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

▪ Home Mortgage Bank’s rating reaffirmed at CariA

▪ NCB Cayman Limited’s rating reaffirmed at CariA

▪ NiQuan Energy Trinidad Limited’s initial rating assigned at CariA+

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

▪ NCB Financial Group Limited’s rating reaffirmed at CariA-

▪ National Commercial Bank Jamaica Limited’s rating reaffirmed at CariBBB+

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

▪ TRINRE Insurance Company Limited’s initial rating assigned at CariA- ▪ NCB Capital Markets Limited’s rating reaffirmed at CariBBB

▪ Government of Anguilla removed from rating watch and reaffirmed at CariBBB+

▪ Colonial Fire & General Insurance Limited’s rating reaffirmed at CariA

▪ Mystic Mountain Limited’s initial rating assigned at CariBBB-

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REGIONAL

Trinidad and Tobago

PM: Develop price index to get fair returns

PRIME MINISTER Dr Keith Rowley has called on the Gas Exporting Countries

Forum (GECF)-an organisation comprising 11 of the world's largest natural

gas producers-to 'expediously' develop and implement a gas pricing

index to ensure T& T and other GCEF countries get fair returns on exports.

TSTT wants to eliminate union

A PLAN by the majority State-owned telecoms providers TSTT to restructure

its operations, particularly its employee base, is being viewed as a 'union-

busting' initiative by the company's bargaining body, the Communication

Workers Union (CWU).

Business Mixer connects financial professionals

MT HOPE SAGICOR Life Inc and Sagicor General Insurance partnered with

the Arthur Lok Jack Global School of Business at their annual Alumni

Business Mixer on September 27 at Mt Hope.

JMMB leads trading

OVERALL stock market activity resulted from trading in 16 securities of

which seven advanced, six declined and three traded firm yesterday.

Barbados

CDF members may receive less help

Countries in this region that benefit from the Caribbean Development

Fund (CDF), are at risk of getting less assistance for critical projects in the

future because the more “developed” countries are not meeting their

pledged contributions.

Jamaica

DBJ Bats For Small Investors In Wigton Divestment

Managing Director of the Development Bank of Jamaica (DBJ) Milverton

Reynolds has given the assurance that small investors will not be crowded

out when the divestment process for the Wigton Wind Farm in Rose Hill,

Manchester, is completed.

German Energy Firm To Launch IPO In Jamaica

A foreign investor in Jamaica's largest solar farm under construction in

Westmoreland will be floating shares on the Jamaica Stock Exchange, via

an initial public offering likely by month-end, as part of a regional plan to

raise US$200 million in capital.

$1-billion disaster-mitigation programme

GOVERNMENT will be spending almost $1 billion in the final round of a

national disaster -mitigation works programme, which will lead into to the

Christmas season, Prime Minister Andrew Holness informed the House of

Representatives yesterday.

Guyana

APNU retains control of city

THE A Partnership for National Unity (APNU) retained control of Guyana’s

capita, Georgetown, collecting 21 of the 30 seats on the 30-member

council. The party achieved this by winning 12 of the 15 constituencies.

The Bahamas

Pm Calls For More Tourism Diversity

THE PRIME Minister yesterday stressed that The Bahamas needs to increase

tourism diversification to realise the still "untapped" potential of this nation's

major industry.

Soaraway Bahamas? 59% Cruise Spend Rise

Cruise passenger spending in Nassau and Freeport soared by 59 percent

over the past three years, making The Bahamas the third highest-yielding

destination in the Caribbean.

British Virgin Islands

UK Overseas Territories director concludes visit to BVI

The director for the Overseas Territories in Britain’s Foreign and

Commonwealth Office (FC), Ben Merrick, concluded his visit to the British

Virgin Islands on Friday, November 9.

The Dominican Republic

Tourism works to attract 1.2M+ cruise passengers

The Tourism Ministry continues its efforts to attract more cruise passengers

to the Dominican Republic as their favorite destination and thus exceed

the 1.2 million which visited the country last year.

St. Kitts and Nevis

Authorities in St. Kitts look to implement additional energy efficiency

initiatives

St. Kitts’ vision is to become the smallest green nation in the Western

Hemisphere – with a sustainable energy sector, where reliable, renewable,

clean and affordable energy services are provided to all of its citizens.

Against this backdrop, energy stakeholders are well on their way to roll out

a number of additional energy efficiency initiatives.

St. Lucia

Saint Lucia to upgrade cooperation in Agriculture with Taiwan

A high-level agriculture delegation aimed at boosting cooperation in

Agriculture between St. Lucia and Taiwan ended five days of

consultations on Friday 9th November.

PM Chastanet re-elected as political leader of UWP

Prime Minister Allen Chastanet has been re-elected unopposed as

Political Leader of the United Workers Party (UWP).

Venezuela

Fuel shortages the new normal in Venezuela as oil industry unravels

With chronic shortages of basic goods afflicting her native Venezuela,

Veronica Perez used to drive from supermarket to supermarket in her gray

Chevrolet Aveo searching for food.

Other Regional

Cayman Islands on track for record surplus

The Cayman Islands government’s fiscal performance is on track for a

record surplus. The financial results for the first nine months of this year

show the public purse bursting at the seams with a net surplus of $183.8

million. A 99 percent increase on the projected figures, government has

already collected $91.3 million more than it had budgeted.

CDB and UNDP collaborate for innovation in growth for the blue economy

The Caribbean Development Bank (CDB) chief economist, Justin Ram

and The United Nations Development Programme’s (UNDP) policy

specialist in development finance, Gail Hurley, have collaborated to share

insightful thoughts on the need for financing initiatives to spur growth in

the Blue Economy.

