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▪ Colonial Fire and General Insurance Company Limited’s initial rating assigned at CariA

▪ Home Mortgage Bank’s rating reaffirmed at CariA

▪ NCB Financial Group Limited’s initial corporate credit rating assigned at CariA

▪ National Commercial Bank Jamaica Limited’s rating upgraded to CariBBB+

▪ NCB (Cayman) Limited’s initial corporate credit rating assigned at CariA

▪ The Government of the Commonwealth of Dominica placed on Rating Watch – Developing

▪ Dominica AID Bank’s rating downgraded by 1-notch and placed on Rating Watch – Negative

▪ The Government of the British Virgin Islands placed on Rating Watch – Developing

▪ The Government of Anguilla placed on Rating Watch – Developing

▪ NCB Capital Markets Limited’s rating upgraded to CariBBB

▪ Trinidad and Tobago Mortgage Finance Limited’s rating reaffirmed at CariAA-

▪ The National Gas Company of Trinidad and Tobago Limited’s rating reaffirmed at CariAA+

▪ The Government of the Republic of Trinidad and Tobago’s rating reaffirmed at CariAA+

▪ The Government of Saint Lucia’s ratings for its proposed bond issues assigned at CariBBB

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Latest Rating Actions by CariCRIS

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Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings

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REGIONAL

Trinidad and Tobago

Gas coming to T&T soon

Venezuelan state oil company Petróleos de Venezuela (PDVSA) plans to

export up to two billion cubic feet of gas to neighboring countries in the

next 10 years through gas pipelines, according to PDVSA Gas Vice

President, César Triana on Wednesday.

NHSL adds aircraft to fleet

The National Helicopter Services Limited (NHSL) has added two new

aircrafts to its fleet as it attempts to maintain reliable service inspite of the

current economic contraction.

Witco drops by $8.01

Overall Market activity resulted from trading in 8 securities of which 1

advanced, 2 declined and 5 traded firm.

Jamaica

JPS to pump US$21m in energy storage facility

The Jamaica Public Service Company (JPS) has committed US$21 million

($J2.6 billion) to the development of a 24.5-megawatt facility to store

energy as a safeguard against power outages.

FosRich launches IPO to raise $200m

FosRich Company Ltd, a local distributor of lighting, electrical and solar

energy products, has released their prospectus for their impending IPO,

set to be open for subscription on December 4 and which officially closes

on December 11.

Mineral school in the works — Henry

Minister of Transport and Mining, Mike Henry yesterday disclosed plans for

the development of a mineral school similar to a model developed by the

Caribbean Maritime University.

Barbados

Off target

The chances that the Freundel Stuart administration will achieve its deficit

target this year following Minister of Finance Chris Sinckler’s presentation of

a $542 million austerity package back in May, are slim to none, according

to the International Monetary Fund (IMF), which today warned of the

need for “urgent” corrective action.

All not yet on board with Sustainable Recovery Plan

In an attempt to avoid a possible roadblock, Government is making a

last-ditch effort to get the full support of all the Social Partners for its

Barbados Sustainable Recovery Plan (BSRP) 2017, which is due to be laid

in Parliament by next month.

Wages Board soon to be established

Government is in the process of establishing a Wages Board to look at

regulating wages for categories of workers, especially those involved in

security operations, and daycare and elderly care facilities.

IMF: Cut spending

AN INTERNATIONAL MONETARY FUND (IMF) team has left Barbados

convinced that Government is not doing enough to fix its fiscal problems.

Tax amnesty drawing to a close

Taxpayers have less than a week to participate in the Tax Amnesty

programme which draws to a close on November 30, 2017. The amnesty

was announced in May during Minister of Finance Chris Sinckler’s

Budgetary Proposal as an additional period for taxpayers to benefit from

the waiver of penalties and interest on taxes owed to the Authority.

Guyana

Chinese Govt. gives $48M grant to Education Ministry

The Cyril Potter College of Education [CPCE] is poised to enhance its

preparation of teachers in the subject area of science.

The Bahamas

New Job Bill Will Ensure ‘Bahamians Are Priority’

The government’s new Commercial Enterprises Bill will ensure “that

Bahamians are the priority,” despite the fact it will “liberalise the granting

of work permits” to foreign companies.

The Bahamas Cont’d

Atlantis Near Sell-Out For Holiday Weekend

ATLANTIS’S occupancy for the Thanksgiving weekend is ‘over 90 percent’,

according to a senior executive at the resort with the annual ‘Battle for

Atlantis’ tournament a ‘significant contributor’ to its boost in business for

the period.

British Virgin Islands

Airport Project Back On The Radar

The National Democratic Party (NDP) government's controversial $153.5M

TB Lettsome International Airport expansion project is back on the

administration's radar.

Dominica

Venezuela writes off Dominica’s US$100-million PetroCaribe debt

Venezuela has written off Dominica’s outstanding US$100-million

PetroCaribe debt in a gesture of solidarity between the two countries in

the wake of Hurricane Maria.

Regional

Billions pledged . . . Hurricane-ravaged Caribbean countries assured of

new financial support

Just over US$2 billion in pledges, including $2 million from Venezuela and a

quarter billion from Haiti, were made as the Caribbean Community

(CARICOM) and the United Nations jointly hosted a high-level pledging

conference on Tuesday.

ECLAC Advocates for Debt Relief for Hurricane-Ravaged Caribbean

Countries

The United Nations’ Economic Commission for Latin America and the

Caribbean (ECLAC) has presented a debt for climate adaptation swaps

proposal for Caribbean countries ravaged by hurricanes during this year’s

Atlantic hurricane season.

INTERNATIONAL

United States

U.S. oil prices ease from two-year highs on oversupply worries

U.S. oil prices eased back from a two-year high on Thursday, as concerns

about oversupply outweighed the impact of a pipeline shutdown in the

United States.

United Kingdom

Sterling steadies as traders brush off growth forecast cuts

Sterling benefited from dollar weakness on Thursday, hitting a six-week

high against the U.S. currency but slipping against a stronger euro, with

traders largely brushing off downward growth forecast revisions and

refocusing on Brexit negotiations.

Europe

Euro zone shares get PMI boost, Centrica sinks

European shares dipped on Thursday, tracking more timid Wall Street

trading as volumes thinned out for the Thanksgiving holiday, while euro

zone stocks drove higher, boosted by strong business growth figures for

the bloc.

China

China stocks suffer mauling, Fed leaves dollar in a daze

The dollar was on the defensive Thursday, a day after its worst drubbing in

five months, as the biggest slump in Chinese stocks in almost two years

took the shine off another record high in a global equities bull run.

China's trade with North Korea sinks in October after U.N. sanctions

China’s trade with North Korea fell to $334.9 million in October, its lowest

since February as imports sank to their weakest in years, data showed on

Thursday, the latest sign that tough new sanctions cut business with its

isolated neighbor.

Wages Board soon to be established Wednesday 22nd November, 2017 – Nation News

Government is in the process of establishing a Wages Board to look at

regulating wages for categories of workers, especially those involved in

security operations, and daycare and elderly care facilities.

Acting Chief Labour Officer Victor Felix expressed optimism that the entity

could be established before year-end, while speaking to reporters after

delivering remarks at his department’s Labour Management Relations

seminar, which was held today at the Warrens Office Complex.

Felix pointed out that the Board’s functions would involve setting minimum

wages and standards for employment, such as hours of work and

determining the payment of overtime for workers. Additionally, the Board

would be tri-partite in structure, and will comprise representatives of

government, employers, and employees.

The Chief Labour Officer noted that the Minimum Wages Act, which was

recently passed in Parliament, was not an Act that sets minimum wages,

but “what it does is set out the mechanism through which minimum

wages will be set”.

“The legislation is now in place; it is now for the appropriate body, which is

the Wages Board to be appointed, and they will in turn look at various

sectors [relating to how] wages and standards for employment should be

set,” Felix pointed out.

He contended that although the legislation had been passed, it was not

fully operational, and when the Board came on stream, the impact of its

work would be known.

