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Latest Rating Actions by CariCRIS
▪ Eastern Credit Union’s rating downgraded to CariBBB- ▪ Government of the British Virgin Islands’ rating reaffirmed at CariAA- ▪ Republic Bank Limited’s rating reaffirmed at CariAA+ ▪ The Pegasus Hotels of Guyana Limited’s initial rating assigned at CariBBB- ▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA ▪ NCB Capital Markets Limited’s initial issue rating assigned at CariBBB- ▪ Government of Barbados rating downgraded to CariBBB- ▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+ ▪ Gulf City Limited’s rating reaffirmed at CariA+ ▪ National Flour Mills Limited’s rating reaffirmed to CariA- ▪ Telecommunications Services of Trinidad and Tobago Limited’s rating reaffirmed to CariA ▪ Colonial Fire and General Insurance Company Limited’s initial rating assigned at CariA
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REGIONAL
Trinidad and Tobago
Clico Fund ends day at $20.16 Overall market activity resulted from trading in 16 securities of which five advanced, four declined and seven traded firm.
One cent coin no more Over the next few months, you can expect to see less one cent pieces as you go about your financial transactions.
EOG Resources oil, gas output up...company drilled 7 new wells in 2017 Days before a delegation from Houston-based EOG Resources Inc. met with Prime Minister Dr Keith Rowley on March 7 in Port of Spain, the executives had told New York Stock Exchange (NYSE) investors (February 28) the company outperformed in Trinidad and Tobago, with average daily oil and gas production higher than anticipated.
Barbados
Grow what you eat seminar on best crops for environment As part of its efforts to encourage Barbadians to grow and eat what is produced on their own land, the Rural Development Commission (RDC) will be conducting its first ever Grow What You Eat Seminar on Wednesday, April 18.
Jamaica
$100 million for tourism curriculum at schools In a move geared towards providing certification for the hospitality workforce, the Ministry of Tourism and the Ministry of Education, Youth and Information have agreed to put aside some $100 million to establish a tourism curriculum for secondary schools, starting September.
Jamaica continued
Mandeville opens route for Canadians to buy JSE stocks In an effort to increase investment from the Diaspora, Michael Lee-Chin- founded Canadian brokerage firm Mandeville Private Client Inc has developed trade execution and custody infrastructure that will support the purchase of securities listed on the Jamaica Stock Exchange (JSE) by investors living in Canada.
Tourism boom for Kingston Tourism Minister Edmund Bartlett on Monday announced that Jamaica welcomed over 50,000 tourists in the first week of April, ahead of the island's carnival celebrations.
Business confidence takes a reality check Pollster Don Anderson yesterday described the latest survey of business and consumer confidence as “a reality check” following a 6.1 index points dip in business confidence.
JPS takes bigger stake in South Jamaica Power Power utility Jamaica Public Service Company JPS, more than doubled its stake in the joint venture handling construction of its power plant in Old Harbour, in order to meet state requirements.
Guyana
US$15M may not be enough – to cover legal fees in Guyana-Venezuela case, says Greenidge No part of the US$15M set aside by the Guyana government to pay the legal team representing it at the International Court of Justice (ICJ), in the Guyana-Venezuela border controversy has been used.
The Bahamas
Euro Blacklisting to End This Week? The Bahamas could be removed from the European Union’s (EU) ‘blacklist’ as early as this Thursday, with the Government hoping to at least get “an indication” of delisting progress.
Tourism Targets Latin American Expansion The Ministry of Tourism has brought Latin America to the Bahamas through a recent familiarisation trip for journalists.
British Virgin Islands
BVITB undertakes territory-wide greening initiative Underscoring the importance of the environment to the territory’s lifeblood, the BVI Tourist Board (BVITB) is gearing up to spearhead a major greening initiative.
Dominica
Dominica’s hurricane recovery efforts boosted by voluntourism program Electricity is returning, houses have been rebuilt and major attractions like Trafalgar Falls and the Emerald Pool have been officially declared open. Now, the next step in Dominica’s recovery efforts post-Hurricane Maria involves travellers.
St. Lucia
More St Lucians take up employment under Canadian farm worker programme The number of Saint Lucians employed on the Canadian Seasonal Agricultural Farm Worker Programme is on the rise. Since assuming responsibilities as the Minister for Labour in June 2016, Stephenson King has been on a drive to ensure that many more Saint Lucians benefit from the Canadian initiative, which began in 1967.
St. Kitts and Nevis
Sound fiscal management leading to further advancements of St. Kitts and Nevis The prudent approach taken in the management of the country’s fiscal resources by the Dr Harris-led Team Unity Administration is leading to the further advancement and development of St. Kitts and Nevis, with the benefits trickling down to the ordinary citizens of the twin island Federation.
Other Regional
CARIFORUM to host regional consultation on effective platforms for wider Caribbean dialogue in Barbados The Caribbean Forum of the Group of African, Caribbean and Pacific (ACP) states (CARIFORUM) will host a consultation to assess the development of a framework for an effective platform for structured and continuous dialogue between CARIFORUM and the French Caribbean Outermost Regions (FCORs) and British and Dutch Overseas Countries and Territories (OCTs). The consultation will be held in Barbados, April 11-12, 2018.
CARICOM pursues regional customs document A proposed regional Single Administrative Document (SAD) for CARIFORUM countries is currently under consideration by regional Customs Administrations at the Secretariat of the Caribbean Community (CARICOM).
INTERNATIONAL
United States
Federal Reserve proposes new capital rules for Wall Street The Federal Reserve on Tuesday proposed new rules that could allow some large banks to reduce the amount of capital they must hold as a cushion against a future economic shock.
Futures drop on rising U.S.-Russia tensions over Syria U.S. stock index futures fell sharply on Wednesday due to rising concerns over confrontation between the United States and Russia over military action in Syria.
Dollar mired at two-week lows as Syria fears grow The U.S. dollar slipped to a two-week low against a basket of currencies on Wednesday as trade war fears receded but uncertainty over possible Western military action against Syria bred risk aversion among some investors.
United Kingdom
UK 10-year bond yields touch one-week low on Syria worries British 10-year government bond yields fell to a one-week low on Wednesday as investors sought safe assets after U.S. President Donald Trump warned Russia that missiles “will be coming” in Syria.
Sterling pauses on soft data Sterling trimmed gains on Wednesday after British manufacturing output fell unexpectedly in February, its first drop in almost a year, adding to signs the economy may have slowed in the first quarter.
Europe
EU plans more powers for consumers to sue companies The European Union plans more powers for consumers to sue firms such as Volkswagen (VOWG_p.DE) after the Dieselgate scandal showed the limits of consumer protection authorities to curb corporate cheating.
China
China's Xi renews vow to open economy, cut tariffs as U.S. trade row deepens Chinese President Xi Jinping promised on Tuesday to open the country’s economy further and lower import tariffs on products like cars, in a speech seen as an attempt to defuse an escalating trade dispute with the United States.
Japan
Nikkei falls first time in 3 days; SoftBank outperforms Japanese stocks fell for the first time in three days on Wednesday following a strong rally the previous day, but index-heavy SoftBank rose after sources said that Sprint is in new talks to merge with T-Mobile.
Global
Cushing's oil market clout wanes amid U.S. export boom The volume of oil sitting in 300 steel tanks in a nine-square-mile radius in Cushing, Oklahoma has long been a key barometer for the health of U.S. crude supply and the nation’s benchmark for daily trading of billions of dollars in the commodity.
Grow what you eat seminar on best crops for environment Monday 10th April, 2018 – Nation News
As part of its efforts to encourage Barbadians to grow and eat what is produced on their own land, the Rural Development Commission (RDC) will be conducting its first ever Grow What You Eat Seminar on Wednesday, April 18.
Entitled Selecting the Best Crops for Your Environment, the free seminar targets all rural households with an interest in growing produce.
It will run from 10 a.m. to noon in the RDC Training Room, Bridge Street, Bridgetown.
Director of the RDC, Randolph Outram, will welcome participants to the seminar, which will be facilitated by the Commission’s Senior Field Officer, Osmond Harewood, and Extension Officer, Alvin Romeo.
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$100 million for tourism curriculum at schools Wednesday, 11th April, 2018 – Jamaica Observer
In a move geared towards providing certification for the hospitality workforce, the Ministry of Tourism and the Ministry of Education, Youth and Information have agreed to put aside some $100 million to establish a tourism curriculum for secondary schools, starting September.
“Minister (Ruel) Reid and I have agreed we are putting $100 million to establish, starting September, a curriculum in high schools for the certification of high schools in hospitality,” Tourism Minister Edmund Bartlett said.
Speaking at the graduation ceremony for the first cohort of Jamaica Centre of Tourism Innovation (JCTI), Bartlett also noted that as of Monday, April 9, the JCTI would be morphing into a section of the Department of Tourism Innovation under the Tourism Enhancement Fund.
The graduation ceremony was held at the Montego Bay Convention Centre in Rose Hall, St James on Sunday.
The JCTI was launched in November of last year as a three-month pilot roll-out aimed at increasing access to graduates in culinary arts, hospitality, and tourism to supervisory and management jobs in the sector.
The programme, which is for tourism workers with tertiary-level degrees or NVQJ Level IV or V certification in hospitality supervision/hospitality management or culinary arts, was made possible through partnerships with the American Hotel and Lodging Educational Institute and the American Culinary Federation (ACF).
Meanwhile, Education Minister Ruel Reid welcomed the JCTI and suggested that a similar programme should in place for the workforce in every sector.
“This is indeed a very heartening moment for me as Minister of Education, Youth and Information, because I have said to Minister Bartlett that we are going to bring this right across Jamaica as a model. Sixty-seven per cent of our current workforce have no training or certification,” the education minister said.
