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SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: [email protected]
▪ The Government of the British Virgin Islands’ rating reaffirmed at CariAA-
▪ Venture Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-
▪ Eastern Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-
▪ Trinidad and Tobago Unit Trust Corporation’s initial rating assigned at CariAA
▪ Massy Holdings Ltd. rating reaffirmed at CariAA+
▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA
▪ National Flour Mills Limited’s rating reaffirmed at CariA-
▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO)
▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-
▪ Government of Barbados’s local currency rating upgraded to CariBB
▪ PanJam Investment Limited’s initial rating assigned at CariBBB+
▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+
OUR UPCOMING WORKSHOPS!
Enterprise Risk Management 26th & 27th June 2019 Jamaica
Benefits of a CariCRIS Rating to a Manufacturing Entity:
Latest Rating Actions by CariCRIS
• Access to an independent assessment of the Company which can lead
to increased efficiencies as a result of improved business operations
• Access to improved terms from suppliers
• Access to improved terms for lines of credit
DATE
WORKSHOP
COUNTRY
Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings
Career Opportunity As we expand our operations through the Caribbean, CariCRIS is
seeking to recruit a high-calibre credit risk professional to join our team
in the following position:
Research & Fixed Income Analyst
Position Summary
Conducts research on the key sectors and industries driving the economies of the Caribbean and
compiles sector studies and industry reports. Also carries out valuation of fixed income securities
using CariCRIS’ proprietary valuation models.
Qualifications & Experience
• First degree in Finance/Economics/Business Management from an accredited University
• Postgraduate qualification/specialization in Finance such as an MBA, or M.Sc. and/or
studying toward the CFA charter would be an asset
• 2-3 years’ professional research experience, preferably in the financial sector
• Good working knowledge of the financial and capital markets of the Caribbean
• Prior experience in the valuation of regional fixed income securities would be an asset
Required Skills
• Strong analytic and critical thinking skills
• Exceptional written, oral, and presentation communication abilities
• Expertise with Microsoft Excel including VBA, PowerPoint and other Office-Related
software
If you are interested in joining the CariCRIS team, please submit a detailed resume and cover
letter by May 31st, 2019 to https://caricris.com/index.php/about/careers.
Tel: 1 868 627-8879 Fax: 1 868 625-8871
Only short-listed applicants will be acknowledged.
CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.
REGIONAL
Trinidad and Tobago
BP payments to Govt more than doubled last year
Though still far below 2013 levels, the country's largest natural gas
producer more than doubled its contribution to the Government coffers
last year to US$360.5 million from US$148.7 million the year before, London-
listed BP plc's Payment to Governments declaration showed last week.
Sagicor adds $0.71
Overall Market activity resulted from trading in 16 securities of which four
advanced, five declined and seven traded firm.
Berger Paints ceases operations in TT
Berger Paints Trinidad (BPTL) has ceased operations in TT. The
announcement was made in statement issued by the Ansa McAl Group,
the company's majority owner. The statement said BPTL and its recognised
majority trade union, the National Union of Government and Federated
Workers Union, signed a memorandum of agreement on May 31 on the
cessation of operations of BTPL.
UTC loses $33 million, first time in five years
The Unit Trust Corporation (UTC) Group made a loss of $33 million in 2018
according to its Executive Director Nigel Edwards. The Corporation is
reporting a TT$293 million decline in total income last year when
compared to 2017.
ANSA McAL pre-tax profits up
There was a five per cent increase in ANSA McAL’s Group Profit Before Tax
(PBT) for 2018 when compared to 2017. PBT increased to $1.017 billion up
from 2017’s $968 million.
Barbados
Waive a hand
Six years after the Cultural Industries Act granted duty-free concessions,
figures in the arts and culture community are to finally receive the
incentives.
Barbados continued
Double-edged sword
While individuals could reap more for providing energy to the national
grid, customers of the utility company could be made to pay more for
electricity in coming months.
24-hour clinics still up in the air
The fate of Government’s planned start of the 24-hour polyclinic service
remained in limbo days after it was due to open, with little sign that nurses’
opposition towards a shift system had softened following a heated two-
and-a-half-hour meeting with the National Union of Public Workers.
Guyana
GuySuCo collected $7B in bond payments but produces little evidence
where money went -$800M in interest paid back by NICIL so far
NICIL’s acting head, Colvin Heath-London, and PwC’s partner, Wilfred
Baghaloo, at the press conference yesterday. Since last year, the Guyana
Sugar Corporation (GuySuCo) has been drawing down on the first
tranche of a $30B (US$150M) bond that was supposed to make the
operations of the three-estate, smaller sized industry more efficient.
Central Bank projects 4.4% growth
THE Bank of Guyana (BoG) has projected that the local economy will
grow by 4.4 per cent this year, due to growth in the major economic
sectors.
The Bahamas
‘Bring Your A Game’ For One-Runway LPIA
A Cabinet minister yesterday said all stakeholders “must be on our ‘A’
game” to cope with Lynden Pindling International Airport’s (LPIA)
imminent reduction to a single runway.
Haiti
BRH announces measures to reduce the pressure on the dollar
Friday, Jean Baden Dubois, the Governor of the Bank of the Republic
(BRH) in a press conference expressed concern about the deterioration of
the national economy in particular by the depreciation of the Gourde
against the US dollar and the inflation which crossed 17.7% in April and
political unrest, believes that these factors among others, contribute to
the degradation of the socio-economic situation has become
unsustainable for the population.
Panama
Panama coffee exports fall as prices decline
The value of Panama coffee exports fell 38.3% to $1.5 million in the first
quarter of 2019 largely due to falling prices.
Anguilla
House Increases Accommodation Tax, Abolishes Tourism Levy
Accommodation Tax, paid by rented accommodation in Anguilla,
including hotels, guesthouses and villas, has now been increased by two
percent. But the Tourism Levy, under which other fees were payable, has
been abolished as a compromise.
Cuba
Cuba legalizes private Wi-Fi networks in bid to boost connectivity
Cuba announced on Wednesday it would legalize private Wi-Fi networks
to access the internet and connect computers, as well as allow imports of
equipment like routers in another step toward expanding connectivity on
the Communist-run island.
The Dominican Republic
Govt. releases US$584.0M from bank reserve for loans
The Monetary Board on Thurs. authorized the release of up to RD$29.2
billion (US$584.0 million) from the bank reserve, to be channelled by the
financial intermediators into loans from the national productive sectors.
The Dominican Republic continued
Fitch rates Dominican Republic’s 2026 peso notes and 2049 USD bonds
‘BB-’
Fitch Ratings has assigned a ‘BB-’ rating to Dominican Republic’s
DOP50.523 billion notes (equivalent to USD1 billion), maturing 2026 and to
the USD1.5 billion bonds maturing 2049.
Dominican Republic issues bond of US$2.5B
The Dominican government on Thurs. announced a bond of US$2.5 billion,
comprised of a 7-year local currency of RD$50.0 billion (US$1.0 billion), and
a 30-year US dollar bond for US$1.0 billion.
‘Solid’ trade: Trinidad & Tobago US$319.9M, Dominican Rep. US$31.3M
Dominican representative before the World Trade Organization (WTO)
Katrina Naut on Tues. labelled trade between her country and Trinidad
and Tobago as solid.
1Q growth plummets from 7.8% to just 2.6%
In the first quarter retail sustained one of the most intense slowdowns of all
Dominican economic sectors, from a 7.8% growth from January to March
to 2018, to just 2.6% this year, Dominican Republic’s Central Bank revealed
Mon.
Venezuela
Canada suspends Venezuela embassy operations, reviewing Maduro
envoys
Canada will suspend operations at its embassy in Venezuela immediately
because its diplomats will no longer be able to obtain visas, the Canadian
foreign minister said on Sunday.
Other Regional
EU launched $28 million regional climate resilient building facility
The European Union (EU) on May 28, launched a 28-million-euro Regional
Climate Resilience Building Facility, the largest grant-funded resilience
building project in the Caribbean to date.
INTERNATIONAL
United States
Stock futures rise after Bullard boosts rate cut hopes
U.S. stock index futures rose on Tuesday after a senior Federal Reserve
official pointed the way to a cut in interest rates in response to slowing
economic growth, helping Wall Street recover from a selloff in technology
stocks a day earlier.
Europe
Euro zone flash inflation at 1.2% in May
Inflation fell to an annual rate of 1.2% in the euro zone in May, according
to a first estimate from the EU’s statistics agency released on Tuesday.
Merkel says trade deal with U.S. of 'existential importance'
German Chancellor Angela Merkel described a future trade agreement
between the European Union and United States as being of existential
importance, saying she would keep trying to make progress despite the
“regrettable” opposition from France.
EU needs to act on steel imports in wake of U.S. tariffs
Steel is being diverted to Europe as a result of U.S. 25% tariffs and the
European Union needs to act, European steel industry chiefs say a letter
sent to EU leaders and EU institutions.
Inflation's decline puts pressure back on ECB
Euro zone inflation fell more than expected last month, adding to worries
about weak price pressure and reinforcing the case for more stimulus by
the European Central Bank.
Tech selloff spreads to European stocks, carmakers up
European shares fell on Tuesday as U.S. antitrust action against Google
and other major technology companies drove peers in the region lower,
although a boost from automakers capped losses.
China
China urges dialogue, negotiation to solve trade row with U.S.
China’s commerce ministry on Tuesday urged dialogue and negotiation
to solve trade differences with the United States.
Japan
SoftBank Group to book 1.2 trillion-yen profit on Alibaba share sale
Japan’s SoftBank Group Corp said on Tuesday it expects to book around
1.2 trillion yen ($11.12 billion) in pre-tax profit on the sale of shares in
China’s Alibaba Group Holding Ltd.
Global
Oil falls to lowest since January on economic slowdown
Oil prices fell on Tuesday to their lowest since January on signs that an
economic slowdown is starting to dent energy demand and as Russia’s
top oil producer said it opposed extending joint cuts with OPEC until the
end of the year.