The Chief Labour Officer said once established, the Board would stick to

the national inclination to move for sectoral minimum wages, in light of

some areas which are in need of a serious examination.

Felix singled out security personnel and the unacceptable standards

under which they operate. He also disclosed that the Labour Department

had received reports about employees working in day care, elderly and

children care facilities.

He added that the Board would investigate the conditions in other sectors

as required.

<< Back to news headlines >>

IMF: Cut spending Thursday 23rd November, 2017 – Nation News

AN INTERNATIONAL MONETARY FUND (IMF) team has left Barbados

convinced that Government is not doing enough to fix its fiscal problems.

Judith Gold, head of the IMF delegation that conducted the annual

Article IV consultation between November 7 and Tuesday, is therefore

urging the Freundel Stuart administration to cut its spending further. Failing

this, the island’s debt problems would continue, she warned.

The IMF is also offering its help to Government. It “stands ready to assist the

Government of Barbados, including through continued policy dialogue

and technical assistance”, Gold said.

During its visit to the island, the team from Washington met with Minister of

Finance Chris Sinckler, Acting Central Bank Governor Cleviston Haynes,

Minister of Industry Donville Inniss, Leader of the Opposition Mia Mottley,

senior Government officials, and representatives of the private sector,

labour organisations and academia.

In a statement released after departing the island, Gold said while

continued strong growth in long-stay tourism supported Barbados’

economic growth, fiscal consolidation was contributing to a slowdown.

The economist said “substantial further fiscal effort is needed to

decisively place the debt on a downward trajectory”.

“Given the urgency in addressing funding, balance of payment risks, the

high debt and the limited policy options, the fiscal adjustment must

continue, with a focus on accelerating [state-owned enterprises] reforms

to facilitate a significant and durable reduction in transfers,” she added.

Gold said Government’s adjustment strategy should focus on addressing

the high transfers, containing other current expenditures and

maintaining a strong revenue effort.

“Reforms of state-owned enterprises should include improved

management, cost recovery, reduced services, mergers, closures and

privatisation. Containing other current expenditures, including the wage

bill and Government pensions, is also critical,” she advised.

“Tax policy should be reviewed with a view to broadening the tax base

and improving its progressivity, while efforts to strengthen tax

administration must continue. Further, arrears to the private sector should

be cleared, and remaining current should be a Government priority.”

The IMF also wants Government to focus on structural reforms “to support

growth and improve the business climate for domestic and foreign

investment are also urgent.

“These reforms would aim to improve business processes, such as

significantly reducing clearance times for immigration and customs,

accelerating approval of building permits and streamlining legal

procedures,” Gold said.

The IMF representative also suggested that Government’s “ambitious”

May 30 Budget was likely to miss its targets due to National Social

Responsibility Levy exemptions, lower than expected non-oil imports,

shortfalls in some other revenues, and high transfers.

<< Back to news headlines >>

Tax amnesty drawing to a close Wednesday 22nd November, 2017 – Nation News

Taxpayers have less than a week to participate in the Tax Amnesty

programme which draws to a close on November 30, 2017. The amnesty

was announced in May during Minister of Finance Chris Sinckler’s

Budgetary Proposal as an additional period for taxpayers to benefit from

the waiver of penalties and interest on taxes owed to the Authority.

Manager of communications and public relations at the Authority,

Carolyn Williams-Gayle, indicated that there were currently no plans to

extend the six-month amnesty beyond the November deadline.

“Taxpayers with delinquent tax bills have until November 29 to take

advantage of the amnesty programme. That date marks the final day of

the amnesty and the opportunity for taxpayers to save on their

outstanding tax bills, as all of the penalties and interest will be waived

once the principle is paid in full by that date,” said Williams-Gayle.

The taxes eligible for the waiver of penalty and interest in this Tax Amnesty

programme are Value Added Tax (VAT), Land Tax, Income Tax, PAYE and

Corporation Tax. Williams-Gayle urged taxpayers to use these last few

days to make the necessary arrangements to bring their tax arrears up to

date.

“We are encouraging persons to come in early to meet with the team in

the Tax Arrears Management Unit to bring their tax arrears up to date and

to avoid the last minute rush to the deadline as we have seen in previous

programmes. Taxpayers can visit the units at our offices in the Treasury

Building or Holetown,” she shared.

“This Friday is the deadline for persons to take advantage of the five per

cent discount on land tax bills, so there may be a surge then. However,

we also want to note that our offices will be closing early next

Wednesday, so we are asking persons to keep this in mind when

coordinating their business next week.”

Application forms for the Tax Amnesty Programme may be collected from

the Authority’s offices the Treasury Building, Weymouth Corporate Centre,

Warrens Tower II, Holetown and Southern Plaza Oistins or downloaded

from the Authority’s website at www.bra.gov.bb.

<< Back to news headlines >>

Off target Wednesday 22nd November, 2017 – Barbados Today

The chances that the Freundel Stuart administration will achieve its deficit

target this year following Minister of Finance Chris Sinckler’s presentation of

a $542 million austerity package back in May, are slim to none, according

to the International Monetary Fund (IMF), which today warned of the

need for “urgent” corrective action.

Following its two-week Article IV Consultation which ended yesterday, the

IMF team, led by Deputy Division Chief Judith Gold, issued its preliminary

report, in which it also cautioned that Government’s programme was

simply too “ambitious”, while pointing out that the overall deficit was likely

to fall by a mere two percentage points by the end of this fiscal year.

Back in May when Sinckler announced the programme he had said that

Government was aiming to wipe out the deficit of $537.6 million and

achieve a small surplus of $4.4 million.

However, Gold and her team warned today that without divestment

proceeds, the deficit would only decline to 4.1 per cent of gross domestic

product (GDP) in financial year 2017/2018.

“The larger than expected fiscal deficit is increasing funding challenges,”

Gold warned.

At the same time, while Government is seemingly intent on achieving a

surplus of 4.4 per cent of GDP in financial year 2018/2019, the IMF is

suggesting that it aims instead for a 7.5 per cent GDP surplus by financial

year 2020/2021.

“The sizeable fiscal adjustment would put the debt-to-GDP ratio on a

clear downward path toward debt sustainability,” Gold said.

In terms of the performance of the actual measures, which included a

whopping increase in the National Social Responsibility Levy (NSRL) from

two to ten per cent, an introduction of a new sales tax on foreign

currency transactions and a hike in the excise duty on fuel, the IMF

reported that due to exemptions to the NSRL, lower-than-expected non-

oil imports, shortfalls in some other revenues, and high transfers,

Government was likely to fall short of its overall target.

The lending agency also warned that the country’s international reserves,

which stood well below the 12 weeks benchmark at just 8.6 weeks of

import cover or $549.7 million at the end of September, were likely to dip

even further by yearend as Government continues to service its debt, and

private foreign inflows remain weak.

While the island’s long-stay tourism performance remains strong, the IMF

said fiscal tightening was contributing to an overall slowdown of the

economy, with real growth now projected at 0.9 per cent this year, down

from last year’s improved performance of 1.6 per cent.

In this context, it reiterated its willingness to help Government, “including

through continued policy dialogue and technical assistance”.

But with the Freundel Stuart administration currently not entertaining

suggestions of a borrowing relationship with the Washington-based

financial institution, the Fund said it welcomed progress in formulating the

Barbados Sustainable Recovery Programme (BSRP), while emphasizing the

need for immediate structural reforms, as well as reform of state-owned

enterprises, which it said should include improved management, mergers,

closures, and privatization.

With Government currently wrestling with a ballooning national debt in

excess of 100 per cent of GDP, a high fiscal deficit of 5.5 per cent of GDP

and dwindling international reserves of below $600 million, the IMF also

warned that “substantial further fiscal effort is needed to decisively place

the debt on a downward trajectory.

“Given the urgency in addressing funding, balance of payment risks, the

high debt, and the limited policy options, the fiscal adjustment must

continue, with a focus on accelerating [state-owned enterprises’] reforms

to facilitate a significant and durable reduction in transfers,” Gold said,

adding that structural reforms to support growth and improve the business

climate for domestic and foreign investment were also urgent.

