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Latest Rating Actions by CariCRIS
▪ Telecommunication Services of Trinidad and Tobago rating downgraded to CariA- ▪ Trinidad and Tobago Mortgage Finance Company Limited rating reaffirmed at CariAA- ▪ The Government of Anguilla rating reaffirmed at CariBBB+ ▪ NCB Financial Group rating upgraded to CariA+ ▪ NCB Jamaica Limited rating upgraded to CariA- ▪ NGC’s rating reaffirmed at CariAA+ ▪ NCB Capital Markets Limited’s rating upgraded to CariBBB+ ▪ NCB (Cayman) Limited’s rating reaffirmed at CariA ▪ Colonial Fire & General Insurance Company Limited’s rating reaffirmed at CariA ▪ Home Mortgage Bank’s rating reaffirmed at CariA ▪ Mystic Mountain Limited’s rating upgraded to CariBBB ▪ NiQuan Energy Trinidad Limited’s rating reaffirmed at CariA+ ▪ Sagicor Financial Corporation Limited’s proposed bond issue initial rating assigned at CariAA ▪ Dominica Agriculture, Industrial and Development Bank’s rating reaffirmed at CariBB-
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REGIONAL
Trinidad and Tobago
Boost for Digicel data customers DIGICEL Trinidad and Tobago has announced the rollout of its LTE Advanced (LTE-A) mobile network, an upgrade from its LTE network. The upgrade promises customers maximum speeds of 190 megabits per second (Mbps).
First Citizens Bank gains $0.54 OVERALL market activity resulted from trading in ten securities of which two advanced, four declined and four traded firm.
Jamaica
GraceKennedy reports improved third-quarter performance The GraceKennedy Group is reporting improved performance after its nine-month period accumulating net profits of $3.71 billion, representing a marginal increase of 0.1 per cent or $2.04 million over the prior year period.
NCB boasts of $30.7 billon super profit and $1.6 trillion in assets for 2019 National Commercial Bank (NCB) Group is boasting of its $30.7 billion super profit made for its just ended financial year, while its assets have climbed to $1.6 trillion.
NCB a $1.6-TRILLION company NCB Insurance Company (NCBIC) has launched a set of new pooled fund offerings, targeting local pension funds.
Ground broken, contract signed for Dr Kenneth Baugh Health Centre GROUND was broken and the contract signed on Wednesday for construction of the Dr Kenneth Baugh Health Centre in the rural community of Point Hill in St Catherine West Central.
Sagicor Group gains from core business Sagicor Group Jamaica earnings spiked 18 per cent in the third quarter, due to growth in its core operation.
Guyana
Tobacco company rakes in $1.3B in profits DEMERARA Tobacco Company has recorded a $1.3B before tax profits for the first six months of this year, representing an increase of four per cent over the corresponding period last year.
Anguilla
Bigger, Better Airline for Anguilla From Puerto Rico Now that the 2019/2020 tourism season is in full swing in Anguilla, Silver Airways, a US mainland-based company, has made its first flight to the Captain Clayton J. Lloyd International Airport and is to begin its schedule service in the New Year from Puerto Rico.
Million-Dollar Road for Chapel Hill A public road is to be constructed from Chapel Hill, just down from the Bethel Methodist Church and Cemetery, to Sandy Ground where Road Bay provides one of the most arresting and magnificent views in Anguilla.
The Construction Industry: Public Sector Catches Up with Private Sector Right now, there are several public sector projects in progress absorbing a considerable percentage of the workforce in the construction industry. The bulk of the projects are being funded under the UK-funded Anguilla Programme.
British Virgin Islands
Road Town Fast Ferry adds 5:30pm trip from Charlotte Amalie to RT - move will accommodate late arrival & departure of Spirit & Jet Blue flights Part of the rationale behind the move is to accommodate the late arrival and departure of Spirit and Jet Blue flights in and out of St Thomas, which means that visitors can now consider the ferry as an option for getting to the Virgin Islands.
Medina inaugurates Renewable Energy Theme Park in Ciudad Juan Bosch President Danilo Medina led the inauguration of the Renewable Energy Theme Park in the City of Juan Bosch. The park will generate clean energy with different technologies that represent the future route of the electricity industry based on production and energy consumption with sustainable criteria.
The Dominican Republic continued
Sunrise Airways will expand and develop new route openings from DR Sunrise Airways, an airline that links Santo Domingo and Havana, Cuba, announced that it acquired a certificate of operation from the national company Servicios Aéreos Geca, which offers non-scheduled passenger and mail air transport services, domestic and international, and regular transportation air on routes to Santo Domingo – Punta Cana.
Venezuela
Baker Hughes' Venezuela office reopens after town orders 'temporary closure' Baker Hughes’ western Venezuela office has returned to “regular operations,” the company said on Friday, after a local government earlier ordered it closed due to the company’s alleged failure to pay municipal taxes.
INTERNATIONAL
United States
S&P 500, Nasdaq slip on trade uncertainty; Boeing buoys Dow The S&P 500 and Nasdaq stock indexes fell from record highs on Monday as uncertainty about progress in U.S.-China trade talks again rose to the fore following comments by President Donald Trump, while a jump in Boeing shares helped the Dow Jones Industrial Average eke out a slim gain.
JetBlue enters basic economy battle with new fare options JetBlue Airways Corp (JBLU.O) on Tuesday became the latest U.S. airline to launch a low-fare option in an effort to rival basic economy offerings from major airlines and meet competition from ultra-low-cost carriers.
United Kingdom
FTSE rebounds but mid-caps nervy as sterling falls A near 3% rise in shares of the world’s biggest credit check firm Experian led a recovery in London blue-chip stocks on Tuesday after falls that tracked a downbeat global mood a day earlier.
United Kingdom continued
UK jobs fall by most in over four years as election nears Britain’s employers cut more jobs from July to September than in any quarter for four years, according to official data, which highlighted how the labour market is slowing as an election nears although the fall was smaller than economists forecast.
Morrisons lags as big UK supermarkets lose ground to discounters Britain’s big four supermarket groups lost market share to German-owned discounters Aldi and Lidl in the latest 12-week period, with No. 4 player Morrisons (MRW.L) the clear laggard, industry data showed on Tuesday.
Europe
Defensive stocks help European shares end flat, London lags Demand for defensive stocks helped European shares recover from early losses on Monday as investors grappled with issues ranging from violent Hong Kong protests to an inconclusive Spanish election and weak data from China.
Global
Oil rises further above $62 as trade hopes support Oil rose further above $62 a barrel on Tuesday, supported by hopes that U.S. President Donald Trump may signal progress on trade talks with China and lower inventories at a U.S. oil hub.
Dollar edges up ahead of potentially market-moving Trump trade speech The dollar was stronger against the yen and Swiss franc on Tuesday as traders grew optimistic ahead of a speech by U.S. President Donald Trump, during which he is expected to again postpone imposing tariffs on European Union autos.
Tobacco company rakes in $1.3B in profits Tuesday 12th November, 2019 – Guyana Chronicle
DEMERARA Tobacco Company has recorded a $1.3B before tax profits for the first six months of this year, representing an increase of four per cent over the corresponding period last year.
Chairman of the company, Marcus Steele, noted that gross profit for the period was recorded at $1.8B, reflecting an increase of three per cent over 2018. “These positive results were driven by the excellent trade marketing efforts of the staff members, the on-going and positive distribution efforts by our business partner E.B. Beharry, and the disruption in the supply chain in the illicit trade in cigarettes which flowed from the impact and implementation of some other anti-illicit trade measures by the GRA,” Steele said in a report that was published in the newspapers.
Administration, distribution and marketing expenses totalling $425M (2018: $419M) represented a one per cent increase, signalling strong success by the management in maintaining overhead costs and strengthening our operating efficiencies.
