mayukh, a spokesman for Modi’s ruling Bharatiya Janata Party (BJP), declined to comment on the grounds that governance issues were managed directly by ministers.
A spokesman in the prime minister’s office did not return phone calls seeking comment.
To be sure, some other major governments around the world often face a series of departures and changes, especially when a first term morphs into a second term.
Also, just because an official talks about quitting doesn’t mean they will.
But in India, officials in the prime minister’s office are hand-picked for loyalty and tend to stay if the administration is re-elected. Modi’s BJP-led alliance is tipped to win a slim majority in the April-May general election, pollsters say.
Senior bureaucrats said Modi’s top-down approach, and his orders to work on public holidays, to demand they submit details of their assets, and to clean their own workplaces at the start of a five-year cleanliness campaign in 2014, has widened the gap between the civil servants and the nation’s leader.
Amit Shah, a close aide of Modi and the head of the BJP, in a closed-door meeting attended by two ministers in February said bureaucrats continued to suffer from “communist romanticism”, a reference to the alleged influence of the left-leaning Congress opposition party on the bureaucrats. The ministers, who spoke to Reuters, declined to be identified.
DISCONNECT WITH RULING PARTY
For some of the 5,000 or so mandarins who run the Indian government, its state-owned entities, as well as administration at state government level, Modi’s style of leadership has been a jolt.
Many of these top officials have received a Western-style education at India’s elite universities or schools overseas and are uncomfortable with the ruling party’s right-wing Hindu nationalism and Modi’s rough-hewn approach to governance.
While getting into the Indian Administrative Service (IAS), is incredibly hard – only 1 out of about 4,500 who took the civil service exam got selected in 2018 – traditionally once someone got in they had a job for life with few risks of ever getting fired.
An IAS job - one of the most sought after in India - bestows huge power as well as cheap housing, a car with a driver and other perks, leave for government-paid foreign study, and often the chance for plum positions in business or government consultative work after retirement. There is also a handsome pension.
But such conditions can also breed complacency and a lack of ‘can do’ behaviour, according to Indian politicians and civil servants.
They say there are plenty of Sir Humphreys in New Delhi, referring to a character in the British TV comedy series “Yes Minister” about how top officials in Whitehall stall government policies they don’t agree with.
In particular, there is deep resentment in the top echelons of the Indian civil service over the interference in government by the Rashtriya Swayemsevak Sangh (RSS), the Hindu right-wing umbrella group of which the BJP is a part, these officials said.
RSS functionaries have had a major role in successfully lobbying for big changes at the Reserve Bank of India, for example, leading to last December’s resignation of its governor and his replacement with an official who is considered more loyal to Modi, officials said.
TECHNOCRATS, NOT GENERALISTS
RSS figures also criticize Modi for not having enough professionally trained experts in place to implement some of his more controversial policies.
“The country needs a professional administration for economic development and can’t depend on generalists,” said Ashwani Mahajan, co-convenor of the Swadeshi Jagran Manch (SJM), the economic wing of the RSS that has campaigned against some bureaucrats.
Last year, Modi proposed bringing in at least ten professionals from the private sector into the civil service at the joint secretary level, but the plan has still to be implemented, and is facing strong resistance from civil servants. Joint Secretaries are two rungs below full Secretaries, the top civil servant in a ministry.
A senior finance ministry official said major policy decisions including demonetization, Modi’s decision to wipe out high-denomination bank notes without warning in 2016 and to hastily launch a goods and services tax that hit millions of small businesses and jobs, were examples of political decisions that didn’t get enough airing among officials before being implemented. Both are thought to have hurt jobs growth, economists say.
There is a wider concern in the civil service about India being ruled by a Hindu nationalist party that some see destroying the country’s previous tolerant and secular nature.
But the hours are as much of a concern to some.
“I am looking out for other opportunities and have even requested for a transfer because it is almost impossible to work for 12-13 hours every day, even during weekends,” said a senior official working with Modi since 2014.
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India's Modi rides nationalist fervour ahead of election starting on Thursday Wednesday 10th April, 2019 – Reuters
India’s prime minister is rallying his nationalist base as the world’s biggest democracy begins a general election on Thursday, but it has become tighter than anticipated, thanks to dwindling incomes for farmers and scarce jobs.
Polls predict Narendra Modi’s Bharatiya Janata Party-led (BJP) alliance will just win a parliamentary majority, a sharp drop from his commanding mandate five years ago, when he vowed to turn India into an economic and military power.
But his government’s inability to create a million jobs every month, and ease farmers’ distress over low product prices, has taken the shine off what is still the world’s fastest growing major economy.
From sugar farmers in northern Uttar Pradesh going unpaid for produce, to small businesses in the south shut because they are unable to meet the requirements of a new, unifying national tax, discontent has brewed for months.
“The election has become a lot closer than we think, sitting in Delhi,” said Nilanjan Mukhopadhyay, author of a Modi biography and books on Hindu nationalist groups. “There is anger and disillusionment in the countryside.”
In December, alarm bells rang for Modi’s Hindu nationalists after it lost three key states to the main opposition Congress and its allies, led by Rahul Gandhi.
But a surge in tension with traditional foe Pakistan in February has pushed Modi ahead, as he projects himself as a defender of national security and paints his rivals as weak-kneed, sometimes even questioning their patriotism.
“People were very unhappy, angry that Modi makes tall promises and doesn’t deliver,” said Shiv Chandra Rai, an Uber driver in the commercial capital of Mumbai.
“Everyone said there are no jobs, everywhere farmers are struggling. But on this issue of Pakistan we are confused now. Some people feel we have to vote for Modi on this issue, it is a national problem.”
Modi ordered air strikes on a suspected camp of a militant group in Pakistan after it claimed responsibility for a deadly bombing in Indian Kashmir, launching the first such raid since the neighbours’ last war in 1971.
The nuclear-armed foes engaged in a dogfight after Pakistan sent warplanes into India the next day. They also threatened each other with missile strikes, before Western powers, led by the United States, pulled them back.
Modi claimed victory, vowing more similar action if militant attacks continue in Kashmir. He dismissed concerns over the effectiveness of the strikes and the risk of stirring tension with Pakistan.
“Why do these people get so disturbed when India acts strongly against the forces of terror?” he asked tens of thousands of cheering supporters wearing saffron headbands at a rally this week in western India, referring to the opposition.
A regional leader of a Hindu group linked to the BJP and his bodyguard were killed by gunmen who burst into a hospital in the northern state of Jammu and Kashmir on Tuesday, police said, underscoring the BJP’s concern over security in the region.
Militants fighting Indian rule in Muslim-majority Kashmir have warned people not to vote on Thursday.
The BJP was also targeted in the eastern state of Chhattisgarh, when a bomb set off by left-wing militants killed a regional party legislator and four people with him.
CONGRESS EMPHASIS ON JOBS, FARMERS
The Congress, led by Gandhi, and his charismatic sister Priyanka Gandhi Vadra, who took up a party post in January, wants to steer the campaign back to Modi’s broken promises on the economy.
Gandhi has pledged a monthly payment of 6,000 rupees for the poorest families, about 250 million of a population of 1.3 billion, in a bid to stamp out poverty.
“Congress is trying to pitch in the election with regard to farm distress, rural crisis, unemployment,” said Sanjay Kumar of new Delhi think tank the Centre for the Study of Developing Societies.
About 900 million people are eligible to vote in the election, spread over seven phases into next month so that security forces can ensure a free and fair ballot at about a million polling stations.
Results will follow vote-counting on May 23.
Congress has said Modi’s party presents a threat to every opposition group by pursuing its vision of a Hindu-first India, stoking fear among the Muslim minority, a bias the BJP denies.
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U.S. firm's plan for Australia-China internet cable leaves Huawei trailing Wednesday 10th April, 2019 – Reuters
U.S. submarine cable company SubCom said on Thursday it would lay an internet link from Australia to Hong Kong through Papua New Guinea, deepening its involvement in a region where China’s Huawei Technologies Co Ltd has sought to expand.
The route is the most direct internet link yet between Australia and China.
It also includes a connection to Madang in PNG and possible branches to Port Moresby and to Honiara in the Solomon Islands - connections Huawei had agreed to make before Australia blocked its project there last year on security grounds.
The SubCom cable would likely stifle any commercial case for future Huawei cables in the region, according to Jonathan Pryke, director of Pacific Islands research at Sydney-based think-tank the Lowy Institute.
“From a development point of view, it’s great,” he told Reuters. “It would greatly increase the accessibility of internet in PNG.”
SubCom said it was commissioned to build the $380 million line by H2 Cable, a privately-owned Singapore-based firm, in a joint statement. It is due for completion in 2022 and also includes a possible trans-Pacific branch to Los Angeles.
Submarine cables, which can handle more information much faster and cheaper than satellites, carry the vast bulk of the globe’s telecommunications traffic. That makes them strategically sensitive pieces of infrastructure.
In the South Pacific, where they are sorely needed to improve expensive and slow satellite internet connections, cable construction has proven a flashpoint between China and Western powers seeking to contain its growing influence there.
Huawei, which won a tender to build a domestic cable network in Papua New Guinea in 2016 and also uses Madang as a hub, was shut out of building an international cable to Australia amid concern over the company’s links to China’s government.
The company says the concerns are unfounded. Australia promised to build the cable itself.
SubCom, which was sold by TE Connectivity Ltd last year to private equity firm Cerberus Capital Management LP, said the new cable would improve connectivity in the region and H2 said it would also boost capacity and speeds for Australia.
It was cautiously welcomed in the Solomon Islands, though there was some scepticism as to whether proposed branches would ever be built.