RENAC and IFC partner to green the banking sector in Latin America and

the Caribbean

The International Finance Corporation (IFC), a member of the World Bank

Group and the Renewables Academy AG (RENAC), an international

training provider for green energy technologies, today signed a

cooperation agreement to support green banking in Latin America and

the Caribbean (LAC) at the Federation of Latin American Banks

(FELABAN) Annual Assembly in Punta Cana, Dominican Republic.

INTERNATIONAL

United Kingdom

Sterling catches breath before UK cabinet meeting

Sterling steadied after posting its biggest jump in two weeks on Tuesday as

investors await the outcome of a cabinet meeting where Prime Minister

Theresa May will try to convince her ministers to accept a draft European

Union divorce deal.

Europe

German economy contracts on weak foreign trade, auto bottleneck

Germany’s economy contracted for the first time since 2015 in the third

quarter as global trade disputes and problems in the auto industry put the

traditional growth engine of exports into reverse, raising concerns that a

long expansion is faltering.

Italian bond yields jump as Rome sticks to deficit target

Italian bond yields hit three-week highs on Wednesday, widening the gap

over top-rated German peers, after Italy re-submitted its 2019 budget to

the European Commission with unchanged growth and budget deficit

assumptions but falling debt targets.

Growth angst and oil slide take European shares to two-week low

European shares hit their lowest in two weeks on Wednesday as data

showing the German and Japanese economies contracting in the third

quarter fueled worries about global growth amid a plunge in oil prices.

China

Weaker retail sales loom over China's economy despite some bright spots

China delivered a mixed economic report card for October on

Wednesday as softening retail sales pointed to a consumption slowdown,

even as a pick-up in industrial output and investment suggested support

measures may be starting to take hold.

Global

Oil seeks floor, stocks tumble, sterling braces for wild swings

Oil struggled to find a floor and stocks tumbled on Wednesday as

disappointing German GDP figures heightened worries over slowing

global growth, while the pound eased off peaks as Prime Minister Theresa

May faced the hard task of selling her Brexit deal.

Oil rises as OPEC, partners discuss supply cut

Oil rose on Wednesday, recouping some of the previous session’s slide, on

the growing prospect of OPEC and allied producers cutting output at a

meeting next month to prop up the market.

PM: Develop price index to get fair returns Wednesday 14th November, 2018 – Trinidad and Tobago Express

PRIME MINISTER Dr Keith Rowley has called on the Gas Exporting Countries

Forum (GECF)-an organisation comprising 11 of the world's largest natural

gas producers-to 'expediously' develop and implement a gas pricing

index to ensure T& T and other GCEF countries get fair returns on exports.

He said now more than ever the need for such a global reference price

was evident, to protect producers and consumers.

Rowley was addressing the opening ceremony of 20th GECF Ministerial

meeting yesterday at the Hyatt Regency (Trinidad), Port of Spain.

'In addition to facing competition from a previous importer of our product

(the United States), T& T is also suffering leakage of value of its products.

Traders have begun using the system to their advantage. Through clever

portfolio management, traders are able to benefit unfairly from our LNG

production. As such, very little of the returns from high global LNG prices

makes its way back to T& T,' he said. 'This cannot be allowed to continue

and as such, the current system must be reviewed.'

He noted that this problem of unfair benefit sharing was not unique to T&

T, as other countries may be facing it in 'some form or another'.

'The GECF has a mandate to support the sovereign rights of its member

countries over their natural gas resources and their ability to

independently plan and manage the use of natural gas resources for the

benefit of their people,' he said.

'As such, I would like to challenge the GECF to address this problem so

that our people and others will no longer be on the deprived of their

sovereign rights,' he added. Rowley emphasised that the global gas

industry had its own challenges to face and must meet certain

requirements to ensure robust growth in the future.

He said the three main pillars were cost competitiveness, security of supply

and sustainability.

'As with any other industry or commodity, cost is a direct driver in decision-

making. Natural gas must remain competitive with other fuel sources,'

Rowley stated.

He noted that the development of gas markets in Europe was driving an

evolution in gas pricing, with a shift away from oil-linked pricing to hub-

based pricing.

'This has an impact beyond Europe as this market has become the market

of last resort for LNG and thus has become an important marker in the

LNG spot market pricing,' he said.

Rowley emphasised that the global LNG trade was expected to more

than double by 2040, demand is expected to grow in every major region,

except North America (excluding Mexico) where robust growth in

domestic shale gas production has almost eliminated imports.

He said security of supply was imperative to support this anticipated

demand.

'Investment in gas pipeline and storage infrastructure is crucial in being

able to provide customers with a secure supply of product. Additionally,

supply contracts must become less rigid in order to promote a more

dynamic market with the ability to respond quickly to changes in market

conditions,' Rowley said, adding that investment in new technology was

also crucial for greater market penetration.

He said the issue of sustainability also had to be addressed by adoption of

local air pollution policies, investment in research of low carbon

technologies for gas and by finding solutions to the challenge of methane

emissions.

'Without taking such steps, the natural gas industry will not be able to

demonstrate its sustainability to cement its place in the energy mix as we

move towards cleaner energy,' Rowley said.

<< Back to news headlines >>

TSTT wants to eliminate union Wednesday 14th November, 2018 – Trinidad and Tobago Express

A PLAN by the majority State-owned telecoms providers TSTT to restructure

its operations, particularly its employee base, is being viewed as a 'union-

busting' initiative by the company's bargaining body, the Communication

Workers Union (CWU).

