OUR UPCOMING WORKSHOPS!
WORKSHOP DATE COUNTRY Best Practice Financial Modeling (Intermediate) 27th & 28th September, 2018 Jamaica
SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: [email protected]
Latest Rating Actions by CariCRIS
▪ Dominica AID Bank removed from rating watch and downgraded to CariBB- ▪ Bourse Securities Limited’s rating reaffirmed at CariA- ▪ Beacon Insurance Company Limited’s rating reaffirmed at CariA- ▪ PLIPDECO’s rating reaffirmed at CariA+ ▪ National Investment Fund Holding Company Limited’s rating assigned at CariAA ▪ Eastern Caribbean Home Mortgage Bank’s rating reaffirmed at CariBBB+ ▪ Development Bank of Jamaica Limited’s rating reaffirmed at CariBBB+ ▪ Rhand Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB- ▪ Government of Barbados’ rating downgraded to CariD ▪ Massy Holdings Limited’s rating reaffirmed at CariAA+ ▪ Venture Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB- ▪ Eastern Credit Union’s rating downgraded to CariBBB- ▪ Government of the British Virgin Islands’ rating reaffirmed at CariAA-
Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings
Benefits of a CariCRIS Rating to an SME: • Access a loan or line of credit from a financial institution
• Access credit from international suppliers
• Improve your business operations for greater efficiency and profitability
CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.
REGIONAL
Trinidad and Tobago
Scotia shares advance to $65.10 Overall market activity resulted from trading in 11 securities of which six advanced, four declined and one traded firm.
BHP Billiton finds new gas offshore T&T Australia's BHP Billiton found new gas offshore Trinidad, the company confirmed in a statement yesterday. 'In Trinidad and Tobago, following the gas discovery at LeClerc, we commenced Phase 2 of our deepwater exploration drilling campaign to further assess the commercial potential of the Magellan play. The Victoria- 1 exploration well was spud on June 12, 2018 and encountered gas. Following completion of the Victoria-1 well, we expect the Deepwater Invictus to drill the Bongos prospect in Northern Trinidad and Tobago,' BHP Billiton said in a news release.
American Airlines hires 100 TT's newest business process outsourcing (BPO) office has provided jobs for more than 100 people.
Barbados
China MOU Medical professionals at the Queen Elizabeth Hospital (QEH) will have further opportunities to develop their skills in vascular and orthopaedic surgery and other specialized areas through collaboration with the Chongqing Medical University, one of the leading medical training facilities in China.
PM: Bank talks a must Prime Minister Mia Mottley is to hold talks with the country’s banking sector on a wide range of issues of national concern.
Moves to increase Panama flights to 4 Government is already looking to expand the arrangement with Copa Airlines to capitalise on the Latin and South American markets, as well as more destinations in the United States.
Jamaica
GraceKennedy cuts 70 jobs in restructuring exercise Conglomerate GraceKennedy Limited yesterday announced the separation of 70 employees as it embarks on a restructuring process aimed at improving the group's performance for its 100th birthday.
PM charges local authorities to expedite granting of building permits Bemoaning the unacceptable rankings of the granting of building permits by the World Bank's Ease of Doing Business Report, Prime Minister Andrew Holness has mandated municipal corporations to prioritise the issue in their discussions at the inaugural Local Governance Conference now underway in Montego Bay.
Guyana
Rice exports up by 43% - new markets open, earnings pegged at $23.2B As the Guyana Rice Development Board (GRDB) wraps up its 2018 first crop, results from January to June show an export volume increase of 87,000 tonnes as compared to the same period last year.
Antigua and Barbuda
EU pledges more support for Barbuda recovery The European Union (EU), on Tuesday signalled its intent to support post- hurricane recovery and reconstructions efforts in Barbuda.
Antigua shows strongest air arrivals in 15 years Antigua and Barbuda tourism officials say that for the first time in over 15 years, the country has seen the strongest overall visitor arrivals by air from January to June.
Cuba
Cuba seeks to drive Havana hotel investments The Cuban Ministry of Tourism (MINTUR) has named the capital city of Havana a priority destination for tourism investment.
Central Bank to ease ‘critical’ dollar pinch The Central Bank of the Dominican Republic on Wed. decided to intervene in the exchange market to meet the demand for US dollars that has spiralled in recent days.
Another natural gas plant or the Govt. spewing hot air A Chinese conglomerate has agreed to develop a 1,200MW natural gas power complex in what is poised to be Dominican Republic’s biggest power project.
The Bahamas
WSC Faces $17m Shortfall Over ‘First World’ Upgrades The Water & Sewerage Corporation (WSC) is exploring “ways and means” to bridge a $17m funding shortfall on works critical to bringing its waste systems “in line with the first world”.
WTO Push Poultry Farmers to Eye Product Diversification An Abaco poultry producer yesterday said "uncertainty" surrounding the World Trade Organisation (WTO) accession has forced it to explore diversification, adding: "You don't know what field you're playing on."
Chamber Facilitates Tax Reform Meetings The Chamber of Commerce's chief executive yesterday said the private sector will continue to discuss tax reform options with the Government even as it adjusts to the VAT rate increase.
St. Kitts and Nevis
Government making moves to implement $500 initiative Three years after being elected and making a promise, the Team Unity government is now moving forward with the initiative to give $500 per month to households making less than $3000 per month.
Haiti
Sunrise Airways new non-stop flights Santo-Domingo - Curacao The private Haitian airline Sunrise Airways based in Port-au-Prince, whose head office is located in Haiti announced Monday, July 16, that nonstop flights are made from Santo Domingo to Curaçao, from the international airports "La Isabela" and "Las Americas", in the Dominican Republic Rates.
Other Regional
St Vincent joins with Venezuela in opposition to OAS resolution condemning violence in Nicaragua The Organization of American States (OAS) on Wednesday condemned the acts of violence in Nicaragua, called on all parts to participate “actively and in good faith” in a national dialogue and urged the government “to support an electoral calendar,” in a resolution approved by the Permanent Council with 21 votes in favour. interCaribbean opens up flight options for the Caribbean interCaribbean Airways is introducing new routes from Santo Domingo (Dominican Republic) to Aruba, Curacao, and Kingston (Jamaica). The services will be in addition to its nonstop services to Tortola (BVI), St Maarten, and Providenciales in the Turks and Caicos Islands (TCI). The new destinations of Aruba and Curacao will also serve as new routes for the British Virgin Islands with connections from Tortola via Santo Domingo.
INTERNATIONAL
United States
Stock futures drop on disappointing earnings, trade tensions Disappointing earnings from eBay and American Express pushed U.S. stock index futures lower on Thursday, while trade tensions rose on news the European Union is preparing to retaliate if United States slaps tariffs on EU cars.
U.S. weekly jobless claims drop to more than 48-and-a-half-year low The number of Americans filing for unemployment benefits unexpectedly fell last week, hitting its lowest level in more than 48-1/2 years, as the labour market continues to strengthen.
United Kingdom
Sterling dives to 10-month low below $1.30, more weakness seen Sterling fell below $1.30 for the first time in 10 months on Thursday as the combination of weak economic data and a resurgent dollar sapped appetite for the British currency.
Europe
Earnings disappointments pull European stocks back from month highs A rally in European stocks fizzled out on Thursday as poor results drove down advertising agency Publicis and a slide in metals prices dragged on the market.
China
China boosts liquidity, set for more policy easing as trade war threatens economy Chinese policymakers are pumping more liquidity into the financial system and channelling credit to small and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.
Japan
Nikkei snaps 4-day winning streak; weak cosmetics cos offset oil, machinery stocks Japan’s Nikkei share average snapped a four-day winning streak in choppy trade on Thursday as investors took profits, with weakness in inbound-tourism related stocks offsetting gains in oil names and machinery makers.
Global
Dollar stays strong as China grabs for stimulus levers The dollar stayed strong but stocks wobbled and metal markets buckled badly on Thursday, as signs that China was resorting to credit-fuelled stimulus again helped drive its currency to a one-year low.
GraceKennedy cuts 70 jobs in restructuring exercise Thursday 19th July, 2018 – Jamaican Observer
Conglomerate GraceKennedy Limited yesterday announced the separation of 70 employees as it embarks on a restructuring process aimed at improving the group's performance for its 100th birthday.
