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The Government of the Republic of Trinidad and Tobago’s rating reaffirmed at CariAA+
The Government of Saint Lucia’s ratings for its proposed bond issues assigned at CariBBB
Goddard Enterprises Limited’s rating reaffirmed at CariAA-
Development Bank of Jamaica Limited’s rating reaffirmed at CariBBB+
The Government of Saint Lucia’s rating reaffirmed at CariBBB
The Government of the Commonwealth of Dominica’s rating reaffirmed at CariBB+
Bourse Securities Limited’s rating reaffirmed at CariA-
Eastern Caribbean Home Mortgage Bank’s rating reaffirmed at CariBBB+
RHAND Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-
Point Lisas Industrial Port Development Corporation Limited’s rating reaffirmed at CariA+
The Government of the British Virgin Islands’ initial issuer rating assigned at CariAA-
NCB Capital Markets Limited’s initial issue rating assigned at CariBBB-
VENTURE Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-
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REGIONAL
Trinidad and Tobago
SBA president: Budget should focus on agriculture, manufacturing
President of the San Fernando Business Association (SBA) Daphne Bartlett
is saying that the Government's biggest emphasis for the upcoming
budget should be on the agriculture and manufacturing sectors.
iQOR executive: Local absenteeism rate unacceptably high
Despite facing the problem of a 20 per cent absenteeism rate in T&T,
business process outsourcing provider iQOR is confident that the T&T
market remains a lucrative one.
NGC CNG rewards CNG converts
NGC CNG has started the distribution of incentives to maxi taxi, taxi, and
private school bus owners who have transitioned to CNG.
Barbados
Flood warning extended until noon
The Flood Warning for Barbados remains in effect until noon today.
Jamaica
OCG to Oversee Multimillion$ Junction Road Project
Contractor General Dirk Harrison has said that his office will be monitoring
the more than $600-million road project in St Mary that was announced by
the Andrew Holness administration last week.
Jamaica to steer UNWTO disaster recovery program for Caribbean
Jamaica’s Minister of Tourism, Edmund Bartlett, has been appointed as
the coordinator of the United Nations World Tourism Organization’s
(UNWTO) newly-formed disaster recovery working group for the affected
states in the Caribbean.
The Bahamas
IMF projects 1.75% growth in 2017, 2.5% in 2018
The Executive Board of the International Monetary Fund (IMF) projected in
its Article IV consultation with The Bahamas that this country’s real GDP
(gross domestic product) growth will pick up to 1.75 percent in 2017 and
to 2.5 percent in 2018, driven in part by a strong U.S. economy, the
phased opening of Baha Mar and related construction activity.
Guyana
Exxon starts talks today on bringing natural gas to shore for electricity
The first in a series of continued discussions on commercial and power
generation issues will be held when officers of the Government of Guyana
and technical members of ExxonMobil meet in Georgetown today.
St. Kitts and Nevis
Statement by the Honourable Prime Minister of St. Kitts and Nevis Dr. The
Hon Timothy Harris on Monday, September 18, 2017 in preparation for the
imminent passage of Hurricane Maria
For the third time this month, we are faced with the challenge of an
imminent hurricane. My Cabinet is advised that Hurricane Maria is
scheduled to begin affecting our Federation later tonight, Monday,
September 18, 2017. A Hurricane warning has been issued for our
Federation.
Dominica
Dominica devastated
The Nature Isle has been battered by Mother Nature again. A little over
two years to the day after being pummelled by Tropical Storm Erika, the
island of Dominica was last night reeling from the effects of Hurricane
Maria.
Other Regional
Maria forces CAL to cancel flights
Caribbean Airlines has announced that due to the closure of the George
F.L. Charles International Airport, St. Lucia, and strong storm force winds in
Barbados due to Hurricane Maria, a number of flights were cancelled,
yesterday.
INTERNATIONAL
United States
Futures slightly higher ahead of Federal Reserve meeting
U.S. stock index futures were slightly higher on Tuesday, ahead of the
Federal Reserve’s two-day policy meeting, which would give investors
clues on the timing of the next U.S. interest rate hike.
Borrowing bonds may get harder as Fed pares holdings
The Federal Reserve hopes to pull off the wind-down of its massive
balance sheet with minimal market impact, but even a slow withdrawal
may increase strains in a crucial section of the bond market.
Dollar touches eight-week high against yen as Fed meets
The dollar hit an eight-week high against the yen on Tuesday as U.S.
central bank policymakers meet to discuss further monetary tightening,
with renewed calm over North Korea easing demand for perceived safe
havens.
U.S. current account widens sharply in second quarter
The U.S. current account deficit jumped to its highest level since 2008 in
the second quarter amid a decline in both secondary and primary
income.
U.S. import prices post biggest gain in seven months
U.S. import prices recorded their biggest increase in seven months in
August as the cost of petroleum surged and there were also signs of a
pickup in underlying imported inflation.
United Kingdom
Sterling pressured after Carney's comments
Sterling slipped against the dollar on Tuesday, kept under pressure after a
nearly 1 percent slide on comments from Bank of England governor Mark
Carney, who said interest rates rises in coming months would be limited
and gradual.
Bank of England's Carney sees Brexit pushing up inflation, slowing growth
Bank of England Governor Mark Carney said on Monday that Brexit is likely
to hurt Britain’s growth prospects in the short term and push up inflation as
the country adjusts to life outside the European Union.
United Kingdom cont’d.
Britain's FTSE pauses for breath, Ocado drops
British share indexes made little headway on Tuesday as miners fell while
retailers made gains, with investors awaiting further signs of the direction
of monetary policy.
Europe
ECB seen keeping option to prolong bond-buying again in 2018: sources
European Central Bank policymakers disagree on whether to set a
definitive end-date for their money-printing program when they meet in
October, raising the chance that they will keep open at least the option
of prolonging it again, six sources told Reuters.
EU to propose stronger monitoring of UK financial firms after Brexit
The European Commission is set to propose on Wednesday stricter
controls of foreign financial firms that do business in the EU, a move that
would extend European regulators’ supervision over London, Europe’s
biggest financial center, after Britain leaves the bloc.
China
China central bank backs mortgage rate hikes in capital
China’s central bank supports a move by some banks to increase lending
rates on mortgage loans in the Beijing market, state broadcaster China
Central Television (CCTV) on Tuesday quoted the central bank as saying.
China stocks slip as liquidity concerns weigh
China stocks slid on Tuesday, with traders awaiting clues on U.S. monetary
policy from the Federal Reserve meeting and as caution prevailed over
potentially tight liquidity before the National Day holiday.
Japan
Eying snap election, Japan's Abe to focus on education, security
Pledges to spend on education and child care, stay tough on North
Korea and revise the pacifist constitution are likely to be pillars of
Japanese Prime Minister Shinzo Abe’s campaign in a snap election next
month, government sources said on Tuesday.
Japan cont’d.
Japanese stocks' market cap hits record high of $5.49 trillion
The value of Japanese stocks hit a record high on Tuesday, hitting a
welcome milestone for Prime Minister Shinzo Abe, who might call a snap
election soon in a bid to bolster his power.
Global
Oil near five-month high as Middle East producers stick to cuts
Oil prices traded close to five-month highs on Tuesday after fresh data
showed key Middle Eastern producers continued to cut supply in line with
an OPEC-led deal aimed at ending a crude glut.
Iraq oil min says premature to decide on future of output deal
OPEC and other oil producers are discussing several options for their
supply-cut pact, including an extension and a further cut, but it is
premature to decide on what to do beyond March, when the agreement
expires, Iraq’s oil minister said on Tuesday.
Futures slightly higher ahead of Federal Reserve meeting Tuesday 19th September, 2017 – Reuters
U.S. stock index futures were slightly higher on Tuesday, ahead of the
Federal Reserve’s two-day policy meeting, which would give investors
clues on the timing of the next U.S. interest rate hike.
While investors do not expect any rate hike as an outcome of the
meeting, the central bank will likely announce that it will begin paring its
massive portfolio of Treasuries and mortgage-backed securities, with the
reductions expected to start this year.
Investors will also listen closely to Fed Chair Janet Yellen’s views on
inflation, which has been posing a persistent concern for policymakers as
it remains stuck below the Fed’s 2-percent target rate.
U.S. stocks have been breaching record levels, with the Dow clocking a
closing record for the fifth day in a row on Monday and the S&P closing at
a record for the second consecutive session.
The S&P ended slightly higher on Monday as financial stocks rose, but the
NASDAQ pared gains sharply as technology stocks lost ground late in the
session.
