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Latest Rating Actions by CariCRIS
▪ The Government of the British Virgin Islands’ rating reaffirmed at CariAA- ▪ Venture Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB- ▪ Eastern Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB- ▪ Trinidad and Tobago Unit Trust Corporation’s initial rating assigned at CariAA ▪ Massy Holdings Ltd. rating reaffirmed at CariAA+ ▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA ▪ National Flour Mills Limited’s rating reaffirmed at CariA- ▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO) ▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB- ▪ Government of Barbados’s local currency rating upgraded to CariBB ▪ PanJam Investment Limited’s initial rating assigned at CariBBB+ ▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+
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As we expand our operations through the Caribbean, CariCRIS is seeking to recruit a high-calibre credit risk professional to join our team in the following position:
Research & Fixed Income Analyst
Position Summary
Conducts research on the key sectors and industries driving the economies of the Caribbean and compiles sector studies and industry reports. Also carries out valuation of fixed income securities using CariCRIS’ proprietary valuation models.
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• First degree in Finance/Economics/Business Management from an accredited University • Postgraduate qualification/specialization in Finance such as an MBA, or M.Sc. and/or studying toward the CFA charter would be an asset • 2-3 years’ professional research experience, preferably in the financial sector • Good working knowledge of the financial and capital markets of the Caribbean • Prior experience in the valuation of regional fixed income securities would be an asset
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Only short-listed applicants will be acknowledged.
CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.
REGIONAL
Trinidad and Tobago
US$71m to build HDC apartments in heart of Port of Spain, Sando... ' 6,000 housing units by 2020' Million-Dollar Housing Development Corporation (HDC) apartments will be constructed in the heart of Port of Spain and San Fernando for low- and middle-income earners. Government is hoping the construction project will significantly reduce the deficit in the local housing industry and will regenerate the urban landscape in Port of Spain and San Fernando.
Imbert: Up to $700m from tax amnesty ...billions stuck at Tax Appeal Board Finance Minister Colm Imbert said yesterday he has set a target to raise $500 million from the three-month tax amnesty that begins in the middle of June, but 'it is quite likely that we will exceed that', and the Government's revenue from the measure could be as high as $600 or $700 million.
Index Fund jumps $0.82 Overall market activity resulted from trading in 12 securities of which five advanced, five declined and two traded firm.
Former energy minister Ramnarine: T&T gets best value at Point Lisas, not LNG The people of Trinidad and Tobago get the best returns on their natural gas through companies operating at the Point Lisas industrial estate, and not at the Atlantic liquefied natural gas (LNG) plant, a former energy minister confirmed on Friday.
PSA gives Phoenix Park Gas deadline Public Services Association (PSA) president Watson Duke is calling for immediate action on issues affecting workers at the Phoenix Park Gas Processors Limited (PPGPL), which includes an employee appraisal system.
Barbados
Barbados removes visa restrictions for some countries Barbados has removed visa requirements for several countries as government seeks to increase the number of tourist arrivals, and make it easier for investors to do business with this island.
Jamaica
Shaw launches new trade information portal Minister of Industry, Commerce, Agriculture and Fisheries Audley Shaw has launched the Jamaica Trade Information Portal (JTIP), the first of its kind in the English-speaking Caribbean.
Antigua and Barbuda
Antigua govt still optimistic over saving loss-making LIAT The Antigua and Barbuda government has reaffirmed its position to ensure the survival of cash-strapped regional airline LIAT, even as Barbados has signalled 'that ownership of the shares of the airline is a burden'.
British Virgin Islands
Cruise Lines commit to 1000 Jobs Initiative - Premier Fahie -Says huge business incentives for joining; Official launch soon Following the launch postponement of the Virgin Islands Party (VIP) 1000 Jobs in 1000 Days initiative on Tuesday, May 14, 2019, Virgin Islands (VI) Premier and Minister of Finance, Hon Andrew A. Fahie (R1) has assured that the programme is still on track and revealed that several major companies are already lined up for the government partnership.
2nd & 3rd readings of Immigration & Passport (Amendment) Act ‘deleted’- Premier Andrew A. Fahie said he has listened to the will of the people The Second and Third Readings for the Bill entitled Immigration and Passport (Amendment) Act has been pulled from the Order Paper at the Third Sitting of the First Session of the Fourth House of Assembly (HoA) of the Virgin Islands today, May 17, 2019.
British Virgin Islands Continued
Banco Popular to open on VG in August 2019- Premier Fahie - said residents of VG are facing many hardships due to lack of physical bank VI- Residents and other persons on Virgin Gorda will have access to much needed banking facilities by August of 2019, according to Premier and Minister of Finance Honourable Andrew A. Fahie (R1) during the Third Sitting of the First Session of the Fourth House of Assembly today, May 17, 2019.
Dominica
Dominica establishes diplomatic relations; signs visa waiver agreement with Ukraine On the 15th of May 2019, the Commonwealth of Dominica concluded the signing of a Visa Waiver Agreement with Ukraine at a brief ceremony at the Dominica High Commission in London. Acting High Commissioner, Janet Charles joined by her counterpart, Her Excellency Natalia Galibarenko, Ambassador of Ukraine signed an agreement on the exemption of visa requirements. This agreement will allow citizens visa free access to each other’s country
The Dominican Republic
Dominican Republic fares well in public-private partnerships: study In the most recent Infrascopio 2019 report, developed by the Economist Intelligence Unit and the Inter-American Development Bank (IDB), the Dominican Republic ranks 16th out of the 21 countries in Latin America in developing public-private partnerships (APP).
Starbucks coming to the Dominican Republic Starbucks announced today that it has reached a license agreement with Green Star Partners, an alliance that combines decades of experience nationally and internationally in multiple sectors.
Coral reefs give Dominican Republic US$1.14B yearly Aimed at restoring biodiversity with the value it deserves, several Dominican Gov. agencies and NGOs on Thurs. presented the study “Identification and valuation of the ecosystem services of coral reefs.”
The Dominican Republic Continued
Bahía de las Águilas Master Plan ‘ready’ by June The master plan to launch Bahía de las Águilas and Dominican Republic’s South region as the new tourist pole is expected to be ready in June.
Grenada
Implementation of CARCIP Telecoms Project Grenada and its dependencies will soon boast of significant improvements in the quality of broadband access which will be facilitated under the Caribbean Regional Communications Infrastructure Program CARCIP.
Venezuela
Gas station lines reappear in Venezuela as refinery halts, fuel imports plunge Gas station lines reappeared across oil-rich but crisis-stricken Venezuela this week as gasoline imports plunged and the country’s second-largest oil refinery halted operations.
Venezuela's ad-hoc PDVSA board begins payment on Citgo-backed 2020 bond Venezuela’s ad-hoc board of directors for state oil company PDVSA, appointed by opposition leader Juan Guaido, said on Thursday it has made an interest payment on its bond maturing in 2020, delaying uncertainty over its crown jewel U.S. asset.
Other Regional
Delta’s new twice-daily service to Miami brings new winter-getaway opportunities Delta’s steady growth in Boston continues with the addition of new twice- daily service to Miami beginning this December, marking the 52nd nonstop destination for the global airline and its partners from Boston Logan International Airport.
Other Regional Continued
Foreign and Commonwealth office announces new governor designate for Turks and Caicos Islands Nigel Dakin will replace Dr John Freeman as the next governor of the Turks and Caicos Islands (TCI), it was announced by the United Kingdom’s Foreign and Commonwealth Office.
INTERNATIONAL
United States
Goldman Sachs in talks to buy B&B Hotels from PAI Partners Goldman Sachs is in talks to buy B&B Hotels from private equity firm PAI Partners, the companies said on Monday, in a deal which an earlier report from the Financial Times said could be worth 1.9 billion euros ($2.1 billion).
U.S., China bicker over 'extravagant expectations' on trade deal China accused the United States on Monday of harboring “extravagant expectations” for a trade deal, underlining the gulf between the two sides as U.S. action against China’s technology giant Huawei began hitting the global tech sector.
Coca-Cola ends plan to refranchise Africa bottling unit, keeps majority stake Coca-Cola Co said on Monday it had dropped plans to refranchise its Africa bottling business, Coca-Cola Beverages Africa (CCBA), and would instead keep its majority stake in the unit for the time being.
Stock futures drop on concerns over spiraling fallout of Huawei crackdown U.S. stock index futures fell on Monday, as fears over the impact on major technology companies from Washington’s crackdown on China’s Huawei Technologies added to concerns over worsening trade dispute between the world’s two biggest economies.
United Kingdom
British ministers say the City of London will survive in a post-Brexit world Britain’s vast finance industry will emerge largely unscathed from Brexit and retain its position as one of the world’s top financial centers, ministers in Prime Minister Theresa May’s government said on Monday.
Europe
European financial system remains fragile, fragmented The European financial system remains fragile and fragmented due to the close relationship between sovereigns and banks, European Central Bank policymaker and Governor of the Bank of Spain Pablo Hernandez de Cos said on Monday.
Banks have agreed in principle on capital for new fund The biggest Czech banks have agreed in principle to contributing starting capital of 6 billion crowns ($259.92 million) to a proposed national development fund, Prime Minister Andrej Babis told reporters on Monday.
Chipmakers weigh on European markets as Huawei fallout spreads European stock markets struggled in the face of a U.S. crackdown on China’s Huawei Technologies on Monday after a report that German- based chipmaker Infineon had halted shipments to Huawei.
China
China's NetEase to launch first official Pokemon game in China Chinese gaming giant NetEase said on Monday that it would partner with The Pokemon Company and Marvel to release new games for the domestic market, as it looks to add more foreign content to its roster and shore up revenue.
Smartphone maker Xiaomi's first-quarter revenue jumps 27%, beats estimates Chinese smartphone maker Xiaomi Corp reported better than-expected quarterly revenue on Monday due in part to steady growth in sales outside its home market.
India
Indian stocks see biggest gain since September 2013; bonds, rupee rally Indian stocks saw their biggest single-day gain since September 2013 on Monday while the rupee and bonds rallied after exit polls showed Prime Minister Narendra Modi was set to win a second term with an even bigger mandate than in 2014.
India's BJP preparing for return to power as exit polls predict victory India’s ruling Bharatiya Janata Party (BJP) is to meet coalition partners to discuss a new government, two BJP sources said on Monday, after exit polls predicted a clear general election victory for the party led by Prime Minister Narendra Modi.
Global
Oil rises after OPEC+ says to keep output cuts Oil hit multi-week highs on Monday after OPEC indicated it was likely to maintain production cuts that have helped boost prices this year, while escalating Middle East tensions provided further support.
Stock markets slide as worries about Huawei fallout mount Stock markets weakened on Monday as concerns mounted about an escalating fallout from a U.S. crackdown on China’s Huawei Technologies.
Dollar holds firm as market awaits Fed minutes; Aussie shines The dollar held onto last week’s gains on Monday as investors waited for Fed minutes that may give more clues on what prompted U.S. policymakers to strike a broadly neutral stance this month.
Tainted oil hits Russian revenues but rouble immune for now Russia suffered a $1 billion shortfall in export revenues in the first two weeks of May after the discovery of contaminated oil disrupted pipeline flows to Europe, a Reuters calculation showed.