Dollar drops as rate cut bets mount, weak inflation halts euro's rally
The U.S. dollar weakened to its lowest since mid-April on Tuesday as
investors bet the Federal Reserve could soon cut interest rates, while
concerns about global growth encouraged investors to buy the safe-
haven yen.
Australia cuts rates as global central banks move to head off trade shocks
Australia’s central bank cut rates to a record low on Tuesday and
signalled willingness to go further as a worsening Sino-U.S. trade war raises
recession risks for the world economy, pushing policymakers into what
could be a global monetary easing cycle.
Australia central bank chief says rates could go even lower
Australia’s top central banker said on Tuesday its cash rate could move
further down, only hours after it eased policy to an all-time trough in an
effort to reduce unemployment and stoke inflation.
Oil falls to lowest since January on economic slowdown Tuesday 4th June, 2019 – Reuters
Oil prices fell on Tuesday to their lowest since January on signs that an
economic slowdown is starting to dent energy demand and as Russia’s
top oil producer said it opposed extending joint cuts with OPEC until the
end of the year.
Front-month Brent crude futures were at $60.78 at 1030 GMT, 50 cents, or
0.85%, below the last session’s close. Brent fell as low as $60.2 per barrel
earlier, the lowest level since January 2019.
U.S. West Texas Intermediate (WTI) crude futures were at $52.80 per barrel,
down 45 cents, or 0.85%, from their last settlement.
Oil futures are around 20% below 2019 peaks reached in late April, with
May posting the sharpest monthly declines since November.
Other energy prices, like coal and gas, are also being hit hard by the
economic downturn.
Financial traders sold off energy markets amid growing concerns about
the outlook for the world economy amid the trade war between the
United States and China.
“The prolonged trade war has sparked fears of a global economic
slowdown as well as weaker oil demand,” tanker brokerage Eastport said
on Tuesday.
“Slowing economic activity now threatens to derail our base case of
robust cyclical (oil) demand growth,” Bank of America Merrill Lynch said in
a note.
To prevent oversupply and prop up the market, the Middle East
dominated producer club of the Organization of the Petroleum Exporting
Countries (OPEC), together with some allies including Russia, has been
withholding supply since the start of the year to prop up the market.
The group plans to decide later this month or in early July whether to
continue withholding supply.
Saudi Energy Minister Khalid al-Falih said on Monday a consensus was
emerging among producers to continue working “to sustain market
stability” in the second half of the year.
Russia has so far signalled it would also support a joint policy with OPEC.
But the head of Russia’s top state producer Rosneft, Igor Sechin, said on
Tuesday Russia should pump at will and he would seek compensation
from the government if cuts were extended.
Producers are concerned that the economic slowdown will reduce fuel
consumption.
Further pressuring oil prices and undermining OPEC’s efforts to tighten the
market has been surging U.S. output, which has made America the
world’s biggest crude producer, at 12.3 million barrels per day (bpd) at
the end of May, versus 11.11 million bpd produced in Russia and 9.65
million bpd pumped out of the ground in Saudi Arabia.
With U.S. production surging, more of its oil is being exported.
<< Back to news headlines >>
Dollar drops as rate cut bets mount, weak inflation halts euro's rally Tuesday 4th June, 2019 – Reuters
The U.S. dollar weakened to its lowest since mid-April on Tuesday as
investors bet the Federal Reserve could soon cut interest rates, while
concerns about global growth encouraged investors to buy the safe-
haven yen.
The euro rose on the back of dollar weakness but lower-than-expected
euro zone inflation in May brought the single currency’s rally to a halt.
The benchmark 10-year U.S. Treasury yield fell to its lowest since
September 2017 overnight after St. Louis Federal Reserve President James
Bullard said a rate cut “may be warranted soon” given weak U.S. inflation
and the threat global trade tensions pose to economic growth.
The Japanese yen has been the main beneficiary from a shift towards
assets investors deem safer. It rose as much as 0.2% to 107.84 yen per
dollar, its strongest since Jan. 10.
The dollar index, which measures the greenback against a basket of
currencies, slipped to 96.995, its weakest since April 18, before recovering
as the euro reversed its gains.
“As long as it (the dollar) is at the centre of the trade conflict, U.S. yields
fall due to concerns about real economic effects and the market is
literally calling out for rate cuts, there are no positive arguments
supporting the dollar,” Commerzbank analyst Antje Praefcke said.
Other strategists are less bearish on the dollar, arguing that rate cuts have
already been priced in and noting that if global growth does worsen, the
dollar should benefit from its safe-haven credentials.
The euro pulled back from six-week highs after weaker than expected
flash consumer price inflation for the month of May but was still 0.1% firmer
at $1.1247 by 1030 GMT.
The European Central Bank meets on Thursday, where investors will look to
see how concerned policymakers are about signs of a downturn in
growth.
Some analysts remain cautious on the euro, seeing its fortunes largely tied
to the outlook for rate cuts by the Fed, which has more space for
monetary easing than the ECB does.
“We still see the policy background in the euro zone leaving the euro as
the anti-dollar,” said Adam Cole, currency strategist at RBC Capital
Markets, predicting euro/dollar could fall to $1.10 before finishing the year
at $1.14 - still firmly within its current trading range.
The Australian dollar was little changed, at $0.6977, after the Reserve Bank
of Australia cut interest rates to a record low of 1.25%, as expected.
The pound rose 0.1% to $1.2673, up from a five-month low of $1.2560 set
on Friday. However, it slid to a 20-week low against the euro.
Sterling has fallen on the prospect of a Eurosceptic prime minister
replacing Theresa May who could push for a more decisive break from
the European Union, Britain’s largest trading partner.
<< Back to news headlines >>
Australia cuts rates as global central banks move to head off trade shocks Tuesday 4th June, 2019 – Reuters
Australia’s central bank cut rates to a record low on Tuesday and
signalled willingness to go further as a worsening Sino-U.S. trade war raises
recession risks for the world economy, pushing policymakers into what
could be a global monetary easing cycle.
The Reserve Bank of Australia (RBA) lowered rates by a quarter of a
percentage point to 1.25%, the first easing in nearly three years. The move
comes a day before first-quarter data is expected to show the A$1.9
trillion ($1.33 trillion) economy hitting its weakest annual growth in a
decade.
RBA Governor Philip Lowe said the rate cut was designed to support
employment growth and lift inflation, which has consistently undershot its
2%-to-3% medium-term target.
And more might be needed. Financial markets see a 50-50 chance of
another move to 1.00% next month. Some are also predicting a third cut
before the end of the year.
In a speech in Sydney titled ‘Today’s Reduction In The Cash Rate’, Lowe
said it was “not unreasonable to expect a lower cash rate.”
“It is possible that the current policy settings will be enough – that we just
need to be patient. But it is also possible that the current policy settings will
leave us short,” he added.
“Given this, the possibility of lower interest rates remains on the table.”
He also noted increasing downside risks for the global economy stemming
from trade disputes.
“Growth in international trade remains weak and the increased
uncertainty is affecting investment intentions in a number of countries,” he
added.
The Australian dollar gained after the rate decision, which was fully priced
in by the market. The Aussie was last up 0.1% at $0.6984 as investors were
wagering on larger reductions in U.S. rates over the next year or so.
Australia’s rate cut is the latest in a swing by central banks around the
world toward looser monetary policies as the intensifying Sino-U.S. trade
war threatens global economic prospects.
“We would concede that, given global trade developments over the past
week and the rising possibility of Fed rate cuts, the risk currently appears to
be for more than two rate cuts,” Nomura strategist Andrew Ticehurst said
of the RBA.
Last month, New Zealand’s central bank cut its benchmark interest rate
for the first time in two-and-a-half years in a bid to support a cooling
economy and counter global uncertainties.
South Korea’s central bank last week kept its policy settings unchanged
but adopted a more accommodative tone while India is expected to cut
rates at its policy meeting on Thursday.
THANK YOU, NEXT
Australia has not reported a recession since the early 1990s but is now
battling falling home prices, rising unemployment, sluggish consumer
spending and lukewarm inflation.
Underlining these pressures, data released earlier in the day showed
retailers began the second quarter of the year on a gloomy note with
April sales falling.
Household consumption has been a major source of worry for the RBA as
miserly wage growth and falling home prices eat into spending power in a
sector that accounts for 56% of the economy.
In a boost to borrowers, Commonwealth Bank of Australia and National
Australia Bank passed on the RBA cut in full.
ANZ Banking Group lowered its mortgage rates only by 18 basis points
while Westpac announced 20 basis point cut for owner occupiers and a
fatter 35 basis point reduction for investors with interest-only payments.
“A timely boost for households facing cost-of-living pressures,” Treasurer
Josh Frydenberg said of the RBA move.
“The benefits to the economy from this rate cut will not be insignificant but
it is important that the banks hear the message from the Australian people
that they should pass on the benefits of these rate cuts to their
customers.”
Earlier, Frydenberg urged the heads of major banks to pass on the rate
cut in full.
Lowe reiterated on Tuesday that monetary policy alone will not be
enough to boost economic momentum as households were already up to
their eyeballs in debt, putting the onus on the newly re-elected coalition
government to do its part.
“As a country, we should also be looking at other options to reduce
unemployment,” he said. “One option is for fiscal support, including
through spending on infrastructure,” he said.
<< Back to news headlines >>
Australia central bank chief says rates could go even lower Tuesday 4th June, 2019 – Reuters
Australia’s top central banker said on Tuesday its cash rate could move
further down, only hours after it eased policy to an all-time trough in an
effort to reduce unemployment and stoke inflation.
Reserve Bank of Australia (RBA) Governor Philip Lowe also highlighted the
need for fiscal stimulus to help boost jobs and growth.
The RBA lowered the cash rate for the first time in nearly three years to
1.25% ahead of first-quarter data due Wednesday which is likely to show
the A$1.9 trillion ($1.33 trillion) economy hit its weakest annual growth in a
decade.