Reid also cited the need for a memorandum of understanding for employers in the hospitality sector “to set aside a minimum of three weeks per year for professional development”.
“I want a firm MOU, or we are going to put it in the law that hotel operators, owners of hotels, owners of industry — we want a MOU, an understanding, because industries are not static. There are new initiatives and we have to keep innovating to stay ahead of the game. So I am saying we need a culture that invests in human capital development,” he argued.
The group of 150 received certification from the pilot JCTI.
This includes: 75 Certified Hospitality Supervisors from the JCTI Pilot; 13 lecturers and 12 students with Certification in Hospitality Analytics; 11 candidates who completed ACF certification; and two ACF Certified Executive Chefs who received certification as Certified Evaluators; and 50 Certified Hospitality Supervisors from the Centre of Occupational Studies Programme. Additionally, three executive chefs were facilitated with certification.
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Mandeville opens route for Canadians to buy JSE stocks Wednesday, 11th April, 2018 – Jamaica Observer
In an effort to increase investment from the Diaspora, Michael Lee-Chin- founded Canadian brokerage firm Mandeville Private Client Inc has developed trade execution and custody infrastructure that will support the purchase of securities listed on the Jamaica Stock Exchange (JSE) by investors living in Canada.
The arrangement, which was created in partnership with Fidelity Clearing Canada ULC (“Fidelity Clearing Canada”), will provide Mandeville's advisors and clients with access to JSE-listed investments through NCB Capital Markets Ltd. According to the company, clients are able to purchase investments in registered as well as non-registered accounts.
Investments on the JSE are typically not available for direct purchase by Canadian investors. However, senior vice-president and chief operating officer of Mandeville, Frank Laferriere, noted that the initiative is part of client/advisor experience road map that Mandeville is pursuing.
“We are pleased that our clients will now have access to the JSE as it provides a broader range of quality investment opportunities with high growth potential,” he said in a release from the company.
The arrangement is also aimed at improving market liquidity as Jamaicans living in Canada invest in their homeland while gaining attractive returns.
In 2015, the JSE was recognised by Bloomberg as the Best-Performing Stock Exchange in the world. The market index soared by 97 per cent with gains attributed to foreign acquisitions, stronger investor safeguards and a rebounding economy.
The JSE remained in the top 10 for 2016 and ended 11th last year. The local stock exchange has also demonstrated heightened investor confidence evidenced by its profitable performance and increased and continuous oversubscription of initial public offers (IPOs).
According to Mandeville, these factors have influenced its decision.
“As one of Canada's largest carrying brokers, Fidelity is motivated to find ways to support the unique business requirements of our clients, including accessing foreign markets. By working closely with Mandeville and their Jamaican partners, Fidelity was able to implement the necessary trade execution and custody infrastructure to support this initiative,” said Ted George, head of trading for Fidelity Clearing Canada.
The oldest and largest stock exchange in the English-speaking Caribbean, the JSE is the first to have an electronic trading platform, making overseas transactions more feasible.
Mandeville Holdings Inc is the parent company of the Mandeville group of companies, which includes Mandeville Private Client Inc, Mandeville Insurance Services Inc and Portland Investment Counsel Inc.
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Tourism boom for Kingston Wednesday, 11th April, 2018 – Jamaica Observer
Tourism Minister Edmund Bartlett on Monday announced that Jamaica welcomed over 50,000 tourists in the first week of April, ahead of the island's carnival celebrations.
The event, which stakeholders are calling the biggest Carnival in Jamaica's history, represented an increase of 12.4 per cent in visitor arrivals over the same period in 2017.
Reports from the ministry are that hotels and Airbnb operators benefited from the increase in visitors. Taxi operators, restaurants, street vendors, bars and party equipment rental companies also capitalised on the yearly event.
“Carnival in Jamaica is a marketable product on the calendar of events that attracts thousands of visitors to our island. This is why we have invested so heavily in the event and increased promotion globally through the Jamaica Tourist Board.
“I am so happy that a whopping 51,384 visitors chose to come to Jamaica to partake in this very important festivity — making it undoubtedly one of the strongest weeks in arrivals so far in 2018,” said Minister Bartlett in a press release.
The Ministry of Tourism acquired the brand Carnival in Jamaica last year. Through the initiative, Brand Jamaica and Kingston is being effectively positioned as a preferred carnival destination and is in keeping with the ministry's mandate to enhance seasonal events, including Carnival, through its Tourism Linkages Network.
“We have been putting measures in place to transform the carnival experience locally. There is an even broader effort to enhance and package various local entertainment offerings to attract more visitors to the island, especially to Kingston. Thanks to this targeted marketing approach, arrivals in Kingston have been in double digits since the Carnival in Jamaica initiative began,” said Bartlett.
The 'Carnival in Jamaica' initiative aims to bolster efforts to market Jamaica as a diverse entertainment destination. It incorporated all carnival activities during the peak period of March 31 to April 8, 2018, with the intention of making it a national product.
Following a highly successful inaugural Carnival in Jamaica initiative last year, the Ministry of Tourism once again collaborated with the Ministry of Culture, Gender, Entertainment and Sport and the National Carnival in Jamaica Stakeholders Committee to ensure that the event would remain successful.
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Business confidence takes a reality check Wednesday, 11th April, 2018 – Jamaica Observer
Pollster Don Anderson yesterday described the latest survey of business and consumer confidence as “a reality check” following a 6.1 index points dip in business confidence.
Anderson, who was speaking at the Jamaica Chamber of Commerce first quarter of 2018 business and consumer confidence indices, reasoned that the dip in confidence was too small to be considered an established change in business sentiment and instead should more appropriately be considered a “normalizing of confidence” on the heels of spike periods in 2017.
“We can't therefore begin to say or cast any gloom or think negatively about what businesses are thinking, because it's a fall off. But we will note that the fall off in the first quarter brings it back to the high of the third quarter in 2017. So that what we are seeing was a spike in 2017 fourth quarter and in a way, a reality check,” he said.
The 2016 remains the highest confidence period for both businesses and consumers across the island recording indexes at 144.6 and 155.6 respectively. Since then, Jamaican business confidence only came close to the record levels set in 2016 during the fourth quarter of 2017 at 142.6.
The consumer confidence level, however, rose to 151.1 at the end of third quarter 2017 and has surpassed levels set in 2016 to reach 156.4 for the first quarter 2018.
The growth in consumer confidence marks another quarter that businesses and consumers shared opposing views about economic prospects of the country. Last quarter, the JCC reported that while business optimism soared to second-highest level the country had seen since 2001, consumer confidence was trending downward.
“Normally, there is a parallel between the business and consumer confidence surveys, meaning, they tend most often, to move in identical directions. When one goes up, the other one goes up; maybe not to the same extent but there is a pattern,” Anderson said.
“This pattern is not maintained as consumers' confidence grew noticeably at a time when business confidence fell roughly by the same margin. The information could be said to be counter-intuitive as anecdotally, there is a notion that consumers are experiencing level of difficulty, making ends meet,” he continued.
Anderson blamed the dip in business confidence on declines in profit outlook, expectations for the economy and price expectations. The proportion of firms with profits exceeding expectations dropped to 17 per cent in the first quarter of 2018, compared to 22 per cent during the same period of 2017.
Firms that expected an improved economy decreased by 10 percentage points from 58 per cent in the fourth quarter of 2017. It was also six percentage points lower than the average in 2017 and the lowest recorded since the fourth quarter of 2015.
On the positive side, consumer's anticipation of increased income over the next twelve months drove increased optimism. Income gains were anticipated by 53 per cent in first quarter of 2018, up from 48 per cent in the last quarter 2017.
Anderson noted that the increase in consumer optimism comes at a time when official communication suggests that a significant number of new jobs that have become available.
“Indeed, the job expectation index is higher than at any other time, but this does not negate the fact that jobs are still perceived to be scare, given the need,” he said.
“Perhaps most interestingly, the slightest higher level of optimism and confidence amongst the consumer, they do not anticipate that this will mean any immediate improvement in their standard of living,” the pollster continued.
With regard to purchase patterns, Anderson said consumers do not believe that this improvement in optimism means that they can now go on a spending spree. Plans have remained unchanged with consumers more optimistic about taking a vacation than they were about buying a car or a home.
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JPS takes bigger stake in South Jamaica Power Wednesday, 11th April, 2018 – Jamaica Gleaner
Power utility Jamaica Public Service Company JPS, more than doubled its stake in the joint venture handling construction of its power plant in Old Harbour, in order to meet state requirements.
Under a US$16-million transaction, JPS increased its holding in South Jamaica Power Company Limited (SJPC) from 20 per cent to 49.8 per cent as at December 2017 and plans to take an even larger position in the company going forward.
The move conforms with a directive from the Generation Procurement Entity previously known as the Electricity Sector Enterprise Team, or ESET that JPS own more than 50 per cent of the shares in the company handling the development of the 290MW power plant in Old Harbour, JPS told the Financial Gleaner. South Jamaica Power is the vehicle being used for the purpose.
"JPS will continue to invest in SJPC such that at the end of construction, the company will own more than 50 per cent of the shares in SJPC," said Audrey Williams, media and public relations manager at JPS.
The remit of the Generation Procurement Entity includes managing the replacement of existing electricity generation capacity and the procurement of new capacity. It replaced ESET when that unit fulfilled its mandate to facilitate the urgent replacement of baseload electricity generation capacity with lower cost-fuel sources.
In order to effect the increase of its holdings in SJPC, the power distributor incorporated a new subsidiary called South Jamaica Energy Holdings Limited (SJEH), to primarily act as a holding of investments. Consequently, the company transferred its interest in SJPC to its fully owned subsidiary, SJEH.