US$71m to build HDC apartments in heart of Port of Spain, Sando... ' 6,000 housing units by 2020' Saturday 18th May, 2019 – Trinidad Express Newspaper
Million-Dollar Housing Development Corporation (HDC) apartments will be constructed in the heart of Port of Spain and San Fernando for low- and middle-income earners. Government is hoping the construction project will significantly reduce the deficit in the local housing industry and will regenerate the urban landscape in Port of Spain and San Fernando.
The city housing project is expected to take two years to complete and will be built by Chinese company China Gezhouba International Engineering Company Ltd (CGGC), using local labour and materials.
Speaking yesterday at the signing ceremony between the HDC and CGGC at the Hyatt Regency (Trinidad) hotel in Port of Spain, Housing Minister Edmund Dillon said US$71 million will be spent to construct 204 two and three-bedroom apartment units at South Quay, Port of Spain, and another 235 two and three-bedroom apartment units at Lady Hailes Avenue, San Fernando.
The cost per unit, according to Express calculations, is $1.1 million.
First phase of 5,000 apartments
Dillon said the US$71 million project was the first phase of a collaboration with the Chinese company to construct about 5,000 apartment units at specific sites across the country.
For phase one of the project, CGGC will be responsible for the financing, design, procurement and construction of the housing blocks and the associated infrastructure for these developments.
This first phase of the project, which will span two years, is estimated to cost $US71,739,411.
Dillon described the signing with CGGC as a 'defining moment for the housing construction industry in Trinidad and Tobago'.
He noted 180,000 citizens were on the database waiting for an HDC home.
He said while no Government was able to satisfy the huge demand for public housing, Government had to ensure that alternative measures were put in place so that low and middle-income families who required the State's assistance for shelter can have an opportunity.
He said the HDC remained committed to providing affordable, well- designed housing accommodation, adequate infrastructure and amenities for low and middle-income citizens.
'We have been able to define our limit to an extent. We have to adopt a public and private sector and Government approach,' Dillon said.
He said Government was optimistic about constructing 6,000 housing units by 2020.
Among those present at the signing were HDC managing director Brent Lyons, CGGC general manager Lui Huailiang, Ambassador of the People's Republic of China Song Yumin, Attorney General/ Member of Parliament (MP) for San Fernando West Faris Al-Rawi and Port of Spain South MP Marlene McDonald.
Demand for 180,000 homes
Delivering an overview of the project, Lyons said the HDC was working extra hard to meet the demand for 180,000 homes.
He noted while it was 'almost impossible', they were using every opportunity to reduce the numbers.
Both Al-Rawi and McDonald welcomed construction of the homes.
McDonald said: 'Tremendous. As Prime Minister (Dr Keith Rowley) says: 'A city is a living thing. You have to breathe the life into the city. Taking people from a certain type of living changes their psyche.'
Al-Rawi said San Fernando was a city which had been neglected and he was 'basking in the glow of development'.
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Imbert: Up to $700m from tax amnesty ...billions stuck at Tax Appeal Board Saturday 18th May, 2019 – Trinidad Express Newspaper
Finance Minister Colm Imbert said yesterday he has set a target to raise $500 million from the three month tax amnesty that begins in the middle of June, but 'it is quite likely that we will exceed that', and the Government's revenue from the measure could be as high as $600 or $700 million.
'The revenue from tax amnesties really helps in terms of budgetary support and in earning additional revenue for the Government,' Imbert told a news conference at his Port of Spain office yesterday.
He said the upcoming tax amnesty must be seen in its proper context, which is the imminent debate on the Trinidad and Tobago Revenue Authority (TTRA) Bill.
'We thought it was wise to clean up these arrears of taxes that are in the system, so that the Revenue Authority can start with as clean a sheet as possible,' said Imbert.
On the issue of tax avoidance, the minister said anyone who deals in cash could be among those who do not declare all of their income.
He said the way for the Revenue Authority to deal with tax avoidance would be increased enforcement of QUESTION TIME: Finance Minister Colm Imbert addresses members of the media during yesterday's discussions, responding to any questions relating to the 2019 mid-year budget review at the Minister's Conference Room, Level 8, Finance Building, Eric Williams Financial Complex, Independence Square, Port of Spain. -Photo: STEPHEN DOOBAY existing laws and regulations and that the transition to an Revenue Authority would make it easier to recruit suitable staff.
'One of the other advantages of a statutory authority, as opposed to a mainstream government department, is that you would be able to get the kinds of skillsets you need, the level of skills needed as well as the number of employees with the qualifications required,' Imbert said.
Asked whether T& T has had too many tax amnesties in the last ten years, the minister said that was a problem that governments faced: the belief that sooner or later governments would declare a tax amnesty when they need cash flow.
He said the fact of the matter is that the Government is about to implement the TTRA. Imbert said there are billions of disputed tax dollars that are currently being held up before the Tax Appeal Board.
He explained that matters go the Tax Appeal Board on appeal from assessments made by the Board of Inland Revenue, which is a process that can go on for six years, by law.
'So what you often find is that large taxpayers go to the Tax Appeal Board in the sixth year...because if you don't have your matter settled within six years you have to pay or go to the Tax Appeal Board,' Imbert said, adding that there are matters that are stuck in the system-both at the Board of Inland Revenue and at the Tax Appeal Board-that are in the billions of dollars.
'What we found in previous amnesties is that people withdraw their matters from the Tax Appeal Board. They make a commercial decision to withdraw their matters...because if they lose there, they have to pay interest and penalties.
'You find during an amnesty that quite a few people withdraw their matters from the Tax Appeal Board and pay the taxes. And quite often you have settlement discussions between large taxpayers and the Inland Revenue Division as well,' said Imbert.
The minister said he did not get any resistance 'per se', from the Public Services Association, the trade union that represents public servants.
He said the PSA is mainly concerned with successorship, such that the trade union's representation of workers in the public service would be transferred to the new institution.
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Index Fund jumps $0.82 Saturday 18th May, 2019 – Trinidad Express Newspaper
Overall market activity resulted from trading in 12 securities of which five advanced, five declined and two traded firm.
The Composite Index declined by 0.31 points (0.02 per cent) to close at 1,352.80. The All T& T Index declined by 0.18 points (0.01 per cent) to close at 1,799.03.
The Cross Listed Index declined by 0.0.
Trading activity on the first tier market registered a volume of 346,963 shares crossing the floor of the Exchange valued at $4,789,742.19.
Sagicor Financial Corporation was the volume leader with 259,150 shares changing hands for a value of $2,362,954.85, followed by Guardian Holdings Ltd with a volume of 46,291 shares being traded for $856,380.50. TTNGL contributed 20,539 shares with a value of $563,511, while NCB Financial Group added 6,440 shares valued at $54,318.50.
Calypso Macro Index Fund registered the day's largest gain, increasing $0.82 to end the day at $15.82. Conversely, TTNGL registered the day's largest decline, falling $0.48 to close at $27.44.
On the mutual fund market 2,677 shares changed hands for a value of $46,333.07. Calypso Macro Index Fund was the most active security, with a volume of 2,127 shares valued at $33,649.83. Calypso Macro Index Fund advanced by $0.82 to end at $15.82. CLICO Investment Fund advanced by $0.01 to end at $23.06.
The SME market did not witness any activity. CinemaOne remained at $9.95.
The USD equity market did not witness any activity. MPC Caribbean Clean Energy remained at US$1.
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Former energy minister Ramnarine: T&T gets best value at Point Lisas, not LNG Saturday 18th May, 2019 – Trinidad Express Newspaper
The people of Trinidad and Tobago get the best returns on their natural gas through companies operating at the Point Lisas industrial estate, and not at the Atlantic liquefied natural gas (LNG) plant, a former energy minister confirmed on Friday.
London-listed companies Royal Dutch Shell and BP plc are the majority owners of the four assembly lines, or 'trains' as they are called in the industry, of LNG for export from their exclusive port at Point Fortin. (Exclusive as in for Atlantic's use only.) Kevin Ramnarine, a former energy minister during the People's Partnership coalition government, was the featured speaker at a breakfast seminar at the Couva/ Point Lisas Chamber of Commerce on Camden Road in Couva.
President of the Couva/Point Lisas Chamber Ramchand Rajbal Maraj, himself a United National Congress (UNC) councillor, opened the packed- to-capacity seminar noting, 'Why we all are present here at this most important conference this morning. We are here to ascertain what is taking place in the energy sector. It is only recently that Claire Fitzpatrick, regional BP president, tried to explain to the nation-al population the impacts and future implications for T& T' of 'challenges to our supply of gas to Train 1 of Atlantic LNG after 2019.'
More spin-off benefits for the country Asked during the question and answer (Q& A) segment whether it is true that the country gets the best value from its natural gas at Point Lisas, and not from LNG exports, Ramnarine responded: 'According to the Poten & Partners Gas Master Plan, the country gets the best bang for the natural gas molecule from ammonia, which is Point Lisas. I'd also add that there are a number of socio-economic studies that show that Point Lisas has more spin-off benefits for the economy.' He later explained this meant more jobs and development for T& T.
Still answering that first question, Ramnarine added: 'There is a bigger question and a bigger debate - and I know a lot of Point Lisas folks are here - that people have been raising with me over the last couple days since I've been preparing for this, (which) was that decision back in 2004 to build a fourth (LNG) train. Now that we are experiencing what is now almost a decade of natural gas shortages, people are beginning to say, you know, should we have built a train that consumes roughly onefifth of the country's natural gas production, which is Train 4. I'm not saying yea or nay.
I'm saying it is something that we need to have a discussion about in Trinidad, but according to the Gas Master Plan, the country gets the best value for its natural gas with ammonia. In sec-ond place was methanol. In third place was LNG, and I think steel was a bit down the ladder.'
He said: 'So yes, the country gets better value in Point Lisas.'
Atlantic LNG profit margin
Also during the Q& A, Rampersad Motilal, who described himself as a retiree, asked: 'My back- of- theenvelope computation is that the LNG Train 1, which is the topic that is in the public do-main at this time, consumed approximately three trillion cubic feet (3 tcf) of gas over its 20- year life, and I'll be interested to find out from the (former) minister (Ramnarine) what was the average netback price (in layman's terms, Atlantic LNG profit margin) of that gas, compared to what was the benchmark price that was prevailing in the marketplace over that period, and the second question, I would ask is if he thinks that gas could have been more effectively utilised for the benefit of T& T, and if so, what is the urgency or the rationale for extending the Train 1 contract?'
Ramnarine said he did not have the netback numbers at the top of his head, but reiterated his admission that the country does get better value when it sends its gas to Point Lisas. He proceeded to give an example of the Egyptian government having instructed BP and operators in Egypt, to stop exporting Egypt's LNG, to ensure the longevity of its own manufacturing sector, at the time, reliant on natural gas for electricity. He said he was not saying that is what T& T has to do necessarily, but he agreed that one must take care of one's domestic market.
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PSA gives Phoenix Park Gas deadline Saturday 18th May, 2019 – Trinidad and Tobago Newsday
Public Services Association (PSA) president Watson Duke is calling for immediate action on issues affecting workers at the Phoenix Park Gas Processors Limited (PPGPL), which includes an employee appraisal system.
Warning that PPGPL was not Petrotrin, or a sugar cake or toolum factory, Duke called on the company's management to hold discussions with the union to address this and other issues affecting workers.