Investors will also watch U.S. President Donald Trump’s speech at the
United Nations General Assembly where he is expected to urge U.N.
member states to increase pressure on North Korea to give up its nuclear
weapon ambitions. The speech is scheduled at 10:30 a.m. ET (1430 GMT).
U.S. Defence Secretary Jim Mattis hinted on Monday about the existence
of military options on North Korea that might spare Seoul from a brutal
counterattack. But he declined to say what kind of options he was talking
about or whether they involved the use of lethal force.
Economic data in the day includes a Commerce Department report on
monthly housing starts, due at 8:30 a.m. ET. The report is likely to show
homebuilding little changed at a 1.175 million-unit rate in August.
Among stocks, Tesla (TSLA.O) was down 1.35 percent in premarket trading
after Jefferies started coverage of the electric car maker’s stock with
“underperform”.
Nike (NKE.N) fell more than 1 percent after a slew of price target cuts by
brokerages.
Michael Kors (KORS.N) rose about 2.56 percent after Oppenheimer
upgraded the stock to “outperform” from “perform”.
Futures snapshot at 7:05 a.m. ET:
S&P 500 e-minis ESc2 were up 8 points, or 0.32 percent, with 48 contracts
changing hands.
Nasdaq 100 e-minis NQc2 were down 4.25 points, or 0.07 percent, in
volume of 22 contracts.
Dow e-minis 1YMc2 were up 14 points, or 0.06 percent, with 11 contracts
changing hands.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
<< Back to news headlines >>
Oil near five-month high as Middle East producers stick to cuts Tuesday 19th September, 2017 – Reuters
Oil prices traded close to five-month highs on Tuesday after fresh data
showed key Middle Eastern producers continued to cut supply in line with
an OPEC-led deal aimed at ending a crude glut.
A weaker U.S. dollar also lent support to greenback-denominated
commodities like oil, traders said.
Benchmark Brent crude futures LCOc1 were up 31 cents at $55.79 a barrel
at 0957 GMT, not far off a five-month high of $55.99.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 44 cents at
$50.35 per barrel.
Sentiment has been buoyed since last week when the International
Energy Agency lifted its 2017 demand outlook and the Organization of the
Petroleum Exporting Countries estimated the world would need more of its
crude next year.
“The bullish trend for oil is fed by a few factors like upward revisions in oil
demand from OPEC and IEA, Saudi Arabian exports dropping to a three-
year low in the summer and, last but not least, the continuing weakness of
the U.S. dollar,” said Frank Schallenberger, Head of Commodity Research
at LBBW.
Adding to the bullish mood, OPEC’s second-biggest producer Iraq said on
Tuesday it had cut output by about 260,000 barrels per day (bpd),
exceeding cuts agreed under the OPEC-led pact.
This comes a day after official export data showed Saudi Arabian July
crude exports dropped to the lowest in three years, highlighting its own
compliance with output restrictions.
However, rising crude prices have encouraged drilling in U.S. shale oil
regions. The U.S. government said on Monday it expected shale output to
rise for a 10th straight month in October.
“This will make it more difficult for OPEC to achieve the desired market
balance,” said analysts at Commerzbank.
Output across seven shale plays is forecast to rise by nearly 79,000 bpd to
6.1 million bpd, according to the U.S. Energy Information Administration.
Traders also closely watched the progress of Hurricane Maria in the
Caribbean. Although it remains far from the U.S. oil production heartland
in the Gulf of Mexico, it could dampen oil demand and disrupt maritime
trading routes.
(Additional reporting by Henning Gloystein in Singapore; Editing by
Edmund Blair)
<< Back to news headlines >>
Borrowing bonds may get harder as Fed pares holdings Tuesday 19th September, 2017 – Reuters
The Federal Reserve hopes to pull off the wind-down of its massive
balance sheet with minimal market impact, but even a slow withdrawal
may increase strains in a crucial section of the bond market.
Any reduction in the U.S. central bank’s balance sheet could make it
harder for banks and investors to borrow certain Treasuries in the
repurchase agreement market, making it more difficult and expensive to
bet on or protect against interest rate increases.
The Fed is widely expected to announce on Wednesday that it will begin
paring its $4.5 trillion balance sheet, likely beginning this year.
Banks and investors have benefited from having access to the Fed’s
expansive bond inventory for specific issues that can otherwise be hard to
come by, but the Fed will soon have fewer bonds to lend.
“There will be no supply buffer in the repo market,” said Michael Cloherty,
head of U.S. rates strategy at RBC Capital Markets in New York.
The Fed holds $2.4 trillion of Treasuries that it lends out through its reverse
repurchase agreement, or repo, facility in exchange for overnight loans.
These loans typically total between $100 billion and $200 billion per day,
with demand at month-end and year-end even higher. The operation
helps the Fed set a floor on interest rates and provides Treasuries to banks
and investors when they are in high demand.
The central bank also lends its inventory to dealers through a security
lending operation, where banks can request specific issues that are in
high demand by clients including hedge funds.
This operation typically sees between $20 billion and $30 billion in loans
per day. On some days, demand for certain issues exceeds the amount of
those bonds the Fed holds.
By paring its holdings the Fed may make it harder to acquire highly sought
after bonds and reduce liquidity in the funding markets, sparking greater
market volatility and making it more expensive to short Treasuries.
The Fed’s wind-down could also create an uptick in the number of loans
that are not settled on time, a problem that has worried regulators
including the New York Fed in the past.
“It’s a market functioning issue,” said Blake Gwinn, an interest rate
strategist at NatWest Markets in Stamford, Connecticut. “In the end it
could make people less likely to short a security.”
The market is already struggling with a scarcity of benchmark 10-year
notes, which can be hard to borrow due to the U.S. Treasury Department’s
auction schedule.
The government sells a new issue of the notes every three months, and
reopens the issue once a month in the two months after the original sale,
making the amount of notes available incrementally larger with each
auction.
As investors pour into the new issue, the amount of supply in the first month
is often insufficient to meet demand from those wanting to borrow the
bond for a short position.
The Fed has eased some of these disruptions by making its holdings
available to borrow.
On every day in September except one the central bank has lent out all
of its holdings of the current 10-year note issue, which was sold for the first
time in August.
On many days, demand to borrow the notes has been several billion
dollars higher than the amount of the notes the Fed was able to supply,
New York Fed data shows.
While the Fed will initially only make small adjustments to its reinvestment
policy, the reduced buying may over time exacerbate this imbalance.
The amount of trade fails, when a market participant does not deliver the
bonds it agreed to offer to another market participant, has been
elevated this month. There were $153 billion in failed trades on Sept. 5, the
most since Dec. 12, according to data from the Depository Trust &
Clearing Corp.
And if interest rates rise as the Fed pares its holdings, the effect of the
Fed’s pullback may be amplified.
Rising rates can increase the number of investors taking short positions on
liquid Treasuries, known as on-the-runs, to protect against or bet on further
bond weakness, in turn adding to demand for the already scarce notes.
“We think that a lack of lendable supply of on-the-runs in a rising rate
environment will have a much more pronounced effect,” said RBC’s
Cloherty.
Other lenders may step in and offer some relief for those looking to short
Treasuries. Bond holders that do not currently lend out their holdings could
be drawn into the market by more lucrative returns as the Fed shrinks its
holdings.
Securities lenders that are already active in the market may also benefit
from higher rates as the Fed steps back.
“It’s an opportunity for some people. You’re losing a competitor to lend
out the securities so you can theoretically charge more,” said NatWest’s
Gwinn.
(Reporting By Karen Brettell; Editing by Meredith Mazzilli)
<< Back to news headlines >>
ECB seen keeping option to prolong bond-buying again in 2018: sources Tuesday 19th September, 2017 – Reuters
European Central Bank policymakers disagree on whether to set a
definitive end-date for their money-printing program when they meet in
October, raising the chance that they will keep open at least the option
of prolonging it again, six sources told Reuters.
A stubbornly strong euro, with its dampening effect on inflation, is driving a
rift among ECB policymakers, the sources on the ECB’s Governing Council
with direct knowledge of its thinking said.
The split is between ‘hawks’ -- led by richer, northern countries such as
Germany -- who are ready to wind down the 2.3 trillion euros bond-
purchase program and ‘doves’ who simply want to reduce its monthly
pace, the sources said.
This is raising the likelihood that they will seek a compromise solution on
Oct. 26, whereby any end-date for purchases would not be set in stone,
or that they will put off part of the decision until December, the sources
added.
The main point of contention is the euro’s continued appreciation against
major currencies, which is threatening to curb inflation in the euro zone by
making its imports cheaper and exports dearer.
The ECB declined to comment. The sources noted that no decision had
been made and the debate remained open.