Commenting on the prospects for further policy easing in a speech in
Sydney, Lowe said it’s not “unreasonable to expect a lower cash rate.”
“It is possible that the current policy settings will be enough – that we just
need to be patient. But it is also possible that the current policy settings will
leave us short,” he added.
“Given this, the possibility of lower interest rates remains on the table.”
Two of Australia’s four major banks - Commonwealth Bank of Australia
and National Australia Bank - immediately announced they would fully
pass on the cut to their customers from later this month.
ANZ Banking Group said it would lower variable mortgage rates by only 18
basis points. Westpac was yet to make a decision.
Lowe took the unusual step of openly urging Australia’s banks to pass on
the RBA cut in full, citing a recent reduction in their funding costs.
However, he said there were “certain downsides” from relying just on
monetary policy to stimulate the economy, calling on the government to
do its part.
“As a country, we should also be looking at other options to reduce
unemployment,” he said.
“One option is for fiscal support, including through spending on
infrastructure,” Lowe said.
“Another option is structural policies that support firms expanding,
investing, innovating and employing people.”
<< Back to news headlines >>
China urges dialogue, negotiation to solve trade row with U.S. Tuesday 4th June, 2019 – Reuters
China’s commerce ministry on Tuesday urged dialogue and negotiation
to solve trade differences with the United States.
It is common to make revisions, suggestions and adjustments in trade
negotiations, it said in a statement in response to U.S. government
comments that China was pursuing a “blame game”.
<< Back to news headlines >>
Stock futures rise after Bullard boosts rate cut hopes Tuesday 4th June, 2019 – Reuters
U.S. stock index futures rose on Tuesday after a senior Federal Reserve
official pointed the way to a cut in interest rates in response to slowing
economic growth, helping Wall Street recover from a selloff in technology
stocks a day earlier.
St. Louis Fed President James Bullard said late on Monday that a rate cut
“may be warranted soon”, driving Fed funds futures to price in a 67%
chance the central bank would reduce key short-term borrowing costs at
its July 30-31 policy meeting.
That would provide a fillip to the Wall Street, whose three main indexes
have shed at least 6% in May after a sudden flare up in trade tensions and
Washington’s threat to slap tariffs on Mexican goods.
“We are looking for circuit breakers to put an end to a slide in sentiment in
the United States. A significant dovish move in central banks or a
resolution in trade could be the big circuit breakers,” said Florian Hense,
European economist at Berenberg.
Investors will be paying close attention to Fed Chairman Jerome Powell’s
speech before a monetary policy conference in Chicago later in the day
for his economic outlook.
High-profile technology companies Amazon.com, Apple Inc, Facebook
Inc and Google-parent Alphabet Inc were up marginally in premarket
trading after tumbling a day earlier on fears of being the targets of U.S.
government antitrust regulators.
The Nasdaq has lost 10.2% since its May 3 all-time high, confirming a
correction territory, while the S&P 500 is 7.6% away from its record high hit
on May 1.
At 7:16 a.m. ET, Dow e-minis were up 106 points, or 0.43%. S&P 500 e-minis
were up 10.75 points, or 0.39% and Nasdaq 100 e-minis were up 25.5
points, or 0.36%.
Among other movers, Ventas Inc fell 2.5% after it agreed to buy a portfolio
of Canadian Seniors Housing communities in partnership with Le Groupe
Maurice in a deal valued at $1.8 billion.
Data at 10:00 a.m. ET is expected to show U.S. factory orders fell 0.9% in
May compared to 1.9% rise the month before.
<< Back to news headlines >>
Euro zone flash inflation at 1.2% in May Tuesday 4th June, 2019 – Reuters
Inflation fell to an annual rate of 1.2% in the euro zone in May, according
to a first estimate from the EU’s statistics agency released on Tuesday.
The inflation figure was below expectations. Economists polled by Reuters
had expected a May estimate of 1.3%.
Eurostat’s flash estimate for the month does not include a monthly
calculation.
<< Back to news headlines >>
Merkel says trade deal with U.S. of 'existential importance' Tuesday 4th June, 2019 – Reuters
German Chancellor Angela Merkel described a future trade agreement
between the European Union and United States as being of existential
importance, saying she would keep trying to make progress despite the
“regrettable” opposition from France.
“We have a mandate for talks with the United States and I think it is of
existential importance,” Merkel told the BDI industry association.
“It is regrettable that France voted against this mandate but perhaps we
have some work to do on convincing people,” she said, adding she
wanted to pursue talks to achieve sensible solutions that would avoid a
difficult phase for the world economy.
<< Back to news headlines >>
EU needs to act on steel imports in wake of U.S. tariffs Tuesday 4th June, 2019 – Reuters
Steel is being diverted to Europe as a result of U.S. 25% tariffs and the
European Union needs to act, European steel industry chiefs say a letter
sent to EU leaders and EU institutions.
There has been a sudden downturn in the European steel industry’s
prospects, underpinned by long-term trends, 45 chief executives
representing around 90% of the EU’s steel output said in the letter.
“Global overcapacity in steel and the use of the EU market as a dumping
ground for the world’s excess capacity are at the root of the problem,”
they said in the letter sent on Monday and seen by Reuters.
Steel imports into the EU have more than doubled since 2013 while
demand had increased only marginally and is seen falling in 2019, they
said.
The European Commission is currently reviewing its “safeguard” measures
designed to limit incoming steel and prevent a surge of imports as a result
of Washington’s 25% import tariffs, which have effectively closed the U.S.
market.
These safeguard measures should be tightened, the steel chiefs said.
Currently quotas are set at the average level of imports in 2015-2017 plus
5%, with further 5% hikes envisaged on July 1 and a year later. Beyond
these quotas, 25% tariffs apply.
The steel bosses urged EU countries, the European Parliament and the
European Commission to convene an emergency meeting with the
industry to discuss solutions.
The signatories include the chiefs and regional chiefs of steel and stainless-
steel producers ArcelorMittal, ThyssenKrupp, Tata Steel and Acerinox.
ArcelorMittal, the world’s largest steelmaker, announced production cuts
twice in May, while British Steel collapsed into liquidation.
<< Back to news headlines >>
Inflation's decline puts pressure back on ECB Tuesday 4th June, 2019 – Reuters
Euro zone inflation fell more than expected last month, adding to worries
about weak price pressure and reinforcing the case for more stimulus by
the European Central Bank.
With growth slowing as a global trade war heats up, major central banks
appear to have given up plans to tighten policy and investors now expect
them to provide even more stimulus.
Inflation in the 19 countries sharing the euro fell to 1.2% in May from 1.7% in
April, below expectations of 1.3% and more than reversing a one-off surge
related to the timing of Easter.
In a more worrisome sign, the ECB’s preferred measure, underlying
inflation — excluding volatile food and energy prices — fell to 1.0% from
1.4% a month earlier, indicating that a long-projected pick-up has still not
begun.
With the data suggesting more ECB support may be coming, bond yields
dropped further on Tuesday, moving toward record or multi-year lows.
The 10-year Germany bond fell to minus 0.21%, within sight of Monday’s
record low. The 30-year French bond fell about four basis points to 1.19%,
its lowest since late 2016.
Bank shares rose, partly on expectations the ECB would need to give the
euro zone economy a boost and provide banks with cheap funding.
The ECB targets inflation at just below 2%, but it has undershot that since
2013, raising fears that such a persistent miss could permanently lower
inflation expectations, making weak price growth self-perpetuating.
Minutes of the ECB’s last meeting showed growing concern about
weakening inflation expectations, which raises pressure on policymakers
to provide further stimulus.
But the bank has already exhausted much of its firepower. Although it has
plenty of tools left, they lack the potency of earlier measures, such as
massive asset purchases or rapid rate cuts.
The ECB’s next move, expected at Thursday’s meeting, will be to provide
banks with new longer-term refinancing operations or TLTROs, — loans at
super low, probably negative interest rates.
“Today’s drop in core inflation ... will only add to the case for a dovish
outcome while our measures of inflation expectations continue to drift
lower,” Pictet Wealth Management strategist Frederik Ducrozet said. “We
expect TLTRO to be priced at a negative rate of -0.20%, or lower.”
Lending data suggests the availability of funding is not an issue for now,
but the weak inflation reading and slowing growth are likely to persuade
policymakers to price the loans under generous terms.
But the ECB may hold off on other easing measures for now. Growth is
holding up, wages are rising, credit growth remains robust and
unemployment reached a 10-year-low of 7.6% in April.
Still, more support may be needed before summer is over. A trade war is
sapping confidence, Italy is again quarrelling with the European
Commission, German industry continues to post dismal figures, stocks are
tumbling and the threat of a hard Brexit looms.
Markets have already pushed out expectations for a rate increase into
2021 and some are even pricing in a rate cut. That move is still unlikely,
since the ECB’s key rate is already at a record low of minus 0.4%
To maintain credibility, the ECB’s next move then may be to adjust its
forward guidance and formally delay any rate increase. It now foresees
steady rates until next year.
<< Back to news headlines >>
Tech selloff spreads to European stocks, carmakers up Tuesday 4th June, 2019 – Reuters
European shares fell on Tuesday as U.S. antitrust action against Google
and other major technology companies drove peers in the region lower,
although a boost from automakers capped losses.
Europe’s main STOXX 600 was down 0.3% by 0825 GMT tracking losses on
Wall Street and Asian markets overnight, with the technology sector losing
1.6%.
New York’s tech-heavy Nasdaq entered correction territory on Monday as
Amazon and Alphabet’s Google were the first to face an antitrust probe
from regulators, with sources saying Apple and Facebook may follow.
“The United States is starting to cause more red tape on tech companies.
This will affect all companies that do business with tech, and that will
cause a ripple effect in Europe,” said Florian Hense, European economist
at Berenberg.
Global stock markets have succumbed to selling pressure in recent weeks,
with the benchmark STOXX 600 posting its worst monthly performance in
over three years in May.
Weak economic numbers worldwide have pointed to slowing growth and
the risk of recession ahead as a trade war between the United States and
China escalates.