In a statement to shareholders on the Jamaica Stock Exchange, GraceKennedy also disclosed that it has engaged change management partner Prosci to provide the company with a “structured process and the necessary tools to successfully manage the people side of these major changes”.
The food and financial services conglomerate began a round of restructuring activities earlier this month after contracting the Mexico- based consultants to address overall organisational design, cost structure, and business processes.
Ultimately the company wants to hit $100-billion in annual revenue before 2020 from growth in both its local and overseas markets. However, five- year performance of the conglomerate shows that growth has been slowing, from revenue growth of 9.6 per cent in 2013 to only 4.8 per cent last year, with total $92 billion.
According to GraceKennedy, the restructuring exercise is aimed at not just improving key performance metrics, such as profit before tax and revenue growth rate, but also to streamline processes that will allow for a better work experience for employees, while fulfilling the company's obligation to remain profitable and sustainable.
“We have the privilege of being one of the region's most well-known and respected companies, and we remain very proud of our successes to date, but also have an obligation to all our stakeholders — staff, investors, shareholders, pensioners, and customers — to ensure that we remain relevant and achieve our goal of becoming a global consumer group,” Group CEO Don Wehby said.
GraceKennedy's restructuring process is being rolled out in phases and began with a review phase in early 2018. The company said it has now entered the implementation phase of the process, and at each step the company has involved team members in ongoing dialogue and this will continue.
“In this stage, some positions have been rationalised, a number of roles expanded, and a few new positions created as the company repositions itself for future growth.
“Approximately 70 persons were separated, with a number of persons redeployed across the group. Affected persons have been provided with support services in the areas of financial planning, career counselling and résumé writing, in addition to severance packages,” GraceKennedy noted.
Wehby reasoned that while change is never easy, it is necessary if GraceKennedy is to remain relevant in a changing global environment which has seen shifts in consumer behaviour, fluctuating economies, and disruptive technologies.
He highlighted strategic priorities identified for the company, to include: embedding lean management practices for increased efficiency; facilitating empowered and autonomous subsidiaries to foster entrepreneurship; maintaining strong corporate social commitments through the foundations; consistent pursuit of innovation and new growth opportunities; and fostering a customer-centric culture throughout the group.
“GraceKennedy has been a Jamaican-owned business and community icon for the last 96 years, and while we have been very successful, we realise the need to change. We are embarking on a journey that will give us a competitive advantage for the next century. This change will keep us at the forefront in the food service and financial markets around the world. We will always be guided by our core values, as we work together in building a stronger GraceKennedy,” the Group CEO said.
<< Back to news headlines >>
PM charges local authorities to expedite granting of building permits Wednesday 18th July, 2018 – Jamaican Observer
Bemoaning the unacceptable rankings of the granting of building permits by the World Bank's Ease of Doing Business Report, Prime Minister Andrew Holness has mandated municipal corporations to prioritise the issue in their discussions at the inaugural Local Governance Conference now underway in Montego Bay.
The conference, put on by the Ministry of Local Government and Community Development at the Jewel Grande Montego Bay Resort and Spa in Rose Hall, St James, from July 17-19, is staged under the theme: “Strengthening Responsiveness and Accountability within the Local Governance Framework”.
“There is one area in particular which gives me cause for great concern. And that is the area of building approvals, where starting up business, we are doing very well, we are ranked number five. Dealing with construction permits, 98. So I thought that I would take this opportunity to bring this to the attention of this august gathering of local government practitioners that we are not practising the kind of local government that signals responsiveness as it relates to permitting and approvals. At 98, I hope that it makes it at the top of your list for discussion,” the prime minister charged.
He was quick to add that he is aware that the problem does not rest solely with local government, “but we cannot allow internal territorial behaviour to slow up national progress”. Holness, therefore, made it clear that he will be taking a very serious look at the business process involved in approvals and permitting.
“The territorial nature which is amazing in that we are in one government but at times we are very territorial – that has led to the slowing up of approvals. And one thing I have to contemplate as the prime minister is how do I get the government to be more efficient. And I am absolutely committed to the process of getting government efficient,” Holness argued.
The prime minister argued that in order to expedite the process of approvals and permitting some outdated processes “that don't need to exist anymore and we will be just eliminating those off the list”.
In the meantime, Holness also noted that it has come to his attention that the employment of the Application Management and Data Analysis (AMANDA) software is not where it ought to be and should also be chief among discussions at the conference.
“We have put in place the AMANDA system. We have put in place the computers to assist it, the internet is there to support it. I am hoping that you have been training your staff to use it. But I gather that the take-up and use of it is not where it is supposed to be or could be. So I am hoping at this conference when you are discussing responsiveness and accountability that the AMANDA system is on the top of your list,” Holness argued.
“We can't spend this money to put in place a system to use a technology- supported system and then we don't use it.”
This conference, which will be held every two years, aims to raise the readiness of the political and administrative leadership in the Local Authorities to execute their roles and functions within the context of enhancing the local and national processes of economic growth and development.
Led by Minister of Local Government Minister Desmond McKenzie, representatives from agencies in the local government ministry, at least one regional mayor and local mayors are among other stakeholders in attendance at the conference.
<< Back to news headlines >>
Rice exports up by 43% - new markets open, earnings pegged at $23.2B Thursday 19th July, 2018 – Guyana Chronicle
As the Guyana Rice Development Board (GRDB) wraps up its 2018 first crop, results from January to June show an export volume increase of 87,000 tonnes as compared to the same period last year.
This was revealed by the General Manager, Nizam Hassan. “When we look at the figures compared to the first half of 2017, we saw first that the total volume that has been exported is 290,000 tonnes which is 43 per cent more than the 203,000 tonnes that was exported during the first half of 2017,” Hassan said. The increase has so far earned the country GYD$23.2Billion (US$111Million) this year against the value of the export for the first half of 2017 which was GYD$16.1Billion (US$77Million).
The general manager attributed the increase to the determination of rice producers and millers to meet production targets and more so Guyana’s access to new markets, particularly in Latin America. “We’ve seen some significant increases in some of the blocs, for example, exports to Latin America jumped by 215 percent. In the first half of 2017, we did 64,000 tonnes as against 202,000+ tonnes in the first half of 2018.”
Standing out for exports was Mexico and Cuba, taking a total of 133,000 tonnes–45,000 and 88,000– respectively. Both countries did not take during the January to June exports of 2017. Prime Minister Moses Nagamootoo facilitated access to the Mexico market. The above mentioned comes as approximately 99 per cent of the country’s rice lands cultivated having been harvested. For the first crop of 2018, approximately 508,000 tonnes of paddy have been produced, equivalent to 330,000 tonnes of rice.
<< Back to news headlines >>
WSC Faces $17m Shortfall Over ‘First World’ Upgrades Wednesday 18th July, 2018 – Tribune 242
The Water & Sewerage Corporation (WSC) is exploring “ways and means” to bridge a $17m funding shortfall on works critical to bringing its waste systems “in line with the first world”.
Adrian Gibson, pictured, the state-owned water supplier’s executive chairman, told Tribune Business there was “no doubt” that the cash- strapped Corporation will have to seek government support to finance its Wastewater Master Plan for New Providence.
He spoke out after an Inter-American Development Bank (IDB) report revealed the financing gap’s existence, warning that its original $81m to upgrade Nassau’s water and sanitation systems is insufficient to cover the total cost.
The IDB, in an evaluation of Bahamas-based projects it is financing, warned: “There are also financial risks related to the rehabilitation of sanitation infrastructure in New Providence.
“Available funds fall about $17m short of what is needed to cover the works prioritised by the Wastewater Master Plan, and new financial sources will be needed for completion. WSC also needs to further strengthen maintenance practices for all its physical assets to guarantee their long-term sustainability.”
Mr Gibson, in response, described the comprehensive overhaul of the WSC’s sanitation and wastewater treatment infrastructure as “a much- needed component” of its wider modernisation strategy.
He added that the Master Plan was undergoing an internal review by the Corporation, with Mr Gibson having previously told Tribune Business that a project to connect two-thirds of Over-the-Hill residential dwellings to a centralised sewerage system will cost it almost $75 million alone.
“We are reviewing that plan, and we’re also reviewing ways and means to fund it,” Mr Gibson said of the Wastewater Master Plan and funding shortfall. “No doubt we’ll be approaching government with respect to funding and/or getting a loan.