Steele said the company continues to successfully transition into the new operating environment flowing from the new regulatory measures which have been enacted over the last two years by the authorities. “During the specific period under review, the company has shown institutional and operating resilience in managing both the 10s ban which became effective January 2019, and also the new labelling and packaging regime with the GHW component that was rolled out in February of 2019. There is no doubt that it has been a challenging period for the overall industry, but I remain particularly pleased with the overall management by the company’s leadership during the period, and the continuing strong performance as evidenced by the solid business results,” Steele noted.
He said, within all of this, the company continues to be proud of the strength of its brands, and the continuing “loyalty of our business partners, namely our distributor, our retailers and our consumers. Several strategic retailer engagement sessions were executed to ensure a full understanding by our retailers of the tenets of the new legislation and the importance of complying with them.”
SMUGGLED CIGARETTES
Steele said the company continues to be particularly concerned however, with the growing incidence of illicit cigarettes in the country – those that are either not adhering to the required labelling and packaging requirements (pictorial graphic health warning etc.), those that are still being distributed without the required tax stamps, and some based on the price points which they are being sold, are clearly smuggled products that have evaded the tax authorities. “We therefore continue to urge not only the GRA, but the local police and the Guyana Bureau of Standards to actively enforce the laws to ensure that there is full compliance by all importers and distributors of cigarettes in Guyana.”
“The company would however, as always, take this opportunity to congratulate the Guyana Revenue Authority (GRA), the local police and the many other Law Enforcement Agencies (LEAs) who continue to be very vigilant in robustly monitoring the industry for compliance with the law. We are particularly proud with the recent roll out of the latest phase of our Youth Access Prevention (YAP) Program, which has been executed across the entire market, to ensure that our products are not sold to or sold by anyone under the age of 18. As a company, we take this very seriously and have sought to ensure our business partners understand that this issue is paramount. All told, we remain proud of our commitment in marketing and distributing cigarettes in a responsible manner, and once again assure all stakeholders of our commitment to protect this legacy.”
“We remain very hopeful for the future prospects of the wider Guyana economy, and are carefully mapping the opportunities and challenges which may emerge from the changing demographics resulting from the rapidly expanding oil industry. We are confident that we have the portfolio, we have the team, we have the management, and we have the strategic business partnerships, to ensure the continuous delivery of strong shareholder value. The outlook for the company remains very positive. The Board of Directors has accordingly approved the payment of an interim dividend of $19.00 per ordinary share,” Mr. Steele said.
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S&P 500, Nasdaq slip on trade uncertainty; Boeing buoys Dow Monday 11th November, 2019 – Reuters
The S&P 500 and Nasdaq stock indexes fell from record highs on Monday as uncertainty about progress in U.S.-China trade talks again rose to the fore following comments by President Donald Trump, while a jump in Boeing shares helped the Dow Jones Industrial Average eke out a slim gain.
Investor hopes of a “phase one” trade deal have been a key factor supporting stocks recently, but Trump said on Saturday that the United States would only make a trade deal if it was the “right deal” for America, adding that the talks had moved more slowly than he would have liked.
Violence in Hong Kong during protests also cast a shadow on sentiment after the three major averages posted all-time closing highs on Friday, and the benchmark S&P 500 .SPX tallied its fifth week of gains in a row.
“You had negative headlines that were a reason for consolidation after five weeks in a row where stocks moved higher,” said Willie Delwiche, investment strategist at Baird in Milwaukee.
“The biggest risk right now is excessive optimism,” Delwiche said. “And so if we can have a few days of consolidation where it eases some of that, then that’s a healthy development for the market overall.”
Michael Arone, chief investment strategist at State Street Global Advisors, said that “a lot of good news is priced into the stock market,” including the Federal Reserve’s interest-rate cuts, third-quarter earnings topping low expectations, signs of a bottoming of economic data, and enthusiasm about a potential resolution to trade tensions.
Investors will be watching for any trade commentary from Trump on Tuesday, when he is expected to speak at The Economic Club of New York.
The Dow Jones Industrial Average .DJI rose 10.25 points, or 0.04%, to 27,691.49, the S&P 500 .SPX lost 6.07 points, or 0.20%, to 3,087.01 and the Nasdaq Composite .IXIC dropped 11.04 points, or 0.13%, to 8,464.28.
Shares of Boeing Co (BA.N) jumped 4.5% to $366.96 after the planemaker said it expected U.S. regulators to approve the return to commercial service of its grounded 737 MAX jet in the coming weeks, and expects commercial service to resume in January.
Boeing shares are the biggest weight in the 30-component, price- weighted Dow, helping the blue-chip index tally another record close on Monday.
Walgreens Boots Alliance Inc (WBA.O) shares gained 5.1% after Bloomberg reported that KKR & Co (KKR.N) had formally approached the drugstore giant for what could be the biggest-ever leveraged buyout.
Most of the S&P 500 sectors ended in the red, with utilities .SPLRCU, energy .SPNY and healthcare .SPXHC falling the most.
Investor attention will shift to economic data and testimony by Fed Chair Jerome Powell on the economic outlook later this week, while a handful of big companies, including Walmart Inc (WMT.N), Cisco Systems Inc (CSCO.O) and Nvidia Corp (NVDA.O), will report earnings.
The third-quarter corporate reporting season, which is drawing to a close, has been better than expected overall, but S&P 500 companies are still expected to have posted a 0.5% decline in earnings, according to Refinitiv data.
Declining issues outnumbered advancing ones on the NYSE by a 1.36-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favoured decliners.
The S&P 500 posted 19 new 52-week highs and one new low; the Nasdaq Composite recorded 64 new highs and 96 new lows.
About 5.5 billion shares changed hands in U.S. exchanges, below the 6.8 billion-share daily average over the last 20 sessions.
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JetBlue enters basic economy battle with new fare options Tuesday 12th November, 2019 – Reuters
JetBlue Airways Corp (JBLU.O) on Tuesday became the latest U.S. airline to launch a low-fare option in an effort to rival basic economy offerings from major airlines and meet competition from ultra-low-cost carriers.
The new fare, to be called “Blue Basic,” will allow one carry-on bag - space permitting - and free seat selection 24 hours before the flight, but those passengers will be the last to board the plane.
“There is a growing customer segment that really values low fares and that are willing to trade off certain benefits,” JetBlue President Joanna Geraghty told Reuters.
The three biggest U.S. carriers - American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and United Airlines Holdings Inc (UAL.O) - have all rolled out basic economy fares in reaction to the growth of no-frills carriers Spirit Airlines (SAVE.N) and Frontier Airlines, even as they court higher- paying passengers with new premium fare options.
“Basic economy has proven to be a revenue driver for airlines that have implemented it and should drive incremental revenue growth in 2020 despite expectations for industry unit revenue to decline,” Cowen analyst Helane Becker said in a recent note about JetBlue to investors.
For travellers willing to pay for early boarding, free advanced seating and flexibility with travel changes, JetBlue is launching a separate fare option called “Blue Extra.”
New York-based JetBlue, which boasts that it has the most leg room in coach, has said it expects its new fare options to add about $150 million to revenue in 2020.
The “Blue Basic” fare can first be found on routes like Ft. Lauderdale, Florida to Nassau, Bahamas or New York’s JFK to Long Beach, California before being rolled out to most of JetBlue’s other routes over the next month or two, a spokesman said.
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Oil rises further above $62 as trade hopes support Monday 11th November, 2019 – Reuters
Oil rose further above $62 a barrel on Tuesday, supported by hopes that U.S. President Donald Trump may signal progress on trade talks with China and lower inventories at a U.S. oil hub.
Concern about slower economic growth and oil demand due to the fallout from the 16-month U.S.-China trade dispute sent prices lower on Monday. Trump gives a speech later on Tuesday and investors are keen for an update on the talks.