To effect the transaction, JPS explained that there was an exchange of funds of US$16 million, which represented the capital injections made during the year. These funds were provided by JPS to SJEH and will be converted to equity, which will be held by JPS.
The remaining shareholders in SJPC are JPS's co-parents Marubeni Corporation and Korea East West Power, which each own 20.1 per cent; and the PetroCaribe Development Fund, which holds the other 10 per cent.
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More St Lucians take up employment under Canadian farm worker programme Tuesday 10th April, 2018 – Caribbean News Now
The number of Saint Lucians employed on the Canadian Seasonal Agricultural Farm Worker Programme is on the rise. Since assuming responsibilities as the Minister for Labour in June 2016, Stephenson King has been on a drive to ensure that many more Saint Lucians benefit from the Canadian initiative, which began in 1967.
In his quest to stimulate growth in the economy through the programme, King has since led two technical delegations to Canada to meet with farm owners and other influential partners between 2016 and 2017.
Now, more than ever before, these efforts are bearing fruit.
In his presentation on the 2018/2019 Appropriations Bill debate in Parliament on Thursday April 8, 2018 the labour minister confirmed that Saint Lucia is beginning to see a steady rise in its numbers on the Canadian Farm Worker Programme.
King told the nation the number of Saint Lucians now employed on farms in Canada has increased by 25 percent so far and projections indicate a further rise in the numbers in the coming years. In 2017 the number of Saint Lucians on the programme stood at 285 persons as compared to 231 in 2015 and 221 in 2016.
The increase in numbers has also resulted in a significant increase in remittances accounted for by the workers. In 2017, the earnings by the 285 Saint Lucians on the Farm Worker Programme had an estimated net value of $4.702 million.
King says this augers well for the local economy.
Saint Lucia now has the second largest number of OECS nationals employed on the Canadian Seasonal Agricultural Farm Worker Programme, only six workers shy of St Vincent and the Grenadines.
The island’s labour minister says government will continue making moves to support the programme and ensure the number of Saint Lucian workers increases.
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Tourism Targets Latin American Expansion Monday 10th April, 2018 – Tribune242
THE Ministry of Tourism has brought Latin America to the Bahamas through a recent familiarisation trip for journalists.
Media personalities from Colombia, Peru and Panama visited Nassau and Paradise Island to receive a taste of Bahamian culture, as this nation seeks to open up new visitor markets in the southern hemisphere.
Giovanni Grant, the Ministry's general manager of multi-destinations, said: "Latin America is hugely important to the Bahamas because when Latin Americans come they stay longer; they spend a lot more and they go into the local community. So, they come downtown, they shop for luxury goods and food is huge for the Latin Americans."
While in Nassau, the journalists visited the forts, the Queen's Staircase, Educulture, Graycliff, restaurants and other cultural experiences.
"Copa Airlines has four flights per week - Wednesday, Thursday, Friday and Saturday from Panama City non-stop to Nassau," said Mr Grant. "What that does is connect all of Latin America, which is their hub, and they fly to Nassau.
"The population of Brazil and Mexico exceeds the population of the United States, so this is a huge market that we have had a relationship with and Copa Airlines is that partner to do it."
The Ministry of Tourism is also marketing with Copa Airlines in Argentina, Brazil and Panama. "We are doing online, newspapers, magazines and cinema. We are going back into the market with new vigour to let everyone in Latin America know we are here, and we are here to stay," added Mr Grant. "We want the journalists to take home the message that the Bahamas is open for business. We have new products to offer, new experiences. The Bahamas is still a sexy destination. Everyone wants to come to us and it's an exciting time to come to the destination."
The Ministry of Tourism said language barriers are not an issue, as there are tour operators to help Latin Americans navigate the Bahamas.
Clint Sawyer, a tour operator of Bahamas Tours en Español, whose clients are 80 per cent Latin American, said: "For me, it's important to show them the true Bahamian experience.
"I want them to see Bahamian culture, to see how the Bahamian people are. I want them to come again and again and tell others to come as well."
Dani Dini, an Argentinian social media influencer, said of her visit: "This is an amazing place. I'm amazed at this conch salad and conch fritters and the drinks.
"It is like a very vibrant and funny place. You can feel the energy and you just lounge in Nassau. I don't want to leave."
She has a blog with 30,000 followers and added: "It's very easy to come here, and it is definitely worth coming here because of the climate and the people, landscapes and amazing beaches. We don't have anything like it in South America.
"I'm trying to communicate in real time the experience that we are having. The food that we are eating, what we are experiencing -- the city, the island and all they can do here."
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Sound fiscal management leading to further advancements of St. Kitts and Nevis Tuesday 10th April, 2018 – sknvibes
The prudent approach taken in the management of the country’s fiscal resources by the Dr Harris-led Team Unity Administration is leading to the further advancement and development of St. Kitts and Nevis, with the benefits trickling down to the ordinary citizens of the twin island Federation.
That view was expressed by Prime Minister Dr the Honourable Timothy Harris on Friday, April 6, during a special contract signing ceremony with small contractors for Special Capital Road Projects in St. Kitts. Under this project, five local small construction businesses were contracted to undertake road work as part of phase one.
“The road rehabilitation project is estimated to cost us in the region of EC$69 million, and that is a lot of money. It is a significant investment and we are doing it not by borrowing one cent; we are doing it from savings and revenues realized because we have managed our country well,” Dr Harris said.
The Finance Minister continued, “On top of that EC$69 million over time for the road rehabilitation programme, $27 million more will come as we do expanded work at the Old Road Bay to ensure that each time a hurricane comes we don’t have to, as it were, shut down the network between the western end of the country and Basseterre.”
During his March 14, 2018 press conference, Prime Minister Harris stated that an updated forecast indicated that St. Kitts and Nevis’ economy will grow at 4.5 percent in 2018.
This growth, according to the prime minister, will be driven by several capital projects that are being rolled out this year at a significant pace.
“We are expecting to realize this ambitious goal of [nigh] five percent growth because of the strong private sector investment that is taking place in the country, which is now going to be complemented by the most significant public-sector capital project ever implemented by any administration in St. Kitts and Nevis.”
“What this means is…jobs for people, jobs for people within their communities, jobs for persons outside of their communities and importantly because we are a government that puts the people first we have ensured, and we have been careful to ensure, that the contractors who are participating in this project are all locals,” the honourable prime minister stated.
Other capital projects currently being undertaken include the construction of the new Tabernacle Health Centre, renovation work at the Coast Guard Unit base at Bird Rock and the relocation of Vehicle Maintenance Division of the Public Works Department (PWD) to the compound of the St. Kitts Sugar Manufacturing Corporation (SSMC).
The relocation of the PWD facilities will effectively pave the way for the start of construction on the East Line Bus Terminal at the division’s present location on Wellington Road. That project is expected to commence in May.
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CARIFORUM to host regional consultation on effective platforms for wider Caribbean dialogue in Barbados Wednesday 11th April, 2018 – Caribbean News Now
The Caribbean Forum of the Group of African, Caribbean and Pacific (ACP) states (CARIFORUM) will host a consultation to assess the development of a framework for an effective platform for structured and continuous dialogue between CARIFORUM and the French Caribbean Outermost Regions (FCORs) and British and Dutch Overseas Countries and Territories (OCTs). The consultation will be held in Barbados, April 11-12, 2018.
According to the director general of CARIFORUM, Percival Marie, “The regional consultation serves to examine CARIFORUM’s relationship with the FCORs and the OCTS, which was previously promoted through four thematic task forces (TTFs) in the areas of natural disaster management, HIV/AIDS, trade and investment, and interconnection.”
The regional consultation will also review the report on the operations of the four TTFs and it is expected that officials will advise on the continued relevance of this mechanism in the current social, economic and political environment and/or advise on appropriate alternative mechanisms to ensure sustainable dialogue and mechanisms for strengthened political, economic and technical cooperation.
According to Marie, this means examining whether or not relationships have deepened and widened and whether strategies agreed at the Clovis Beauregard Conference, convened in 2005, worked.
“At the end of the consultation we expect to have a revised strategy, based on lessons learned, for deepening and expanding the relationship with the FCORs and OCTs,” Marie said.
The opening of the Consultation will include a feature address by minister of foreign affairs, foreign trade and international business, Barbados Senator Maxine McClean. The CARIFORUM director general and the ambassador of the European Union Delegation in Barbados will also speak at the opening ceremony.
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CARICOM pursues regional customs document Wednesday 11th April, 2018 – Kaieteur News
A proposed regional Single Administrative Document (SAD) for CARIFORUM countries is currently under consideration by regional Customs Administrations at the Secretariat of the Caribbean Community (CARICOM).
The document will address the critical need to adopt harmonised approaches for conducting trade across borders. The three-day meeting opened yesterday and will engage officials of regional Customs Administrations.
CARICOM’s Assistant Secretary-General, Trade and Economic Integration, Joseph Cox, said that as the trading environment continues to evolve, and the Caribbean Community seeks to deepen the integration process, trade facilitation has shifted to a higher level of priority on the regional trade agenda.
“In keeping with the Community’s vision of full economic integration and keeping with our obligations under the European Partnership Agreement, there is a critical need to adopt harmonised approaches for conducting trade across borders,” Cox told the meeting.
Assisting in the process, the CARICOM Secretariat has already assessed the state of readiness of Member States Customs Administrations.
The report of a study recommended that a common document be developed, for which the secretariat began work to develop a SAD in 2010.
This effort led to a draft SAD of 48 information fields being developed but following several setbacks and non-interest at times by the member states, the Secretariat said it is now pleased to witness the completion of this journey.
“The Secretariat’s focus through the Customs Committee has always been one of keeping track of the challenges being experienced by the Member States and mobilising resources to target such challenges. Our encounters with regional customs authorities suggest that non- compliance among traders to declare true and correct values is the single biggest cause of revenue leakage,” the assistant Secretary-General said.