“This is a much-needed component of the plan. This would modernise Water & Sewerage Corporation’s waste water treatment in the country. It would put us in line with the first world, upgrading sewerage, waste water and their treatment.”
Much of the WSC’s existing wastewater treatment infrastructure is in a state of decay and disrepair, with just 13 per cent of households in New Providence and Abaco serviced by it.
“According to WSC, sewer coverage has remained steady at 13 percent since 2011, with 16 percent of coverage in New Providence and 4 percent in Abaco,” the IDB report revealed.
Mr Gibson, meanwhile, suggested that the long-awaited overhaul of the water sector’s legal and regulatory regime may transfer oversight responsibilities to a newly-created environmental agency rather than the Utilities Regulation and Competition Authority (URCA) as originally planned.
The WSC executive chairman said it had sought input on draft legislation from UK water suppliers and regulators when the Corporation’s senior Board members and executives visited recently, and the example set by other Caribbean nations will also be considered.
“We have some draft legislation we are reviewing and likely revamping,” Mr Gibson told Tribune Business. “We’ve been getting assistance from international partners. We took the draft with us and showed it to different environmental agencies in the UK, leaving it with various companies who will be making recommendations to us.
“We are going to go to Jamaica and St Lucia to review the systems there and see what parts of their legislation and best practices we can adopt.”
He added that it was imperative that the Bahamas move away from the current water industry regulatory model, where the Government - through the WSC - plays the role of regulator, operator and provider via one entity.
“We want to move away from being regulator and provider,” Mr Gibson told Tribune Business. “It’s either going to be URCA or a new environmental agency; one or the other. Either URCA develops that arm and it’s regulated under URCA, or we create a new environmental agency.”
He pointed to the example of the UK, where the water industry has its own regulator, Ofwat, along with environmental overseers. Each utility has its own regulator, and Mr Gibson added: “Some countries put it under one umbrella, others divide it into departments.
“We’ll certainly be moving in that direction. That’s the way of the first world. You don’t want to regulate yourself and, at the same time, be provider.”
Draft legislation to revamp the water industry’s regulatory structure has been contemplated as part of the IDB-financed project since 2011 but is now into its third administration with little sign of it coming forward on to the Parliamentary agenda.
The IDB expressed concern that regulatory reform could be “completely abandoned” once its loan project closes, even though this was vital to the sector’s “long-term sustainability”.
“Legislation reform is key to ensuring the long-term sustainability of interventions in the sector,” the IDB warned. “As the legislation prepared under the project has yet to be approved by Parliament, there is a risk that - considering the time elapsed since its preparation - it will need to be updated or, more important, that this effort will be completely abandoned after the project’s closure.
“The country’s legal framework does not define an independent entity for economic and environmental regulation of the water and sewerage sector. In the absence of an independent regulator, WSC makes decisions more on a political than a commercial basis.
“The WSC is assigned regulatory functions for service provision and water resources, but these functions exceed its capacity. Tariffs are not linked to WSC’s financial sustainability. Because there are no rules for groundwater abstraction, the sustainability of groundwater resources is threatened.”
The IDB report referred to “political challenges”, with the former Christie administration said to have been unwilling to increase WSC’s consumer tariffs and restructure the Corporation - elements that also delayed legislative reform.
“The legislation developed under the bank’s programme, including the establishment of the needed economic and environmental regulators, has been presented to the Cabinet but is not yet approved,” the IDB added.
“Lack of stakeholder commitment and ownership, particularly related to the strengthening of the legal and regulatory framework in the sector, was recognised as an important risk... This risk materialised during project implementation, as the changed priorities of the new administration and unwillingness to implement new tariff structures and restructure the WSC led to delays in Parliament’s approval of new legislation for the sector.
“Despite the implementation of mitigating measures, and IDB’s continued engagement with the Government and key stakeholders, political realities in the country proved a challenge.”
<< Back to news headlines >>
WTO Push Poultry Farmers to Eye Product Diversification Wednesday 18th July, 2018 – Tribune 242
An Abaco poultry producer yesterday said "uncertainty" surrounding the World Trade Organisation (WTO) accession has forced it to explore diversification, adding: "You don't know what field you're playing on."
Underscoring fears among local producers and manufacturers about the potential impact full WTO membership may have on their industries, Lance Pinder, Abaco Big Bird Farm's operations manager, told Tribune Business: "We have a big concern about WTO, obviously. We don't know how that will impact sales, but it's safe to assume there will be an impact.
"Our chicken is a premium product, and people may go for the cheapest thing. Right now there is so much uncertainty. We've been battling with imported chicken for a long time, and it's going to be even harder going forward. Everyone is concerned about it and what the government is going to negotiate to help us out going forward.
"You don't know what field you're playing on. It's really hard to invest any money right now or do any expansion with uncertainty. Uncertainty is bad for business."
As reported previously by Tribune Business, many Bahamian businesses fear they are unable to advise the Government on where to set the WTO "red lines" because they lack the necessary industry-specific analyses to determine the impact of membership and what the economy will look like post-accession.
Mr Pinder told Tribune Business: "We're seriously trying to diversify right now. We're looking to do a lot of different things to help mitigate any fall-out. Obviously, we have our avocados and limes apart from chicken. We're looking to do more processing, some pre-cooked options and that sort of thing."
He added that the company has been "hanging in there", aided by a strong tourist season on Abaco. "The locals here support us, and so we know when the resorts are doing well because they buy a lot of our chicken," Mr Pinder said.
"Sales on Abaco have been good. Nassau has been bit sluggish. We're only running at about 70 per cent capacity right now. A lot of costs have gone up. Fuel prices have gone up. There has been a big spike in corn and soy bean prices right now. The cost on paper products for packaging have also gone up in the last six months."
<< Back to news headlines >>
Chamber Facilitates Tax Reform Meetings Wednesday 18th July, 2018 – Tribune 242
The Chamber of Commerce's chief executive yesterday said the private sector will continue to discuss tax reform options with the Government even as it adjusts to the VAT rate increase.
Edison Sumner told Tribune Business that the private sector body was assisting the Deloitte and Touche accounting firm in its study of tax alternatives by facilitating meetings with the private sector on the possibility of introducing a corporate tax.
"This week the Deloitte consultants are in town again, having consultations with a number of private sector industry organisations and businesses on the idea of implementing corporate tax as opposed to, or as an alternative to, the Business License fees," Mr Sumner said.
"The Chamber is assisting them in facilitating those meetings that commenced today and will be running through Friday. It is giving the business community an opportunity to have a direct discussion with the consultant who would be advising the Government on the next tax strategy."
Mr Sumner added that many businesses are still working to get their systems in place relative to the VAT increase from 7.5 per cent to 12 per cent. "Some of them are still working to get their systems in place," he said. "As you know, the Government gave many of the retailers an extension until August to get their systems in place.
"That process is still ongoing for a number of businesses. Some are adjusting to the new environment, although it is still a challenge with the rate increase. We've concluded that it is what it is now. We will continue working with the system until such time we have an opportunity to make any further amendments to it. That is a discussion we will be having with the government on a continuous basis to see what other means of taxation can be considered."
<< Back to news headlines >>
Government making moves to implement $500 initiative Wednesday 18th July, 2018 – SKN Vibes
THREE years after being elected and making a promise, the Team Unity government is now moving forward with the initiative to give $500 per month to households making less than $3000 per month.
From August 1-15 the government will begin the process through a period of registration at various community centres around the island.
Prime Minister, Dr. Timothy Harris made the disclosure yesterday (Jul. 17), during the latest of his monthly press conferences.
“Enumerators will be present at each of the community centres on St. Kitts, to help fill questionnaires that need to be completed for each household as a first step in the process,” said Dr. Harris.
The $500 per month initiative was a major promise made by the government during the run-up to the last general elections, and many people expected the Harris-led Team Unity Administration to implement that initiative as one of their priorities.
But the government urged patience since a number of agencies were working together to have the structure of the programme be completed before it is rolled out.
Dr. Harris explained that the data from the questionnaires will then be verified and analysed “to ensure that only suitably qualified persons benefit, and there is no abuse”.
The government identified thirteen community centres where the enumeration process will be carried out, and according to Dr. Harris, where centres are unsuited for the task alternative venues will be provided.
