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▪ 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!

Credit Report Writing Skills 27th May 2019 Trinidad

Enterprise Risk Management 26th & 27th June 2019 Jamaica

Benefits of a CariCRIS Rating to a Corporate Entity:

Latest Rating Actions by CariCRIS

• Improve relationships with creditors with an independent, objective

assessment of business

• Strengthen your governance and hedge against business risk

• Attract investors to raise money in capital markets

• Detect credit deterioration early and focus your management on

hedging risks

•

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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

Scotia takes the lead

Overall stock market activity yesterday resulted from trading in 19

securities of which five advanced, seven declined and seven traded firm.

Imbert: Train One, Dragon will not collapse economy

Finance Minister Colm Imbert says a fall off of 100 million cubic feet by

BPTT and a delay in the Dragon gas field will not collapse the economy.

NCB completes GHL takeover

The Jamaican conglomerate NCB Financial Group Ltd and its subsidiary

NCB Global Holdings Ltd have successfully completed its takeover of

Trinidadian insurance giant Guardian Holdings Ltd. NCB made the

announcement on Monday via a news release.

Toyota predicts flat year for vehicle industry

Due to the challenging economic period in Trinidad and Tobago, Toyota

is expecting limited growth for the vehicle industry.

Barbados

Barbados’ waters no dumping ground

Minister of Maritime Affairs and the Blue Economy Kirk Humphrey is

warning ship operators that Barbados will not tolerate any littering within

its marine space.

Pay day

Eighty-three retrenched workers of the Ministry of Transport and Works are

now set to receive their gratuity payments.

Jamaica

Hub Coworking expands in joint venture deal with Kingston Creative

Hub Coworking Limited and non-profit group Kingston Creative have

formed a joint-venture partnership on a coworking location in downtown

Kingston by midyear.

Jamaica continued

Loshusans venturing into Mandeville

The Loshusan family plans to build a shopping complex in Mandeville at

Caledonia Drive on lands that currently house a Shoppers Fair

supermarket, an inside source revealed.

Tullow wants to drill for oil in 2020

Tullow Oil wants to drill for oil in select countries next year, including

Jamaica, where it recently concluded a 3D seismic survey with promising

results.

Herald Printers in expansion mode

Founded in the days when words could only be printed using a letterpress

machine, 97-year-old local print company Herald Printers now has its eyes

on the US$664-billion ($90.3-trillion) global home décor industry as it seeks

to secure a larger share of the print market.

DBJ awards grants to seven companies prepared by Branson Centre

Seven companies prepared by Branson Centre Caribbean have been

awarded grants from the Development Bank of Jamaica's (DBJ) IGNITE

programme which represents the largest grant pool for the second

instalment of the project.

Hylton takes on Guardian role from Lok Jack

Group president and chief executive officer of the National Commercial

Bank Financial Group (NCBFG), Patrick Hylton, has been appointed

chairman of Guardian Holdings Limited (GHL) effective May 9.

$B Water Rescue

Prime Minister Andrew Holness yesterday announced a number of

initiatives aimed at reducing the impact of worsening drought conditions

that have been affecting the Corporate Area and St Catherine in

particular.

46 firms cited for plastic ban breaches

Five months after the Government imposed a ban on the use, distribution,

and manufacturing of specified single-use plastic carrier bags, 46

establishments have been served compliance notices for various

breaches of the prohibition.

Antigua and Barbuda

Barbudan business owners to benefit from small grant

A Barbudan, who has partnered with the Barbuda Resilience Fund at the

International Community Foundation, has made it possible for a few

entrepreneurs whose businesses were ravaged by Hurricane Irma in 2017

to benefit from a grant-funding project.

British Virgin Islands

VI accounts reportedly affected in FirstBank 'security breach' - Account

holders urged to report suspicious activities ‘immediately’

With reports that the FirstBank branch in neighbouring United States Virgin

Islands (USVI) has been cancelling debit cards of account holders,

following an external security breach, Virgin Islands News Online (VINO)

understands that some accounts in the Virgin Islands (BVI) have also been

affected.

State of internet service hampering economic growth- Premier Fahie- To

meet urgently with telecommunications companies to address

‘technological crisis’

The state of internet service in the Territory has been described as a

“technological crisis” by Premier and Minister of Finance Honourable

Andrew A. Fahie (R1), who says he intends to urgently summon heads of

the various telecommunications companies to address the issues.

Costa Rica

Costa Rica Formalized US$111 Million Dollar Loan For Water Projects

The Instituto Costarricense de Acueductos y Alcantarillados (AyA) – Costa

Rica’s water and sewerage utility and the Central American Bank for

Economic Integration (Cabei) closed a US$111.3 million-dollar loan

agreement to partially finance an aqueduct and sewerage program for

Atlantic and Pacific coastal areas.

U.S. FAA Downgrades Costa Rica’s Air Safety Rating

The new rating means Costa Rica’s carriers, Volaris and Avianca Costa

Rica*, can continue existing service to the United States but will not be

allowed to establish new service to U.S. destinations.

Costa Rica continued

Russia Ready to Diversify Costa Rica’s Energy Market Monopolized By US

Russia is willing to help Costa Rica diversify its petroleum products market,

which at present is fully dependent on the United States, said Alexey

Kudachkin, Charge d’affaires a.i. of the Russian Federation.

The Bahamas

Albany Closes in On South Ocean Deal

Albany’s developers are getting closer to acquiring their 383-acre

neighbour, Tribune Business can reveal, after all South Ocean staff were

last week told to report to its human resources unit.

Water Corp Cuts Debts By $7.4m

The Water & Sewerage Corporation’s debt to its main BISX-listed supplier

was slashed by $7.4m in April 2019, financial filings have revealed, with the

balance owing cut to $11.6m.

GDP Grows By 1.6% But It's Below IMF's 2.3% Prediction

THE country’s real gross domestic product grew by 1.6 percent last year

compared to 2017, new data from the Department of Statistics reveals.

The Dominican Republic

Resilience drove Dominican Republic 5.7% GDP growth in 1Q

Central Banker Héctor Valdez Albizu, on Tues. said Dominican Republic’s

GDP grew 5.7% during the January-March 2019 period.

Reclassification of companies stalls wage hike talks

Union leaders on Tuesday walked out of the talks between labour and

management leading to a salary increase, over a dispute on the

reclassification of companies, and announced protests to voice their

demands.

Grenada

IMF predicts 3.5% growth for Grenada

Head of the International Monetary Fund Article IV Consultation to

Grenada, Bogdan Lissovolik is projecting that economic growth for the

island this year, 2019 will be 3.5 per cent.

St. Lucia

Prime minister, agriculture minister in London for meetings on new markets

The government of Saint Lucia recognizes that a successful agriculture

industry is critical to the sustainable development of Saint Lucia. Hence,

the government continues to enhance and source markets for the island’s

new and emerging crops as well as current crops such as bananas.

Saint Lucia’s tourism minister issues challenge to Caribbean rum producers

Caribbean rum producers have been challenged to fully exploit the

potential of the regional tourism industry to build their brands.

INTERNATIONAL

United States

Futures dip after China data shows slowing retail sales

U.S. stock index futures slipped on Wednesday, as grim data out of China

cast a shadow over market sentiment, while investors awaited more

developments related to the U.S.-China trade dispute.

Trump expected to sign order paving way for U.S. telecoms ban on

Huawei

President Donald Trump is expected to sign an executive order this week

barring U.S. companies from using telecommunications equipment made

by firms posing a national security risk, paving the way for a ban on doing

business with China’s Huawei, three U.S. officials familiar with the plan told

Reuters.

United Kingdom

May to launch new push on her Brexit deal next month

British Prime Minister Theresa May will launch another push next month to

approve Britain’s exit from the European Union before the summer break,

setting a new deadline for her Brexit plan and a potential timetable for

her own departure.

United Kingdom continued

UK PM May says she will not pay for EU market access after Brexit

Britain will not pay for access to the European Union’s market after it has

left the bloc, Prime Minister Theresa May said on Wednesday.

No-deal Brexit risk is under appreciated, Britain's Brexit minister says

There is an under appreciation of the risk Britain could leave the European

Union without a deal later this year, Brexit minister Stephen Barclay said on

Wednesday.

Europe

Euro zone economy accelerates in first-quarter as Germany rebounds

The euro zone economy accelerated quarter-on-quarter in the first three

months of the year, the EU’s statistics office confirmed on Wednesday,

thanks to a rebound in the biggest economy Germany and the end of a

technical recession in Italy.

Italian budget worries knock European shares lower

Italian shares led losses in Europe on Wednesday after the country’s

deputy prime minister said Rome was ready to break EU fiscal rules,

masking early gains fuelled by optimism around U.S.-China trade rhetoric.

German data fails to lift euro from one-week low

The euro held at a one-week low on Wednesday, ignoring data from

Germany that showed the economy returned to growth in the first

quarter, as trade tensions between the world’s two biggest economies

cast a shadow over risk appetite.

China

Tencent books record, estimate-busting first-quarter profit, boosted by

investment gains

Tencent Holdings Ltd posted record quarterly profit on Wednesday,

smashing market expectations, as the social media and gaming giant

booked a rise in the value of its investments while fintech and cloud

computing make up for declines in games.

China says it will support firms in boosting R&D spending

China will support firms in boosting their spending on research and

development, state television cited the cabinet as saying on Wednesday.

China continued

China's retail sales growth slumps to 16-year low as trade war risks rise

China reported surprisingly weaker growth in retail sales and industrial

output for April on Wednesday, adding pressure on Beijing to roll out more

stimulus as the trade war with the United States escalates.

No easy options for China as trade war, U.S. pressure bite

China is running out of options to hit back at the United States without

hurting its own interests, as Washington intensifies pressure on Beijing to

correct trade imbalances in a challenge to China’s state-led economic

model.

Japan

SoftBank leads $200 million investment in India's Grofers

Japan’s SoftBank Group Corp has led an investment round of more than

$200 million in online grocery start-up Grofers India through its Vision Fund,

the New Delhi-based company said on Wednesday, upping competition

in a hotly chased market in the country.

Apple supplier Japan Display cannot promise return to profit, bailout

worries stay

Cash-strapped Japan Display warned it cannot guarantee a return to

profit this year as demand for smartphone screens stays weak, and turned

in yet another quarterly loss, casting doubt over its proposed bailout deal

with a Chinese-Taiwanese group.

Profits fall at Japan's top three banks as economy slows

Japan’s three largest banks all reported lower annual profits on

Wednesday, highlighting the challenges faced by the banking industry as

the world’s third-largest economy looks to be headed for another

downturn.

India

Next government seen relying on RBI rate cuts to spur growth

India’s slowing economy will need a boost soon after the current election

but budget stresses mean New Delhi probably has to rely on the Reserve

Bank of India to provide it through more interest rate cuts, according to

two senior finance ministry officials.

Global

Rising U.S. oil output helps fill gap left by Iran, Venezuela

The world will require very little extra oil from OPEC this year as booming

U.S. output will offset falling exports from Iran and Venezuela, the

International Energy Agency said on Wednesday.

Rise of smaller rivals throws up fresh challenge to bitcoin

Bitcoin’s weathered hacks, heists, booms and busts to reign as the king of

cryptocurrencies through its first decade. But now there’s a fresh

challenge to its dominance of the fledgling market: some 2,000 smaller

digital coins.

Hub Coworking expands in joint venture deal with Kingston Creative Wednesday 15th May, 2019 – Jamaica Gleaner

Hub Coworking Limited and non-profit group Kingston Creative have

formed a joint-venture partnership on a coworking location in downtown

Kingston by midyear.

The new location will double the size of the meeting rooms operated by

the Hub Coworking from nine to 18.

“This will be our second coworking space. It will be a niche location which

targets creatives,” said Joelle Smith, co-founder of Hub Coworking, which

operates from New Kingston. Smith leads Hub Coworking as managing

director. The other partners include Renee Wong-Brissett, Peta-Gay Pryce

and Yaniece Gentles.

“We signed the lease on the first of April and should open in July 2019,”

added Andrea Dempster Chung, managing director of Kingston Creative

and co-owner of Bookophilia bookstore and café.

Downtown Kingston is slowly going through a period of renewal and the

joint-venture partners see creatives as bringing colour to the city. Those in

the creative economy usually include artists, musicians, dancers, writers,

photographers and film-makers.

The space called Kingston Creative Hub spans 280 square metres or

approximately 3,000 square feet on the top floor of a building at the

intersection of Harbour Street and Church Street occupied by F&B

Downtown and Swiss Stores.

Creatives often work out of cafés while sipping coffee or tea. The Hub will

charge them roughly $500 per hour or $3,000 a day for workspace, which

means they would need an incentive to buy the service.

“There are certain things you cannot do in a café,” said Smith. “We will

have soundproof areas for people doing podcasts, we will have Avanta

work desks for architects who need to lay out their plans. Our meeting

rooms can be converted to photo studios. We are really trying to convert

the space to appeal to creatives,” she added.

Apart from the rental of meeting rooms, desks and offices, Kingston

Creative Hub will offer space for pop-up retail events, and provide shared

services such as human resource management, accounting, traditional

marketing and digital marketing services, and a business accelerator

programme with lunch-hour sessions, says Dempster Chung.

Future plans will see the development of other “satellite locations” to

appeal to other creatives that might not necessarily fit into the quiet

space of offices and meeting rooms.

“Artists need messy space and dancers need loud space. Fashion people

need expansive space. Downtown has all these unused spaces and the

plan is to expand into all these spaces with satellite locations,” says

Dempster Chung.

She refuted the notion that the downtown Hub aims to attract middle-

class creatives while shunning creatives in working-class communities in

proximity, saying all are invited and that discount vouchers are available

for those who cannot afford the rates. These vouchers would be

sponsored by public or private sector interests.

Negotiations are ongoing with the Kingston & St Andrew Municipal

Corporation for additional locations, Dempster Chung added.

Kingston Creative organises a monthly ‘Artwalk’ which links art galleries

downtown. It also has a monthly craft market downtown. The business was

co-founded in 2017 by Allan Daisley and Jennifer Bailey. Its directors

include Doris Gross and Kim-Marie Spence.

<< Back to news headlines >>

Loshusans venturing into Mandeville Wednesday 15th May, 2019 – Jamaica Gleaner

The Loshusan family plans to build a shopping complex in Mandeville at

Caledonia Drive on lands that currently house a Shoppers Fair

supermarket, an inside source revealed.

The Loshusans are indirectly connected to Shoppers Fair as members of

the grocery consortium that owns the chain, Progressive Grocers of

Jamaica, but the Mandeville project is their first real push into central

Jamaica under the family’s name.

The complex will span 60,000 square feet on lands that are three times

that size at 172,000 square feet, leaving space for some 360 parking

spaces.

“We are currently working on the pricing, but it will be heavy,” said the

source. The family members largely avoid publicity and press interviews.

The timeline for the development is contingent on getting full planning

approval, but the build-out period should last two years, he added. The

company submitted plans in early 2018 and received some approvals,

with stipulated conditions.

“There are commercial businesses already on the lands, and we are going

to eventually demolish them and create a brand-new plaza, centre,

complex or whatever you want to call it,” the source said.

The Loshusans are large investors in commercial property that they

develop as retail space. Each development usually houses a supermarket

that different family members operate under brand names Loshusan

Supermarket, John R Wong and Sovereign Supermarket.

The Mandeville property, which was acquired years earlier by the

Loshusan family, sits in proximity to the Golf View Hotel. Planning approvals

published by the National Environment and Planning Agency, NEPA, show

two buildings to be developed at the site, one spanning two storeys that

will house a supermarket, offices, and 15 retail stores two offices, and the

second having at least two fast-food restaurants.

The Mandeville complex is expected to be modelled after the Sovereign

Village in Portmore. The cost of the project was not disclosed. Although

the Loshusans call the development the ‘Mandeville Shopping Centre’ in

their submissions to NEPA, the source said that name was unlikely to be

retained when the complex is finalised as it is too close in identity to the

existing Manchester Shopping Centre.