“All options for meshing the Pacific Islands are good for the development of the economies of these countries,” said Keir Preedy, chief executive of the Solomon Island Submarine Cable Company Ltd, which is developing the Solomons’ new cable.
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Uber plans to sell around $10 billion worth of stock in IPO Wednesday 10th April, 2019 – Reuters
Uber Technologies Inc has decided it will seek to sell around $10 billion worth of stock in its initial public offering, and will make public the registration of the offering on Thursday, people familiar with the matter said on Tuesday.
An IPO of this size would make Uber one of the biggest technology IPOs of all time, and the largest since that of Chinese e-commerce giant Alibaba Group Holding Ltd in 2014.
Uber is seeking a valuation of between $90 billion and $100 billion, influenced by the poor performance of smaller rival Lyft Inc’s shares following its IPO late last month, the sources said. Investment bankers previously told Uber it could be worth as much as $120 billion.
Uber most recently was valued at $76 billion in the private fundraising market.
Most of the shares sold would be issued by the company, while a smaller portion would be owned by Uber investors cashing out, one of the sources said.
Uber plans to make its IPO registration with the U.S. Securities and Exchange Commission publicly available on Thursday, and will kick of its investor roadshow during the week of April 29, putting it on track to price its IPO and begin trading on the New York Stock Exchange in early May, the sources said.
The sources cautioned that the plans are still subject to change and market conditions, and asked not to be identified because the matter is confidential.
A representative for Uber declined to comment.
Lyft’s IPO priced at the top end of its upwardly revised range last month, assigning it a valuation of more than $24 billion in an offering that raised $2.34 billion. But the stock has traded poorly since debuting on the Nasdaq on March 29, as concerns about the startup’s path to profitability have become more prominent. The shares ended trading on Tuesday at $67.44, well below their $72 IPO price.
In moderating its valuation expectations, Uber is showing a realism that is being increasingly adopted by Silicon Valley unicorns, as stock market investors push back against some of the lofty price tags sought.
On Monday, Pinterest Inc set a price range for its IPO that values it below the $12 billion at which the online image-search company sourced its last private fundraising in 2017.
Uber operates in more than 70 countries. In addition to ride-hailing, its business includes bike and scooter rentals, freight hauling, food delivery, and an expensive self-driving car division.
During the IPO roadshow, Uber’s chief executive, Dara Khosrowshahi, will be tasked with convincing investors that he has successfully changed the company’s culture and business practices after a series of embarrassing scandals over the last two years.
Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.
Uber last year had revenue of $11.3 billion, while gross bookings from rides was $50 billion. But the company lost $3.3 billion, excluding gains from the sale of its overseas business units in Russia and Southeast Asia.
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U.S. bank CEOs face off with Congress for the first time since financial crisis Wednesday 10th April, 2019 – Reuters
Chief executives of some of the largest U.S. banks will testify before Congress on Wednesday, giving lawmakers their first opportunity to grill the lenders since the 2007-2009 financial crisis.
JPMorgan Chase & Co’s Jamie Dimon, Bank of America Corp’s Brian Moynihan, Citigroup Inc’s Mike Corbat, Goldman Sachs Group Inc’s David Solomon and Morgan Stanley’s James Gorman will face off against the House Financial Services Committee.
Led by Democratic Representative Maxine Waters and staffed with some high-profile progressives including Alexandria Ocasio-Cortez, the panel will likely quiz the CEOs on the safety of the financial system, compensation and diversity, as well as their role in financing gun-makers and private prisons.
Also due to appear are Ronald O’Hanley, CEO of State Street Corp, and Charles Scharf, CEO of Bank of New York Mellon Corp, the country’s two largest custody banks.
Wells Fargo & Co will not be represented since former CEO Tim Sloan resigned abruptly last month, two weeks after being grilled by the same committee.
The executives plan to argue Wall Street has reformed the practices that fuelled the crisis and to stress the contribution banks make to the broader economy, testimony released on Monday showed.
Since the crisis, the country’s largest banks have added more than $800 billion in capital to bolster the financial system. But Democratic committee staff wrote in a memo to panel members on Friday that “questions remain regarding whether America is being well-served by the largest and most systemically important banks.”
The banks spent recent weeks preparing for the hearing by meeting with lawmakers and honing their talking points, and believe they have a strong story to tell, people familiar with their thinking said.
In the months leading up to the hearing, the banks also made a string of announcements to show how they are helping customers and communities.
Bank of America said on Tuesday it would raise its minimum hourly wage to $20 from $15 by 2021.
Last month, JPMorgan said it would no longer finance the private prison industry and would invest $350 million in job training programs.
Goldman Sachs has publicly set targets for hiring women and minority groups, a move Citigroup also made late last year.
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China's giant money market fund relaxes investment restrictions Wednesday 10th April, 2019 – Reuters
The world’s biggest money market mutual fund, overseen by the Chinese billionaire Jack Ma’s Ant Financial Group, has relaxed some restrictions on individual investments to stanch a rise in redemptions.
Tianhong Yu’e Bao scrapped personal investment quota requirements and a daily subscription cap effective April 10, Tianhong Asset Management Co, the fund’s manager, said in a statement late Tuesday.
The asset manager said the latest move was meant to “better meet investors’ wealth management demand”. The earlier restrictions were introduced to keep the Tianhong Yu’e Bao money market fund “in prudent operation in the long run”, the statement said.
Under the previous rules, individuals were allowed to invest up to a maximum account value of 100,000 yuan ($14,892.25) and daily investments were capped at 20,000 yuan.
The elimination of quota requirements and daily caps represent the first relaxation of rules for individual investors following a slew of tightening moves over the past two years.
Faced with rising regulatory pressure to shrink its size amid worries over potential systemic risks, Tianhong started to take measures to control the pace of growth of its money market fund in 2017, cutting individual account limits several times.
Market analysts said risk appetite has greatly improved since the start of this year with investors preferring stocks and bonds to money market funds, while expectations of easier monetary policy have pushed yields on money market products lower. These changes have led to a rise in redemptions and a drop in the size of money market mutual funds.
Launched in 2013, the Tianhong-managed Yu’e Bao fund is the world’s largest money market fund. It held 1.13 trillion yuan in net assets at the end of 2018, according to its annual report, down from 1.58 trillion yuan a year earlier. In addition to the Tianhong fund, the Yu’e Bao platform offers 19 money market funds from outside fund managers.
Ant Financial Group owns a 51 percent stake in Tianhong Asset Management Co.
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March mobile phone shipments to China fall 6 percent as economy slows Wednesday 10th April, 2019 – Reuters
Shipments of mobile phones to China fell 6 percent in March compared with the same year-earlier month, official figures showed on Wednesday, as slowing economic growth took a toll on the sector.
The shipments dropped to 28.4 million units in March from 30.2 million units in March 2018, the China Academy of Information and Communications Technology (CAICT) said.
March’s 6 percent slide follows four consecutive months of double-digit declines.
The slowdown points to continued pressure on the likes of Apple Inc, which endured a steep drop in China sales in late 2018, and its domestic smartphone rivals.
The number of new devices launched by phone makers also fell, according to CAICT. A total of 52 new handsets hit the market in the month, down 35 percent from a year earlier.
Last year was an anaemic one for the world’s largest mobile phone market, with total shipments falling 15.5 percent, CAICT data shows. The weakness continued in 2019 - February shipments totalled 14.5 million units, the lowest since February 2013 and a 19.9 percent decrease from a year earlier.
Industry analysts generally attribute the weak performance to a slowdown in economic growth, longer upgrade cycles, and a lull in feature innovation as carriers focus on preparations for the launch 5G connectivity on their networks.
To cope with the slowdown, Chinese domestic brands have been raising prices and moving upmarket, hoping to boost margins. In 2018, Huawei Technologies Co Ltd, Oppo, and Vivo each captured a bigger share of the $500-to-$800 price range of phones, a segment once dominated by Apple.
The U.S. brand, which currently generates over 15 percent of its revenue from Greater China, has suffered in particular from the slowdown. Sales from the region during the three-month period to the end of December 2018 fell by roughly a quarter from a year earlier.
Several third-party retailers have lowered prices on a range of iPhone devices this year. Apple also lowered the official sticker price of its phones after China cut the rate of value-added tax on luxury goods.
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Bank of Japan's Kuroda vows to continue 'powerful' easing Wednesday 10th April, 2019 – Reuters
Bank of Japan Governor Haruhiko Kuroda vowed on Wednesday to continue the central bank’s “powerful” monetary easing to achieve its 2 percent inflation target, while urging the government to win market confidence in its fiscal management.
Kuroda also told parliament that he saw no problems with long-term government bond yields moving at slightly negative rates due to risk aversion among investors globally.
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Nissan brand Infiniti aims to launch first electric car in three years, made in China Wednesday 10th April, 2019 – Reuters
The first electric car for Nissan Motor Co’s premium brand Infiniti will be a sporty sedan produced in China, the Japanese carmaker said in a statement viewed by Reuters ahead of a public announcement expected as soon as Wednesday.
The vehicle would hit the market in around three years, and consumers would get a taste when the company unveils a concept car, dubbed the Qs Inspiration electric sedan, at the Shanghai auto show later this week, Nissan officials said.
“China has the most growth potential for electric vehicles globally, especially in the premium segment,” Infiniti Chairman Christian Meunier said in the statement seen by Reuters.
Automakers operating in China have to sell more so-called new-energy vehicles, either battery electric cars or plug-in electric hybrids, to comply with official production quotas designed to reduce smog.