<< Back to news headlines >>
Sunrise Airways new non-stop flights Santo-Domingo - Curacao Wednesday 18th July, 2018 – Haiti Libre
The private Haitian airline Sunrise Airways based in Port-au-Prince, whose head office is located in Haiti announced Monday, July 16, that nonstop flights are made from Santo Domingo to Curaçao, from the international airports "La Isabela" and "Las Americas", in the Dominican Republic Rates.
The airline operates regularly on the Dominican market with direct flights to Haiti and links to Curacao and Cuba. And flights from Port-au-Prince to Curacao.
Sunrise Airways has two passenger classes: economy and business, the latter only applicable to flights to Curacao. Baggage allowance varies by destination. For flights to Haiti, Sunrise Airways passengers are entitled to a suitcase of 50 pounds (22.6 kg) in the hold and 11 pounds (5 kg) in the cabin. While for Curaçao they can carry two suitcases of 50 pounds each in hold and one of 22 pounds (10kg) in cabin.
<< Back to news headlines >>
St Vincent joins with Venezuela in opposition to OAS resolution condemning violence in Nicaragua Wednesday 18th July, 2018 – Caribbean News Now
The Organization of American States (OAS) on Wednesday condemned the acts of violence in Nicaragua, called on all parts to participate “actively and in good faith” in a national dialogue and urged the government “to support an electoral calendar,” in a resolution approved by the Permanent Council with 21 votes in favour.
The resolution was approved with 21 votes in favour (Colombia, Costa Rica, Ecuador, United States, Guatemala, Guyana, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Dominican Republic, Saint Lucia, Uruguay, Antigua and Barbuda, Argentina, The Bahamas, Brazil, Canada, Chile), three against (Nicaragua, St Vincent and the Grenadines, Venezuela), seven abstentions (El Salvador, Grenada, Haiti, Suriname, Trinidad and Tobago, Barbados, Belize) and three absences (Dominica, St Kitts and Nevis, Bolivia).
During the same meeting, the Permanent Council rejected a proposed resolution presented by Nicaragua. The text received three votes in favour (Nicaragua, St Vincent and the Grenadines, and Venezuela), and 20 against. Among other things, the draft resolution presented by Nicaragua called on the OAS to “condemn … coup-mongering opposition groups”. On the other hand, the resolution approved by the Permanent Council specifically condemned “the attacks on clergy, the harassment of Roman Catholic bishops engaged in the National Dialogue process, the acts of violence at the National Autonomous University of Nicaragua (UNAN), the headquarters of CARITAS, and other peaceful protesters.”
The document also urged the government of Nicaragua and all other actors “to participate actively and in good faith in the national dialogue as a mechanism to generate peaceful and sustainable solutions to the situation unfolding in Nicaragua, and for the strengthening of democracy in that country.”
Moreover, the resolution calls on the government of Nicaragua “to support an electoral calendar jointly agreed to in the context of the national dialogue process.”
Meanwhile, bipartisan legislation was introduced in the US Congress on Wednesday to address the escalating crisis in Nicaragua.
The legislation would require President Donald Trump to impose sanctions on any Nicaraguan government official responsible for the recent violence against protestors, human rights violations and acts of corruption. It also calls on the Nicaraguan government to enter into negotiations for a political solution to the country’s ongoing crisis and commit to holding early elections.
“Ortega and his thugs must be held accountable for the abuse and murder of Nicaraguans exercising their fundamental rights,” Senator Bill Nelson (D-Fla) said. “This bill makes clear that the United States supports the Nicaraguan people. And it shows the Ortega regime that the international community will not tolerate the steady erosion of democracy and freedom in Nicaragua.”
The bill would also require the Secretary of State to certify annually whether the Nicaraguan government is taking steps to uphold democratic governance, human rights and anticorruption standards. Failure to uphold those standards, under the bill, would result in the imposition of additional sanctions.
Sanctions authorized under the bill include, among other things, the freezing of government officials’ assets, as well as expelling them from, or barring them entry into, the United States.
<< Back to news headlines >>
interCaribbean opens up flight options for the Caribbean Wednesday 18th July, 2018 – Caribbean News Now interCaribbean Airways is introducing new routes from Santo Domingo (Dominican Republic) to Aruba, Curacao, and Kingston (Jamaica). The services will be in addition to its nonstop services to Tortola (BVI), St Maarten, and Providenciales in the Turks and Caicos Islands (TCI). The new destinations of Aruba and Curacao will also serve as new routes for the British Virgin Islands with connections from Tortola via Santo Domingo.
Direct flights from Tortola, interCaribbean’s second hub, include services to San Juan, Antigua, St Maarten, Santo Domingo, Dominica, St Lucia, and Providenciales with connections to Kingston (Jamaica) and Nassau (Bahamas). Service commencement to the new destinations will be confirmed soon.
The TCI based airline, which connects 22 destinations and 14 countries in the Caribbean, will also be adding a larger aircraft to its fleet increasing its passenger and nonstop and direct flight capacity. The addition of routes and aircraft will continue to open up and facilitate travel around the region.
The announcement was made by interCaribbean’s chairman and founder, Lyndon Gardiner, and the airline’s CEO and executive director, Trevor Sadler at a recent launch event hosted in Santo Domingo.
In his presentation to stake holders in the Dominican Republic tourism and business sector and Caribbean tourism representatives from countries served by the airline, Sadler drew attention to the full potential of the region not just as a tourist destination but as an important commercial and business market.
“At interCaribbean Airways, we know that the Dominican Republic currently leads the region as an economic engine and as a strategic commercial and business point. Our intention is to facilitate the opportunity through the introduction of these new routes,” he said.
Sadler spoke about the overall benefits of interCaribbean’s nonstop flights from Santo Domingo to the six destinations and the onward connection to San Juan, Puerto Rico via Tortola. He also highlighted the importance of the routes that connect the DR and the Turks and Caicos Islands with the flights from Santiago, Puerto Plata and Santo Domingo.
“interCaribbean has a long-standing history and relationship with the Dominican Republic and we consider it a privilege to be serving the Dominican community, not only as a way to enjoy tourism elsewhere in the Caribbean, but also by being able to connect all Dominicans who live throughout the Caribbean,” Sadler said.
The company also plans to increase the number of passengers transported per year by more than 300,000 and aspires to continue its expansion in the region with the addition of an Embraer 145 jet. The 50- seater ERJ145 will soon join the airline’s fleet of Twin Otter and Embraer 120 aircraft to serve more cities in the Caribbean with greater efficiency.
“There is no doubt that each Caribbean island has its unique charm, and each place has an exclusive list of things to do and a variety of options which will continue to attract more and more visitors. We aim to be the airline to connect passengers with their chosen destination,” Sadler said. interCaribbean which has been connecting the Caribbean for 26 years, has also been working towards adding two countries to the destinations already served by the airline and said it will announce the new additions in due course.
<< Back to news headlines >>
China MOU Wednesday 18th July, 2018 – Barbados Today
Medical professionals at the Queen Elizabeth Hospital (QEH) will have further opportunities to develop their skills in vascular and orthopaedic surgery and other specialized areas through collaboration with the Chongqing Medical University, one of the leading medical training facilities in China.
The two organizations signed a memorandum of understanding (MOU) this afternoon at the QEH, continuing a relationship that began in late 2016 when the first team of surgeons, nurses and physicians from Chongqing began a six-month stint here.
“The initial MOU was aimed at securing expertise and medical support for a number of areas at the QEH that were undermanned, and the first team had three surgeons, three nurses and two physicians. They only stayed for six months, but the second team, which comprised two vascular and orthopaedic surgeons, three physicians, who specialized in nuclear medicine, anaesthesia and amputation and three nurses assigned to critical care and nephrology, stayed for a full year, and their tour of duty ended last month, Director of Health Planning in the Ministry of Health Danny Gill said.
“However, one physician and two surgeons were granted extensions until July 31 to assist their colleagues who are due to come in from July 24, and they will provide medical care to Barbadians awaiting orthopaedic and vascular surgery,” he added.
He said China had also made two generous donations of medical equipment and consumables, including two anaesthetic machines with a combined value of US$400,000.
Barbadian medical professionals have also been benefitting from exposure to their counterparts in China, with having gone to Chonqing for specialized training in laparoscopic surgery, breast surgery and other areas, QEH’s Director of Medical Services Anthony Harris told today’s signing ceremony.
Harris said he was pleased with the work the Chinese specialists had done in Barbados over the past two years.