He would not disclose the name under consideration, but the Loshusans’

projects in recent years have borne the Sovereign marquee, including

Sovereign Centre and Sovereign North in Kingston and Sovereign Village

in St Catherine.

Progressive Grocers of Jamaica is a consortium of supermarket owners,

each of whom operates separately owned businesses. The group,

however, owns some assets in common. Progressive has two Shoppers Fair

supermarkets in Manchester but no branded Sovereign or Loshusan

supermarkets.

“We are in the Progressive Group, and so is Shoppers Fair, but we do not

own that entity. There are no Loshusan businesses there,” said the insider.

<< Back to news headlines >>

Tullow wants to drill for oil in 2020 Wednesday 15th May, 2019 – Jamaica Gleaner

Tullow Oil wants to drill for oil in select countries next year, including

Jamaica, where it recently concluded a 3D seismic survey with promising

results.

The preliminary findings of the survey indicate there is a one-in-five

chance of finding oil in commercial quantities off the coast of Jamaica.

“Tullow continues to work up prospects to compete for capital for drilling

in 2020 and beyond in Mauritania, Côte d’Ivoire, Jamaica, Peru and

Suriname,” said the United Kingdom-based company in its late April

trading update to investors.

Tullow Oil and its current exploration partner United Oil & Gas conducted

a 3D seismic survey to map the ocean floor to better determine whether

key substances detected in earlier surveys of 2,200 square kilometres of

water were in fact oil.

The Petroleum Corporation of Jamaica (PCJ) is yet to respond to queries

on whether Tullow would need an additional licence to start drilling.

In February, the Financial Gleaner reported that the prospects for finding

oil in Jamaica had increased from 16 per cent to 20 per cent, based on

an independent oil report which utilised Tullow’s 3D data.

The 2019 report also upsized the 2017 baseline estimates of the quantity of

possible oil reserves from 219 million barrels to 229 million barrels. The

independent assessment, described as a Competent Person’s Report, was

prepared by ERC Equipoise Limited and covered the Walton-Morant

block offshore Jamaica. United Oil & Gas added that 229 million barrels

should be seen as adequate particularly for medium-sized firms to drill.

Tullow paid US$128,000 to Government for the right to explore, according

to its 2018 annual report.

Offshore Jamaica has 31 blocks available for oil exploration, of which

Tullow Oil has leased 10 blocks and a section of an 11th block. The

Walton-Morant licence held by Tullow spans 32,065 square kilometres.

The remainder of the blocks are open to takers, with some offshore blocks

currently under negotiation, PCJ has said.

<< Back to news headlines >>

Herald Printers in expansion mode Wednesday 15th May, 2019 – Jamaica Observer

FOUNDED in the days when words could only be printed using a

letterpress machine, 97-year-old local print company Herald Printers now

has its eyes on the US$664-billion ($90.3-trillion) global home décor industry

as it seeks to secure a larger share of the print market.

The operator's ambitious target comes amidst talk that the print industry is

in turmoil from threats including the global economic crisis, globalisation,

as well as new players entering the industry. Nonetheless, Herald Printers is

adamant on flexing their “creative ability” to woo customers and

advertisers who have shifted their attention towards the Internet, iPad-like

tablets and e-books.

In fact, with assistance from the EXIM Bank, the print company which

operates from 43 East Street in downtown Kingston has pumped more

than US$1.7 million ($231 million) in the acquisition of new machines to

increase market share both locally and internationally.

Herald Printers is also preparing for the expansion of its current space

downtown by 7,000 square feet which will include a client experience

centre as a sweetener to customers looking to engage the business on its

new line of services.

Further, phase two of the expansion will see the company adding 20,000

square feet at an undisclosed location for the finishing of goods and

packaging, and in line with the expansion, Herald Printers plans to

increase employment numbers north of 100, up from the current 54 full-

time staff.

“We took a quick glance at the home décor market and we realised that

it is expected to reach US$664 billion by 2020. The registering compound

annual growth rate is 4.2 per cent over the period 2015-2020. We think

there is a huge opportunity for us to get into this space,” marketing and

business development manager of Herald Printers Keena Williams said

during a factory tour hosted by the company last Friday.

“We also recognise that there has been significant growth in Airbnbs, so

we can print canvas pieces to cater to persons who are coming from,

say, Alaska. We can do a wall wrap for the entire space that speaks to

them,” Williams continued.

But home décor is not the only area Herald Printers is targeting. The

company, which currently provides printing solutions in the form of

graphic design, calendars, digital print, magazines and brochures, labels

and packaging, has also recognised that it can increase revenue from

the provision of wall art services.

“As we get into the latex market, we are excited to see some of the high-

rises that are going up across Jamaica. Where there are walls, there's a

need to decorate the walls, so through wall art we are happy to bring this

technology to Jamaica. Our country, our landscape, is so beautiful, and

all of that can be captured and placed on any wall or outdoor space,”

Managing Director Rodger Brown told the Business Observer.

Ultimately, Herald Printers wants to quadruple wide format sales over the

next three years, while doubling on the sale of digital and offset printing

services.

“Those may seem very high but with this is new technology; a lot of the

products are new to the market. So we look forward to creating our own

market share and at the same time expanding our territory in all three

areas,” Brown said.

Overall, Herald Printers hopes to surpass $500 million in revenue over the

next five year. Of that, 10 per cent should come from the international

market. The company currently gets roughly 7 per cent of its revenue from

its business in the United States, Cayman Islands, The Bahamas and St

Lucia.

“One of our clients recently opened the largest hotel in Antigua, so we

are pretty confident that we will be able to supply the collaterals for that

property as we presently supply the collaterals for their five hotels here in

Jamaica and also in St Lucia,” the managing director said.

Incorporated in 1922, Herald Printers provided letterpress and publication

to local businesses and individuals before expanding into offset printing

and later lithographic print services.

<< Back to news headlines >>

DBJ awards grants to seven companies prepared by Branson Centre Wednesday 15th May, 2019 – Jamaica Observer

Seven companies prepared by Branson Centre Caribbean have been

awarded grants from the Development Bank of Jamaica's (DBJ) IGNITE

programme which represents the largest grant pool for the second

instalment of the project.

The IGNITE grant programme aids the accelerated growth of a group of

innovative business ventures by micro, small and medium enterprises

(MSMEs).

IGNITE is specifically geared towards funding projects with high levels of

innovation that may otherwise not be funded. The programme will last for

a period of 18 months between January 2019 and July 2020 — with an

additional year of monitoring. Selected businesses will be introducing new

products and services within the Jamaican and overseas markets.

DBJ awards top performing businesses in the programme and grants are

channelled through business service intermediaries such as Branson

Centre Caribbean.

“This is our second time partnering with DBJ for the IGNITE grant

programme and we are happy to support its expansion,” said Branson

Centre Entrepreneur Programme Director Dmitri Dawkins.

Programme requirements ensure that entrepreneurs integrate better

business practices through governance, business training and

compliance.

Branson Centre's high-touch preparation and vetting process involves

reviewing initial applications, providing feedback for improvements, and

preparing entrepreneurs with the best alignment to the programme.

Dawkins shared that Branson Centre Caribbean negotiates with funding

partners like DBJ to get capital for projects. Awardees also receive

additional support through advisory boards, project monitoring, grant

disbursements and business training.

The Branson Centre of Entrepreneurship – Caribbean was launched in

Montego Bay, Jamaica in 2011 by business magnate Sir Richard Branson

and is the Caribbean's leading business accelerator for scale-up

entrepreneurs, bringing world-class entrepreneurial support to the region.

<< Back to news headlines >>

Hylton takes on Guardian role from Lok Jack Wednesday 15th May, 2019 – Jamaica Observer

GROUP president and chief executive officer of the National Commercial

Bank Financial Group (NCBFG), Patrick Hylton, has been appointed

chairman of Guardian Holdings Limited (GHL) effective May 9.

The appointment follows the resignation of business tycoon Arthur Lok

Jack who has served as chairman of the Trinidad and Tobago-based

insurance giant over the past 15 years. The resignation and appointment

took place at the GHL's annual general meeting for its 2018 financial year

in Trinidad and Tobago.

Yesterday, NCBFG announced that it has finalised the acquisition of

74,230,750 ordinary shares in (GHL) after being granted all the necessary

regulatory approvals in Jamaica and Trinidad and Tobago, and the

closing of NCBGH's takeover bid on May 3, 2019.

The shares were taken up and paid for by NCBGH, resulting in the Group

owning nearly 62 per cent of the outstanding shares in GHL. A net total of

117,971,970 shares were tendered in response to the offer.

“As we stated at the beginning of this journey, we believe this transaction

is a game-changer in history of the region. Amidst the context of the de-

risking impacting the region, we are proud and excited about the

implications and prospects of two leading indigenous Caribbean

institutions coming together to drive economic growth, customer and

shareholder value,” chairman of NCBFG, Michael Lee-Chin, said in a

statement posted on the Jamaica Stock Exchange.

Hylton noted that as stand-alone regional leaders, NCB and GHL

combined, have the opportunity to become a world-class financial

service conglomerate, which ultimately has positive implications for

shareholders, our region and its citizens.

NCBFG's share price reached a new high last Wednesday, closing at

$150.13 with volumes of $12,616,011. On Thursday, the stock price dipped

$1.38 to close at $148.75 but yesterday rose to $148.82 at press time.

<< Back to news headlines >>

$B Water Rescue Wednesday 15th May, 2019 – Jamaica Observer

PRIME Minister Andrew Holness yesterday announced a number of

initiatives aimed at reducing the impact of worsening drought conditions

that have been affecting the Corporate Area and St Catherine in

particular.

Among the new measures is the construction of a 15-million-gallon per

day water treatment plant in the Rio Cobre, under a Public Private

Partnership (PPP) arrangement.

He said that the National Water Commission (NWC) and a Cabinet-

appointed enterprise team, along with a private sector consortium, have

been mandated to complete all negotiations within 45 days. At the end,

construction is expected to commence later this year for a period of 24

months.

The total cost to develop the project and construct the new water

treatment plant is estimated at US$60 million, or J$7.77 billion.

However, the prime minister advised the House of representatives that the

project is contiguous on the divestment of the Central Wastewater

Treatment Company, which owns the Soapberry Wastewater Treatment

Plant.

He also promised a Spanish Town Road to North Street pipeline which will

comprise connection to the 36-inch ductile iron that is now being

constructed parallel to a section of Mandela Highway at Six Miles, in

addition to 6.1 kilometres of 36-inch diameter ductile iron pipeline which

will run along Spanish Town Road from Six Miles to the Waltham Park Road

intersection; a four-kilometre 24-inches diameter pipeline from Waltham

Park Road, which will run along Spanish Town Road and Beeston Street;

and connection of the 24-inches pipeline to the existing two- inch pipeline

at the intersection of North Street and Blake Road in Central Kingston.

Holness also listed an additional 2.3-kilometre, eight-inch diameter and

1.9-kilometre of six-inch diameter distribution pipelines which will be

installed along Spanish Town Road, on either side of the dual

carriageway.

He said that the estimated cost to construct a pipeline from Spanish Town

Road to Glenmore Road is US$35 million, with a further US$25 million for

secondary transmission and distribution mains improvements.

The NWC, added the prime minister, has been directed to make

appropriate arrangements to give effect to the declaration of an

emergency, to facilitate the earliest possible replacement of the existing

pipelines along Spanish Town Road.

Holness's announcement comes as the NWC confirmed that its main

water resources for the capital city — Mona Reservoir and Hermitage

Dam — are down to 27.4 per cent and 33.1 per cent of their capacities,

respectively, despite rain last weekend.

The prime minister said yesterday that under extreme drought conditions,

as occurred in 2012 and 2013, this year's shortfall could even be greater,

as when the situation is compared with last year at this time, both Mona

Reservoir and Hermitage Dam were at full capacity of 809 million gallons

and 400 million gallons, respectively.

“We have heard the cries of homeowners and business operators within

the Corporate Area and sections of St Catherine, bemoaning the fact

that they have not enjoyed a regular or sufficient supply of potable water

to their pipes in recent weeks, and in some instances, months,” he stated,

noting that his St Andrew West Central constituency is one of those which

consistently suffers from lack of a reliable supply of potable water.

“We understand the great level of frustration and inconvenience this has

caused in affected households and places of business, and we

appreciate the patience and understanding being experienced by

residents,” Holness told the House yesterday.

He said that major improvements are required immediately for the

Kingston and St Andrew Water Supply System, and the total expenditure

required is estimated at US$160 million.

These improvements are slated to improve water supply in areas such as

Stanton Terrace to Marescaux Road; King's House to West King;s House

Road/Constant Spring; Norman Manley Airport Road (by roundabout) to

Port Royal; Seaview to Jack's Hill; Six Miles to North Street; Six Miles to

Constant Spring Road; and the Content Water Treatment Plant at Rio

Cobre.

The prime minister explained that the low outputs are a direct result of the

low river flows from the Yallahs and Hope rivers into Mona Reservoir; low

river flows from Morsham, Ginger, Wag Water and Bore rivers up to

Hermitage Dam; and limited ability to transfer water from St Catherine

due to the very fragile Rio Cobre transmission main that runs along Spanish

Town Road.

He said that under the current water production conditions, only

approximately 35 million gallons per day are available for distribution in

Kingston and St Andrew, representing a shortfall of approximately 26

million gallons per day of installed capacity.

“The Government is seized of the impact of the current water situation on

all aspects of the country's development, and is very aware that if

immediate and urgent action is not taken, the shortfall is expected to

worsen,” he said, noting that additional water production capacity has to

be established.

<< Back to news headlines >>

46 firms cited for plastic ban breaches Wednesday 15th May, 2019 – Jamaica Observer

Five months after the Government imposed a ban on the use, distribution,

and manufacturing of specified single-use plastic carrier bags, 46

establishments have been served compliance notices for various

breaches of the prohibition.

The Jamaica Observer has learnt that the entities have been served for

breaches of the Natural Resources Conservation Authority (plastic

packaging materials prohibitions) through enforcement activities

conducted in four parishes.

The most breaches were found in St James, where 21 notices were issued;

followed by St Andrew with 11; Manchester with eight; and St Ann, where

six notices were served.

The establishments, which ranged from large to small commercial

operations, were cited for distribution of single-use plastic bags and

straws.

In an Observer interview, minister with responsibility for the environment

Daryl Vaz said the implementation of the policy is now fully in effect, and

that there is no more leeway, as was allowed at the start of the ban in

January, to allow the public to acclimatise, and give commercial entities

time to use remaining stocks of the banned products.

He stressed that enforcement and prosecutions have therefore now

begun.

“At this stage, there is definitely zero tolerance... five months into it, so

everybody should be fully okay. All who had issues in terms of getting

alternative packaging, the necessary leeway was given for that and

therefore there is no excuse for non-compliance,” Vaz told the Observer.

On January 1, the ban was imposed on the importation, manufacture,

distribution and use of single-use plastic carrier bags below 25-gallon

capacity — commonly called scandal bags and which were used

primarily in the retail and wholesale sectors. Plastic bags used to maintain

public health standards, such as those used to package raw meats,

poultry, and bread, are exempted from the ban.

Effective January 2020, the importation and manufacture of plastic

drinking straws, and polystyrene foam containers, commonly called

styrofoam, will also be outlawed.

Meanwhile, in support of the enforcement and compliance measures, the

Bureau of Standards Jamaica has reportedly responded to 52 requests for

dimension and thickness on plastic bags since the ban started in January.

Twenty-four of those requests came directly from importers and

manufacturers, and 28 from the Natural Conservation and Resources

Authority.

The Observer was also reliably informed that, as of March 19, Jamaica

Customs — a critical organ of the multi-agency approach to the ban —

detained 507 cartons consisting of 1.014 million plastic bags with a CIF

value of US$1,774.50 with duties amounting to $105,071.47.

Customs has also begun disaggregating the tariff codes to capture items

affected by the ban.