According to Cox, as the trading environment continues to evolve, and as the Community seeks to deepen the integration process, trade facilitation has shifted to a higher level of priority on the regional trade agenda.
The Community, he said, has taken its cue from the “going-into-effect” of the World Trade Organisation’s (WTO) Trade Facilitation Agreement (FTA), for which Member States are finalising their category B and C commitments.
He said the Community’s approval of model harmonised Customs Bill and Regulations in September 2016, and advanced work in developing a CARICOM Customs Procedure Manual, along with the signing last month of a Memorandum of Understanding with the World Customs Organisation, CARICOM and by extension CARIFORUM, have opened doors for the future landscape of trade.
The workshop will conclude on Thursday.
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Federal Reserve proposes new capital rules for Wall Street Wednesday 11th April, 2018 – Reuters
The Federal Reserve on Tuesday proposed new rules that could allow some large banks to reduce the amount of capital they must hold as a cushion against a future economic shock.
The proposal may clear the way for some large banks to reduce their capital levels in the future but the largest firms on Wall Street are not likely to get such relief, the Fed said.
The proposal is expected to reduce bank paperwork and also make it easier for regulators to monitor the health of banks, said Randal Quarles who is the top Fed official in charge of regulations.
“Our regulatory measures are most effective when they are as simple and transparent as possible,” Quarles, the Fed Vice Chairman for Supervision, said in a statement.
The Fed said the proposed changes are likely to somewhat increase the amount of capital required for the 30 largest banks known as GSIBs or global systemically important banks.
The measures should modestly decrease the amount of capital required for banks smaller than the GSIBs, the Fed said.
“No firm is expected to need to raise additional capital as a result of this proposal,” the Fed said in a statement.
Banks and other stakeholders will have 60 days to comment on the proposal that is likely to take effect next year, said the Federal Reserve.
The new capital standards would be the first reform of capital standards conceived after the decade-old financial crisis.
The new capital standard would be called the ‘stress capital buffer’ and work in tandem with the annual Fed check-up on bank health known as the ‘stress test’.
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China's Xi renews vow to open economy, cut tariffs as U.S. trade row deepens Wednesday 11th April, 2018 – Reuters
Chinese President Xi Jinping promised on Tuesday to open the country’s economy further and lower import tariffs on products like cars, in a speech seen as an attempt to defuse an escalating trade dispute with the United States.
While much of his pledges were reiterations of previously announced reforms that foreign businesses say are long overdue, Xi’s comments sent stock markets and the U.S. dollar higher on hopes of a compromise that could avert a trade war.
Xi said China will widen market access for foreign investors, addressing a chief complaint of its trading partners and a point of contention for U.S. President Donald Trump’s administration, which has threatened billions of dollars in tariffs on Chinese goods.
Trump struck a conciliatory tone in response to Xi’s speech, saying in a post on Twitter that he was “thankful” for the Chinese leader’s kind words on tariffs and access for U.S. automakers, as well as his “enlightenment” on the issue of intellectual property.
“We will make great progress together!” Trump tweeted.
Washington charges that Chinese companies steal the trade secrets of American companies and force them into joint ventures to get hold of their technology, an issue that is at the centre of Trump’s current tariff threats.
The latest comments from both leaders appear to reinforce a view that a full-scale trade war can be averted, although there have been no talks between the world’s two economic superpowers since the U.S. tariffs were announced.
“President Xi’s speech appears to have struck a relatively positive tone and opens the door to potential negotiations with the U.S. in our view. The focus now shifts to the possible U.S. response,” economists at Nomura said.
“But of course, actions speak louder than words. We will keep an eye on the progress of those opening-up measures.”
The speech at the Boao Forum for Asia in the southern province of Hainan had been widely anticipated as one of Xi’s first major addresses in a year in which the ruling Communist Party marks the 40th anniversary of its landmark economic reforms and opening up under former leader Deng Xiaoping.
Xi said China would raise the foreign ownership limit in the automobile, shipbuilding and aircraft sectors “as soon as possible” and push previously announced measures to open the financial sector.
“This year, we will considerably reduce auto import tariffs, and at the same time reduce import tariffs on some other products,” Xi said.
He said “Cold War mentality” and arrogance had become obsolete and would be repudiated. His speech did not specifically mention the United States or its trade policies, which have been assailed by Chinese state media in recent days.
Vice Premier Liu He had already vowed at the World Economic Forum in January that China would roll out fresh market opening moves this year, and that it would lower auto import tariffs in an “orderly way”.
Chinese officials have promised since at least 2013 to ease restrictions on foreign joint ventures in the auto industry, which would allow foreign firms to take a majority stake. They currently are limited to a 50 percent stake in joint ventures and cannot establish their own wholly owned factories.
Tesla’s Chief Executive Elon Musk has railed against an unequal playing field in China and wants to retain full ownership over a manufacturing facility the company is in talks to build there.
“This is a very important action by China. Avoiding a trade war will benefit all countries,” Musk tweeted after Xi’s speech.
Foreign business groups welcomed Xi’s commitment to reforms, including promises to strengthen legal deterrence on intellectual property violators, but said the speech fell short on specifics.
“Ultimately U.S. industry will be looking for implementation of long-stalled economic reforms, but actions to date have greatly undermined the optimism of the U.S. business community,” said Jacob Parker, vice president of China operations at the U.S.-China Business Council.
EASING OF TENSION
Jonas Short, head of the Beijing office at Everbright Sun Hung Kai, said the market was cheered by Xi’s speech because it was framed in more positive terms which could ease trade tensions, but he voiced caution about promised reforms.
“China is opening sectors where they already have a distinct advantage, or a stranglehold over the sector,” Short said, citing its banking industry, which is dominated by domestic players.
Xi’s renewed pledges to open up the auto sector come after Trump on Monday criticized China on Twitter for maintaining 25 percent auto import tariffs compared to the United States’ 2.5 percent duties, calling such a relationship with China not free trade but “stupid trade.”
Analysts have cautioned that any Chinese concessions on autos, while welcome, would be a relatively easy win for China to offer the United States, as plans for opening that sector had been under way well before Trump took office.
But Vice Commerce Minister Qian Keming said at the forum on Tuesday that China’s economic reforms were driven by domestic factors and not due to external pressures.
Xi said China would accelerate opening up its insurance industry, with Shanghai Securities News citing a government researcher after the speech saying foreign investors should be able to hold a controlling stake or even full ownership of an insurance company in the future.
Trump’s move last week to threaten China with tariffs on $50 billion in Chinese goods was aimed at forcing Beijing to address what Washington says is deeply entrenched theft of U.S. intellectual property and forced technology transfers from U.S. companies.
Chinese officials deny such charges and responded within hours of Trump’s announcement of tariffs with their own proposed commensurate duties.
The move prompted Trump last week to threaten tariffs on an additional $100 billion in Chinese goods, which have yet to be identified. None of the announced duties have been implemented yet, offering room for negotiation.
Beijing charges that Washington is the aggressor and spurring global protectionism, although China’s trading partners have complained for years that it abuses World Trade Organization rules and practices unfair industrial policies that lock foreign companies out of crucial sectors with the intent of creating domestic champions.
While U.S. officials, including Trump, have recently expressed optimism that the two sides would hammer out a trade deal, Chinese officials in recent days have said negotiations would be impossible under “current circumstances”.
Dallas Federal Reserve Bank President Robert Kaplan, on a visit to Beijing, said he was optimistic that very few if any of the proposed tariffs by the United States and China announced in recent weeks will actually be implemented.
“I think it’s so clearly in the interest of both countries that we have a constructive trading relationship and that we have substantive talks to redress these issues.”
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Futures drop on rising U.S.-Russia tensions over Syria Wednesday 11th April, 2018 – Reuters
U.S. stock index futures fell sharply on Wednesday due to rising concerns over confrontation between the United States and Russia over military action in Syria.
The face-off between the two countries gained ground after Russia warned that any U.S. missiles fired at Syria over a suspected chemical weapons attack on a rebel enclave would be shot down.
As a reply, U.S. President Donald Trump declared that missiles “will be coming” and blasted Moscow for standing by Syrian President Bashar Assad.
“There are some warnings about escalation of situation in Syria, that’s what’s impacting... it could escalate into a greater military conflict,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“Investors are probably going to take a little bit of a cautious approach until the tensions in Syria diminishes.”
At 7:29 a.m. ET, Dow e-minis 1YMc1 were down 259 points, or 1.06 percent. S&P 500 e-minis ESc1 fell 26.75 points, or 1.01 percent and Nasdaq 100 e- minis NQc1 declined 68 points, or 1.03 percent.
The main U.S. indexes closed up nearly 2 percent on Tuesday after Chinese President Xi Jinping promised to lower import tariffs, in an attempt to defuse trade dispute with the United States.
Investors will also be looking forward to an update on inflation and monetary policy.
The Labour Department is expected to say its seasonally adjusted consumer price index will remain unchanged in March, after a 0.2 percent gain in February.
The core CPI is seen increasing 2.1 percent year-on-year, up from 1.8 percent in the previous month. The report is due at 8:30 a.m. ET.
The Federal Reserve is set to release the minutes of its meeting held in mid- March, at which it voted to raise interest rates.
The minutes will also show the view within the Fed on the possible impact of the Trump administration’s trade policies.
Among stocks, Facebook Inc (FB.O) shares were down more than 1 percent in premarket trading.
Shares closed up 4.5 percent on Tuesday after Chief Executive Mark Zuckerberg, in the first of two U.S. congressional hearings, made no further promise to support new legislation or change how the social network does business.