Duke spoke to the media outside the company's front gates in Pt Lisas, earlier on Sunday.
He gave the company until June 7, to deal with the issue.
Duke said PPGPL's management, in 2017, took a decision to supervise workers' performance appraisals, which resulted in a downgrade for workers.
“No chairman, no president has the right to downgrade an employee's performance appraisal when they are not the direct supervisor. “It is way off base. It is wrong and it is a level of curious behaviour," he said. The issue is currently before the Ministry of Labour for conciliation and both parties are expected to meet again in July.
He said the union was open to negotiations to settle the matter, since, according to him, workers were losing out on increases which they would have received on their appraisals.
“We are open to negotiations, and indeed the matter can be solved easily before it goes to court, but you must engage the PSA,” Duke said.
He said it was because of the workers, the company was able to record an after-tax profit of some US$82million in 2017 and US$92 million the following year.
“Do not take the workers lightly. Do not take the PSA lightly. You have until the next two-and-a-half weeks to settle these grievances," he warned.
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Antigua govt still optimistic over saving loss-making LIAT Saturday 18th May, 2019 – Trinidad and Express Newspaper
The Antigua and Barbuda government has reaffirmed its position to ensure the survival of cash-strapped regional airline LIAT, even as Barbados has signalled 'that ownership of the shares of the airline is a burden'.
A statement issued after the weekly Cabinet meeting here said that the 'choices' made by Prime Minister Gaston Browne to save the airline 'rather than collapse or downsize the regional carrier' had been discussed.
It said 'while LIAT employees are encouraging the Antigua and Barbuda leadership to forge ahead, two journalists from a regional newspaper have been planting critical stories about the valiant Antiguan attempt to save LIAT'.
LIAT currently employs more than 600 people and operates 491 flights weekly across 15 destinations and the Cabinet statement noted that more than '400 LIAT employees are stationed in Antigua'. LIAT's major shareholders are the governments of Antigua and Barbuda, Barbados, Dominica, St Vincent and the Grenadines and Grenada. On Wednesday, Barbados Prime Minister Mia Mottley, addressing a luncheon of the Barbados Employers Confederation (BEC), stopped short of saying whether her administration would dispose of its 49 per cent interest in the airline, declaring instead that she will not be having any discussions in the public domain.
'Let's just say we agree on the mission, and the mission is that there must always be reliable, affordable access for travel in the region as there must be nationally. And I can assure you and the country that we are working on this every day.
'But you also have to take the reality of an existence as you find it and then determine whether the modality that you have is the best mechanism by which to deliver on that objective,' she added.
But the Cabinet statement here noted that 'LIAT also generates significant revenue for Barbados, whose leader signalled that ownership of the shares of the airline is a burden; selling aircraft and downsizing LIAT is in that nation's best interest, the leader suggested'.
Last week, Browne had informed his Cabinet colleagues that he had written to Mottley on the LIAT restructuring plan.
Earlier this month, St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves said that the shareholder governments had agreed to give further consideration to a proposal by Browne regarding the future direction of the airline.
Gonsalves told the Caribbean Media Corporation (CMC) that Antigua and Barbuda had made an oral presentation to the shareholders meeting and would present a written document over the next few days.
Gonsalves said he hopes that the proposal from Antigua and Barbuda would be discussed by the shareholders 'before the end of May is out'.
Antigua and Barbuda currently holds 34 per cent of the shares and if it succeeds in convincing Bridgetown to part with its LIAT shares, would have 81 per cent of the airline that serves 15 destinations in the region.
Grenada recently became the latest shareholder in LIAT and Gonzales has confirmed that St Kitts-Nevis had responded positively to the call for raising US$5.4 million to help the airline deal with its current financial problems.
St Lucia Prime Minister Allen Chastanet has said that Castries would not contribute any funds unless there's a significant change to the airline's structure. The statement issued after the Cabinet meeting here noted that 'St Lucia and other island- countries that benefit from LIAT are being asked to share in the burden of carrying LIAT'.
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Dominica establishes diplomatic relations; signs visa waiver agreement with Ukraine Friday 17th May, 2019 –Dominican News Online
On the 15th of May 2019, the Commonwealth of Dominica concluded the signing of a Visa Waiver Agreement with Ukraine at a brief ceremony at the Dominica High Commission in London. Acting High Commissioner, Janet Charles joined by her counterpart, Her Excellency Natalia Galibarenko, Ambassador of Ukraine signed an agreement on the exemption of visa requirements. This agreement will allow citizens visa free access to each other’s country.
Preceding the signing of the visa waiver agreement, a joint communique establishing diplomatic relations between the Commonwealth of Dominica and Ukraine was signed on the 25th of April during a brief ceremony at the Embassy of Ukraine by the two diplomatic envoys.
Acting High Commissioner Charles informed Ambassador Galibarenko that this is the beginning of a new relationship between Dominica and Ukraine and an opportunity for both countries to forge partnerships and cooperation in areas of mutual interests, such as investment and tourism promotion. Both diplomatic envoys agreed to work more closely and to forge partnerships in these and other areas.
On behalf of the Minister of Foreign and CARICOM Affairs, the Honourable Francine Baron, and the Government of Dominica, Acting High Commissioner Charles expressed her government’s ongoing commitment to build strong and enduring bonds of friendship with Ukraine and Europe Ukraine is situated in Central-Eastern Europe with a population of 42.5 million. It is the 46th largest country in the world.
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Cruise Lines commit to 1000 Jobs Initiative - Premier Fahie -Says huge business incentives for joining; Official launch soon Friday 17th May, 2019 – Virgin Island News
Following the launch postponement of the Virgin Islands Party (VIP) 1000 Jobs in 1000 Days initiative on Tuesday, May 14, 2019, Virgin Islands (VI) Premier and Minister of Finance, Hon Andrew A. Fahie (R1) has assured that the programme is still on track and revealed that several major companies are already lined up for the government partnership.
The Premier was at the time making announcements at the Friday, May 17, 2019, Third Sitting of the First Session of the Fourth HoA of the VI, when he pointed to companies like Royal Caribbean and Carnival Cruises as having already indicated interest to provide more local jobs.
‘Every posse must work’
“Mr Speaker when we were in the midst of the campaign, we declared our known slogan in the Caribbean, ‘Every posse must work’ and while we captured the Caribbean vernacular to explain in one phrase, a serious policy position, we were determined that this was not relegated to a catchphrase tailored for a short campaign,” Hon Fahie told the House.
The 1000 Jobs in 1000 days promise came as part of the VIP Manifesto 2019, prior to the General Elections on February 25, 2019.
According to the Premier, he envisaged most of the jobs would be available in the tourism sector, which would lead to greater encouragement and promotion of investments, expanding existing service, as well as rebuilding the Territory’s infrastructure
“Mr Speaker it is through work we will empower our people and it is through work we will expand this economy. Work is part of a broad Government policy to broaden the consumer base so that people here can deliver goods and services, the earnings for which can be used for greater investments in our children and their future,” he further implored.
Big Incentives
The Premier noted that to qualify for the initiative, “interested locally based businesses among others must register with the Premier’s office to be part of the programme.”
“Among those already indicating they will come on board are our partners at Carnival Corporation, Royal Caribbean and some of our other cruise lines. They have agreed to explore the opportunities available to partner with the BVI on the employment initiative,” he said.
Further, the premier told the House that other businesses like Banco Popular, Riteway Food Markets and InterCaribbean Airways are more companies committed to joining the initiative.
“After a year of employment of people under this programme, the Government of the Virgin Islands through the Premier’s Office will pay a one-off 10% of the annual salary of the locals employed by the private sector,” he noted as part of the business incentive for hiring and training local workers.
Building Partnerships
“The most exciting thing about all of this is the example of the partnership we seek to build involving the government, local business and the people working together,” which according to Hon Fahie will boost the self- esteem of locals and help them take their rightful place in society.
While not providing a new date, and noting that more partnerships still have to be ironed out, Hon Fahie also revealed that the 1000 Jobs in 1000 Days initiative will be officially launched in a few days.
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2nd & 3rd readings of Immigration & Passport (Amendment) Act ‘deleted’- Premier Andrew A. Fahie said he has listened to the will of the people Friday 17th May, 2019 – Virgin Island News
The Second and Third Readings for the Bill entitled Immigration and Passport (Amendment) Act has been pulled from the Order Paper at the Third Sitting of the First Session of the Fourth House of Assembly (HoA) of the Virgin Islands today, May 17, 2019.
The Amendments were necessary for the successful implementation of the ‘fast track’ Residency and Belongership Status Regularisation Initiative, introduced by the Government of the Virgin Islands for expats living and working in the Virgin Islands for 15 years and more.
The removal of the Second and Third Readings comes amid calls from locals expressing strong opposition to the Bill being “rushed” through Parliament and wanted Premier and Minister of Finance Honourable Andrew A. Fahie (R1) to have more consultations on the regularisation programme.
Persons had gone has far as starting petitions and even picketing in front the House of Assembly today, May 17, 2019.
Gov't willing to listen more
According to Premier Fahie, his Government is willing respect the voices of the people of the Virgin Islands so that common grounds can be found.
“And as the leader of this Territory, after sitting with my colleagues and scratched it out, have decided to give more time this week to listen more, to hear more solutions but to also come up with a common ground on the way forward.
“Hence, Mr Speaker, you amend the order paper to delete item viii (7) and viii (8) from the Order of the Day so that we can have further consultations.”
Premier Fahie said he was proud to have a country such as the Virgin Islands where there can be fruitful discussions about the immigration matter being tackled.
“As a leader of the Territory I believe in you always have to listen to the views of the people and if we need to pull back the throttle a little bit to listen a little more and hopefully come up with a product that everyone can live with, and if not at least most persons can because you can never please everyone.’
“Get ready for fruitful discussions”
The Leader of Government Business said he has spent a lot of time on the issue, has prayed hard on it, contemplated, taken a lot of advice, “and it is these times you have to go to God for the most wisdom on how to move forward in the best interest of your people and of the Territory as a whole.”
He urged the people of the Virgin Islands to “get ready this week” for some fruitful discussions “because we are going to do it this week and we are going to do it right without us getting in any divide or any more divide.”
He also encouraged persons to “come with a mindset to unite the Virgin Islands because only when we unite the Virgin Islands can we build a strong Territory. I am a firm believer that we can’t fix our country unless we fix our people.”
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Banco Popular to open on VG in August 2019- Premier Fahie - said residents of VG are facing many hardships due to lack of physical bank Friday 17th May, 2019 – Virgin Island News
VI- Residents and other persons on Virgin Gorda will have access to much needed banking facilities by August of 2019, according to Premier and Minister of Finance Honourable Andrew A. Fahie (R1) during the Third Sitting of the First Session of the Fourth House of Assembly today, May 17, 2019.
Virgin Gorda has been without a physical bank since August 2018 following the departure of Scotiabank. CIBC FirstCaribbean had closed months earlier. FirstBank had been the first banking facility to exit the Sister Island of Virgin Gorda.
Residents with VG faced with hardships
According to Premier Fahie, Banco Popular, with the assistance of the Government of the Virgin Islands, will begin operating a physical branch on Virgin Gorda effective August 2019. The Leader of the Opposition noted that work will begin on the physical structure of the bank as soon as next week.