It was not immediately clear whether Infiniti planned to produce its first electric vehicle in other markets. An Infiniti spokesman said, however, the brand did not intend to export the e-sedan from China.
The planned e-sedan is part of Infiniti’s longer-term strategy to significantly “electrify” its product lineup.
Brand officials have said that from 2021 every Infiniti model launched will be either an all-electric car or so-called “e-Power” hybrids, underlining Nissan’s previously announced plan to make Infiniti primarily an electrified offering.
The e-sedan likely would be built on a new flexible architecture developed specifically to accommodate electrified powertrains, Infiniti said in the statement.
Its design, especially the interior, would be significantly different to current models, design chief Karim Habib said. EVs do not have bulky gasoline engines and transmissions, opening up space inside the car.
“It will have a flat floor, and if you are a passenger you can cross your legs or stretch out your legs,” Habib told Reuters.
Competition in China’s rapidly emerging electric car market is heating up amid an onslaught of models from startups such as Nio and WM Motor, as well as those from established automakers.
In the luxury segment, Infiniti will be competing with the top-selling Model S and Model X by Tesla Inc, as well as other models due to be launched in coming months by Audi, Mercedes-Benz, BMW and Lexus.
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Forecasters predict below normal 2019 hurricane season Wednesday 10th April, 2019 – Reuters
With the start of the Atlantic Hurricane season in June not too far away, forecasters are predicting a below average season.
The Colorado State University Tropical Meteorology project is predicting that the region will see 13 named storms for the season.
Researchers say they anticipate that the 2019 Atlantic basin hurricane season will have slightly below regular activity due to the current weak El Niño event which appears likely to persist and perhaps strengthen.
According to researchers, the sea surface temperatures averaged across the Tropical Atlantic are slightly below normal, and the far North Atlantic is anomalously cool.
In a statement, researchers said: “We anticipate a slightly below-average probability for major hurricanes making landfall along the continental United States coastline and in the Caribbean. As is the case with all hurricane seasons, coastal residents are reminded that it only takes one hurricane making landfall to make it an active season for them. They should prepare the same for every season, regardless of how much activity is predicted.”
Forecasters predict five hurricanes, 13 named storms, 50 named storm days, 16 hurricane days, two major (Category 3-4-5) hurricanes and four major hurricane days.
The 2018 season saw 15 named storms and eight hurricanes which included two Category 4 hurricanes.
The 2019 hurricane season starts June 1 and ends November 30.
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The region’s border is its major threat, says RSS executive director Wednesday 10th April, 2019 – Reuters
The region’s porous border is the biggest threat facing member states of the Regional Security System (RSS), says executive director, Captain Errington Shurland.
Addressing regional leaders and ministers in Kingstown on Friday, Shurland said the maritime responsibility of the region is more extensive than its land space.
“The sea is the lifeline of this region and is particularly key to our economic development. The maritime space is also where most of our threats come from, our ports or borders coupled with the limited capability to conduct maritime domain awareness operations and our lack of maritime and port security awareness among some key stakeholders means that this is a significant vulnerability,” he noted.
Shurland said that they are partnering with the Caribbean Development Bank (CDB) to develop strategies that will assist in dealing with the challenge those vulnerabilities pose.
“In order to address this vulnerability, the CDB has approved the technical assistance request from the RSS for the development of National Maritime Strategies for the member states and a Regional Maritime Strategy and Implementation Plan for the RSS. The outcome of this project will be a strategic and nationally integrated approach to securing the maritime domain and enhance regional coordination and collaboration in preventing and responding to security-related threats to the maritime sphere,” he explained.
Updating on the latest efforts to combat the spread of illegal drugs across the region, the RSS director said they recently signed an MOU with the OAS that is expected to assist in the fight.
“I am happy to report that a memorandum of understanding has been signed with the inter-American Drug Abuse Commission of the OAS that will see the RSS collaborating to counter the trafficking of illegal drugs in our area of responsibility. Additionally, a cooperative agreement was signed with Rescue Global, and Rescue Global is a non-governmental organisation that specialises in risk and resilience management and crisis and disaster response. Given the vulnerability of the region to climatic events this strategic alliance is viewed as a force multiplier as we will have access to capacity building initiatives through the phases of disaster, risk reduction and response cycle as well as to the aircraft that Rescue Global possesses,” he said.
Meanwhile, Shurland noted that the OECS and the RSS will shortly sign a MOU that highlights the two body’s commitment to regional security, among other initiatives.
“…The formalising of this working relationship has been a long time coming and is a reflection of our deep commitment to cooperate in areas relating to security, safety, ocean governance, economics and the environment as well as humanitarian assistance and disaster response,” he said.
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Ecommerce in the Caribbean: A future dream or near reality? Wednesday 10th April, 2019 – Reuters
The Caribbean is known for beautiful beaches, low taxes and for its laid- back lifestyle. But now it aims to gain a new perception: A great location to start an eCommerce.
As there are many efforts and plans to make broadband internet connection available not just in the urban areas but also in the rural areas, new types of enterprises are ready to enter the Caribbean’s economy: eCommerce. Online businesses are popping up everywhere around the world nowadays and the market is unlikely to stop growing.
There are many nations around the world who have looked to rapidly increase their internet and financial architecture to make it able for regional entrepreneurs to shift their business to online operations. The Caribbean, however, has been much slower in creating change in the banking system and so businesses have not been able to take part in the rise of the online economy.
But that is about to change. It is understood that the future of the Caribbean needs to be digital if the economy wants to compete worldwide. For islands like Saint Lucia, eCommerce offers great chances to grow new businesses or transform existing ones. The enterprises in the Caribbean are ready and so is the global market.
Export Handicrafts and Claim Your Piece of the Worldwide Market
The handicraft market in the Caribbean has been traditionally restricted to those tourists who actually visited the region. Thanks to the internet, eCommerce offers a chance to export these crafts which even small manufacturers can take advantage of. This means that enterprises of all sizes will gain access to new markets and customers.
The online market offers a year-round income in addition to the seasonal profits from tourists and visitors. At the start, it is recommended for small manufacturers to invest in an eCommerce platform that allows the maker to interact with their customers. Platforms like Shopify can help small businesses integrate a web store into their website without hiring a developer. That can help them to grow their businesses fast and turn a small business into a smart business. Like many others before, manufacturers will experience that by selling through Shopify their enterprises will grow and create new jobs for the local community.
Shopify offers many apps that can help entrepreneurs communicate with their clients. Within the platform, a material requirement planning system could be added later. This type of software keeps track of the Shopify inventory and incoming orders, so that manufacturers never run out of stock and can deliver on time.
To sum up: with a little help from the internet, handicrafts from the Caribbean can easily be shipped all around the world.
For the Caribbean, eCommerce is an opportunity included in the global trading system and it will likely increase the region’s competitiveness. Furthermore, it will cut down on intermediaries and transaction costs as well as allowing the region to increase and diversify its exports. The good news is that all of this can be achieved simply by making the internet accessible everywhere.
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Govt. will have to engage with ExxonMobil, private sector to renegotiate oil deal- US ambassador Wednesday 10th April, 2019 – Kaieteur News
The US government will play no role in any possible renegotiation of the oil deal with ExxonMobil.
That company, a US-controlled oil giant, is one of the biggest in the world. It is locked in a deal with Guyana for two percent royalty on every barrel it declares plus a 50/50 split in profits.
However, since the details of the arrangements have come out, following the oil discovery in 2015, and subsequent confirmation of several wells of over five billion barrels of oil, there has been widespread criticisms and expressions of concern.
For one, several critics believe that the royalty is too low.
The oil discovered is the lighter, sweet crude, which fetches premium price on the world market. Guyana, it is being argued, should have settled for a better deal of at least 10 percent.
In addition, the 50/50 share in the profits is being viewed with deep suspicion.
ExxonMobil’s long history in the oil business has not been without controversy.
That 50/50 split of profits would only come after ExxonMobil and its two other partners have taken their expenses out. Those expenses include pre- 2015 spending incurred during the initial exploration phase.
ExxonMobil itself has had a history of not playing fair, and with evidence of expenses being inflated in other countries, thus reducing profits, it has been stressed that the shiny glitter of the black gold would not be so shiny, unless Guyana hurriedly attempts to renegotiate the deal.
On Monday, newly-accredited US ambassador, Sarah-Ann Lynch made it clear that the ball is in Guyana’s court. She was speaking during a media engagement at the Embassy in Kingston.
Lynch emphasised that there would be no interference from the local US embassy to facilitate a renegotiation. She said that the embassy’s main role would be to foster opportunities in the oil and gas industry; it’s coming online and its growth.
Lynch also said that the focus is on a level playing field, with an ample opportunity for growth and continuous interaction with government.
Asked whether the US believes that Guyana, as a sovereign country, has the right to push for a negotiation, Lynch stressed that indeed there is certainly the recognition of the country’s sovereignty. However, she pointed out, it would be up to the government to work it out with the private sector to see if there is room for negotiation.
The US ambassador took up her recent posting a month ago.
Batting for the oil find, she said that she believes that there is tremendous opportunity for the country, given the gas reserves.
“The spinoffs will not only benefit the oil and gas sector, but also impact positively all the secondary, tertiary sectors and companies involved in manufacturing, tourism, agriculture, information and technology and services areas. I think there are tremendous opportunities,” she posited.
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Storms Cost Bahamas $828m in 2015-2017 Tuesday 9th April, 2019 – Tribune 242
The Bahamas suffered $828m in damage, losses and costs between 2015 and 2017 as a result of being struck by major hurricanes, the Prime Minister revealed yesterday.