Hawks see the currency’s strength as testament to the euro zone’s strong
economic growth, while doves fear it reflects weakness in the United
States and Britain, two of the bloc’s main economic partners, and fear
any significant surge above $1.20, a high set earlier this month, the sources
said.
“The strength of the euro is the number one problem,” one of the sources
said.
ECB rate-setters were comforted by last week’s euro zone wage data,
and they will be looking at more indicators such as prices and sentiment,
until their Oct. 26 meeting to gauge whether inflation is gradually heading
towards the ECB’s target of almost 2 percent. But there are factors
beyond their control.
The prospect of British interest rates rising for the first time in 10 years is
giving the ECB some support by boosting the pound against the euro.
On the other hand, several policymakers stressed their uncertainty over
whether Donald Trump’s U.S. administration will be able to deliver on its
pledge to boost the world’s largest economy.
This, combined with the massive storms that have hit the United States,
was threatening to delay the Federal Reserve’s plans for further rate
increases and putting a cap on the dollar exchange rate against the
euro.
“The main source of uncertainty has to do with U.S. economic policy: to
what extent will they be able to deliver,” another source said.
OPEN ENDED?
In this context, some policymakers were inclined to err on the side of
caution and retain the ability to prolong bond purchases again next year
if needed.
This could be done by keeping parts of the ECB’s long-standing policy
message, which says the buys can be extended and expanded if needed
to support inflation, the sources said.
To keep options open, ECB President Mario Draghi and other policymakers
have been talking of a “recalibration” of the program, rather than
“tapering” - the term used by the Fed when it wound down its own
quantitative easing (QE) scheme in 2013.
“Recalibration is not tapering, it’s open ended,” another source said.
In addition, the ECB could push out expectations for its first rate hike,
which it has said won’t happen before purchases end, by spreading out
its buys over a longer period of time, two sources said.
As the ECB is likely to run out of eligible government bonds to buy in some
countries, this could be partly achieved by deviating from its pre-set
national quotas and buying more corporate bonds, the sources added.
Others, however, were more confident about the ability of the euro zone’s
economy to hold up without the bond purchases and were still hoping to
set an end-date for them, even if that means waiting for the Dec 14
meeting for a decision.
They were stressing the diminishing returns of the money printing scheme
and its growing side effects in inflating financial and property prices.
“If the data confirms (the recovery in inflation), we should put an end-
date on the program,” a source said.
Sources had told Reuters earlier this month that two scenarios discussed
by rate-setters at the latest meeting involved buying bonds until June or
September at a pace of 40 or 20 billion euro per month, down from the
current 60 billion euros.
(Reporting by Francesco Canepa; Editing by Hugh Lawson)
<< Back to news headlines >>
Sterling pressured after Carney's comments Tuesday 19th September, 2017 – Reuters
Sterling slipped against the dollar on Tuesday, kept under pressure after a
nearly 1 percent slide on comments from Bank of England governor Mark
Carney, who said interest rates rises in coming months would be limited
and gradual.
The pound rose as much as 3.3 percent last week, jumping more than four
cents to $1.3618 on the back of hawkish messages from the BoE and
Gertjan Vlieghe, one of the Bank’s rate-setters normally considered a
dove.
But it slid from its highest level since the Brexit result after Carney’s
comments on Monday, which some analysts said were aimed at
managing market expectations of the pace and number of rates hikes
from the British central bank.
Sterling briefly steadied above $1.35 in early morning trade in London,
before gradually declining into negative territory.
It was 0.2 percent lower at $1.3477 by 0857 GMT, having earlier hit the
day’s low of $1.3469.
The pound was 0.4 percent lower at 88.84 pence per euro..
Traders said the move was a continuation of yesterday’s downward
momentum following Carney’s comments.
“It’s traders digesting Carneys comments yesterday and assessing that
they may have jumped the gun a little with regards to the timing of the
first rate hike,” said Jake Trask, corporate dealer at OFX.
“The BoE has cried wolf before regarding rate hikes and although it seems
likely to happen soon, it may not be this year.”
While investors will be on alert for retail sales data on Wednesday, the key
event for traders this week is a speech in Florence on Friday by British
Prime Minister Theresa May.
She is expected to discuss the Brexit negotiations, the next round of which
has been postponed to the week of Sept. 25. Ratings firm Moody’s will
also issue its rating of UK sovereign debt on Friday.
In a speech at the International Monetary Fund on Monday, Carney said
Brexit was likely to hurt Britain’s growth prospects in the short term and
push up inflation as the country adjusts to life outside the European Union.
“To guard against this (rise) it appears that the Bank of England is looking
to mitigate some of the impact of higher prices by helping put a floor
under the pound,” said CMC Markets chief markets analyst Michael
Hewson.
Britain’s inflation rate has accelerated this year, due in large part to the
fall in the value of the pound since the referendum decision in June 2016
to leave the EU.
Prices have risen nearly 3 percent, squeezing the spending power of many
households and slowing growth in the overall economy. That, analysts say,
has also complicated the BoE’s job as wages continue to lag price rises.
(Reporting by Ritvik Carvalho; Editing by Catherine Evans)
<< Back to news headlines >>
Dollar touches eight-week high against yen as Fed meets Tuesday 19th September, 2017 – Reuters
The dollar hit an eight-week high against the yen on Tuesday as U.S.
central bank policymakers meet to discuss further monetary tightening,
with renewed calm over North Korea easing demand for perceived safe
havens.
The yen, which gains in times of crisis because Japan is the world’s largest
creditor nation and benefits from speculation about repatriation of
Japanese money from overseas, also slid to a 21-month low against the
euro.
Another safe haven, the Swiss franc, hit a multi-year low against the euro
and analysts said this trend would remain as long as the U.S. continues to
favour a diplomatic solution to the North Korean crisis.
In a speech scheduled for 1430 GMT, U.S. President Donald Trump will urge
U.N. member states to increase pressure on North Korea to give up its
nuclear weapons.
The U.N. Security Council has already imposed several rounds of sanctions
on North Korea, but the U.S. ambassador to the United Nations, Nikki
Haley, has said that most non-military options have all but been
exhausted.
“Trump is erratic and there have been conflicting signals from people in
his administration, but as long as the market is confident the U.S.
approach is going to remain diplomatic, the movement will be away from
safe havens,” said Jane Foley, senior FX strategist at Rabobank in London.
Aside from the Trump speech, investors are now preparing for potentially
more hawkish statements from the Federal Reserve when its two-day
policy meeting ends on Wednesday, especially after the Bank of England
surprised investors last week with talk of a possible rate hike.
The Fed is widely expected to announce that it will start paring its balance
sheet, with the reductions seen likely to start this year.
It is expected to keep rates on hold, but investors will be watching for fresh
hints on the chances of another rate rise this year and how many could
be expected in 2018.
The dollar climbed as high as 111.88 yen on Tuesday, its highest level since
July 26, but by 1055 GMT had edged back to 111.61 yen.
The yen has shown little reaction to the possibility of Japanese Prime
Minister Shinzo Abe calling a snap election for as early as October to take
advantage of improved approval ratings and disarray in the main
opposition party.
The euro traded at 134.16 yen, up over half a percent against the
Japanese currency and at its highest since December 2015.
The single currency also hit its highest level against the Swiss franc since
Jan. 15, 2015, when the Swiss central bank dropped the franc’s cap
against the euro.
Sterling steadied above $1.35, recovering some ground after a nearly 1
percent slide on comments from the Bank of England’s governor Mark
Carney who said on Monday interest rates rises in coming months would
be limited and gradual.
(Reporting by John Geddie; Additional reporting by Shinichi Saoshiro and
Masayuki Kitano; Editing by Robin Pomeroy)
<< Back to news headlines >>
Bank of England's Carney sees Brexit pushing up inflation, slowing growth Tuesday 19th September, 2017 – Reuters
Bank of England Governor Mark Carney said on Monday that Brexit is likely
to hurt Britain’s growth prospects in the short term and push up inflation as
the country adjusts to life outside the European Union.
In a speech that immediately drew criticism from some Brexit supporters
who have previously criticized his stance on the EU, Carney warned that
Britain would face a cost for reworking its trade relationships.
In the short term, the weakening of trade ties with its EU partners would not
be offset by new agreements with other countries, he said, as he
repeated his argument from last week that interest rates would probably
need to rise soon.
“This makes Brexit, relative to the experience of the past half century,
unique,” Carney said in a speech at the International Monetary Fund’s
Washington headquarters. “It will be, at least for a period of time, an
example of de-globalization, not globalization.”