Giving credit to Minister for Natural Resources, Labour and Immigration and Ninth District Representative Hon Vincent O. Wheatley; At Large Representative and Junior Minister for Tourism, Shereen D. Flax-Charles and At Large Representative and Junior Minister for Trade and Economic Development, Honourable Sharie B. deCastro for the development, Premier Fahie said it would be a return of critical banking facilities on Virgin Gorda and ease the difficulties for residents of the Sister Island.
“Mr Speaker, imagine having to brave the waters and travel on a regular basis to Tortola from Virgin Gorda, stand in a long bank line to have transactions done and sometimes return home without being successful…Can you imagine this? Can you imagine what our people of Virgin Gorda had to endure daily as a result of not having any physical facilities on Virgin Gorda.”
The Premier said traveling to Tortola presented quite a challenge for the residents, who had complained bitterly about the lack of banking services and the hardship they were made to endure.
Further, Premier Fahie said businesses were particularly affected as it means they have to travel with large amounts of cash to and from the island, which presented as “safety risk.”
NDP Administration ‘dropped the ball’
It was noted by Premier Fahie, that Scotiabank had given the previous [National Democratic Party] administration adequate notice of their closure but there were no concrete efforts to either discourage such an action or to encourage another institution to set up on the island in order to avoid any gap in banking services provided to the people of Virgin Gorda.
The Premier said an ATM machine was provided; however, he was made to understand that the machine on many occasions was unable to adequately supply the people with any cash or services, largely due to the high demand and usage.
Meanwhile, it was also disclosed by Premier Fahie that "the most feasible and efficient methods of banking" will also be explored on other Sister Islands.
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Shaw launches new trade information portal Friday 17th May, 2019 – Jamaica Observer
Minister of Industry, Commerce, Agriculture and Fisheries Audley Shaw has launched the Jamaica Trade Information Portal (JTIP), the first of its kind in the English-speaking Caribbean.
The portal, which aims to improve trade facilitation and generate more trade and investment, will allow the business community to have quick access to the country's trade rules.
The ministry, in a release yesterday, said JTIP is a one-stop shop for information on import-export regulations and procedures and will be hosted by the Trade Board Limited.
Speaking at the launch held at the Terra Nova Hotel in Kingston yesterday, Shaw said, “With the Trade Information Portal, Jamaica will have a single authoritative trade information source for businesses to easily access the information they need at any time.”
The portal, Shaw explained, will bring export and import-related regulatory information and step-by-step guidance on a single platform to allow traders, investors and consumers a smoother interface with the regulatory and procedural steps needed to facilitate their businesses. This, he stated, will ultimately drive Jamaica's collective economic growth
The minister further explained that JTIP also represents Jamaica's efforts to fulfil its commitment to the World Trade Organization's (WTO) Trade Facilitation Agreement, under Article I — which speaks to making information available through the Internet.
The JTIP forms part of the wider trade facilitation initiatives of the government to include the Jamaica Electronic Single Window (ESW) for Trade being implemented by the Jamaica Customs Agency in collaboration with the Ministry of Finance and the Public Service.
Under the ESW, approximately 20 border agencies will be integrated into a single platform to include the Trade Board Limited which has already commenced. Other key MICAF agencies to be integrated into the ESW are the Plant Quarantine Division, the Veterinary Services Division, and the National Compliance Regulatory Authority.
The JTIP project is supported by the Trade Facilitation Programme managed by the World Bank Group and funded by eight donor countries, namely Australia, Canada, the Netherlands, Norway, Sweden, Switzerland, the United States and the United Kingdom and the European Commission.
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Gas station lines reappear in Venezuela as refinery halts, fuel imports plunge Thursday 16th May, 2019 – Reuters
Gas station lines reappeared across oil-rich but crisis-stricken Venezuela this week as gasoline imports plunged and the country’s second-largest oil refinery halted operations.
Shortages of motor fuel have become a periodic occurrence across OPEC member Venezuela, particularly in border regions where smuggling to neighbouring countries is common, the result of generous subsidies from state-run oil company PDVSA that have led to nearly-free gasoline.
But this week lines at gas stations in the border states of Zulia and Bolivar were longer than usual, according to Reuters witnesses, and hours-long lines appeared outside service stations in the central states of Aragua and Carabobo. The capital Caracas showed no signs of gasoline shortages.
PDVSA’s imports of fuel and diluents, which are mixed with Venezuela’s extra-heavy crude, have plunged to 86,000 barrels per day (bpd) on average so far in May, compared with 225,000 bpd for the full month of April, according to internal PDVSA documents and Refinitiv Eikon data.
U.S. sanctions on PDVSA, part of a bid to pressure President Nicolas Maduro to step down, are squeezing government revenue by preventing Venezuela from shipping crude to the United States, previously its largest market.
The sanctions also block U.S. companies from exporting gasoline to Venezuela, prompting PDVSA to import fuel from farther afield.
In addition, Venezuela’s 310,000 barrel-per-day (bpd) Cardon oil refinery, operated by PDVSA, halted operations on Wednesday because of damage at some of its units, two workers at the Paraguana refining complex said. It had been operating well below capacity even before the outage.
Cardon is Venezuela’s second largest refinery after 645,000-bpd Amuay, which is adjacent to Cardon in Paraguana. As of Wednesday the refinery was processing just 115,000 bpd, one source said, while a second source said it was producing less than 140,000 bpd.
The 187,000 bpd Puerto la Cruz refinery had been offline even before the sanctions were imposed in late January, while the 146,000 bpd El Palito refinery is operating at minimum levels.
Neither PDVSA nor Venezuela’s oil ministry immediately responded to requests for comment.
Venezuela’s refining infrastructure has deteriorated in recent years because of lack of maintenance and investment, prompting the government to import fuel for domestic use.
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Venezuela's ad-hoc PDVSA board begins payment on Citgo-backed 2020 bond Thursday 16th May, 2019 – Reuters
Venezuela’s ad-hoc board of directors for state oil company PDVSA, appointed by opposition leader Juan Guaido, said on Thursday it has made an interest payment on its bond maturing in 2020, delaying uncertainty over its crown jewel U.S. asset.
The PDVSA bond is backed by shares in U.S. refiner Citgo and failure to make the $71 million interest payment would have allowed bondholders to seize the shares as compensation.
But Citgo may still be at risk of seizure because the company has a $913 million interest payment due on Oct. 27. Other creditors of Venezuela, including Canadian mining company Crystallex, are also attempting to seize Citgo in order to collect on unpaid debts.
President Nicolas Maduro’s government had remained current on the 2020 bond even as it fell behind on more than $10 billion in interest and principal payments on other bonds issued by PDVSA and the government.
But efforts by any Maduro-linked entity to pay would have been complicated by sanctions imposed by the United States on PDVSA in January as part of a bid to pressure Maduro to step down.
The United States and dozens of other countries have recognized Guaido, who in January invoked Venezuela’s constitution to assume an interim presidency, claiming Maduro’s 2018 re-election was illegitimate.
“We see the USD 913 million October payment as unlikely in the absence of political change,” New York-based Torino Economics said in a note this week.
Maduro retains control of PDVSA’s operations in Venezuela as well as state functions, but a Guaido-appointed board has taken control of Houston-based Citgo.
PDVSA’s ad-hoc board has said it will use uncollected oil revenue from PDVSA to make the bond payment but has not provided further specifics about the source of the funds.
Neither PDVSA nor Venezuela’s oil ministry immediately responded to requests for comment on Thursday. Maduro has frequently accused the opposition of trying to “steal” Citgo.
The opposition-controlled National Assembly, led by Guaido, voted to make the payment last week. Guaido’s allies have said the payment will allow his team to protect the Venezuelan state’s assets abroad and leave it in a better position for an eventual debt renegotiation.
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Dominican Republic fares well in public-private partnerships: study Thursday 16th May, 2019 – Dominican Today
In the most recent Infrascopio 2019 report, developed by the Economist Intelligence Unit and the Inter-American Development Bank (IDB), the Dominican Republic ranks 16th out of the 21 countries in Latin America in developing public-private partnerships (APP).
The Dominican Republic obtained a score of 55, above countries such as Bahamas, Paraguay, Argentina, Barbados and Venezuela.
The best practices in PPP in the region are, the Infrascopio 2019 results reveal Chile, Colombia, Peru and Jamaica, with scores between 79 and 76.
The index uses five categories to assess the environment for PPPs in Latin America and the Caribbean, by measuring the impact of regulations, the institutional framework, maturity, the investment climate and financing on the potential for developing public-private partnerships in each country.
In the Dominican case, the lowest result is in terms of institutions in which the index was only 11 points.
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Starbucks coming to the Dominican Republic Thursday 16th May, 2019 – Dominican Today
Starbucks announced today that it has reached a license agreement with Green Star Partners, an alliance that combines decades of experience nationally and internationally in multiple sectors.
This agreement gives Green Star Partners the exclusive rights to own and operate Starbucks stores in the country. The opening of the first store is scheduled for early 2020 “in the dynamic and modern city of Santo Domingo.”
“We are honoured to have the opportunity to bring the unrivalled Starbucks Experience to customers in the Dominican Republic. While positioning the company through continuous growth within the Caribbean region, we are proud to add Green Star Partners to our strong network of licensees to take advantage of their undoubted capabilities within the market to create greater value, both for our customers as well as our partners (employees),” said Ricardo Rico, vice president and general manager of Starbucks for Latin America and the Caribbean.
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Coral reefs give Dominican Republic US$1.14B yearly Thursday 16th May, 2019 – Dominican Today
Aimed at restoring biodiversity with the value it deserves, several Dominican Gov. agencies and NGOs on Thurs. presented the study “Identification and valuation of the ecosystem services of coral reefs.”
The analysis provides information on the economic value of coral reefs for Punta Cana, Bayahibe and Samaná, based on four direct benefits obtained by these regions through these ecosystems, such as: beach for recreation, reef fishing, recreational diving and investigation.
“The results indicate that the three zones together obtain about US$1.14 billion a year from those activities,” said the study by the ministries of the Environment and of the Economy, the Dominican Coastal Restoration Consortium (CDRC) and the German Cooperation for Development, GIZ
“This study highlights the importance of the reefs for the economic activity of these sites and for the income of the country in general and also calls attention to all sectors benefited to invest in its restoration and protection,” said Svenja Paulino, director of the Biodiversity and Business Program in Central America and the Dominican Republic of GIZ.
“The study found that more than two million tourists visit the beaches of the aforementioned sites annually and for recreational purposes, a factor that represents 98% of the total value of these services.”
According to the Atlas of coral reefs of Spalding et. al., 2001, Dominican Republic possesses 610 km2 of reefs; the sum of the three areas of the study represents 63.8 km2, which is equivalent to approximately 10% of the coverage.
“It also highlights the transcendental role played by coral reefs by providing not only economic benefits such as those mentioned, but also physical protection to the coasts against the impact of the waves, the stability of the beaches thanks to the biogenic sand, as well as a large structural diversity of marine habitats and species.”
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Bahía de las Águilas Master Plan ‘ready’ by June Thursday 16th May, 2019 – Dominican Today
The master plan to launch Bahía de las Águilas and Dominican Republic’s South region as the new tourist pole is expected to be ready in June.
Finance minister, Donald Guerrero, on Wednesday said that when the Canadian company that was hired to develop it delivers the plan, a marketing company will be hired to promote investment in the area.