Dr Hubert Minnis, referring to the report by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) on the combined impact of Joaquin, Matthew and Irma, said The Bahamas is preparing to better respond to natural disasters and thus minimise the potential loss of life and damage to property.
“We must maximise our ability to recover as quickly as possible in order to quickly get our communities and the economy back on track following catastrophic events,” he said. “A key part of any readiness plan is to have access to resources as quickly as possible to speed up response and recovery efforts.”
Speaking as the government signed an agreement with the Inter- American Development Bank (IDB) that will give it access to a $100m contingent loan facility, which The Bahamas can draw down upon should a major storm strike, the prime minister said this was part of developing an effective financial strategy to deal with disaster preparedness.
The strategy also involves using the proceeds of extinguished dormant bank accounts to set up an independently-managed disaster relief fund and signing up once again for the regional insurance fund, the Caribbean Catastrophe Risk Insurance Facility (CCRIF), to provide coverage for public infrastructure in the event of catastrophic damage.
“Our administration will undertake proactive steps, to ensure that appropriate legislation and policy framework are in place to mitigate the impact of natural disasters and, by extension, the amount of ex-post resources required to rapidly restore normalcy in the aftermath of a natural disaster,” the prime minister said.
“I am hopeful that the [IDB] will assist The Bahamas in this undertaking, along with technical assistance in creating the framework for a holistic disaster relief strategy.”
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DPM: ‘We’re as Competitive as Anyone’ On Financial Services Tuesday 9th April, 2019 – Tribune 242
The Bahamas “is as competitive as anyone else” in financial services, the deputy prime minister asserted yesterday, despite its latest fall in an annual survey of global financial hubs.
KP Turnquest told Tribune Business that he “personally has no concerns” even though The Bahamas fell 18 spots, dropping from 67th to 85th, in the Global Financial Centres Index just unveiled by London-based think-tank, Z/Yen Partners, in collaboration with the China Development Institute.
The index, which assessed 112 financial centres based on 133 criteria, and received 2,373 responses, showed that The Bahamas’ rating fell by only six points year-over-year - dropping from 591 in 2017 to 585 last year.
This indicates that while The Bahamas may have done little wrong, other financial centres continue to make sufficient reforms and improvements to bypass and leapfrog this nation. While it was ranked one spot below the Isle of Man, another major international financial centre (IFC), the likes of Glasgow, Warsaw, Budapest and Sofia were placed further ahead and The Bahamas was among the greatest fallers in terms of rankings.
The Bahamas was also rated eighth out of nine financial centres in the Latin American and Caribbean region, beating only Buenos Aires. And it was grouped among 15 financial centres said to be suffering from “the greatest reputational disadvantage”.
“This indicates that respondents’ perceptions of a centre are less favourable than the quantitative measures alone would suggest,” the Global Financial Centres Index added. Others falling into this group included the likes of Cyprus, Monaco, Glasgow, Nairobi, Riga, Sofia and Busan.
Still, Mr Turnquest told Tribune Business of the survey findings: “That’s all about perceptions and marketing and that kind of thing. From a competitiveness point of view, after all the rules changes and legislation passed over the past year we’re as competitive as anyone else.
“There’s perceptions, obviously, and the ease of business which we continue to work on, but in terms of efficiency in the international financial services industry we’re competitive although there are always things we can improve on.
“When it comes to the ease of doing business we know still it’s an issue. We’re working on those issues and making progress, and hopefully that will be reflected in the results going forward.”
James Smith, a former minister of state for finance and ex-Central Bank governor, yesterday expressed criticism about the Global Financial Centres index findings, arguing that it was “subjective” and appeared to be based “on a wide range of variables” that use unknown weightings.
Suggesting that rankings were largely determined by media coverage and perceptions, Mr Smith added that the index’s outcome was unlikely to impact The Bahamas’ international financial services business prospects.
“My feeling is that the real sophisticated investors, external asset managers and institutions do a much more thorough on-ground examination of a centre,” he told Tribune Business. “I don’t think there’s sufficient detail to influence people with good skin in the game.
“You’ve got to do a lot more than look at it. I don’t think it will affect business on the ground.... It’s [the index] not entirely useless, but nothing anyone should pay any special attention to.”
However, Paul Moss, head of Dominion Management Services, one of the few Bahamian-owned players in the international financial services industry, told Tribune Business that The Bahamas was “unlikely to be moving up on this index any time soon”.
He added: “This is where The Bahamas is at, and we have to be more strategic in how we respond to some of these issues like blacklists so we can put ourselves in a league of our own or put us in the right standing to be successful.
“This is about tax competition, and The Bahamas has to enter that world so we can be seen as very transparent in our dealings, and people who come to our shores know it’s a very transparent jurisdiction, everyone is rated and ranked, and taxes are collected and paid.
“That’s the way forward. We can run from it, dodge it, but we’re going to have to do it if we want to remain in this business,” Mr Moss continued. “There’s no question it’s about transparency and us being able to demonstrate that.
“Part of that is double taxation agreements so that everyone gets part of the taxes out there. That’s the way it’s got to be. I don’t think there’s any other way than that way. It’s been on the table since the late 1990s and we have pushed it off for 20 years but have to get into it.”
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T&TEC raises fees for temp connections - In the Senate Wednesday 10th April, 2019 – Trinidad Express Newspaper
TRINIDAD and Tobago Electricity Commission (T& TEC) has increased its fees for temporary connections for residential properties.
Public Utilities Minister Robert Le Hunte said the decision was taken by T& TEC's management and was done in an attempt to bring the existing fee structure for temporary connections more in alignment with the cost of providing the service, by close to 100 per cent.
With effect from October 1, 2018, the fees were increased from $1,761.05 to $3,024.70 for a direct single phase and from $2,771.69 to $5,718.41 for a direct three phase.
And in response to another question, the minister said it could take a 'maximum' of three days for consumers affected by the disruption in water supply caused by the shutdown of the Caroni Water Treatment Plant to get back to their regular schedule.
In answer to a question from Opposition Senator Wade Mark, Le Hunte said work down at the Curepe Interchange, involving the changing of a particular valve, coupled with maintenance work at the Caroni plant, led to the shutdown.
He said the plant, which was producing 60-65 million gallons of water, was reduced to 15 million during the shutdown. The major places impacted were in the North because the 15 million gallons were sent to the South.
'We apologise but it was something that could not have been prevented,' Le Hunte said. He said WASA's emergency plan to ensure that the sick and elderly, hospitals and government offices are provided with water was implemented. There was also a truckborne supply.
The water service was restored at 6.05 p.m. on Monday in south-west Trinidad and 7.50 a.m. yesterday in the north. The plant was back up to full capacity producing 50 million gallons.
'We are in a harsh dry season and 50 million is 20 per cent less than we would normally produce at that plant,' he said.
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JMMB in front Wednesday 10th April, 2019 – Trinidad Express Newspaper
Overall stock market activity yesterday resulted from trading in 13 securities of which four advanced, five declined and four traded firm.
Trading activity on the First Tier Market registered a volume of 246,622 shares crossing the floor of the Exchange valued at $1,987,584.78.
JMMB GROUP Ltd was the volume leader with 165,220 shares changing hands for a value of $290,787.20.
The West Indian Tobacco Company Ltd registered the day's largest gain, increasing $1.75 to end the day at $98.75. Conversely, Guardian Holdings Ltd registered the day's largest decline, falling $0.15 to close at $18.35.
CLICO Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 1,240 shares valued at $28,520. The Second Tier Market did not witness any activity. The SME Market did not witness any activity.
The USD Equity Market did not witness any activity.
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IMF: T&T growth flat for 2019 Wednesday 10th April, 2019 – Trinidad Express Newspaper
Three days after the World Bank said the Trinidad and Tobago economy will contract further in 2019, the International Monetary Fund (IMF) also slashed its projections for this country's economic fortunes this year.
Yesterday's IMF World Economic Outlook (WEO) April 2019 projected the country's real gross domestic product (GDP) growth this year at 0.0 percent, and revised its estimate for 2018 downward to 0.3 per cent.
Up until its WEO October 2018, before taking into account the closure of Petrotrin, and before Finance Minister Colm Imbert read his 2019 fiscal policy measures in the 2018/2019 budget statement, the IMF had T& T's real GDP growth estimated at 1.0 per cent for 2018 and was projecting 0.9 per cent growth for 2019.
The World Bank said the T& T economy is projected to shrink by 0.5 percent this year and put 2018 at minus 1.0 percent Imbert did not immediately respond to a request for comment yesterday.
The IMF also noted yesterday that T& T is still using a statistics manual that is 33 years old, and that the latest balance of payments data provided to it is two years old.
The UWI Financial Economics Lecturer Dr Vaalmikki Arjoon was not surprised. 'It was to be expected given the closure of Petrotrin resulting in massive job losses, not just in that company but also in many service companies and contractors which relied on Petrotrin for business. Some of these small service companies have even had to halt operations altogether,' he said.
'Our economic management is clearly clumsy, given the meagre growth estimates of 0.3 per cent in 2018 and the projections of 0.0 percent in 2019 by the IMF. TTiis effectively means that the economy is at a standstill, despite increased gas production courtesy Juniper (offshore gas field) and more recently Angelin.
It means that in spite of gains in the energy sector, the performance of the non-energy sector is still limp, which is no surprise given that the confidence by the business community has been smashed to bits, given the ineffective and inappropriate fiscal handling of the economy thus far,' he said.
'To engage in pro-cyclical fiscal policy and increase taxes, thereby increasing the cost of doing business, during a downturn, especially in a small developing economy as ours, was not a wise idea, and we are seeing the effects now.