“These reforms would aim to improve business processes, such as

significantly reducing clearance times for immigration and customs,

accelerating approval of building permits, and streamlining legal

procedures,” she added.

With no mention of general elections, due here by the middle of next

year, Gold said any adjustment strategy “should focus on addressing the

high transfers, containing other current expenditures and maintaining a

strong revenue effort”.

“Reforms of state owned enterprises should include improved

management, cost recovery, reduced services, mergers, closures, and

privatization. Containing other current expenditures, including the wage

bill, and Government pensions is also critical,” she said.

The Washington-based financial institution also called for a review of

domestic tax policy “with a view to broadening the tax base and

improving its progressivity, while suggesting that efforts to strengthen tax

administration must continue.

During their visit from November 7 to 21, the IMF team held meetings with

Sinckler and other senior Government officials, as well as the Opposition

and key members of the private sector.

In light of those talks, it is urging Government to immediately settle its

arrears to the private sector and to remain current with its payments to

the business community.

“Further, arrears to the private sector should be cleared, and remaining

current should be a Government priority. A concentrated effort to

improve implementation capacity, including by providing clear direction

and clarifying expectations, is also needed,” Gold said, while

commending plans by the authorities to enact a new Financial

Management and Audit Act, which could help address some of the

implementation gaps.

<< Back to news headlines >>

Billions pledged . . . Hurricane-ravaged Caribbean countries assured of

new financial support Wednesday 22nd November, 2017 – Barbados Today

Just over US$2 billion in pledges, including $2 million from Venezuela and a

quarter billion from Haiti, were made as the Caribbean Community

(CARICOM) and the United Nations jointly hosted a high-level pledging

conference on Tuesday.

Nearly 400 high-level representatives from governments, multilateral and

civil society organizations and the private sector gathered at UN

headquarters for the conference held in support of the reconstruction

efforts in countries devastated by hurricanes Irma and Maria back in

September.

To help affected islands build back better, the UN said more than US$1.35

billion was pledged from the region and beyond, and more than US$1

billion was offered in loans and debt forgiveness, in response to the

hurricane-hit countries’ urgent needs.

The pledges included: $702 million from The Netherlands; $352 million from

the European Union; $140 million from the World Bank; $78 million

from Canada; $30 million from China; $27 million from Mexico; $12 million

from Italy; $4.3 million from the United States; $4 million from Japan; $1

million from Kuwait; $2 million from India; $1 million from Venezuela; $1.2

million from Belgium; $1 million from Chile; $500,000 from Denmark;

$300,000 from Colombia; $250,000 from Haiti; US$ 250,000 from New

Zealand; $200,000 from Brazil; $150,000 from Kazakhstan; $100,000

from Romania; $100,000 from Portugal and $20,000 from Serbia.

The Inter-American Development Bank pledged U$1 billion in

loans; Italy, US$30 million in soft loans; and Venezuela forgave US$1 million

in debt.

According to the latest needs estimates, recovery costs surpass US$5

billion. In some cases, the impact was 3.5 times the gross domestic

product (GDP) of affected countries, such as in the British Virgin Islands.

The principal economic sectors of tourism and agriculture have been

significantly affected, according to assessments made public during the

conference, which was organized by CARICOM with support from

the United Nations Development Programme (UNDP), working with sister

UN agencies.

“The magnitude of reconstruction will require significant levels of financing

which we are unable to generate on our own. Countries are highly

indebted, with limited access to financing due to their middle-income

status,” said CARICOM Secretary General Irwin LaRocque at the

conference.

“The task of rebuilding is beyond us.”

UN Secretary General António Guterres also stressed that countries in the

Caribbean needed support now to rebuild, and to take effective climate

action.

“We need a new generation of infrastructure that is risk-informed, to

underpin resilient economies, communities and livelihoods,” he said.

Climate-vulnerable islands were decimated, like Barbuda, the smaller of

the two states that make up the twin island of Antigua and Barbuda; and

Dominica, with deep social, economic and environmental impacts. Other

severely affected islands were Anguilla, British Virgin Islands, The Bahamas,

Turks and Caicos Islands. Haiti and St Kitts and Nevis also suffered

damage. Sint Maarten/St Martin as well as Cuba and the Dominican

Republic were impacted, in addition to Puerto Rico.

In Barbuda, damage surpassed US$130 million with recovery needs of over

$220 million, according to the latest post-Irma assessment. The tourism

sector, which is crucial for Antigua and Barbuda’s economy, accounting

for nearly 60 per cent of GDP, was severely affected, bearing 76 per cent

of losses.

“Climate change recognizes no borders, size of country or religion of its

people. All are involved and all are consumed; but the small, vulnerable,

poor are the most affected,” said Antigua and Barbuda prime minister

Gaston Browne.

“We Small Island Developing States will never achieve the Sustainable

Development Goals unless there’s funding for climate-resilient

communities.”

In Dominica, Hurricane Maria decimated decades of development gains,

impacting over 200 per cent of the island state’s GDP. Poverty levels risk

rising above 60 per cent. Nearly 60 per cent of damage relates to housing

and transportation infrastructure, with recovery costs estimated at around

US$1.3 billion.

“We have the goal of rebuilding Dominica as the world’s first climate-

resilient country,” said Prime Minister Roosevelt Skerrit. “It’s an existential

matter for us; it’s the only way forward.”

<< Back to news headlines >>

All not yet on board with Sustainable Recovery Plan Wednesday 22nd November, 2017 – Barbados Today

In an attempt to avoid a possible roadblock, Government is making a

last-ditch effort to get the full support of all the Social Partners for its

Barbados Sustainable Recovery Plan (BSRP) 2017, which is due to be laid

in Parliament by next month.

Barbados TODAY understands that a draft of the 104-page document was

given to the Social Partners on Monday last week, ahead of a meeting

which took place just over 48 hours later.

However, it is understood that all parties did not agree fully with the draft

document, prompting Minister of Finance Chris Sinckler to schedule

another meeting with the Social Partners for later this week in order to

“refine” some aspects of the plan in the hope of getting their full backing.

Efforts to reach Sinckler today were not successful, and when contacted,

Chairman of the Barbados Private Sector Association Charles Herbert told

Barbados TODAY he did not think it appropriate for him or anyone to air

any objections in the media until the authorities were given the

opportunity to address any concerns they might have.

The plan, which was designed to “put the Barbadian economy on a path

of sustainable economic recovery and reinvigorate social progress”, was

first announced by Sinckler in his May 30 Budget presentation.

The BSRP was structured and developed by three working groups coming

out of the August Social Partnership meeting, which involved Government

representatives, the trade unions and the private sector.

<< Back to news headlines >>

Chinese Govt. gives $48M grant to Education Ministry Thursday 23rd November, 2017 – Kaieteur News

The Cyril Potter College of Education [CPCE] is poised to enhance its

preparation of teachers in the subject area of science.

The way was paved in this regard with the inking of a Memorandum of

Understanding [MOU] between the Ministry of Education and the People’s

Republic of China yesterday, which will see close to $50 million being

made available to upgrade the CPCE’s science laboratory, and also to

procure resources and other materials intended to teach and train

teachers.

Inking the agreement for the sum of $47,782,900 that will be dispersed by

the Education Ministry was Permanent Secretary of the Education Ministry,

Mr. Vibert Welch, and Charge d’ Affaires/Political Counsellor of the

People’s Republic of China, Mr. Yang Chengi.

Senior Public Relations Officer of the Ministry, Mr. Brushell Blackman, said

that the financial support from the Chinese Government resulted from a

discussion President, David Granger had with the Chinese Ambassador to

Guyana, Mr. Cui Jianchun.

According to Blackman, during that recent discussion, the Chinese

Ambassador indicated his interest in offering a gift to President Granger.

To this, the President responded by asking that the gift takes the form of

support to the Ministry of Education.