“They integrated themselves very well into our way of life in the hospital and Barbados, and in the last couple of weeks we have had reports from the heads of departments to which they were attached and everyone has been happy with their performance.”
Meanwhile, Economic and Commercial Counsellor with the Chinese Embassy here Qu Ying, said: “We are glad to facilitate another first in the cooperation between Barbados and China, as this is the first time China has despatched a medical team to Barbados distributing free medical care, and I believe this operation will take the relationship between our two countries to another level.”
<< Back to news headlines >>
PM: Bank talks a must Thursday 19th July, 2018 – Nation News
Prime Minister Mia Mottley is to hold talks with the country’s banking sector on a wide range of issues of national concern.
Speaking last night at the reopening of the Warrens Great House which has been renovated by CIBC First Caribbean International Bank, Mottley told the audience that such a discussion was paramount as Barbados treaded the choppy waters within its debt restructuring efforts.
“We both know we are not here by choice,” she said in reference to the country’s ballooning debt. “We will withstand difficulties and come out stronger for it. I look forward to our respective teams working together for a solution that would be of benefit to your institution and shareholders, and the people of Barbados.”
She said the national conversation would help both sides confront issues such as de-risking, and delinquency by some Barbadians, who, because of the serious economic situation they faced over the last decade, were unable to pay their mortgages and lost their homes in the process.
<< Back to news headlines >>
Moves to increase Panama flights to 4 Thursday 19th July, 2018 – Nation News
Government is already looking to expand the arrangement with Copa Airlines to capitalise on the Latin and South American markets, as well as more destinations in the United States.
With the ink barely dry on the direct flights arrangement from Panama that was inaugurated on Tuesday, Minister of Tourism and International Transport Kerrie Symmonds said Barbados was in talks with Copa’s management to move from twice weekly flights to four in the near future, as the load factor for the next few months was in excess of 90 per cent, both ways.
He was speaking in an interview at the Panama Hilton, Panama City, on the eve of the historic Flight CM 260 to Barbados, which was captained by Barbadian Marc Holford, and returned home by his countryman Captain Chetwyn Clarke.
“Copa is interested in having an entity like Barbados work with them towards moving people from the Eastern Caribbean, because there is a lot of heritage linkage. St Lucia, St Vincent, Dominica, all would have had people who went to the Panama Canal and worked there, and also in terms of business traffic.”
<< Back to news headlines >>
Stock futures drop on disappointing earnings, trade tensions Thursday 19th July, 2018 – Reuters
Disappointing earnings from eBay and American Express pushed U.S. stock index futures lower on Thursday, while trade tensions rose on news the European Union is preparing to retaliate if United States slaps tariffs on EU cars.
EU Trade Commissioner Cecilia Malmstrom said she hopes a mission to Washington will ease the trade dispute that started after the U.S. imposed tariffs on EU steel and aluminium on June 1, with President Donald Trump threatening to extend them to cars and car parts.
Concerns about the impact of tariffs have been rising among manufacturers in every one of the Federal Reserve’s 12 districts, a central bank report released on Wednesday showed.
Shares of AmEx (AXP.N) fell 2.7 percent in thin premarket trading after the credit card company said expenses rose due to higher spending on its rewards program.
EBay (EBAY.O) tumbled 6.9 percent after the e-commerce retailer reported underwhelming results and forecast.
So far, earnings at S&P 500 companies have mostly been encouraging. Of the 48 companies that have reported, 87.5 percent have topped analysts’ expectations, according to Thomson Reuters I/B/E/S.
Solid earnings from major financial and industrial companies on Wednesday sent the benchmark index to its highest in more than five months, while the Dow Jones Industrial Average climbed for a fifth session.
At 7:16 a.m. ET, Dow e-minis 1YMc1 were down 61 points, or 0.24 percent. S&P 500 e-minis ESc1 were down 7.25 points, or 0.26 percent and Nasdaq 100 e-minis NQc1 were down 24 points, or 0.32 percent.
Lower crude oil prices also weighed on the markets. Prices fell after official data showed an unexpected rise in U.S. crude stockpiles, U.S. output hit a record high and major oil exporters increased production. [O/R]
Among other stocks, IBM (IBM.N) rose 2.8 percent after its results topped estimates due to growth in its higher-margin businesses including cybersecurity and cloud computing.
Cisco (CSCO.O) rose 1.9 percent on a report that Amazon was not targeting the networking market.
Economic data in tap includes the Labour Department jobless claims report at 8:30 a.m. ET that will likely show initial claims rose to 220,000 last week, from 214,000 in the week before.
<< Back to news headlines >>
U.S. weekly jobless claims drop to more than 48-and-a-half-year low Thursday 19th July, 2018 – Reuters
The number of Americans filing for unemployment benefits unexpectedly fell last week, hitting its lowest level in more than 48-1/2 years, as the labour market continues to strengthen.
Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended July 14, the lowest reading since early December 1969, the Labour Department said on Thursday. Claims data for the prior week was revised to show 1,000 more applications received than previously reported.
Economists polled by Reuters had forecast claims rising to 220,000 in the latest week.
The second straight weekly decline in claims, however, likely reflects difficulties adjusting the data for seasonal fluctuations around this time of the year when motor vehicle manufacturers shut assembly lines for annual retooling.
With manufacturers undertaking the retooling exercise at different times in July, this can throw off the model that the government uses to the smooth the claims data for seasonal variations.
The Labour Department said only claims for Maine were estimated last week.
The four-week moving average of initial claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 2,750 to 220,500 last week.
The claims data covered the survey week for the nonfarm payrolls component of July’s employment report. The four-week average of claims dipped 500 between the June and July survey periods, suggesting solid job growth this month.
The economy created 213,000 jobs in June, with the unemployment rate rising two-tenths of a percentage point to 4.0 percent as more Americans entered the labour force, in a sign of confidence in their job prospects.
Federal Reserve Chairman Jerome Powell told lawmakers this week that with appropriate monetary policy, the job market will remain strong “over the next several years.” (Full Story)
Employment gains averaged 215,000 jobs per month in the first half of this year. The labour market is viewed as being near or at full employment. There were 6.6 million unfilled jobs in May, an indication that companies cannot find qualified workers.
That was reinforced by the Fed’s Beige Book report on Wednesday showing worker shortages persisting in early July.
The U.S. central bank said the scarcity of workers was across a wide range of occupations, including highly skilled engineers, specialized construction and manufacturing workers, information technology professionals and truck drivers.
The Labour Department’s claims report also showed the number of people receiving benefits after an initial week of aid increased 8,000 to 1.75 million in the week ended July 7.
The four-week moving average of the so-called continuing claims rose 6,250 to 1.74 million.
<< Back to news headlines >>
China boosts liquidity, set for more policy easing as trade war threatens economy Thursday 19th July, 2018 – Reuters
Chinese policymakers are pumping more liquidity into the financial system and channelling credit to small and medium-sized firms, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war.
The world’s second-biggest economy has already started to lose momentum this year as a government campaign to reduce a dangerous build-up of debt has lifted borrowing costs, hitting factory output, business investment and the property sector.
As an intensifying trade conflict raises risks to exporters and overall growth, many economists expect the central bank to further reduce reserve requirements in the coming months - on top of the three reductions made so far this year.
However, few see a cut in the benchmark policy rate this year, as authorities walk a fine line between keeping liquidity conditions supportive and preventing any destabilizing capital outflows that could put the skids on a fragile yuan currency.
On Wednesday, a source with direct knowledge of the matter said the People’s Bank of China (PBOC) plans to introduce incentives that will boost the liquidity of commercial banks. These are aimed at encouraging banks to expand lending and increase their investment in bonds issued by corporates and other entities, such as local government financing vehicles (LGFVs).
The PBOC has also been ensuring ample liquidity by allowing commercial banks to tap its Medium-Term Loan Facility (MLF), especially lenders that have invested in bonds rated AA+ and below, the source said.
The improved cash conditions have been reflected in reduced short-term borrowing costs for banks, with the country’s key seven-day money rate at 2.6409 percent on Thursday, 37 basis points lower than recent highs at the end of June.
The combination of lower interbank rates and the push to boost bank support should help to ease financing pressures for weaker firms, analysts said.
“This should spell good news for lower-grade bond markets which have been suffering from a flight to quality-grade bonds, and some firms have subsequently found access to liquidity difficult,” analysts at Everbright Sun Hung Kai said in a note.