This is clearly shown by our other macroeconomic fundamentals, such as an inflation rate of 1.1 per cent, reflecting an environment with weakened local sales and business investments, and projected slowdown in trade, where despite the increase in gas production, our current account balance is estimated at 0.6 percent in 2019, down from 4.9 percent of GDP in 2018,' he added.
Arjoon said: 'There has been and continues to be little investment in the majority of the non-energy sector. Many small businesses are not getting value for money, as despite paying higher taxes, they are still faced with low sales, declining profitability and challenging criminal elements.'
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World Bank: T&T economy will shrink this year Wednesday 10th April, 2019 – Trinidad Express Newspaper
Nothing that T& T has the largest fiscal deficit in Central America and the Caribbean, a group of World Bank economists are forecasting the T& T economy will contract this year by -0.5 percent. T& T is one of only four countries that the World Bank estimates this year will have weaker economies by the end of 2019.
The other three are: Venezuela, Nicaragua and Argentina. The economists also found T& T has the highest fiscal deficit as a percentage of gross domestic product (GDP) in Central America and the Caribbean.
The semi-annual report of the Office of the Regional Chief Economist April 2019 is titled 'Effects of the Business Cycle on Social Indicators in Latin America and the Caribbean: When Dreams Meet Reality' and is authored by World Bank economists Carlos Ve´gh (Regional Chief Economist), Guillermo Vuletin (Senior Economist), Daniel Riera-Crichton (Economist), Jorge Puig (Professor, Universidad Nacional La Plata (UNLP), Argentina), and Jose´ Andre´e Camarena, Luciana Galeano, Luis Morano, and Lucila Venturi (Research Analysts).
Other multilaterals, including the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF) had T& T projecting growth in their reports. In its Caribbean quarterly report released last week, the IDB said: "Trinidad and Tobago's economy is expected to grow in the medium term. The economy contracted by 6 percent in 2016 and by another 2.6 percent in 2017." The IMF also projects the economy to grow by 1.5 percent in the medium term.
However, the World Bank last week estimated the T& T economy contracted by -6.5 percent in 2016, -1.9 percent in 2017 and -1.0 percent in 2018, and is projected to contract further by -0.5 percent in 2019 before 2.0 percent growth in 2020.
T&T, by the World Bank's calculations, is projected to be the only Caribbean economy shrinking this year. On average, the Caribbean as a group is projected to grow, according to the World Bank. "The Caribbean has resumed healthy growth (4 percent in 2018 up from 2.6 percent in 2017) after the devastation caused by hurricanes Irma and Maria in 2017 and is expected to grow by 3.2 percent in 2019,’ said the economists.
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Minister Looks at Improving Health Services in Anguilla Tax Off Drugs and National Health Insurance Coming Monday 8th April, 2019 – The Anguillian
Anguilla’s Minister of Health, Mr. Evans Rogers, told listeners at the Government’s public meeting on March 30 that his Ministry and the Health Authority are working diligently to provide improved services for the people of the island.
Mr. Rogers, the driving force behind the upgrading of the island’s medical services and the acquisition of advanced technical equipment, outlined some of the improvements at the hospital which was severely damaged by Hurricane Irma.
He noted that while all the new equipment was not a result of the hurricane, he was pleased that the Government was in office at the time to maximize the assistance received from a number of donors following Irma.
“In terms of the hospital, there are some rules that need to be changed, and some adjustments and developments in terms of the Accident and Emergency and Operating Room areas to be done,” he said. “I would like to get on with it to see a totally improved facility while we are at it.”
Minister Rogers continued: “When we talk about equipment, I have been on a prowl with respect to raising funds to purchase more state-of-the-art equipment for our healthcare facility. We have a brand-new CT Scan which we will commission by mid-June this year.
We have to make sure that the services we are providing for our people are paid for because there is a cost – and at the end of the day the services must be paid for. Right now, at Hughes Medical Centre, there is a C T Scan and patients who go there have to pay upfront for it.
But, as all of us know, we cannot refuse patients at the hospital whether they have the ability to pay or not.
As a result, there are large amounts of money owed to the Health Authority – and the CEO was on radio about it the other day.
It is over 6 million EC dollars of services that was given, and has not been paid for, so national health is critical going forward if we are to maintain and provide the level of services we want.
“During the Budget Address, the Chief Minister mentioned that the Goods and Services Tax (GST) will be implemented, starting in June, and over a period of time. I want to say to the people of Anguilla that we are going to use this opportunity…to look very closely at the removal of whatever taxes are placed on drugs in Anguilla – whether at the private or [public] pharmacies on the island.
But I must caution the people of Anguilla that what we are doing doesn’t give you the right to purchase all sorts of illegal drugs to bring in, because at the end of the day, the pharmacies that are here are complementary to the pharmacy at the hospital. The new polyclinic in The Valley will have the main pharmacy so that the bottle-necking at the hospital, as it exists, will not be there anymore.
“We have a lot of diabetics in Anguilla; a lot of folks who are on dialysis, and a lot who are hypertensive and who must take these drugs on a daily basis – two or three times a day – to stay alive. I think it is time we move ahead in removing whatever taxes or duties are placed on those drugs because they are for our people.
If the drugs are not at the hospital’s pharmacy, but are down at Paramount or the French pharmacies, they are in Anguilla and we will be able to get them [without taxes].’’
On another matter, the Minister of Health stated: “The other thing that needs immediate attention – and I am going to work with the Ministry of Finance to deal with it – is medical insurance especially for civil servants. While we are working on the National Health Insurance, Government pays a significant amount of money to cover the civil servants – and that amount of money – and the civil servants can be an integral part in assisting with the overall National Health Insurance. Those of us, who are healthy, strong, working and contributing to the system, must be able to assist in terms of those who cannot afford [to pay]. We have to work on a plan like that because the insurance coverage that we have now leaves a lot to be desired.
“I will say this publicly, tonight, and I will continue to say that we are not getting value for our money with respect to our medical and health insurance here in Anguilla. I will get the figures from the Treasury because it is public knowledge and is nothing to be hidden. It is about time that we don’t need any brokers anymore. We need insurance.”
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Big benefits as HLSCC inks MoU with UVI -VI students can now access reduced tuition, more learning resources Tuesday 9th April, 2019 – BVI News Online
Paraquita Bay, Tortola, VI - Persons seeking to further their education at the University of the Virgin Islands (UVI), can now secure an almost $6,000 reduction in tuition fees from the USVI university as part of a Memorandum of Understanding signed between the UVI and the H. Lavity Stoutt Community College (HLSCC).
This announcement was made at a signing ceremony yesterday, April 8, 2019, at the HLSCC where its President, Mrs Judith Vanterpool and Board Chairman, Dr Charles H. Wheatley made the agreement with UVI Vice President of Innovation and Development, Dr Haldane Davies and Dean of Students Saint Thomas Campus, Ms Verna J. Rivers.
Reduced Tuition
According to Dr Davies, “One of the highlights of this MoU… is the adjustment in tuition that will be paid by our students attending UVI whether in person, attending the three locations or online or sitting in a Zoom Classroom from here at HLSCC and zooming into any of our classrooms at any of our locations.” He said that it is an adjustment of the in-territory tuition which results in an almost six thousand dollars tuition scholarship, “Each student from the Virgin Islands will receive each year that you enroll in the University of the Virgin Islands (US).”
Adding to what already exists, the two entities now provide an opportunity for students to not only attend UVI but to attend about 180 other sister institutions, in relations with the UVI.
“So you may take one year off from [UVI] go to school in Canada, or in California or in Mexico and transfer all those credits back. They would be accepted by us and all you will pay is the same tuition that you pay at UVI and you receive that additional experience as a part of your growth and development,” Dr Davies said.
One Caribbean
According to the Dr, “It is one Caribbean, we must be able to help and assist one another,” he said while noting that the opportunity is opened to anyone residing in the Virgin Islands (VI) even if they were not “born here”.
The MoU also makes provisions for HLSCC students to benefit from the UVI’s two plus two and two plus three programmes which allows for students that have studied at HLSCC, to transfer with their credits to the UVI to further their studies. The institution also offers some 52 programmes which are also offered online and across the world.
Further, the UVI also boasts of its improved abilities to conduct researches with more funding now available for same, “In addition to our $42ML budget, we add another twenty to twenty-five million dollars in research grants that we receive annually from the Federal Government and a number of other public and private agencies to conduct research in a number of different areas.”
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BOJ sells US$20 million to forex market Tuesday 9th April, 2019 – Jamaica Gleaner
The Bank of Jamaica (BOJ) is reporting that it intervened in the foreign exchange market yesterday by selling US$20 million to help ease the depreciation of the local currency.
The BOJ says the sum was sold to authorised dealers and large cambios and was aimed at smoothing temporary gaps between the supply and demand in the market.
It notes that the intervention follows a similar operation of US$20 million conducted on February 6.
Noting that in an environment where the exchange rate moves in both directions, the central bank is urging businesses to use forward contracts with their financial institutions to minimise the risks associated with foreign exchange obligations.
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Global Canna Labs closes first medical cannabis sale in Jamaica Tuesday 9th April, 2019 – Jamaica Observer
Canadian company, Global Canna Labs (GCL) has received approval from the Jamaican Cannabis Licensing Authority (CLA) to commence commercial medical cannabis sales domestically to licensed dispensaries.
The company has announced the sale of 46.5 kilograms of dried medical cannabis products in the local dispensaries since their formal approval late in March. GCL's investor, LGC Capital Limited says it has been receiving regular domestic sales inquiries and anticipates a surge in demand for GCLs' products.