Brent crude, the global benchmark, was up 47 cents at $62.65 a barrel by 1115 GMT, after falling as low as $61.90. West Texas Intermediate (WTI) crude was up 36 cents at $57.22.
“The oil market is in a holding pattern,” said Tamas Varga of oil broker PVM. “The next $5-$10 move will be decided by economic and trade considerations.”
“He is widely expected to delay his decision to impose tariffs on European car and auto part imports and will also shed further light on the status of the trade negotiations with China,” Varga added, referring to Trump’s speech.
The U.S. president said on Saturday that talks with China were moving along “very nicely” but the United States would make a deal only if it was the right one. He said there had been incorrect reporting about U.S. willingness to lift tariffs.
“Market participants continue to believe in a (partial) trade agreement to be signed soon,” said Carsten Fritsch, analyst at Commerzbank. “Increasing doubts about this would put oil prices under pressure.”
Adding further support, U.S. data showed that crude inventories at Cushing, the delivery point for WTI, fell by about 1.2 million barrels in the week to Nov. 8, traders said, citing market intelligence firm Genscape.
Cushing inventories had grown for five weeks in a row through Nov. 1, according to government data.
Brent has risen 16% in 2019, supported by a supply-limiting pact by the Organization of the Petroleum Exporting Countries and allies including Russia. The producers meet on Dec. 5-6 to decide whether to extend the deal.
Oman, one of the outside producers working with OPEC, said on Monday that the alliance would probably extend the agreement but was unlikely to increase the size of the supply cut.
In a further supportive supply-side development, Goldman Sachs cut its 2020 forecast for growth in U.S. oil production, which has surged in recent years and helped keep a lid on prices.
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Dollar edges up ahead of potentially market-moving Trump trade speech Monday 11th November, 2019 – Reuters
The dollar was stronger against the yen and Swiss franc on Tuesday as traders grew optimistic ahead of a speech by U.S. President Donald Trump, during which he is expected to again postpone imposing tariffs on European Union autos.
Trump’s speech to the Economic Club of New York is expected to be market moving as he is scheduled to discuss U.S. trade policy. Currency traders will also be listening for hints about the Trump administration’s long- running trade war with China, and any progress towards the “phase one” trade deal.
“The market has obviously been quite wary about whether a phase one deal is on or not - a lot of hopes are being placed on this speech one way or another,” said Jane Foley, senior forex strategist at Rabobank.
“We just don’t know which way he’s going to go,” she said, as Trump can be “very impulsive” and therefore difficult to predict.
“I suspect that he will provide just enough encouragement to indicate that there is reason to be hopeful, without probably saying that it’s a done deal,” Foley said.
Versus a basket of currencies, the global dollar index .DXY rose 0.1%.
The dollar strengthened against safe haven currencies: it was up 0.2% against both the Japanese yen JPY=EBS and the Swiss franc CHF=EBS in early London trading.
The euro was down by 0.1% against the dollar at $1.10225 EUR=EBS, close to the four-week low of $1.10165 it fell to last week.
The New Zealand dollar was down 0.5% at 0.6335 versus the U.S. dollar, only slightly recovered from the low of $0.6323 it reached last week NZD=D3 after a central bank survey showed the country's near-term inflation expectations dropped, increasing traders' expectations of a rate cut this week.
The offshore Chinese yuan was flat against the dollar at around 7, a threshold it crossed for the first time in August CNH=EBS. The yuan weakened on political unrest in Hong Kong, as well as because of weak economic data in mainland China.
In Hong Kong, riot police fired tear gas at a university campus on Tuesday, a day after a protester was shot and a man set on fire in some of the most dramatic unrest to rock the Chinese-ruled city in more than five months.
The Chinese foreign ministry said that stopping the violence is the most important thing and that the United States, United Kingdom and other countries should not interfere.
The dollar was boosted last week when comments from the Chinese trade ministry were interpreted as a sign of progress on rolling back China-U.S. tariffs, causing traders to dump safe-haven currencies like the yen.
However, uncertainty hit again on Friday when Trump said that he had not agreed to reduce tariffs.
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Boost for Digicel data customers Tuesday 12th November, 2019 – Trinidad Express Newspaper
DIGICEL Trinidad and Tobago has announced the rollout of its LTE Advanced (LTE-A) mobile network, an upgrade from its LTE network. The upgrade promises customers maximum speeds of 190 megabits per second (Mbps).
Speaking at a media conference at Digicel's head office in Port of Spain yesterday, Digicel operations manager Chandrika Samaroo said the Telecommunications Authority of Trinidad and Tobago (TATT) approved the new spectrum in late July this year.
'We would have purchased it in early August and we began rolling it (LTE- A) out since then,' he stated.
Digicel launched LTE in July 2018 and since then has invested $15 million in the network.
While noting that 5G or fifth generation cellular technology is the 'technology of the future', Samaroo said Digicel felt that investing 'immediately' in 5G did not benefit the country, customers or the company.
'At Digicel, we have a customer centric approach to our network revolution. For any technology to make sense for the user you need to have the right resources. So the regulator is to give the right resources, the right spectrum to do it. Users need to have the right handset. We don't want to deploy or make an investment for just a few users,' he explained.
5G on hold
'We want to invest some money where most of our users can actually benefit. This is why our approach today has been LTE Advanced. 5G is definitely the technology of the future. I know that our spectrum isn't there yet. Our spectrum plan still needs some work by the regulator and by us, to get to that point where the resources are actually available for operators to deploy 5G on the mobile network,' he stated.
He added: 'And the handsets are right now very, very few and far between. They are also very expensive and out of the reach of the average Trinidadian.'
Digicel T& T chief executive officer Jabbor Kayumov noted that there are less than five per cent of 5G-enabled handsets in T& T.
'First we need to have customers to have the right handsets. It's as simple as that. You cannot drive 5G if you have 2G handsets. So we are encouraging those who still have 2G handsets to move to 4G or LTE, which is going to allow them to enjoy the quality of speeds,' he stated. At the media conference yesterday, Kayumov boasted of a ten per cent increase in Digicel's home and entertainment customer base, and a ten per cent increase in corporate and Government business.
'Business is growing, almost double- digit, which is a big achievement in our industry. This wouldn't be happening without our customer base,' he stated.
Kayumov said for the first half of 2019, Digicel was named the fastest mobile network in the country by global speedtest firm, Ookla.
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First Citizens Bank gains $0.54 Tuesday 12th November, 2019 – Trinidad Express Newspaper
OVERALL market activity resulted from trading in ten securities of which two advanced, four declined and four traded firm.
Trading activity on the First Tier Market registered a volume of 73,370 shares crossing the floor of the Exchange valued at $567,387.95. LJ Williams Ltd B was the volume leader with 49,000 shares changing hands for a value of $53,900, followed by FirstCaribbean International Bank Ltd with a volume of 16,800 shares being traded for $143,318. Massy Holdings Ltd contributed 3,636 shares with a value of $203,826.90, while Scotiabank Trinidad and Tobago Ltd added 2,355 shares valued at $140,051.85.
First Citizens Bank Ltd registered the day's largest gain, increasing $0.54 to end the day at $41.54. Conversely, FirstCaribbean International Bank Ltd registered the day's largest decline, falling $0.46 to close at $8.53.
CLICO Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 416 shares valued at $10,013.12. CLICO Investment Fund remained at $24.07. Calypso Macro Index Fund remained at $15.85. Eppley Caribbean Property Fund Ltd SCC - Development Fund remained at $0.67. Eppley Caribbean Property Fund Ltd SCC - Value Fund remained at $1.70. Praetorian Property Mutual Fund remained at $3.05.
The Second Tier Market did not witness any activity. Mora Ven Holdings Ltd (Suspended) remained at $12.
The SME Market did not witness any activity. CinemaONE Ltd remained at $7.15. The USD Equity Market did not witness any activity. MPC Caribbean Clean Energy Ltd remained at $1.