Speaking at the signing ceremony held at the 26 Brickdam, Georgetown

office of the Ministry of Education, Permanent Secretary Welch said that

the signing of the MOU is important to the Ministry for many reasons. He

noted, for instance, that the MOU not only demonstrates the support of

the Chinese Embassy for the Green Initiative vision of President Granger,

but also communicates the commitment of the Ministry to expand and

strengthen science and Information Communication Technology [ICT]

capabilities of the sector, specifically at the CPCE. “This is necessary to

enhance the knowledge content and skills of students who are pursuing

initial teachers training at this college,” said Welch, as he explained that

the CPCE offers two distinct programmes – the Associate Degree in

Education and the Trained Teachers Certificate. These programmes, the

Permanent Secretary explained, are offered at the Early Childhood,

Primary and Secondary levels, during which all trainees are required to

take courses in ICT and basic science.

Additionally, he said that at the secondary level, trainees can also

specialise in, among other subject disciplines, ICT and pure sciences such

as Biology, Chemistry and Physics. But Welch admitted yesterday that “it is

no secret that over the years our sector has struggled with the paucity of

specialised teachers in the areas of science and information technology

for various reasons.”

He, however, noted that the Education Ministry has remained committed

to ensuring that it encourages, attracts and retains these skills within the

sector and importantly within the country.

“Today, this agreement is a demonstration of our intention to honour this

commitment. Beyond the immediate benefits of this MOU to the students

and teachers of the college, lies the much anticipated impact of the

nurturing of thousands of young minds in our schools, from among which

Guyana would have its future scientists, engineers, technologists,

technicians and a host of other skills-related professionals,” said Welch.

The Chinese support, according to Welch, will be useful in wake of the

discovery of oil and the potential concomitant job opportunities, and

moves towards diversification and an expanded production sector.

According to Welch, there is an ever-increasing need for new and

innovative technologies which will translate to a highly skilled and

competitive workforce that could contribute meaningfully to the country’s

economy. Moreover, he spoke of the need for the student teachers to be

exposed to the resources necessary to be excellent drivers of a STEM-

educated workforce.

Given the fact that the grant entails a clause that will allow the MOU to

be reviewed for any purpose at anytime, Welch highlighted the possibility

of some of the grant being used to stimulate research, even on a small

scale. He considered the possibility of the Chinese Government facilitating

a phase two grant for the purpose of research and development in the

areas of science and technology.

According to Yang, who also delivered remarks yesterday, over the past

four decades China has witnessed tremendous economic and social

transformation – from one of the poorest countries to the second largest

economy in the world. As such, he noted that China is poised to share

with its developing partners, such as Guyana, that crucial to such

transformation is the investment in education.

“Investment in education is an investment in the future, and it is critically

important to invest in education before you start your economic take-off,”

said Yang.

Minister of Education, Nicolette Henry, in recognising the support from

China, expressed sincere gratitude, even as she noted that it will go a

long way in strengthening what is done at CPCE.

“Education is and will remain a major focus of this government…the

monies will be used to procure equipment and amenities that will

strengthen the science lab at the teachers training college, because we

know if the teachers are well trained, if they are well prepared and they

are supported, then they will be better able to deliver the content in the

classroom.”

<< Back to news headlines >>

New Job Bill Will Ensure ‘Bahamians Are Priority’ Wednesday 22nd November – Tribune242

The government’s new Commercial Enterprises Bill will ensure “that

Bahamians are the priority,” despite the fact it will “liberalise the granting

of work permits” to foreign companies.

Officially known as an Act for the Designation of Specified Commercial

Enterprises and Specified Economic Zones in The Bahamas, the

Commercial Enterprises Bill “seeks to liberalise the granting of work permits

to an enterprise that wishes to establish itself in the Bahamas, and requires

work permits for its management team and key personnel.”

However, Press Secretary to the Prime Minister Anthony Newbold noted

yesterday the company’s investment “must be a minimum of $250,000.”

Mr Newbold said the bill “limits the amount of any work permits that will

need to be issued, ensuring that Bahamians are the priority.”

“[The] bill will also require investing companies to make an investment in

training Bahamian employees so that they are able to work and prosper in

these new roles that will be created and ensuring that Bahamian

employees are given the opportunity to work at all levels of the company

making the investment.

“The government will continue its move towards creating the environment

that the country needs to grow economically, ensuring stable long-term

employment for many Bahamian families. The prime minister has spoken

often about creating a level playing field and a meritocracy for those

who are willing and prepared to earn their way into higher paying jobs.”

According to Mr Newbold, not only is the bill expected to “lead to higher

paying jobs,” it will “allow the private sector to drive job creation and not

the government,” and promote “diversity in the economy.”

He added: “The bill will encourage investment in the Bahamas by allowing

companies from many different sectors to make investments in [the]

country, ensuring that Bahamians will be able to work in a diversified

economy that will not depend on tourism alone. [It also] allows for

companies to be located throughout the country and not just one

targeted area.”

Mr Newbold also noted this bill will aid “the introduction of the technology

hub in Grand Bahama and other industries that could emerge in other

islands.”

According to Tribune Business, if passed into law as is, the legislation would

enable a “specified commercial enterprise” to obtain an Investments

Board certificate granting it a specific number of work permits for certain

positions.

The certificate, which will initially be issued for one year and can be

renewed, would allow key personnel to set up the company’s physical

operations in the Bahamas before they obtained a work permit.

Such a permit must be applied for within 30 days of their entry, and the bill

mandates the Director of Immigration to make a decision on approval

within 14 days of receiving the application. If the director does not

respond within that timeframe, the work permit will be “automatically

deemed to have been granted”. Work permits issued under the bill’s

provisions will be for a three-year period, and are renewable for the same

duration. They can only be revoked on grounds of “public safety, public

morality or national security”.

The bill will be debated in the House of Assembly today.

<< Back to news headlines >>

Atlantis Near Sell-Out For Holiday Weekend Wednesday 22nd November, 2017 – Tribune242

ATLANTIS’S occupancy for the Thanksgiving weekend is ‘over 90 percent’,

according to a senior executive at the resort with the annual ‘Battle for

Atlantis’ tournament a ‘significant contributor’ to its boost in business for

the period.

Ed Fields, Atlantis’ senior vice-president of public affairs told Tribune

Business: “We are over 90 percent and Battle for Atlantis is a significant

contributor as it has since the tournament’s inception.”

Now in its seventh year of elite collegiate tournament play, the 2017 Battle

for Atlantis tournament sponsored by Bad Boy Mowers will include

Villanova University, The University of Arizona, Pursue University, NC State

University, University of Tennessee, Knoxville, SMU, Western Kentucky

University and the University of Northern Iowa.

The early season tournament field boasts a combined 16 Final Four

appearances and 5 National Championships between the field. The

annual Battle 4 Atlantis once again falls during the Thanksgiving holiday,

The 12-game, three-day tournament starts today and is regarded as one

of the most challenging early-season tournaments. Sports Illustrated has

ranked the Battle 4 Atlantis tournament as the top early season college

basketball tournament to watch.

Other Nassau/Paradise Island resort properties also reported solid

bookings for the Thanksgiving period. Gary Williams, the Sandals Royal

Bahamian general manager told Tribune Business the all-inclusive Cable

Beach resort’s business for the Thanksgiving period was also ‘looking

good’.

<< Back to news headlines >>

Gas coming to T&T soon Thursday 23rd November, 2017 – Trinidad and Tobago Guardian

Venezuelan state oil company Petróleos de Venezuela (PDVSA) plans to

export up to two billion cubic feet of gas to neighboring countries in the

next 10 years through gas pipelines, according to PDVSA Gas Vice

President, César Triana on Wednesday.

He indicated that in less than five years the company expected to export

500 million cubic feet, mainly to Trinidad and Tobago through exploitation

in the fields located in the Paria Peninsula, in the so-called Mariscal Sucre

Project.

During his participation in the First International Seminar of the Forum of

Gas Exporting Countries that takes place in Santa Cruz de la Sierra, Bolivia,

he said that the construction of a gas pipeline to Aruba and another to

Curaçao to export short gas is also under negotiations.