“As the U.S. president is ratcheting up trade tensions, he is using tariffs to
pursue non-economic goals which is worrisome and highlights the risk of a
solution being very far away,” said Hense.
There was a hint of the risks for the fund management community if a
decade-long stocks rally is drawing to a close in the suspension by high-
profile fund manager Neil Woodford of his Woodford Equity Income Fund.
Fund supermarket Hargreaves Lansdown, which includes the Woodford
fund in six of its Multi-Manager investment packages, fell more than 5% in
response, making it the top faller on London’s FTSE 100.
A 1.6% jump in auto stocks helped Germany’s DAX up 0.2% and Italy’s FTSE
MIB rise 0.9% after better-than-expected sales numbers from the U.S.
market on Monday.
Brokerage RBC also started coverage on Germany’s Daimler and
Volkswagen with “outperform” ratings, sending their shares up nearly 2.5%
each.
Italian banks rose 1.8%, with traders citing conciliatory remarks from Italian
Prime Minister Giuseppe Conte on respect of EU rules. The pan-European
banking index was up 0.8%.
The ECB holds its next policy meeting on Thursday and is expected to
keep settings unchanged though there is growing speculation it could
shift to a more dovish footing. Comments from the Federal Reserve on
Monday raised expectations the U.S. central bank is moving closer to a
rate cut.
<< Back to news headlines >>
SoftBank Group to book 1.2 trillion yen profit on Alibaba share sale Tuesday 4th June, 2019 – Reuters
Japan’s SoftBank Group Corp said on Tuesday it expects to book around
1.2 trillion yen ($11.12 billion) in pre-tax profit on the sale of shares in
China’s Alibaba Group Holding Ltd.
The sale dates from 2016 when SoftBank sold part of its Alibaba stake via
derivatives to fund its acquisition of British chip designer ARM.
The transaction leaves SoftBank with a 26% stake in Alibaba worth $101
billion. The Japanese investment firm said it would book the profit in the
financial quarter ending June.
SoftBank Group founder and Chief Executive Masayoshi Son bought into
Alibaba for just $20 million in 2000. The Chinese startup’s growth into one
of the world’s biggest e-commerce companies has helped burnish Son’s
tech investor credentials.
The windfall comes as one of Son’s biggest tech bets, Uber Technologies
Inc, has shown lacklustre stock market performance since its market debut
last month.
SoftBank booked a 418-billion-yen gain on its Uber stake in the financial
quarter ended March ahead of the debut. On Monday, Uber’s shares
closed 9% below their IPO price at $41.
Son has referred to the value of the Alibaba stake to argue that SoftBank
Group’s shares are undervalued. Following the end of a 600-billion-yen
stock-buyback program and Uber’s disappointing listing, the shares have
fallen 23% from their April high.
SoftBank Group shares closed down 3% on Tuesday ahead of the Alibaba
sale announcement, giving the conglomerate a market capitalization of
10.2 trillion yen.
New York-listed Alibaba is considering a follow-on share sale in Hong Kong
to raise as much as $20 billion to boost its investment war chest, people
familiar with the matter told Reuters last week.
<< Back to news headlines >>
EU launched $28 million regional climate resilient building facility Tuesday 4th June, 2019 – Reuters
The European Union (EU) on May 28, launched a 28-million-euro Regional
Climate Resilience Building Facility, the largest grant-funded resilience
building project in the Caribbean to date.
Implemented by the World Bank and the Caribbean Catastrophe Risk
Insurance Facility, this will provide financial resources for technical
assistance, disaster insurance and resilient investment facilitation.
The announcement was made at the ongoing Understanding Risk
conference in Barbados by EU ambassador, Daniela Tramacere: “What
we want from this programme is to address real needs. For this,
governments and partner entities will have to define clear priorities,
without which a targeted implementation is not possible.”
The EU diplomat said the action should have as its ultimate objective, the
genuine interest of Caribbean citizens translated in terms of resilience
building at community and individual levels.
The technical assistance aims to strengthen the capacity of public
institutions and civil society organisations which are capable of protecting
citizens from disasters. The support to the Caribbean Catastrophe Risk
Insurance Facility will help countries cope and recover better from the
effects of extreme weather events.
“The support to resilient investment will stimulate the private sector to
better adapt businesses and jobs to the priority needs of countries and
citizens,” she added.
The Regional Resilience Building Facility is one of the many resilience
programmes being financed by the EU in the Caribbean, providing
additional support for countries to build societal resilience by encouraging
the transition to green economies and progress towards a sustainable
economic path.
The EU is also partnering with regional governments and institutions on
climate adaptation and ecosystem resilience and hydrological
meteorological data gathering.
<< Back to news headlines >>
GuySuCo collected $7B in bond payments but produces little evidence
where money went -$800M in interest paid back by NICIL so far Tuesday 4th June, 2019 – Kaieteur News
NICIL’s acting head, Colvin Heath-London, and PwC’s partner, Wilfred
Baghaloo, at the press conference yesterday. Since last year, the Guyana
Sugar Corporation (GuySuCo) has been drawing down on the first
tranche of a $30B (US$150M) bond that was supposed to make the
operations of the three-estate, smaller sized industry more efficient.
However, almost a year later since that bond was approved, the
disbursement process is troubled with no clear ideas what GuySuCo used
the money for.
It has collected more than $7B since August and has a request for another
$1B pending.
But according to the state-owned National Industrial and Commercial
Investments Limited (NICIL) which had helped put together the bond,
GuySuCo has not been holding up its end of the bargain in submitting
details how the money it collected were spent.
In fact, while it is known that a significant portion was used to pay salaries
and wages of estimated 10,000 workers, the bond holders and trustees
have been asking how the money were used by GuySuCo.
The situation may very well put NICIL on the back foot with the financiers
of the bond which include a number of banks and insurance companies.
A number of them have written NICIL to express worry about what the
cash-strapped GuySuCo is doing with the money.
Yesterday, NICIL’s acting chief, Colvin Heath-London, during a press
conference at his Camp Street office, was under pressure to explain the
bond.
NICIL had been criticized by the Ministry of Agriculture, which has
responsibilities for GuySuCo, for the seeming sloth in the disbursements of
the funds.
The three estates remaining under GuySuCo are Albion, Blairmont and
Uitvlugt.
According to the official, NICIL and its Special Purpose Unit (SPU) arm,
approached the financial market for financing of a bond last year.
In the first of its kind, and the largest, NICIL/SPU managed to raise $30B.
Since last year, over $7B was paid over to GuySuCo to finance long term
capital projects, including the acquisition of two co-generation plants;
upgrading of existing factories; the production of Plantation White Sugar;
the construction of storage and packaging facilities and the contribution
of two years of general operation costs.
According to Heath-London, if there is any default on the bond
payments, it is not GuySuCo’s assets that can be seized.
Rather, it is NICIL’s assets that will suffer.
In fact, several state-owned companies which are managed by NICIL
have their assets pledged. These include the Guyana Oil Company, the
Guyana National Shipping Corporation, the Guyana National Printers
Limited and even facilities of the Guyana National Industrial Company.
NICIL has about a dozen other state companies under its remit, including
Atlantic Hotel Inc., which owns Marriott.
Health-London admitted that the bond holders and trustees are not
happy with the lack of information from GuySuCo.
He said if the situation continues, it will push NICIL and the Government of
Guyana into default.
The situation will have implications on future financing with the
international funding agencies likely paying attention.
<< Back to news headlines >>
Central Bank projects 4.4% growth Tuesday 4th June, 2019 – Guyana Chronicle
THE Bank of Guyana (BoG) has projected that the local economy will
grow by 4.4 per cent this year, due to growth in the major economic
sectors.
The bank, in its fifty-fourth annual report, noted that the agriculture sector
is expected to increase by 3.2 per cent, due to the increases in
production of rice by 3.4 per cent, the output of sugar by 3.2 per cent and
other crops by 4.0 per cent.
According to BoG, the mining and quarrying sector is forecast to expand
by 3.4 per cent due to increases in the production of bauxite by 10.0 per
cent and gold by 1.7 per cent.
In addition, the services industry is estimated to grow by 3.7 per cent on
account of higher outturns of wholesale and retail trade by 5.0 per cent
and transportation and storage activities by 3.5 per cent.
The construction and manufacturing industries are projected to increase
by 10.5 per cent and 3.8 per cent respectively. Despite the many positive
growth, the inflation rate is forecasted at 2.5 per cent because of
moderate increases in food and fuel prices. The BoG’s Financial Stability
Committee is, however continuously assessing a number of risk indicators
pertinent to the financial and economic systems.
“The technicalities are mainly maneuvered through its financial stability
frameworks to ceaselessly help build financial system resilience,” said the
BoG. The bank had received support from the World Bank to the tune of
US$6 million to modernise Guyana’s Payment System infrastructure. Part of
the improvements entailed implementing a new Payments System Act
with supporting regulations and modernisation of the Payment System
infrastructure. The latter included the implementation of Real Time Gross
Settlement (RTGS) and Central Securities Depository (CSD) systems.
The modernisation efforts from paper-based instruments to electronic
payments will result in significant cost savings and efficiency
improvements while reducing operational, credit, legal, liquidity
investment and custody risks. As Guyana continues to grow despite the
odds, global growth in 2019 is projected to decline to 3.5 per cent, partly
because of the negative effects of tariff increases enacted in the US and
China. Additionally, economic expansion in emerging markets and
developing economies is expected to hold steadfast in 2019 at 4.5 per
cent.
Latin America and the Caribbean are expecting growth of 2.0 per cent in
2019. The recovery in the region will be supported by improved demand
from external trading partners and accommodative financial conditions
on account of a less volatile international financial market and resilient
capital inflows.