“We are sure the reception will be very good because despite not having the master plan or the marketing campaign, there has been a lot of interest from the private sector in the area of Bahía de las Aguilas to Pedernales because of its potential,” the official said.
Speaking in the public-private partnerships forum (PPP-Americas 2019) that takes place in Punta Cana. Guerrero invited the participants to come to the country again to get to know “beyond Punta Cana” because the Dominican Republic has much to offer.
“The area is waiting to be exploited, hopefully its development begins after the promulgation of the law of public-private partnerships that is expected to be approved this year.”
The PPP Americas forum is a dialogue held for the first time in the country and brings together important representatives of the public and private sectors of Latin America and the Caribbean, hosted by the Inter- American Development Bank (IDB) and BID Invest.
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Implementation of CARCIP Telecoms Project Thursday 16th May, 2019 – Government of Grenada Online
Grenada and its dependencies will soon boast of significant improvements in the quality of broadband access which will be facilitated under the Caribbean Regional Communications Infrastructure Program CARCIP.
The World Bank funded project is being executed by Digicel on behalf of the Governments of Grenada, St. Lucia and St. Vincent and the Grenadines.
This phase of the project which includes the installation of marine fibre optic cable is being done by the Canadian based Company, International Telecoms.
The project will increase access to regional broadband network by bringing true broadband connectivity to schools, community centres and Government offices.
It will also advance development of an ICT enabled services industry in the three beneficiary countries.
Hon. Gregory Bowen, Minister for Infrastructure Development, Public Utilities, Energy, Transport & Implementation describes this as a major milestone for Grenada that paves the way for the inclusion of advanced technology in the future development of the country.
“Our children, being able to work online, our examinations being done online, no buffering, lecturing; I’ve always advocated that the best mathematics Teacher, should teach Mathematics to the entire people in Grenada and perhaps the region.
We can do this now with broadband; so we sit in one school and the teacher lectures to everyone, because of the technology.
The opportunities are great, jobs from one location, working for persons in other locations, other countries this can manifest itself from what we have now, our broadband system.
Carriacou, we are especially pleased with Carriacou because, with all the developments they have never had the opportunity for real broadband, always a radio link”.
Project Offshore Installation Manager for International Telecoms Todd Nicholls said the installation process will commence on Thursday.
He said the cables will be laid on the seabed from Conference Bay, St. Andrew to the east of Kick ‘em Jenny, going on to Hillsborough, Carriacou.
“We anticipate getting underway tomorrow from here over to Conference late tomorrow and spending all day Friday on site doing some trials and prepping the beach.
From there we hope to get underway Saturday morning, which will put us into Carriacou on Sunday. We will see how time goes, but the Carriacou segment that’s 53 kilometres in length, that is the longest segment of this particular project, but we anticipate being able to have that completed by Sunday. We’re very excited about participating with everybody here”.
Shrivon Redhead CEO of DIGICEL Grenada Limited, said she is pleased that Digicel and Government can collaborate to enhance the technology of the future.
“Being introduced via fibre subsea which you guys are here responsible for laying, which will be connected to our terrestrial fibre underground will not only provide tremendous capacity, for our off-island capacity and network resilience.
Now this technology will provide the bandwidth for tomorrow’s technology, it will not only change the way we evolve in terms of how we communicate, it will change the way we’re able to deliver education in schools and will also change the way we run our businesses and that is something we have to acknowledge across Grenada, Carriacou and Petite Martinique, Grenadines and by extension St. Lucia and St. Vincent through this CARCIP Project”
Following the Press Conference Government and Digicel Officials were given a tour of the Telecoms Cable ship, to get an understanding of the installation process.
International Telecoms officials say installation of cables process will be eco-friendly, minimizing harm to the ecosystem.
The entire process of installation and testing will take approximately 5 weeks.
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Barbados removes visa restrictions for some countries Friday 17th May, 2019 – Nation News
Barbados has removed visa requirements for several countries as government seeks to increase the number of tourist arrivals, and make it easier for investors to do business with this island.
Minister of Foreign Affairs and Foreign Trade, Senator Dr Jerome Walcott, made this disclosure during a post Cabinet press conference on Thursday at Government Headquarters on Bay Street.
No longer will visas be required for nationals of the following African countries to enter Barbados: Cameroon, Ethiopia, Ghana, Liberia, Morocco, Senegal, Rwanda and Burkina Faso.
Visa waivers have also been granted to the Gulf States of Bahrain, Jordan, Oman and Qatar as well as the Asian countries of Indonesia, Vietnam, Thailand and India. In addition, Barbados has an honorary consul present in Monaco and visa requirements have also been lifted for that nation.
The Foreign Affairs Minister explained that it was important for Barbados to strengthen relations with countries within the global sphere, make new friends and attract more opportunities.
“We depend on tourism, investment and opportunities for business. We recognise in terms of travel that the stipulations for visas are sometimes a deterrent for tourists and those seeking to establish business with the country, they find it fairly complicated. In this regard, the Cabinet of Barbados agreed to remove the visa requirements for several countries in different parts of the world.
“We recognise that Africa, a continent of 54 countries, many of them showing growth rates of five, six, and seven per cent, in terms of Rwanda, it is time for us to look more closely at that continent. We have made a pledge, and we are moving towards establishing a mission in Accra, Ghana before the end of this year,” he said.
Walcott said that Government was also hoping to attract more tourists and investors from the Gulf States and Asian nations.
“We are recognising and certainly hoping that the removal of these visa requirements would encourage a number of persons from these countries, not only in terms of tourism, but for investment and business,” he said.
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Goldman Sachs in talks to buy B&B Hotels from PAI Partners Monday 20th May, 2019 – Reuters
Goldman Sachs is in talks to buy B&B Hotels from private equity firm PAI Partners, the companies said on Monday, in a deal which an earlier report from the Financial Times said could be worth 1.9 billion euros ($2.1 billion).
Goldman Sachs Merchant Banking Division, the bank’s investment fund arm, and PAI Partners did not disclose how much the transaction could be worth in their statement.
B&B Hotels had 2018 sales volumes worth 580 million euros, and it runs a network of 476 hotels, competing with the likes of Accor.
The global hotels industry has recently shown signs of solid growth, with Marriott issuing a relatively upbeat outlook earlier this month while Accor also expressed confidence over its 2019 outlook in April.
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U.S., China bicker over 'extravagant expectations' on trade deal Monday 20th May, 2019 – Reuters
China accused the United States on Monday of harboring “extravagant expectations” for a trade deal, underlining the gulf between the two sides as U.S. action against China’s technology giant Huawei began hitting the global tech sector.
Adding to bilateral tension, the U.S. military said one of its warships sailed near the disputed Scarborough Shoal claimed by China in the South China Sea on Sunday, the latest in a series of “freedom of navigation operations” to anger Beijing.
Alphabet Inc’s Google has also suspended business with China’s Huawei Technologies Co Ltd that requires the transfer of hardware, software and technical services, except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday, in a blow to the company that the U.S. government has sought to blacklist around the world.
Shares in European chipmakers Infineon Technologies, AMS and STMicroelectronics fell sharply on Monday amid worries the Huawei suppliers may suspend shipments to the Chinese firm due to the U.S. blacklisting of it last week.
The Trump administration’s addition of Huawei to a trade blacklist on Thursday immediately enacted restrictions that will make it extremely difficult for it to do business with U.S. counterparts.
In an interview with Fox News Channel recorded last week and aired on Sunday night, Trump said the United States and China “had a very strong deal, we had a good deal, and they changed it. And I said ‘that’s OK, we’re going to tariff their products’.”
In Beijing, Chinese Foreign Ministry spokesman Lu Kang said he didn’t know what Trump was talking about.
“We don’t know what this agreement is the United States is talking about. Perhaps the United States has an agreement they all along had extravagant expectations for, but it’s certainly not a so-called agreement that China agreed to,” he told a daily news briefing.
The reason the last round of China-U.S. talks did not reach an agreement is because the United States tried “to achieve unreasonable interests through extreme pressure”, Lu said.”From the start this wouldn’t work.”
China went into the last round of talks with a sincere and constructive attitude, he said.
“I would like to reiterate once again that China-U.S. economic and trade consultation can only follow the correct track of mutual respect, equality and mutual benefit for there to be hope of success.”
No further trade talks between top Chinese and U.S. trade negotiators have been scheduled since the last round ended on May 10 - the same day Trump raised the tariff rate on $200 billion worth of Chinese products from 10 percent.
Trump took the step after the United States said China backtracked on commitments in a draft deal that had been largely agreed to.
STERNER TONE
Since then, China has struck a sterner tone, suggesting that a resumption of talks aimed at ending the 10-month trade war between the world’s two largest economies was unlikely to happen soon.
Beijing has said it will take “necessary measures” to defend the rights of Chinese companies but has not said whether or how it will retaliate over the U.S. actions against Huawei.
The editor of the Global Times, an influential tabloid run by the ruling Communist Party’s People’s Daily, tweeted on Monday that he had switched to a Huawei phone, although he said his decision did not mean that he thinks it is right to boycott Apple and said he was not throwing away his iPhone.
“While the U.S. spares no efforts to subdue Huawei, out of personal belief, I chose to support the well respected company by using its product,” Hu Xijin tweeted.
Trump, who said the interview with Fox News host Steve Hilton had taken place two days after he raised the tariffs, said he would be happy to simply keep tariffs on Chinese products, but said that he believed that China would eventually make a deal with the United States “because they’re getting killed with the tariffs”.
But he said that he had told Chinese President Xi Jinping before the most recent rounds of talks that any deal could not be “50-50” between the two countries and had to be more in favor of the United States because of past trade practices by China.
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Coca-Cola ends plan to refranchise Africa bottling unit, keeps majority stake Monday 20th May, 2019 – Reuters
Coca-Cola Co said on Monday it had dropped plans to refranchise its Africa bottling business, Coca-Cola Beverages Africa (CCBA), and would instead keep its majority stake in the unit for the time being.
The U.S. beverage giant had wanted to refranchise the unit as part of its global plan to divest its manufacturing and distribution assets to focus on main beverage business and boost margins.
“While we remain committed to the refranchising process, we believe it’s in the best interests of all involved for Coca-Cola to continue to hold and operate CCBA,” Coca-Cola said in a statement.
The company said it has had discussions with a number of potential partners. Coca-Cola HBC and rival Coca-Cola European Partners were seen as potential buyers for the unit.
Shares of Coca-Cola HBC were down 7.4%.
Coke in 2016 bought a majority stake in CCBA, the continent’s largest soft drink bottler, with operations in a dozen markets including South Africa, Kenya, Uganda and Tanzania, from Anheuser-Busch InBev SA.
The company said it would reclassify its financial statements from second quarter in 2019 to include CCBA as part of its continuing operations.
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Stock futures drop on concerns over spiraling fallout of Huawei crackdown Monday 20th May, 2019 – Reuters
U.S. stock index futures fell on Monday, as fears over the impact on major technology companies from Washington’s crackdown on China’s Huawei Technologies added to concerns over worsening trade dispute between the world’s two biggest economies.
Apple Inc’s shares were down 2.4% premarket, while U.S. suppliers of Huawei including Qualcomm, Micron Technology and Broadcom Inc fell about 3%.