At the official start of the ban, Vaz had explained that although $850

million worth of plastic bags had been imported up to September 2018,

the Government was unable to ascertain how much of that included

banned bags, as the tariff codes for these items are generic.

Additionally, Customs has increased its use of risk-management strategies

to identify and monitor importers of products affected by the ban, and

effected greater scrutiny of declarations and supporting invoices to

ensure that items are properly described.

At the same time, Vaz noted that the Government is still working through

the announced compensation mechanism for manufacturers and

distributors with the stakeholders.

Vaz pointed out that, as it was at the start of the ban, there has been

heavy support for the policy. “It's the first controversial policy that a

Government has implemented that has gotten that level of support, and

it shows the level of maturity of the population,” he stated.

He said that although the ban is now fully in effect, education and

awareness activities are continuing, in order to iron out any remaining

kinks.

<< Back to news headlines >>

Barbados’ waters no dumping ground Tuesday 14th May, 2019 – Barbados Today

Minister of Maritime Affairs and the Blue Economy Kirk Humphrey is

warning ship operators that Barbados will not tolerate any littering within

its marine space.

Humphrey was addressing the christening ceremony of the Tropical Island

vessel at the Bridgetown Port on Tuesday. The Tropical Island is one of

several vessels operated by Tropical Shipping.

“I understand the port has recently shaped for itself a new vision that

speaks to innovation, it speaks to becoming a green place to do business

and it speaks to being the best by the year 2030. That is where we intend

to take ourselves,” said Humphrey.

However, he said: “I also feel that in the context of that there is a

responsibility now being placed on the people with whom we do

business.”

“I have read and I have seen in circumstances where countries allow ships

to operate in their territorial waters . . . and some ships engage in

behaviours in the water that they should not in relation to pollution, some

in relation to dumping. Some are still having to be dragged before courts

and be fined. That is not who we are,” said Humphrey, adding that

Barbados was committed to protecting the ocean as it develops a blue

economy.

Over the years various cruise lines have been found guilty of dumping

waste in some territorial waters.

Early last month the Bahamas government announced that it was

investigating Carnival Corporation after that cruise operator was accused

of illegally discharging more than half-million gallons of treated sewage,

oil and food waste in its waters.

Calling on officials of Tropical Shipping to partner with Barbados in

protecting the ocean, Humphrey said: “I know of examples where there

are paints that are allowed on some ships in Barbados and it is not

allowed in other countries. It is banned in other countries. I hope Tropical is

not guilty of it.”

“It is one thing to do business but to be the best, the most innovative

green hub blue space in the world it means we must do everything we

can to protect the ocean,” he stressed.

He said Tropical Shipping’s investment in Barbados was a show of

commitment in the economy by the company.

“We have a commitment to law and to order and we thrive on being

excellent in our conduct and our endeavours, but for us, relationships

remain extremely important and therefore, we wish to build on the nature

of this relationship,” said Humphrey, while pointing out that government

was investing “significantly” in the training of people as it improves

efficiency.

Tropical Island is the first of two ships for the Windward region. The second

is the Tropic Jewel to be introduced in about a month.

These are part of a build-out of a total of six vessels, which represent the

biggest single investment by the company to date at approximately

US$150 million. This will bring the total number of vessels to 16 for the

company’s operations in the Caribbean.

President and Chief Executive Officer of the company Jeff Fiser said he

remained committed to establishing Barbados as “a transhipment hub”.

The vessel will leave Barbados every week with cargo to several

Caribbean destinations and will return to the island every Monday.

Vice President of Commercial Trade Tim Martin said the company was

committed to keeping the waters of Barbados safe and to do things

“ethically and honestly”.

“I know exactly what he is saying in reference to dumping or dumping

waste. That is something we do not do. I know that for a fact. It is just

something you have to stay on top of,” Martin told Barbados TODAY,

adding that the new vessels were “eco-friendly”.

Chairperson of the Bridgetown Port Inc. Senator Lisa Cummins welcomed

the decision by Tropical Shipping to make Barbados a hub for shipping

cargo to other Caribbean countries.

She said it supported the island’s vision of building out the port facilities

and improving efficiencies.

“We have emphasized building the port, expanding our revenue base by

investing in new business lines, and that includes forging new business

lines. We are hoping that by these improvements in efficiency, cost and

performance overall, that we are able to have far more business being

hubbed here out of Barbados,” she added.

Cummins said a strategy committee had been set up and in coming days

new trade facilitation measures would be developed, as well as new

partnerships and collaboration with other ports in the region.

<< Back to news headlines >>

Pay day Wednesday 15th May, 2019 – Barbados Today

Eighty-three retrenched workers of the Ministry of Transport and Works are

now set to receive their gratuity payments.

The workers who were severed from their positions under the Barbados

Economic Recovery Transformation Programme, commonly referred to as

BERT, went home without receiving the expected payment because they

had not reached the pensionable age.

Today, Minister in the Ministry of Finance Ryan Straughn piloted the Public

Service Retrenched Workers Bill 2019 in Parliament making provision for the

Accountant General to begin making payments to the affected workers

from Government’s Consolidated Fund.

“This particular bill relates to those employees for whom their service

would have exceeded ten years in that particular ministry which is

different from the set of persons who would have been retrenched

otherwise. Therefore, there was some pension consideration with respect

to packages.

“This bill is seeking to make available to those persons the gratuity as it

relates to the service they would have provided to Government within

that ministry. So therefore Clause 2 speaks to the Accountant General

being authorized to make the payments of gratuity and pensions out of

the Consolidated Fund,” he said.

Straughn related that in normal circumstances public officers would only

receive their gratuity at retirement. He however pointed out that in light of

the October 2018 restructuring of the public service the Mia Mottley

administration decided it was necessary that this category of workers

receive their payments post haste.

“The Government of Barbados has taken a decision that those persons

whom the retrenchment exercise impacted who have served more than

ten years that they be given their gratuity as part of the compensation.”

The Member of Parliament for Christ Church East Central however made it

clear that the retrenched workers would have to wait until 60 to be able

to receive their pension.

“Persons will still have to wait until 60 for when they will receive the

reduced pension but this bill is seeking Parliamentary approval to pay the

gratuity part of that now so as to make sure that they [Government] are

consistent with good industrial relations. It is clear Sir that while it is

unfortunate that persons would have had to lose their jobs under the BERT

programme, Government cares about the wellbeing of those persons and

we feel quite strongly that these gratuities should be paid now,” he said.

<< Back to news headlines >>

Resilience drove Dominican Republic 5.7% GDP growth in 1Q Tuesday 14th May, 2019 – Dominican Today

Central Banker Héctor Valdez Albizu, on Tues. said Dominican Republic’s

GDP grew 5.7% during the January-March 2019 period.

He said Construction (12.5%), Energy and Water (11.7%), Financial

Intermediation (9.5%), Mining (6.3%), Transport and Storage (6.2%), Public

Administration (5.7%), Hotels, Bars and Restaurants (5.0%), Other Services

(5.2%), were the sectors with the highest growth for that period, among

others.

Speaking at the opening of the 4th Caribbean Finance and Investment

Forum, hosted by Latin Finance, Valdez said that despite having faced an

increasingly complex international environment, “the Dominican Republic

has managed to remain as leader of economic performance of Latin

America, based on the strength of its macroeconomic foundations. He

stressed that last year there was growth of 7.0% and inflation of only 1.17%,

and that during the period 2013-2018 the average annual growth of GDP

was 6.3% with an average annual inflation of 2.48%.”.

He stated that the implementation of coordinated economic policies,

such as the inflation targeting scheme adopted by the Central Bank in

2012 and the fiscal consolidation that began in 2013, as well as more

favourable terms of trade, helped to reduce the “twin deficits” to

reasonable levels. “That is to say the fiscal and the current account of the

Balance of Payments, reinforcing the economy’ resilience to avert internal

and external shocks.”

He added that this, combined with the substantial increase in

international reserves and the relative stability of the exchange rate, are

elements that have positively influenced the collective welfare, as

evidenced in the improvement of social indicators.

<< Back to news headlines >>

Reclassification of companies stalls wage hike talks Wednesday 15th May, 2019 – Dominican Today

Union leaders on Tuesday walked out of the talks between labour and

management leading to a salary increase, over a dispute on the

reclassification of companies, and announced protests to voice their

demands.

Employers insist on reclassifying the companies before agreeing to a

wage increase, but which the unions oppose.

At the end of the meeting Dominican Workers Union (CNTD) president,

Jacobo Ramos, told the press that the employers’ proposal regarding the

classification of companies “lowers wages.”

He said that while the issue is on the table, the unions will not participate in

the meetings, and warned they’ll call for mobilizations. “If that’s what they

want, then in that arena we will fight.”

<< Back to news headlines >>

IMF predicts 3.5% growth for Grenada Wednesday 15th May, 2019 – Jamaica Observer

Head of the International Monetary Fund Article IV Consultation to

Grenada, Bogdan Lissovolik is projecting that economic growth for the

island this year, 2019 will be 3.5 per cent.

Lissovolik also suggested that Grenada should rebalance its job

opportunity in order to maintain growth in the long term.

The IMF Article IV Consultations is a part of the international lending

agency's surveillance to assess each country's economic health and

forestall future financial problems.

The mission commenced its scrutiny on April 25 and concluded on May 8.

During the period the team members met with government, private

sectors stake holders and a cross section of the civil society

representatives.

“For our projection, we think that there will be a gradual easing of the

deficit growth — we think that in 2019 GDP growth will be about 3.5 per

cent,” Lissovolik said while explaining that 2018 was 4.2 per cent.

In March the Caribbean Development Bank projected that the island will

experience 4.5 per cent economic growth through the construction,

tourism, agriculture and private education sectors.

“We assess the GDP growth for 2018 was 4.2 per cent. It was somewhat

lower than previous years where it was 5 per cent but it is still a number

that is significantly higher than what we assess as the long-term potential

of Grenada, and also much higher than the potential in the broader

Caribbean,” he said.

Pointing out that the construction industry, through its robust activities are

contributing to economic growth and to the reduction of unemployment,

the senior economist said that because the construction sector is an

unstable industry, the Government needs to take steps to ensure the

reduction of the unemployment rate is not lost when construction

activities are no longer robust.

“On a more cautionary note, the unemployment rate continues to be on

the high side although it has been declining — from the information that

we have it was about 22 per cent in the middle of 2018. It's important that

it continue with reforms that help generate sustainable jobs, in part

because of the elements that are feeding into growth performance so far

like construction,” he said.

“These are the elements that you cannot count on forever, in terms of

being very strong. It is important to rebalance and find other sustainable

job opportunities,” he said, while recommending a strategy that will

strengthen the agriculture sector through its direct link to the tourism

industry as well as the development of the different components in the ICT

sector such as call centres and software development

Lissovolik said that in the external situation the team found that the current

account deficit, which is the external deficit, is about 11 per cent of GDP.

“It is on the high side. It is not particularly high [as] it used to be higher for

Grenada and other countries in the region, but since it is still double digits

the issue is whether there are other elements of sustainability or non-

sustainability,” he said.

“In this regard, we note the citizenship by investment (CBI) programme

has enjoyed robust inflows that supported the growth.”

The CBI project, he said, contributed both to the financing of the external

deficit and to the increasing of employment through its many construction

projects. Government data shows that the CBI programme contributed

EC$80 million to the economy in 2018.

<< Back to news headlines >>

Albany Closes in On South Ocean Deal Monday 13th May, 2019 – Tribune 242

Albany’s developers are getting closer to acquiring their 383-acre

neighbour, Tribune Business can reveal, after all South Ocean staff were

last week told to report to its human resources unit.

Multiple highly-placed sources, speaking on condition of anonymity,

disclosed that a three-way joint venture involving South Ocean’s current

owner and the adjacent ultra-luxury community is being put together to

finally revive a property that has been closed for some 15 years.

Besides Albany and the Canadian Commercial Workers Industry Pension

Plan (CCWIPP), the third party in the proposed deal features “people who

formerly worked for Greg Norman” - the Australian professional golfer

whose real estate company produced a masterplan for South Ocean’s

development back in 2012.

It is understood they will focus on redeveloping South Ocean’s golf

course, widely-regarded as the best in New Providence, which was

remodelled under Mr Norman’s Blue Shark brand more than a decade

ago only for the then-purchaser’s acquisition to fall through.

However, this newspaper was told that Albany, whose developers include

the Tavistock Group, the vehicle for worldwide investments by Lyford Cay-

based billionaire, Joe Lewis, plus world-renowned golfers Tiger Woods and

Ernie Els, will be in the lead and the driving force behind South Ocean’s

redevelopment.

Tribune Business has made multiple attempts to reach Christopher Anand,

Albany’s principal, over the past weeks. On the one occasion it was

successful, Mr Anand said he was unable to speak and ended the call.

Subsequent calls and messages have not been returned.

Still, this newspaper was told that Albany plans to use South Ocean to

expand as necessary to meet demand, with the property likely to be

developed for more high-end, multi-million-dollar real estate and

amenities plus boutique hotels.

Its strategy appears to now be moving forward and gathering

momentum, with well-placed contacts last week revealing that South

Ocean’s remaining “skeleton” workforce - the likes of security and

maintenance personnel - had been ordered to report to Albany’s human

resources department.

Craig “Tony” Gomez, the Baker Tilly principal, whose accounting firm acts

as South Ocean’s financial manager on CCWIPP’s behalf, declined to

comment on the staff switch to Albany when contacted by Tribune

Business.

This newspaper was told, though, that Albany and the joint venture’s

takeover of South Ocean may not close “for quite some time”. This is

because CCWIPP has to market the property for sale to all-comers in

compliance with a Supreme Court Order setting out how it should be

auctioned off.

The Canadian pension fund, which provides retirement income for

supermarket/grocery workers, has been marketing South Ocean for sale in

recent weeks in the local newspapers under the “I F Propco” name, which

is the CCWIPP investment vehicle that holds the Bahamian resort and

channels money into it as necessary.

CCWIPP is exercising its “power of sale” as the mortgage holder, having

advanced monies secured on South Ocean’s 383 acres to Roger Stein’s

New South Ocean Development Company, a previous developer whose

deal to buy the property fell through some years ago.

“The deal is not finalised but they’re going to move quickly,” one source,

speaking on condition of anonymity, said of Albany and its potential

partners. “The vistas are much better than Albany. South Ocean runs right

to the beach.

“I daresay those properties will be more valuable than Albany’s originally

was as the properties are sitting right on the beach. It would be a better

extension of Albany. And if it’s one thing the pension fund owes to their

members it’s to get rid of a property that’s not been functioning for 15

years. What are you going to do? Keep holding it, keep holding it? It’s

time to sell.”

CCWIPP took over South Ocean’s ownership around two decades ago

after developer Ron Kelly defaulted on loans he had borrowed from it to

acquire the property, and which were secured on its real estate.

The pension fund ultimately closed the resort in 2004 in a bid to stem the

financial bleeding caused by multi-million-dollar losses and has been

desperate ever since to secure an exit route. However, no buyer has

come close to matching its asking price, and several sales processes and

potential deals fell through in subsequent years as it failed to monetise the

land’s value.

Albany has always taken a keen interest in its 383-acre neighbour and

what happens to it, given that it wants any redevelopment to match the

high-end, ultra-luxury status it has established with its southwestern New

Providence community.

Its developers have been involved in bids or joint ventures to acquire

South Ocean, the last available parcel of land for mega resort

development on New Providence, at least twice before.

However, their last attempt was defeated when CCWIPP elected to go

with an offer from controversial Lyford Cay resident and Austrian financier,

Dr Mirko Kovats, rather than its joint venture with Och-Ziff, the hedge fund

and asset manager with over $40 billion in worldwide assets.

But another contact, speaking recently on condition of anonymity, said:

“They’re on the verge of doing this deal that was put together by Albany,

Greg Norman’s former people and CCWIPP. I think what they will do with

the South Ocean property is what benefits Albany.