Meanwhile, Guyana’s economic growth rate was stronger at 4.1 per cent
for 2018 when compared to the 2.1 per cent growth in 2017. This outturn
was on account of higher production of bauxite, livestock, forestry and
other crops as well as increases in construction, manufacturing and
service activities. Favourable commodity prices, greater investment
expenditure and moderate domestic demand were major factors
influencing growth. However, the output of sugar, rice, gold and fishing
declined, reflecting poor weather and road conditions as well as lower
domestic demand from regulatory requirements.
<< Back to news headlines >>
‘Bring Your A Game’ For One-Runway LPIA Monday 3rd June, 2019 – Tribune 242
A Cabinet minister yesterday said all stakeholders “must be on our ‘A’
game” to cope with Lynden Pindling International Airport’s (LPIA)
imminent reduction to a single runway.
Dionisio D’Aguilar, pictured, minister of tourism and aviation, told Tribune
Business that the closure of Runway 09/27 for major rehabilitation from
June 17 (see other article on Page 2B) was an “unavoidable necessary
infrastructure upgrade” that is essential to keep traffic at The Bahamas’
major gateway flowing.
He added that non-commercial aircraft, meaning private planes, will be
“encouraged” to shift their hours of operation to non-peak times such as
between 12-3pm to minimise congestion with flights that bring the bulk of
The Bahamas’ high-yield stopover visitors.
However, indicating that delays for both departing and incoming flights
will likely be unavoidable this summer, Mr D’Aguilar advised Bahamians
and residents to allow more than an extra hour to their itineraries if they
had to catch connecting flights in the US and elsewhere.
LPIA will operate with a single runway for four to six months due to the
near-$20m upgrade, which will resurface Runway 09/27 and extend its life
as well as adding safety areas to the end of the runway to reduce
damage to aircraft that overshoot.
Voicing optimism that no major disruption to The Bahamas’ stopover
tourism industry will result as the sector moves into the off-peak summer
and fall months, Mr D’Aguilar conceded: “We really have to be on our ‘A’
game to make this work.
“Everybody is appraised on what the issues are, and everybody is ready.
All the stakeholders got in with the plan, everybody was in the room - NAD
(Nassau Airport Development Company) was involved, and air traffic
control. The main runway, 1432, has to be kept moving and active,
especially in critical parts of the day.”
To achieve this, Mr D’Aguilar said non-commercial flights and private pilots
may have to alter their operations for the next four to six months until the
overhaul of Runway 09/27 (soon to named be Runway 10/28) and
Taxiway India are completed in time for the Thanksgiving holiday in
November.
“We’re going to encourage all non-commercial aircraft to shift their
operations to non-critical parts of the day,” he explained. “We have
contingency plans in place. If aircraft break down on the runway, we will
immediately tow them off right away.
“What I suggest people do, if they’re booking their summer plans, is to
allow extra time - not for check-in, but for connections. An hour will not be
enough. Allow some extra time, especially if planes are leaving during
peak times, which only applies at the weekend.”
Mr D’Aguilar added that Runway 09/27 was “desperately in need of a
new surface and extra taxiway”. Once both those improvements were
completed, he revealed that work will begin to install a new taxiway that
better connects LPIA’s main runway with Odyssey Aviation’s fixed base of
operations (FBO) for private planes and their clients.
This will make private aircraft movements “far more efficient”, Mr D’Aguilar
added, with planes spending less time on the main runway. “They
currently have to get off the runway, taxi down the runway and cross the
runway again,” he explained.
“It’s fairly inefficient to get to and from Odyssey. They will assist us with that
infrastructure upgrade. That will allow for greater use of the main runway
as opposed to spending so much time on the runway. Less time on the
runway allows for greater use of the runway.”
Not everyone is convinced. Captain Randy Butler, Sky Bahamas president
and chief executive, told Tribune Business it was “crazy for them to go for
the busiest time of year” and that there was likely to be a “huge impact”
for the tourism industry - especially given the delays that are occurring
now.
“Unless I missed something, it doesn’t appear to be a well thought-out
plan,” he said. “You say something like this is happening on June 17, and
you have as much traffic into that airport and challenges you are having
now.
“A lot of businesses are going to be challenged. Your international airlines
are going to cut back or prepare to inconvenience their passengers.
Using both runways on a normal weekend, you can’t get a timely
departure....
“What’s happening now is crazy. For them to go for the busiest time of this
year, and say they are going to close Runway 09/27 is going to have a
huge impact. You can hear the minister bragging about air arrivals are
up, and most of your visitors coming in are coming in by air. You’ve just
opened a new property like Baha Mar and I’m sure it’s going to have an
effect on them.”
Captain Butler told Tribune Business that the first time he had heard about
the Runway 09/27 closure plan was Friday, although Tribune Business
understands that NAD has been talking to airport users about its intentions
for at least a year and a meeting with stakeholders was held on April 11.
Another is scheduled for today.
Vernice Walkine, NAD’s president and chief executive, said in a statement
that runway rehabilitation is scheduled maintenance that must be done
to ensure LPIA continues as a safe and efficient airport and meets all
international safety standards.
“We understand the importance of the upgrades and are now in a
position to invest the necessary capital to undertake the project at this
time,” she explained. “There was no perfect time to do these necessary
works, so we will have to manage the project with the goal of minimising
disruption to ongoing operations.
“We are working with key airport partners on contingency plans to
manage the flow of air traffic and to ensure the usability of the airport’s
sole runway during the rehabilitation process.”
The project will begin during one of LPIA’s many peak travel periods but,
based on the projected timeline, NAD anticipates that the runway
rehabilitation will be in full gear during the slower period of September
and October. The airport operator is aiming to complete the works before
Thanksgiving.
Ms Walkine said: “We would like the public to note that it is not
uncommon for airports of our size and in this region to operate using a
single runway. Barbados, Trinidad, St Lucia and St Maarten all operate
using one runway.
“During this period, we are asking the travelling public to exercise
patience when arriving or departing from LPIA, as there will likely be
delays resulting from the runway rehabilitation project.”
<< Back to news headlines >>
BRH announces measures to reduce the pressure on the dollar Monday 3rd June, 2019 – Haiti Libre
Friday, Jean Baden Dubois, the Governor of the Bank of the Republic
(BRH) in a press conference expressed concern about the deterioration of
the national economy in particular by the depreciation of the Gourde
against the US dollar and the inflation which crossed 17.7% in April and
political unrest, believes that these factors among others, contribute to
the degradation of the socio-economic situation has become
unsustainable for the population.
To remedy the fall of the Gourdes (93.87 gourdes for 1 US dollar) Governor
Dubois announces a series of administrative and regulatory measures,
direct monetary policy measures and incentives to stabilize the exchange
rate on the market local.
Governor Dubois announces interest rate adjustment for BRH bonds: 91-
day bonds will increase from 12% to 22%, 28-day bills from 8 to 14% and 7-
day bills from 6 to 10%, a measure which according to the boss of the BRH
will have positive spin-offs for the clients of the commercial banks. For
young entrepreneurs and the productive sectors, the BRH intends to
facilitate their credit and makes it one of its priorities.
Regarding the pressure on the US dollar and its scarcity and in order to
stabilize the exchange rate and fight against speculation, he announced
an injection of 150 million US dollars on the foreign exchange market by
September 2019, including 25 million on June 4 and 15 million on June 6,
2019 combined with coercive measures (with sanctions) to avoid the slide
of the exchange rate of the market formal market.
For commercial banks, the BRH offers them incentives such as the
exemption from minimum reserves and term deposits in Gourdes with a
base interest rate of 7% or more per annum.
However, Governor Dubois fears that the socio-political situation is further
deteriorating and hindering the achievement of the objectives of these
measures, he also calls on political actors to compromise to find a
consensual solution to the crisis and to promote macroeconomic stability
essential for economic growth in Haiti...
<< Back to news headlines >>
Panama coffee exports fall as prices decline Monday 3rd June, 2019 – Newsroom Panama
The value of Panama coffee exports fell 38.3% to $1.5 million in the first
quarter of 2019 largely due to falling prices.
Between January and March of 2019, 222,000 kilograms of coffee were
exported, 22.7% less than t in the same period last year, according to
figures from the Comptroller General
"Panama is ahead in the global coffee positioning race, but let's
recognize that there are already other countries that are strongly
developing geisha coffee," said Gerardo Escudero Inter-American
Institute for Cooperation on Agriculture (IICA)
The decrease in exports is due to a drop in the prices paid for a quintal of
coffee in the international market. Since last November, the price of a
quintal of rubiacea in international markets is lower than the value paid in
Panama, so local coffee growers have preferred to market their coffee in
the country, said Alexis Bonilla, in charge of the Ministry's Coffee Program
of Agricultural Development (MIDA).
The price of a quintal of coffee in the New York Stock Exchange,
reference price for grains in the region, has oscillated since November
2018 between $87.60 and $100 . While in Panama the roasters buy a
quintal of Arabica coffee at$ 120 and some between $160 and $200.
Escudero, said that the fall in the international price of coffee is a
situation that is affecting all producers in the region, Panama's coffee
offer is low compared to the region, but it has very special grains, such as
the geisha, which is quoted at very high prices.
In the latest electronic auction, The Best of Panama, the Taiwanese Black
Gold Coffee Co. acquired one pound of natural geisha coffee, Elida
Geisha Green Natural Tip, produced by the Lamastus family the record
price of $ 803.
The production of specialty coffees accounts for 20% of the grain
production in the country, however, this production in the hands of small
coffee farmers who also receives better prices than the one paid in
international markets, explains Escudero.
Today, Panama is known much more for the quality of its coffee, than for
the Canal. However, there is an urgent need to improve the cultivation
methods of the majority of small producers in the country.
Panama is not alone in the cultivation of the geisha Africa and Central
American countries are already growing geisha coffee, warns the
representative of IICA.
It is essential that small coffee farmers provide greater added value to the
grain. The quality of coffee is largely developed in the phase of profit,
drying, and roasting. Only then can they be more competitive and obtain
greater profitability in international markets, recommends Escudero.