An HSBC warning that higher prices for Apple’s products following the increases in China tariffs could have “dire consequences” on demand also pressured the iPhone maker’s stock.
Huawei was officially added to a trade blacklist by the Trump administration on Thursday, escalating the already bitter trade war between the two parties, while China on Monday accused the United States of harboring “extravagant expectations” for a trade deal.
Alphabet Inc’s Google has suspended some business with Huawei that requires the transfer of hardware, software and technical services, Reuters reported over the weekend.
Chipmakers including Intel Corp, Qualcomm, Xilinx Inc and Broadcom have told their employees they will not supply Huawei until further notice, Bloomberg reported on Sunday.
Shares of Alphabet, Facebook Inc and Microsoft Corp were all down 1.1%.
At 7:23 a.m. ET, Dow e-minis were down 121 points, or 0.47%. S&P 500 e- minis were down 16.25 points, or 0.57% and Nasdaq 100 e-minis were down 90.5 points, or 1.2%.
Heightening trade tensions pushed the S&P 500 and the Nasdaq to their second successive weekly declines on Friday, while the Dow Jones Industrial Average index capped a fourth straight week of losses, the longest such losing streak in three years.
Investors will also look for comments from a clutch of retailers reporting this week on the impact of the tariff war.
Home Depot, Nordstrom, Kohl’s and Target are among retailers scheduled to report.
With 460 of S&P 500 companies having posted first-quarter results, 75.2% have topped analysts’ profit expectations. Analysts now expect first- quarter earnings growth of 1.4%, a significant turnaround from the 2% loss expected on April 1, according to Refinitiv data.
Also on the radar is Federal Reserve Chairman Jerome Powell’s speech on “Assessing Risks to our Financial System” at an Atlanta Federal Reserve Bank conference at 7 p.m. ET (2300 GMT).
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British ministers say the City of London will survive in a post-Brexit world Monday 20th May, 2019 – Reuters
Britain’s vast finance industry will emerge largely unscathed from Brexit and retain its position as one of the world’s top financial centers, ministers in Prime Minister Theresa May’s government said on Monday.
Since Britain voted to leave the European Union nearly three years ago, London’s financial services industry has been trying to prepare for losing access to its biggest trading bloc, its toughest challenge since the 2007- 2009 financial crisis.
London, which is home to the world’s highest number of banks and largest commercial insurance market, has potentially a lot to lose from the end of unfettered access to the EU’s post-Brexit market, its biggest trading partner.
But Liam Fox, the British trade minister, said he has confidence in the finance industry’s ability to emerge stronger from Brexit and the government values the sector.
“I am convinced that once the dust settles, the City of London will do what it always does, which is to emerge fitter, stronger and more dynamic than ever,” Fox will tell an audience at the medieval Guildhall in London’s financial district.
“We recognize your difficulties, we recognize your importance and we want to work with you to give certainty and stability.”
Britain’s finance industry remains deeply unpopular among the general public for its role in the financial crisis. But the industry accounts for about 12% of Britain’s economic output, employs about 2.2 million people and pays more taxes than any other industry.
British financial services minister John Glen said the City of London’s traditional strengths were in good health, with new sectors such as fintech growing.
But the “slow and frustrating” process of seeking a deal in parliament on Britain’s departure from the European Union remained a “stubborn” shadow over the sector, Glen said.
“I know the City wants and frankly deserves certainty, and I am sorry that I can’t give that today,” Glen said.
May and Finance Minister Philip Hammond will meet with leading figures from the financial sector to discuss how to ensure that Britain’s business environment remains one of the most competitive in the world, Glen said.
Barclays’ bank former chairman John McFarlane said the City cannot take success for granted, especially if the European Union closes its markets to Britain, and foreign financial firms are forced to move activities from London to the bloc.
Bernard Mensah, the president of Bank of America Merrill Lynch in Europe, the Middle East and Africa, said his bosses in the United States were bemused Britain’s decision to leave the EU and it diverting attention from bigger challenges.
Mensah said the best strategists, lawyers and staff working in technology were working on preparing his bank to be ready for leaving the EU.
“There is a real underlying cost,” he said. “The challenge that we face as a region, as an economy, and as an industry are huge and we are distracted by focusing on Brexit right now.”
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European financial system remains fragile, fragmented Monday 20th May, 2019 – Reuters
The European financial system remains fragile and fragmented due to the close relationship between sovereigns and banks, European Central Bank policymaker and Governor of the Bank of Spain Pablo Hernandez de Cos said on Monday.
“Investment portfolios are not well diversified and investment opportunities are lost as these may not always be matched with savers’ funds. The financial system remains fragile and fragmented because of the doom- loop between sovereigns and banks,” de Cos said during a conference in London.
The EU still lacks the necessary fiscal tools to cushion against asymmetric or large systemic shocks in the euro are, he said.
De Cos also noted that it was essential for policy makers to strengthen European regulators.
“As European markets become more integrated and technologically complex, this is becoming a more essential element that policy-makers need to address,” he said.
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Banks have agreed in principle on capital for new fund Monday 20th May, 2019 – Reuters
The biggest Czech banks have agreed in principle to contributing starting capital of 6 billion crowns ($259.92 million) to a proposed national development fund, Prime Minister Andrej Babis told reporters on Monday.
Babis has proposed the fund as an alternative to calls from his junior ruling partner to implement a sector tax on banks, which he has opposed.
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Chipmakers weigh on European markets as Huawei fallout spreads Monday 20th May, 2019 – Reuters
European stock markets struggled in the face of a U.S. crackdown on China’s Huawei Technologies on Monday after a report that German- based chipmaker Infineon had halted shipments to Huawei.
A profit warning from Ryanair also pressured airline stocks, overpowering the impact of a surge in oil producers due to rising crude prices and pushing the pan-European index STOXX 600 down 0.5% by 0930 GMT.
Tech stocks fell the most across all European sectors as the report on Infineon followed news on Sunday that Google was suspending some business with Huawei.
“Chipmakers in Europe, and United states have been hit by trade tensions, especially today because Huawei has been banned from Google’s Playstore,” said Vlad Totia, research analyst at Accendo Markets.
A source told Reuters that Google had suspended business with Huawei that required the transfer of hardware, software and technical services except those publicly available via open source licensing.
AMS, STMicroelectronics, and ASML were down between 3% and 7% as fears of a disruption to the industry’s global supply chain grew.
Nokia and Ericsson however, gained from the news as investors judged damage to Huawei could benefit the European telecom equipment makers.
Europe’s largest low-cost carrier Ryanair fell more than 3% after it was the latest major player to provide signs of pain in a sector struggling with overcapacity, Brexit and delays in delivery of the Boeing 737 Max.
EasyJet Plc, Lufthansa AG and Air France, all slid in response, pushing the travel and leisure sector down almost 1%.
Deutsche Bank shares also came under pressure after the New York Times reported that anti-money laundering specialists at the bank recommended in 2016 and 2017 that multiple transactions involving entities controlled by U.S. President Donald Trump and his son-in-law Jared Kushner be reported to a federal financial-crimes watchdog.
The newspaper, citing five current and former Deutsche Bank employees, said executives at the German-based bank, which has lent billions of dollars to the Trump and Kushner companies, rejected their employees’ advice and the reports were never filed with the government. Deutsche Bank denied the report.
Viennese stocks fell about 1% in early trading after Austria’s president called for a snap election in September following the resignation of the country’s far-right vice chancellor over a video sting.
The oil and gas sector provided the major boost, up around 1% as signs that OPEC was sticking to its production limits and the tension between Iran and Saudi Arabia in the Middle East pushed global crude prices around 90 cents higher.
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Indian stocks see biggest gain since September 2013; bonds, rupee rally Monday 20th May, 2019 – Reuters
Indian stocks saw their biggest single-day gain since September 2013 on Monday while the rupee and bonds rallied after exit polls showed Prime Minister Narendra Modi was set to win a second term with an even bigger mandate than in 2014.
Modi’s National Democratic Alliance (NDA) was projected to win between 339 and 365 seats in the 545-member lower house of parliament when votes are counted on Thursday following a seven-phase election that ended on Sunday.
Markets had been expecting the NDA to win a second term but the margin of victory as suggested by the polls is a clear surprise and is expected to keep sentiment buoyant in the near term.
The NDA is seen to be relatively more fiscally disciplined and less populist in nature than its main rivals, which should augur well for inflationary dynamics, Madhavi Arora, economist, FX and rates at Edelweiss Securities wrote in a note.
“Some pick-up in fresh private investment may happen with policy and political certainty. But overall, policy focus should be on structural measures rather than mere policy rate cuts or looser fiscal stance,” Arora said.
The NSE share index closed up 3.69% at 11,828.25 points while the benchmark BSE index ended 3.75% higher at 39,352.67 points. This is be biggest single-day gain for both indices since Sept. 10, 2013. [.BO]
Fund managers expect markets to see another 3%-4% rally in markets over the next few days depending on global cues but a further sharp upside is unlikely if the election results are in line with predictions, they said.
Markets are likely to hold in a range ahead of the vote count on Thursday with a bullish bias. The Nifty has broken the strong resistance it had seen at 11,800 levels and could now look to move towards 12,200, analysts said.
“What would help the markets sustain the momentum is factors that are fundamentally important, like decisive policy initiatives from the new government, faster land and labor reforms, and also the unfinished task of quick consolidation and reorganization of the banking system,” said Joseph Thomas, head of research at Emkay Wealth Management.
NEW MOMENTUM ON REFORMS? India’s bonds and rupee have both held in a tight range in recent weeks despite the positive underlying bias as investors stayed on the sidelines awaiting the election outcome.
Low inflation and foreign fund inflows have aided the rupee while the central bank’s efforts to ensure adequate liquidity in the banking system through forex swaps and open market bond purchases have helped bonds.
“In terms of policies, we hope to see a continuation of what we saw in the first part of Modi’s first term when the government implemented measures to improve the business climate, the bankruptcy code, GST, demonetization,” said Arjen van Dijkhuizen, Chief Asia economist at ABN AMRO in Amsterdam.
“The later part of his term has been more populist to appease his voter base. We now hope the momentum on reforms will accelerate,” he added.
The partially convertible rupee ended at 69.7450 per dollar, after rising to 69.3550 in opening deals, at which point it was up 1.2 percent on the day. It still closed 0.7% higher versus Friday’s close of 70.22.
Investors expect the rupee to hold in a 69-72 per dollar range in the medium term with global oil prices having the potential to push it lower.
Further gains in the rupee will also depend on flows into the stock markets. [.BO]
The benchmark 10-year bond yield closed trading at 7.29%, down 7 basis points on the day after briefly falling to a low of 7.27%.
Though investors are happy with the idea of continuity, they feel that a lot of the work that has been done by the government to generate economic growth has not been felt. A second five-year term should give Modi the opportunity to implement those reforms and deliver on growth.
“I would expect more over the next five years,” said David Cornell, chief investment officer at Ocean Dial Asset Management.
“A lot has been done but a lot more needs to happen in terms of the judiciary, generating employment growth, public sector divestment, attracting foreign investment, improving the fiscal deficit. So there is an awful lot more that needs to be done.”