Secretary-general of the CWU Clyde Elder likened TSTT's plan to that

employed by State energy company Petrotrin in dealing with its union, the

Oilfields Workers' Trade Union (OWTU).

In Elder's view, TSTT wants to eliminate the CWU.

He told the Express yesterday following a meeting with the company

which lasted over five hours, that TSTT wants to reduce the union's

membership from about 1,600 workers to just under 700 workers as part of

its restructuring.

Elder, along with other union officials, met with TSTT's management

yesterday to discuss correspondence it had received from the copy the

day before on the company's restructuring.

On November 12, TSTT's senior manager, industrial relations, Arlene Arthur,

wrote to Elder reminding him of a meeting which the company had held

with the union to discuss its New Business Model.

'Subsequent to the extensive presentation at the meeting under

reference, the company gave the undertaking to provide your union with

certain documents.

In this regard, please find the enclosed documents: 1. Job description

representing new and/or modified jobs, and 2. The list of proposed

positions to be made redundant consequent to the implementation of

the new structure,' the letter said.

Elder said at its first meeting with TSTT on October 5, it had proposed

reducing the staff from 1,600 to under 900 but at another meeting on

November 5, they put the figure to under 700 which is almost half of the

union's membership.

He said at yesterday's meeting the company confirmed that there were

workers 'surplus to requirement' but that some positions, at least 62, could

be filled by redeployment.

'The principle is last in, first out,' he said.

As it stands, he contends, the utility has not given the union an exact date

for the restructuring, no names or exact numbers. He said while TSTT was,

on one hand, cutting unionised workers, it was actually rehiring workers

under the title 'professional/ exempt staff' which is outside the union's

bargaining body.

When the Express questioned, whether in his view, the company was

overstaffed, he responded: 'TSTT is not over-staffed. I agree that there are

things that can be done differently in certain areas but we are not

overstaffed.'

He noted that TSTT's wage bill for the last year was $700 million but that

unionised staffed were only paid $322 million.

TSTT losses hurt NEL

TSTT's proposed actions come on the heel of the six-month financials for

National Enterprises Ltd (NEL) which show that the company affected

NEL's profitability.

NEL chairman Ingrid Lashley said in NEL's published statements that for the

first six months of its fiscal year up to March 31, 2019, NEL experienced a

loss of $119.5 million as compared to profits of $112.8 million for the same

period on 2017.

Shares experienced a loss of $0.22 as opposed to a positive $0.17 per

share in 2017.

<< Back to news headlines >>

Business Mixer connects financial professionals Wednesday 14th November, 2018 – Trinidad and Tobago Express

■MT HOPE SAGICOR Life Inc and Sagicor General Insurance partnered

with the Arthur Lok Jack Global School of Business at their annual Alumni

Business Mixer on September 27 at Mt Hope.

The event was designed to enable networking and business-minded

discussion among alumni, students and the public.

The Sagicor Financial Café connected financial professionals and young

people in a relaxed and stressfree environment, while giving them the

opportunity to build and expand their professional network, seek new

business contacts and showcase their products and services, a Sagicor

statement said.

More than 80 alumni and students enjoyed the ambience of a café

experience at the Thomas Gatcliffe Terrace at the Arthur Lok Jack GSB as

they interacted with Sagicor advisers on their financial needs.

Sagicor also utilised a digital approach with the use of digital screens and

iPads to market its products and reinforce the value of insurance to

attendees. The business mixer also saw Sagicor collaborating with

Dwellings Home Furnishings and Brazilian coffee makers Colcafe to create

a true café atmosphere, the statement added.

<< Back to news headlines >>

JMMB leads trading Wednesday 14th November, 2018 – Trinidad and Tobago Express

OVERALL stock market activity resulted from trading in 16 securities of

which seven advanced, six declined and three traded firm yesterday.

Trading activity on the First Tier Market registered a volume of 132,366

shares crossing the floor of the Exchange valued at $759,801.13. JMMB

Group Ltd was the volume leader with 105,700 shares changing hands for

a value of $187,310. CLICO Investment Fund was the only active security

on the Mutual Fund Market, posting a volume of 3,205 shares valued at

$64,223.25.

The Second Tier Market did not witness any activity.

Mora Ven Holdings Ltd remained at $14.49.

<< Back to news headlines >>

APNU retains control of city Wednesday 14th November, 2018 – Guyana Chronicle

THE A Partnership for National Unity (APNU) retained control of Guyana’s

capita, Georgetown, collecting 21 of the 30 seats on the 30-member

council. The party achieved this by winning 12 of the 15 constituencies.

Its rival, People’s Progressive Party Civic however, improved its showing by

grabbing three constituencies and collecting another four seats through

the Proportional Representation mechanism of the Local Government

system. The Alliance For Change (AFC) won two PR seats as well.

Approximately 119,374 eligible voters were expected to cast their ballots

in the Municipality of Georgetown but by the close of poll, a meagre 28.3

per cent of the voting population had done so, confirming reports of a

low voters’ turn out.

In announcing the election results for the Municipality of Georgetown in

the mixed system of Proportional Representation (PR) and First-Past-The-

Post (FPTP), the city’s Returning Officer Duarte Hetsberger disclosed that

APNU won a total of 21 seats from a total of 30 while the PPP/C secured

seven (7) seats. The AFC – the party that forms a bloc of the current

government but opted to go it alone during this round of elections —

managed two seats.

Nine of the APNU’s seats came from the Proportional Representation (PR)

system while 12 were garnered from the First Past the Post system. PPP/C

received four seats from the PR system and three under the First-Past-The-

Post component. AFC won two seats, both under the PR component of

the elections.