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Bigger, Better Airline for Anguilla From Puerto Rico Monday 11th November, 2019 – The Anguillian
Now that the 2019/2020 tourism season is in full swing in Anguilla, Silver Airways, a US mainland-based company, has made its first flight to the Captain Clayton J. Lloyd International Airport and is to begin its schedule service in the New Year from Puerto Rico.
The twin turbo-prop brightly-painted pink aircraft touched down at 1.30pm on Friday, November 1. It had arrived in San Juan earlier where it flew from Fort Lauderdale with in transit Puerto Rico and Anguilla-bound passengers from JetBlue. The aircraft and its crew, which will replace Seaborne Airlines, were met on arrival in Anguilla by a party of Government and tourism officials led by Premier Victor Banks.
Captain Robert (Bobby) Gene Simeone, told The Anguillian newspaper: “The aircraft is an ATR-42 600 (carrying 42 passengers) and based at Fort Lauderdale, Florida. We came out of San Juan and commuted a bunch of people for a wedding in Anguilla. On the flight we have a Captain, a First Officer and a Flight Attendant. The aircraft is capable of flying for about four, or five hours, non-stop at 23,000 feet with a speed of 250 knots which is pretty fast. The plane is pretty durable and is one of our new ships. We have about five or six. We have three bases. Our primary base is in Fort Lauderdale. We have another base in Tampa and the third in Orlando. We are looking to expand and my understanding is that we will bring the ATRs to Puerto Rico. That should happen probably in the New Year.”
Captain Simeone, who was in Anguilla for the first time, said “the beaches looked nice” as he flew in. He remarked that while his aircraft can land at a short distance on the runway, he had seen a day ago a video of the landing of a Boeing 737 – 400 aircraft which required a longer distance “but which did it”. He indicated that his airline, which also owns Seaborne, operates both ATR 42s and ATR 72s. This means that, at any given time, the latter larger planes can be flown to Anguilla, bringing in more passengers on demand.
Premier Banks hailed the arrival of Silver Airways. “It is the beginning of the development of more access into Anguilla and we have a lot of other plans for this,” he commented. “We are grateful to the operators [of Silver Airways] for ensuring that this service is available to us. It expands our horizons in terms of outreach to various cities and destinations throughout the world – and certainly supports our tourism industry and the growing interest in Anguilla.”
Silver Airways Aircraft
Mr. Cardigan Connor, Parliamentary Secretary, responsible for Tourism, said: “This is something we look forward to for some time. Anguilla has had a relationship with Seaborne Airlines and now, with Silver Airways, it is upgraded. I suppose you can look back to American Eagle and say that gap is now being filled by Silver Airways. As we look to expand the ability for people to have more access to Anguilla, this is perfect for us. One of the things we would love to have happen is to include St. Thomas in all of this. We are having negotiations with Silver to make that happen – as we have a great responsibility for Anguillians in St. Thomas.”
Minister of Communications, Mr. Curtis Richardson, exclaimed: “Praise God! God is moving mountains again! The days of the small plane in Anguilla are becoming a thing of the past. Our Anguillian pilots have stood by us and have, over the years, built the aviation industry – and what we now need is to get the support for these sorts of larger aircraft. Nowadays people have a high premium on their time and this is going to do a lot.”
Minister Richardson continued: “I have just been talking to the representatives of Silver Airways and they have given me their strong commitment that it is quite possible for the aircraft to go to St. Thomas. I am looking at the Anguillians there and that aircraft also has to travel to St. Thomas and Anguilla. That is my fight as the Minister for Aviation.”
Chairperson of the Anguilla Tourist Board, Mrs. Donna Banks, had this to say: “With Silver Airways coming in with this equipment, we are very excited and happy because it is a bigger and more comfortable aircraft. It will give us the sort of comfort and connectivity that we need to have out of San Juan. We believe Anguilla has a number of hubs that it needs to focus on. We have St. Maarten, and we are looking at direct service out of gateways in the United States. But San Juan has always been there for us. It has been a very important hub for us in the past, and the Anguilla Tourist Board has, over the years, been supporting the Seaborne flight coming to Anguilla; and for us to see this aircraft here today, we feel that our major investment over the years is paying off.
“We are looking forward to the day when we can have at least two flights coming to Anguilla. That is the time that we will know that we will be offering our guests the perfect connectivity that they are looking for. We are thankful to Seaborne and Silver. They have demonstrated what they can do, and we are looking forward to the support of both the private and public sector for this new flight so that the route can grow, and that the market, especially out of the United States, can expand and we can see our tourist arrival figures rising to the level we want them to be at. Without access, there is no market.”
Mrs. Banks added: “There are about six flights between Puerto Rico and Anguilla a week. This Silver Airways plane is not starting to fly to Anguilla immediately. We are looking for it to be used early in the New Year when that equipment will be moved into San Juan. In the meantime, the regular equipment operated by Seaborne in the past will be used. That service has been improving but we expect bigger and better things. Silver has demonstrated a commitment to the market – and a confidence in the opportunities that Anguilla has a destination. We are thankful to Silver and especially to the Marketing Manager, Angelia Hanne, who has been working very closely with us.”
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Million-Dollar Road For Chapel Hill Monday 11th November, 2019 – The Anguillian
A public road is to be constructed from Chapel Hill, just down from the Bethel Methodist Church and Cemetery, to Sandy Ground where Road Bay provides one of the most arresting and magnificent views in Anguilla.
The one million Eastern Caribbean-dollar project, to be financed under the Government’s capital programme, is a long desire of the Minister of Infrastructure and Elected Representative of Road South, Mr. Curtis Richardson. He indicated to The Anguillian newspaper on Tuesday, November 5, that he was delighted with the approval of the project.
He stated that since his election in 2015 the Chapel Hill road was one of his proposed pet projects. As a matter of fact, his intention was to initiate and oversee the building of a number of roads, one a year. He observed, however, that the scarcity of funds and the challenges posed by the banking sector had negated his efforts.
On his list of roads have been, and continues to be, The Valley Road, a long-promised project by successive Governments; the Louis Price Gym Road; and the Lookout Road next to Romcan, among others.
The Chapel Hill Road, now being designed, will take in, to some extent, an original footpath often traversed by persons, over the years, to and from Sandy Ground. It will provide both a new and second access road, to relieve the traffic congestion on the existing roadway which, in addition to the Sandy Ground population, serves the busy main port of entry and the loading and offloading of bulk cargo. The new road will also provide relief to motor vehicle travellers during the Sandy Ground Beach Party – and the boat races associated with the Anguilla Summer Festival.
It is believed that the Chapel Hill Road earned its name from the fact that is adjacent to the historic Bethel Methodist Church which is perched on the hillside overlooking the scenic Sandy Ground and Road Bay Harbour.
It may be worth retelling a story about how the congregation, in a fit of excitement, rushed out of the church to Road Bay, in the nineteen hundreds, to welcome returning Anguillian workmen from Santo Domingo, thus leaving the Minister at the altar and abruptly ending his sermon.
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The Construction Industry: Public Sector Catches Up with Private Sector Monday 11th November, 2019 – The Anguillian
Right now, there are several public sector projects in progress absorbing a considerable percentage of the workforce in the construction industry. The bulk of the projects are being funded under the UK-funded Anguilla Programme.
The projects are being financed from the 60 million pounds provided in the humanitarian grant from the UK Government, through the Governor’s Office, following extensive damage to various Government buildings by Hurricane Irma in September 2017.
Work has already been completed at the Ministry of Home Affairs where there is a new office building; the Ministry of Infrastructure where a new storage building has been constructed, but where further work is to be carried out; the roof of The Valley Police Headquarters has been replaced; extensive repair and upgrading work has been carried out at the Princess Alexandra Hospital where some additional work is still in progress; the roof of the Rodney MacArthur Rey Auditorium at Campus B; extension work at the Vivien Vanterpool Primary School; improvements to the Blowing Point Port and the Fire Hall and Control Tower at the Clayton J. Lloyd International Airport.