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India's BJP preparing for return to power as exit polls predict victory Monday 20th May, 2019 – Reuters
India’s ruling Bharatiya Janata Party (BJP) is to meet coalition partners to discuss a new government, two BJP sources said on Monday, after exit polls predicted a clear general election victory for the party led by Prime Minister Narendra Modi.
The talks will be on Tuesday afternoon at the BJP’s headquarters in New Delhi and will be led by the party president, Amit Shah, one of the party sources said. The sources declined to be identified as they are not authorized to speak about the meeting.
Nalin Kohli, a spokesman for the BJP, declined to comment.
India’s seven-phase general election, billed as the world’s biggest democratic exercise, began on April 11 and ended on Sunday. Votes will be counted on Thursday and results are likely the same day.
Modi’s BJP-led National Democratic Alliance (NDA) is projected to win anything between 339-365 seats in the 545-member lower house of parliament with the Congress-led opposition alliance getting only 77 to 108, an exit poll from India Today Axis showed on Sunday.
A party needs 272 seats to command a majority.
The predicted BJP margin of victory is bigger than opinion polls indicated in the run-up to the vote, when most surveys showed the NDA would be the largest alliance but would fall short of an overall majority.
Arun Jaitley, finance minister in the BJP government, said he was confident in the exit polls.
“When multiple exit polls convey the same message, the direction of the result broadly would be in consonance with the message,” Jaitley said in a blog post on Monday.
MARKET BOUNCE
Indian stock markets and the rupee were sharply higher on expectation the business-friendly Modi would stay on at the helm.
The benchmark NSE share index was up 2.8%, its best single day since March 2016.
“I expect another 2-3% rally in the market in the next three to four days based on the cue,” said Samrat Dasgupta, a fund manager at Esquire Capital Investment Advisors.
Congress spokesman Sanjay Jha cast doubt on the exit polls, saying on Twitter he believed they were wrong.
“If the exit poll figures are true then my dog is a nuclear scientist,” Jha said, adding he expected the next prime minister would come from outside the BJP alliance.
Modi and his BJP faced criticism in the run-up to the election over unemployment, in particular for failing to provide opportunities to young people coming onto the job market, and for weak farm prices.
But Modi rallied his Hindu nationalist base and made national security a central theme of the campaign after a surge in tension with Pakistan in February following a suicide bomb attack in Indian-controlled Kashmir by Pakistan based militants.
Modi ordered air strikes on a suspected militant camp in Pakistan, which led to a surge in tension between the nuclear-armed neighbors.
But many Indians applauded Modi’s tough stand and he was able to attack the opposition for being soft on security.
Ram Madhav, a senior leader in the BJP, told Reuters partner ANI the results would be even better for the party than the exit polls were suggesting, particularly in West Bengal state.
West Bengal has the third largest number of members of parliament and has been hotly contested between the BJP and the Trinamool Congress, one of the most powerful parties in the coalition trying to unseat Modi.
“Bengal will surprise all the pollsters, we are hoping to do extremely well there,” Madhav said. “Everyone has seen the tremendous support for PM Modi and the BJP in Bengal.”
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Oil rises after OPEC+ says to keep output cuts Monday 20th May, 2019 – Reuters
Oil hit multi-week highs on Monday after OPEC indicated it was likely to maintain production cuts that have helped boost prices this year, while escalating Middle East tensions provided further support.
Brent crude was up by 34 cents to $72.55 a barrel by 0928 GMT, having earlier touched $73.40, the highest since April 26.
U.S. West Texas Intermediate crude was up 24 cents at $63 a barrel, after hitting a three-week high of $63.81.
Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers to drive down crude inventories “gently” but he would remain responsive to the needs of a “fragile market”.
United Arab Emirates Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cuts was not the right decision.
OPEC data indicates oil inventories in the developed world rose by 3.3 million barrels month-on-month in March, and were 22.8 million barrels above their five year average.
A gathering of the so-called Joint Ministerial Monitoring Committee (JMMC) in Saudi Arabia over the weekend did not make any solid recommendations, leaving a decision on policy for a meeting of OPEC and its allies next month in Vienna.
“While not explicitly mentioned in the statement (of the JMMC), uncertainty on how many Iranian and Venezuelan oil barrels will be lost due to U.S. sanctions was probably the main reason the group kicked the can down the road,” UBS analyst Giovanni Staunovo said.
OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to cut output by 1.2 million barrels per day (bpd) from Jan. 1 for six months to try to prevent inventories from increasing and weakening prices.
Adding to the bullish sentiment is rising tensions in the Middle East.
U.S. President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the “official end” of Iran, while Saudi Arabia said it was ready to respond with “all strength” and it was up to Iran to avoid war.
The rhetoric follows last week’s attacks on Saudi oil assets and the firing of a rocket on Sunday into Baghdad’s heavily fortified “Green Zone” that exploded near the U.S. embassy.
Another bullish signal for crude was a second week of declines in U.S. drilling operations, with energy companies cutting oil rigs to the lowest since March 2018.
The rig count, an early indicator of future output, fell by 3 to 802, General Electric Co’s Baker Hughes energy services unit said on Friday.
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Stock markets slide as worries about Huawei fallout mount Monday 20th May, 2019 – Reuters
Stock markets weakened on Monday as concerns mounted about an escalating fallout from a U.S. crackdown on China’s Huawei Technologies.
Investors already on edge about an escalating U.S.-China trade dispute were further rattled after Beijing accused Washington of harboring “extravagant expectations” for a trade deal, underlining the gulf between the two sides.
Asian shares had managed to reverse some of last week’s losses on Monday after Washington said it would lift tariffs in North America, and as investors cheered apparent wins by Conservative incumbent parties in elections in Australia and India.
But the mood did not carry over to Europe, where weak corporate earnings added to the gloom.
The pan-European Euro STOXX 600 extended earlier losses and was down 1.06% by 1100 GMT - the index, down 3.5% in May, is on track for its first monthly loss in 2019.
The German DAX slid 1.38%, while France’s CAC 40 weakened 1.39%.
U.S. President Donald Trump’s government added Huawei to a trade blacklist last week, imposing restrictions that will make it difficult to do business with U.S. companies.
The repercussions quickly became evident as Google suspended some business with Huawei.
In Europe, chipmakers Infineon Technologies, AMS and STMicroelectronics dropped sharply, falling between 6% and 12% on growing fears of a disruption to the industry’s global supply chain.
“Market volatility continues to stem from announcements and interpretations of what is going on in trade disputes between the U.S. and its trading partners, but principally China,” said Jasper Lawler, head of research at London Capital Group.
“China are unlikely to take Google’s suspension of business with Huawei lying down.”
On the positive side, a U.S. decision on Friday to remove tariffs on Canadian steel and aluminum prompted Canada’s foreign minister to vow the quick ratification of a new North American trade agreement.
The MSCI index of world shares, which tracks shares in 47 countries, slipped 0.14%, leaving it 3.9% below its 2019 highs. The sudden return of trade war jitters has sent the stock market’s year-to-date rally into reverse.
U.S. S&P 500 e-mini futures dropped 0.51%.
Prominent investor Jim Rogers, who co-founded the Quantum Fund with George Soros, told the Reuters Global Markets Forum that he believed Washington and Beijing would soon announce a trade deal, although the current spat would not be the last time Trump tried to exploit the prospect of a trade war.
“These are negotiating tactics from Mr. Trump at the moment. What will happen is we will have some good news, the market will have a rally. It will probably be the last rally,” he said.
AUSSIE JUMPS
Oil prices briefly rallied after Saudi Energy Minister Khalid al-Falih said that there was consensus among OPEC and allied oil producers to reduce inventories “gently”.
Rising tensions in the Middle East have also supported oil prices in recent days. Trump on Sunday tweeted that a conflict with Tehran would be the “official end” of Iran.
Both U.S. crude and Brent crude jumped more than 1%, before giving up most of those gains as broader risk sentiment soured. [O/R]
U.S. West Texas Intermediate crude traded at $62.75 a barrel by 1030 GMT after earlier trading above $63. Brent crude was at $72.30 per barrel.
In currency markets, the Australian dollar jumped nearly 1% to $0.6890 after the center-right Liberal National Coalition pulled off a shock win in a federal election, beating the center-left Labor party.
The Indian rupee also rallied , gaining more than 1% to 69.36 rupees per dollar after exit polls pointed to a majority for Prime Minister Narendra Modi’s Bharatiya Janata Party and allies.
China’s offshore yuan rebounded after touching its weakest against the dollar since November on Friday. It last traded up 0.1% at 6.944 per dollar.
China’s central bank is expected to use foreign exchange intervention and monetary policy tools to stop it weakening past the psychologically important 7 yuan-per-dollar level in the near term, sources told Reuters.
The dollar was little changed against the euro at $1.1155.
Sterling recovered 0.2% to $1.2741 after suffering its biggest weekly loss since 2017 after an apparent collapse in Brexit talks in London.
German government bond yields edged higher. That followed a fall toward new 2-1/2 year lows last week after investors nervous about trade and a global economic slowdown flocked to safe-haven debt.
The 10-year U.S. Treasury yield was little changed at 2.396%.
Austrian yields held firm after a scandal prompted Chancellor Sebastian Kurz to pull the plug on his coalition with the far right at the weekend, raising the chances of a snap election.
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Dollar holds firm as market awaits Fed minutes; Aussie shines Monday 20th May, 2019 – Reuters
The dollar held onto last week’s gains on Monday as investors waited for Fed minutes that may give more clues on what prompted U.S. policymakers to strike a broadly neutral stance this month.
The minutes, due on Wednesday, are expected to give insights into the May. 1 Fed meeting which decided to keep interest rates steady and signalled little appetite to adjust them any time soon, taking note of strong jobs growth.
Since then, trade tensions between Washington and Beijing have escalated, casting a shadow on the outlook of global growth and fuelling expectations the U.S. central bank will have to cut interest rates in the coming months.
Indeed, market strategists note the implied yields on U.S. futures contracts are starting to price in a second rate cut this year as concerns have mounted.
“As such, these (Fed) minutes will take on added significance as markets try to figure out the Fed’s true message,” said Win Thin, global head of currency strategy at Brown Brothers Harriman in New York.
Increased expectations of rate cuts have so far have had little impact on the dollar with the currency holding firm against a basket of its rivals after rising 0.7% last week, its biggest weekly rise in two months.
The greenback has found strength from the escalating trade tensions as some investors have turned to it as a safe haven.
Still, positioning data suggested that strength may be temporary, as investors have trimmed some of their long positions in the U.S. currency against both its developed and emerging market rivals.
AUSSIE SHINES The Australian dollar surged and is on track for its biggest rise this year as investors cheered an unexpected election win by Prime Minister Scott Morrison’s conservative coalition.
The Aussie was last up 0.7% at $0.6914, having bounced from a four-month trough of $0.6865. It was briefly quoted as high as $0.6990 but dealers said that was a miss-hit and the actual transacted peak was $0.6938.
“The surprise victory is fuelling the rally as many expected the Labour party to win but an Australian rate cut is still very much on the cards in the coming months and that will weigh on the currency,” said Esther Maria Reichelt, an FX strategist at Commerzbank in Frankfurt.
The centre-left Labour party had been tipped to win the federal election, beating Morrison’s centre-right Liberal National Coalition, which investors see as more business-friendly.
Tepid economic data, including a rising jobless rate has stoked expectations the Australian central bank will cut interest rates as soon as July.