In offering his breakdown in the presence of the Guyana Elections

Commission (GECOM) Public Relations Officer (PRO) Yolanda Ward, the

returning officer disclosed that a total of 28,436 valid votes were cast and

a total of 432 were rejected ballot papers.

He explained that in the PR component of the Local Government

Elections, the APNU won the hearts of voters’ securing the majority of

votes – 18,127. The People’s Progressive Party/Civic (PPP/C) came in

second with 7,050 votes while the Alliance For Change (AFC) raked in

3,059 votes. The GNS Party secured a meagre 94 votes and the United

Republican Party (URP), 106 votes.

Meanwhile, in the First-Past-The-Post component of the elections, the

voters’ confidence in Patricia Chase-Green was clearly expressed, despite

being on the firing line for the chaos at City Hall. In her constituency – No.

12, Chase-Green – an APNU member – came up against AFC’s Bryan

Nobrega, PPP/C’s Maxine Padmore, and independent candidate Hubert

Maloney. The mayor collected 2,212 of the votes. Nobrega managed to

secure only 662 votes while Padmore got 92 votes. The independent

candidate had 34 ballots cast in his favour.

When the new council is sworn into office, the Deputy Mayor Akeem Peter

will take his place around the horseshoe table at City Hall having outdone

himself in Monday’s elections. Peter, who contested in Constituency Five,

secured 1,473 voters while his contenders – AFC’s Vashti Harris, PPP/C’s

Dion Younge and Independent Candidate James Hermanstein, got 171,

419 and 295 votes respectively.

APNU’s Gregory Fraser will also be returning to the council. Fraser, who is

no stranger to the local political scene in the city, raked in 1,207 votes

thrashing his contenders. AFC’s Patricia Marks received only 210 votes and

PPP/C’s Lurlene James 200 votes.

This time around, Constituency No. 11 will be represented by Yvonne

Ferguson, who raked in 1,196 of the voters in her area. AFC’s Quincy

Alleyne managed to rake in only 170 while PPP/C’s Mark Persaud secured

760 votes but it wasn’t enough to defeat Ferguson. URP’s Jason Herbert

got 32 votes while former city councilor Eon Andrews, who had decided

to go it alone as an independent candidate, got only 193 votes.

First time candidate Denroy Tudor, who contested under the APNU

umbrella, outshone the others and pulled the majority of the votes. Tudor

raked in 1,436 votes in Constituency No. 14 while AFC’s Juliet Julian

secured 308 votes and PPP/C’s Sextus Edwards 86.

His colleague over in Constituency 15, Cilesia Hall also collected the

majority of the votes. Hall secured 614 to win herself a spot on the council

while AFC Ufax Branche and PPP/C’s Michael Moosammy secured 126

and 270 votes respectively.

APNU’s Trichria Richards copped 1,830 of the votes in Constituency No. 13

while AFC’s Jewula Ceasar and PPP/C’s Alana Persaud grabbed 403 and

213 votes respectively.

APNU’s Heston Bostwick also won in Constituency No. 10 having secured

882. AFC’s Brittany Eversley got 237 votes while PPP/C’s Ron Amos pulled

only 329 votes.

Over in Constituency Nine, APNU’s Shonelle Smith-Daniels now have the

opportunity to represent residents within the area after they threw their

support behind her. Smith-Daniels pulled 1,253 votes. AFC’s Martin Gaul

and PPP/C’s representative secured 327 and 104 votes respectively.

Independent candidate Bonar Robertson got 113 votes.

In Constituency Seven, APNU’s Ivelaw Henry secured 397 votes while

AFC’s Le Shante Marks raked in only 88 votes and PPP/C’s Bishram Kuppen

229 votes. Henry will now take up a seat on the council.

In Constituency Four, APNU’s Alfred Mentore raked in 654 votes to secure

a spot on the council while his contenders received 201 votes in the case

of AFC’s Renata Chuck A Sang; 547 votes in the case of PPP/C’s Patrick

De Santos and 89 votes went to Independent Candidate Louis Nestor,

Independent Candidate Michael Williams 58 and Independent

Candidate Phyllis Jordan, 106 votes.

Constituency One was also won by a candidate of the APNU. Ubraj

Narine who secured 816 votes defeating AFC’s Natoya Gibson (293),

PPP/C’s (559) and two independent candidates who both got below 150

votes each.

While her colleagues managed to pull the majority of the votes in their

constituencies, sitting councillor Andrea Marks suffered a major loss after

she was defeated by PPP/C’s Param Persaud in Constituency Six. Persaud

1,279 votes while Marks came sharply behind with 1,066 votes, though not

enough to return to council. AFC’s Sylvester Shim only got 148 votes.

PPP’s Dimitri Ali won a seat on the council after pulling 849 votes in

Constituency Three. APNU’s Astell Collins secured 528 votes but not

enough to defeat his PPP/C contender, however, he did receive more

votes than AFC’s Patricia Helwig who got 65 votes and the two

independent candidates who both received below 90 votes.

PPP/C also won in Constituency Two. Its candidate Nalissa Ferguson

secured 877 votes while APNU’s Shondel Hope got 756 votes. AFC’s Arnold

Sukhraj got 160 votes while two independent candidates got below 120

votes each.

<< Back to news headlines >>

Pm Calls For More Tourism Diversity Tuesday 13th November, 2018 – Tribune 242

THE PRIME Minister yesterday stressed that The Bahamas needs to increase

tourism diversification to realise the still "untapped" potential of this nation's

major industry.

Dr Hubert Minnis, addressing the Bahamas Institute of Chartered

Accountants (BICA) Accountants Week seminar opening, said: "We need

to diversify in tourism in order to realise the still untapped potential of our

major industry. Towards this end we will create a Tourism Development

Corporation to help Bahamian entrepreneurs diversify within tourism.