<< Back to news headlines >>
BP payments to Govt more than doubled last year Tuesday 4th June, 2019 – Trinidad Express Newspaper
Though still far below 2013 levels, the country's largest natural gas
producer more than doubled its contribution to the Government coffers
last year to US$360.5 million from US$148.7 million the year before, London-
listed BP plc's Payment to Governments declaration showed last week.
The news comes after BP drilled a dry (gas-target) well last month, and
amid Prime Minister Dr Keith Rowley's Netherlands and London visits on
which he announced enhanced revenue packages for T& T from the
Atlantic liquefied natural gas
The payment BP made to T& T for the year 2018 was nothing compared to
what other countries received: Azerbaijan US$8 billion, United Arab
Emirates US$3.4 billion, and Angola US$3 billion.
BP said in its 2019 Outlook: 'The increase in LNG exports is led by North
America, followed by the Middle East, Africa and Russia. As the LNG
market matures, the US and Qatar emerge as the main centres of LNG
exports, accounting for around 40 per cent of all LNG exports by 2040.'
BP said: 'Asia remains the dominant market for LNG imports, although the
pattern of imports within Asia shifts, with China, India and Other Asia
overtaking the more established markets of Japan and Korea, and
accounting for around half of all LNG imports by 2040. Europe remains a
key market, both as a 'balancing market' for LNG supplies and a key hub
of gas-on-gas competition between LNG and pipeline gas.'
BP said: 'The precise profile of LNG volume growth will depend on the
timing and availability of the new investments needed to finance the
considerable expansion. The cyclical nature of LNG investments means
there is a risk that the development of the LNG market will continue to be
associated with periods of volatility.'
BP said: 'The increase in LNG supplies leads to greater competition
between LNG and pipeline gas, especially in Europe and China-two of
the largest importers of gas. In the energy transition (ET) scenario,
European gas production declines by 40 per cent, causing Europe's
import dependency to increase to around three-quarters in 2040.
Europe's existing infrastructure means it has the capacity to increase
substantially its imports of either LNG or pipeline gas, especially from
Russia.'
The company said: 'The greater ease of transportation means pipeline gas
has a marked cost advantage over LNG; the main constraint on pipeline
imports is concerns about Europe's dependency on Russia for gas. In the
ET scenario, the development of a globally integrated gas market eases
these concerns, allowing Russia to increase slightly its share of European
gas demand.'
The oil and gas giant said: 'In China, despite sizeable increases in
domestic production, demand growth outstrips supply, causing import
dependency to rise to over 40 per cent by 2040. Around half of these
additional imports are met by incremental pipeline capacity from Russia
and other CIS countries, and the remainder from LNG. As in Europe, as
well as pure cost considerations, China's choice of gas supply may also
depend on the energy security implications of different sources of supply
(some of these energy security issues are explored in the 'Less
globalisation' scenario on pp 72-75).'
<< Back to news headlines >>
Sagicor adds $0.71 Tuesday 4th June, 2019 – Trinidad Express Newspaper
Overall Market activity resulted from trading in 16 securities of which four
advanced, five declined and seven traded firm.
Trading activity on the First Tier Market registered a volume of 188,311
shares crossing the floor of the Exchange valued at $2,837,386.85. NCB
Financial Group Ltd was the volume leader with 115,310 shares changing
hands for a value of $973,760.35, followed by National Enterprises Ltd with
a volume of 26,047 shares being traded for $176,854.60. Scotiabank
Trinidad and Tobago Ltd contributed 14,572 shares with a value of
$911,624.32, while Sagicor Financial Corporation Ltd added 13,802 shares
valued at $137,419.
Sagicor Financial Corporation Ltd registered the day's largest gain,
increasing $0.71 to end the day at $9.96. Conversely, Scotiabank Trinidad
& Tobago Ltd registered the day's largest decline, falling $0.34 to close at
$62.56.
CLICO Investment Fund was the only active security on the Mutual Fund
Market, posting a volume of 7,851 shares valued at $184,414.66. CLICO
Investment Fund advanced by $0.19 to end at $23.49. Calypso Macro
Index Fund remained at $15.30. Eppley Caribbean Property Fund Ltd SCC-
Development Fund remained at $0.67. Eppley Caribbean Property Fund
Ltd SCC-Value Fund remained at $1.70. Praetorian Property Mutual Fund
remained at $3.05. The Second Tier Market did not witness any activity.
Mora Ven Holdings Ltd (Suspended) remained at $12.
The SME Market did not witness any activity. CinemaONE Ltd remained at
$9.95.
The USD Equity Market did not witness any activity. MPC Caribbean Clean
Energy Ltd remained at $1.
<< Back to news headlines >>
Berger Paints ceases operations in TT Monday 3rd June, 2019 – Trinidad and Tobago Newsday
Berger Paints Trinidad (BPTL) has ceased operations in TT. The
announcement was made in statement issued by the Ansa McAl Group,
the company's majority owner. The statement said BPTL and its recognised
majority trade union, the National Union of Government and Federated
Workers Union, signed a memorandum of agreement on May 31 on the
cessation of operations of BTPL.
Ansa McAl said while BPTL will stop its manufacturing operations in TT,
product availability in the market will not be affected. The group said BPTL
has been "in a loss-making position for several years." The decision, Ansa
McAl continued, means that the paint business will now be distributed by
Ansa Coatings Ltd. The group also said the decision will put the paint
business in a better position to build efficiencies and becomes more
competitive in the local and export markets.
Ansa McAl said there will be no compromise to the brand's quality
statements. The group said BPTL will be making a lump sum payment to
each employee to minimise the impact of this decision. Ansa McAl said
the company knows the decision will have a significant impact on its
employees. The group said 60 workers have been affected by this
decision.
The group is also offering counselling and financial advice to BPTL
employees.
<< Back to news headlines >>
UTC loses $33 million, first time in five years Saturday 1st June, 2019 – Trinidad and Tobago Guardian
The Unit Trust Corporation (UTC) Group made a loss of $33 million in 2018
according to its Executive Director Nigel Edwards. The Corporation is
reporting a TT$293 million decline in total income last year when
compared to 2017.
This is the since the UTC group started preparing consolidated financial
report it has recorded a loss.
Edwards told Guardian Media that the reversal of $88 million when
compared to 2017 was mainly as a result of the new accounting
standards that the corporation had to adopt.
In a telephone interview with GML, Edwards said already the company
was seeing positive movements in its net position in 2019 with a change in
the fair value of $ 288.7 million.
In its annual report, the UTC’s Chief Financial Officer’s indicated that total
income declined from 996 million in 2017 to 772 million in 2018. The
principal driver of this was unfavourable movements in the fair value of
investments securities amounting to TT$456 million in 2018.
There was a reduction of TT$224 million in realised capital gains due to the
rebalancing of the investment portfolio for the Growth and Income Fund
and the Universal Retirement Fund.
The Report also said that the Group’s focus on enhancing unitholders’
wealth and providing competitive returns led to increased distribution
payments of TT$52 million and total distribution to unitholders was TT$249.3
million.
Despite these challenges in 2018, the report said for the first time in its
history the Growth and Income Fund crossed the $5 billion mark.
Speaking on Monday at the Annual General Meeting, Edwards told
unitholders that as at April 30, 2019 the UTC had in its Growth and Income
Fund TT$5.2 billion under management.
“The success of the Growth and Income Fund surpassed our expectations.
Many people in T&T are now sophisticated, responsible investors and as
such, the UTC continues to look for new ways that are aligned to the
industry’s best practice to bring you value.”
Other key performance indicators that he pointed out include growth in
assets to $22 billion, a growth in customer base by 1.3 percent, cash flow
generation of $514 million and favourable returns in mutual fund portfolios
with the TT Dollar Income Fund crossing the $11 billion mark for the first
time in its history.
He said the recent application by the Caribbean Information and Credit
Rating Services Limited (CariCRIS) of a “high” credit rating validates that
the financial institution is on the right path.
He also referred to the limited availability of foreign currency in the
country.
“Unlike the commercial banks, the UTC is not a primary dealer of foreign
exchange and as such we are not in receipt of an allocation from the
Central Bank. Our supply of US dollars is dependent on what we purchase
from customers and what is bought from other financial institutions. The
foreign exchange market is extremely restricted, so we will ensure that
many of our unitholders have access to the limited funds available.
Customers in the US Income Fund can access their funds via their visa
card, wire transfer or cheque,” he said.
<< Back to news headlines >>
ANSA McAL pre-tax profits up Thursday 23rd May, 2019 – Trinidad and Tobago Guardian
There was a five per cent increase in ANSA McAL’s Group Profit Before Tax
(PBT) for 2018 when compared to 2017. PBT increased to $1.017 billion up
from 2017’s $968 million.
This according to the group’s Executive Chairman, A Norman Sabga at
the ANSA McAL’s Group’s 90th Annual General Meeting held at the
Radisson Hotel, Port-of-Spain.
Sabga said revenues were up 2 per cent to $6.39 billion compared to
$6.24 billion for 2017. The Earnings Per Share (EPS) improved by 12 per cent
to $3.54 in 2018 when compared to 2017’s $3.15.
According to the Group’s report, the results were impacted by gross
claims of $20 million in its general insurance company arising from a
magnitude 6.9 earthquake and severe flooding in low lying areas in
Trinidad in October.
The report also stated that there was $42 million in one-time impairments
arising out of the Barbados economy and debt restructuring by the
Government of Barbados.
The shortage of foreign exchange in T&T’s market negatively affected
business activity the Report also noted.
Andrew Sabga, Group Chief Executive Officer, who spoke during the
AGM, said the Board approved a dividend increase in 2018 from $1.50 to
1.80 per share.
“This represents a 20 per cent increase in dividends and is one of the
largest dividend increases in corporate history in T&T. That means that the
Group would pay out $310 million or 43 per cent of profit After tax.”
Norman Sabga, Chairman of the ANSA McAL Group, also said that
despite the country’s tough economic times of the last five years, the
Group had performed well.
“The last five years have been fairly difficult years in terms of profitability.