“The most logical thing for them to do is build canals and houses around

the golf course. It’ll be according to Albany’s timelines.” However,

another source questioned whether South Ocean’s golf course would be

open to the public or become part of a private, gated community.

Given that it has been closed for 15 years, South Ocean’s remaining value

largely rests with its latent casino licence, which kicks in once the property

reaches a certain number of rooms. Its golf course, too, was rated as the

best in New Providence by many golfers.

It’s unclear, though, whether the casino licence would be part of Albany’s

plans given that casinos are not among the industries that Tavistock

Groups lists itself as having investments or experience in.

<< Back to news headlines >>

Water Corp Cuts Debts By $7.4m Monday 13th May, 2019 – Tribune 242

The Water & Sewerage Corporation’s debt to its main BISX-listed supplier

was slashed by $7.4m in April 2019, financial filings have revealed, with the

balance owing cut to $11.6m.

However Consolidated Water, the New Providence reverse osmosis plant

operator, continues to describe its relationship with the state-owned utility

as a material “risk factor” that could result in its Bahamian operations

having “insufficient liquidity” and cash flow to maintain normal operations.

Such a situation, should it ever occur, would have the potential to disrupt

water supply to the Water & Sewerage Corporation’s New Providence

customers given that it relies entirely on Consolidated Water’s Blue Hills

and Windsor reverse osmosis plants for this.

To prevent such an outcome, Consolidated Water’s latest 10-Q quarterly

filing, submitted to the Securities & Exchange Commission (SEC) on Friday,

said the parent Nasdaq-listed company would provide funding to its

Bahamian subsidiary should the liquidity/cash flow position become

critical.

And, while emphasising that it had always been able to collect the Water

& Sewerage Corporation debts owed to it, Consolidated Water revealed

that 75 percent of the $16.9m owed to it an end-March 2019 had been

“delinquent” - meaning that some $12.6m was 90 days or more past due.

This pressure has been eased by the $7.4m payment following the 2019

first quarter’s end but, in the section “risk factors”, the BISX-listed water

supplier said: “Periodically, our Bahamas subsidiary experiences

substantial delays in the collection of its accounts receivable. As a result,

our Bahamas subsidiary could have insufficient liquidity to continue

operations, and our consolidated results of operations could be materially

adversely affected.

“Consolidated Water Bahamas’ accounts receivable balances due from

the Water and Sewerage Corporation of The Bahamas amounted to

$16.9m as of March 31, 2019, and $17.6m as of December 31, 2018.

Approximately 75 percent of the March 31, 2019 accounts receivable

balance was delinquent as of that date. The delay in collecting these

accounts receivable has adversely impacted the liquidity of this

subsidiary.”

Still, expressing confidence that it would not have to take a provision

because of the Water and Sewerage Corporation debts, Consolidated

Water added: “Historically, Consolidated Water Bahamas has

experienced delays in collecting its accounts receivable from the Water

and Sewerage Corporation.

“When these delays occur, we hold discussions and meetings with

representatives of the Water and Sewerage Corporation and The

Bahamas government and, as a result, payment schedules are

developed for Water and Sewerage Corporation ‘s delinquent accounts

receivable. All previous delinquent accounts receivable from the Water

and Sewerage Corporation were eventually paid in full.

“Based upon this payment history, Consolidated Water Bahamas has

never been required to provide an allowance for doubtful accounts for

any of its accounts receivable, despite the periodic accumulation of

significant delinquent balances. As of March 31, 2019, we have not

provided an allowance for Consolidated Water Bahamas’ accounts

receivable from the Water and Sewerage Corporation.”

Confirming the payment received post-March end, the BISX-listed supplier

said: “Consolidated Water Bahamas received approximately $7.4m in

payments on its accounts receivable in April 2019 and, as of April 30, 2019,

its accounts receivable balance from the Water and Sewerage

Corporation was approximately $11.6m.

“If Consolidated Water Bahamas continues to be unable to collect a

significant portion of its delinquent accounts receivable, one or more of

the following events may occur: Consolidated Water Bahamas may not

have sufficient liquidity to meet its obligations without new funding from its

shareholders.

“We may be required to cease the recognition of revenues on

Consolidated Water Bahamas’ water supply agreements with the Water

and Sewerage Corporation; and we may be required to provide an

allowance for Consolidated Water Bahamas’ accounts receivable. Any of

these events could have a material adverse impact on our results of

operations, financial position and cash flows.”

Adrian Gibson, the Water & Sewerage Corporation’s executive chairman,

did not return Tribune Business’s phone calls and messages seeking

comment yesterday. It is unclear where the $7.4m to reduce the Water

and Sewerage Corporation’s debt came from, but there is every

likelihood it came from the Public Treasury and Bahamian taxpayer.

The reason for the Water and Sewerage Corporation’s inability to make

timely, in-full payments to its main water supplier is set out in a recent Inter-

American Development Bank (IDB) report that confirms the state-owned

utility is selling water massively below cost to its customers - resulting in the

Treasury/taxpayers having to subsidise it./

“The country’s national agency, Water and Sewerage Corporation (WSC),

supplies less than 50 percent of overall potable water demand in The

Bahamas. Currently, only 14 percent of the population has access to

improved sewerage and sanitation facilities,” the IDB report said.

“No tariff adjustments have been granted for several years, and current

tariffs presently represent about 60 percent of the cost of service in New

Providence, and only 30 percent in the Family Islands (where the cost of

service provision is higher and the tariff lower than in New Providence).”

As a result, the IDB warns that the benefits from reducing water leaks and

losses from the Water & Sewerage Corporation’s system by 60 percent

could be lost if there is no tariff rebalancing.

<< Back to news headlines >>

GDP Grows By 1.6% But It's Below IMF's 2.3% Prediction Tuesday 14th May, 2019 – Tribune 242

THE country’s real gross domestic product grew by 1.6 percent last year

compared to 2017, new data from the Department of Statistics reveals.

The increase contrasts with the average yearly real GDP growth of just 0.4

percent from 2015 to 2017. However, the growth is below the International

Monetary Fund’s projected 2.3 percent growth for 2018.

Department of Statistics officials said nine of 17 industry groups

contributed to the increase in real GDP, with real value added increasing

by $16 million (0.9 percent) for the real estate industry group; $43 million

(3.0 percent) for the wholesale and retail trade group; $42 million (4.2

percent) for the financial and insurance sector and $253 million for the

accommodation and food services industry on the back of a 7.9 percent

increase in tourist arrivals.

Statisticians used the production and expenditure approaches for its GDP

analysis. Household expenditure increased by $140 million (1.9 percent);

non-profit institutions serving households grew by $7 million (2.2 percent);

exports of goods and services increased by $244 million (6.3 percent) and

imports of goods and services decreased by $23 million (0.4 percent), they

said.

The GDP for 2018 was $12.4 billion in nominal dollars and $10.8 billion in

real dollars.

In a statement yesterday, Deputy Prime Minister and Minister of Finance

Peter Turnquest said: “This is the first time the country has had decent

economic growth over five years. When we look at where we are now

compared to where we were, these results are confirmation; there has

been a significant turnaround and our policy mix is effectively placing us

on a path of sustained growth.

“The key takeaways are that economic growth is positive, our momentum

has firmed and it is being driven by the private sector. Just five years ago,

the country was experiencing negative growth at -3.0 percent, and for

several years, the country struggled to arrest the decline. Now, we have

turned things around and we are set up for future expansion and

sustained growth. This will allow for expanded job opportunities for

Bahamians and improve our ability to withstand shocks.”

However, Exuma and Ragged Island MP Chester Cooper accused Mr

Turnquest of political spin, saying in a statement that the GDP growth was

softer than expected. “It is interesting to see that this administration

repeatedly touted its projection of over two percent GDP growth for 2018

as a sign of its supposed economic stewardship, only to have been

brought back down to earth by the facts,” he said. “That the minister of

finance reacts with glee after a lower than expected real [GDP] is curious,

yet dizzyingly out of touch statement. The minister’s projections are simply

not being met; not even close. That GDP growth for 2018 was 1.6 percent,

as disclosed in the report by the hardworking professionals at the

Department of Statistics today, should be alarming to Bahamians. With the

opening of Baha Mar, record tourist arrivals the current administration had

nothing to do with, the booming US economy and no major shocks to the

economy, like a hurricane, over the past year, the government must

explain why the growth projection was not met.”

Mr Cooper questioned whether the government missed its projections

because of the rise in value-added tax “and the subsequent starving of

capital expenditure to meet a rigid deficit target.”

For the first time, the national accounts section of the Department of

Statistics released a quarterly GDP using the production approach. Its

quarterly data was provided for 2015 to 2018.

Leona Wilson, acting director of the department, said: “The reason for the

quarterly report is a response to the demand for GDP on a more regular

basis, instead of waiting for the annual GDP once a year. Both

policymakers and international organisations want to have some idea of

what is happening in the economy on a timelier basis.”

<< Back to news headlines >>

Tencent books record, estimate-busting first-quarter profit, boosted by

investment gains Wednesday 15th May, 2019 – Reuters

Tencent Holdings Ltd posted record quarterly profit on Wednesday,

smashing market expectations, as the social media and gaming giant

booked a rise in the value of its investments while fintech and cloud

computing make up for declines in games.

Even so, revenue grew at its slowest-ever rate as heightened regulatory

scrutiny hobbled its gaming operations, allowing earnings from financial

technology (fintech) and other business services to eclipse smartphone

games for the first time.

China’s gaming regulator has spent the year so far working through a

backlog of applications to monetize titles, having suspended approvals

for most of last year. The impact on Tencent was the sharpest-ever profit

drop in the three months through December, and the slowest annual

profit growth in 13 years.

Approvals restarted in December, with Tencent receiving permission to

launch major title Perfect World Mobile in the January-March quarter. In

those three months, Tencent booked 17% growth in net profit at 27 billion

yuan ($3.93 billion). That compared with the 19.4-billion-yuan average of

13 analyst estimates compiled by Refinitiv.

Boosting profit was 46% in gains such as from investments to 11.1 billion

yuan, while marketing costs dropped 24%. Tencent’s portfolio companies

include Tencent Music Entertainment Group and game live streaming

platform Huya Inc.

Revenue, however, came in just shy of analyst estimates at 85.5 billion

yuan, with growth at an all-time low of 16%.

“FinTech and Business Services”, a category disclosed for the first time and

which includes payment and cloud services, generated 21.8 billion yuan

in the quarter, up 44 percent.

That was more than smartphone gaming revenue, traditionally Tencent’s

largest single revenue generator, which fell 2% to 21.2 billion yuan due to

fewer new titles.

Tencent waited in vain for over a year for approval to earn money via in-

app purchases on its popular game PUBG Mobile. It pulled the game last

week and launched approved title “Peacekeeper Elite”, also known as

Game for Peace, a tactical tournament game similar to PUBG but with a

socialist makeover.

The firm on Wednesday said it will release several games in the second

quarter of 2019 and is “in the early stages of experimenting” with season

passes for some of its main titles in China after a positive reception for

passes in overseas markets.

Elsewhere, Tencent appears to be taking a hit from a slowing Chinese

economy. Its online advertising revenue grew 25% versus 55% in the same

period a year earlier, with Tencent blaming a “challenging macro

environment” and high comparison base.

Jefferies analyst Karen Chan said advertising revenue was lower than

expected, though advertising gross margin improved.

<< Back to news headlines >>

China says it will support firms in boosting R&D spending Wednesday 15th May, 2019 – Reuters

China will support firms in boosting their spending on research and

development, state television cited the cabinet as saying on Wednesday.

China will also support the development of venture capital, the State

Council, or the cabinet, said after a regular meeting.

<< Back to news headlines >>

China's retail sales growth slumps to 16-year low as trade war risks rise Wednesday 15th May, 2019 – Reuters

China reported surprisingly weaker growth in retail sales and industrial

output for April on Wednesday, adding pressure on Beijing to roll out more

stimulus as the trade war with the United States escalates.

Clothing sales fell for the first time since 2009, suggesting Chinese

consumers were growing more worried about the economy even before

a U.S. tariff hike on Friday heightened stress on the country’s struggling

exporters.

Overall retail sales in April rose 7.2% from a year earlier, the slowest pace

since May 2003, data from the National Bureau of Statistics (NBS) showed.

That undershot March’s 8.7% and forecasts of 8.6%.

The data suggested consumers were now beginning to cut back

spending on everyday products such as personal care and cosmetics,

while continuing to shun more expensive items such as cars.

“Weak retail sales partially stemmed from a deterioration in employment

and declining income of the middle-and-low income groups,” said Nie

Wen, an economist at Hwabao Trust.

“In terms of future policies to keep consumption as the stabilizer of the

economy, China might roll out targeted tax cuts or subsidies to the

middle-and-low income groups.”

As a whole, Chinese data for April largely pointed to a loss of momentum,

after surprisingly upbeat March readings had raised hopes the economy

was slowly getting back onto firmer footing and would require less policy

support.

Growth in industrial output slowed more than expected to 5.4% in April on-

year, pulling back from a 4-1/2-year high of 8.5% in March, which some

analysts had suspected was boosted by seasonal and temporary factors.

Analysts polled by Reuters had forecast output would grow 6.5%.

Motor vehicle production dropped nearly 16% as demand weakened,

with sedan output slumping 18.8%, the steepest decline since September

2015. Industry data this week showed auto sales fell 14.6% in April, the 10th

consecutive month of decline.

China’s exports also unexpectedly shrank in April in the face of U.S. tariffs

and weaker global demand, while new factory orders from at home and

abroad remained sluggish.

“There are still uncertainties haunting the performance of the economy.

Tensions between China and the U.S. have returned while concerns about

insufficient demand worldwide are on the rise,” Nie said.

Nie said China may need a more comprehensive cut in banks’ reserve

requirements in June before a G20 summit where Presidents Donald Trump

and Xi Jinping are expected to discuss trade.

“The funding gap in the market is relatively large,” Nie said, adding that

smaller, more targeted reductions in bank reserves may no longer be

enough to spur stronger growth.

There is relatively big room for policies to support growth, Liu Aihua, a

spokeswoman at the statistics bureau, told reporters at a briefing, adding

that employment is expected to remain steady.

The April nationwide survey-based jobless rate improved to 5.0% from 5.2%

in March, though analysts are generally skeptical of Chinese employment

data and see a rise in layoffs if export conditions deteriorate.

INVESTMENT

Adding to worries about domestic demand, Wednesday’s data also

showed an unexpected stumble in investment.

Fixed-asset investment growth slowed to 6.1% in the first four months of this

year, dashing expectations for a slight rise to 6.4%.

Growth in infrastructure spending held steady at 4.4%, with a sharp

slowdown in cement production possibly reflecting a slower-than-

expected payoff from Beijing’s efforts to fast-track road and rail projects.

China is trying to engineer a construction boom even as it steps up efforts

to ease strains on smaller companies, ranging from tax cuts to financial

incentives for firms which do not shed staff.

But private sector fixed-asset investment slowed sharply to 5.5% growth

from 6.4%, suggesting the sector continues to face difficulties. The private

sector accounts for the majority of jobs in China and about 60% of overall

investment.

One of the few bright spots in the data was property investment, a key

growth driver.

Real estate investment in April rose 12% from a year earlier, unchanged

from March, according to Reuters calculations. But demand for new

homes remained weak, weighing on sales of appliances and furniture.

TRADE TENSIONS

Washington dramatically escalated its 10-month tariff war with Beijing on

Friday by raising levies on $200 billion of Chinese goods in the midst of

trade talks, and Trump has threatened new levies on all remaining U.S.

imports from China, sending global financial markets into a tailspin.

China retaliated on Monday, though on a smaller scale.

The two sides appear deadlocked in negotiations. But Trump softened his

tone on Tuesday, insisting that talks between the world’s two largest

economies had not collapsed.

Economists at Citi estimate the U.S. tariff increase could lop 50 basis points

off China’s GDP growth, reduce exports by 2.7% and cost the country

another 2.1 million jobs, though they are optimistic a trade deal will be

reached eventually.