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Nikkei falls first time in 3 days; SoftBank outperforms Wednesday 11th April, 2018 – Reuters
Japanese stocks fell for the first time in three days on Wednesday following a strong rally the previous day, but index-heavy SoftBank rose after sources said that Sprint is in new talks to merge with T-Mobile.
The Nikkei ended 0.5 percent lower to 21,687.10, after rising for the past two days. The market, along with a host of global risk assets, had a solid session on Tuesday after China’s President Xi Jinping helped ease fears over a U.S.-China trade war.
Investors were keeping a wary eye on discussions between U.S. President Donald Trump and Western allies on possible military action over a suspected poison gas attack on Saturday in Syria, allegedly ordered by President Bashar al-Assad.
Retail stocks lost ground after department store operator J.Front Retailing dived 9.3 percent after its profit forecast for this fiscal year undershot market expectations. Rival Takashimaya Co tumbled 3.3 percent.
Food shares also lost ground, with Kikkoman shedding 3.6 percent and Asahi Group sliding 2.2 percent.
SoftBank Corp, Sprint Corp’s majority owner, surged 3.5 percent after sources said that Sprint has restarted talks to merge with T-Mobile US Inc.
SoftBank contributed a hefty 29 points to the Nikkei index.
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UK 10-year bond yields touch one-week low on Syria worries Wednesday 11th April, 2018 – Reuters
British 10-year government bond yields fell to a one-week low on Wednesday as investors sought safe assets after U.S. President Donald Trump warned Russia that missiles “will be coming” in Syria.
June gilt futures extended gains by more than 35 ticks after Trump published a message on Twitter telling Russia to “get ready” as incoming missiles would be “nice, and new and ‘smart!’”.
Yields on 10-year gilts dropped to their lowest since April 4 at 1.360 percent at 1123 GMT, down 5 basis points on the day.
“I think you will find our friend ‘the Donald’ is responsible,” market strategist Marc Ostwald of ADM Investor Services said. “It is stoking the risk rally we had yesterday ... it’s all geopolitics-related.”
There was little lasting market reaction earlier in the day to data showing weaker-than-expected factory and construction output, partly due to snowy weather.
Britain’s National Institute for Economic and Social Research (NIESR) said first-quarter economic growth was likely to slow as a result to 0.2 percent from 0.4 percent in the last three months of 2017.
The BoE has forecast 0.3 percent growth for the first quarter but Ostwald said he did not expect the weak data would shift expectations for a rise in interest rates next month.
“I think because the market has it factored in they will go ahead, but it could prove a bit of a mistake,” he said.
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Sterling pauses on soft data Wednesday 11th April, 2018 – Reuters
Sterling trimmed gains on Wednesday after British manufacturing output fell unexpectedly in February, its first drop in almost a year, adding to signs the economy may have slowed in the first quarter.
With bets on sterling at their most bullish in years according to positioning statistics, and forecasters predicting more gains, the lacklustre data offered some investors an opportunity to take profits into a recent rally.
“There is a lot of good news priced into sterling at these levels whether from a political or a data perspective and markets are taking a pause,” said Timothy Graf, head of macro strategy EMEA for State Street Global Markets.
The British currency has been one of the best performing this year with gains of more than 5 percent against the dollar. It hit a post Brexit- referendum vote high of $1.4346 in late January and is currently trading roughly 1 percent below those levels.
Sterling has been supported by expectations that the Bank of England will raise interest rates in May and comments by policymaker Ian McCafferty on Tuesday along with strong housing survey data on Monday offered further encouragement.
A Brexit transition deal, secured by Prime Minister Theresa May in March, has also pushed back the risk of economic disruption linked to Britain’s EU departure, also helping sentiment towards sterling.
The British currency has also chalked up impressive gains against the euro with the pair holding near a three-week low around 87 pence.
Kit Juckes, an FX strategist at Societe Generale in London, said the pound’s current valuation was cheap compared with much of the last two decades, and he expects it to strengthen to as much as 84 pence against the euro.
A trade-weighted index of the British currency rose to its highest level since the June 2016 Brexit vote.
Wednesday’s data, along with figures for overseas trade, also showed another sharp drop in construction output, against expectations of a small rebound after a severe downturn in January.
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Dollar mired at two-week lows as Syria fears grow Wednesday 11th April, 2018 – Reuters
The U.S. dollar slipped to a two-week low against a basket of currencies on Wednesday as trade war fears receded but uncertainty over possible Western military action against Syria bred risk aversion among some investors.
Equity markets fell with U.S. stock index futures ESc1 down nearly one percent and the safe-haven Japanese yen climbed to the day’s highs against the dollar.
Concerns about military action in Syria appear to be overshadowing any relief about a reduction in trade tensions between China and the United States.
“The immediate trigger for today’s risk aversion is neither rising U.S. yields or trade wars but the possibility of a reaction to the suspected chemical attack on civilians in Syria,” Societe Generale FX strategist Kit Juckes said.
The dollar index versus a basket of six major peers was down 0.1 percent at 89.516 .DXY, trading within sight of a low of 89.251 set on March 28.
Against the yen, the dollar fell about 0.3 percent to trade at 106.750 yen. JPY=EBS
Russia and the United States tangled on Tuesday at the United Nations over the use of chemical weapons in Syria as Washington and its allies considered whether to strike at Syrian President Bashar al-Assad’s forces over a suspected poison gas attack last weekend.
Pan-European air traffic control agency Eurocontrol on Tuesday warned airlines to exercise caution in the eastern Mediterranean due to the possible launch of air strikes into Syria in next 72 hours.
Investors had cautiously returned to markets after China promised on Tuesday to open the country’s economy and lower import tariffs on products such as cars.
That assurance helped allay concern about a trade war with the United States and restored some appetite for risk among investors in commodity currencies and emerging markets.
FIRM RISK APPETITE
The Swiss franc was the worst performing G10 currency on Wednesday and fell 0.3 percent against the euro to 1.1823, its lowest since 2015.
The franc is seen by some as a safe-haven currency in times of political uncertainty so its fall can imply risk appetite remaining firm.
Some investors are concerned that foreign exchange, the world’s largest market, could be dragged into a trade conflict.
China’s central bank governor on Wednesday, when asked whether China would devalue its currency to counter U.S. tariffs, said the country’s exchange rate mechanism had been working well and that it had not intervened in currency markets for a long time.
Opinions differ on whether a full-blown trade dispute has been averted.
“The risk of a trade war poses the most serious risk to continued strong global momentum. However, the likelihood that the current tit-for-tat threats escalate to such an extent seems low,” Berenberg senior economist Kallum Pickering said.
Elsewhere, investors eyed U.S. inflation data due later in the session and minutes from the Federal Reserve’s March meeting for signs of whether the Fed will favour three or four rate hikes this year.
Analysts polled by Reuters forecast that the core consumer price index (CPI) would be unchanged year-on-year in March, after a 0.2 percent rise in February.
“Inflation is expected to nudge a little higher in March but not to the point that markets will feel the Fed definitely needs to up the pace of tightening,” Scotiabank’s chief FX strategist Shaun Osborne said in a note.
The euro gained 0.2 percent at $1.2383 EUR=, its strongest level since March 28. The common currency received a boost on Tuesday after European Central Bank policymaker Ewald Nowotny said the ECB's bond buying program would be wound down by the end of this year, paving the way for the bank's first rate rise since 2011.
The rouble took another leg down on Wednesday, falling more than 1 percent against the dollar RUB=, taking its losses so far this week to nearly 12 percent as markets reeled from the latest U.S. sanctions. Turkey's lira TRY= sank to a new record low against the dollar as investors worried about the outlook on monetary policy.
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Cushing's oil market clout wanes amid U.S. export boom Wednesday 11th April, 2018 – Reuters
The volume of oil sitting in 300 steel tanks in a nine-square-mile radius in Cushing, Oklahoma has long been a key barometer for the health of U.S. crude supply and the nation’s benchmark for daily trading of billions of dollars in the commodity.
But those tanks could soon drain to levels near effectively empty, even as U.S. oil production soars past a new record of 10.4 million barrels per day.
Oil supplies have fallen before in Cushing for a variety of seasonal or market-driven reasons. But this time, there is no shortage of crude in the market. In fact, U.S. production is straining pipeline and storage capacity.
The declining volumes stored at Cushing reflects a more permanent shift, underscoring the hub’s waning influence as the primary measuring stick for the U.S. oil market and the leading barometer of future supply, demand and prices.
(For a graphic of falling oil inventories at Cushing, see: tmsnrt.rs/2GRh5GR )
Companies are now spending millions of dollars building infrastructure to facilitate trading and storage elsewhere, such as in Houston and other Gulf Coast ports.
That could pave the way for a change in the U.S. benchmark oil price, used to value tens of billions of dollars of crude and futures contracts every day. The current benchmark - called West Texas Intermediate crude, or “WTI” - has been derived from the price of physical oil delivered to Cushing for more than three decades.
Traders and major global crude buyers have advocated replacing WTI with a new benchmark futures contract that would reflect the value of crude delivered to the Gulf Coast.
The price of oil in Cushing - which bills itself as “the pipeline crossroads of the world” - is used to value crude grades produced around the United States and some oil imported from Canada, Mexico, and South America. Prices at the hub also provide the basis for an average of 1.3 million WTI futures contracts CL-TOT - worth about $82 billion at current prices - that change hands on the CME Group’s New York Mercantile Exchange every day, making it one of the world’s most actively traded commodities.
But as more pipelines are built to take oil from U.S. shale fields to Gulf refineries or for export markets, much of the crude produced in the giant Permian Basin oilfield in Texas and elsewhere no longer passes through Cushing.