Currently, the Anguilla Programme is funding construction work and expansion at the Orealia Kelly Primary School where an eight-classroom building is in progress; an extension at the General Post Office to handle the increasing flow of imports ordered by members of the public; and repairs to the roof of the Atlin Noraldo Parliamentary Building.
Another project under construction but funded by a loan from the Caribbean Development Bank, on behalf of the Government of Anguilla, is the first phase of the Anguilla Community College.
Meanwhile, a number of other public sector projects, funded under the Anguilla Programme, are expected to commence in the near future and design plans and tendering are already in hand.
These are: The Valley and the Adrian T. Hazell Primary Schools where a number of insecure and old buildings have been demolished in preparation for the new structures; the Morris Vanterpool Primary School which had to be completely demolished (it is relocated in rented premises and is to be rebuilt at the original site) and the Albena Lake-Hodge Comprehensive School where some eight classroom buildings were demolished, occasioning a shift system for students and teachers. A new multi-purpose school building is to be constructed in The Quarter area.
Still another project to be constructed, as part of the Anguilla Programme, is the new Passenger Ferry Terminal and associated facilities at Blowing Point.
Aside from that, is the new Road Bay project for which a contract was signed last week between the Government of Anguilla, DLN Consultants and Edgehill Associates (Caribbean) Kelectric JV Limited. This project is not funded under the Anguilla Programme but separately by the UK Conflict Stability and Security Fund.
It is expected that the above projects under construction, and those to follow, will keep the building work in the public sector very busy for a considerably long period, having caught up with the private sector.
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Road Town Fast Ferry adds 5:30pm trip from Charlotte Amalie to RT - move will accommodate late arrival & departure of Spirit & Jet Blue flights Sunday 10th November, 2019 – Virgin Island News Online
Part of the rationale behind the move is to accommodate the late arrival and departure of Spirit and Jet Blue flights in and out of St Thomas, which means that visitors can now consider the ferry as an option for getting to the Virgin Islands.
Effective today November 10, 2019, and continuing until the end of the year, Road Town Fast Ferry has added a 5:30 PM boat from Charlotte Amalie in the US Virgin Islands (USVI) to Road Town, Tortola, Virgin Islands (VI), according to the USVI Ports Authority.
However, the new late ferry will operate on Fridays, Saturdays and Sundays only and the Virgin Islands (VI) Customs and Immigration Department, which normally closes at 7:00pm, will remain open until all passengers are cleared, a release on the Authority's Facebook page said.
12:00pm weekend trip added
In addition, a 12:00pm ferry from Road Town to Charlotte Amalie, operating only on Fridays, Saturdays and Sundays, has been added, the statement said.
Part of the rationale behind the move is to accommodate the late arrival and departure of Spirit and Jet Blue flights in and out of St Thomas, which means that visitors can now consider the ferry as an option for getting to the VI.
The late ferry is only scheduled to run until December 31, 2019 and Road Town Fast Ferry sails between the USVI and VI continuously throughout the day, beginning at 7:00am, Monday through Saturday and 9:00am on Sunday.
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FTSE rebounds but mid-caps nervy as sterling falls Tuesday 12th November, 2019 – Reuters
A near 3% rise in shares of the world’s biggest credit check firm Experian led a recovery in London blue-chip stocks on Tuesday after falls that tracked a downbeat global mood a day earlier.
The FTSE 100 .FTSE was up 0.2% by 0833 GMT, but the mid-cap index .FTMC, which rallied on Monday after Brexit Party chief Nigel Farage said suggested he would not fight Conservative-held seats in December's general election, dipped 0.2%.
Weakness in the more domestically focussed index came as sterling, which had hit a six-month high earlier this week driven by political news, dipped ahead of jobs data.
With financial investors still nervous about the outlook for global growth and the outcome of U.S.-China trade talks, traders were holding off on any bigger bullish bets.
Markets rallied last week on signs of a thaw in relations between Washington and Beijing, but those gains were reeled back in on Monday after President Donald Trump cast doubt on the progress of negotiations.
Trump is scheduled to discuss U.S. trade policy at the Economic Club of New York later today.
Experian (EXPN.L) climbed to a near one-month high after it upgraded its organic revenue growth target on the back of strong results in its main North American market, while industrial software company AVEVA (AVV.L) added 2.4% after upbeat results.
ITV (ITV.L) added 2% after the broadcaster said demand for programming, particularly in the United States, would underpin a solid end to the year.
Support services company DCC (DCC.L), however, slid 4% after first-half profit dropped as volumes fell at its business that sells transport fuels and commercial fuels.
Industrial distributor Electrocomponents (ECM.L) weighed heavily on the mid-cap index, slumping 10% after a 10.4-million-pound writedown in relation to British Steel’s liquidation hit first-half earnings.
Discounter B&M European Value Retail (BMEB.L) also dropped 10%, after it said it was undertaking a review of its German unit to decide the future of the poorly performing business.
Manufacturing and research company Oxford Instruments (OXIG.L) jumped 7% after reporting a rise in revenue and profits for the half year period.
Among small-caps, Premier Foods (PFD.L) leapt 9.4% after its first-half earnings got a boost from the relaunch of Mr Kipling cakes last year and strong sales of Nissin noodles.
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UK jobs fall by most in over four years as election nears Tuesday 12th November, 2019 – Reuters
Britain’s employers cut more jobs from July to September than in any quarter for four years, according to official data, which highlighted how the labour market is slowing as an election nears although the fall was smaller than economists forecast.
Strong jobs growth has been a silver lining of the Brexit crisis for British workers as companies hired staff rather than make longer-term commitments to investment.
The unemployment rate fell back to 3.8%, its lowest level since early 1975, the Office for National Statistics said.
But falls in the number of people in work, vacancies and the pace of wage growth added to signs of slowdown which prompted two Bank of England officials to vote for an interest rate cut last week.
“Granted, the employment data can be volatile, and the recent drop is being driven by part-time employment. But the drop ... could be an early sign of a sharp softening in labour demand, and a broader turning point in the labour market,” HSBC economist Chris Hare said.
However Samuel Tombs, an economist at consultancy Pantheon Macroeconomics, said the softening appeared gradual enough for the Bank of England to steer clear of any rate cut for now.
Sterling rose slightly after the figures were published.
The ONS said the number of people in employment fell by 58,000 to 32.753 million, less severe than the median forecast of a fall of 94,000 in a Reuters poll of economists.
But it represented the biggest decline since the three months to May 2015. Total and basic pay both rose by 3.6%, weaker than all forecasts, although still comfortably above inflation.
Britain’s economy grew by a decade-low 1.0% in the 12 months to September, hit by U.S-China trade tensions and the approach of a now postponed Brexit deadline on Oct. 31.
Prime Minister Boris Johnson, seeking to break the Brexit impasse, has called an election for Dec. 12.
But many employers say the uncertainty is likely to continue even if Johnson wins the election as he must hammer out a new European Union trade deal before a deadline at the end of 2020.
Labour leader Jeremy Corbyn says he will renegotiate the Brexit divorce deal and call a new referendum.
The Brexit uncertainty has aggravated Britain’s weak productivity record.
Output per hour was flat in annual terms in the third quarter, an improvement from a 0.5% fall in the April-June period, the ONS said.
That measure of productivity has not grown since the second quarter of 2018, the longest such run in a decade.
Vacancies showed their biggest annual fall since the end of 2009 to 800,000.
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Morrisons lags as big UK supermarkets lose ground to discounters Tuesday 12th November, 2019 – Reuters
Britain’s big four supermarket groups lost market share to German-owned discounters Aldi and Lidl in the latest 12-week period, with No. 4 player Morrisons (MRW.L) the clear laggard, industry data showed on Tuesday.