Analysts at BofA Merrill Lynch believe a prolonged period of brinkmanship

would drag China’s growth to 6.1% this year, from a near 30-year low of

6.6% in 2018.

They expect more policy easing in the short term, further cuts in banks’

reserve requirements and another surge in bank lending, as well as

consumer subsidies to boost sales of products such as cars, appliances

and smartphones.

Some companies such as BMW have already lowered their prices after

China cut the value-added tax (VAT) from April 1.

“We have full confidence in China’s economic prospects,” Geng Shuang,

spokesman at the Chinese foreign ministry, said at a daily news briefing.

“U.S. protectionist and bullying actions will have some influences on the

Chinese economy, but they can be completely overcome. If some

people are not willing to do business with China, others will naturally fill this

gap.”

<< Back to news headlines >>

No easy options for China as trade war, U.S. pressure bite Wednesday 15th May, 2019 – Reuters

China is running out of options to hit back at the United States without

hurting its own interests, as Washington intensifies pressure on Beijing to

correct trade imbalances in a challenge to China’s state-led economic

model.

China said this week it would impose higher tariffs on most U.S. imports on

a revised $60 billion target list. That’s a much shorter list compared with the

$200 billion of Chinese products on which Washington has hiked tariffs.

Washington has also turned up the heat on other fronts, from targeting

China’s tech firms such as Huawei and ZTE to sending warships through

the strategic Taiwan Strait.

As the pressure mounts, Chinese leaders are pressing ahead to seal a deal

and avoid a drawn-out trade war that risks stalling China’s long-term

economic development, according to people familiar with their thinking.

But Beijing is mindful of a possible nationalistic backlash if it is seen as

conceding too much to Washington.

Agreeing to U.S. demands to end subsidies and tax breaks for state-

owned firms and strategic sectors would also overturn China’s state-led

economic model and weaken the Communist Party’s grip on the

economy, they said.

“We still have ammunition but we may not use all of it,” said a policy

insider, declining to be identified due to the sensitivity of the matter.

“The purpose is to reach a deal acceptable to both sides.”

The State Council Information Office, finance ministry and commerce

ministry did not immediately respond to Reuters’ requests for comment.

Of the retaliatory options available to China, none come without

potential risks.

RESTRICTING U.S. IMPORTS

Since July last year, China has cumulatively imposed additional retaliatory

tariffs of up to 25 percent on about $110 billion of U.S. goods.

Based on 2018 U.S. Census Bureau trade data, China would only have

about $10 billion of U.S. products, such as crude oil and big aircraft, left to

levy duties on in retaliation for any future U.S. tariffs.

In contrast, U.S. President Donald Trump is threatening tariffs on a further

$300 billion of Chinese goods.

The only other items Beijing could tax would be imports of U.S. services. The

United States had a services trade surplus with China of $40.5 billion in

2018.

But China does not have as much leverage over the United States as it

might seem because large parts of that surplus are in tourism and

education, areas that would be more difficult for the Chinese government

to significantly roll back, James Green, a senior adviser at McLarty

Associates, told Reuters.

China is more likely to further erect non-tariff barriers on U.S. goods, such

as delaying regulatory approvals for agricultural products, said Green,

who until August was the top U.S. Trade Representative official at the

embassy in Beijing.

HURTING U.S. FIRMS

Trade analysts say China could reward other global companies at the

expense of U.S. firms, replacing for example Boeing planes with Airbus jets

where possible.

But there is considerable risk for China in transitioning its retaliation from

tariffs to non-tariffs barriers on U.S. companies because doing so would

intensify perceptions of an uneven playing field in China and incentivise

some firms to shift sourcing or investment outside the country, they say.

Trump has called for U.S. firms to move production back to the United

States.

“The medium- to long-term ramifications on supply chains are being

deeply underestimated. I would be severely concerned if I was China,”

Robert Lawrence, a nonresident senior fellow at the Peterson Institute for

International Economics, recently told journalists in Beijing, where a group

from the think-tank met with senior Chinese officials.

After trade negotiations hit a wall last week and led to the imposition of

new tariffs, Chinese state media has stepped up nationalist rhetoric,

vowing that China won’t be bullied.

But analysts say Beijing, at least for the time being, is trying to keep the

trade war from seeping into the larger political arena.

“I don’t think they see that as in their interests, and are worried that anti-

Americanism becomes anti-regime very quickly,” said Green.

DEVALUING THE YUAN

A weaker yuan could help mitigate the impact on China’s exports from

higher U.S. tariffs, but any sharp yuan depreciation could spur capital

flight, analysts say.

Chinese leaders have repeatedly said they will not resort to yuan

depreciation to boost exports, and the central bank has said it will not use

the currency as a tool to cope with trade frictions.

The yuan has lost just over 2 percent against the dollar so far this month as

the trade war intensifies, but analysts said the depreciation is likely to be

market-driven.

DUMPING U.S. TREASURIES

Investors are concerned that China, which is the largest foreign U.S.

creditor, may dump Treasury bonds and send U.S. borrowing costs higher

to punish the Trump administration.

But most analysts say such an action by China is unlikely as it risks starting a

fire sale that would burn its own portfolio too.

China’s massive Treasury holdings totaled $1.131 trillion in February,

according to the latest U.S. data.

CIRCUMVENTING THE U.S.

The near-term shock to China’s economy from higher U.S. tariffs could be

mitigated by increased policy stimulus to spur domestic demand.

Chinese exporters are diversifying overseas sales, helped in part by

Beijing’s Belt and Road initiative to recreate the old Silk Road.

To meet its demand for raw materials, China is also seeking alternative

overseas suppliers.

Chinese purchases of U.S. soybeans - once China’s biggest import item

from the United States - came to a virtual halt after Beijing slapped 25%

tariffs on U.S. shipments last year.

Beijing has since scooped up soybeans from Brazil.

<< Back to news headlines >>

Futures dip after China data shows slowing retail sales Wednesday 15th May, 2019 – Reuters

U.S. stock index futures slipped on Wednesday, as grim data out of China

cast a shadow over market sentiment, while investors awaited more

developments related to the U.S.-China trade dispute.

Markets took a breather on Tuesday after U.S. President Donald Trump

called the trade war with Beijing as “a little squabble” and said he would

talk to Chinese President Xi Jinping at a G20 Summit in Japan late next

month.

The optimistic comments followed a market rout on Monday, when the

S&P 500 and the Dow recorded one of Wall Street’s worst declines this

year as the two sides imposed tit-for-tat tariffs on each others imports.

However, China is running out of options to hit back at the United States

without hurting its own interests. Data from Beijing showed surprisingly

weaker growth in retail sales and industrial output for April, adding

pressure on the country to roll out more stimulus.

Concerns that the trade dispute could be protracted and may impact

the global economy has kept investors on edge over the past couple of

days, with the benchmark S&P index now about 4% below its all-time high

reached two weeks ago.

At 6:54 a.m. ET, Dow e-minis were down 75 points, or 0.29%. S&P 500 e-

minis were down 7.75 points, or 0.27% and Nasdaq 100 e-minis were down

18.75 points, or 0.25%.

Among stocks, Perrigo Company PLC dropped 1.3% in premarket trading

as Jefferies lowered its price target on the generic drugmaker after the

company’s recent move to divest its higher margin generic pet care

business.

Henry Schein Inc fell 1.2% after SVB Leerink downgraded the dental

products distributor to “market perform” from “outperform”, citing

competitive threat from online suppliers such as Amazon.com Inc and

eBay Inc.

On the macro front, the U.S. Commerce Department is expected to report

retail sales numbers for April at 8:30 a.m. ET, which is expected to rise 0.2%,

following a 1.6% rise in March.

<< Back to news headlines >>

Trump expected to sign order paving way for U.S. telecoms ban on

Huawei Wednesday 15th May, 2019 – Reuters

President Donald Trump is expected to sign an executive order this week

barring U.S. companies from using telecommunications equipment made

by firms posing a national security risk, paving the way for a ban on doing

business with China’s Huawei, three U.S. officials familiar with the plan told

Reuters.

The order, which will not name specific countries or companies, has been

under consideration for more than a year but has repeatedly been

delayed, the sources said, asking not to be named because the

preparations remain confidential. It could be delayed again, they said.

The executive order would invoke the International Emergency Economic

Powers Act, which gives the president the authority to regulate

commerce in response to a national emergency that threatens the United

States. The order will direct the Commerce Department, working with

other government agencies, to draw up a plan for enforcement, the

sources said.

If signed, the executive order would come at a delicate time in relations

between China and the United States as the world’s two largest

economies ratchet up tariffs in a battle over what U.S. officials call China’s

unfair trade practices.

Washington believes equipment made by Huawei Technologies Co Ltd,

the world’s third largest smartphone maker, could be used by the Chinese

state to spy. Huawei, which has repeatedly denied the allegations, did

not immediately comment.

The White House and Commerce Department declined to comment.

Chinese Foreign Ministry spokesman Geng Shuang said during a daily

briefing in Beijing on Wednesday that the United States had been

“abusing its national power” to “deliberately smear” and suppress certain

Chinese companies.

“This is not honorable, nor is it just,” he said.

“We urge the United States to stop using the excuse of security issues to

unreasonably suppress Chinese companies, and provide a fair, just, non-

discriminatory environment for Chinese companies carrying out normal

investments and operations in the United States.”

The United States has been actively pushing other countries not to use

Huawei’s equipment in next-generation 5G networks that it calls

“untrustworthy.” In August, Trump signed a bill that barred the U.S.

government itself from using equipment from Huawei and another

Chinese provider, ZTE Corp.

In January, U.S. prosecutors charged two Huawei units in Washington state

saying they conspired to steal T-Mobile US Inc trade secrets, and also

charged Huawei and its chief financial officer with bank and wire fraud

on allegations that the company violated sanctions against Iran.

The Federal Communications Commission in April 2018 voted to advance

a proposal to bar the use of funds from a $9 billion government fund to

buy equipment or services from companies that pose a security threat to

U.S. communications networks.

Federal Communications Commission chairman Ajit Pai said last week he

was waiting for the Commerce Department to express views on how to

“define the list of companies” that would be prohibited under the FCC

proposal.

The FCC voted unanimously to deny China Mobile Ltd’s bid to provide U.S.

telecommunications services last week and said it was reviewing similar

prior approvals held by China Unicom and China Telecom Corp.

The issue has taken on new urgency as U.S. wireless carriers look for

partners as they rollout 5G networks.

While the big wireless companies have already cut ties with Huawei, small

rural carriers continue to rely on both Huawei and ZTE switches and other

equipment because they tend to be cheaper.

The Rural Wireless Association, which represents carriers with fewer than

100,000 subscribers, estimated that 25 percent of its members had Huawei

or ZTE equipment in their networks, it said in an FCC filing in December.

At a hearing Tuesday, U.S. senators raised the alarm about allies using

Chinese equipment in 5G networks.

The Wall Street Journal first reported in May 2018 that the executive order

was under review. Reuters reported in December that Trump was still

considering issuing the order and other media reported in February that

the order was imminent.

<< Back to news headlines >>

May to launch new push on her Brexit deal next month Wednesday 15th May, 2019 – Reuters

British Prime Minister Theresa May will launch another push next month to

approve Britain’s exit from the European Union before the summer break,

setting a new deadline for her Brexit plan and a potential timetable for

her own departure.

Nearly three years after the United Kingdom voted 52% to 48% to leave

the EU, politicians still disagree about when, how or even if the divorce will

take place.

Brexit had been due to take place on March 29, but May was unable to

get her divorce deal ratified by parliament, which rejected the so-called

Withdrawal Agreement three times, and now the date is set for Oct. 31.

In a change of tack, her spokesman said she was now planning to put

forward a Withdrawal Agreement Bill, which implements the terms of

Britain’s departure, in the week beginning June 3 to try to secure Brexit

before lawmakers go on summer holiday.

“It is imperative we do so then if the UK is to leave the EU before the

summer parliamentary recess,” the spokesman said after May met

opposition Labour leader Jeremy Corbyn as part of talks to secure his

party’s support for the bill.

“We will therefore be bringing forward the Withdrawal Agreement Bill in

the week beginning the 3rd June,” he said, citing the same week as U.S.

President Donald Trump’s state visit to Britain.

But Corbyn, whose negotiating team has been holding talks with

government ministers for more than four weeks to find a way to break the

deadlock in parliament, raised doubts over whether Labour could back

the Withdrawal Bill.

“In particular he raised doubts over the credibility of government

commitments, following statements by Conservative MPs (members of

parliament) and cabinet ministers seeking to replace the prime minister,”

his spokesman said.

By restarting the process to get parliamentary approval for a deal she

agreed with the EU in November, May is also trying to signal to her own

party that she will honour her promise to step down as leader when the

agreement is passed.

May, who secured the Conservative Party leadership and the premiership

in the chaos that followed Britain’s 2016 vote to leave the EU, is under

pressure from some of her own lawmakers to set a date for her departure.

U.S. investment bank JP Morgan said on Tuesday it was difficult to see May

surviving beyond the end of June.

DELAYS

As positions harden in parliament, with many wanting to either leave the

EU without a deal or to stop Brexit altogether, May has turned to Labour,

led by Corbyn, a veteran socialist, to negotiate a way to break the

impasse.

Despite opposition from some in her party, senior ministers agreed at a

cabinet meeting earlier to press ahead with the talks, May’s spokesman

said.

“Ministers involved in the negotiations set out details of the compromises

which the government was prepared to consider in order to consider an

agreement which would allow the UK to leave the EU with a deal as soon

as possible,” the spokesman said.

“However, it was agreed that it is imperative to bring forward the

Withdrawal Agreement Bill in time for it to receive royal assent by the

summer parliamentary recess.”

Parliament usually breaks for the summer in the second half of July,

although the exact date has not been set.

But both May and Corbyn are under pressure from their own parties not to

give too much away in the talks.

On Monday, Labour lawmakers demanded that Corbyn clarify his Brexit

stance at a meeting with Labour lawmakers on Monday, with backers of

a second Brexit referendum and others who want a deal to leave arguing

their case, sources told Reuters.

May is under pressure not to give in to Corbyn’s demand to agree to a

customs union with the EU after Brexit.

Thirteen of May’s former cabinet colleagues as well as Graham Brady,

chairman of the 1922 Committee of Conservative lawmakers, wrote to

May on Tuesday to ask her not to agree to Labour’s demand for a post-

Brexit customs union with the EU.

“You would have lost the loyal middle of the Conservative Party, split our

party and with likely nothing to show for it,” the letter said. “We urge you

to think again.”

“No leader can bind his or her successor so the deal would likely be at

best temporary, at worst illusory,” said the letter, whose signatories

included Gavin Williamson, who was sacked as defence minister this

month, and former Foreign Minister Boris Johnson.

<< Back to news headlines >>

UK PM May says she will not pay for EU market access after Brexit Wednesday 15th May, 2019 – Reuters

Britain will not pay for access to the European Union’s market after it has

left the bloc, Prime Minister Theresa May said on Wednesday.

May’s government has been holding talks with the opposition Labour

Party aimed at finding a way forward on Brexit, and she is under pressure

from her party not to give in to Labour’s demand to agree to a customs

union with the EU after Brexit.

Asked by Conservative lawmaker Nigel Evans if Britain would have to pay

to stay in a customs union with the EU, May said: “In leaving the European

Union we will end free movement, restore full control over our immigration

policy, open up new trading opportunities around the world and end the

days of sending vast payments to the European Union.”

“We will not pay for market access,” she added.

<< Back to news headlines >>

No-deal Brexit risk is under appreciated, Britain's Brexit minister says Wednesday 15th May, 2019 – Reuters

There is an under appreciation of the risk Britain could leave the European

Union without a deal later this year, Brexit minister Stephen Barclay said on

Wednesday.

“There is an under appreciation that no deal can still happen,” he told a

committee of lawmakers from the House of Lords, the upper house of

parliament.