LGC also advises that GCL has planted most of its 6.2- acre site in Montego Bay and expects to commence harvesting, under CLA supervision, two sectional harvests per month from various phases of crop growth and various cannabis strains, with the first of these bi-monthly harvests scheduled for April 10.
In anticipation of increased demand for its products, GCL has disclosed that it will open two dispensaries and an extraction facility in the near future.
GCL is one of a few Tier-3 licensees in Jamaica with approvals for the cultivation and production of over 5 acres of medical cannabis.
“This is a tremendous achievement for the team in Jamaica. We have seen many achievements within Global Canna Labs since LGC became a cornerstone funder of this exciting company. We see them continuing to expand and grow at their facility in Montego Bay, as the market demand grows. Senior LGC management recently toured the Montego Bay facility to witness operations almost at full planting capacity and witnessed the results of the first harvests,” Mazen Haddad, co-chairman and CEO of LGC Capital said.
“There is still scope to infill sections of the 6.2-acre site before looking to expand beyond the existing secured growing areas. We see Jamaica as a very key growth market in the area and can see considerable expansion opportunities for Global Canna Labs as a Jamaican leader in their field, as the domestic and internal markets for Jamaica's special brand of organic sativa strains and find their place in the market,” Haddad continued.
LGC has a secured debenture, convertible into a 30 per cent strategic interest in GCL and a 5 per cent royalty on GCL's net sales.
Through its partners and following approval on pending transactions currently under review by the Toronto Stock Exchange, LGC will have interest in over 450,000 square feet of planted cannabis in Jamaica, Switzerland, Italy, and Australia. That is expected to increase to over 2,100,000 square feet by 2021, as its portfolio companies execute their expansion plans, in addition to the anticipated licensing of Tricho-Med's operations in Quebec, Canada.
LGC partners currently sell cannabis products in over 1,000 points of sale across Switzerland and Italy under the ONE Premium Cannabis and EasyJoint brands as well as medical cannabis oils in Australia under the Little Green Pharma brand. LGC's partners' branded products are available in a variety of formats including dry cannabis flower, tinctures, oils, seeds, and beverages.
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Holness: Last-quarter growth was two per cent Wednesday 10th April, 2019 – Jamaica Observer
THE Jamaican economy grew a year-on-year two per cent in the fourth quarter of 2018, Prime Minister Andrew Holness has confirmed.
Holness made the disclosure while speaking at yesterday's Wigton Windfarm Limited's breakfast briefing at the Legacy Suite of the Jamaica Pegasus hotel in New Kingston.
He said that he was informed that the Statistical Institute of Jamaica has reported actual Gross Domestic Product (GDP) growth for October - December 2018 at two per cent, compared to the corresponding quarter of 2017.
“I am happy, but I am not clapping,” Holness told the audience, as he closed his address to a large number of interested investors attending the Mayberry Investment Limited event, which focused on Wigton Windfarm Limited's Initial Public Offer (IPO) scheduled for April 17 to May 1.
“We have had 16 consecutive quarters of growth, all increasing inch by inch. We will get to four, maybe not in five, but we will get to four,” he told his audience.
“We are on the runway, we are picking up momentum. We will take off and soar as this country is blessed to do,” he added.
Holness said the Government was going through a list of its business operations and, as soon as possible, will be packaging a number of other entities, including the Jamaica Mortgage Bank, for similar treatment as Wigton Windfarm.
The Wigton IPO is scheduled to open at 9:00 am on April 17 and close at 4.30 pm on May 1.
The IPO, probably the first of its kind in Jamaica, will include 2.2 billion shares to meet applications from reserved share applicants, including public sector workers. It will be sold for a minimum 50 cents per share with a minimum subscription of $1,000 per shareholder.
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Flow goes bold on mobile plans Wednesday 10th April, 2019 – Jamaica Observer
Telecoms giant Flow yesterday announced an overhaul of its customer mobile plans to provide unlimited calling on any network and increased connectivity.
Flow Jamaica Country Manager Stephen Price made the announcement at an employee event, saying that the company had engaged a specialist research firm to conduct a comprehensive study including extensive interviews and living with the participants to better understand what Jamaicans expect from their telecommunications provider.
“Jamaican consumers want to call anyone on any local network, they want unlimited social media and text messaging, they want simple plans with no surprises and that's exactly what we are delivering to them. It's all done… and all at a great price with fantastic savings,” a company release quoted Price.
“More than ever, Jamaicans are on the move. We are pressing for advancement and improvements in almost every aspect of life. Jamaicans are on the hustle, and at Flow we have committed to becoming greater enablers of this progress by making significant changes to our business that deliver an over-arching new brand promise,” he said.
Describing the initiative as “groundbreaking”, Flow said the strategy is underpinned with simplicity and transparency, and as such truly places customer needs at the centre of its operations.
“This strategy is aimed at turning the hearts of Jamaicans blue while they hustle on. Going forward, we will only have two plans for prepaid — a big plan and a bigger plan — and two simple and affordable post-paid plans. These new Flow plans remove network restrictions and now reflect the uncomplicated value that our customers have been seeking for some time. With Flow, you no longer have to worry about running out of credit and data,” Price said.
The company pointed out that it has also made it easy to purchase additional data for both pre-paid and post-paid plans on Jamaica's fastest LTE network.
“This means that what we promise is what you get — no surprises, complex features, or strings attached,” Price added.
He also shared that the company is removing the need for burdensome contracts to access post-paid mobile services. Those customers will now choose from revamped package options inclusive of always being connected for voice, data and texts to any local network, unlimited social media as well as data allocations and free incoming calls while roaming to specific destinations.
According to Price, this will improve the attractiveness of the post-paid model through greater freedom and “by eliminating bill shock” where customers exceed their data allocation and rack up high bills.
The telecommunications firm, which has operated in Jamaica for over 140 years, said it will also be furthering its commitment to growth and development across the nation through a substantial expansion of its corporate social responsibility programme that will deepen its impact on the lives of thousands of Jamaican families and individuals through entrepreneurship and other income-generating programmes.
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Both business and consumer confidence hit new peaks Wednesday 10th April, 2019 – Jamaica Observer
BUSINESS and consumer confidence in Jamaica continued on its upward trajectory to hit index points of 151.3 and 177.5 for the first quarter of 2019.
The confidence level of businesses for quarter one of 2019 showed increased optimism over the similar quarter of 2018, which dipped to an index point 136.5 from 142.6 in the fourth quarter of 2017.
According to the Survey of Business Confidence Summary Report, firms are of the idea that economic growth increased but not significantly, while a slightly greater number of firms expect the economy to improve over the next 12 months.
“While not significantly different from the proportion reported in the last quarter of 2018, it is worth noting that it is the highest in the history of these surveys. This level of confidence in the economy has also resulted in an increase in the index to 157 points – also the highest in the history of the surveys,” pollster Don Anderson said during the release of the findings.
Firms' willingness to invest in new plant and equipment soared to its highest in the history of the survey, at 159 points. Over 70 per cent of firms continued to agree that the time is right for expansion, while more than half the firms surveyed indicated having solid plans to increase the level of capital investment in their firms over the next 12 months.
Still, crime and its associated costs continue to hold the top spot as the main barrier to investment for quarter one of 2019.
Despite the increased optimism, firms are not as hopeful about financial gains and profits, with 74 per cent expecting gains within the upcoming year, down from 78 per cent.
There was also a reduction in the percentage of firms anticipating improvements in company profitability, which amounted to 69 per cent, down from 71 per cent.
“The main reason for these views is the confidence in the internal strategies and plans that will be established in the year ahead,” Anderson said.
The business community also anticipated that the Government would not announce any changes in taxes in its budget for the next fiscal year.
ANOTHER RECORD IN CONSUMER CONFIDENCE
Consumer confidence strengthened in the first quarter of 2019 to 177.5 points compared to 175.5 points in the fourth quarter of 2017, representing another record in this index.
“Consumers' expectations for and observation of jobs is at the heart of confidence (30 per cent). Consumers' confidence is also driven by their views of the Government initiatives (21 per cent) as well as their observation of the infrastructural changes they see around (21 per cent),” the report said.
Despite the increased confidence, expectations for income gains, current and future economic conditions remained stable. The current job index dipped marginally to 54 points from 55 points in the first quarter of 2019.
“This represents the first time in nine quarters that a dip has been reported in this indeed. Job outlook also dipped by 1 index point from 123 to 122, the first time in four quarters,” Anderson reasoned.
The majority of consumers do not anticipate purchasing a home, car or taking a vacation in the year ahead. However, among those who anticipate doing so this is most likely to be a vacation. Nearly all intend to finance it from their personal savings.
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Wigton IPO aims to raise $5.5 billion Wednesday 10th April, 2019 – Jamaica Observer
WIGTON Windfarm, the wholly owned subsidiary of Petroleum Corporation of Jamaica (PCJ), hopes to raise roughly $5.5 billion from its initial public offering which is set to open on April 17.
The IPO, which falls a little lower than that of Wisynco Limited in December 2017, has put up for sale a total of 11 billion shares, of which 2.2 billion are reserved for public sector workers, at a share price of $0.50 per share for all applicants.
Shares will be allocated in tranches of 10,000 for individuals looking to get a stake in the company before the IPO closes on May 1, 2019 at 4.30 pm.
The offeror, PCJ, expects to receive approximately $5,105,882,847 from the sale of the shares after deducting sale and listing expenses. The sale is being conducted in the capital of Wigton Windfarm.
“Directors of PCJ, at the direction of the Government, are undertaking the offer for sale followed by listing of the shares on the Stock Exchange in order to widen the ownership base of the company; and allow direct equity participation in the economy by encouraging local ownership and participation in the energy sector; and provide funds to PCJ,” Wigton said in its prospectus which was posted on the Jamaica Stock Exchange on Monday evening.