We have been holding and growing our profits in low digits on an annual
basis, but we have been growing them. Last year, our profit before tax
was 5 per cent and the dividend has significantly gone up where we are
paying forty something per cent of our dividend. I believe going forward,
our performance in terms of earnings per share will improve and based on
that, I believe our share price will increase.”
According to the report, the Group sees substantial growth potential
regionally for the automotive, beverage, and financial services sectors
and have already begun executing their strategies to achieve this
objective.
These diverse investments include investments in Tilawind SA Wind Farm in
Costa Rica, the Group commenced the process to acquire Trinidad
Aggregate Products Limited, which was completed in the first quarter of
2019 and Carib Glassworks began production of the One Litre Carta
Blanca bottles to its newest client in Cuba.
<< Back to news headlines >>
House Increases Accommodation Tax, Abolishes Tourism Levy Tuesday 4th June, 2019 – The Anguillian
Accommodation Tax, paid by rented accommodation in Anguilla,
including hotels, guesthouses and villas, has now been increased by two
percent. But the Tourism Levy, under which other fees were payable, has
been abolished as a compromise.
Both provisions were catered for in the Accommodation (Amendment)
Act, 2019 and the Tourism Levy (Repeal) Act, 2019, passed in the House of
Assembly on Wednesday.
Premier and Minister of Finance, Mr. Victor Banks, said the
Accommodation Tax had been increased from 10 to 12 percent and was
agreed to across the industry. Meanwhile, he explained that the Tourism
Levy (Repeal) Act was a consequential measure to the Accommodation
Tax Act in that it removed the levy charged to hotel guests and property
owners.
Leader of the Opposition, Ms. Palmavon Webster, was of the view that the
Accommodation Tax Act was part of the Goods and Services Tax due to
be introduced in Anguilla in the near future, and she expressed concern
about the increasing of taxation.
Premier Banks said that the issue of a Goods and Services Tax had been
spoken about over the past ten years and there were now consultations
looking into the matter. “We have consultants on board working with us,”
he added. “It is not the Chamber of Commerce alone which is asking
questions – others as well, and a number of people are now involved
supporting and advising the Government.”
<< Back to news headlines >>
Govt. releases US$584.0M from bank reserve for loans Friday 31st May, 2019 – Dominican Today
The Monetary Board on Thurs. authorized the release of up to RD$29.2
billion (US$584.0 million) from the bank reserve, to be channelled by the
financial intermediators into loans from the national productive sectors.
Dominican central banker, Héctor Valdez Albizu said the released funds
will be channelled to new projects and productive activities, at fixed rates
of up to 9% and a term up to six years.
The official said the funds are earmarked for the export, manufacturing,
agro, housing and SME sectors, as well as consumer loans. “The measure
will contribute to maintain the high dynamism of economic activity, in a
context of low inflationary pressures.”
<< Back to news headlines >>
Fitch rates Dominican Republic’s 2026 peso notes and 2049 USD bonds
‘BB-’ Thursday 30th May, 2019 – Dominican Today
Fitch Ratings has assigned a ‘BB-’ rating to Dominican Republic’s
DOP50.523 billion notes (equivalent to USD1 billion), maturing 2026 and to
the USD1.5 billion bonds maturing 2049.
The DOP notes are denominated in Dominican pesos, pay principal and
interest in U.S. dollars, and carry a coupon of 9.75%. The USD bonds carry a
yield to maturity of 6.492%.
Proceeds from the issuance will be used for general purposes of the
government, including the partial financing of the 2019 budget.
KEY RATING DRIVERS
The bond ratings are in line with Dominican Republic’s Long-Term Foreign
Currency Issuer Default (IDR) of ‘BB-’.
As per Fitch’s Sovereign Criteria, a bond issued in local currency and
payable in foreign currency is assigned an issue rating at the level of the
Long-Term Foreign Currency IDR.
RATING SENSITIVITIES
The bonds are sensitive to any change in Dominican Republic’s Long-Term
Foreign Currency IDR. Fitch affirmed Dominican Republic’s Long-Term
Foreign Currency IDR at ‘BB-’ with a Stable Outlook on Sept. 20, 2018.
DATE OF RELEVANT COMMITTEE
19-Sep-2018
<< Back to news headlines >>
Dominican Republic issues bond of US$2.5B Thursday 30th May, 2019 – Dominican Today
The Dominican government on Thurs. announced a bond of US$2.5 billion,
comprised of a 7-year local currency of RD$50.0 billion (US$1.0 billion), and
a 30-year US dollar bond for US$1.0 billion.
“The placement is part of this year’s Financing Plan, duly recorded and
approved in Law 61-18, which approves the General State Budget for
2019, as well as Law 64-18 on Public Debt Securities,” the Presidency said
in its website.
It said the proceeds obtained through the issue will allow compliance with
the year’s investment plan and meet the government’s obligations.
“The transaction in local currency was made at an interest or coupon rate
of 9.75%; while the 30-year issue was made at an interest rate of 6.492%,
the lowest coupon rate issued by the country for this term,” said Finance
minister Donald Guerrero.
<< Back to news headlines >>
‘Solid’ trade: Trinidad & Tobago US$319.9M, Dominican Rep. US$31.3M Wednesday 29th May, 2019 – Dominican Today
Dominican representative before the World Trade Organization (WTO)
Katrina Naut on Tues. labelled trade between her country and Trinidad
and Tobago as solid.
She said Dominican exports to that Caribbean nation in 2018 exceeded
US$31.3 million, and include sauces, bananas, candles and cigars.
The official said imports in 2018 reached US$319.9 million, mainly oil and
other petroleum products, according to Customs figures.
Dominican Republic participated in the IV Trade Policy Review of Trinidad
and Tobago, where it was evaluated as a positive effort to diversify and
improve the competitiveness of its economy, the implementation of
sector policies in electronic commerce, the national quality system and
the Electronic One-stop Window system.
<< Back to news headlines >>
1Q growth plummets from 7.8% to just 2.6% Monday 3rd June, 2019 – Dominican Today
In the first quarter retail sustained one of the most intense slowdowns of all
Dominican economic sectors, from a 7.8% growth from January to March
to 2018, to just 2.6% this year, Dominican Republic’s Central Bank revealed
Mon.
National Merchants and Entrepreneurs Council (Conacerd) vice president
Antonio Cruz said the result, which denotes a drop in demand in that
period, is explained by a smaller amount of money circulating in the
economy.
He said the Central bank had to apply the restriction to control inflationary
pressures and avoid currency depreciation.
However, National Commercial Companies Organization president Mario
Lama, preferred not to comment on the results because “they haven’t
been analysed by its board of directors yet.
Lama however acknowledged the slowdown in the sector.
<< Back to news headlines >>
Waive a hand Monday 3rd June, 2019 – Barbados Today
Six years after the Cultural Industries Act granted duty-free concessions,
figures in the arts and culture community are to finally receive the
incentives.
Minister of Creative Economy, Culture and Sports John King made the
announcement this afternoon at the National Cultural Foundation (NCF),
West Terrace St Michael headquarters, alongside NCF chief executive
officer Carol Roberts-Reifer, event promoter Freddy Hill of Fas
Entertainment, Rudy Maloney of 4D Entertainment and Tracy Highland of
Twisted Entertainment.
King disclosed that the duty-free concessions are to be accessible from
Tuesday by cultural practitioners registered with the NCF.
“The process is very simple; first, we need to know who our cultural
practitioners are, so what we are asking those persons out there is to go to
www.barbadosartists.bb and register as a cultural practitioner.
“Once you have done that, it goes into a system that the NCF has access
to and they are the ones who are going to certify who these artists are.
“Once they have certified, the next thing they are going to do is get a
licence from the NCF which gives them the ability to go to Customs when
they are importing and say look, ‘ I am a cultural practitioner, I am a
certified one and I also have a licence which gives me the authority to
import raw materials for whatever it is that I am doing’.”
The Minister continued: “You can be a bandleader and you need to get
beads and feathers and glue and all these other things; you could be a
visual artist; you can be musician and need pieces of equipment for your
studio; a culinary artist; it covers a wide range of people.”
King said that registered members of the cultural community must register
online at barbadosartists.bb for a certificate to be issued.
Practitioners must request a duty-free waiver which will be issued by the
NCF upon verification by the Ministry of Creative Economy, Culture and
Sport.
To receive the duty-free concessions, practitioners must present their Artist
Registry Certificate, application for duty-free waiver and an estimated
cost of the waiver to the Customs and Excise Department.
The Minister said: “We look at the various categories of cultural
practitioners and we make sure that the things you are going to be asking
for the concessions are tools of your particular trade.
“We want to make sure that the concessions are given to those persons
whose businesses will directly benefit from it.”
King declared that a tax clearance certificate will no longer be required
in order to qualify for grants from the NCF.
The Minister of Culture described the grant as a “landmark event” that
would contribute to the development of the cultural industries and
eliminate all the “red tape” that had previously hampered practitioners.
Commenting on the importance of Crop Over to the economy, the
Minister of Creative Economy revealed the proposed creation of a
Ministerial department devoted to entertainment.
“One thing we are going to have to seriously consider looking at as we go
forward is having a unit within the ministry that is dedicated specifically to
entertainment.
“When you start to think of it as a multi-billion-dollar industry. We have got
to do whatever is necessary to ensure that this 166 square miles benefit
from that wide pool of money that is generated globally so we are going
to need skillsets within the ministry to help guide not only policy but to help
a framework where our cultural practitioners have the best possible
chances to be the ones who benefit.
“Government is the facilitator but we have to create a framework that
makes it a lot easier but also gives our people the exposure that they
need in the rest of the world.”
NCF CEO Roberts-Reifer also spoke on the benefits of registering as a
cultural practitioner and revealed that being a certified member allowed
for not only concessions and allowances but also training and funding for
practitioners.
She also pointed out that the new online platform allowed for more
transparency within culture and entertainment.
“It also allows us to do is to measure the contribution of the sector
because everything is now transparent.