“If the House has not passed the Withdrawal Agreement Bill then there are

growing voices in Europe, not least the French, who want to move on to

other issues,” Barclay said.

“So there is no automatic right of an extension and in that scenario it

would then be a question for the House whether it voted for a no deal

and none of can sit here and definitively answer that question,” he said.

<< Back to news headlines >>

SoftBank leads $200 million investment in India's Grofers Wednesday 15th May, 2019 – Reuters

Japan’s SoftBank Group Corp has led an investment round of more than

$200 million in online grocery startup Grofers India through its Vision Fund,

the New Delhi-based company said on Wednesday, upping competition

in a hotly chased market in the country.

Grofers’ fresh funding comes after homegrown rival Bigbasket, which is

backed by China’s Alibaba Group, recently raised $150 million to hit a

valuation of over $1 billion. Both the startups compete with the likes of

Amazon.com and Walmart Inc’s e-commerce unit Flipkart for various

categories.

“This latest investment will help scale the company to ensure many more

customers can access the best quality products at the best prices,” Chief

Executive Albinder Dhindsa said in a statement.

Grofers did not say what it was valued at after the funding.

Softbank’s Vision Fund was set up in 2017 and is now the world’s largest

technology investment fund, with a portfolio that includes pioneer Uber

Technologies Inc, chip designer ARM and shared workspace firm WeWork.

The Japanese firm is considering an initial public offering of its $100 billion

fund, a source told Reuters earlier this month.

<< Back to news headlines >>

Apple supplier Japan Display cannot promise return to profit, bailout

worries stay Wednesday 15th May, 2019 – Reuters

Cash-strapped Japan Display warned it cannot guarantee a return to

profit this year as demand for smartphone screens stays weak, and turned

in yet another quarterly loss, casting doubt over its proposed bailout deal

with a Chinese-Taiwanese group.

The supplier for Apple Inc also said it would slash about 1,000 jobs, or a

tenth of its workforce, as it continues to bear the brunt of its late shift to

organic light-emitting diode screens and disappointing sales of the iPhone

XR, the only model with a liquid crystal display (LCD) screen.

Japan Display’s < net loss for the three months ended March was 98.6

billion yen, versus a 147-billion-yen loss a year earlier, its ninth consecutive

quarterly loss.

“We took some restructuring measures before, but they turned out to be

not enough to offset a worse-than-expected drop in demand for

smartphone (screens),” acting CEO Yoshiyuki Tsukizaki said at an earnings

briefing on Wednesday.

“The tough environment in the smartphone segment is likely to continue

through the first half,” he said, adding the company cannot promise it will

return to profit this year after five consecutive annual losses.

Japan Display’s results will be closely watched by its Chinese-Taiwanese

suitors, who delayed an up to 80-billion-yen investment this week to

reassess the company’s prospects.

However, according to Japan Display CFO Takanobu Oshima, the screen

maker is making steady progress in discussions with the buyer group.

The suitors “had conducted necessary due diligence and had no

concerns about our financial conditions,” he said at the briefing. “But the

outlook of the business is changing and they want to review that.”

The bailout deal would allow the buyers - including Taiwanese flat screen

maker TPK Holding Co Ltd and Chinese investment firm Harvest Group - to

become Japan Display’s biggest shareholders with a 49.8 percent stake,

replacing the Japanese government-backed INCJ fund.

A prolonged delay in the bailout could put at risk the survival of Japan

Display, formed in 2012 by combining the LCD businesses of Hitachi Ltd,

Toshiba Corp and Sony Corp in a deal brokered by the government.

Japan Display recorded a 75.2 billion-yen write-down in the quarter

ended March on an LCD plant launched two years ago.

Apple had requested the plant and fronted most of its $1.5 billion

construction costs, sources familiar with the matter have said. A Japan

Display executive said last month the company still owes “its client” about

100 billion yen.

<< Back to news headlines >>

Profits fall at Japan's top three banks as economy slows Wednesday 15th May, 2019 – Reuters

Japan’s three largest banks all reported lower annual profits on

Wednesday, highlighting the challenges faced by the banking industry as

the world’s third-largest economy looks to be headed for another

downturn.

The size of the declines varied - Sumitomo Mitsui Financial Group had a 1%

drop while rival Mizuho reported an 83% dive - all three show the difficulty

banks have in navigating Japan’s ultra-loose monetary policy.

Japanese banks have had to cope for years with an ageing and shrinking

population and massive central bank stimulus that has left them with

razor-thin profit margins. Now, there are signs of economic weakness on

the horizon.

A government assessment this week showed Japan may already be in

recession due to the impact of a U.S.-China trade war and weak external

demand. That is likely to drive up bad debt costs for banks as more loans

go sour.

“Our core profit fell for a fourth straight year. We had expected this, but

the environment is very tough,” Kantesugu Mike, the chief executive of

top lender Mitusbishi UFJ Financial Group, told a briefing.

MUFG, one of the world’s largest banks by assets, reported a 12 percent

slide in annual net profit, reflecting the squeeze on lending margins. The

bank was also hit by a one-time charge from suspending development of

a new system at a credit unit, reflecting increased competition from

cashless services.

Mizuho, Japan’s second-largest bank by assets, reported an 83% percent

decline in net profit, to 96.6 billion yen ($884 million), in the year through

March 2019.

That marked its weakest performance since the global financial crisis

when the bank made a loss. The result was widely expected after Mizuho

cut its outlook for the year two months ago.

Mizuho said it was hit by the cost of closing domestic branches and

restructuring its securities portfolio.

CHALLENGES ABOUND

“The restructuring costs that the bank incurred in its domestic retail

business highlight the challenges that Japanese banks face in keeping

their retail businesses profitable amid an aging and shrinking population,

and given the persistent ultra-low domestic interest rates,” analyst Tetsuya

Yamamoto of Moody’s said in a note about Mizuho.

Sumitomo Mitsui, Japan’s third-largest bank by assets, reported a 727-

billion-yen net profit for the year just ended from 734 billion yen in the

previous year. For the year ending March 2020, SMFG forecast profit of 700

billion yen, down nearly 4 percent from the year just ended.

Bank of Japan Governor Haruhiko Kuroda on Wednesday said he was not

considering additional easing right now but would consider it without

hesitation if consumer prices lost momentum.

“We have decided we should be prepared for a certain amount of credit

costs for this year,” Mizuho Chief Executive Tatsufumi Sakai told a news

conference, referring to money put aside to cover bad loans.

Mizuho also announced a five-year business plan saying it needed to be

able to respond quickly to structural changes, including Japan’s low

birthrate and the industry’s increased use of technology.

It said it would target consolidated net profit of 900 billion yen by 2023.

<< Back to news headlines >>

Next government seen relying on RBI rate cuts to spur growth Wednesday 15th May, 2019 – Reuters

India’s slowing economy will need a boost soon after the current election

but budget stresses mean New Delhi probably has to rely on the Reserve

Bank of India to provide it through more interest rate cuts, according to

two senior finance ministry officials.

The government lacks the ability to hike already-planned spending to spur

growth, they said, as revenue in the year ending March 2020 is likely to be

below target while borrowing will rise, mainly for a new farm support

scheme.

“Right now the government is not thinking of any stimulus. I do not think

we can afford it, as any package would ultimately lead to higher

borrowing,” one of the ministry officials, who insisted on anonymity, told

Reuters.

The government has a fiscal deficit target of 3.4% of gross domestic

product for 2019/20.

The finance ministry did not respond to a request for comment.

A LIMITED IMPACT

While the RBI is likely to be open to more policy easing, provided inflation

does not surge, their impact on economic activity may be limited, given

debts burdening India’s state banking sector.

Two rate cuts this year have barely reduced loan and deposit rates.

The finance ministry official said the RBI needs to provide additional

liquidity to ensure rate cuts pass to bank customers. The central bank has

injected $13 billion into the system in the past two months through open

market operations and forex swaps, but the officials expect more.

The second official said the ministry is working on a plan to infuse capital

into state-run banks in exchange for equity. State-run banks have asked

for a 500 billion rupees ($7.12 billion) fund infusion in 2019/20, sources said.

Economic growth, which hit a five-quarter low of 6.6% in October-

December, appears to be slowing. March industrial output contracted for

the first time in nearly two years, surveys show a slackening in

manufacturing and services growth, while car and motorbike sales have

tumbled.

The slip in growth comes at a time many economists are questioning the

quality of official data and suggesting past levels have been overstated.

The trade war between the United States and China has sparked worries

about a weakening in the global economy. New Delhi officials are

concerned that low-cost Chinese goods which can’t find a home in the

United States might be dumped in India.

Economists agree that the next administration - whether again led by

Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) or by its

opponents - will urgently seek to lift growth.

The 39-day general election ends on May 19, with counting of votes on

May 23.

The central bank has cut its benchmark repo rate by 50 basis points this

year to 6.0%. The two finance ministry officials said the government

expects at least another 50 bps cut by August. The next RBI policy

meeting is June 6.

Gopal Krishna Agarwal, BJP’s economic affairs spokesman, said the

government “needs to focus on lowering of interest rates, higher spending

and asset creation so that demand is created.” The party proposes

spending 100 trillion rupees over five years to build roads, railways, ports

and rural infrastructure.

Indian media this week quoted a senior official as saying the corporate

affairs ministry is working on a plan to waive debt of very small businesses

and individuals with annual earnings below 60,000 rupees, or about $850.

That could cost as much as 200 billion rupees.

But finance ministry officials say any such plan would have to be funded

by budget cuts elsewhere and is unlikely to start in the current fiscal year.

FOCUS ON STABILITY

The Congress party has pledged to give 72,000 rupees to each of India’s

poorest families, but this won’t be immediately implemented, should it

form the government, due to concerns this will make the fiscal deficit

balloon.

“The immediate focus has to be the macro-economic stability,” P.

Chidambaram, former finance minister and a senior Congress leader, told

Reuters. “It’s only when the growth process starts we can find the

revenues for implementing all this.”

In the 2019/20 budget, the government expanded its borrowing

programme by 1.4 trillion rupees to more than 7 trillion rupees.

The government expects to fall short of its 2019/20 indirect tax target of

13.8 trillion rupees, 20% above last year, making it harder to meet its

revenue target. Also there could be losses from state-run banks and other

companies, such as Air India, which might need further government

support.

“In 2019/20, fiscal deficit is expected to be much higher than the budget

target,” predicted former RBI Governor Bimal Jalan.

($1 = 70.2360 Indian rupees)

<< Back to news headlines >>

Euro zone economy accelerates in first-quarter as Germany rebounds Wednesday 15th May, 2019 – Reuters

The euro zone economy accelerated quarter-on-quarter in the first three

months of the year, the EU’s statistics office confirmed on Wednesday,

thanks to a rebound in the biggest economy Germany and the end of a

technical recession in Italy.

Eurostat said the economy of the 19 countries sharing the euro expanded

by 0.4% quarter-on-quarter in the January-March period, the same as its

initial estimate, after 0.2% growth in the last three months of 2018.

Year-on-year, the euro zone grew by 1.2% in the first quarter, also as

previously estimated, the same rate as at the end of last year.

The quarterly acceleration was mainly thanks to Germany, which

rebounded to 0.4% growth from zero growth in the previous three months.

Italy also helped as it rallied from a technical recession of two consecutive

quarters, when its economy contracted each time by 0.1%. It expanded

by 0.2% in the first quarter of 2019.

<< Back to news headlines >>

Italian budget worries knock European shares lower Wednesday 15th May, 2019 – Reuters

Italian shares led losses in Europe on Wednesday after the country’s

deputy prime minister said Rome was ready to break EU fiscal rules,

masking early gains fueled by optimism around U.S.-China trade rhetoric.

The pan-European STOXX 600 index fell 0.1% by 0910 GMT weighed down

by a 0.7% drop in the bank-heavy Italian index.

Italy’s deputy prime minister Matteo Salvini’s comments from Tuesday

have raised concerns about the country’s high spending, taking a hit on

Italian banks.

“It’s not the first time the Italians have pushed the boundaries with EU fiscal

rules, it is just this time his rhetoric has come at a time when the markets

are probably more sensitive to this commentary than normal,” said John

Woolfitt at Atlantic Markets.

The European banks lost 0.3%, also weighed down by some disappointing

earnings.

Raiffeisen Bank International (RBI) and Dutch bank ABN Amro both missed

profit expectations. French bank Credit Agricole’s first-quarter net profits

dropped after two one-off events offset gains in profitability at some of its

businesses.

Bucking the trend was British bank CYBG Plc, which rose 4% after posting a

first-half profit.

European markets witnessed a strong rebound from two-month lows on

Tuesday after U.S. President Donald Trump adopted a softer tone on trade

following a recent flare-up in tensions between Beijing and Washington

with both sides slapping duties on each others’ imports.

Autos, which were among the leading gainers a day earlier, slipped 1.1%,

weighed down by shares of Renault and Volkswagen.

Renault’s Japanese partner Nissan issued a bleak earnings outlook.

In an earnings-heavy day for British companies, London’s FTSE 100

outperformed its peers. The blue-chip index was helped by Compass

Group Plc shares after the caterer raised its full-year revenue outlook. [.L]

E.ON tumbled more than 5%, among the biggest losers, as Goldman

Sachs downgraded the energy company’s stock. Its shares also traded

ex-dividend. On the other hand, its rival RWE rose after beating quarter

profit expectations.

Meanwhile, latest data showing euro zone economy accelerated

sequentially first quarter of 2019, helped by a rebound in the biggest

economy Germany, failed to lift investors’ spirits.

“While the recession in the German industry may have started to bottom

out, businesses in the export-orientated sector barely added anything to

growth in the first-quarter,” said Florian Hense, an economist at Berenberg.

“The German economy is not out of the woods, yet.”

<< Back to news headlines >>

German data fails to lift euro from one-week low Wednesday 15th May, 2019 – Reuters

The euro held at a one-week low on Wednesday, ignoring data from

Germany that showed the economy returned to growth in the first

quarter, as trade tensions between the world’s two biggest economies

cast a shadow over risk appetite.

The single currency has been caught in the cross-currents of an escalating

dispute between Washington and Beijing since last week, unable to

conclusively rise above the $1.1250 level.

“The announcement of the increased trade tariffs has generated

negative sentiment about global growth and that is exerting downward

pressure on the euro despite the German data,” said Nikolay Markov,

senior economist at Pictet Asset Management.

U.S. President Donald Trump threatened higher tariffs on billions of dollars

of Chinese imports last week, and Beijing responded with planned tariff

hikes of its own on Monday.

The escalation in the trade dispute comes at a time when latest data from

Germany showed the economy returned to growth in the March quarter

as householders spent more freely and construction activity picked up.

The single currency was broadly steady at $1.1213 - just above a one-

week low of $1.1197 hit in the Asian session and more than 3% below a

2019 high of nearly $1.16 in early January.

Germany’s economic figures were a sole bright indicator in an otherwise

slate of dismal data.

China on Wednesday reported surprisingly weaker growth in retail sales

and industrial output for April, adding pressure on Beijing to roll out more

stimulus as the trade war with the United States rumbles on.

“We expected the data to be worse than last month, but this is going to

increase concerns about the state of the Chinese economy. The market

will be very nervous and looking out for the PMI data,” said Commerzbank

FX strategist Esther Maria Reichelt.

The Aussie dollar dropped as low as $0.6922, its lowest level since Jan. 3

when a flash crash in the foreign exchange markets rocked major

currencies.

Barring that level, the currency was at its weakest in three years and down

0.2% on the day.

The weak data gave further impetus to Aussie bears to add to their

negative bets with net outstanding short positions still below 2019 highs of

above $5.2 billion.

The Aussie is often seen as a proxy for Chinese growth because of

Australia’s export-reliant economy and China being the country’s main

destination for its commodities.

Domestic data added to the woes, with the pace of growth in Australian

wages stagnating.

Neighbouring New Zealand saw its currency dip 0.1% to $0.6567.