The shares will be listed on the main market of the JSE.
Wigton has advised that it has adopted a dividend policy that will target to pay out a dividend not exceeding 25 per cent of net profits after tax as it continues to pay down its debt. However, the company noted that its dividend policy is subject to the availability of sufficient distributable reserves for each financial year.
Up to December 19, 2018 the company was indebted to the PetroCaribe Fund in the aggregate principal sum of US$49.2 million under two loan agreements, part of which was used to fund the purchase and installation of nine wind turbines and later the purchase and installation of 12 two- megawatt wind turbines with the potential to generate savings or expand revenue flows to the Government.
In anticipation of the IPO, Wigton, in December 2018, launched a private placement of bonds to raise up to $6.5 billion in order to repay the loans owing to the PetroCaribe Fund. The placement was successful with the company raising $6,348,586,690.42 which was converted to US dollars through a Bank of Jamaica facility.
If the IPO is successful, Wigton would cease to be a public body and would not qualify to hold loans from PetroCaribe Fund.
The energy provider, however, cautioned potential shareholders to be aware that the price of the shares and the income derived from them can, in common with other shares, go up as well as down.
“There is no assurance that the investment objectives of the company will be actually achieved,” the company said.
Wigton named risks in relation to the first sale and market liquidity, ordinary stock price fluctuations, changes in Government regulations and policies, failure by Government to implement energy development plan in addition to risks of hurricane, fire and other acts of God.
“The shares, though listed on the Jamaica Stock Exchange, may not be readily saleable and shareholders who may want to 'cash-out' may not be able to do so or may only be able to do so at a discount,” Wigton said in its prospectus.
Wigton Windfarm is recognised as the largest wind energy facility in the English-speaking Caribbean. Located in Rose Hill, Manchester, the wind farm currently comprises three plants: the 20.7mw Phase I, which began operating in 2004, Phase II an 18mw extension facility commissioned in 2010 and the 24mw Phase III, which was commissioned in 2016 bringing the wind farm's total capacity to 62.7mw.
The company's main objective is to facilitate and promote the use of wind and other alternative forms of energy to drive the diversification of Jamaica's energy mix.
Since becoming operational, Wigton has reduced national oil consumption by close to 406,000 barrels which has saved Jamaica almost $3 billion. Wigton's financials showed that the company improved net profit by $639 million to total $826 million for its 2018 financial year over 2017.
The government announced plans to divest the wind energy facility, other government-owned projects and properties including the Coffee Industry Board, and government-owned lands at Silver Sands in Trelawny last year.
The PCJ offer is the third listing on the JSE since the start of the year but the first to be listed on the main market in 2019. Lead broker on the transaction is Mayberry Investments Limited.
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CAC2000 losses grow more than tenfold due to roadwork Wednesday 10th April, 2019 – Jamaica Gleaner
The industrial air-conditioning supplier CAC2000 Limited reported that its sales dropped by one-third and its losses grew more than tenfold in the January quarter 2019 compared with the previous year, arising from roadwork disruptions adjacent to its head office on Marcus Garvey Drive in Kingston.
Investors tanked the company’s stock price which dropped by nearly half since the start of the year.
CAC stated that it would utilise this period of reduced activity to restructure its processes to become more efficient in order to raise profitability when normality returns. It involves measures to contain expenses and, importantly, to ensure that its operating ratio is equal to or better than last year’s, and that operating cash is positive and improved by the third quarter.
“With much of the construction disruption and temporary sales and cash- flow issues still affecting our daily processes, our amazing CAC team has decided to turn this major negative into a positive by restructuring, adapting and changing our overall operational approach,” said the company’s Chief Executive Officer Steven Marston.
“As a company, we have set ourselves a goal to win and execute more projects, build on our residential and service sales while driving down inventory and accounts receivable to free up cash,” he added.
The roadworks at a section of Marcus Garvey Drive, Spanish Town Road and Hagley Park Road began last year and will extend into late 2019. The improvement works, which are meant to address traffic congestion, were contracted to China Harbour Engineering Company by the Jamaican Government, through the National Works Agency.
CAC made sales of $166.4 million over three months ending January 2019 compared to $239.5 million over the corresponding period a year earlier.
It recorded a $37.7-million net loss for the quarter compared with a $2.2- million net loss the previous year. Also, the company’s cash and equivalents balance at $144 million dropped from $228 million a year earlier.
The company’s stock opened 2019 at $16.92 per share and traded at $9 last Wednesday, losing 25 per cent last week alone. CAC 2000 listed its 129 million ordinary shares on the junior market of the Jamaica Stock Exchange in January 2016. Just over 52 per cent of the shares are held by its parent company, Caribbean Air Conditioning Company Limited, based in St Lucia.
CAC previously indicated that a quarter of CAC’s sales come from walk-in customers. The company continues to open its doors for business, but access to its entrance is restricted due to blockages from the roadworks as well as construction equipment, often making it difficult for containers delivering the air-conditioning units it supplies to reach its complex. A number of other businesses in the area have also reported a reduction in sales arising from the ongoing roadwork.
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Everything Fresh hunts market share and growth Wednesday 10th April, 2019 – Jamaica Gleaner
Junior market-listed company Everything Fresh experienced a steep decline in year-end profits, but Chairman Gregory Pullen says he is not fazed since he expects revenue growth and other real benefits to flow from an aggressive expansion.
The company’s bottom line shrank from $37.3 million at the end of 2017 to less than half, $16.34 million, at the end of December 2018. This came on the back of a small rise in gross revenues, which moved four per cent from $1.81 billion to $1.88 billion over the same period.
Pullen says the company was in the middle of an aggressive expansion programme. Part of that was a bid to stake a claim on the market by competing on price.
“We are focusing on growing market share, and sometimes, when you do that, you have to be aggressive, and that involves giving up margins to get new lines and so on,” he said.
Pullen said another part of the growth strategy was to focus on organic growth and growth through acquisition while still inside the first year after the company’s initial public offering.
According to notes accompanying the financials, on December 14, 2018, the company deposited $49.9 million for the purchase of the assets, excluding stock, of Meat Experts Limited, a transaction that was completed in January 2019. Pullen said the acquisition should add substantially to Everything Fresh’s top line.
“That is fully operational, and, as it stands, we will see another $500 million per year flowing to our sales, and that is before the growth that we expect to see from the introduction of some new lines that we’re already developing in that division,” he said of the operation located in Bog Walk, St Catherine, noting that the company is already looking to expand the business.
“We’re going with a huge operation. We are slaughtering, so manufacturing there will take the form of pork and beef cuts, and we will be doing high end, as well as mince. We’ll also have hamburger production, and there are other things that I will not say right now,” he said.
Another $70 million was invested in another operation, according to Pullen, who declined to disclose the type or location of the venture but said it is expected to give revenues superior to those of Meat Experts.
“This is why it may seem that we lost focus on profits, but it’s that we were gearing up for what is expected to come from those two acquisitions, and we know the potential they have,” he added.
The company employed another 25 persons consequent on the Meat Experts acquisition, and, according to Pullen, that is in addition to the hiring of a chief financial officer and improvement in logistics, which included trucking. He said that the new hires and systems expansion was money well spent and that he is predicting that by year end, Everything Fresh’s top line will almost double the 2018 earnings.
“Recall that the Marcus Garvey Drive operation (in Kingston) is a $1.9- billion-revenue operation, the Meat Experts acquisition will add another $500 million, and we expect another $1 billion on top of that by the end of this year, so we had to put in place the resources to manage that,” Pullen said.
Pullen said the company will be producing bulk products such as choice meat cuts, mince and hamburgers for hotels, restaurants, schools and hospitals, as well as branded products for the retail trade. Products are expected to hit the shelves by June 2019. Pullen said he is weighing the options for branding.
“Right now, we have three options. We purchased the Meat Experts trademark, and we have two others that we will have to test [on] the market to see which one of those is the most appealing for whatever reason and go with it,” Pullen said.
The other two options, according to Pullen, are ‘Everything Fresh’ and ‘Gourmet Cuts’. A market survey will be used to determine the specific product attachments, he said. This means that prime meat cuts may carry a different brand name from hamburgers or mince.
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NSC takes over Gymnasium Tuesday 9th April, 2019 – Nation News
Sporting fans need not fear. The operations of this country’s biggest multi- sports complex are continuing even with the dissolution of the Gymnasium Limited.
The National Sports Council (NSC) has taken over the operations of the Gymnasium of the Garfield Sobers Sports Complex with no disruptions to its regular schedule.
Acting director of the NSC, Neil Murrell, told THE NATION that a skeleton staff from the NSC was manning the Wildey complex.
“We have a dissolved institution and the National Sports Council as directed by Cabinet will take over the running of that [the Gymnasium]. At this juncture, we are looking at the operations of the institution and we are putting things in place to ensure the functioning of the Gymnasium,” he said.
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Austerity ‘pays’ Tuesday 9th April, 2019 – Barbados Today
Officials of the International Monetary Fund (IMF) are banking on a return to growth for the Barbados economy as a result of Government’s austerity measures.
In fact, Chief of the World Economic Studies Division in the Research Department of the IMF Oya Celasun is predicting that confidence will return to the local economy in the coming months as a result of the four- year austerity IMF-backed programme.
Responding to a question from Barbados TODAY at the 2019 World Economic Outlook media conference in Washington this morning, Celasun also pointed out that in coming months tourism dependent economies in the Caribbean should experience higher growth than commodity dependent ones.