Instead, producers are increasingly shipping directly to seaports such as Houston, where vessels carry the oil to dozens of countries worldwide. That reflects a major transformation in global crude flows since the United States lifted a four-decade ban on oil exports in late 2015. Some traders and buyers argue the benchmark needs to change to reflect this.
Joshua Wade, a crude oil marketer in Oklahoma, sees the benchmark delivery point moving south before long.
“That’s the direction it’s moving,” he said. “As opposed to importing, now you’re exporting through the same infrastructure ... The oil capital of the nation is in Houston.”
Inventories in Cushing fell to 28.2 million barrels in early March, lowest in more than three years.
Analysts say a level of 20 million barrels is effectively empty. That’s because tank design necessitates a minimum volume of crude be kept on hand to maintain the physical integrity of the complex and to allow for blending different crude grades to comply with pipeline specifications.
“There has been a major structural shift in crude flows within the U.S.,” said John Coleman, senior research analyst at consultancy Wood Mackenzie. “I think Cushing is rapidly losing its relevance.”
A CENTURY-OLD WAY STATION
Cushing got its distinction in the early 1920s when tanks sprung up to store oil en route from Oklahoma and Texas to major metropolitan areas and refineries in the Midwest.
In 1983, it became the delivery point for the newly-launched WTI futures contract CLc1. Because the U.S. relied on imports - and banned exports - Cushing was key for traders to gauge domestic supply trends.
BP’s former head of crude trading, Donald Porteous, earned the nickname “the King of Cushing” because of his deep understanding of supply logistics in the Oklahoma town - a strategy that often earned him more money than BP Chief Executive Bob Dudley.
Porteous, now retired, declined to comment for this story.
Now, new pipeline projects head straight from west Texas to the Gulf of Mexico, a route well south of Cushing. Lately, Permian Basin prices have declined because pipelines can’t be built fast enough to get crude to the Gulf, even as pipeline firms have added about 600,000 bpd in capacity since late last year, according to data compiled by Reuters.
“We’re trying to make sure we’re ahead of the pinch points for producers to bring product to refiners or to export,” Greg Armstrong, chief executive of Plains All American, said at a recent industry conference.
Projects in the works could boost outgoing pipeline capacity from the Permian from 2.7 million bpd in March to more than 4.5 million bpd by the end of 2019, according to energy industry information provider Genscape.
Meanwhile, the Dakota Access pipeline started shipping oil last year, running out of North Dakota’s Bakken shale region to the Gulf - bypassing Cushing. And Marathon Petroleum is considering reversing its Capline crude line to bring barrels from Illinois to the Gulf.
A BENCHMARK SHIFT?
For now, traders watch the price differential between WTI and London- based Brent crude to determine where to ferry shipments globally.
But traders say the price of physical trades in Houston is growing more important as a barometer for shippers. Earlier this year, even as the WTI crude discount to Brent WTCLc1-LCOc1 narrowed, Houston’s discount to Brent remained steady at about $1.60 a barrel, analysts said, helping buoy export demand.
As pipeline capacity to the Gulf has increased, and storage has expanded, demand to park barrels in Cushing has waned, said Carlin Conner, chief executive at SemGroup Corp (SEMG.N), which operates about 7.6 million barrels of crude oil storage in Cushing.
A spokesman for Magellan Midstream Partners, which owns about 12 million barrels of Cushing storage, said it will remain important because of its connections to the Gulf and Midwest.
Cushing is also connected via pipeline to the Gulf, 500 miles to the south, and can offer cheaper storage than what’s available on the coast, said SemGroup’s Conner.
“I believe Cushing’s next chapter,” he said, “is that it’s going to become an offsite Gulf Coast storage centre.”
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EU plans more powers for consumers to sue companies Wednesday 11th April, 2018 – Reuters
The European Union plans more powers for consumers to sue firms such as Volkswagen (VOWG_p.DE) after the Dieselgate scandal showed the limits of consumer protection authorities to curb corporate cheating.
Wednesday’s proposal by the EU executive would allow some groups to launch collective action and consumer protection authorities higher sanctions for rule breakers.
Amid frustration in Brussels with rule-flouting by the powerful tech and auto industries, fines will increase to up to four percent of annual turnover for companies deemed to have trampled on the rights of a large group of consumers.
“Consumer authorities will finally get teeth to punish the cheaters,” Europe’s Justice Commissioner Vera Jourova said. “It cannot be cheap to cheat.”
Along with a separate plan to improve transparency over how science shapes policy, officials couched the moves as the EU becoming more responsive to citizens’ worries such as the potential cancer risk of products such as glyphosate, used in Monsanto’s Roundup.
EU regulators say that, after VW was caught using software to cheat emissions test by U.S. authorities, they lacked the tools to ensure EU car owners received the same kind of compensation offered to U.S. clients.
Jourova said only two national consumer protection authorities imposed fines on VW, amounting to 5.5 million euros. “This is nothing in comparison to what Volkswagen paid in the United States,” she said.
The European Consumer Organisation (BEUC) said the move was long overdue but cautioned that judges and national authorities would still hold sway over what may be a laboriously lengthy process.
Business groups said the plan, which still need approval from national governments and the European Parliament, could lead to a proliferation of lawsuits, saying EU citizens already enjoy some of the world’s strongest consumer protection rules.
Defending the draft rules, Jourova said they would not allow U.S.-style, profit-seeking class action suits. Law firms would not be allowed to sue firms - only citizens’ rights groups - a legal recourse only now available in a handful of member states.
‘NEW DEAL FOR CONSUMERS’
In a bid to deliver Commission President Jean-Claude Juncker’s promise of a “new deal for consumers”, the plan also tackles concerns online rights and food brands being sold with inferior ingredients in different parts of Europe.
Adding pressure on firms like Facebook (FB.O) and Google’s Gmail (GOOGL.O), it would extend EU consumer law to “free” digital services for which consumers provide personal data, such as cloud storage services, social media and email accounts.
Consumers would also get more information on contracts and the right to cancel them within 14 days.
In a separate plan, the Commission wants to make more of the evidence used to decide policy on food safety publicly available and allow the European Food Safety Authority (EFSA) to conduct its own studies.
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Clico Fund ends day at $20.16 Wednesday 11th April, 2018 – Trinidad and Tobago Guardian
Overall market activity resulted from trading in 16 securities of which five advanced, four declined and seven traded firm.
Trading activity on the First Tier Market registered a volume of 185,819 shares crossing the floor of the Exchange valued at $1,476,611.54.
JMMB Group Limited was the volume leader with 60,900 shares changing hands for a value of $113,274, followed by NCB Financial Group Limited with a volume of 50,000 shares being traded for $307,500.
Trinidad Cement Limited contributed 38,819 shares with a value of $100,929.40, while One Caribbean Media Limited added 11,801 shares valued at $146,798.44.
Republic Financial Holdings Limited registered the day’s largest gain, increasing $0.07 to end the day at $101.65.
Conversely, T&T NGL Limited registered the day’s largest decline, falling $0.15 to close at $27.48.
Clico Investment Fund was the only active security on the Mutual Fund Market, posting a volume of 9,665 shares valued at $194,846.40. It advanced by $0.01 to end at $20.16.
In Tuesday’s trading session the following reflect the movement of the TTSE Indices:
• The Composite Index declined by 1.76 points (0.14 per cent) to close at 1,257.24.
• The All T&T Index advanced by 0.03 points (0.00 per cent) to close at 1,699.65.
• The Cross Listed Index declined by 0.49 points (0.44 per cent) to close at 109.88.
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BVITB undertakes territory-wide greening initiative Tuesday 10th April, 2018 – BVI News Online
Underscoring the importance of the environment to the territory’s lifeblood, the BVI Tourist Board (BVITB) is gearing up to spearhead a major greening initiative.
The ‘Seeds of Love’ initiative aims to replant the territory’s indigenous trees and vegetation destroyed during last September’s hurricanes.
The yearlong programme will officially kick off with an Arbor Day event in the United States on April 27.
Minister of Natural Resources, Dr Kedrick Pickering explained the reason behind the undertaking.
“Tourism is the mainstay of our economy, there is no tourism without the environment. Where the environment goes, so goes the economy,” he said.
“It is extremely important for us to invest in, protect, and prosper our natural heritage,” he continued, adding that reforestation is a necessary component of building resilience.
First coconut shipment arrived
Director of the Tourist Board Sharon Flax-Brutus said the BVITB purchased 3,000 coconut seedlings and saplings to jump-start the undertaking.
She noted further that distribution of the plants has started and each of the four main islands will benefit.
In addition to the coconut palms to be planted on the coastline to protect against erosion, mangrove seedlings and white cedars will be planted in wetlands. White cedars are known to serve as windbreakers.
To ensure the sustainability and longevity of the plants, the BVITB has engaged the services of Jahnai Caul, a young BVIslander with a keen interest in agricultural science, to assist with distribution and planting of the seedlings. Mr Caul received training during an internship in Jamaica last summer with UWI Mona Campus and from the Rural Agricultural Development Authority, the Tourist Board said.
It is also the hope that the initiative will inspire persons to advocate for the protection of the environment as the BVI moves to develop ecotourism in the territory.
“I am excited that this project is taking shape,” Flax-Brutus said.
Genesis of Seeds of Love
According to a BVITB media release, the Seeds of Love initiative has been gaining momentum for some time now.
The release said following the hurricanes, Gabi Romberg of the BVITB’s German agency started a fundraising initiative in the German markets to purchase coconut palms to replant on the territory’s beaches.
Simultaneously, the Government of St Vincent and the Grenadines made a donation of 3,000 fruit trees to the territory.
Dr Pickering first announced plans to import trees to reforest local beaches back in December.
Seeds of Love is a collaboration among the BVITB, the National Parks Trust, Department of Agriculture, and the Town & Country Planning Department.