The Chinese yuan itself was slightly improved on the day at 6.8993 per U.S.

dollar, but still close to a five-month low hit on Tuesday.

<< Back to news headlines >>

Rising U.S. oil output helps fill gap left by Iran, Venezuela Wednesday 15th May, 2019 – Reuters

The world will require very little extra oil from OPEC this year as booming

U.S. output will offset falling exports from Iran and Venezuela, the

International Energy Agency said on Wednesday.

The IEA, which coordinates the energy policies of industrial nations, said

Washington’s decision to end sanctions waivers that had allowed some

importers to continue to buying Iranian crude added to the “confusing

supply outlook.”

“However, there have been clear and, in the IEA’s view, very welcome

signals from other producers that they will step in to replace Iran’s barrels,

albeit gradually in response to requests from customers,” the Paris-based

IEA said in its monthly report.

“There is certainly scope for other producers to step up production,” it

said, adding that it estimated OPEC states in April had produced about

440,000 barrels per day (bpd) less than the amount agreed in a

production pact, with Saudi Arabia producing 500,000 bpd below its

allocation.

The IEA said there was a “modest offset to supply worries from the

demand side”, as it expected growth in global oil demand to be 1.3

million bpd in 2019, or 90,000 bpd less than previously forecast. It said 2018

demand growth had been estimated at 1.2 million bpd.

It said global oil demand would average 100.4 million bpd in 2019,

exceeding 100 million bpd for the first time.

It also said higher output from producers outside the Organization of the

Petroleum Exporting Countries, especially the United States in the second

quarter, would keep the market well supplied.

U.S. production of oil and condensates was forecast to rise by 1.7 million

bpd in 2019. Crude oil would account for about 1.2 million bpd of that rise,

the IEA said, although it added that said this would be lower than U.S.

crude oil output growth of 1.6 million bpd in 2018.

The IEA said reduced rig counts and maintenance in the Gulf of Mexico

had affected U.S. output in the first half of the year, but an uptick in drilling

permits and hydraulic fracturing, or fracking, early in the year would lift

output.

Global oil supply in April fell 300,000 bpd, the IEA said, with Canada,

Kazakhstan, Azerbaijan and Iran leading the losses. But OPEC crude

output rose by 60,000 bpd to 30.21 million bpd, on higher flows from Libya,

Nigeria and Iraq, it added.

The IEA said the call on OPEC would be 30.9 million bpd in the second

quarter of 2019 and would fall to 30.2 million bpd in the second half of the

year.

<< Back to news headlines >>

Rise of smaller rivals throws up fresh challenge to bitcoin Wednesday 15th May, 2019 – Reuters

Bitcoin’s weathered hacks, heists, booms and busts to reign as the king of

cryptocurrencies through its first decade. But now there’s a fresh

challenge to its dominance of the fledgling market: some 2,000 smaller

digital coins.

Collectively, “altcoins” are gaining ground on their bigger cousin.

Individually, they are gaining traction among users, gathering

communities of developers and users often deeply devoted to their goals.

Bitcoin now accounts for around 60% of the $240 billion crypto market,

down from nearly 90% just over two years ago. That fading dominance

reflects tough times for the original cryptocurrency since its late 2017

apex.

Bitcoin has almost doubled in value this year, rallying nearly 30% in recent

days to touch its highest level in ten months on Tuesday. But last year it lost

three-quarters of its value.

That volatility has put off mainstream investors from pension funds to asset

managers who are seen as crucial to bitcoin’s growth from speculative

token to established asset.

Bitcoin has also struggled for traction as means of payment, its intended

usage. Few but cryptocurrency diehards go shopping with the digital

currency.

Enter the altcoins.

Binance Coin and Bitcoin Cash, Tether, Monero and Dash: The diversity of

their names reflects myriad protocols and groups of users, traders and

developers behind them.

They also suffer from high volatility and few are used for mainstream

payments. But playing out in their growth is a slow-burn tussle that analysts

and academics describe as a race to find the answers to bitcoin’s flaws.

It’s one that could shape the evolution of cryptocurrencies and related

technologies like blockchain.

MONEY OF THE INTERNET?

The two biggest altcoins, Ethereum and XRP, together account for about

a fifth of the coin market, with respective circulations of $22 billion and $17

billion. Others, with names like AnarchistCoin and CryptoPing, are illiquid

and seldom used.

“Their proliferation is driven by the need to spark new innovation – security

innovations, or a new algorithm that allows faster transaction to a new

blockchain,” said Paolo Tasca, who runs University College London’s

Centre for Blockchain Technologies.

The emergence of a de facto “money of the internet” - a digital coin that

is recognized and accepted online - is widely seen as a prerequisite for

cryptocurrencies to break through into the mainstream.

Bitcoin, seen as the most likely to take that mantle, has mostly failed to live

up to its billing.

Without doubt, it’s the most well-known of its kind. And to the extent they

do look at cryptocurrencies, larger investors tend to gravitate towards

bitcoin.

But its use in commerce is hamstrung by high transaction costs and low

speed. And for all its proponents’ claims that it is “digital gold,” bitcoin’s

volatility means that it is highly impractical as a store of value.

“Bitcoin was designed to be the money of the internet, but that was a

very early idea,” said Hugo Volz Oliviera, an analyst at trading platform

London Block Exchange. “Other projects have tried to fill the gap that

exists.”

Some, like ethereum, power blockchain-based applications. Others,

known as “stablecoins,” look to overcome the problems associated with

wild price fluctuations by being pegged to fiat currency.

A bigger proportion still are essentially clones of bitcoin, offering little in the

way of radically difficult uses. Some, such as Litecoin, are designed to

tackle some of bitcoin’s weaknesses, such as slow transactions.

Bitcoin proponents point to initiatives such as the Lightning network - code

that can be added to the blockchain that’s designed to make payments

faster and cheaper - that could help it overcome its structural flaws.

And even as altcoins spread, high-profile supporters such as Twitter CEO

Jack Dorsey see bitcoin maintaining its dominance. In an podcast

released in February, Dorsey said bitcoin will become the internet’s native

currency, given that it was born, developed and tested online.

PURE SPECULATION, OR BETS ON THE FUTURE?

Altcoins outperformed bitcoin by four percent in the first quarter of this

year, according to Cumberland, a major cryptocurrency trader based in

Chicago.

And if the burgeoning number of altcoins is a product of the

technological hunt for answers to bitcoin’s weaknesses, investor interest

can be seen as bets on which altcoin will gain ground for payments or

transfers, or as a store of value.

“What you’ve had is a maturation of the altcoin market, and you’ve got

investors and traders more comfortable understanding the fundamentals

around what they’re buying,” said Bobby Cho, Cumberland’s chief

operating officer.

Others say altcoin trading is mostly speculative, with investors interested

less in the technicalities and communities of various coins than simply their

potential to make money.

New York-based Grayscale, the world’s largest cryptocurrency asset

manager that oversees assets worth $1.3 billion, said average weekly

investments for the year to the end of March for altcoin products were

$1.2 million, versus $3.9 million for bitcoin.

“There is no doubt that as investors become further drawn into the space,

they do like to diversify into other digital assets,” said Michael

Sonnenshein, its chief executive.

<< Back to news headlines >>

Prime minister, agriculture minister in London for meetings on new markets Wednesday 15th May, 2019 – Reuters

The government of Saint Lucia recognizes that a successful agriculture

industry is critical to the sustainable development of Saint Lucia. Hence,

the government continues to enhance and source markets for the island’s

new and emerging crops as well as current crops such as bananas.

In that regard, Prime Minister Honourable Allen Michael Chastanet and

Minister for Agriculture, Fisheries, Physical Planning, Natural Resources and

Co-operatives, Honourable Ezechiel Joseph, are currently in London for

meetings with Winfresh at Stansted and various suppliers including

Sainsbury, the third largest chain of supermarkets in the United Kingdom

and Waitrose & Partners, a chain of British supermarkets.

The government also continues to explore new avenues with the French

market, with testing of Saint Lucia’s product in that market expected to

begin later this year.

During the prime minister’s absence, Minister for Equity, Social Justice,

Local Government and Empowerment, Honourable Lenard Montoute, will

serve as acting prime minister.

<< Back to news headlines >>

Saint Lucia’s tourism minister issues challenge to Caribbean rum producers Wednesday 15th May, 2019 – Reuters

Caribbean rum producers have been challenged to fully exploit the

potential of the regional tourism industry to build their brands.

St. Lucia’s Minister of Tourism and Chairman of the Caribbean Tourism

Organisation (CTO), Dominic Fedee, said there was tremendous

opportunity for the region’s two preeminent brands – tourism and rum.

Rum producers from the Caribbean Community, the Dominican Republic,

and members of the West Indies Rum & Spirits Producers Association

(WIRSPA) met in St. Lucia on May 6 and May 7 for their biannual directors’

and annual general meetings.

During the meetings, head of the Guyana conglomerate Demerara

Distillers, Mr. Komal Samaroo, was re-elected chairman of the grouping.

Issuing his clarion call at a tasting of Authentic Caribbean Rums, Minister

Fedee lamented the low profile given to the iconic rum brands being

produced in the region.

Fedee said: “As a people we need to be prouder of our indigenous world

class brands. Many persons aspire to foreign brands, while consumers in

those self-same countries crave our products. With some 40 million visitors

coming to our countries each year. We have a unique opportunity for

them to sample and purchase our products, whether it be on board ship,

in our resorts, or in our community tourism initiatives.”

Responding to the call, Samaroo said: “The potential to improve the visitor

package and to increase exposure of our high-quality premium brands

through leveraging our 300-plus years of rum history and heritage are well

appreciated, and an opportunity our producers are actively addressing.”

However, according to Samaroo: “The availability of imported duty-free

spirits to both visitors and locals alike, whether through legitimate sale or

through lax controls, is a real threat to our domestic markets. We have

recently placed this as an active issue before CARICOM ministers of trade

and we will work with governments to address these challenges which

impact so negatively on our international competitiveness.”

Margaret Monplaisir, managing director of St. Lucia Distillers, said: “Visitors

are an increasingly important part of our business model. We are currently

planning a major investment in a new visitor facility that will expose the

best of St. Lucia and of course the best of our rums.”

The investment, she explained, “is a substantial one and when completed,

will be among St. Lucia’s premier visitor attractions”.

ABOUT WIRSPA

The West Indies Rum & Spirits Producers’ Association (WIRSPA) is one of the

oldest private sector trade associations in the Caribbean. It represents rum

producers in Antigua & Barbuda, Barbados, Belize, Haiti, Dominica,

Dominican Republic, Grenada, Guyana, Jamaica, St. Vincent & the

Grenadines, St. Lucia, Suriname and Trinidad & Tobago.

Authentic Caribbean Rums, the products produced by the membership of

WIRSPA, represent a unique and distinct sector within the drinks industry,

supported by common quality standards and rules. The Authentic

Caribbean Rum (ACR) Marque was developed as a symbol of

authenticity, provenance and quality for rums, within the WIRSPA family.

<< Back to news headlines >>

Scotia takes the lead Wednesday 15th May, 2019 – Trinidad Express Newspaper

Overall stock market activity yesterday resulted from trading in 19

securities of which five advanced, seven declined and seven traded firm.

Trading activity on the First Tier Market registered a volume of 171,648

shares crossing the floor of the Exchange valued at $3,858,206.33.

Scotiabank Trinidad and Tobago Ltd was the volume leader with 43,773

shares changing hands for a value of $2,738,650.43. Massy Holdings Ltd

registered the day's largest gain, increasing $0.50 to end the day at

$55.50. Conversely, Trinidad and Tobago NGL Ltd registered the day's

largest decline, falling $1.02 to close at $28.13. On the Mutual Fund Market

4,825 shares changed hands for a value of $ 99,946.25. CLICO Investment

Fund was the most active security, with a volume of 3,425 shares valued at

$ 78,946.25.

The Second Tier Market did not witness any activity. The SME Market did

not witness any activity. The USD Equity Market did not witness any activity.

<< Back to news headlines >>

Imbert: Train One, Dragon will not collapse economy Wednesday 15th May, 2019 – Trinidad and Tobago Newsday

Finance Minister Colm Imbert says a fall off of 100 million cubic feet by

BPTT and a delay in the Dragon gas field will not collapse the economy.

He was winding up debate late on Monday night, on a motion to adopt

the Standing Finance Committee for the supplementation of

appropriation for fiscal 2019 report, hours after he presented the mid-year

budget review in Parliament. He was responding to concerns expressed

by BPTT on its ability to provide natural gas for Atlantic LNG Train One.

He said this country has grown from 3.3 billion standard cubic feet in 2017

to 3.6 billion in 2018 and now to 3.8 billion in 2019. “There is continuous

growth and momentum in the production of natural gas and that is what

is driving our economy.”

He added one would think the commentators would know this and would

do the maths. He reported BPTT has plugged and abandoned one well

and another well was producing lower than expected – 50 or 75 million

standard cubic feet compared to 100 million – but it was still commercially

viable. He said it was his understanding the well will be brought into

production in the next couple months.

Imbert said BPTT has just pressed the “pause button” because of the

disappointing results from the two wells. He also noted a change of

leadership at the company with an accountant (Claire Fitzpatrick) who

would have to rely on technocrats. He said there may be technical or

commercial reasons for the decision by BPTT and pointed to the

negotiation of the new contact for Train One.

“It is certainly not a calamity. Absolutely not.” He said there are other

companies operating in TT including BHP Billiton, EOG and Shell, which is

the majority shareholder in Train One. He added if BP does not agree with

the terms of the Train One contract the gas can go to other trains or new

or current industries.

“The gas not going to rotten. It not going to evaporate. It will be there.”

Imbert said BP is the largest natural gas producer in TT with half of four

billion cubic feet of production. He added, however, with BP there may

be a falloff in gas production in 2020 of maybe 100 million cubic feet per

day which is less than five per cent of national production.

“And that is certainly not going to collapse the economy and cause any

major damaging effect on Government revenues and the growth

momentum that is apparent in our economy.”

He also said Dragon gas from Venezuela represented 200 million cubic

feet or five per cent of national production. He stressed there will be no

calamity if Dragon is delayed for a year or two.

<< Back to news headlines >>

NCB completes GHL takeover Wednesday 15th May, 2019 – Trinidad and Tobago Newsday

The Jamaican conglomerate NCB Financial Group Ltd and its subsidiary

NCB Global Holdings Ltd have successfully completed its takeover of

Trinidadian insurance giant Guardian Holdings Ltd. NCB made the

announcement on Monday via a news release.

The company acquired the 74,230,750 ordinary GHL shares it had hoped

for, bringing its total shareholding to 62 per cent. It also received all

necessary regulatory approvals from TT and Jamaica. NCB's take-over

offer closed on May 3. The company paid for the shares on Monday.

A net total of 117,971,970 shares were tendered in response to the offer,

after taking into account 796,364 shares tendered but not accepted

based on the terms and conditions.

GHL offered US$2.79 per share, or about US$207 million.

NCB chairman Michael Lee-Chin said the transaction was a game-

changer for the region. "Amidst the context of the de-risking impacting

the region, we are proud and excited about the implications and

prospects of two leading indigenous Caribbean institutions coming

together to drive economic growth, customer and shareholder value."

Group president and CEO Patrick Hylton added, “NCB and GHL

combined have the opportunity to become a world-class financial

services conglomerate, which has positive implications for our

shareholders, our region and its citizens.”

GHL CEO Ravi Tewari said since the acquisition of the first block of shares

in 2016, the Guardian Group began to see opportunities for a positive

impact for shareholders, clients and employees of the Guardian Group. "

This further deepening of the relationship between two leading Caribbean

companies augurs well for the acceleration of these positive impacts for

Guardian and the region.”

<< Back to news headlines >>

Toyota predicts flat year for vehicle industry Friday 10th May, 2019 – Trinidad and Tobago Guardian

Due to the challenging economic period in Trinidad and Tobago, Toyota

is expecting limited growth for the vehicle industry.