She explained that this was due mainly to the prospects for these economies being tied to those that are more advanced.
“There has been some softening, but generally growth is stronger (in tourism-dependent economies). The commodity-dependent ones are still in the process of adjusting to the lower commodity prices and some of them, oil prices,” said Celasun.
In relation to the struggling Barbados economy, the economist said once Government remained disciplined in implementing and meeting its targets, confidence should return, resulting in a strengthening of economic activity.
“For Barbados, we have an IMF programme so the prospects are that activity will strengthen somewhat with the build-up of confidence as the programme is implemented,” she said.
“It is essential for that to happen to return to positive growth in 2020 – that the targets are met and the reforms are steadily implemented,” she added.
The Barbados economy declined by 0.6 per cent last year and has averaged a disappointing -0.7 per cent growth over the last decade
Faced with a massive debt of approximately 150 per cent of gross domestic product (GDP) and an unsustainably high fiscal deficit of around six per cent, the Mia Mottley-led administration took the decision to enter into an IMF programme.
Following initial meetings in June, officials signed off on a US$290 million Extended Fund Facility programme with the IMF in October last year, and the country has received its first passing grade in December 2018.
The austerity measures, which included public sector layoffs, introduction and increases in some user fees and restructuring of public enterprises, are ongoing.
According to the World Economic Outlook: Growth Slowdown, Precarious Recovery, an IMF publication released this morning – the Caribbean should experience a decline in growth to reach 3.6 per cent this year, following the 4.7 per cent last year.
In relation to the global economy, Chief Economist of the IMF Gita Gopinath said growth is expected to weaken this year as a result of a slowdown of growth in 70 per cent of the world economy. Following softened growth of 3.6 per cent last year, it is projected to further slow in the first half of 2019 to reach 3.3 per cent, representing a downward growth projection of 0.2 per cent.
This, she said, was as a result of a negative revision for several major economies such as the US, Canada, Australia the Euro area, Latin America and the UK.
“With improved prospects for the second half of 2019 global growth in 2020 is projected to return to 3.6 per cent. This recovery is precarious and predicated on the rebound in emerging market and developing economies where growth is projected to increase from 4.4 per cent in 2019 to 4.8 per cent in 2020,” she said.
However, she said the world economy remained in a precarious and delicate state, adding that several economies still faced a range of challenges.
She warned of some significant factors that were weighing heavily on growth including ongoing trade tensions between the US and China, changes in international oil prices and uncertainty surrounding Brexit.
Gopinath also warned of the need for countries to “avoid costly policy mistakes”.
She said policymakers should “work cooperatively” to ensure strong monetary and fiscal policies and financial sector policies to address specific country issues.
She also pointed out that economies were facing risks associated with climate change.
“Across all economies, the imperative is to take actions that boost potential output and boost inclusiveness and strengthen resilience,” said Gopinath.
“This is a delicate moment for the global economy. If the downside risks do not materialise, and policy support put in place is effective, global growth should rebound. If, however, any of the major risks materialise then expected recoveries in stressed economies, high debt economies, in export-dependent economies, maybe derailed,” she warned.
Policymakers, economists, financial experts and other stakeholders are meeting in Washington this week for the annual IMF/World Bank Spring Meetings as they discuss challenges facing economies around the world, and come up with possible solutions to spur growth.
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June deadline Wednesday 10th April, 2019 – Barbados Today
Barbados has until June to meet 40 standards set out by the Financial Action Task Force (FATF), aimed at combatting money laundering and the funding of terrorism.
With about eight weeks left to get the country’s house in order, Attorney General Dale Marshall has told Parliament he remains confident that the deadline will be met with favourable approval by the international regulatory body.
“We have been given until June of this year to meet those minimum standards or else we will be put on a further level . . . that is a little bit more intrusive. What we are in now is an enhanced follow-up process which means we have made the commitment to make the necessary changes to its law and to submit those changes we have made to the regional body the Caribbean Financial Action Task Force.”
The Attorney General, who was leading debate on changes the Companies Act debate in the House of Assembly, said Bridgetown has already submitted a progress report on the changes.
“I am pleased to say that on the 26th of March, Barbados submitted a report within time. And we believe that based on the progress we have made that we will be in a position to say that we do much better in our June assessment. As long as we can get these pieces of legislation enacted by mid-May these will allow us to score even higher in that evaluation exercise.”
The Minister of Legal Affairs urged Barbadians to pay attention to changes and their implications as the country continues to position itself on the global financial services market. He drew specific reference to correspondent banking.
“The problem with playing with the big boys is that you have to follow the big boy’s rules. But more importantly, each of us rely everyday on the ability of our banks to transact business with banks overseas. Something called correspondent banking. Each of us rely everyday on the ability of our local enterprises to trade without undue restriction in foreign areas. Each of us rely everyday on the ability as Barbados as a domicile to attract overseas investors because we are considered to be a well- ordered, well-run and properly regulated domicile.
“We may not notice it but the ability of a Barbadian to buy a can of Brunswick sardines on a shelf in a minimart in Black Bess depends on the ability of our banks to make payments to overseas suppliers. The ability to conduct a simple credit card transaction whether it is on Amazon or if they have a child going university abroad… that if our institutions do not meet the standards of the other institution then they say: ‘I cannot do business with you.’”
Marshall explained that the financial rules were in place to ensure that money laundering did not find a home here.
He continued: “Don’t fool yourself money laundering is any time you take money that is the proceeds of a crime and put it through the banking system. A former member of this Chamber is currently charged in the United States with money laundering. This is not some figment of our imagination it is not a product of a hyperactive mind.
“There are Barbadians who are charged before our courts for money laundering as we speak. Therefore these measures are important in assisting us to discharge our obligations to ourselves as a well-regulated state and our obligations to the international polity of which we maybe small but we consider ourselves to be an important member.”
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New steps to register charities Wednesday 10th April, 2019 – Barbados Today
Setting up a charity in Barbados will not be as ‘simple’ as it has been for the past 40 years.
That’s because new legislation will see a more stringent procedure as it relates to divulging information about the charity and its trustees.
Attorney General Dale Marshall said the changes could not be avoided as Barbados continues to align itself with what international regulatory body Financial Action Task Force (FATF) is demanding. The AG made the disclosure while leading off debate in the House of Assembly on both the Companies (Amendment) Act and Charities (Amendment) Act.
“We will be required in the new form to set out information that is more useful to regulators and that would allow an agency that has to investigate what a charity is doing to be able to get information on the individuals.
“You will now have to provide the full names, addresses and occupations of the trustees. You will have to provide information on any properties that they own. You will also have to provide information on any applicant trustee or beneficiary who has held prominent public office in any international organisation.”
The chief lawmaker said that while the process was “simple” it did not provide enough information in order for regulators to properly police the operations of the charity.
“It is a very simple form but for all its simplicity, it has to be admitted that there is not enough factual material which would allow for effective regulation. Even though we have operated in this way since 1979 the fact is that in an environment where you have to deal with money laundering commitments, where you have to deal with transparency issues, that form and that formula are really inadequate.
“If we were going to pass a bill today we would immediately reject that form providing minimal information to a regulator as being not in keeping with modern requirements. It is easy to use but impossible to regulate,” Marshall said.
He went on to explain the existing procedure: “The method of registering our charities in Barbados as exists today, all that you have to do Mr Speaker, is sign a form which says: We, being trustees for and you name the charity – hereby apply to be incorporated as a board under the provisions of The Charities Act. We desire the name of the board to be – so you will say John Brown Charity – and you would say where the office is going to be. All the trustees sign it. You don’t give the address of any trustee. You don’t have to provide any information on who the trustees are.”
The MP for St Joseph said the change will also affect parliamentarians who use charities to service their constituents.
“The Charities Act has been a friend to many of us parliamentarians because a number of us set up charities in order to serve our constituents. There is a good reason for that. They are some people who are prepared to donate to a registered charity but they are not prepared to fund a particular parliamentarian…. They don’t want to be seen as being aligned or owing any allegiance to any particular political party.”
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US$103M wind farm in NW to save 250K barrels of oil yearly Tuesday 9th April, 2019 – Dominican Today
President Danilo Medina on Tues. inaugurated the first phase of the Agua Clara wind farm, whose annual electricity production will save the country around 250,000 barrels of oil per year.
The wind farm is the first renewable energy project developed in the country by the multinational INKIA Energy, whose first stage cost US$103 million.
The wind farm will produce around 170,000 megawatts per hour annually which is expected to impact nearly 250,000 citizens, said executive director, Willem Van Twembeke, in his keynote speech.
The first phase features 25 turbines that have been in operation since February and mark the entry of INKIA Energy into the renewable energy sector, “which is constantly growing in the country with the purpose of mitigating the effects of the climate change and meet the Sustainable Development Goals.”
“Due to the potential and favourable investment conditions in the Dominican Republic, the company does not rule out the development also of solar projects.”
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IMF walks back Dominican Republic growth from 5.5% to 5.1% Tuesday 9th April, 2019 – Dominican Today
The International Monetary Fund (IMF) estimates that the Dominican Republic will grow 5.1% this year and that consumer prices will climb 1.4% by yearend 2019, according to its latest report from the World Economic Outlook presented on Tuesday.
As recent as March, the multilateral organization had predicted a growth of the local economy of 5.5%.
The IMF also reduced the outlook for economic growth of Latin America and the Caribbean to 1.4% during 2019.
The projection is a substantial reduction from the 2% it had forecast in January but exceeds the 1% growth in 2018.
“The second half of 2018 was weak and much of that is creeping to 2019,” IMF chief economist Gita Gopinath told reporters.
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