Morrisons’ sales fell 1.7% in the 12 weeks to Nov. 3, trailing market leader Tesco (TSCO.L), Sainsbury’s (SBRY.L) and Asda (WMT.N), which saw declines of 0.6%, 0.2% and 1.2% respectively, market researcher Kantar said.
In contrast, Lidl’s sales rose 8.8% and Aldi’s were up 6.7%, giving the discounters a combined market share of 13.9%.
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Defensive stocks help European shares end flat, London lags Tuesday 12th November, 2019 – Reuters
Demand for defensive stocks helped European shares recover from early losses on Monday as investors grappled with issues ranging from violent Hong Kong protests to an inconclusive Spanish election and weak data from China.
After falling nearly 0.5% at one point, the pan-European STOXX 600 index closed flat, helped by a turnaround in bank shares .SX7P and gains for sectors considered safer bets during times of economic uncertainty, such as food and beverage .SX3P and real estate .SX86P.
London's FTSE 100 .FTSE led declines among the major regional indexes with a 0.4% drop, while stocks in Frankfurt .GDAXI fell 0.2% and Paris .FCHI rose 0.1%.
The exporter-heavy FTSE index was hit by a jump in the pound after the Brexit Party said it would not contest previously Conservative held seats in Britain’s upcoming election, in a boost for Prime Minister Boris Johnson.
Banks most exposed to Brexit news such as Royal Bank of Scotland (RBS.L) and Barclays (BARC.L) jumped about 4%, countering losses in some Asian- facing banks such as HSBC (HSBA.L) and Standard Chartered (STAN.L), down nearly 2%, after long-running Hong Kong protests turned violent.
Data earlier showed Britain’s economy grew at its slowest annual rate in nearly a decade in the third quarter, although the economy dodged outright recession.
“While the UK is being kept out of recession by surprisingly resilient consumer spending, the outlook for investment continues to look challenging as we move into 2020,” ING analysts said in a note.
“For now, we think the Bank of England will probably avoid cutting interest rates in the near term, although a lot depends on Brexit, and whether the jobs market deteriorates further.”
Ratings firm Moody’s warned on Friday it might cut its rating on Britain’s sovereign debt again, saying neither main political party was likely to tackle high borrowing.
The benchmark STOXX 600 rose to its highest in over four years last week on signs of progress in U.S.-China trade talks, but investors are wary about a deal after U.S. President Donald Trump said he had not agreed to rollbacks of U.S. tariffs sought by China.
“With European equities now up over 10% from their August lows, there is a case to be made that equity markets may be due a pause,” Morgan Stanley’s Graham Secker wrote in a note.
“While it is perfectly normal for investor sentiment to turn more quickly than the actual data, we doubt that we are on the cusp of a meaningful rebound in corporate profits either here in Europe or the U.S.”
European miners .SXPP took the biggest hit, down 1.4% after data from top metals consumer China showed producer prices fell the most in over three years in October.
London-listed shares of BHP Group (BHPB.L) (BHP.AX) slipped 2% after the company touted bullish plans to expand in oil and gas, defying investors who want the world’s biggest miner to cast off the business.
Spain's main IBEX index .IBEX closed flat after the weekend's parliamentary election pointed to a legislative stalemate.
Top gainer on the STOXX 600 was British takeaway food group Greggs (GRG.L), which jumped about 17% after forecasting a 2019 pre-tax profit ahead of previous expectations.
Shares in recent stock market debutant TeamViewer TMV.DE, gained 3.6% after the German software company reported a near-doubling in core profits in the third quarter.
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Baker Hughes' Venezuela office reopens after town orders 'temporary closure' Friday 8th November, 2019 – Reuters
Baker Hughes’ western Venezuela office has returned to “regular operations,” the company said on Friday, after a local government earlier ordered it closed due to the company’s alleged failure to pay municipal taxes.
Before sunrise on Friday morning, Orlando Urdaneta, mayor of the La Canada de Urdaneta municipality in oil-rich Zulia state, tweeted a photo of himself outside the office of the U.S. oil services firm announcing the closure, and issued a statement calling on the company to negotiate.
But Baker Hughes was back in control of the facility by the end of the day, the company said in a statement, which did not address the tax allegations. Urdaneta did not say how much Baker Hughes owed, but said its rival Halliburton had “complied with its obligations.”
“Baker Hughes is pleased to see that the matter has been moved to the normal judicial process and its facility has returned to regular operations,” the company said.
Halliburton did not respond to requests for comment.
Baker Hughes’ La Canada de Urdaneta operations serve the oilfields surrounding nearby Lake Maracaibo, where output has collapsed due to underinvestment by state oil company PDVSA and, more recently, U.S. sanctions meant to force out socialist President Nicolas Maduro. Urdaneta is an ally of Maduro.
OPEC-member Venezuela produced 846,800 barrels-per-day (bpd) of crude in September, including 210,000 bpd from the western region, according to internal PDVSA [PDVSA.UL] data seen by Reuters. The country produced nearly 2 million bpd as recently as 2017, when around 40% of output came from the west.
La Canada de Urdaneta is home to the Petroboscan joint venture between PDVSA and Chevron Corp, one of the most prolific oil fields in the region.
Baker Hughes, Halliburton and Chevron all maintain operations in Venezuela thanks to an exemption to U.S. sanctions on PDVSA allowing them to continue doing business with the firm through January.
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Medina inaugurates Renewable Energy Theme Park in Ciudad Juan Bosch Saturday 9th November, 2019 – Dominican Today
President Danilo Medina led the inauguration of the Renewable Energy Theme Park in the City of Juan Bosch. The park will generate clean energy with different technologies that represent the future route of the electricity industry based on production and energy consumption with sustainable criteria.
The Park is an initiative of the Ministries of the Presidency and Energy and Mines (MEM) and built by the latter with the collaboration of different public and private entities.
The Minister of Energy and Mines, Antonio Isa Conde, said that this is not only a Theme Park but a learning space where young people will come to learn to love and understand renewable energy, which he considers as the most essential way to preserve the integrity of the planet and guarantee the well-being of current and future generations.
“Mr. President, as you can see, among the works of his Government that must not remain hidden must be the Renewable Energy Theme Park of Juan Bosch City, as it is part of the memorable accomplishments of his administration, which are multiple, concrete, functional and of unquestionable contribution to the development of the country, driven by a will that, like yours, is marked by tireless work and the achievement of concrete objectives,” proclaimed Minister Isa Conde.
Meanwhile, the Minister of the Presidency, Gustavo Montalvo Franco, stressed that the Park is symbolic because of its location in the centre of Ciudad Juan Bosch and that it is called to become an articulating node of activities and attractions.
“This will be a space for collective recreation and education, as well as a future scenario of recreational and cultural activities, community, public and private, for the enjoyment of residents and visitors,” he said.
The institutions and companies that have cooperated with the construction of the Theme Park are the Patrimony Fund of Reformed Companies (Fonper), the General Directorate of Customs, the Ministry of Public Works, Trust Management Unit, CDEEE, National Energy Commission, Soventix, EGE-HAINA, Rensa, Edesur, Edeeste, AES Dominicana, Servinca, Raas Solar, Tecnicaribe and CNA Meccanica.
The park
The Renewable Energy Theme Park has a total area of 25,000 square meters and has 600 linear meters of outdoor trails that run through each of the thematic stations.
In the Water Station, it has a Ferris wheel and a mini hydroelectric plant for electricity generation. It is bordered by a rocky area and a water mirror and starts with a water curtain in the outside area, which works with a solar pump.
The Sol Station features photovoltaic plants on the roofs of the two buildings and the ground. It has a Smartflower, with panels that generate energy following the path of the sun.