Brexit supporters say the freedom to strike new trade deals is one of the
big advantages of leaving the European Union. Diane James, an
independent member of the European Parliament who was briefly leader
elect of Britain’s anti-EU UKIP party, took aim at Carney.
“Mark Carney blaming inflation on Brexit. Does he not realize that QE and
ZIRP are the major causes?,” James said on Twitter, referring to the BoE’s
stimulus programs. Carney angered many Brexit supporters before last
year’s referendum by saying leaving the EU would probably hurt the
economy. Although growth held up immediately after the vote, it has
slowed sharply this year.
Carney also said that less openness to foreign markets and fewer workers
coming to Britain would put upward pressure on inflation and reduce
productivity, raising the prospect of higher interest rates ahead.
“On balance, the de-integration effects of Brexit can be expected to ...
be inflationary,” he said. “At present, the main question concerns the
extent to which this adjustment has been brought forward.” Britain’s
inflation rate has accelerated this year, due in large part to the fall in the
value of the pound since the referendum decision in June 2016 to leave
the EU.
Prices have risen nearly 3 percent - above the BoE’s 2 percent target -
squeezing the spending power of many households and slowing growth in
the overall economy.
RATE HIKE SIGNAL REPEATED
The BoE surprised financial markets last week when it said most of its
policymakers thought it was likely that interest rates would need to rise in
the coming months, if the economy and price pressures keep growing.
Slideshow (5 Images)
It was the strongest signal to date that Britain’s first rate increase in a
decade is approaching, despite the uncertainties still surrounding the
country’s scheduled 2019 departure from the European Union.
In his speech on Monday, Carney reiterated that message and said the
years of rock-bottom interest rates appeared to be coming to an end as
the world economy picked up after the global financial crisis.
“The case for a modest monetary tightening is reinforced by the possibility
that global r* (equilibrium interest rates) may be rising, meaning that
monetary policy has to move in order to stand still,” he said.
The pound hit its highest level against the U.S. dollar since the Brexit vote
on Friday after another policymaker, Gertjan Vlieghe, who was
considered the BoE’s strongest opponent of a rate hike, also said
borrowing costs might rise soon.
Sterling fell on Monday and after Carney’s speech extended its decline,
possibly reflecting the lack of specific comments from Carney on when
the BoE might move on rates. The BoE’s next announcement on monetary
policy is scheduled for Nov. 2.
Until last week, most economists had expected the BoE to wait until 2019
before raising rates, which would have left it on the sidelines as the
Federal Reserve continues to raise borrowing costs and the European
Central Bank moves toward reducing its stimulus for the euro zone
economy.
(Writing by William Schomberg, editing by Larry King)
<< Back to news headlines >>
Britain's FTSE pauses for breath, Ocado drops Tuesday 19th September, 2017 – Reuters
British share indexes made little headway on Tuesday as miners fell while
retailers made gains, with investors awaiting further signs of the direction
of monetary policy.
Britain’s FTSE 100 see-sawed before steadying up 0.2 percent as investors
hesitated ahead of the Fed’s two-day meeting which would begin later in
the day.
The FTSE was boosted on Monday by Bank of England governor Mark
Carney saying interest rates were likely to rise in the coming months.
“In our view the driving variable into the end of the year is likely to be the
direction of bond yields,” said equity strategists at JP Morgan.
They cut UK equities to underweight on Monday, highlighting a strong
inverse correlation between the relative performance of the UK and the
direction of bond yields.
Financials, which benefit when interest rates are raised, supported the
index, with HSBC up 1 percent and Lloyds up 0.7 percent, but gains were
muted overall.
Miners Anglo American and Antofagasta were among biggest fallers as
metals prices faltered, with traders awaiting clues on the direction of the
dollar.
Online grocer Ocado tumbled 4.6 percent, dropping to the bottom of the
mid-caps after its third-quarter results revealed rising short-term costs due
to a ramp-up in capacity at its Andover distribution centre and investment
in a new centre in Erith, near London.
“Management have guided down full-year EBITDA expectations,” said
Bernstein retail analyst Bruno Monteyne. “This is in line with our view that
the market under-estimates the margin impact of setting up the new
facilities.”
Supermarkets Sainsbury‘s, Morrisons, Tesco and Marks & Spencer, whose
bricks-and-mortar business models have been squeezed by online delivery
services like Ocado, were among top FTSE 100 gainers.
Sales data from Kantar showed inflation helped boost sales growth for the
top supermarkets, with Tesco coming out on top although its market share
was squeezed.
Construction and plumbing supplies distributor Ferguson rose 1.1 percent
after Citi upgraded the stock to a “buy” and Barclays reiterated its
optimism on it.
Citi analysts said the shares were good value after recent weak
performance, and flagged full-year results on Oct. 3 as a “key catalyst”.
Barclays analysts said Ferguson could resist pressure on its business model
from online alternatives.
“We see Ferguson as being able to match or beat Amazon on the range
and availability of products expected by its professional plumber
customer base as well as on delivery/collection options,” they said in a
note.
NMC Health, the United Arab Emirates-based healthcare provider, led
fallers, down 3.1 percent after joining the FTSE 100 on Monday. Traders say
index changes can have a short-term impact on share prices as
exchange-traded funds adjust their stock holdings.
(Reporting by Helen Reid; Editing by Keith Weir)
<< Back to news headlines >>
EU to propose stronger monitoring of UK financial firms after Brexit Tuesday 19th September, 2017 – Reuters
The European Commission is set to propose on Wednesday stricter
controls of foreign financial firms that do business in the EU, a move that
would extend European regulators’ supervision over London, Europe’s
biggest financial center, after Britain leaves the bloc.
The proposal would cover all financial industries that are allowed to
operate in the EU under the so-called equivalence regime, a system
whereby Brussels grants access to non-EU firms that comply with rules
similar to those in the bloc.
After Brexit, equivalence is seen as the most likely framework for regulating
the activities in the EU of British-based firms, although the country’s
financial services sector is pushing for an easier access to the continent’s
internal market.
Under the draft legislative proposal, seen by Reuters, EU supervisors would
increase their monitoring powers for all foreign financial services covered
by equivalence decisions.
This would complement earlier moves to strengthen checks on specific
activities, like clearing, that infuriated Britain.
EU regulators would have to regularly monitor foreign financial regulatory
regimes and report to the European Commission about possible
developments that could require changes or a quick revocation of an
equivalence decision.
At the moment regular checks are expected only for some financial
service industries.
Regulators would monitor “regulatory, supervisory, enforcement and
market developments” in foreign countries with financial sector
regulations equivalent to the EU‘s.
EU supervisory authorities could also in some cases request “on-site
inspections” as part of coordinated monitoring with foreign regulators, the
draft document said.
EU watchdogs will be given more staff and money to fulfil these new tasks,
the proposal said.
The Paris-based European Securities and Markets Authority will receive
more resources because it will have to monitor more foreign regulatory
regimes.
The EU has so far adopted decisions that could allow equivalence status
for a variety of eligible foreign sectors ranging from credit rating agencies
and accounting to investment firms and insurance.
The United States, China, Japan, Canada and South Korea are among
the countries having reached equivalence agreements with the EU for
specific financial sectors.
The Commission’s legislative proposal, expected to be published on
Wednesday, will need the approval of EU states and European
lawmakers.
The draft document also set aside earlier ideas for merging the three EU
financial sector regulators, which monitor markets, insurers and banks,
amid the EU states’ wrangling over which member nation would host one
of the three, the European Banking Authority, when it moves from London
after Brexit.
Under the proposal, the supervisors would see their powers strengthened
to monitor EU firms, from funds and insurers to financial technology
developers.
Their increased costs will in part be met by the industry.
(Reporting by Francesco Guarascio; Editing by Greg Mahlich)
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China central bank backs mortgage rate hikes in capital Tuesday 19th September, 2017 – Reuters
China’s central bank supports a move by some banks to increase lending
rates on mortgage loans in the Beijing market, state broadcaster China
Central Television (CCTV) on Tuesday quoted the central bank as saying.
Mortgage lending rates that are 5 percent to 10 percent higher than the
benchmark lending rate have become “a mainstream phenomenon” in
Beijing, the business management department of the People’s Bank of
China (PBOC) said.
The banks’ move was “in line with the policy direction”, it added.
(Reporting by Beijing Monitoring Desk and Yawen Chen)
<< Back to news headlines >>
China stocks slip as liquidity concerns weigh Tuesday 19th September, 2017 – Reuters
China stocks slid on Tuesday, with traders awaiting clues on U.S. monetary
policy from the Federal Reserve meeting and as caution prevailed over
potentially tight liquidity before the National Day holiday.