Triana said that the state is advancing a reserve certification plan with

which Venezuela will climb from eighth to fifth place among the countries

with the largest deposits of this energy source.

At present, Venezuela has 202 trillion cubic feet of gas and with the

certification process it is foreseen to raise the reserves to 460 trillion cubic

feet.

He specified that currently the state produces 8.2 billion cubic feet of gas,

according to production figures from last year, but has among its plans

"increasing production to 10.2 billion cubic feet."

"Of those 8.2 billion cubic feet, the domestic market consumes only 2.5

billion, the rest of the production is used for reinjection of the deposits and

the manufacturing oil sector," Triana said.

At present, the state company is carrying out two ambitious gas

exploitation projects: the Mariscal Sucre Project, in the Sucre state, in the

east of the country and the Rafael Urdaneta Project, on the western

coasts.

PDVSA expects to export gas to nations such as El Salvador, Panama,

Haiti, the Dominican Republic, Colombia, Aruba, Curacao and Trinidad

and Tobago

<< Back to news headlines >>

NHSL adds aircraft to fleet Thursday 23rd November 2017 – Trinidad and Tobago Guardian

The National Helicopter Services Limited (NHSL) has added two new

aircrafts to its fleet as it attempts to maintain reliable service inspite of the

current economic contraction.

NHSL Chairman Larry Mc Intosh admitted that in recent times, the NHSL

has been experiencing reduced revenues “at a time when our aging

aircraft must be replaced by newer, more cost-effective machines

required by the energy companies.”

Mc Intosh was speaking yesterday at a brief ceremony where the NHSL

introduced its two new aircraft - the AgustaWestland AW139 and Airbus

H135 - a first for T&T.

T&T Guardian understands that both aircrafts were leased under three

and five-year lease agreements, however, that cost was not disclosed to

the media.

Mc Intosh noted that the NHSL’s fortunes rise and fall in sync with the

cycles of the offshore oil and gas industry.

“Along with the rest of the country, we continue to tighten our belts while

aggressively seeking new business opportunities both locally and

regionally.” he said

“Although these are tough times for our business, the long-term outlook is

quite attractive. Already, we are seeing an upturn in offshore exploration,

and with our new fleet, we are well-positioned to be the preferred service

provider for the offshore energy industry in this region,” Mc Intosh added.

Meanwhile, NHSL’s acting General Manager, Captain Homer Solomon

said they stand ready to assist the Government in rationalizing and

streamlining all its aviation assets, “to transform this business into one which

is a model of safety and enterprise par excellence.”

<< Back to news headlines >>

Witco drops by $8.01 Thursday 23rd November, 2017 – Trinidad and Tobago Guardian

Overall Market activity resulted from trading in 8 securities of which 1

advanced, 2 declined and 5 traded firm.

Trading activity on the First Tier Market registered a volume of 74,546

shares crossing the floor of the Exchange valued at $1,870,095.65.

TTNGL was the volume leader with 25,620 shares changing hands for a

value of $614,880.00, followed by Guardian Holdings with a volume of

22,500 shares being traded for $351,000.00.

First Citizens Bank contributed 17,529 shares with a value of $558,298.65,

while Scotiabank T&T added 4,272 shares valued at $249,912.00.

TTNGL enjoyed the day's sole price increase, climbing $0.10 to end the

day at $24.00.

Conversely, Witco registered the day's largest decline, falling $8.01 to

close at $112.99.

The Mutual Fund Market did not record any activity.

<< Back to news headlines >>

JPS to pump US$21m in energy storage facility Wednesday 22nd November, 2017 – Jamaica Observer

The Jamaica Public Service Company (JPS) has committed US$21 million

($J2.6 billion) to the development of a 24.5-megawatt facility to store

energy as a safeguard against power outages.

The light and power company disclosed the plans for the hybrid energy

storage solution last year by a press release on the Jamaica Stock

Exchange. The project involves the construction of a 24.5MW facility at the

Hunts Bay Power Plant substation, and will be a combination of high-

speed and low-speed flywheels and containerised lithium-ion batteries.

Once approved by the Office of Utilities Regulation, it would become

operational by the third quarter of 2018. The project is described as the

first of its kind in the Caribbean.

“We are very advanced with that process. We have made selection of a

vendor last month and we are working with the regulator now to finalise

the approval but we are very much on track to have that implemented

and functional next year,” JPS chief technology officer Gary Barrow told

reporters and editors during the Jamaica Observer Monday Exchange at

the newspaper's Beechwood Avenue location in Kingston.

He noted that the company is now in the middle of negotiations with the

vendor and will make the announcement next month.

The planned storage facility will allow JPS to provide a high-speed

response when the output from renewables is suddenly reduced to

mitigate grid stability and power quality issues that cause outages to

customers, the power company said.

In other words, the energy storage solution will have power readily

available in the event that solar and wind renewable systems suddenly

lose power due to cloud cover, reduced wind or other interruptions.

Barrow told the Business Observer that peak demand now stands at

650MW in the evenings.

JPS, as part of its mandate, strives to create a more energy -efficient

operation and be a modern and cleaner energy provider.

Up to June, Jamaica had an energy intensity of approximately 4,800

kilowatt-hours (kWh) per US$1,000 of gross domestic product. Former JPS

president Kelly Tomblin described it as one of the highest in Latin America

and the Caribbean and a part of the reason for Jamaica's lack -lustre

growth.

Newly appointed president and chief executive officer of JPS, Emanuel

DaRosa, during the Monday Exchange listed his three priorities for the

organisation, chief among the safety of employees and the general

public. He also seeks to get the company in line with becoming a more

efficient company that can pass on lower rates to customers and thirdly,

focus on the social economic development of Jamaica.

“When I look at JPS I think that one of the biggest opportunities is

renewable energy. God has blessed many countries in the world; here in

Jamaica what we are blessed with is wind, water and sun. So I believe JPS

needs to do much more to achieve the Government's vision of 30 per

cent of the energy consumed in Jamaica coming from renewables,”

DaRosa said.

He added that, to get to the Government's vision, it will require available

renewable generation of 500MW, ensuring that renewables go on stream

at or below the marginal cost of existing generation.

“The cost of one incremental unit of electricity has to come in from

renewables at or below the existing one and if we can do that, we can

keep the costs the same and shield the country from future increases in all

prices. If we can go below, it will actually help to lower the cost,” he

continued.

In 2016, Jamaica added 80MW of renewables from the Wigton Wind Farm

III, BMR Windfarm and WRB Content Solar projects which resulted in the

country being ranked 92nd in the World Economic Forum's Global Energy

Architecture Performance Index Report 2017, up from 98 the year before.

It is also estimated to have saved the country US$18 million ($2.3 billion) in

oil imports.

JPS continues to steadily diversify from solely heavy oil fuel to include

natural gas and some 120MW of renewables, 100 mW of which is wind

power and the remainder in solar energy. The company anticipates

another 30MW in Westmoreland by eight Rivers by next year.

The light and power CEO said the company has also engaged the

Government in a power system plan that will look at every available

option for generation, including wind power, hydro developments and

waste to energy. The initiative is expected to be completed over the next

nine months and will pinpoint what is needed to fulfil the Government's

request of 30 per cent of the energy consumed in Jamaica coming from

renewables by 2030.

<< Back to news headlines >>

FosRich launches IPO to raise $200m Wednesday 22nd November, 2017 – Jamaica Observer

FosRich Company Ltd, a local distributor of lighting, electrical and solar

energy products, has released their prospectus for their impending IPO,

set to be open for subscription on December 4 and which officially closes

on December 11.

.

Approximately 20 per cent of the company will be made public,

equivalent to 100,455,111 shares, with share value being $2.00 per share.

The company plans to expand capacity, especially its industrial electrical

and energy solutions division.

The company has supplied wholesale clients with lighting and electrical

products for over 20 years. Most recently they launched their industrial

electrical division, with its flagship branch located in Kingston.