Britain’s pound recouped some losses after posting its biggest weekly drop in six months last week, edging 0.2% higher at $1.2736 and 0.1% stronger against the euro at 87.62 pence.
Prime Minister Theresa May said on Sunday she would make a “new bold offer” to British lawmakers in an attempt to get her thrice-defeated Brexit deal through parliament before she leaves office.
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Tainted oil hits Russian revenues but rouble immune for now Monday 20th May, 2019 – Reuters
Russia suffered a $1 billion shortfall in export revenues in the first two weeks of May after the discovery of contaminated oil disrupted pipeline flows to Europe, a Reuters calculation showed.
The final cost of the contamination may be several times higher, economists said, but it seems unlikely at this stage to dent the country’s already fragile growth prospects or rock the rouble.
Crude export flows have been disrupted since April, when high levels of organic chloride were found in oil pumped via Russia’s Druzhba pipeline, which serves Germany and some eastern European states.
There has been no official Russian estimate of the cost impact. In mid- May, Energy Minister Alexander Novak put the overall damage caused by dirty oil at below $100 million, but it was not clear exactly what he was referring to.
Reuters based its $1 billion estimate on export figures from sources familiar with energy ministry data and average monthly oil exports via Druzhba from last year, adjusted for changes in global oil prices.
Sources said that, compared to average April levels, Russia’s pipeline system cut oil intake by 6% between May 1 and May 16.
Russia should be able to compensate for shortfalls by selling the tainted oil at a discount and getting more petrodollars from other oil exports thanks to recently increased crude prices, analysts said.
LIMITED MARKET IMPACT It was not immediately clear how long it will take for Russian westbound oil supplies to reach to pre-crisis levels, but the operator of the Belarusian section of the Druzhba pipeline has said a full recovery including clean-up operations could take six months to complete.
The impact on Russia would be negligible if the situation is resolved soon, research firm Capital Economics said.
“(But) the contamination has also further tainted the reputation of Russia’s oil sector and, if problems become more persistent, European demand could eventually shift towards other sources,” it said.
In theory, if Russia were to cut oil output and exports by 1 million bpd over the course of a year, that would reduce gross domestic product growth by 0.8 percentage points, it added.
Economic growth is a sensitive issue.
President Vladimir Putin has ordered the government to bring the Russian economy into the world’s top five by 2024. But activity slowed in early 2019 to bring the economy to the brink of recession.
Dmitry Dolgin, chief economist at ING Bank in Moscow, said this year’s overall export revenue shortfall because of poor quality oil could hit around $5 billion. But that should not be critical given a current account surplus of more than $100 billion.
Assuming a figure of $1 billion, the current impact would be negligible for the currency market and for banks in Russia, given the size of their foreign currency reserves, said a financial market source close to the central bank.
Another source close to the government said the market impact would be close to zero.
The central bank and the finance ministry did not immediately reply to a request for comment on Monday.
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China's NetEase to launch first official Pokemon game in China Monday 20th May, 2019 – Reuters
Chinese gaming giant NetEase said on Monday that it would partner with The Pokemon Company and Marvel to release new games for the domestic market, as it looks to add more foreign content to its roster and shore up revenue.
A local version of Pokemon Quest will mark the first official Pokemon mobile game release for China, set to arrive nearly three years after Pokemon Go first hit the global market.
“The Pokemon Quest partnership is a new start and highly anticipated,” NetEase VP Ethan Wang said at an industry event.
NetEase will release the game in China in partnership with Japan’s Game Freak, the Pokemon developer.
NetEase did not reveal a release date for the game. Pokemon Quest first hit app stores globally in the summer of 2018.
The company said it had formed a separate partnership with Marvel to release “five or six” mobile games by the end of 2019.
The partnership with Marvel will include a global product, Wang said, adding NetEase hopes overseas revenue to account for 30 percent of its total in three years, versus 10 percent now.
NetEase, along with rival Tencent and other gaming firms, came under pressure last year as China stopped approving game licenses. NetEase shares plunged about 30 percent in 2018.
The stock has recovered since December after China resumed approvals. In March, regulators greenlit titles from NetEase.
Wang was he was hopeful the Marvel games will receive approval in time for a release by the end of 2019.
“My understanding is now we are gradually getting back to the right track,” he said.
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Smartphone maker Xiaomi's first-quarter revenue jumps 27%, beats estimates Monday 20th May, 2019 – Reuters
Chinese smartphone maker Xiaomi Corp reported better than-expected quarterly revenue on Monday due in part to steady growth in sales outside its home market.
The results indicate Xiaomi’s overseas expansion and focus on markets such as India and Europe are paying off as the smartphone market in China, the world’s biggest, slows.
Xiaomi’s revenue rose 27% percent in the quarter ended March from a year earlier to 43.8 billion yuan ($6.3 billion), beating an average estimate of 42.109 billion yuan in a survey of analysts polled by Refinitiv.
Xiaomi gets most of its revenue by selling mobile handsets, but it also makes money from selling online ads and other types of consumer hardware - an approach it described as a “triathlon” business model when it listed in Hong Kong in 2018. Its adjusted net income for the first quarter rose to 2.1 billion yuan, versus 1.7 billion a year ago.
According to data from Counterpoint Research, the overall smartphone market in China contracted 7% year-on-year in the first quarter of 2019.
Xiaomi’s share of the domestic smartphone market shrank 21% over the period, the same study shows, while rivals Oppo, Vivo, and Huawei each saw gains.
Xiaomi has tried to compensate for the slowdown at home by expanding abroad aggressively. It remains the leading phone vendor in India, and has grown steadily in Europe after launching across the continent throughout 2018.
Xiaomi has also attempted to move upmarket and raise the price of its flagship devices, while siphoning off its cheaper models into sub-brands.
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Delta’s new twice-daily service to Miami brings new winter-getaway opportunities Monday 17th May, 2019 – Caribbean News Now
Delta’s steady growth in Boston continues with the addition of new twice- daily service to Miami beginning this December, marking the 52nd nonstop destination for the global airline and its partners from Boston Logan International Airport.
Delta is also expanding with new daily frequencies from Boston to sun destinations including Orlando, Fort Myers, West Palm Beach, Fort Lauderdale and Punta Cana, Dominican Republic, as well as increasing seasonal service to New Orleans and Sarasota.
“It’s been a tremendous year for Delta in Boston already and we continue to keep climbing with new routes and frequencies, award-winning service and industry-leading reliability that sets Delta apart,” said Charlie Schewe, Delta’s Director — New England Sales.
With these additions, Delta and its partners will offer more than 150 daily departures from Logan by March 2020, a 25 percent increase compared to 2019.
“Delta’s new nonstop service between Boston and Miami and their new daily frequencies to the Caribbean are exciting new travel options for Boston customers seeking more sunshine during those cold winter months,” said Massport Acting CEO John Pranckevicius. “We thank Delta for their continued partnership and we look forward to the additional travel opportunities this will generate for New Englanders.”
Delta has doubled domestic daily departures out of Boston since 2013 and this fall will serve three additional domestic destinations — Chicago, Washington-Reagan and Newark-Liberty — while adding more frequencies in other key domestic markets, including Indianapolis, Philadelphia and Kansas City.
Delta is also deepening its global footprint from Boston with the launch of new international flights from the airline and its joint venture partners. Delta will begin seasonal Boston service to Lisbon and Edinburgh later this month as well as extend summer seasonal service to Dublin, rounding out a full slate of 18 international destinations— more than ever before — now directly accessible to Boston customers.
Delta and its partners together offer the most transatlantic flights and seats out of the northeast United States and next spring, Delta and Virgin Atlantic will add service to London-Gatwick, the eighth nonstop trans- Atlantic destination from Boston on Delta and its partners, who together offer up to 13 daily flights between Boston and Europe, including new KLM service to Amsterdam and a new morning departure to London-Heathrow operated by Virgin Atlantic.
For Boston customers whose travel plans call for a transpacific journey instead, Korean Air recently began nonstop flights from Boston to Seoul, one of the first additions to that joint venture’s network since Delta and Korean Air launched their partnership May.
Delta offers First Class and Delta Comfort+ on every Boston flight as well as full flat-bed seats in Delta One on all Boston flights to Europe and Los Angeles. In November 2019, Delta will introduce on all flights between Boston and London-Heathrow fully refurbished Boeing 767-400s, featuring a modern interior and all four branded seat products – including a more private Delta One experience, Delta Premium Select, Delta Comfort+ and Main Cabin – to give customers a greater choice when they travel.
Delta’s refreshed 764-400 aircraft will also feature the new wireless IFE system developed by Delta Flight Products with seat-back entertainment screens in every cabin and thoughtful touches like full-spectrum LED ambient lighting and memory foam cushions throughout the aircraft for added comfort.
Delta is investing in Boston in other ways, too with Massport’s partnership, Delta will assume operations at all gates at Logan’s Terminal A by the third quarter of 2019, growing its airport footprint by five gates. Delta also plans to expand one of its Delta Sky Clubs by 2020, including new showers, additional seating and a reimagined food and beverage area.
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Foreign and Commonwealth office announces new governor designate for Turks and Caicos Islands Monday 20th May, 2019 – Reuters
Nigel Dakin will replace Dr John Freeman as the next governor of the Turks and Caicos Islands (TCI), it was announced by the United Kingdom’s Foreign and Commonwealth Office.
Freeman will be retiring from the Diplomatic Service when he leaves TCI in July this year and Nigel Dakin will take up his appointment during the same month.
Dakin, who presently works in Washington, is a senior foreign policy official at the UK embassy to the US, is married with two children.
The governor-designate has extensive diplomatic experience in Russia and counter-terrorism. Dakin’s training and experience might suggest the FCO’s main concerns for the Turks and Caicos that it intends to place a greater focus on in the tiny Overseas Territory.
Dakin previously served as director and executive board member – UK Foreign and Commonwealth Office for three years and also served as a diplomat at the UK FCO for 17 years. As a diplomat, Dakin served as front line leadership and delivery roles in Afghanistan (2012-13), Pakistan (2007- 2010), Washington (2005-2007), India (1999-2001) and Nigeria (1998). When not overseas leadership of geographic, thematic and policy teams in London.
Dakin has also served as a staff officer in the UK ministry of defence supporting the secretary of state for defence, chief of defence staff and permanent under-secretary for defence on matters relating to the Irish peace process.
The governor-designate began his career in 1982 as an Army officer with the British army where he served in command, operational and training roles in the UK and overseas.
Freeman has been serving as governor of the Turks and Caicos Islands since October 2016, succeeding former governor Peter Beckingham in the post.
Freeman’s relationship with current Premier Sharlene Cartwright-Robinson was often turbulent, with the premier expressing frustration with Freeman and Attorney General Rhondalee Braithwaite. The TCI premier blamed both Freeman and Braithwaite for continually impeding the will of Cabinet and blocking significant economic development in the country.
The TCI is a British Overseas Territory that primarily depends on tourism and the government is keen to see to it that the country attracts Foreign Direct Investment (FDI) from it and ensures existing tourism investments can thrive and remain comfortable operating in the TCI.
However, Cartwright-Robinson cites numerous occasions where Freeman and Braithwaite stymie consensus reached in Cabinet to pursue a progressive tourism investment agenda.
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