"As a region we are still working to develop and upgrade museums and

heritage sites which depict the traditions and heritage of our people, and

showcasing in a sustainable manner the wonders of marine life. Why are

we so narrowly focused on serving our local visitors only, instead of

focusing on providing tourism services to the wider world? We must ensure

greater ownership of our Caribbean and tourism sector by Caribbean

nationals.

"When we look at the global companies involved in packaging and

selling travel they have hundreds and thousands of employees outside our

region, yet their annual return depends on sales within our region. Only a

very tiny fraction of their hundreds of thousands of employees are

involved in local service delivery." Dr Minnis suggested that more young

Bahamians could be engaged in the tourism sector.

Speaking to the state of the Government's finances, Dr Minnis said: "I am

pleased public finances are being restored and the annual deficit is

reduced by half, even as we make significant social investment in

education, entrepreneurial programmes, combating crime and other

initiatives to involve the lives and prospects of our people.

"We are dutifully paying off, in a structured manner, substantial arrears

accumulated in the last several years. This means more money in the the

economy, and for Bahamians who have waited for many years to be

paid money owed them by the Government. We must not return to the

years of wasteful and reckless spending that threatened to wreck our

economy and future."

<< Back to news headlines >>

Soaraway Bahamas? 59% Cruise Spend Rise Tuesday 13th November, 2018 – Tribune 242

Cruise passenger spending in Nassau and Freeport soared by 59 percent

over the past three years, making The Bahamas the third highest-yielding

destination in the Caribbean.

Such findings, which showed per capita cruise passenger spending rise at

a rate more than double that of all other nations bar the Dominican

Republic, are likely to be greeted with scepticism by many in the tourism

industry - not least because they come from a report commissioned by

the cruise lines themselves.

The survey, which measures the industry's economic impact on the

Caribbean every three years on behalf of the Florida-Caribbean Cruise

Association (FCCA), said the huge leap in The Bahamas' average cruise

passenger spend was driven by increased luxury goods purchases.

Comparing 2015 results with those for this year, the report said: "The

change in the average per passenger spend ranged from an increase of

59 percent in The Bahamas - heavily driven by watches and jewellery

purchases - to a decrease of 26 percent in St Maarten."

It is unclear what would drive such a major increase in luxury goods

spending by cruise visitors to Nassau and Freeport, but the FCCA report -

produced by Business Research and Economic Advisors (BREA) - showed

per capita spending rising from $82.83, a low to average sum in

comparison to the rest of the Caribbean, to $131.95 just three years later -

an almost $50 increase.

The total per capita yield is also more than double the $60-$65 per

passenger yield cited by many observers for Nassau and Freeport. Only

the Dominican Republic's 32.9 percent spending growth rate over the

same period came close to matching the runaway Bahamas, which now

only lags St Maarten and the US Virgin Islands when it comes to per capita

cruise passenger outlay in the Caribbean.

The increased per capita yield also resulted in a near one-third increase in

total cruise passenger spending in Nassau and Freeport, with this sum said

by the FCCA report to have grown from $243.5m in 2015 to $322.57m this

year - a rise of almost $80m.

The rosy FCCA survey findings, released at the organisation's annual

conference last week, have been published at a time when the cruise

industry and its economic benefits have come under increasingly close

scrutiny and pressure from both the Government and ordinary Bahamians

alike.

Dionisio D'Aguilar, minister of tourism and aviation, could not be reached

for comment yesterday, but only last month he spoke about how the

Government had "scrapped" the cruise industry's tax incentive regime

because it was rewarding the lines for passengers who never left the ship

in Nassau and Freeport.

The minister's remarks, which suggested the Government could save $12m

per year in departure tax rebates, came as the fight over Disney Cruise

Line's plans for Eleuthera's 700-acre Lighthouse Point property drew

Bahamians' attention to the industry's private islands scattered throughout

this nation.

There is a growing perception among many Bahamians that the cruise

industry's increasingly frequent use of private islands, with calls there

before reaching Nassau and/or Freeport, are resulting in the lines retaining

the vast majority of the sector's economic benefits and spin-offs with very

little filtering down to Bahamian entrepreneurs and employees.

The focus on the industry then reached new heights when the

Government launched the bidding process seeking a private sector

manager for Nassau's cruise port - a contract that the cruise lines have

made no secret of their interest, and willingness to participate, in.

The FCCA report, meanwhile, showed The Bahamas had not fared so well

on per capita cruise crew spend, which by 8.5 percent over the three-

year period to 2018 - dropping from $60 per person to $54.90. Total crew

spending dropped from $59.7m to $28.94m as a result, a fall of 51.5

percent.

"The Bahamas was second of all Caribbean destinations with just nearly

2.9m onshore passenger and crew visits," the report said. "With an average

per passenger spend of $131.95, The Bahamas had the second highest

total of passenger spending, $322.6m.

"The Bahamas also had the second highest level of total crew spending,

$28.9m, and the highest level of cruise line spending ($54.2m). Combining

all direct expenditures, the cruise sector generated $405.8m in

expenditures. These expenditures, in turn, generated an estimated 5,256

direct jobs paying $91.3 million in direct wage income during the 2017-

2018 cruise year."

The FCCA report added that the cruise industry was estimated to support

9,004 direct and indirect jobs in The Bahamas, "paying wage income of

$155.7m, with total wages being the highest among the 36 destinations.

"Thus, in The Bahamas, every $1m in direct cruise tourism expenditures

generated 22 jobs throughout the island's economy which paid an

average annual wage of about US$17,300."