In attendance at the launch were representatives of top international

electronic brands such as Phillips Lighting, Nexans and Seimens. It was also

announced that FosRich has now signed perpetual partnerships with the

aforementioned companies.

“By forming strong relationships with our international partners, it makes

the procurement process and access to crucial products for the industrial

market easier,” said Cecil Foster, managing director of FosRich. Arising

from this, will be the training and employment of 10 to 15 local technicians

and specialists, internationally trained and equipped to assist the local

construction market with modern technical requests by the second

quarter of 2018.

The selected lead broker on the deal is Stocks and Securities Limited (SSL).

SSL's CEO, Mark Croskery who believes that the investment market is

currently well suited for developing entities to go public said: “FosRich is

the first electrical entity in Jamaica to offer shares to the public. As the

economy continues along a growth trajectory, companies in the

construction and conglomerate may produce more. We are optimistic

that there will be more demand of companies like FosRich to supply

modern, industrial inventory and services.”

<< Back to news headlines >>

Mineral school in the works — Henry Wednesday 22nd November, 2017 – Jamaica Observer

Minister of Transport and Mining, Mike Henry yesterday disclosed plans for

the development of a mineral school similar to a model developed by the

Caribbean Maritime University.

It's the latest thrust by the Government to develop the mining and

quarrying sector, from which it is targeting growth of at least 20 per cent

for the September to December quarter. In fact, latest data from the

Planning Institute of Jamaica states that the country is now focusing on

the reopened Alpart alumina plant in St Elizabeth to drive the Jamaican

economy in the mining sector.

On Tuesday, JAMPRO and the Ministry of Transport and Mining hosted a

Minerals Investment Forum with the theme “Industrial Minerals for

Development” to promote interest and investment in the sector.

According to the Mining and Quarrying Association of Jamaica (MQAJ),

the mining sector will need a minimum of US$500 million worth of

investments, namely for quarry operators to retool and re-establish their

factories. It is on that premise that Minister Henry said steps will be taken to

help the sector to train and develop human resources.

Additionally, the minister said he is keen on ensuring that Jamaica

increases export of alumina and its by-products, as up to 80 per cent of

containers leave Jamaica empty.

“Indeed, the need for a mineral school in Jamaica has gotten more

overwhelming.It's a good time as any for us to establish this institute to give

youths the opportunity to hone new skills and improve on what they

currently have,” he said.

While Henry did not disclose a time frame for implementation of the

institution, he noted that he has given instructions to have the initiative

fast-tracked.

“It is no secret and I want to see more Jamaican companies involved in

the ownership of the sector. We appreciate and welcome mega

investors, but I am not for enclave development. We have to be very

careful that in the building out zones, we don't create enclave zones

which by themselves are not integrated into the development process of

the totality of the country,” Henry reasoned, adding that the Government

is adamant on seeing the modernisation of the framework that supports

sustainable mineral operation, improved efficiency of operation and more

importantly improved occupational health among the workforce.

He said the National Minerals Institute will have assistance from the

Minerals Development Council and the Minerals-Bearing Land

Management Council. The first draft of the National Minerals Policy is also

about to be brought to Cabinet.

In 2014, Jampro engaged in a market assessment to provide data on

where mineral deposits are located locally. The promotions company

then went on to form sector development teams which have the

responsibility of determining what investors are looking for, why the

opportunities exist and the deposits in Jamaica.

Plans are to have in place a value chain study to identify the opportunities

from source to end products and a market broker, by 2018, who will

introduce buyers to the local market.

“We see the mining and quarrying sector as the ultimate linkages

opportunity because it plays in so many spaces: manufacturing, fertilizers,

food and pharmaceuticals, constructions and electricity. So, if you look at

it, the minerals sector beats manufacturing,” vice-president of sales and

promotions at Jampro, Claude Duncan said.

He noted that the development of the special economic zones, port

authority expansion and the addition of 5,000 hotels room in the pipeline,

gives rise to a lot of capital expenditure to further boost the sector.

“The construction sector presents a myriad of opportunities around

marble. Then there is corporate gifting items; we had over $15 million

imports in that sector in 2016; opportunities in calcium carbonate and

fertilizers as companies like Seprod look to scale up the diary business

tremendously and work continues on the agro parks,” he said.

<< Back to news headlines >>

Airport Project Back On The Radar Wednesday 22nd November, 2017 – BVI Platinum News

The National Democratic Party (NDP) government's controversial $153.5M

TB Lettsome International Airport expansion project is back on the

administration's radar.

Premier and Finance Minister, Hon. Dr. D. Orlando Smith spoke about how

not having a longer runway posed difficulties immediately after hurricane

Irma ripped through the BVI in September.

The Premier in his address to the United Nations High Level Pledging

Conference in New York yesterday, November 21, said that one of the

lessons learned from the hurricane is that emergency access in and out of

the islands is critical, in the event of a hurricane or other emergency.

“Precious time was lost after Irma in getting flights in and out of the BVI

through regional hubs, because the runway at our airport is not long

enough to accommodate longhaul jets,” he said.

He add d, “We intend to extend the runway to ensure this never happens

again and that direct emergency access from and to the US, Europe and

Latin America are guaranteed for evacuation and relief purposes.”

Premier Smith said that they will also upgrade the seaports to reinforce

accessibility.

“These measures will give residents and visitors a greater sense of security

in the future and instill confidence in hoteliers to rebuild,” he said.

CARICOM and the United Nations organized the donor’s conference in

support of both Caribbean states and territories impacted by the

hurricanes.

Former U.S President, Bill Clinton also spoke at the conference.

A few months ago, government had reportedly shelved the airport

project following ongoing criticisms. Government had already expended

some $6M in preparatory works.

Interestingly, some members of the NDP, including backbenchers, were

against the project moving forward now. So much so, that some had

publicly spoken out against it in the House of Assembly.

In December 2016, government had selected a preferred bidder, China

Communications Construction Company (CCCC).

<< Back to news headlines >>

Venezuela writes off Dominica’s US$100-million PetroCaribe debt Wednesday 22nd November, 2017 – Dominica News Online

Venezuela has written off Dominica’s outstanding US$100-million

PetroCaribe debt in a gesture of solidarity between the two countries in

the wake of Hurricane Maria.

The announcement was made by Jorge Arreaza, Venezuela’s minister of

foreign affairs, who said he was instructed by President Nicolas Maduro to

announce the debt forgiveness.

“Due to the difficult conditions facing our brethren in Dominica after the

passage of Hurricane Maria, Venezuela is announcing the start of a

process of debt forgiveness in the short- and long-term term for supplies of

PetroCaribe from its creation until September 10, 2017,” he said at a

meeting on Tuesday. “This means the cancellation of a sovereign debt

that exceeds US$100 million in order to allow the government of Prime

Minister Roosevelt Skerrit funds for the reconstruction of his country, as well

as the creation of a fiscal space that allows access to new credits.”

He said he was told to make the announcement by President Nicolás

Maduro.

“We do not want to end this meeting without announcing a concrete

provision for a country that has suffered the most which will allow the

brothers of the Caribbean to enter the process of recovery,” Arreaza

stated. “That is why I bring instructions from President Nicolás Maduro to

formally announce before this forum an act of solidarity with our brethren

in Dominica, whose precedent goes back to a similar action taken by

President Hugo Chávez after the earthquake in Haiti.”

The PetroCaribe initiative was started by Venezuela’s late President, Hugo

Chavez. It is an alliance between Venezuela and a number of Caribbean

countries where oil is purchased on condition of preferential payment.

<< Back to news headlines >>

ECLAC Advocates for Debt Relief for Hurricane-Ravaged Caribbean

Countries Wednesday 22nd November, 2017 – Caribbean 360

The United Nations’ Economic Commission for Latin America and the

Caribbean (ECLAC) has presented a debt for climate adaptation swaps

proposal for Caribbean countries ravaged by hurricanes during this year’s

Atlantic hurricane season.