The PBOC uses the MLF and its standing lending facility as tools to manage short- and medium-term liquidity in the banking system.
“These moves, if confirmed, are a sign that the government is stepping up its loosening measures given the weakness in May and June TSF (total social financing) data, lukewarm June activity data, weak asset market performance, and rising trade tensions,” Goldman Sachs analysts said in a note Thursday, referring to the new incentives.
“We expect the government to take further measures to ensure growth stability, including further RRR cuts.”
China’s economy expanded a slower-than-expected 6.7 percent in the second quarter, and June factory output growth weakened to a two-year low as the trade dispute with the United States intensified.
HELP FOR SMEs
To be sure, markets don’t expect aggressive policy loosening, given Beijing’s broad deleveraging pledge and fears that doing so could hit the yuan and trigger a spike in capital outflows.
Trade war worries have already weighed on the yuan, which hit a one- year low on Thursday.
A key focus is on small and medium-sized enterprises (SMEs), which account for 80 percent of all jobs in China, and have suffered from rising borrowing costs and a shrinking credit pool amid Beijing’s three-year-long crackdown on off-balance sheet financing and a corporate debt build- up.
A trader at a state-run copper smelter in southern China told Reuters his firm has resorted to selling inventory to raise cash in light of the tougher financing conditions.
“Banks give [loans], but the cost has gone up,” said the trader, who declined to be identified as he was not authorized to comment on his firm’s finances.
While the PBOC did not respond to faxed questions about its plans, a Shanghai-based trader at an Asian bank said the bond market had seen a notable pick-up in the volume of trade of LGFV debt.
The heavy liabilities of local governments has been an area of concern as Beijing continues its campaign to reduce excessive financial leverage. Trade in private firms’ corporate bonds, where defaults have spiked this year, did not see a similar jump.
But the trader said even if the PBOC had directed commercial banks to invest in such bonds, it would be too early to see an impact.
“This will need some time ... banks need to have credit lines with the companies whose bonds they are buying.”
<< Back to news headlines >>
Sterling dives to 10-month low below $1.30, more weakness seen Thursday 19th July, 2018 – Reuters
Sterling fell below $1.30 for the first time in 10 months on Thursday as the combination of weak economic data and a resurgent dollar sapped appetite for the British currency.
Weak retail sales data for June painted a picture of a struggling economy against the backdrop of stagnating wage growth, weak inflation figures and uncertainty over how Britain’s looming exit from the European Union will play out.
That is casting a shadow on well-set expectations of an interest rate rise by the Bank of England at its Aug. 2 meeting.
The lacklustre data comes moreover at a time when the dollar has rallied more than 6 percent against a basket of developed G10 nations’ currencies in the last three months. Escalating trade tensions, robust U.S. economic growth and a confident Federal Reserve have all boosted the greenback’s appeal.
“With fundamentals weak and a big question mark on Brexit, we think sterling can fall into the low $1.20s,” said Neil Mellor, senior currency strategist at BNY Mellon in London.
Britain’s June retail sales declined 0.5 percent, defying expectations of a 0.2 percent increase on a monthly basis. That saw sterling extending recent falls, touching an early-September 2017 low of $1.2974 and down 0.7 percent on the day.
That is despite the fact that on a quarterly basis, retail sales rose the most in over a decade, up 2.1 percent on the first three months of 2018.
Many reckon this should give the BOE some confidence about raising interest rates next month — bets on a hike remain fairly entrenched, with expectations for a 25-basis point rise now at around 70 percent.
That’s down from nearly 80 percent earlier this week.
“The data is not that great but we still expect the Bank of England to raise rates in August in the backdrop of a tight labour market and may signal an extended pause after that,” Credit Agricole strategist Manuel Oliveri said.
The weakening economy, messy politics and the ebbing of rate hike bets beyond August have already crushed bullish sterling bets, with short bets against the British currency the biggest since September 2017.
That marks a stunning reversal from April when long sterling bets peaked at more than three-year highs. Sterling was then around $1.43, dropping almost 10 percent since then.
BREXIT AND BEARS
Most of sterling’s losses have come in recent weeks as Brexit uncertainty has grown.
After narrowly escaping defeat in parliament over her plans for leaving the EU this week, Prime Minister Theresa May has signalled she will not drop a proposal on Britain’s future relationship with the bloc.
Fears linger that the country may crash out of the EU without a trade deal in place.
“Around 1.30, sterling is nowhere near to being fully priced for a worst- case political scenario, but participation in the pound is unlikely to climb much until that worst-case scenario looks a lot more certain,” said Stephen Gallo, European head of FX strategy at BMO Financial Group.
However, the British currency’s performance looks better when measured against non-dollar currencies, suggesting much of its weakness is down to the broad-based dollar surge.
Against the euro for instance, sterling is only at a four-month low of 89.30 pence.
On a year-to-date basis, sterling is a middle-of-the-pack performer against the dollar with the Swedish crown and the Canadian dollar leading losers, according to Thomson Reuters data.
And against a trade-weighted basket of its peers, for example, sterling is at a late-November 2017 low.
However, currency derivative markets are flashing warning lights.
Three- and one-month risk reversals, a ratio of calls to put options, are trading at their lowest since June 2017, indicating traders are betting on more weakness.
<< Back to news headlines >>
Dollar stays strong as China grabs for stimulus levers Thursday 19th July, 2018 – Reuters
The dollar stayed strong but stocks wobbled and metal markets buckled badly on Thursday, as signs that China was resorting to credit-fuelled stimulus again helped drive its currency to a one-year low.
Asian shares had struggled following the moves and Europe’s bourses were mostly in the red as traders banked some of the recent gains that had hoisted the STOXX 600, DAX and France’s CAC40 to 1-month highs. [.EU]
Wall Street was expected to ease off a 5-month high [.N], while Britain’s Brexit-bruised pound was below $1.30 for the first time in ten months, as mixed retail figures added to constant political turmoil and Wednesday’s weak inflation data.
The yen at 113 per dollar, euro at $1.16 and most other European currencies were all weaker too. Instead of politics, though, they fell because they could not fend off another advance by the dollar which is now near a 1-year high on an aggregate basis. [FRX/]
“Sentiment right now is still very much in favour of buying the dollar,” said Crédit Agricole FX strategist Manuel Oliveri.
“It is positively correlated with risk appetite and risk appetite remains supported by the U.S. earnings season and there is a very strong notion among clients that there is further room for improvement.”
That appetite had got its latest boost as S&P 500 rose to its highest in more than five months on Wednesday, the Dow Jones climbed for a fifth session and the ‘FANGs’ group of big tech giants hit fresh all-time highs. [.N]
Ongoing trade jitters and developments in China however meant Asia had been a different picture.
China’s central bank plans to incentivise banks to expand lending to companies, a source with direct knowledge of the matter said, a proposal that points to another shot of stimulus.
China’s foreign-exchange regulator meanwhile said it would keep currency markets stable amid intensifying trade frictions with the United States.
The worries had pummelled the yuan to a one-year low of 6.7800 per dollar and 6.7427 in offshore and onshore trade. [.SS]
The technology-heavy Shenzhen Composite stocks index shed 1.0 percent and Shanghai Composite index fell 0.6 percent to head back towards a 1-1/2-year low it had set earlier this month. [.SS]
“Market players are looking at both the onshore and offshore exchange rate to determine whether or not the People’s Bank of China is intentionally allowing a weaker yuan,” said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.
“If the difference between the two markets becomes too big, that could mean the PBOC is intervening in the market.”
She noted that although the spread between offshore and onshore yuan had widened recently, it was still far from the levels it hit during the Chinese financial market shock in 2015 when the central bank was seen intervening heavily.
METALS MELT
Metals markets were also in the firing line again. China is the world’s biggest consumer of most industrial metals so worries about its economy can have a serious impact.
Copper and nickel were both down over 2 percent on London’s metal exchange, while zinc was down more than 3 percent and lead shed 2.5 percent. [MET/L]
Oil and gold also dropped again. Gold hit another one-year low of $1,215 per ounce, while Brent and WTI U.S. crude futures were down 80 and 53 cents at $72.10 and $68.20 a barrel respectively.
Brent has fallen almost 9 percent from last week’s high above $79 on emerging evidence of higher production from Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries as well as Russia and the United States.