The blue-chip CSI300 index fell 0.3 percent, to 3,832.12 points, while the
Shanghai Composite Index shed 0.2 percent to 3,356.84 points.
At a two-day meeting beginning later on Tuesday, the Fed is expected to
take another step toward policy normalisation and announce plans to
begin unwinding its $4.2 trillion portfolio of Treasuries and mortgage-
backed securities.
China Investment Securities (HK) said it expects the Fed to “reduce its
balance sheet gradually, thus, the initial impact on the capital markets
would be limited”.
Investor risk appetite has also been curbed by a mixed bag of recent
China economic data showing signs of a slowdown in some areas of the
economy, such as fixed-asset investment, but resilience elsewhere, such
as stronger-than-expected lending.
There are emerging concerns over seasonal liquidly stress toward the end
of the third quarter, due to the week-long National Day holiday and
central bank health checks on commercial banks.
China’s stock market, dominated by retail investors, usually succumbs to
outflows ahead of long holidays as investors pull money out for
consumption.
A type of three-week interbank borrowing rate rose to over 4.9 percent on
an average weighting on Tuesday morning, the highest in three months,
as the holiday starting on Oct. 1 approaches.
Most sectors lost ground, led by healthcare and infrastructure firms.
But real estate companies continued to outperform with a 1.7 percent
gain, tracking the Bull Run in Hong Kong for domestic developers.
Analysts widely expect strong gains in Hong Kong to spur investors to seek
bargains in mainland peers, as leading developer China Evergrande has
rocketed nearly 500 percent so far this year.
China’s real estate investment growth picked up pace again in August as
demand held up despite various government curbs.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Jacqueline Wong)
<< Back to news headlines >>
Iraq oil min says premature to decide on future of output deal Tuesday 19th September, 2017 – Reuters
OPEC and other oil producers are discussing several options for their
supply-cut pact, including an extension and a further cut, but it is
premature to decide on what to do beyond March, when the agreement
expires, Iraq’s oil minister said on Tuesday.
OPEC and producers including Russia have agreed to reduce output by
about 1.8 million barrels per day until March 2018 in a bid to reduce global
oil inventories and support oil prices.
“It is premature to come to a conclusion or decision seven months before
March. There are talks, dialogues and an exchange of visions,” Jabar al-
Luaibi told an energy conference in the United Arab Emirates.
He said some oil producers think the pact should be extended for three or
four months, others want an extension until the end of 2018, while some,
including Ecuador and Iraq, think there should be another round of supply
cuts.
“There are proposals and there are ideas... I don’t think it will be
implemented but it will be considered and studied,” Luaibi told Reuters in
an interview when asked whether Baghdad will be pushing for a further 1
percent cut when OPEC meets next in November.
“The market now is reaching a good position of stabilization. There is an
improvement in the market, so let us wait (and see) how the improvement
gets from now until March. It is very early now to judge and decide what
to do,” Luaibi said.
Iraq does not see the need for more output cuts now, but if there is a
need the country will support consensus within the Organization of the
Petroleum Exporting Countries, Luaibi said.
OPEC discussed cutting its oil output by a further 1-1.5 percent when it
met in May, sources told Reuters, and could revisit the proposal should
inventories remain high and continue to weigh on prices.
Iraq’s oil supply cuts are around 260,000 barrels per day, exceeding its
planned share, Luaibi said.
Under the agreement, Iraq is required to cut output by 210,000 bpd to
4.351 million bpd.
Luaibi also said that while oil prices are determined by the market, a
range of $55 to $60 a barrel is better for everyone. He added that Iraq is
focusing on increasing its market share in Asia, particularly to China and
India, and that he will be visiting those countries soon.
(Reporting by Rania El Gamal; editing by Jason Neely)
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U.S. current account widens sharply in second quarter Tuesday 19th September, 2017 – Reuters
The U.S. current account deficit jumped to its highest level since 2008 in
the second quarter amid a decline in both secondary and primary
income.
The Commerce Department said on Tuesday the current account deficit,
which measures the flow of goods, services and investments into and out
of the country, increased to $123.1 billion from a downwardly revised
$113.5 billion in the first quarter.
That was the highest level since the fourth quarter of 2008. Economists
polled by Reuters had forecast the current account deficit slipping to
$115.1 billion from a previously reported $116.8 billion shortfall.
The second-quarter current account deficit represented 2.6 percent of
gross domestic product, the largest since the first quarter of 2016, up from
2.4 percent in the first quarter.
The current account deficit has dropped from a record high of 6.3
percent of GDP in the fourth quarter of 2005 as rising domestic oil
production and lower global oil prices curbed the import bill.
In the second quarter, the surplus on primary income – which includes
investment income such as dividends, and employee compensation -
decreased by $2.9 billion.
The deficit on secondary income, U.S. government grants, pensions, fines
and penalties, and worker remittances surged by $7.5 billion in the second
quarter.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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U.S. import prices post biggest gain in seven months Tuesday 19th September, 2017 – Reuters
U.S. import prices recorded their biggest increase in seven months in
August as the cost of petroleum surged and there were also signs of a
pickup in underlying imported inflation.
The Labor Department said on Tuesday that import prices jumped 0.6
percent last month, the biggest gain since January, after a downwardly
revised 0.1 percent dip in July.
Economists polled by Reuters had forecast import prices increasing 0.4
percent in August after a previously reported 0.1 percent gain in July.
In the 12 months through August, import prices surged 2.1 percent after
rising 1.2 percent in July. The year-on-year increase in import prices has
slowed sharply since posting 4.7 percent in February, which was the
biggest advance in five years.
Last month, prices for imported petroleum raced 4.8 percent after slipping
0.4 percent in July. Import prices excluding petroleum rose 0.3 percent
after dipping 0.1 percent the prior month. Import prices excluding
petroleum increased 1.0 percent in the 12 months through August.
Import prices outside petroleum are rising as the dollar’s rally fades. The
dollar has weakened 8.3 percent against the currencies of the United
States’ main trading partners this year.
The report also showed export prices rose 0.6 percent in
August after gaining 0.5 percent in July. They increased 2.3 percent year-
on-year after rising 0.9 percent in August.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)
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Eying snap election, Japan's Abe to focus on education, security Tuesday 19th September, 2017 – Reuters
Pledges to spend on education and child care, stay tough on North
Korea and revise the pacifist constitution are likely to be pillars of
Japanese Prime Minister Shinzo Abe’s campaign in a snap election next
month, government sources said on Tuesday.
Abe is expected to announce on Monday that he will call a general
election on Oct. 22 to take advantage of a rebound in his damaged
approval ratings and disarray in the opposition, ruling party and
government sources said.
The Prime Minister, whose ratings have recovered from below 30 percent
in July, is betting his ruling bloc can at a minimum retain a simple majority
in the chamber and at best keep the two-thirds super-majority needed to
achieve his long-held goal of revising the constitution to clarify the
military’s role.
A solid victory would boost Abe’s chances of a third term as ruling Liberal
Democratic Party (LDP) leader in a party election next September, putting
him on track to become Japan’s longest-serving premier. “That is his
biggest goal,” said veteran independent political analyst Minoru Morita.
Abe’s support rose 6.5 points to 50.3 percent in a poll conducted over the
weekend by the Sankei newspaper and the Fuji News Network, while
backing for the LDP was at 38 percent compared to 6.4 percent for the
main opposition Democratic Party.
Abe wants to go ahead with a planned rise in the nation’s sales tax to 10
percent from 8 percent and use some of the revenue to create a “social
security system for all generations”, which would invest in education while
decreasing the proportion of sales tax revenue used to pay down
government debt, the sources said.
Japan’s social welfare system is weighted toward spending on the elderly,
with people aged 65 and over accounting for a whopping 27.7 percent
of the population according to the latest government data.
“You can promise anything you want - make a nod toward a more
equitable society, empowering women, work-life balance, welfare for all
generations,” said Jeffrey Kingston, director of Asian studies at Temple
University Japan.
“He’s got a strategy that is going to win.”
Using less tax revenue to pay down debt, however, would make more
difficult an already ambitious pledge to balance the budget - excluding
debt-servicing and new bond sales - by the year through March 2021.
That could in turn raise concerns about less rigid fiscal discipline.
“We have to maintain fiscal discipline, regardless,” Finance Minister Taro
Aso told reporters when asked about reports of such a shift.
Abe has said he will decide on a snap election after he returns from the
United States on Friday.
The opposition Democrats are struggling not only with single-digit support
but also a raft of defections.
And while the nascent “Japan First” party, which boasts ties to popular
Tokyo Governor Yuriko Koike, could attract votes, it has yet to draft a
platform, pick candidates or formally register as a party.