Director of ECLAC’s Economic Development Division, Daniel Titelman

presented details of the proposal on Monday – day one of the CARICOM-

UN high level pledging conference at the UN. It is based on the creation

of a Caribbean Resilience Fund (CRF) which is expected to provide

financing for investment in climate resilience, green growth and structural

transformation in the economies of the region.

ECLAC said the proposal, which was originally launched in late 2015, has

already been put into consideration in several international forums.

Titelman reminded that the total Caribbean debt burden mounted up to

US$52 billion in 2015, representing more than 70 per cent of the its gross

domestic product (GDP).

He explained that this debt has been rooted in external shocks,

compounded by the inherent structural weaknesses and vulnerabilities,

particularly extreme weather events. And he said the accumulation of

debt has been caused by increased expenditures to address the impact

of these extreme events and climate change attendant difficulties, since

most Caribbean countries are located in the hurricane belt and are also

prone to earthquakes and other hazards.

On top of this, the ECLAC director warned that the upper middle and high

income classification of the majority of Caribbean countries poses a

number of challenges, among which the most important are limited

access to concessional external finance and a decline on official

development assistance to the Caribbean. Also, GDP per capita criteria

failures to take into account threats from natural disasters such as

hurricanes as well as economic shocks.

In this context, ECLAC said its debt relief proposal for the Caribbean aims

to help these economies mitigate and adapt to the consequences of

climate change while trying to reduce the debt burden, increase growth

and achieve the Sustainable Development Goals (SDGs) of the 2030

Agenda.

In her speech, Director of ECLAC’s Subregional Headquarters for the

Caribbean, Diane Quarless paid tribute to the indomitable resilience of

spirit demonstrated by the government and peoples of the countries

devastated by the recent superstorms. She also described the actions

taken in the five countries for which ECLAC conducted its Damage and

Loss Assessments methodology post Hurricane Irma and Maria: Anguilla,

the Bahamas, British Virgin Islands, Sint Maarten and the Turks and Caicos

Islands.

“We are resolved to collect the data that present the most accurate

picture of the degree of the subregion’s vulnerability to extreme climatic

events,” she stated.

“The most vulnerable are already facing the impact of climate change. It

is estimated that 70 per cent of the beaches in the subregion are losing

shoreline at a rate of between one quarter and nine meters each year.

This is more serious when you consider that about 70 per cent of

Caribbean populations, dwellings and infrastructure are situated on low-

elevation coastal zones.”

Quarless also emphasized that ECLAC has undertaken substantive

research and focused economic assessments of the challenge which

climate change poses to the economies of the Caribbean across a range

of sectors, including agriculture, freshwater, health and tourism, providing

a framework complete with data, parameters and other measures that

can be used to inform economic policy dialogue in responding to this

challenge over the medium term.

“It is for these reasons that ECLAC has been championing a debt for

climate adaptation swap initiative; our contribution to addressing at once

the crippling debt of the Caribbean economies and their need to

generate the resources needed to finance resilience building measures,”

he stressed.

<< Back to news headlines >>

China stocks suffer mauling, Fed leaves dollar in a daze Thursday 23rd November, 2017 – Reuters

The dollar was on the defensive Thursday, a day after its worst drubbing in

five months, as the biggest slump in Chinese stocks in almost two years

took the shine off another record high in a global equities bull run.

The near 3 percent drop in China reflected its recent bond markets

worries, adding to a subdued mood in Europe where, with trading

constrained by the Thanksgiving holiday in the United States, the main

bourses opened in the red for the 10th day in the last 13.

Surveys covering Europe’s services and manufacturing industries outshone

the most optimistic forecasts in Reuters polls, with factories having the

second-best month in the index’s history.

That helped some European stock markets regain lost ground, and by

early afternoon the pan-European STOXX 600 was up 0.1 percent after

after opening 0.3 percent lower.

The MSCI world equity index, which tracks shares in 47 countries, was up

0.1 percent, having earlier touched a record high.

Britain’s FTSE 100 was down 0.2 percent, trimming opening losses of 0.5

percent. One of the index’s heavyweight utilities Centrica crashed over 16

percent in what could be is biggest daily drop ever.

Moves were expected to be minor in light of Thanksgiving. Japanese

markets had also been closed, though there was no shortage of action in

Asia.

The dollar’s rout took it as low as 111.07 yen after minutes of the Federal

Reserve’s last meeting showed many participants were concerned

inflation would stay below the bank’s 2 percent target for longer than

expected.

That view echoed comments from Chair Janet Yellen and led markets to

pare back pricing for more rate hikes next year.

The dollar clawed back to 111.14 yen in Europe but the overnight move

was its largest single-day fall against the Japanese currency since May.

“The dollar has had a rough ride in the aftermath of the Fed minutes,” said

CIBC’s head of currency strategy Jeremy Stretch, who added there was

also a growing sense among analysts that the Bank of Japan could start

scaling back its stimulus.

Bonds had marked a comeback on the speculation the Fed might not

tighten U.S. policy as aggressively as previously thought.

While a move in December to between 1.25 and 1.5 percent is still almost

fully priced in, Fed fund futures rallied to show rates at just 1.75 percent by

the end of next year.

Borrowing costs in the euro area also crept up with minutes from the

European Central Bank’s October meeting, at which monthly asset

purchases were extended well into 2018 albeit at a reduced pace, due

later alongside a number of ECB speakers.

“The most important information to come from the accounts will be the

degree of support there was for keeping QE open- ended by saying that it

can be done beyond September,” said Peter Chatwell, head of euro

rates strategy at Mizuho.

DOVISH TURN

Against a basket of currencies, the dollar stood at 93.086 , having shed

0.75 percent overnight.

The euro was enjoying the view at $1.1850 after climbing from $1.1731 on

Wednesday.

The Fed’s dovish turn helped break a sell-off in short-term U.S. Treasuries,

with yields on the two-year note falling almost five basis points to 1.727

percent. That was the sharpest daily drop since early September.

The rally spilled over into Asia, where Australian 10-year bond yields fell to

their lowest since June.

MSCI’s broadest index of Asia-Pacific shares outside Japan eked out a 10-

year peak with a rise of 0.15 percent, as did Hong Kong’s main index.

Wall Street had been an oasis of calm in comparison, with the Dow

closing for the Thanksgiving break off 0.27 percent, while the S&P 500 lost

0.08 percent and the Nasdaq added 0.07 percent.

Commodities were pushed onto the back foot again as the dollar started

to recover in Europe. Gold was flat at $1,292.02 an ounce having added

0.9 percent overnight.

Oil prices paused after hitting their highest in more than two years after

the shutdown of one of the largest crude pipelines from Canada cut

supply to the United States. [O/R}

U.S. crude futures eased back 12 cents to $57.86 a barrel, after jumping 2

percent on Wednesday to ground last trod in mid-2015. Brent crude

dipped 0.6 percent to $62.92 a barrel.

<< Back to news headlines >>

U.S. oil prices ease from two-year highs on oversupply worries Wednesday 22nd November, 2017 – Reuters

U.S. oil prices eased back from a two-year high on Thursday, as concerns

about oversupply outweighed the impact of a pipeline shutdown in the

United States.

U.S. light crude CLc1 was trading down 17 cents at $57.85 a barrel at 1015

GMT, slipping from its highest level since mid-2015 reached on Wednesday

of $58.15.

Brent crude LCOc1 was at $62.98 per barrel, or 34 cents below its last

close.

U.S. crude had been boosted by the shutdown of the 590,000 barrel-per-

day (bpd) Keystone pipeline, which runs from Canada to the United

States. Last week’s closure due to an oil spill sent crude prices to their

highest since June 2015.

But rising production in the United States has renewed concerns about

global oversupply. U.S. output C-OUT-T-EIA has risen by 15 percent since

mid-2016 to a record 9.66 million bpd.

The United States, previously the world’s biggest importer of crude oil, is

now one of its biggest exporters, behind Russia and Saudi Arabia.