<< Back to news headlines >>

Saint Lucia to upgrade cooperation in Agriculture with Taiwan Tuesday 13th November, 2018 – St. Lucia News

A high-level agriculture delegation aimed at boosting cooperation in

Agriculture between St. Lucia and Taiwan ended five days of

consultations on Friday 9th November.

The team from the Ministry of Agriculture, Fisheries, Physical Planning,

Natural Resources and Co-operatives, was made up of the Hon. Ezechiel

Joseph and the Hon. Herod Stanislas and was supported by Ambassador

Edwin Laurent.

Immediately following a briefing on their arrival on Monday 5th November

2018, the delegation began working discussions with the Ministry of

Agriculture and then with the International Cooperation and

Development Fund (ICDF).

At the meetings, they considered the challenges facing agriculture and

farming in St Lucia and how productivity could be strengthened. The

Ministers explained to their Taiwanese counterparts the devastating

impact on agriculture of the hurricanes and severe weather that St Lucia

has experienced in recent years.

It was recognised that changes in global climate were a factor and St

Lucia’s agriculture is under pressure to adapt, as well as, to build

resilience. The meeting explored how best the countries can collaborate

to address the challenges.

At both meetings the Ministers expressed appreciation for the valuable

contribution that Taiwanese cooperation has been making to the

development of the island’s agriculture. They cited among other areas,

agricultural diversification and revitalization of the banana industry, which

includes combating black sigatoka and the introduction of new plant

varieties.

These issues were also raised at meetings with the Vice Minister for Foreign

Affairs and the President of the Legislative Yuan (Parliament).

The Embassy arranged for discussions with a cross section of companies

that have been making innovations in the agriculture technology field.

The delegation visited a Research and Extension station as well as a

farmers’ cooperative to assess how these arrangements function in

Taiwan. They also held discussions at the Taiwan Banana Research

Institute and the Pingtung University of Science and Technology which has

one St Lucian Student, Ms. Cindy Eugene.

Following those visits, the delegation held a “townhall” meeting at I-Shou

University in the city of Kaohsiung where several St Lucians are studying;

principally medicine.

Speaking before their departure from Taipei, the Ministers expressed

satisfaction with the mission and their expectations for enhanced

collaboration and support from Taiwan in the upgrading of local

agriculture and the revitalization of the banana industry.

The Ministers felt strongly that more St Lucian students should study

agriculture in Taiwan and benefit from its world-renowned expertise. They

undertook to vigorously pursue this goal.

The authorities in Taiwan expressed deep appreciation to the Ministers for

their visit and constructive discussions and were grateful for the valuable

support that St Lucia has been providing in the international arena,

particularly regarding Taiwan’s involvement in certain multilateral

institutions.

<< Back to news headlines >>

PM Chastanet re-elected as political leader of UWP Tuesday 13th November, 2018 – St. Lucia News

Prime Minister Allen Chastanet has been re-elected unopposed as

Political Leader of the United Workers Party (UWP).

The party held its 2018 Conference of Delegates in Vieux Fort on Sunday

November 11, 2018 with 300 delegates from all seventeen constituencies

represented.

All executive positions in the party were up for nomination, the majority of

which went unopposed.

Deputy Political Leaders Ezeckiel Joseph and Gale Rigobert were also re-

elected unopposed.

The nominations for Chairman, First and Second Deputy Chairman went

unchallenged resulting in Oswald Augustin, Nancy Charles and Francis

Denbow automatically being placed in these positions.

The conference of delegates concluded with an address by the re-

elected political leader Allen Chastanet, who updated the delegates on

upcoming plans for Hewanorra airport, St. Jude Hospital, OKEU, DSH, the

cruise ship port in Vieux Fort, and other development projects and

encouraged delegates to continue supporting their government and

reiterated his team’s commitment to fulfilling the promises made in the

party’s 2016 elections manifesto.

The conference approved the agenda for upcoming national convention

to be held on Sunday December 9, 2018 in Gros Islet.

<< Back to news headlines >>

Authorities in St. Kitts look to implement additional energy efficiency

initiatives Tuesday 13th November, 2018 – SKN Vibes

St. Kitts’ vision is to become the smallest green nation in the Western

Hemisphere – with a sustainable energy sector, where reliable, renewable,

clean and affordable energy services are provided to all of its citizens.

Against this backdrop, energy stakeholders are well on their way to roll out

a number of additional energy efficiency initiatives.

One of the more dynamic of such initiatives is that of geothermal.

“The biggest project we are working on is geothermal. We have entered

into an agreement with a French company and they have done some

surface survey in the area from Lamberts down to Kittitian Hill and they

have identified geothermal and they said it could be as high as 36

megawatts of electricity so we are now negotiating an agreement with

them for them to develop it,” said Bertill Browne, Director of the Energy

Unit, adding that at present St. Kitts consumes 27 megawatts of electricity.

He added that the Energy Unit is presently working with the Caribbean

Development Bank (CDB) to commission an environmental study to see

how the dwelling of geothermal would affect the community and the

environment around the area.

Also important is the idea of wind energy, which is also being considered,

as well as additional solar plants.

“We are negotiating a wind project and if it is successful it will be in the

Belle Vue area,” he said. “We are also looking into a number of solar

projects.”

Mr. Browne spoke briefly on the street lighting project which is currently

ongoing in St. Kitts. This energy efficiency project will see all street lights in

St. Kitts being replaced with Light-emitting diode (LED) lights in 2019.

To date, a number of energy efficiency projects are already contributing

to the clean energy agenda promoted by Government. These include

the solar farm at the Robert Llewellyn Bradshaw International Airport; the

solar farm at the Eastern Caribbean Central Bank (ECCB), as well as the

use of solar panels by businesses and homeowners.