At the unveiling event for the launch of the 2019 RAV 4, Vice President,

Ryan Latchu said: "Our projections, because of the decline in the market

year on year for the last two years, we anticipate this year to be relatively

flat to last year.”

He said: “There are a few tenders, there are new opportunities in the

market and with new model introductions like the RAV 4, and some other

models by our competitors, I think we anticipate it to be flat with last

year.”

With regard to the difficulties in obtaining Foreign Exchange, Latchu said

that the company adopted a different strategy to conserve foreign

exchange usage.

He said: "Foreign Exchange continues to be a problem nationally as we

know.”

Latchu continued: "We took, a decision in 2017 that we would diversify our

product portfolio to really bring in lower level cars so that the public has

an option and not tie up too much foreign exchange at the same time.”

<< Back to news headlines >>

Barbudan business owners to benefit from small grant Wednesday 15th May, 2019 – The Daily Observer

A Barbudan, who has partnered with the Barbuda Resilience Fund at the

International Community Foundation, has made it possible for a few

entrepreneurs whose businesses were ravaged by Hurricane Irma in 2017

to benefit from a grant-funding project.

Rae Beazer, through a successful proposal, was able to garner support for

a project that was set up to help Barbudans who operated businesses

before and after Hurricane Irma and have taken steps to redevelop said

businesses on their own.

“A lot of persons had the opportunity to write proposals through this entity

and I wrote one, and the one that I wrote was this, which is a small

business grant for small businesses here in Antigua and Barbuda. It’s

basically where people who owned a business before the hurricane can

now be helped,” Beazer said in an interview on the Barbuda Channel.

She said her proposal was prompted by the observation that while the

houses were being rebuilt in Barbuda, the businesses had failed to gain

any traction.

Beazer said it is the business community that will cause the island to thrive

again.

As a result of her initiative, total of 16 owners of small businesses will be

afforded the opportunity to select $3,000 worth of equipment from the

Town House Mega Store in Antigua. The grant also includes free travel to

and from Barbuda to collect and transport the items.

Beazer is no stranger to lifting a finger to help those in need, as – upon

realizing that there were no schools after the Category 5 Super Hurricane

had destroyed the island – she opened a temporary learning center at

the People’s Church in Barbuda.

The school registered 54 students with only five trained teachers.

<< Back to news headlines >>

VI accounts reportedly affected in FirstBank 'security breach' - Account

holders urged to report suspicious activities ‘immediately’ Wednesday 15th May, 2019 – Virgin Island News Online

With reports that the FirstBank branch in neighbouring United States Virgin

Islands (USVI) has been cancelling debit cards of account holders,

following an external security breach, Virgin Islands News Online (VINO)

understands that some accounts in the Virgin Islands (BVI) have also been

affected.

USVI marketing and communications manager, Alana Alexander had

shared with our correspondent, The VI Consortium on May 11, 2019, that

the breach was not of the bank’s online systems, rather, at a number of

third-party merchants throughout the USVI territory and beyond, where

FirstBank account holders made transactions.

Situation in VI

She told the Consortium that so far about 50 FirstBank account holders

have been identified as affected, although the number could rise and

that emails were sent to all those affected.

While it was unclear at the time if VI account holders were affected,

through inquiries to the bank’s Facebook page, Virgin Islands News Online

(VINO) has been reliably informed that the situation may be much larger

than is being revealed.

A customer service representative behind the company’s official FirstBank

Virgin Islands Facebook page, on inquiry, said the situation further

affected Puerto Rico and some accounts here in in the VI.

“If your account was one of the affected you should have received an

email from the bank. If you verify the account and see something

suspicious you should communicate immediately,” they said.

The exact amount of accounts affected in the VI is not known at this time,

however, the customer service representative further said, “If you

received [an] email saying that your account was one of the affected,

call us at +18666952511” or provide a phone number for a representative

to make contact.

Cards Cancelled

Among the accounts receiving the emails was a VI Consortium FirstBank

account. The email reads: “Due to a possible external security incident to

FirstBank, your debit card number ending in [redacted] may have been

compromised. Given this situation, and to reduce the risk of improper

access to your account, we will be cancelling your card effective on

Monday, May 13, 2019.”

Efforts by Virgin Islands News Online to contact the FirstBank's corporate

office through a number listed on their website proved futile, however, this

news site will update the story as more information becomes available.

<< Back to news headlines >>

State of internet service hampering economic growth- Premier Fahie- To

meet urgently with telecommunications companies to address

‘technological crisis’ Wednesday 15th May, 2019 – Virgin Island News Online

The state of internet service in the Territory has been described as a

“technological crisis” by Premier and Minister of Finance Honourable

Andrew A. Fahie (R1), who says he intends to urgently summon heads of

the various telecommunications companies to address the issues.

Premier Fahie, in a statement today, May 13, 2019, said it is self-evident

that a modern communication network is crucial for the development of

every economy, including in the British Virgin Islands.

In was in November 2017 that an international report had listed the Virgin

Islands as having one of the most expensive and “underperforming”

internet services worldwide.

“More crucially, given that our economy is largely based on tourism and

financial services, the need for reliable, efficient and relatively inexpensive

communication system are key ingredients for growth and development,”

Premier Fahie stated.

Economic growth being hampered

The Leader of Government Business added that given the reality of the

modern-day economy, the Government of the Virgin Islands (VI) wants to

encourage private sector investment and development of the

communications architecture here.

He; however, added that the VI wants partners who understand the

developmental needs, and who understand that by making

communication reliable and affordable, it helps grow the market in which

they are operating, ultimately broadening their base in the long term and

increasing their profitability.

“The people of the Virgin Islands and those we do business with have

become very concerned about (a) the reliability of our internet services

and (b) the cost of it.

“The current state of affairs is hampering our economic growth.”

Internet Service in VI too expensive

Premier Fahie reasoned that studies have shown the Virgin Islands has one

of the most expensive internet services in the region and that

neighbouring islands with similar potential customer base are blessed with

more reliable services and at far less the cost that the VI people have had

to bear.

He said in some cases, taking into consideration exchange rates, VI

customers are paying four times the cost for the same type of service as in

some of the other islands of the region.

“Adding insult to injury, our people on a regular basis have had to endure

regular outages, and many reports of consequent poor customer

services.”

According to a November 21, 2017 press release by Cable.co.uk, a

broadband, TV and phone comparator, over 3,351 broadband packages

were recorded and analysed by BDRC Continental and Cable.co.uk

between August 18 and October 12, 2017. It said the study of broadband

pricing in 196 countries reveals vast global disparities in the cost of getting

online.

The study found that Saint-Martin offers the cheapest broadband in the

Caribbean, with an average package price of USD 20.72 per month, with

the [British] Virgin Islands (USD 146.05), Antigua and Barbuda (USD 153.78),

Cayman Islands (USD 175.27) and Haiti (224.19) at the most expensive end

both regionally and globally.

Meanwhile, in a previous study, the Virgin Islands was among 139

countries that failed to achieve average speeds above 10Mbps, a speed

deemed by telecoms watchdog Ofcom to be the minimum required to

cope with the needs of a typical family or small business.

In April of 2018 Government had given local telecommunications

providers until the end of that year to at least start showing signs of

improved internet service.

‘Urgent meeting’ to be called

The Premier announced that his office will inform the local regulatory

authorities to look into the concerns immediately.

“Additionally, as the Minister responsible for Telecommunication Services, I

intend to call an urgent meeting with the heads of the

telecommunications companies operating in the Territory to address what

we view as a technological crisis. The meeting with all the relevant

stakeholders in the telecommunication industry and the Premier will be

sought forthwith.”

Premier Fahie promised to inform all of the people of the VI of the

outcome of his meeting.

“We need all hands-on deck to confront this challenge and solve the

problems for the benefit of our people and the national economy. The

cries of our people in this area will not go unheard and unaddressed any

longer.

“Together we will persevere until the BVI, in the not too distant future,

experiences better internet and other telecom services,” Premier Fahie

stated.

<< Back to news headlines >>

Costa Rica Formalized US$111 Million Dollar Loan For Water Projects Wednesday 15th May, 2019 – Today Costa Rica

The Instituto Costarricense de Acueductos y Alcantarillados (AyA) – Costa

Rica’s water and sewerage utility and the Central American Bank for

Economic Integration (Cabei) closed a US$111.3 million-dollar loan

agreement to partially finance an aqueduct and sewerage program for

Atlantic and Pacific coastal areas.

The “Potable Water and Sanitation in Coastal Zones, Quality

Management and Service Efficiency Program” requires a total investment

of US$140 million, of which the remaining US$28.7 million will be provided

by AyA.

The program is composed of the construction project for the new National

Water Laboratory and five water sanitation projects, namely:

• Improvements to the Guácimo de Limón Aqueduct

• Improvements to the Limón Potable Water Supply System

• Improvements and Expansion of the aqueduct system of Jacó,

Garabito

• Improvements to the Aqueduct of Quepos and Manuel Antonio

• Construction of sanitary sewer in Moín, Limón

• Construction of a new National Water Laboratory in the

Ochomongo locality of Cartago

The Moín sanitation project includes the construction of a Sanitary Sewer

Network and Wastewater Treatment Plant. Currently, the population is in a

protected area, where the springs of the area are located.

There is no treatment for wastewater that is collected in septic tanks,

therefore, the project will have a significant impact on the reduction in

the water table contamination of these springs. 93% of the population will

have access to the sanitary sewer system.

Participants at the signing event included the President of Costa Rica,

Carlos Alvarado Quesada; Executive President of the Costa Rican Institute

of Aqueducts and Sewers, Yamileth Astorga Espeleta; and CABEI Country

Manager for Costa Rica, Mauricio Chacón.

The National Water Laboratory’s infrastructure is more than 75 years old

and not entirely suitable for studies, trials and research related to the work

of an ideal and modern laboratory in line with the current accreditation

approaches.

The construction of the new National Water Laboratory will enable an

increased productivity, implementation, research and development of

trials, analysis and studies with state-of-the-art and innovative technology

to ensure an adequate supply of water for human consumption, as well

as sanitation and wastewater, thus guaranteeing the improvement and

sustainability of water quality, a reduction of pollution and better working

conditions and safety for employees and users.

In a statement, the CABEI Country Manager for Costa Rica, Mauricio

Chacón, stated that, “The development of these projects gives an

important boost to the quality of life of Costa Rican citizens in rural areas

with a high impact on the health and economy of these populations,

while also promoting efficiency, quality and the significant contribution

that these projects provide to the environment. CABEI is committed to

supporting institutions, such as AyA, whose projects and management

significantly impact on the economic development of the country’s rural

areas, inclusion and poverty reduction.”

“The Program is a priority for the country, since it represents social

investment in basic infrastructure of aqueducts and sewage systems and

service quality management at the national level, especially to important

populations of the provinces of Limón and Puntarenas,” Chacón added.

The projects under the program are expected to be completed between

2022 and 2024.

<< Back to news headlines >>

U.S. FAA Downgrades Costa Rica’s Air Safety Rating Wednesday 15th May, 2019 – Today Costa Rica

The new rating means Costa Rica’s carriers, Volaris and Avianca Costa

Rica*, can continue existing service to the United States but will not be

allowed to establish new service to U.S. destinations.

The downgrading from Category 1 to Category 2 means Costa Rica either

lacks the laws or regulations necessary to oversee air carriers in

accordance with minimum international standards, or the Direccion

General de Aviacion Civil (DGAC) – Civil Aviation – is deficient.

The FAA did not elaborate.

Costa Rica was assigned a Category 1 rating in 1996. The FAA conducted

an in-country reassessment of Costa Rica in October 2018 and had met

with DGAC officials in February to discuss the results.

The Minister of Public Works and Transportation, Rodolfo Méndez Mata,

did comment on the downgrade, saying “We do not know if that

transcendent aspect is weighing for the resolution that they have issued

by virtue of the strong implication that it has (…) It is one of the most

important findings that they have claimed where they imply a slowness in

the attention procedure timely application of that rule”.

However, there are at least 22 findings and there is a report that,

according to Civil Aviation and the MOPT, they do not know.

The Minister only explained that the indications are related to

backwardness in regulations related to the licenses that are granted to

aeronautical personnel, with aircraft operations and airworthiness.

“The main issue that emerged is the delay in implementing amendments

that come out of ICAO, at the macro level is what the minister mentioned;

for years, no follow-up was given to these amendments,” confirmed

Guillermo Hoppe, Director of the DGAC.

Hoppe, however, insisted that they do not know the details of the study.

According to the DGAC director, on Monday, representatives of the US

embassy in San Jose informed him of the downgrade. Months ago, he

said, the atmosphere was very positive.

For now, he said, it is up to Civil Aviation to continue working.

“We will continue to monitor all operators and aircraft that enter Costa

Rican skies. We take care of regulating, of certifying and after that, giving

due vigilance to all the operators at a national level,” Hoppe said.

Hoppe expressed that it is “complex to be able to correct deficiencies of

the last 9 to 10 years in a matter of a few months. The idea is to implement

them so that the operators apply them,” acknowledged Hoppe.

Not about the air accidents

Hoppe denied that the downgrade has any relation with air accidents,

specifically with the tragedy of December 31, 2017, when a small plane

with 10 Americans and two Costa Rican crew crashed in Corozalito de

Nandayure, Guanacaste. All died.

The aircraft was operated by Nature Air, a company that at that time was

facing economic problems and operations difficulties. In fact, months

later, the shutdown operations.

Downgrade believed not to affect tourism

Rodolfo Méndez affirmed that the downgrade will activate a joint work

with the FAA to recover the qualification.

“We are to understand that this will not affect the tourist arrivals, it (the

downgrade) has a unique effect on Costa Rican airlines licensed for flights

to the U.S.”, explained Méndez.

Méndez stressed that it does not affect international airlines with flights to

and from Costa Rica and that the audit that resulted in the downgrade

has nothing to do with airport security either.

The minister said that international airlines are not affected.

“The foreign flag airlines that arrive and operate in Costa Rica have their

normal operation and can increase the frequency of their flights if they

want,” said the director of the DGAC.

*Avianca Costa Rica (formerly known as LACSA – Lineas Aéreas

Costarricenses S.A.) operates international scheduled services to over 35

destinations in Central, North and South America. The airline previously

used the TACA/LACSA moniker when it was a subsidiary of Grupo TACA.

Since May 2013, following Avianca’s purchase of Grupo TACA, Avianca

Costa Rica became one of seven nationally branded airlines (Avianca

Ecuador, Avianca Honduras, etc.) operated by Avianca Holdings group

of Latin American airlines.

<< Back to news headlines >>

Russia Ready To Diversify Costa Rica’s Energy Market Monopolized By US Wednesday 15th May, 2019 – Today Costa Rica

Russia is willing to help Costa Rica diversify its petroleum products market,

which at present is fully dependent on the United States, said Alexey

Kudachkin, Charge d’affaires a.i. of the Russian Federation.

Image for illustrative purposes

“Costa Rica brings in from the United States the vast majority – some 95% –

of the petroleum products (gasoline, fuel oil and diesel). They would like to

diversify this market,” said Kudachkin.

The diplomat added that Russian companies may show interest in

diversifying Costa Rica’s petroleum products market rather than solely

being interested in petroleum products.

“The Costa Ricans know that we have big experience in building gas and

oil pipelines. Maybe they will try to agree and explore our experience in

this area”, he said.

Costa Rica has since 2002 a moratorium on research and development of

mineral resources. In February last, President Carlos Alvarado signed a

decree extending to 2050 the moratorium on oil exploration and

exploitation, both in the continental and marine territory.

“There is no production at all. They bring oil products from abroad, and in

sufficiently large number. The volume of imported products is about US$4

to US$5 billion dollars annually”, Kudachkin said.

May 8 marked the 75th anniversary of the establishment of diplomatic

relations between Russia and Costa Rica.

On May 25, 2019, an agreement enters into force between the

Governments of the Russian Federation and Costa Rica by which the visa

requirement to travel between both countries.

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