The Air Station has a turbine with a generation capacity that can reach 10 kilowatts. It also has a Biomass Station in which energy is generated from organic waste.
The Rural Applications Station shows how to take advantage of natural resources for energy self-sufficiency, through solar panels, solar pumping, and biomass in a Lorena and biogas stove.
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Sunrise Airways will expand and develop new route openings from DR Saturday 9th November, 2019 – Dominican Today
Sunrise Airways, an airline that links Santo Domingo and Havana, Cuba, announced that it acquired a certificate of operation from the national company Servicios Aéreos Geca, which offers non-scheduled passenger and mail air transport services, domestic and international, and regular transportation air on routes to Santo Domingo – Punta Cana.
In that sense, Philippe Bayard, president of the airline, explained that obtaining this agreement is due to the sustained growth over time that the company has achieved.
“The acquisition of the certificate is an investment that means a crucial step in our strategy to expand our services in the Caribbean region. It will allow us to expand the development and openings of new routes from the DR,” he added.
With this, Bayard said that “investing in the Dominican Republic has always been an important part of our company, as it demonstrates our commitment to the country.”
He explained that since 2012, Sunrise Airways has gradually increased its operations to achieve 110 weekly flights and a projection of 250,000 passengers transported in 2019.
In that context, the CEO of the airline, which will celebrate 7 years next December, recalled the number of passengers transported since 2014 when it registered the amount of 21,000; in 2015: 51,000; 2016: 81,000; 2017: 130,000 and 2018: 220,000, indicating with each figure the growth of its operations.
Bayard said the number of destinations and the capacity of its aircraft have continued to grow to expand its service in the Caribbean, since the company is the only one in the region that has in its Boeing 737 fleet that can connect the DR with Havana in less than two hours, at competitive prices and with the possibility of transporting more luggage.
The president of the airline referred in these terms while hoisting a cocktail on the occasion of celebrating the 500th anniversary of Havana.
Luis Ernesto Camilo, president of the Civil Aviation Board (JAC), participated in the Real Intercontinental Santo Domingo hotel. Luis Felipe Aquino, president of the Caribbean Tourism Exchange (BTC); Alejandro Cambiaso, president of the Dominican Association of Health Tourism (ADTS); travel agents, tour operators, among other personalities in the sector.
Remember that the airline operates between Santo Domingo and Havana twice a week (Monday and Thursday) and will soon open other Cuban destinations from the Dominican Republic.
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GraceKennedy reports improved third-quarter performance Sunday 10th November, 2019 – Jamaica Observer
The GraceKennedy Group is reporting improved performance after its nine-month period accumulating net profits of $3.71 billion, representing a marginal increase of 0.1 per cent or $2.04 million over the prior year period.
For the nine-month period, profit before other income was $2.88 billion, 30.2 per cent, or $668.1 million higher than that of the corresponding period last year, indicating an improved operating margin. The group also achieved revenues of $77.03 billion, representing an increase of $3.20 billion or 4.3 per cent compared to the similar period in 2018.
In a release on Thursday, the company's Group Chief Executive Officer (CEO) Don Wehby said they were happy to be reporting the results to shareholders, stating also that they expect to meet their financial targets for 2019.
“We remain focused and are now working on several new and ongoing improvement initiatives across the group, with a view to producing positive results and improving stockholder value,” he noted.
He said GraceKennedy is keeping itself agile and nimble, readying itself for future growth and transformation.
Andrew Messado, chief financial officer (CEO), also announced dividends of $0.40 per stock unit, payable on December 13.
“The group noted that its results were impacted by increases in non- operating expenses as a consequence of the adoption of the new accounting standard on leases — IFRS 16 — and the previously adopted IAS 19 post-employment benefit expenses. Both resulted in a combined negative impact of $489.0 million,” the report also stated.
SEGMENT PERFORMANCE
The report noted further that the food trading division recorded improved revenue and profitability, due to the performance in both its Jamaican and USA food businesses.
“GK's Jamaican foods distribution business experienced growth in both revenue and pre-tax profits, coupled with improved operating margins. Hi- Lo Food Stores showed improved operating performance over the corresponding prior-year period, and the investments in the Catherine's Peak brand of pure spring water and Consumer Brands Limited continue to perform well,” it stated.
The company also reported that its international branches continue to make steady progress and has contributed to the third quarter results.
“GraceKennedy Foods (USA) LLC continues to show improved performance when compared to the corresponding prior-year period, with revenue for the Grace brand growing by double digits — primarily driven by improved sales of Grace frozen patties, Grace Corned Beef, Grace Sardines and Grace Mackerel,” the release stated.
The company's recently opened US$5 million Grace/La Fe distribution facility in Woodbridge, New Jersey, is expected to drive increased operating efficiencies and improve staff and customer satisfaction, the release said.
“Grace Foods Canada Inc has strengthened its distribution presence in Western Canada with additional listings of Grace Jerked Chicken Wings and other frozen products in Sobeys, Canada's second-largest supermarket chain. Grace Foods UK is currently in the process of rolling out plans to re-launch Nurishment, as the company's performance was negatively impacted by the decline in sales of that brand,” the release further stated.
The Grace Kennedy Financial Group Division likewise reported growth in revenues and pre-tax profit for the nine-month period over the last period in 2018.
“In the banking and investments segment, First Global Bank (FGB) opened four Money Link bank agents in the quarter, bringing the total number of agents across Jamaica to eight. The insurance segment continues to perform well, with existing operations achieving growth and various new initiatives forming a base for future growth.”
The company however reported a marginal decline in the money services segment, both in revenue and pre-tax profits, when compared to the previous year.
Wehby however asserted that despite the hiccups, they remain committed to the goal of making GraceKennedy a global consumer group.
“Our results demonstrate that we are steadily making progress on that goal. We are grateful, as always, to our stockholders, employees and customers for their support on our journey,” he said.
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NCB boasts of $30.7 billon super profit and $1.6 trillion in assets for 2019 Sunday 10th November, 2019 – Jamaica Observer
National Commercial Bank (NCB) Group is boasting of its $30.7 billion super profit made for its just ended financial year, while its assets have climbed to $1.6 trillion.
NCB Group chief financial officer (CFO) and Deputy CEO Dennis Cohen, who made the announcement as he addressed Friday's Quarterly Investors Briefing, declared that 2019 was a pivotal year marked by significant milestones. These include the acquisition of a majority stake in Guardian Holdings Limited (GHL), a major financial services group providing life, health, property and casualty insurance, coupled with pensions and asset management services.
He disclosed that the positive performance for the financial year ended September 30 was bolstered by three main extraordinary items. Firstly the divestment of associate interest in Jamaica Money Market Brokers (JMMB) Limited, which resulted in a $3.3-billion gain from the disposal, as well as the sale of Advantage General Insurance Company at the end of the fourth quarter, realising a gain of $2.6 billion.
This was complemented by a $2.3- billion provisional gain on the revaluation of the associate interest in GHL following the acquisition of the majority interest in the third quarter. Cohen noted that with net profit amounting to $30.7 billion, shareholders will receive the bulk of this $29.6 billion, which represents an improvement of 6 per cent or $1.6 billion over the prior year.
Operating income for the financial year totalled $90.6 billion, a 30 per cent improvement over the prior year, with $31.3 billion of that total earned in the fourth quarter.
“Our banking and investment services and insurance activities contributed equally to this increase, which demonstrates the strength of our diversified business model,” the NCB Group CFO said.
The net result from banking and investment activities grew by 16 per cent or $10.3 billion to $76.1 billion. The growth was primarily as a result of net interest income increasing by $11.6 billion or 33 per cent. The growth in the Jamaican loan portfolio accounted for just under half of the increase, despite lower interest rates.
Net fee and commission income grew by 21 per cent or $3.3 billion. This improved performance stems from the consolidation of GHL coupled with growth in transactions in wealth and payment services.