<< Back to news headlines >>

Cayman Islands on track for record surplus Tuesday 13th November, 2018 – Caribbean News Now

The Cayman Islands government’s fiscal performance is on track for a

record surplus. The financial results for the first nine months of this year

show the public purse bursting at the seams with a net surplus of $183.8

million. A 99 percent increase on the projected figures, government has

already collected $91.3 million more than it had budgeted.

Officials said this was due to revenues and expenses both outperforming

initial projections and the statutory authorities and government

companies (SAGCs) doing much better than predicted, adding $15

million more to the public coffers. A decline in revenue and an increase in

spending in the last quarter is expected but the government is still on track

to exceed its original forecasts.

The unaudited Financial Report for 1 January to 30 September, released

by the minister for finance and economic development on Friday, reveals

a much better than expected performance, with core government

registering a surplus of almost $173 million and the SAGCs another $11

million. Finance Minister Roy McTaggart pointed out that government

revenue declines in the second half of the year but he remained

confident that the government will easily make its forecast surplus for the

whole of 2018.

“While revenues are generally lower in the second half of the financial

year, the government is confident that the positive results for the first nine

months of the financial year will enable us to achieve or exceed the

budgeted net surplus of $81 million by the end of this year,” he stated.

These results were achieved by higher-than-anticipated coercive

revenues from import and stamp duties, tourist fees and financial services-

related revenues, officials said in a press release about the report.

Government registered higher than budgeted revenue in most lines. On

the other side of the balance sheet government spent less than expected

on personnel and supplies. The anticipated figures in the budget for staff

was $13.2 million lower than forecast and more than $15 million for

supplies and consumables. The positive variances were reduced by

expenditures for non-government suppliers, which were $9.2 million more

than expected.

Government ended the nine-month reporting period with a healthy bank

balance, with cash and deposits standing at $535.2 million, $112 million

more than the budget prediction. Debt also fell to $430.2 million, $35.7

million lower than the debt balance this time last year.

In the report ministry officials said the performance of the first three

quarters of the year leads the government to be optimistic about hitting

the budget predictions.

“If ministries, portfolios and SAGCs remain diligent the government should,

at a minimum, achieve the budgeted EPS net surplus of $81 million at the

end of 2018,” the report states. “However, the performance of the final

quarter of 2018 will determine whether the government meets its

budgeted performance, or surpasses it by a significant margin.”

Personnel costs are expected to increase during the last quarter following

the 5 percent cost of living adjustment, which was paid in September

2018, back-dated to July 2018. But other expenditure will, at a minimum,

stay at the levels seen in the second and third quarters. Positive results in

revenue are expected to sufficiently mitigate any additional costs but

“proper diligence must be maintained”, the report warned.

<< Back to news headlines >>

UK Overseas Territories director concludes visit to BVI Tuesday 13th November, 2018 – Caribbean News Now

he director for the Overseas Territories in Britain’s Foreign and

Commonwealth Office (FC), Ben Merrick, concluded his visit to the British

Virgin Islands on Friday, November 9.

Merrick had a full programme of meetings and visits on Tortola. These

included discussions with the premier and minister of finance, Dr Orlando

Smith, the Cabinet of the British Virgin Islands, the Leader of the

opposition, members of the financial services industry and business

community and a number of public servants and agencies.

Merrick’s visit followed an earlier visit by Lord Ahmad in July 2018. His main

focus whilst there was to assess the progress of recovery following the

devastating hurricanes of 2017, to discuss recent international

requirements on the financial services industry and the long-term vision,

and to ascertain the progress on implementing the governance measures

to which the government of the British Virgin Islands has committed at the

most recent Throne Speech and in earlier Joint Ministerial Council

commitments.

Merrick said of his visit: “I have had the privilege to meet many committed

people during my time in the Virgin Islands and have been struck by both

the beauty of the territory and the determination and resilience of its

people to work towards its reconstruction.

“I am humbled by the commitment of the many public servants who

continue to work and live in very difficult conditions whilst they work

towards rebuilding the territory. The extent and breadth of the work

needed to rebuild the territory cannot be underestimated.

“There are though evidently many challenges which remain, and I have

urged the premier and his Cabinet to expedite recovery.

“The United Kingdom remains ready to support the Virgin Islands through

the £300 million loan guarantee. Now the Recovery and Development

Plan has been passed through the House of Assembly, I hope that we will

see rapid progress as the government tasks the Recovery and

Development Agency to implement the Government’s priorities as

outlined in the Recovery and Development Plan.”

Merrick added that he had been pleased to see the government’s

progress towards transparency and accountability. Publication of Cabinet

decisions had been an important first step. He also welcomed the

premier’s commitment to publishing a new Ministerial Code before the

end of the month. This would show the British Virgin Islands leading the

way.

Merrick also welcomed the positive engagement of business leaders and

the financial services industry and their commitment to the territory’s

economic development.

The governor welcomed the director’s visit which he said demonstrated

the UK’s continued commitment to work in partnership with the Virgin

Islands as it continued to work towards recovery.

<< Back to news headlines >>

CDB and UNDP collaborate for innovation in growth for the blue economy Tuesday 13th November, 2018 – Caribbean News Now

The Caribbean Development Bank (CDB) chief economist, Justin Ram

and The United Nations Development Programme’s (UNDP) policy

specialist in development finance, Gail Hurley, have collaborated to share

insightful thoughts on the need for financing initiatives to spur growth in

the Blue Economy.