That means the LDP and its junior coalition partner, the Komeito, have a
shot at retaining their two-thirds majority in the lower house, political
analysts said.
However, some analysts believe Abe’s electoral base could be
undermined by voter distaste over suspected cronyism scandals and
concerns about creating a political vacuum even as North Korea raises
tensions with its nuclear and missile tests.
“I don’t dismiss the possibility of the voters giving Abe a nasty surprise,”
said Gerry Curtis, professor emeritus at Columbia University in New York.
(Additional reporting by Stanley White; Writing and additional reporting by
Linda Sieg; Editing by Chris Gallagher, Kim Coghill and Simon Cameron-
Moore)
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Japanese stocks' market cap hits record high of $5.49 trillion Tuesday 19th September, 2017 – Reuters
The value of Japanese stocks hit a record high on Tuesday, hitting a
welcome milestone for Prime Minister Shinzo Abe, who might call a snap
election soon in a bid to bolster his power.
The total market capitalisation of more than 2,000 Japanese companies
listed on the Tokyo Stock Exchange’s main board hit 613.7 trillion yen
($5.49 trillion), surpassing the 609.6 trillion yen reached in August 2015.
The market got a renewed boost on Tuesday from easing concerns over
North Korea and hopes of a snap election that could solidify Abe’s
position.
The Topix index, which covers all shares listed on the TSE’s main board, hit
a two-year high of 1,669 on Tuesday, near its 2015 peak of 1,703.
The index is still way below its record peak of 2,885 touched in 1989.
At present, the number of listed firms is 2,027, compared with 1,161 in 1989.
“Investors are buying, as Japanese shares had been a bit of laggard as
share prices in many places are hitting record highs,” said Nobuhiko
Kuramochi, Chief Strategist at Mizuho Securities.
While the increase in the value of stocks may please investors, some
market players also noted Japan’s economic growth has not gained as
much momentum as expected despite Abe’s massive stimulus.
Japanese market cap now is more than 110 percent of Japan’s gross
domestic product (GDP), the highest level since the early 1990s.
Veteran investor Warren Buffett has said the ratio is one of the best
measure of stocks’ valuation, with figures above 100 percent seen as
suggesting share prices are on the expensive side historically.
Still, analysts say the Tokyo market does not seem to be that expensive by
some other yardsticks.
The market’s price-to-earnings ratio, based on 12-month forward earnings,
is around 14.5.
“Japanese stocks are still cheap. Earnings are pretty good and we can be
sure that there will be a lot of upward revisions when companies
announce half-year results (next month),” said Shingo Ide, chief equity
strategist at NLI Research Institute.
When Abe took office in December 2012, the market value was 289 trillion
yen - 53 percent less than Tuesday’s figure.
($1 = 111.69 yen)
(Reporting by Hideyuki Sano; Editing by Richard Borsuk)
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SBA president: Budget should focus on agriculture, manufacturing Tuesday 19th September, 2017 – Trinidad and Tobago Guardian
President of the San Fernando Business Association (SBA) Daphne Bartlett
is saying that the Government's biggest emphasis for the upcoming
budget should be on the agriculture and manufacturing sectors.
“Immediate diversification plans should be focused on agriculture like
rural farming, sheep and goat. We look at the export market and we are
talking about hot peppers. We import a lot of milk and we had a solid
dairy farming sector in the past. We need to work on that,” she told the
Guardian by phone yesterday.
Another proposal made was to restructure social programmes like CEPEP,
and divert some of that labour into productive agriculture sector
initiatives.
“The Government does not have to spend additional money there as it
would have already been allocated to programs such as CEPEP. Many of
the things we import, we can employ people to plant those same
agriculture products. That does not need to be a five year program, we
can do that in three months.”
She also spoke about the cocoa industry and utilizing it to provide
employment and spur small businesses who use it as a value chain to
make chocolates.
The San Fernando Business Association also wants to focus on the
manufacturing sector as a driver of both employment and export.
“We need more emphasis on manufacturing because when you
manufacture we prevent the importation of similar products and these
same companies can export and get foreign exchange. We also have to
encourage more young people to get into manufacturing.”
She said that the public sector companies are too inefficient and the
Government has to fix this to stop the wastage, especially when the
country is in a recession.
“Look at WASA and other similar companies. They cost tax payers billions
every year. There has to be greater productivity. Are we getting our value
for money in the public sector? The answer is no.”
According to Bartlett, the tourism sector should also play a greater role in
government's diversification efforts going forward.
“Turtles leave as far as Madagascar to come to Trinidad to nestle and lay
their eggs. We do have foreigners coming to Grand Riviere to look at the
turtles but we can market those in a much bigger way. We also have to
upgrade areas where tourists visit.”
<< Back to news headlines >>
iQOR executive: Local absenteeism rate unacceptably high Tuesday 19th September, 2017 – Trinidad and Tobago Guardian
Despite facing the problem of a 20 per cent absenteeism rate in T&T,
business process outsourcing provider iQOR is confident that the T&T
market remains a lucrative one.
Last Friday, director of operations at iQOR with responsibility for providing
customer care for Metro PCS Brian Henderson, as well as John Swain,
director of operations at iQOR with responsibility for providing customer
service to 1-800-flowers, toured iQOR's new Barataria office facilities along
with Minister of Trade and Industry Paula Gopee-Scoon.
According to Swain the rate of absenteeism in T&T was almost five times
greater than what obtained in other territories in which the company
operates
"When they (employees) decide not to come to work or don't give the
courtesy of a phone call indicating that they are not coming to work, we
call that a no call no show. We do see a higher than acceptable rate of
those who are absent. We can build into that for scheduling, we can over
hire to compensate for it, but when you see the rate at 20 per cent or
more compared to projects in the Phillipines that run four per cent, that is
a very big differential" Swain said.
In its T&T operations the company employs more than 600 people and
stated that it intends to expand by adding a further 200 employees
before 2017 ends.
Stating that the slowdown in T&T's economy is not a deterrent to doing
business here, Swain said: "We are not locked to your economy. The
products and services are not based on the T&T economy. The
companies iQOR deals with are all international. Part of the appeal is that
we are here to contribute to the local economy."
In 2015, iQor announced that it was entering the T&T market with the
strategic intention of deepening its nearshore footprint and to create jobs
in the local economy.
<< Back to news headlines >>
NGC CNG rewards CNG converts Tuesday 19th September, 2017 – Trinidad and Tobago Guardian
NGC CNG has started the distribution of incentives to maxi taxi, taxi, and
private school bus owners who have transitioned to CNG.
According to a release from the company, on Wednesday September 6,
several drivers who recently converted their vehicles to operate on CNG
as their fuel of choice, or bought CNG powered vehicles, were presented
with fuel cards by officials of NGC CNG.
The Company is mandated by the Government of T&T to accelerate the
use of CNG as a vehicular fuel, as well as increase the number of CNG
fuelling points across the country.
Earlier this year NGC CNG offered the following incentives to vehicle
owners to encourage them to switch:
- $5000 in free CNG for taxi drivers who convert to CNG
- $30,000 (large maxi) or $20,000 (small maxi) in free CNG for maxi taxi
drivers who convert to CNG
- $7,500 in free CNG to registered members of the Private School Transport
Association of Trinidad and Tobago (PSTATT) who convert to CNG
- $15,000 in free CNG to registered members of the Private School
Transport Association of Trinidad and Tobago (PSTATT) who purchase an
OEM CNG vehicle.
The free CNG is being administered via a Scotiabank fuel card.
Drivers in receipt of the incentive simply have to fill up with CNG and then
swipe their card at CNG service stations.
At the card handing over ceremony, NGC CNG officials congratulated
the first batch of seven recipients.
“This fits in well with the NGC CNG programme. This is different than free
CNG conversions, now your vehicle is fuelled by CNG and you don’t have
a fuel bill for 1-2 years,” the release said.
<< Back to news headlines >>
Exxon starts talks today on bringing natural gas to shore for electricity Tuesday 19th September, 2017 – Kaieteur News Online
The first in a series of continued discussions on commercial and power
generation issues will be held when officers of the Government of Guyana
and technical members of ExxonMobil meet in Georgetown today.
The technical working group is scheduled to convene today and
tomorrow. It will feature technical persons from the Ministry of Public
Infrastructure, Ministry of Natural Resources, Ministry of Finance, Ministry of
Business, Guyana Energy Agency, and the Guyana Power and Light Inc.,
along with ExxonMobil’s power generation specialists and analysts.