“The U.S. will, without question of doubt, be the biggest oil producer in the

world in the next five years. They are producing... at half the cost than

they were just two years ago,” said Matt Stanley, fuel broker at Freight

Investor Services in Dubai.

Climbing U.S. output threatens efforts by the Organization of the

Petroleum Exporting Countries, Russia and some other non-OPEC

producers to reduce global supplies by limiting their production. Their deal

ends in March.

OPEC meets on Nov. 30 to discuss policy, with Saudi Arabia lobbying for

an extension to the cuts. However, Russia has sent mixed messages on its

position, saying on Thursday that the cuts had hit its economy.

Nevertheless, prices continue to find some support from a drawdown in

commercial fuel inventories in the United States.

U.S. stocks C-STK-T-EIA fell 1.9 million barrels in the week to Nov. 17, to

457.14 million barrels. Stocks have dropped 15 percent from record highs

in March to below 2016 levels.

“Lower supplies into the U.S. from the north and robust exports from the

south are likely to support a further reduction in U.S. inventories,” said Ole

Hansen, head of commodity strategy at Saxo Bank.

<< Back to news headlines >>

China's trade with North Korea sinks in October after U.N. sanctions Thursday 23rd November, 2017 – Reuters

China’s trade with North Korea fell to $334.9 million in October, its lowest

since February as imports sank to their weakest in years, data showed on

Thursday, the latest sign that tough new sanctions cut business with its

isolated neighbor.

The total is down almost 20 percent from September and compares with

$525.2 million a year ago, according to customs’ data.

The data represents the first whole month since the latest United Nations

penalties came into force on Sept. 5, banning Pyongyang from selling

coal, iron ore, lead, lead ore and seafood abroad.

The world’s second-largest economy bought goods worth $90.75 million

from North Korea in October, down sharply from $145.8 million in

September and the lowest on government records going back to January

2014, data from China’s General Administration of Customs shows.

Exports plunged to $244.2 million, the weakest since February. That

compares with $266.4 million in September and $286.9 million in October

last year.

Trade between the two countries has slowed this year, particularly after

China banned coal purchases in February.

But the pace and scale of the drop suggest the most recent curbs are

hurting Pyongyang’s ability to sell some critical commodities to one of its

chief trading partners.

The U.N. estimated the latest ban, imposed after its two intercontinental

ballistic missile tests in July, would slash by North Korea’s $3-billion annual

export revenue by a third.

The data is also likely to underscore Beijing’s strongly-stated stance that it

is rigorously enforcing U.N. resolutions aimed at reining in Pyongyang’s

missile and nuclear programs.

The data comes as U.S. President Donald Trump ramps up pressure on

President Xi Jinping to tighten the screws further on Pyongyang, with steps

such as limits on oil exports and financial transactions.

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Euro zone shares get PMI boost, Centrica sinks Thursday 23rd November, 2017 – Reuters

European shares dipped on Thursday, tracking more timid Wall Street

trading as volumes thinned out for the Thanksgiving holiday, while euro

zone stocks drove higher, boosted by strong business growth figures for

the bloc.

The pan-European STOXX 600 slid 0.2 percent, while euro zone blue chips

.STOXX50E erased early losses to trade up 0.2 percent after business

surveys for the bloc cemented optimism on the economy.

Euro zone businesses boomed into the year end as November composite,

services and manufacturing PMIs beat all forecasts in Reuters polls.

“This supports our view that the economy is in a very healthy condition,”

said Britta Weidenbach, head of European equities at Deutsche Asset

Management.

Societe Generale strategists however warned “the eurozone recovery is

now a well-known story”, and were less enthusiastic about the potential

for equities in the new year, adding that a heavy political agenda in

Europe could affect markets.

British stocks lagged peers, down 0.3 percent, as energy firm Centrica

plummeted after results.

Centrica (CNA.L) dropped 16.4 percent, set for its biggest daily drop ever,

after it lost 823,000 or about 6 percent of its energy customers in four

months and full-year earnings missed market estimates.

“The question now is whether this weakness will persist in to 2018, and the

longer-term potential impact on the dividend,” said Morgan Stanley

analysts.

Leading European gainers was Altice (ATCA.AS), jumping 4.7 percent

after a report the debt-ridden French telecoms and cable group was

looking to sell its telecoms network in the Dominican Republic.

Its shares are still down nearly 60 percent from the start of the year as

funds sold out of the company’s U.S. unit.

“The shares have de-rated but we remain neutral given our continued

concerns about the long-term impact from Altice’s strategy,” said Credit

Suisse analysts, adding the company’s strategy shift and asset sales could

however be an upside risk.

Thyssenkrupp (TKAG.DE) reversed early losses to trade up 1 percent after

demand for elevators helped boost its orders to a five-year high.

Telecom Italia (TLIT.MI) shares rose 4.7 percent on speculation about a

possible spin-off of its telephone network, and after the firm said it would

work with Rome under special “golden powers” to protect it as a strategic

asset.

“Ongoing discussions with Rome aimed at easing tensions are welcome,”

said Mediobanca analysts in a note, adding: “Network separation with

disposal of minority stake would be a value creative option.”

As the earnings season drew near its close, MSCI Europe earnings growth

was tracking 10.1 percent in dollar terms while companies in the MSCI

EMU enjoyed 11.1 percent earnings growth.

“The Q3 results season was exactly in line with our expectations, definitely

supporting the view that the European equity market will show double-

digit earnings growth this year in euro terms,” said Weidenbach.

“This is really the turnaround that we were awaiting – beforehand we had

not seen earnings growth over five years.”

Analysts have been revising down earnings estimates for European

companies this quarter. Deutsche’s Weidenbach put this down to the

strengthening euro denting expectations for earnings from foreign-

exposed companies especially in healthcare and consumer staples.

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Sterling steadies as traders brush off growth forecast cuts Thursday 23rd November, 2017 – Reuters

Sterling benefited from dollar weakness on Thursday, hitting a six-week

high against the U.S. currency but slipping against a stronger euro, with

traders largely brushing off downward growth forecast revisions and

refocusing on Brexit negotiations.

Finance minister Philip Hammond announced during his budget

statement on Wednesday that Britain’s Office for Budget Responsibility

(OBR) had slashed its growth and productivity forecasts, knocking sterling

down towards $1.32 during the speech to parliament.

But the currency recovered as Hammond announced new measures

intended to help first-time house buyers, with traders saying they had

expected the lower forecasts.

The pound reached as high as $1.3337 in Asian trading on Thursday, its

strongest since Oct. 13, as the dollar extended falls after a dovish set of

minutes from the U.S. Federal Reserve handed the greenback its worst

day since June.

It eased back to trade at $1.3312 by 1230 GMT, down 0.1 percent on the

day but half a percent up compared with before the budget statement.

“The OBR’s position on the weakness of productivity and the dismal

economic outlook isn’t exactly new news – we knew all of that before,”

said Societe Generale macro strategist Kit Juckes.

“The chance of a rate hike in August next year is just above 50 percent -

that’s the same as two days ago. So there hasn’t been any real kind of a

change in how the market’s looking at what’s going to happen with

monetary policy or where the economy is going,” he added.

Against a stronger euro, sterling was down a third of a percent at 89.04

pence.

Some analysts said the OBR’s projections were seen as deliberately

pessimistic.

“The markets recognise that both the OBR and BoE have recently been

seen to take a more cautious stance when forecasting growth, so many

are looking at these new forecasts as a worst-case scenario that is likely to

be bettered,” wrote FxPro analysts in a note to clients.

Sterling showed little reaction to data released on Thursday showing that

the economy grew at 0.4 percent in the third quarter of this year, as

expected, with households increasing the pace of their spending.

The Brexit talks remain at the forefront of most investors’ minds.

Prime Minister Theresa May will visit Brussels on Friday, where European

Union negotiators will be listening intently for signs that Britain is preparing

to risk a domestic backlash by raising its divorce bill offer to secure a Brexit

deal in December.

Hopes have been raised by reports in British media over the past week

that May has secured backing from pro-Brexit hardliners in her cabinet to

increase the offer.

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