“The outlook remains negative,” said Robin Bieber, technical analyst at London brokerage PVM Oil Associates.
In the fixed income markets the expectation that the United States will continued to raise interest rates this year lifted its 2-year bond yields, which move inverse to the bond’s price, to a new decade high. [/US]
Italy’s short-dated yields meanwhile tumbled to a one-month low with traders citing reports that the country’s new prime minister has said that its euro membership was irreversible. That helped dampen worries caused anti-euro rhetoric during its recent election campaign. [GVD/EUR]
<< Back to news headlines >>
Earnings disappointments pull European stocks back from month highs Thursday 19th July, 2018 – Reuters
A rally in European stocks fizzled out on Thursday as poor results drove down advertising agency Publicis and a slide in metals prices dragged on the market.
As the earnings season got into full swing, the pan-European STOXX 600 fell 0.2 percent, down from the one-month high it reached in the previous session, as investors focused on a mixed bag of company results.
France’s Publicis shares tumbled 7 percent after an unexpected drop in second-quarter sales caused by underperformance at its U.S. healthcare communications business.
“While operating margin was significantly ahead of expectations, the focus will be on the weaker revenue numbers, especially as [U.S. advertising agency] Omnicom earlier this week also underperformed expectations,” wrote Liberum analysts.
Publicis took British rival WPP down 3.8 percent along with it, and the media sector fell 0.9 percent.
Europe’s biggest tech stock, business software provider SAP, pared losses after a decline at the open, trading down just 0.7 percent by 0825 GMT. Its second-quarter results showed weaker-than-expected licenses growth, though it raised its outlook.
“Investors will weigh lower-than-expected licence growth and muted underlying margin expansion against continued momentum in cloud,” said Goldman Sachs analysts.
Basic resources stocks dragged, down 1.5 percent and near a three- month low, as metals prices resumed their selloff after a brief respite.
Overall, investors are optimistic going into the European earnings season, which is expected to deliver stronger growth than the first quarter.
“Earnings globally are still coming in on average higher than expectations,” said Christopher Peel, chief investment officer at Tavistock Wealth. “I don’t see anything going to stop it unless the trade tariff spat escalates and starts to bite.”
Topping the STOXX was wet snuff and cigar maker Swedish Match, up 9.4 percent after second-quarter profit and margins beat the company’s own expectations.
Also among winners, French telecoms firm Iliad was boosted 7.5 percent by news the company had reached 1 million subscribers in Italy and would extend its low-cost offer.
Strong results drove industrials stocks higher. Swiss engineering firm ABB climbed 4.7 percent after its second-quarter profit topped estimates. Swedish industrial machinery supplier SKF gained 1.8 percent.
Finnish ship technology and power-plant maker Wartsila was the exception: its shares fell 5.1 percent after it reported smaller-than- expected quarterly profit, citing delivery timings.
Lock maker Dormakaba sank 16.4 percent, set for its worst day in 16 years, after a profit warning and postponement of mid-term targets by two years.
“The current share price levels probably imply stable to only slightly improving EBITDA margins and that dormakaba is unlikely to be able to outgrow GDP,” wrote Baader Helvea analysts.
Bank stocks supported the index as Sweden’s Nordea rose after results and Spain’s Sabadell gained from a real estate deal.
<< Back to news headlines >>
Nikkei snaps 4-day winning streak; weak cosmetics cos offset oil, machinery stocks Thursday 19th July, 2018 – Reuters
Japan’s Nikkei share average snapped a four-day winning streak in choppy trade on Thursday as investors took profits, with weakness in inbound-tourism related stocks offsetting gains in oil names and machinery makers.
The Nikkei’s early gains evaporated in the afternoon, closing trade 0.1 percent lower at 22,764.68. It was the first drop in five days, after reaching 22,949.32 on Wednesday - the highest level since June 13.
“The Nikkei’s level of 23,000 has become its immediate resistance, and when the index nears this level, profit-taking occurs,” said Yutaka Miura, a senior technical analyst at Mizuho Securities.
The broader Topix dropped 0.1 percent to 1,749.59.
Inbound-tourism related stocks such as cosmetics makers and baby goods makers that were performing strongly recently lost ground. Traders said long-term investors such as pension fund managers were looking to lock-in profits from the recent gainers, while they also bought back recently-battered machinery stocks hit by China’s economic slowdown.
Shiseido Co tumbled 4.8 percent, Fancl Corp nosedived 9.3 percent, while Kose Corp stumbled 7.1 percent. Baby bottle maker Pigeon Corp slumped 5.2 percent.
Machinery stocks, which were under pressure recently on worries about slowing China demand, rebounded.
Makino Milling Machine rose 2.6 percent, Okuma and Yaskawa Electric each added 2.4 percent.
Oil shares jumped after the Nikkei business daily reported that Japanese oil distributors are preparing to suspend imports of Iranian crude oil in line with U.S. demands, stoking speculation the move would lift procurement costs and bump up oil prices.
Idemitsu Kosan jumped 3.1 percent, Showa Shell rallied 3.8 percent and Cosmo Energy advanced 4.0 percent. Inpex rose 3.3 percent.
<< Back to news headlines >>
Scotia shares advance to $65.10 Thursday 19th July, 2018 – Trinidad and Tobago Guardian
Overall market activity resulted from trading in 11 securities of which six advanced, four declined and one traded firm.
Trading activity on the First Tier Market registered a volume of 72,532 shares crossing the floor of the Exchange valued at $2,014,776. Agostini’s Limited was the volume leader with 61,500 shares changing hands for a value of $1,298,265, followed by Scotiabank T&T Limited with a volume of 4,251 shares being traded for $276,737.60. Republic Financial Holdings Limited contributed 3,266 shares with a value of $335,726.59, while Calypso Macro Index Fund added 1,052 shares valued at $18,306.80.
Scotiabank T&T Limited registered the day’s largest gain, increasing $0.05 to end the day at $65.10. Conversely, The West Indian Tobacco Company Limited registered the day’s largest decline, falling $0.22 to close at $87.
On the Mutual Fund Market 25,917 shares changed hands for a value of $526,967.04. Clico Investment Fund was the most active security, with a volume of 24,865 shares valued at $508,660.24. It advanced by $0.03 to end at $20.46. Calypso Macro Index Fund declined by $0.09 to end at $17.40.
In Wednesday’s trading session the following reflect the movement of the TTSE Indices:
• The Composite Index declined by 0.08 points (0.01 per cent) to close at 1,223.89.
• The All T&T Index declined by 0.48 points (0.03 per cent) to close at 1,720.55.
• The Cross Listed Index advanced by 0.04 points (0.04 per cent) to close at 97.65.
<< Back to news headlines >>
BHP Billiton finds new gas offshore T&T Thursday 19th July, 2018 – Trinidad Express Newspapers
Australia's BHP Billiton found new gas offshore Trinidad, the company confirmed in a statement yesterday. 'In Trinidad and Tobago, following the gas discovery at LeClerc, we commenced Phase 2 of our deepwater exploration drilling campaign to further assess the commercial potential of the Magellan play. The Victoria- 1 exploration well was spud on June 12, 2018 and encountered gas. Following completion of the Victoria-1 well, we expect the Deepwater Invictus to drill the Bongos prospect in Northern Trinidad and Tobago,' BHP Billiton said in a news release.
The quantity of gas found, about 200 kilometres (km) off the east coast of Mayaro, near the T& T border with Guyana, was not disclosed. This is not unusual as it was not until October 24, 2017, that the LeClerc discovery, announced on August 9, 2016, was known to contain about five trillion cubic feet (tcf) of gas. At a depth of 22,876 feet (about 7 km), the LeClerc find was the first ultra-deep discovery in the Caribbean. For perspective, that is a hole as deep as the distance between Port of Spain and San Juan.
The Victoria-1 discovery occurred in water depths of about 1.8 km. The official status of the Victoria-1 well in BHP Billiton's Operational Review for the year ended June 30, 2018 is: 'Hydrocarbons encountered, drilling ahead.' The Victoria-1 well is relatively near LeClerc, in the same block 5 of the Trinidad and Tobago Deep Atlantic Area (TTDAA), where BHP Billiton conducted a 3,528 square km seismic survey in water as deep as 3.5 km.