According to the Ministry of Public Infrastructure (MPI) yesterday, the
working group will focus on natural gas and the surrounding commercial
and economic issues as it relates to offshore transportation for onshore
power generation.
Compared to Guyana’s current use of liquid fuels for electricity
generation, natural gas is cleaner. Its use for energy production could
reduce the country’s fuel bill, and in turn, reduce the cost of electricity.
Guyana is heavily dependent of importation of fossil fuel for the running of
its engines across the country for fuel generation. It accounts for a major
chunk of foreign exchange with the Guyana Power and Lights Inc. (GPL)
which spends up to US$100M annually to import oil.
MPI said that the working group will continue dialogue on local and
international power generation experiences, including domestic
infrastructural requirements and considerations for the potential of natural
gas into gas-fired power generation.
It has been said that Guyana’s current engines, the majority of them
Finnish-made, by Wartsila, can easily be configured to use natural gas,
from the normal diesel and heavy oil.
“The agenda will also include an overview of commercial power
generation structures and approaches to power investment. It is expected
that capacity building for local and key technical government officials will
be the major output of the two-day session,” MPI disclosed.
ExxonMobil, a US-owned company, and its partners have discovered a
major oil deposit in its concessions about 100 miles offshore Georgetown.
A number of other wells have tapped the oil to be around 2.8B barrels of
oil.
ExxonMobil is planning to start pumping gas in 2020.
With a natural gas likely to be produced during the process, which is way
cheaper and cleaner than fossil fuel, Guyana has been talking about
configuring its engines to use natural gas. The problem will be bringing it to
the shore.
According to MPI, today’s talks will be particularly important in light of the
recent consultations held by the Ministry of Natural Resources on local
content policy and its focus on maximising benefits and value retention
from Guyana’s petroleum resources through local content and capacity
development.
“As the first of such sessions, the Government of Guyana looks forward to
furthering its understanding of the technical and key dynamics of
proposed projects in an effort to diversify the energy mix in Guyana,”
Minister of Public Infrastructure, David Patterson explained.
Patterson further emphasised that the sessions will not serve as an
occasion for negotiations or review of contractual obligations between
Guyana and ExxonMobil.
Rather, he said, “It is intended to continue dialogue, with an intended
wrap-up summary, including presentations, updating key ministries on the
joint discussions having taken place over the two day session.”
Guyana has been seriously exploring other sources of electricity with the
now infamous Amaila Falls Hydroelectric Project falling through a few
years ago.
Manufacturers have been complaining that electricity is costly and
accounts for a major part of their expenditure, making them
uncompetitive.
<< Back to news headlines >>
Maria forces CAL to cancel flights Tuesday 19th September, 2017 – Kaieteur News Online
Caribbean Airlines has announced that due to the closure of the George
F.L. Charles International Airport, St. Lucia, and strong storm force winds in
Barbados due to Hurricane Maria, a number of flights were cancelled,
yesterday.
These include BW 434- Port of Spain to St. Lucia; BW 435-St. Lucia to Port of
Spain; BW 412-Port of Spain to Barbados; BW 413-Barbados to Port of Spain
and BW 459-Kingston to Antigua.
Caribbean Airlines, in a statement, said it is allowing persons whose flights
are impacted by the impending hurricane to rebook without change
fees, subject to a number of conditions.
These include that passengers must already be in possession of a ticket
with confirmed reservations issued before yesterday.
“Passengers must be booked to travel between yesterday and tomorrow.
Changes on the routing (origin/destination) of the original booking are not
permitted. Caribbean Airlines will not be responsible for arrangements
to/from alternate airports or for any hotel/overnight expenses incurred.”
The Trinidadian/Jamaican-owned airline said that full refund (without
penalty) will be allowed on tickets issued for travel between yesterday
and tomorrow.
The last date for requesting refund is September 27, 2017.
<< Back to news headlines >>
Statement by the Honourable Prime Minister of St. Kitts and Nevis Dr. The
Hon Timothy Harris on Monday, September 18, 2017 in preparation for the
imminent passage of Hurricane Maria Monday 18th September, 2017 – SKN Vibes
My Fellow Citizens and Residents of St. Kitts and Nevis:
For the third time this month, we are faced with the challenge of an
imminent hurricane. My Cabinet is advised that Hurricane Maria is
scheduled to begin affecting our Federation later tonight, Monday,
September 18, 2017. A Hurricane warning has been issued for our
Federation. We are further advised that although the centre of the
hurricane should pass southeast of our Country, we can still expect to be
affected by hurricane-force winds for several hours. We should therefore
exercise caution and step up our preparations to minimize any risk to
ourselves, damage to property or loss of life.
In light of the approach of Hurricane Maria, I wish to advise the public that
all Independence activities scheduled for the rest of this week have been
postponed. As such, the three Independence Day activities that were
scheduled for Tuesday, September 19, 2017, have been postponed until
further notice. These events are our Independence Parade, the Toast to
the Nation at Camp Springfield, and the Independence Cocktail
Reception at Government House.
In preparation for the passage of Hurricane Maria, Government offices
closed at 2 pm today. All schools closed at 12 noon after the
Independence School Treats. A number of private sector entities have
also closed early, in order for their employees to have adequate time to
make the necessary preparations in advance of the storm.
The MET Office has advised that our coastal areas are likely to be
adversely affected by the storm. As such, persons living in low-lying and
coastal areas are being advised to move to higher ground and perhaps
seek shelter with relatives and friends for the duration of the storm. Areas
that are particularly vulnerable are Newtown and Irish Town Bay Roads,
and the entire coastal zone that spans from Camps through to Sandy
Point/Belle Tête.
I wish to advise that in all communities one hurricane shelter will be
opened in advance of the storm as a means of accommodating persons
whose housing conditions may be vulnerable. However, in Districts four (4)
and eight (8) there will be two centres opened: in District four, the centres
which will be opened are the community centres in Challengers and Old
Road; in District eight, the Community Centres in St. Peter’s and Cayon will
be opened. I encourage persons seeking shelter to do so with urgency
NOW. Early action can save your life and that of others.
I am again appealing to all citizens and residents to heed all weather
advisories and precaution tips that are being issued by our MET Office and
other official sources of hurricane information. We also wish to advise
persons to remain indoors once weather conditions begin to deteriorate.
Our security forces will remain on high alert to ensure the safety and
security of all citizens and residents.
My fellow citizens and residents: As Hurricane Maria approaches our
Federation, I implore you not to take our individual and collective safety
and security for granted. Do all that is necessary to protect yourself, your
families and your properties.
Let us also be mindful of the need to be our brother’s keeper. We must
also look out for the interests of our vulnerable citizens, such as the elderly,
our children and persons with disabilities. Let us all offer up our Nation to
God.
May God keep His Divine Hand of Protection upon us.
<< Back to news headlines >>
Flood warning extended until noon Tuesday 19th September, 2017 – Nation News
The Flood Warning for Barbados remains in effect until noon today.
The Barbados Meteorological Services said at 5 a.m. Hurricane Maria was
located near 16.0 °N, 62.3°W or about 65 miles (100 km) west-southwest of
Guadeloupe.
Maria will continue to track westward into the eastern Caribbean Sea
over the next several hours.
However, feeder bands trailing south and south-westwards from this
system have been producing pockets of moderate to heavy showers,
scattered thunderstorms and gusty winds across Barbados and the
southern Windwards during the overnight hours.
This activity is expected to persist during the day with further rainfall
accumulations of at least three to four inches (75 – 100mm) likely during
the next 12 hours. This could result in further flooding.
In addition, large waves and dangerous rip-currents generated by the
strong low-level southerly winds will continue to spawn high surf and
dangerous rip currents, creating unsafe conditions for small craft
operators.
Sea-bathers and other users of the sea are also advised to stay out of the
water particularly at times of high tide when these conditions could
become even more adverse.
Thus, the High Surf Advisory and Small Craft Warning also remain in effect.
A High-Surf Advisory is issued when breaking wave action poses a threat
to life and property within the surf zone.
A small-craft Warning means in this case that seas equal to or greater
than 3m (10ft) and wind speeds of 23 to 29 mph (37 to 47 km/h) will be
affecting the marine area.
This statement will be updated as conditions warrant.
<< Back to news headlines >>
IMF projects 1.75% growth in 2017, 2.5% in 2018 Monday 18th September, 2017 – The Nassau Guardian
The Executive Board of the International Monetary Fund (IMF) projected in
its Article IV consultation with The Bahamas that this country’s real GDP
(gross domestic product) growth will pick up to 1.75 percent in 2017 and
to 2.5 percent in 2018, driven in part by a strong U.S. economy, the
phased opening of Baha Mar and related construction activity.