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Dominica’s hurricane recovery efforts boosted by voluntourism program Tuesday 10th April, 2018 – Dominica News Online
Electricity is returning, houses have been rebuilt and major attractions like Trafalgar Falls and the Emerald Pool have been officially declared open. Now, the next step in Dominica’s recovery efforts post-Hurricane Maria involves travellers.
“Dominica isn’t open, it’s opening. We’re not rebuilt, we are rebuilding,” said CEO of the Discover Dominica Authority, Colin Piper. “If meaningful travel is something that resonates with you, consider coming to Dominica.” Aside from financial and emotional support from other Caribbean nations and Dominicans living abroad, the country has benefited from its “voluntourism” packages.
The program invites travellers to assist in the clean-up of sites such as the Indian River, the Waitukubuli National Trail and various dive sites. Packages are being offered through the Tamarind Tree Hotel, Fort Young Hotel, Secret Bay, Cobra Tours, Cool Breeze Tours and Cabrits Dive. “Happy to say we have gotten a lot of interest from travellers about these,” Piper said. “It gives you hope to understand that it’s not only left to you, but other people are willing to come and be a part. They are willing to take their time and (assist) physically.”
Heading into the seventh month since the category 5 hurricane took the lives and businesses of native Dominicans, the island is on the right track. One of the biggest measuring sticks came on 28 December 2017 when the country welcomed its first cruise ship – the Sea Cloud II. Though a smaller vessel (capacity around 200) it was the first signal to the world of Dominica’s mission. Before that day, Piper said the cruise lines had essentially “written off” Dominica for the 2017-18 and 2018-19 seasons. “As a result of welcoming MV Mein Schiff 3 (a month after Sea Cloud II) they (cruise lines) reconsidered and I’m happy to say that most, if not all have scheduled us for 2018-19 season.” Dominica has since received 16 more cruise calls, with Carnival Cruises expected to make five visits this year.
When it comes to the island itself, 19 of the 23 island sites and attractions are ready for travellers, according to a Dominica tourism board press release. 41% of the total 962 rooms available before Hurricane Maria can now be booked. Places like Fort Young Hotel, Secret Bay, Calibishie Cove and Citrus Creek are expected to reopen later this year. “It’s a great place to take a slow walk in nature and kind of transform and rejuvenate yourself,” Piper said. Popular diving sites which attracted enthusiasts from around the world before the hurricane are once again operational with tours available on the north, south and west coasts of the island.
Getting to Dominica isn’t an issue, there are regular flights connecting to regional and international markets. The Douglas Charles and Canefield airports have been open since October 2017. Night landing at Douglas Charles is available until 8pm for public flights and until 10pm by special arrangement. “Come if meaningful travel appeals to you. Come with the understanding the state of the island,” Piper said. “We are rebuilding and if you feel like you need to wait until next year, do it. But come. In doing so we will both be the richer for it because the experience in Dominica will change you.”
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One cent coin no more Wednesday 11th April, 2018 – Trinidad Express Newspapers
Over the next few months, you can expect to see less one cent pieces as you go about your financial transactions.
According to the Central Bank of Trinidad and Tobago (CBTT), as of July 3, 2018, no more one cent coins will be issued.
In a release, the bank said, the reason for the decision to stop making the coin was to save money for the country since a single one cent coin costs 21 cents to mint, and each year the bank mints on average 45 million one cent pieces.
Apart from the elimination of one cent pieces from our monetary system, 5, 10 and 25 cent coins will have a new look.
The bank said the new coins will look and feel the same as the current coins, but how they are made would be different. The 5, 10 and 25 cent coins will have a new metallic composition. They will have a 90 per cent steel core, and less than 10 per cent nickel and copper overlay.
The bank said the new metallic composition is more cost effective, and with the elimination of the one cent coin, it expects to save $15 million in minting costs.
The bank said a coin redemption drive was put into effect since last year when the bank announced that one cent pieces would no longer be a part of our monetary system.
CBTT's manager of banking operations Sharon Villafana said, 'We have seen a tremendous response by the public since the drive was launched last year. Between now and July 3, the public is free to deposit their coins at any of the commercial banks.'
As the one cent coin is slowly being phased out, the bank has implemented cash rounding guidelines to assist the public with their cash transactions.
The bank said if your bill ends in zero or five, it will not be rounded. However, if your total bill after taxes ends with a one, two, six or seven then it will be rounded down to the nearest five cent (0.00 or 0.05) for example:
$25.21 and $25.22 to $25.20 or $25.26 and $25.27 to $25.25.
If after taxes, your bill ends with a three, four, eight or nine then it will be rounded up to the nearest five cents (0.05 or 0.10) for example: $25.23 and $25.24 to $25.25 or $25.28 and $25.29 to $25.30.
The cash rounding guidelines will come into effect on July 3. Villafana said after July 3, the coins would no longer be legal tender, and the only place they can be redeemed is at the counters of CBTT.
Public information sessions will be held from June 21 to 30.
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EOG Resources oil, gas output up...company drilled 7 new wells in 2017 Wednesday 11th April, 2018 – Trinidad Express Newspapers
Days before a delegation from Houston-based EOG Resources Inc. met with Prime Minister Dr Keith Rowley on March 7 in Port of Spain, the executives had told New York Stock Exchange (NYSE) investors (February 28) the company outperformed in Trinidad and Tobago, with average daily oil and gas production higher than anticipated.
EOG Resources executive vice president exploration & production David Trice told NYSE investors on a conference call: "We had an eventful year in Trinidad division during 2017. We brought on seven net natural gas wells across our Sercan, Banyan, and Osprey areas. The outperformance of these new wells allowed our Trinidad division to produce 15 million cubic feet of gas per day, more than initially forecasted in 2017. We also finalized a new gas contract with the National Gas Company of Trinidad and Tobago beginning in 2019, that supports and extends our 25-year partnership." Trice said: "Looking ahead, 2018 is going to be an exploration year in Trinidad. Our exploration efforts are focused on leveraging new seismic data to identify prospects to drill in 2019 and beyond in order to maintain natural gas production and supply the domestic Trinidad gas market for many years to come.'
According to Energy Ministry data, EOG Resources gas production increased by 10 million standard cubic feet of gas per day (mmscf/d) to 521 mmscfd in 2017 from 511 mmscf/d in 2016. For the year so far, according to latest available Energy Ministry data up to January, EOG grew its gas output by another 5 mmscf/d to close the month at 526 mmscf/d.
The number of EOG wells completed increased from one in 2016 to eight in 2017, consistent with what EOG told shareholders.
According to Energy Ministry data, EOG Resources crude oil production in T& T also went up 23 per cent year-on-year in 2017 to 1,415 barrels of oil per day (bopd) from 1,151 bopd in 2016. Oil production went up further to 1,667 bopd in January.
Thanks mostly to a hike in BP gas production from the high 1800s mmscf/d to the low 2200s mmscf/d, according to Energy Ministry January 2018 data, the country's overall gas production is at its highest since 2015, at 3.9 billion standard cubic feet of gas per day (bcf/d). This is however, still below the approximately 4.3 bcf/d the country needs to fully satisfy Point Lisas industrial estate and Atlantic's liquefied natural gas (LNG) demand.
Meanwhile the country's oil production, according to Energy Ministry data, at 68,943 bopd in January, is at its lowest since the early 1950s.
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US$15M may not be enough – to cover legal fees in Guyana-Venezuela case, says Greenidge Wednesday 11th April, 2018 – Guyana Chronicle
No part of the US$15M set aside by the Guyana government to pay the legal team representing it at the International Court of Justice (ICJ), in the Guyana-Venezuela border controversy has been used.
Foreign Affairs Minister Carl Greenidge during a media briefing at his office on Tuesday, said, “The decision of Cabinet was that US$15M of that amount was for the payment of the lawyers.”
The government received a US$18M signing bonus from U.S. oil giant ExxonMobil in 2016 and that money has since been placed in an Escrow account at the Bank of Guyana. The US$15M of that amount has been allocated to pay for legal services related to the ICJ case.
Late last month, Minister of State Joseph Harmon told reporters at a post- Cabinet press briefing that the signing bonus received from ExxonMobil will be placed in the Consolidated Fund at an appropriate time.
He said the signing bonus represents money that belongs to Guyana and will not be used to pay anyone, unless deposited into the Consolidated Fund.
“That bonus, wherever it is, will be placed into the Consolidated Fund and it is from that fund that any team whatsoever would be paid; whether they work before or after, it is from the Consolidated Fund these funds will come from,” said Harmon.
Guyana two weeks ago submitted its application to the ICJ requesting the court to confirm the legal validity and binding effect of the 1899 Arbitral Award regarding the boundary between Guyana and Venezuela.
However, Greenidge told reporters that while the Cabinet has agreed for the US$15M to be utilised for the payment of legal and associated fees, that sum may very well be insufficient. That however, is dependent on the work to be done by the legal team.
“So, the US$15M may not be adequate; the US$15 may be more than is needed for the moment that is, what it is. The Cabinet’s decision was that, as the need arises each year, the money will be transferred to the Consolidated Fund from the Special Account in which it is held to meet the estimated expenditure on the lawyers.”
Greenidge explained that though Guyana has submitted its application to the ICJ, citizens need to understand that the entire process could take as much as six years. As such, to quantify the amount government is likely to spend on the process would be mere speculation at this stage.
“As I said to you, the process could take anywhere between two to six years and in those circumstances, it is not possible for me to say to you, this is what it will cost; I can’t tell you that. I don’t know. The lawyers themselves don’t know, because they don’t know what they will be called upon by the court to do,” the foreign affairs minister stated.