BHP Billiton won the TTDAA 5 block in a 2012 competitive bid round. Governed by a production sharing contract (PSC), BHP Billiton, the block operator, holds a 65 per cent share in the block, with Royal Dutch Shell holding the remaining 35 per cent. At the time, T& T Energy Ministry officials had told investors the four deepwater blocks could hold as much as 23.6 tcf of gas and 4.2 billion barrels of high-quality crude oil.
In March, BHP Billiton reiterated plans to drill three wells offshore Trinidad and Tobago. BHP Billiton's vice president for Global Exploration had told reporters at a conference in Houston: 'In Trinidad, our plan is to do three wells back to back, one south, one north and then one south.'
As previously reported in the Express, the company continues to increase its production out of T& T, of both high-grade crude oil (Calypso crude priced close to Brent) and natural gas. BHP Billiton reported that, compared to the year before, its total petroleum products production (oil and gas) out of T& T increased 23 per cent to 7.4 million barrels of oil equivalent (mmboe) in its fiscal year ended June 30, 2018.
<< Back to news headlines >>
American Airlines hires 100 Thursday 19th July, 2018 – Trinidad and Tobago Newsday
TT's newest business process outsourcing (BPO) office has provided jobs for more than 100 people.
Trade and Industry Minister Paula Gopee-Scoon said the decision by American Airlines (AA) to expand its BPO presence locally "further expands and adds value to the country’s BPO agenda.
"The 100-plus employees hired by AA builds on the 600 jobs already created by iQor, the 750 opportunities generated by Scotiabank’s recently established back office support and BHP Billiton’s local operations."
The minister was speaking at the formal opening of AA's new, larger, BPO in Maraval on Tuesday. The new offices service the Caribbean, the Pacific, the Americas and Europe.
<< Back to news headlines >>
EU pledges more support for Barbuda recovery Thursday 19th July, 2018 – The Antigua Observer
The European Union (EU), on Tuesday signalled its intent to support post- hurricane recovery and reconstructions efforts in Barbuda.
The agreement with Antigua and Barbuda was signed by Karen-Mae Hill, Ambassador of Antigua and Barbuda and Stefano Manservisi, Director- General for International Cooperation and Development for the EU on the margins of the second EU-Community of Latin American and Caribbean States (CELAC) Foreign Ministers meeting.
The €5 million (EC $15 million) programme for Antigua and Barbuda will aim to support housing reconstruction for low-income families, who were devastated by the impact of Hurricane Irma, last September.
Similar agreements were also signed with Dominica and CARIFORUM, which was represented by the Minister for Foreign Affairs of St Lucia, Sarah Flood-Beaubrun.
The €14 million ($44 million E.C.) programme with CARIFORUM will support the Caribbean Disaster Management Agency (CDEMA) in further enhancing the region’s disaster preparedness and response capacity.
The programmes were part of a larger package of €74 million that was adopted this week, which will support the region to “build-back-better” and promote resilience regarding future natural hazards.
<< Back to news headlines >>
Antigua shows strongest air arrivals in 15 years Wednesday 18th July, 2018 – The Montserrat Reporter
Antigua and Barbuda tourism officials say that for the first time in over 15 years, the country has seen the strongest overall visitor arrivals by air from January to June.
The Antigua and Barbuda Tourism Authority (ABTA) said it recorded 148,139 arrivals for that period with significant increases in the key source markets – the United States, Canada, United Kingdom and the Caribbean.
ABTA said this represents an overall seven per cent increase over 2017.
It said the closest the destination previously came to these figures was in 2008.
The authority said June demonstrated significant increases while Canada has the greatest year-over-year increase with over 170 per cent, followed by the US, the Caribbean and the United Kingdom.
In addition, ABTA said the destination is seeing an average 11.57 per cent increase in sea arrivals and an average 8.6 per cent growth in occupancy rates.
This growth is set to continue with significant increased airlift from North America in the Fall 2018, the opening of the destination’s newest 5-star resort and spa, Hodges Bay, in October 2018, as well as a full cruise schedule.
“We are excited by this positive momentum in growth of arrivals, both by cruise and air,” said Minister of Tourism, Economic Development and Investment, Charles “Max” Fernandez.
“It is incredibly encouraging for the tourism industry, and I would like to congratulate the Antigua and Barbuda Tourism Authority, the private sector, stakeholders and all our tourism partners in helping us to reach these positive results for the first six months of the year,” he added.
“We will not rest on our laurels, and are striving for better,” Fernandez continued. “We will continue to invest in infrastructure and service and raise awareness of Antigua and Barbuda to ensure we see consistent growth in arrivals.”
ABTA chief executive officer, Colin C. James, said the first half of 2018 has shown “incredible improvement, especially in our key source markets.
“We look forward to relentlessly working towards attracting new and returning visitors, improving our on-island tourism products, as well as increasing access through our award-winning airport and port,” he said.
“We are doubling our airlift out of Miami, introducing new direct service out of New York and Canada, and welcoming new cruise ships to an already busy schedule,” he added.
<< Back to news headlines >>
Central Bank to ease ‘critical’ dollar pinch Thursday 19th July, 2018 – Dominican Today
The Central Bank of the Dominican Republic on Wed. decided to intervene in the exchange market to meet the demand for US dollars that has spiralled in recent days.
The announcement comes less than 24 hours after industrial leader Antonio Taveras warned of a “critical” shortage of dollars.
Central banker Héctor Valdez Albizu stressed that the dollars from the Govt.’s US$1.3 billion bond issue will also be entering the market, “with which the international reserves will be around US$7.7 billion.
“These currencies will favour the continued normalization of the flow of foreign currency in the country, contributing, in addition, to reduce possible pressures on the price of the currency,” Valdez said in a statement.
He added that the current demand corresponds to the Dominican economy’s performance, which posted a growth of 6.6% from January to May.
<< Back to news headlines >>
Another natural gas plant or the Govt. spewing hot air Wednesday 18th July, 2018 – Dominican Today
A Chinese conglomerate has agreed to develop a 1,200MW natural gas power complex in what is poised to be Dominican Republic’s biggest power project.
The enticing headline however has been met with total silence from the Govt.
“China Huayang Economic and Trade Group signed an MOU for the project with the Caribbean country’s State Electric Utility (CDEEE),” it was announced on Friday.
Local media report that the complex in Manzanillo Bay, Montecristi province (northwest), will be developed under the BOT or BOO model with a 30-year concession. It will also incorporate liquified natural gas (LNG) and seaport terminals.
“The government of the Dominican Republic will provide a sovereign guarantee while China Development Bank will provide loans for the project,” the report says. “The amount of investment was not disclosed.”
Natural gas scandal
The information brings to the fore a similar proposal nearly 10 years ago by the US-based North Energy Central (NEC), to build a 300MW natural gas power plant in Manzanillo, but govt. intrigue and the scandal-plagued Punta Catalina coal plant project tore it asunder
<< Back to news headlines >>
Cuba seeks to drive Havana hotel investments Wednesday 18th July, 2018 – Hotel Management
The Cuban Ministry of Tourism (MINTUR) has named the capital city of Havana a priority destination for tourism investment.
The Ministry is particularly focused on the Workers' Social Clubs (CSO), which have deteriorated significantly. Companies, like Marriott and Four Seasons, have already started bidding on the CSO Julio A. Mella.
Havana's current hotel development pipeline includes the hotels Packard, which is scheduled to open in 2018, Prado y Malecón, which is opening in 2019, Corona, Metropolitano and Gran Hotel. Other projects include hotels on Malecón and D streets, 3rd and 70th streets across from the Panorama Hotel, G and 29th streets and on 25th and Ki streets near the Tryp Habana Libre Hotel.
Iberostar has planned to celebrate Havana's 500th anniversary by investing €35 million the Habana Riviera Hotel, which the company currently operates. Many of the guestrooms of the Habana Libre Hotel, the New York Hotel and the Gran Hotel will also undergo renovations ahead of the anniversary.
These investments show that investor confidence in Havana's tourism is rebounding. The MINTUR has been promoting investment in Cuba, including with Meliá Hotels & Resorts, and aims to sign five-year management contracts extendable for another period to operate the hotels.
The city currently has 15 hotels operated with foreign companies along with 95 management agreements accounting for 65 percent of Cuba's total number of guestrooms. According to MINTUR, investments in 2018 reached $1.035 billion, driving for a 3.5-percent increase in Cuban tourism this year compared to the same period last year.
<< Back to news headlines >>