The IMF added that post-hurricane reconstruction following Hurricane
Matthew last year and an uptick in foreign direct investment-financed
projects, should also support The Bahamas’ economic recovery.
“However, medium-term growth would remain low, reflecting significant
structural bottlenecks,” the IMF executive board’s opinion stated.
“Economic activity remained weak in 2016. Hurricane Matthew, which hit
The Bahamas in October last year, significantly impacted tourism activity
in 2016 and early 2017. However, completion of the mega-resort, Baha
Mar, and post-hurricane reconstruction activity provided a boost to job
creation, with the unemployment rate declining to 9.9 percent in May
2017 (down from 11.6 percent in November 2016).
“The opening of Baha Mar in April increased employment further by
creating 2,000 new jobs in the three months to July. Inflation remains low
and stable.
“Executive directors welcomed the expected pick-up in near‑term
growth, driven by a stronger U.S. economy and the phased opening of
Baha Mar.
“However, they noted that the economy continues to face significant
challenges, including from structural bottlenecks and rising public debt.”
The IMF directors, however, were receptive to the government’s promise
of, and strong commitment to, fiscal discipline.
“Continued strong fiscal consolidation and monetary and financial sector
policies, as well as deeper structural reforms are necessary to generate
stronger growth, improve competitiveness, tackle unemployment and
enhance resilience to natural disasters,” the directors’ consultation
statement said.
The IMF, in the statement, “expressed solidarity” with The Bahamas and
other countries that are grappling with the impacts of Hurricane Irma.
The IMF also warned against the Bank of The Bahamas (BOB) debacle
getting out of hand. The IMF underscored that “finding a permanent
solution for Bank of The Bahamas is necessary to reduce fiscal
contingencies”.
The bank recently shed some bad loans from its portfolio in an effort to
improve its position on paper. The bank sold $166 million of toxic loans to a
special purpose vehicle that will attempt to liquidate the assets.
Meantime, IMF directors “called for a faster resolution of nonperforming
loans to strengthen financial stability and support economic recovery”.
<< Back to news headlines >>
OCG to Oversee Multimillion$ Junction Road Project Tuesday 19th September, 2017 – Jamaica Gleaner
Contractor General Dirk Harrison has said that his office will be monitoring
the more than $600-million road project in St Mary that was announced by
the Andrew Holness administration last week.
The value of the project includes the works component and management
fees for the contractors.
The People's National Party (PNP) had written to the Office of the
Contractor General, asking the oversight body to monitor the works to be
carried out on the Junction corridor that links Kingston and St Andrew to
the parishes of Portland and St Mary.
Harrison told The Gleaner yesterday that his office will provide oversight
and report its findings.
General secretary of the PNP, Julian Robinson, said the party's call for the
contractor general to monitor the major roadworks in St Mary comes
against the background of the Government's $600-million debushing
exercise that triggered extensive public debate.
Harrison, who conducted an investigation into the debushing work,
reported to Parliament that the project had deviated from government
guidelines and that the selection of the five contractors lacked
transparency and accountability.
The contractor general had also said that three government ministers may
have lied about their role in selecting contractors, subcontractors and
setting payment terms in the execution of the controversial exercise
carried out in the run-up to the local government elections.
Addressing journalists at a press conference yesterday at the People's
National Party PNP headquarters, Old Hope Road, St Andrew, Julian
Robinson said his party had no issue with proposed repairs to the Junction
road, noting that the late St Mary South East Member of Parliament, Dr
Winston Green, had made representation to the Government for the work
to be done.
A by-election is to be called by Holness and both the PNP and Jamaica
Labour Party (JLP) have hit the campaign trail in a battle to win a seat
where only five votes separated the candidates in the 2016 general
election.
"We don't have an issue with the road being repaired. We have an issue
with two things - [first], there needs to be an assurance that there is value
for money in the work that is done, and, second, that the work is
managed in a way that is fair and transparent, so that you don't have
public funds being used corruptly, as was done in the debushing project
prior to the local government elections to influence the outcome of a by-
election."
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Jamaica to steer UNWTO disaster recovery program for Caribbean Tuesday 19th September, 2017 – Caribbean News Now
Jamaica’s Minister of Tourism, Edmund Bartlett, has been appointed as
the coordinator of the United Nations World Tourism Organization’s
(UNWTO) newly-formed disaster recovery working group for the affected
states in the Caribbean.
The program was formed to meet the needs of member states that have
been recently impacted by powerful natural disasters such as hurricanes,
tropical storms and earthquakes.
Speaking at a special meeting of the newly convened recovery program,
Secretary General of the UNWTO, Taleb Rifai, said, “We cannot just stand
still – it is not right. I really want to make a difference. I hope that we can
leave this place with lines of action we can pursue. So, my suggestion is to
formalize the group. If Minister Bartlett is okay with this, he can be in
charge of getting you together.”
Virtual weekly meetings were proposed for members from countries such
as USA, Spain, Barbados, Honduras, Puerto Rico, Venezuela, Cuba,
Nicaragua, Costa Rica, Jamaica, Haiti, Mexico, and France – who were
all in attendance.
Heads of delegations provided an update on the state of their countries
and expressed gratitude for this positive showing of solidarity, which will
allow them to benefit from an increased pooling of resources.
“I think that the next step would be for us to connect with Caribbean
Tourism Organization and the Caribbean Hotel and Tourism Association
and perhaps to do a technical visit from the UNWTO. So we three can get
together to figure out the hard action we can take as we prepare for the
November meeting, which will then outline a full plan of action,” Bartlett
said.
Rifai lamented that he believes it is very “difficult for tourism infrastructure
and stakeholders to make a difference, as the initial impact of any
disaster is human relief and other activities that are not part of what we
can do best.”
He did however emphasize, that help can be offered from the group in
three ways.
“Firstly, we should encourage anything possible to make the recovery
speedy. Secondly, communication is absolutely crucial and important. We
should also concentrate on job loss and businesses lost. I think that’s as
much as we can do because realistically speaking we’re not the Red
Cross, we are not the International Food Program, which is what people
need at this time.
“What we can do is utilize our tourism infrastructure. For example, many of
your destinations are visited by cruise ships; this is the time that we need
them to pay their dues to these islands,” he explained.
The ‘UNWTO, Government of Jamaica and World Bank Group Global
Conference on Jobs and Inclusive Growth: Partnerships for Sustainable
Tourism’, scheduled for November 27-29, 2017, was also highlighted as the
ideal platform to host these discussions publicly, as well as provide an
update on the status of the working group.
Rifai, however, shared that much work has to be done before the
conference and offered to share a fulsome report with all heads of UN
bodies, as they have access to resources to which the UNWTO is not privy.
<< Back to news headlines >>
Dominica devastated Tuesday 19th September, 2017 – Nation News
The Nature Isle has been battered by Mother Nature again. A little over
two years to the day after being pummelled by Tropical Storm Erika, the
island of Dominica was last night reeling from the effects of Hurricane
Maria.
The Category 5 storm slammed into Dominica in the late evening
Monday, and Prime Minister Roosevelt Skeritt couldn’t escape its wrath, as
strong winds blew off the roof of his official residence in the capital of
Roseau.
A despondent Skeritt reached out to his regional neighbours for help late
last night, even as the eye of the hurricane was directly over Dominica.
“Please let the world know Dominica has been devastated,” the Prime
Minister told the Nation Online by mobile-phone link up around 11.30 p.m.
Monday. “We do not know how many are dead, if any. We shall know in
the morning. The hurricane is still on. We were brutalised by the hurricane
tonight.”
Skeritt said he had to be rescued from his official residence by police
officers after the roof to the house became an unidentified flying object,
having succumbed to 160 mile per hour hurricane force winds.
“I am now in the flooded basement, but I am safe,” the Prime Minister
confirmed. “My roof is gone. I am at the complete mercy of the hurricane.
House is flooding,” he added.
Maria had been a Category 4 system most of Monday, but generated
significant strength late into the evening, as it bore down on Dominica,
and the French Islands, Martinique and Guadeloupe.
Just before midnight a number of islands were under Hurricane Warning in
the face of Maria’s wrath, inclusive of Guadeloupe, St Kitts, Nevis,
Montserrat, the US Virgin Islands, Puerto Rico and the British Virgin Islands.
Ham radio operators were also reporting last night that Maria had
destroyed numerous houses in Dominica.
The damage to Dominica is especially troubling, as the nature isle is only
just recovering from Tropical Storm Erika, which drenched the island with
over ten inches of rain on August 27, 2015, killing 30 people and causing
over EC$100 million in damage.
<< Back to news headlines >>