“There can be no hide or seek, where in order to be prudent as possible
you try to see how you can cut a corner to get your stuff done, we are
saying it can be above board because you no longer have to pay the
duties but you still have to pay the VAT too,” Roberts-Reifer said.
In immediate reaction, the president of the Barbados Association of
Masqueraders Chetwyn Stewart suggested that Grand Kadooment bands
might reduce the price of their packages next year if band leaders reap
the benefits of Government’s duty-free waiver.
Announcing 15 bands joining the BAM at a news conference held at the
Blackwoods Screwdock Monday evening: Stewart said: “If we have the
concessions, we would be able to save money.
“Fortunately, going forward with next year a band would be able to sit
down and plan earlier and see what exactly they would save and reduce
the price of the package because that is why we need the concessions.”
Stewart noted that the climax of the Crop Over festival has seen a
depletion in local participation, which he attributed to a number of
problems including the price of Kadooment packages.
With the official start to Crop Over in a matter of days, Stewart concluded
that the duty-free concessions would still be beneficial to masquerade
bands as some shipments have yet to reach the port.
He told reporters: “If from tomorrow things come through the airport… it
will help in a great way because a lot of the things have to come in.
“A lot of the materials that would take long probably were purchased;
they might not have reached the island yet like feathers but it is very good
that when they come through now there should be no duties on those.”
<< Back to news headlines >>
Double-edged sword Tuesday 4th June, 2019 – Barbados Today
While individuals could reap more for providing energy to the national
grid, customers of the utility company could be made to pay more for
electricity in coming months.
This is one of the potential disadvantages outlined in the feed-in-tariff (FIT)
consultation paper from the Fair Trading Commission (FTC), which is
designed to garner feedback from key stakeholders.
The consultation period began on May 29 and ends on June 19, 2019.
The 32-page document, which noted that Government was seeking to
cut back on its massive Fuel Import Bill and generate 100 per cent of the
country’s renewable energy from renewable energy sources by 2030, also
said there were some disadvantages to having a FIT programme.
In April, Minister of Energy and Water Resources Wilfred Abrahams
revealed that the FTC would inform Government by early July, of what the
proper FIT for renewable energy should be. At the time, Abrahams had
given the assurance that the new FITs would ensure that investors would
receive their fair returns.
As per the temporary rates set in July 2016, power for all units supplied to
the national grid under the renewable energy rider programme fetch
$0.416/kWh for solar photovoltaic, and $0.315/kWh for wind.
However, as the FTC seeks input in setting a more permanent and
“reasonable” rate for energy sold to the national grid, it warned that
these programmes are not without some “shortcomings”.
“There are some issues inherent in the design of feed-in-tariffs that may
lead to a loss of public support and even market distortions,” said the
document, though insisting that these were not specific to Barbados.
It pointed out that historically, FITs have been implemented through the
use of subsidies, and in those circumstances a premium is added to the FIT
rate as an incentive to spur investment.
“A potential consequence is higher energy costs to the consumer,” the
FTC cautioned.
“As a result of the premium placed on the feed-in-tariff rate, the offtake,
usually an electric utility, is faced with paying more than the market price
for the energy from the renewable energy supplier. In turn, the offtaker
passes these costs to the consumer,” it explained.
Alternatively, it said, the FIT programme may include an indirect support
mechanism such as tax concessions. However, the FTC said “This may not
be strictly applicable to Barbados, as the Government has not advised of
any specific subsidies at this time.”
The FTC also warned that should new data become available over time,
there may be a need to renegotiate or re-adjust the FIT rate.
“This may lead to a revised price, which may not be conducive to
maintaining investor confidence,” the regulator said.
“To mitigate against this, there may be a need to structure the feed-in-
tariff with a built-in renegotiation element so that investors are made
aware from the initial stages,” it said, adding that a flexible pricing
methodology was required so that changing costs are more accurately
and easily reflected.
<< Back to news headlines >>
24-hour clinics still up in the air Tuesday 4th June, 2019 – Barbados Today
The fate of Government’s planned start of the 24-hour polyclinic service
remained in limbo days after it was due to open, with little sign that nurses’
opposition towards a shift system had softened following a heated two-
and-a-half-hour meeting with the National Union of Public Workers.
On Friday, nurses pulled the rug from under a planned and widely-
advertised June 1 start of the two, 24-hour polyclinics signalling to
Government that they will not be bullied into accepting the new hours of
work.
This afternoon’s standing-room-only meeting, which was also attended by
head of the Unity Trade Union, Caswell Franklyn and NUPW Acting
General Secretary Delcia Burke, ended without comment on its outcome.
Burke would only say the union would not pre-empt meetings with the
Permanent Secretary in the Ministry of the Public Service, scheduled for
Thursday.
“We have taken a decision not to speak to the press on the issue until we
have spoken to the Ministry of the Public Service on Thursday,” said Burke,
who declined to answer when asked if the nurses’ position had changed.
She explained that the union had met with the Ministry on Saturday – on
the day the 24-hour service was set to begin. Today’s meeting was to
apprise the nurses of the outcome of that meeting, she said, but as the
nurses left, many openly expressed frustration about the manner in which
they were being treated.
“We are not doing it because it is not fair to us. One day they
[Government] will wake up and see all the nurses just gone from this
place,” one nurse could be heard saying.
This is bare foolishness; you can’t just change people’s work conditions just
so. It can’t work,” another stressed.
With the nurses’ withdrawal, the new system, set to augment the
emergency services of the Queen Elizabeth Hospital has been postponed,
as ministry officials try to negotiate with nurses on working hours and other
concerns.
The NUPW revealed that the nurses at the two polyclinics, Sir Winston Scott
Polyclinic and the David Thompson Health and Social Complex,
earmarked for the pilot, are vehemently opposed to working on a shift
system and they are not taking kindly to being compelled to do so.
Burke had previously told Barbados TODAY when the union last met with
the health ministry on the subject of making the switch to a 24-hour
facility, they were given the impression that the new operations would be
staffed only by nurses who volunteered.
But this afternoon the union was informed by its members that they were
being threatened with dismissal if they refused to work the 24-hour shift
system.
Burke told Barbados TODAY on Friday: “When this thing first came up, the
Ministry of Health said that persons would be able to volunteer, they were
not forcing anybody to work in the shift system.
“The reason that many of these nurses signed up for the polyclinics in the
first place is because they are not opened at night.
“Many have children and families to deal with on evenings. So, they are
now saying to people, who originally said on an option form that they
can’t work at night, that they have to work the shifts.”
Speaking Sunday night at the Barbados Labour Party’s first Anniversary
Political Rally at Carlisle Car Park, Bridgetown, Minister of Health
Lieutenant Colonel Jeffrey Bostic defended the Government’s decision to
go the route of the 24-hour clinics.
The Minister called on the unions and health workers to let common sense
prevail in the negotiations.
While not disclosing anything further due to the ongoing negotiations, Lt.
Col. Bostic asked unions to be cooperative, arguing the service is critical
for the livelihood of ordinary Barbadians.
<< Back to news headlines >>
Cuba legalizes private Wi-Fi networks in bid to boost connectivity Wednesday 29th May, 2019 – Reuters
Cuba announced on Wednesday it would legalize private Wi-Fi networks
to access the internet and connect computers, as well as allow imports of
equipment like routers in another step toward expanding connectivity on
the Communist-run island.
The new rules, which take effect on July 29, will regulate the many existing
wireless networks Cubans have crafted in recent years with smuggled
equipment and likely encourage the creation of new ones.
The move, announced in state-run media, looks set to allow private
businesses to provide their customers with Wi-Fi internet legally, a boon for
the tourism sector.
No network owner, however, will be able to sell that service, with state
telecoms company ETECSA maintaining a monopoly on commercial
internet access on the Caribbean’s largest island.
Ordinary citizens will be able to connect to ETECSA’s infrastructure via Wi-
Fi by asking for a permit, state website Cubadebate said.
Cuba has lagged far behind most of the Western Hemisphere in Web
access, whether because of a lack of cash, a long-running U.S. trade
embargo or concerns about the flow of information. Until 2013, internet
was largely available to the public only at tourist hotels on the island.
The government has since made boosting connectivity a priority,
introducing outdoor Wi-Fi hot spots and mobile internet.
Given the slow pace of hooking up homes to broadband internet, some
Cubans have used illegal antenna to connect to the hot spots instead,
hoping authorities will turn a blind eye.
Now, it appears they will be able to get an official permit to do so.
Meanwhile, those who are connected to the internet via broadband can
use a router that they can apply for online to share that service.
Other Cubans, put off by the prohibitive cost for access, have connected
their computers either by cable or wirelessly in order to share data, play
games and chat online.
The new regulations will legalize networks like these as well, although
owners will have to seek a permit for ones with outdoor antennas and
stick to certain restrictions.
<< Back to news headlines >>
Canada suspends Venezuela embassy operations, reviewing Maduro
envoys Sunday 2nd June, 2019 – Reuters
Canada will suspend operations at its embassy in Venezuela immediately
because its diplomats will no longer be able to obtain visas, the Canadian
foreign minister said on Sunday.
Chrystia Freeland said in a statement that President Nicolas Maduro’s
“regime has taken steps to limit the ability of foreign embassies to function
in Venezuela.”
Canada is one of a dozen countries in the Lima Group regional bloc,
along with Brazil, Argentina and Chile, which recognizes opposition leader
Juan Guaido as the legitimate Venezuelan leader and is demanding that
Maduro resign.
“Unfortunately, at the end of this month, Canadian diplomats in
Venezuela will no longer be in a position to obtain diplomatic
accreditation under the Maduro regime, and their visas will expire,”
Freeland said in the statement. “Therefore, we are left with no choice but
to temporarily suspend our operations at the embassy of Canada to
Venezuela, effective immediately.
Freeland said Canada was “also evaluating the status of Venezuelan
diplomats appointed by the Maduro regime to Canada.”
Venezuela’s information ministry did not immediately reply to a request for
comment.
<< Back to news headlines >>
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