These increases were partially offset by a decline in gains from the sale of debt securities and increased credit impairment provisions.
INSURANCE ACTIVITIES
The net result from insurance activities increased by $10.6 billion to $14.4 billion. The growth was attributable to the consolidation of GHL's insurance activities, which contributed $7.1 billion to the net insurance revenues.
This was coupled with the improved performance of NCB Insurance Company Limited's life insurance business, which benefitted from improved spread performance and reserve releases.
The group's assets totalled $1.6 trillion, a 65 per cent or $632 billion increase over the prior year.
The growth in the asset base was primarily due to the consolidation of GHL, with total assets of $580 billion. At September 30, 2019, consequent on the group's strategy of regional expansion, approximately half of the group's assets are now outside of Jamaica.
Non-performing loans for the group totalled $22 billion as at September 30, 2019 and represented 5.1 per cent of the gross loans compared to 4.8 per cent as at September 30, 2018. Seventy per cent of the increase in non-performing loans was due to Clarien, which NCB acquired controlling interests in and GHL.
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NCB a $1.6-TRILLION company Sunday 10th November, 2019 – Jamaica Observer
NCB Insurance Company (NCBIC) has launched a set of new pooled fund offerings, targeting local pension funds.
They include NCBIC Pooled Pension Real Estate Fund, which invests in a variety of real estate ventures, commercial & residential; NCBIC Pooled Pension Leases & Mortgage Fund, which invests in finance leases and commercial mortgages and NCBIC Pooled Pension Fixed Income Fund, which invests mainly in Government of Jamaica Bonds and other liquid assets.
The list of investment options is completed by the NCBIC Pooled Pension Equity Fund, which invests in listed equities on the local exchange and other recognised jurisdictions; NCBIC Pooled Pension Balanced Fund that invests in a variety of asset classes, including equities, fixed income, real estate, leases and mortgages and NCBIC Pooled Pension Money Market Fund, which invests mainly in short term government and commercial paper denominated in Jamaican dollars.
The funds will operate as a Type 1 Pooled Fund, which means it will be an investment fund, which solely invests the assets of more than one approved pension fund or approved retirement scheme. With its pooled funds suite of products, NCB Insurance offers pension funds a diverse portfolio of low risk options, so they can securely enjoy excellent returns on their investments.
Pooled funds are specially designed investment packages that allow institutional investors such as pension funds to pool their money with other institutional investors who have similar financial goals.
Speaking at Thursday's launch at the AC Hotel in Kingston, NCBIC Managing Director Vernon James explained, “Arising from this new investment offering pension fund managers can look forward to exciting rewards through the new pooled funds offering.”
With higher asset values in play, investment managers stand to earn more for their pension fund clientele. According to NCBIC, “Not only do these high-value products create enough yields to support multiple pension partners, but it also reduces costs.
NCBIC pooled fund partners benefit from reduced management costs as fees are split across participants. In addition to the stability offered by these larger secure assets, risk is further reduced by the diversity within the pool.”
Fund managers have the opportunity to diversify their investments across equity, money markets, real estate and fixed income products. With NCBIC pooled funds, managers can respond to the rising demand for investment options that match the more active lifestyles of modern retirees.
NCBIC Manager of Pensions, Client Management & Business Development Desmond Johnson, who also spoke at the launch, commented on the new suite of pension investment options declaring, “The move creates a boon for investment bodies. Today more than ever Fund managers can build greater value for their clients through investment. The pooled fund option gives investors a chance to get consistently higher returns for pensioners. Furthermore, we are offering this with the stability that retirees want at this crucial time of life.”
MOTIVATION IN LAUNCHING
Johnson sought to explain the motivation behind launching the new product offering stating, “We have seen a rise in the demand for higher value pension products and our pooled fund product provides a solution for pension fund managers who strive for the best on behalf of their customers.”
NCBIC manages Type 2 Pool Funds, which under the Pensions Act 2006 are for the specific use of approved superannuation funds and individual retirement schemes. These funds have been consistently paying off for shareholders and have produced average historical gross returns on assets under Management of 16.91 per cent per annum since 2009.
Sunday Finance questioned Johnson about whether the new pooled funds are allowed to invest in fast growing economies like Guyana. He answered in the negative explaining that based on the rules laid down by the Financial Services Commission, the funds are precluded from investing directly in places such as Guyana.
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Ground broken, contract signed for Dr Kenneth Baugh Health Centre Saturday 9th November, 2019 – Jamaica Observer
GROUND was broken and the contract signed on Wednesday for construction of the Dr Kenneth Baugh Health Centre in the rural community of Point Hill in St Catherine West Central.
Approximately $28 million is being provided by National Health Fund (NHF) for the project.
The 1,453-square-foot single-storey building will include a registry for record-keeping, an immunisation area, antenatal and postnatal facility, a lunchroom, dressing room, dental services and a doctor's office.
The Point Hill Health Centre is being demolished to accommodate the new facility, which is in honour of the late former deputy prime minister, member of parliament and medical doctor.
The type three health centre has been operating from the Point Hill Community Centre for some time, as the building had become deteriorated.
Minister of Health and Wellness Dr Christopher Tufton, in his remarks at the ground-breaking, said that the project is a fitting tribute to the late former MP, who was always concerned about the health and welfare of the residents in the constituency.
NHF Chief Executive Officer Everton Anderson said the project “is another sign of development for the health sector and a further step in improving the infrastructure for the delivery of health services throughout Jamaica, as we raise the level of care provided in communities”.
He added that renaming the health centre after Dr Baugh is one way the nation gives back to a stalwart medical practitioner, who was determined to assist the hundreds of people living in St Catherine West Central.
“I remember him as being so diplomatic, so calm in his disposition. Every time I encountered him, it was a pleasure speaking to him,” he said.
He noted that the NHF has done the design and will help to manage the project.
Meanwhile, health practitioners at the Point Hill Health Centre are welcoming the construction of the new building.
“I'm very happy about this new initiative,” said registered midwife Sharon Babbitt Edwards.
“The people of Point Hill have been hoping for improved services, and we're happy and we're looking forward to the new facility,” she added.
Community health aide Francell Willis said the project “will benefit the community is a very big way, because people have been travelling to Kitson Town [and] Spanish Town to get services such as dental care. So this is a welcomed initiative”.
Costley's Construction is undertaking the project, which is expected to be completed within six months after construction commences.
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Sagicor Group gains from core business Friday 8th November, 2019 – Jamaica Gleaner
Sagicor Group Jamaica earnings spiked 18 per cent in the third quarter, due to growth in its core operation.
Profit for the insurance conglomerate improved to $4.17 billion in the September quarter.
“It has been a very good quarter for us,” said President & CEO Christopher Zacca at a briefing on the results. “The core business is contributing to profits rather than external gains,” he said.
Over nine months, Sagicor’s profit was up 23 per cent at just under $11 billion.
The conglomerate's annualised return on equity was estimated at 18 per cent. Sagicor Group closed the quarter with equity of $119.6 billion and total assets $458 billion. That’s up $73.4 billion and $373.1 billion, respectively, a year earlier.
Zacca said the assets and liabilities of general insurer Advantage General Insurance Company was added to the financials but did not impact the quarter’s results because of the date it was booked. “Advantage was added on September 30, so you wouldn’t have any profit, maybe a $1,” he said.
Sagicor Group was the lead in an investor group that bought Advantage General from NCB Capital Markets for US$50.5 million. It took a 60 per cent stake. The insurance conglomerate also holds hotel assets – Doubletree Hotel in Orlando Florida and Jewel Grande in Jamaica – which brought in revenue of $1.08 billion for the quarter.
Holder of hotel assets, Sagicor Real Estate X Fund, was formerly an associate company, but is now categorised as a subsidiary, which led to the addition of its revenues to the group's.
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