Given the aforementioned, when necessary, Finance Minister Winston Jordan will approach the National Assembly requesting supplementary funds for the payment of those who provide services. Meanwhile, Greenidge cautioned that while an application has been made to the ICJ on the matter, the process can be a long one.
“It is a long process, difficult process… this is the first time that a referral to the court has gone from the secretary-general in this way,” he said, while noting that the court will hold public hearings and so the public would be privy to those.
The minister made it clear that Guyana has to be very careful in how it treats with the matter as if there is a breach of protocol, it could be found in contempt of court; something he said Guyana cannot afford.
He explained that the ICJ may refrain from hearing the case put before it by Guyana if it is found that it has no jurisdiction to hear the matter or that there is an established mechanism by which the matter before it has been addressed. There are however, other circumstances that could result in the court refusing to hear the matter.
TRICKY
“We as a people are at a point that is a little tricky. Yes, the matter is before the court. We have to fight the matter before the court – what comes out of the court will depend upon what we do and what Venezuela does,” said Greenidge.
The minister noted that while Venezuela’s position on the matter is unclear, the ICJ has already invited the country to respond to Guyana’s application. Once the ICJ goes ahead with hearing the case, Guyana will be called to submit further arguments in support of its contention. Venezuela will be given an opportunity to respond.
Guyana in its application to the ICJ dated March 29, 2018 has requested the court among other things to confirm the legal validity and binding effect of the award regarding the boundary between British Guiana and the United States of Venezuela of October 3, 1899.
Additionally, Guyana called on the court to declare that Guyana enjoys full sovereignty over the territory between the Essequibo River and the boundary established by the 1899 Award and 1905 Agreement; that Venezuela should immediately withdraw from and cease its occupation of the eastern half of Ankoko Island, and every other territory recognised as Guyana’s and to have Venezuela refrain from threatening or using force against any person, company licensed by Guyana to engage in economic or commercial activities in Guyana’s territory.
Guyana also wants to declare Venezuela as responsible for violations of Guyana’s sovereignty and sovereign rights and for all injuries suffered by Guyana as a consequence.
“Pursuant to the Treaty of Arbitration between Great Britain and the United States of Venezuela, signed February 2, 1897 at Washington, the 1899 Award was ‘a full, perfect, and final settlement’ of all questions relating to determining the boundary line between the colony of British Guiana and Venezuela,” Guyana’s application states.
Further, Guyana contends that between November 1900 and June 1904, an Anglo-Venezuelan Boundary Commission identified, demarcated and permanently fixed the boundary established by the 1899 Award. On January 10, 1905, the commissioners signed a joint declaration and accompanying maps in accordance with the 1899 Award.
“At all times following the 1899 Award and 1905 Agreement, until the independence of Guyana in 1966, the United Kingdom of Great Britain and Northern Ireland accepted that the Award and the Agreement finally settled all territorial claims and permanently fixed the land boundary between British Guiana and Venezuela.”
Guyana argues that at all times since its independence in May 1966, it has accepted the 1899 Award and 1905 Agreement as valid and legally binding on both Guyana as successor to the United Kingdom and Venezuela, and that the boundary has always been and remains that which was fixed by the 1899 Award and 1905 Agreement.
“For its part, between 1899 and 1962, Venezuela consistently and repeatedly expressed its unconditional acceptance of the legal validity and binding force of the 1899 Award and 1905 Agreement and respected the boundary with British Guiana that was fixed thereby,” Guyana’s application states.
CHANGE OF POSITION
However, Venezuela changed its position in 1962, as the United Kingdom was making final preparations for the independence of British Guiana.
“Sixty-three years after the 1899 Award was issued, Venezuela formally asserted for the first time that the Award was ‘arbitrary’ and therefore ‘null and void’,” Guyana stated while noting that Venezuela threatened not to recognise the new state, or its boundaries unless the United Kingdom agreed to set aside the 1899 Award and 1905 Agreement and cede to it (Venezuela) all of the territory west of the Essequibo River which was awarded to British Guiana in 1899.
Negotiations between the UK and Venezuela led to an agreement to resolve the controversy between the two countries. That agreement was signed at Geneva on February 17, 1966 and is referred to as the Geneva Agreement. It provides for recourse to a series of dispute-settlement mechanisms to finally resolve the controversy. Guyana acceded to the Geneva Agreement after gaining independence on May 26, 1966.
Guyana and Venezuela had for more than 50 years after signing the Geneva Agreement failed to resolve the controversy. “Throughout this period, until the present day, Guyana’s sovereignty, security, and development have been jeopardised by Venezuela’s refusal to recognise the long-settled boundary, and its claim to more than two-thirds of Guyana’s land territory, which is home to more than one-quarter of Guyana’s population.
Guyana maintains that Venezuela has never produced evidence to justify its “belated repudiation of the 1899 Award”. By virtue of the Geneva Agreement, which authorises the UN Secretary-General to decide which means of dispute settlement must be employed to end the controversy, Secretary-General Antonio Guterres determined that the Good Offices Process failed to achieve a peaceful settlement of the controversy. Between 1990 and January 2018, Guyana has been involved in several processes, all of which failed.
Nearly 52 years after the signing of the Geneva Agreement, the SG decided that the controversy shall be settled by the ICJ.
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Euro Blacklisting to End This Week? Tuesday 10th April, 2018 – Tribune 242
The Bahamas could be removed from the European Union’s (EU) ‘blacklist’ as early as this Thursday, with the Government hoping to at least get “an indication” of delisting progress.
K P Turnquest, Deputy Prime Minister, told Tribune Business that the Government was yesterday “following up” with EU officials on the 28- nation’s ‘Code of Conduct Group’ to determine whether the Bahamas removal will happen on April 12.
He revealed that the Government at least hoped to “satisfy” the demands of the EU’s technocrats at Thursday’s meeting, an achievement that would mean the Bahamas’ delisting was a relative “formality” when the bloc’s finance ministers meet on May 25.
“That is our hope,” Mr Turnquest said of the April 12 meeting. “They [EU officials] had indicated when we were over there they would have a meeting on the Friday following our meeting, and they were hoping to put our issue on the agenda.
“We did not make it, and the next available opportunity is April 12. We’re following up on that and hoping to get some success there. If not, we’ll be moving on to the full EU council agenda on May 25.
“We’re hoping we’ll be dealt with on April 12. If not in full, at least the technical committee are satisfied, and we move on to the full ECOFIN (finance ministers) on May 25, which will then hopefully be a formality in terms of a review.”
Such an early delisting, if the EU does act in the Bahamas’ favour on April 12, would provide a much-needed boost to both the Minnis administration and the Bahamian financial services industry, both of which are badly in need of positive developments.
The EU formally ‘blacklisted’ the Bahamas on March 13, having ‘leaked’ its intentions the previous week, for allegedly being non-cooperative in the fight against large-scale tax avoidance by multinational companies.
The 28-nation bloc complained that it did not receive the ‘high level political commitment’ it had been seeking from the Bahamas to address its concerns, which largely related to ‘ring fencing’ and the absence of ‘economic substance’ requirements for corporate vehicles operating in this jurisdiction.
Mr Turnquest subsequently said letters he had personally signed committing the Bahamas to compliance with the EU’s anti-tax avoidance drive were “obviously not taken into account” in the ‘blacklisting’ decision.
He suggested that miscommunication, and related misunderstandings, had contributed to the Bahamas’ ‘blacklisting’, not least that its ‘commitment letter’ to the EU was signed by a senior civil servant in the shape of acting financial secretary, Marlon Johnson, as opposed to a Cabinet minister.
“We are confident,” Mr Turnquest said yesterday of the Bahamas’ delisting prospects. “As I have indicated in earlier releases, the [EU] technical committee had already indicted we have done everything we need to do, so we are confident we ought to be off the list.
“We’ll see what happens. A lot of factors go into these decisions, technical and political, but we’ll see. I don’t know if we can come off without a full [finance ministers’] meeting in May, but we’re certainly hoping for an indication we’ll be off.”
The Bahamas is seeking to address the EU’s concerns over economic substance/physical presence and ‘ring fencing’, the latter of which involves ‘preferential tax regimes’ for non-resident entities and foreigners, through the Multinational Entities Financial Reporting Bill.
The Bill raised immediate alarm by seemingly enabling the Minister of Finance to eliminate ‘ring fencing’ through the implementation of corporate taxation, on a range of key financial services products, at ‘a stroke of the pen’.
Mr Turnquest, though, subsequently described such concerns as ‘unfounded, and yesterday pledged that the Government would give financial services and private sector feedback full consideration.
“We are listening to industry and we will respond, certainly in co- ordination with the advice we receive from them, in conjunction with the advice we receive from our technical team,” he told Tribune Business.
Michael Paton, the former Bahamas Financial Services Board (BFSB) chairman, is among those arguing that the Multinational Entities Financial Reporting Bill is too complex because it attempts to address the EU’s concerns and the Organisation for Economic Co-Operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) initiative in one piece of legislation.
He is calling for the EU’s ‘ring fencing’ fears, and the BEPS country-by- country financial reporting requirements, to be dealt with in two separate Bills.
Meanwhile, acknowledging that tax reform was “a hot button topic”, and corporate taxation in particular a “live conversation”, Mr Turnquest said the Government “welcomes” such debate.
“At the end of the day we want to have the best, most efficient and progressive tax system for our people, and ensure the most vulnerable are not unduly burdened,” he told Tribune Business.
“But, by the same token, it must allow the Government to earn the revenues to provide essential public services and correct the deficits we have had for many years.”
Mr Turnquest added that the reduction/elimination of import tariffs resulting from the Bahamas becoming a full World Trade Organisation (WTO) member would require an “adjustment of the tax system to compensate for any losses” of revenue.
“We stand alert and prepared to do what has to be done to protect the Government’s earnings,” he said.
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