As broadly described by the Commonwealth Secretariat, the ‘Blue

Economy’ is an emerging concept that encourages better stewardship of

our ocean or ‘blue’ resources. It underpins the thinking behind the

Commonwealth Blue Charter, highlighting in particular the close linkages

between the ocean, climate change, and the wellbeing of the people of

the Commonwealth.

At its heart, it reaffirms the values of the Commonwealth, including equity

and public participation in marine and coastal decision-making. It

supports all of the United Nations’ Sustainable Development Goals (SDGs),

especially SDG14 ‘life below water’, and recognises that this will require

ambitious, co-ordinated actions to sustainably manage, protect and

preserve our ocean now, for the sake of present and future generations.

Not solely for small island states in the Caribbean, the blue economy goes

beyond viewing the ocean economy solely as a mechanism for

economic growth. In the ‘business-as-usual’ model, large-scale industrial

nations have seen the development of their ocean economies through

the exploitation of maritime and marine resources – for example through

shipping, commercial fishing, and the oil, gas, minerals and mining

industries – often without a view to the effects their activities have on the

future health or productivity of those same resources.

Ram and Hurley estimate that, globally, ocean-based activities

generated over US$1.5 trillion in economic output in 2010 and were

directly responsible for over 31 million jobs, primarily in fisheries, tourism, off-

shore oil and gas exploration and port activities. By 2030, on current

trajectories, the ocean’s value added is expected to rise to US$3 trillion,

and associated employment to over 40 million.

However, the state of the world’s oceans and seas threatens these

benefits. Climate change, pollution and overfishing pose significant

threats to the sustainability of the oceans and the economic rents they

could provide. For small island states where the ocean’s role as a source

of subsistence and income is magnified, business as usual cannot

continue.

Ram and Hurley have outlined a four-point policy checklist for digging

deeper into the Blue Economy in an attempt to extract value:

1. Proactively manage coastal and marine resources

The absence of a strong policy framework for managing coastal and

ocean resources, and weak enforcement of existing legislation have

hindered expansion of the blue economy. Smart, integrated coastal

management considers the long-term sustainability of economic

activities, ensuring that growth in one sector does not diminish the long-

term viability of other sectors. Plans to grow the blue economy should

involve strategies to protect the marine space and to tangibly share

dividends with coastal communities. Grenada leads the region with its

Blue Growth Coastal Master Plan and the associated Integrated Coastal

Zone Management Policy.

2. De-Risk (climate-smart) blue investments

In the blue economy space, challenges associated with small markets

and infrastructural deficiencies are compounded by higher risks

associated with investing in coastal and ocean assets that are directly

threatened by environmental degradation and climate change. These

lead to elevated financing costs. Policymakers can put in place a

package of targeted public interventions to address risks and thereby

reduce financing costs. These interventions include strategies to reduce

risk (e.g. through better renewable energy policy design, institutional

capacity building); strategies to transfer risk (e.g. through loan guarantees

issued by public development banks); or strategies to compensate for risk

(e.g. through price premiums). UNDP’s ‘De-risking Renewable Energy

Investment’ framework assists policymakers to implement a different mix

of policy and financial instruments so as to address renewable energy

investment risks and cost-effectively achieve a risk-return profile that

catalyses private sector investment at-scale.

3. Improve the ease of Doing Business in the Blue Economy

On average, CDB’s borrowing member countries rank 123 out of the 190

countries in the World Bank’s 2018 Ease of Doing Business Index. In many

states, entrepreneurs have to contend with difficulties accessing credit,

registering property, enforcing contracts, and realising cross-border trade,

among other things. As in other economic sectors, this hampers economic

diversification and also domestic and foreign investment in the blue

economy. Implementing policies to improve the ease of establishing and

operating businesses in the blue economy will be vital to simulate private

sector-led growth, investment, and employment. Such policies may

include reducing the cost and the administrative and legal processes for

establishing and financing new businesses; introducing tax incentives for

businesses that help to build coastal resilience; and liberalising certain

markets (e.g., marine passenger transport).

4. Collaborate Regionally to Sustainably Exploit our Shared Space

The Caribbean’s ocean resources are shared and activities within one

country’s exclusive economic zone can have significant impacts on the

health and value of resources in the marine space of its neighbours. Both

domestically and regionally, public rights of access and shared benefit of

the coasts and oceans introduce another layer of complexity that needs

to be addressed in countries’ blue economy development strategies. A

regional approach is critical to develop a cohesive and effective strategy

to sustainably exploit these resources. The Organisation of Eastern

Caribbean States (OECS) and World Bank are implementing a Caribbean

Regional Ocean Policy to facilitate co-operation for transitioning to a blue

economy. The CDB/UNDP paper also advocates for a regional policy

approach to ensure maximum benefits are achieved and shared across

the region.

The work the CDB is doing with development partners at the UN and

others is important. It is hoped that small island states in the Caribbean will

see the benefit of the work they are doing, in an attempt for small island

states to become more sustainable and to use their resources wisely.

<< Back to news headlines >>

RENAC and IFC partner to green the banking sector in Latin America and

the Caribbean Tuesday 13th November, 2018 – Caribbean News Now

The International Finance Corporation (IFC), a member of the World Bank

Group and the Renewables Academy AG (RENAC), an international

training provider for green energy technologies, today signed a

cooperation agreement to support green banking in Latin America and

the Caribbean (LAC) at the Federation of Latin American Banks

(FELABAN) Annual Assembly in Punta Cana, Dominican Republic.

The main objective of the cooperation is to support the green

transformation of banking in LAC towards a greener business model that

mitigates challenges from climate change and that fosters green business

opportunities.

Insufficient knowledge about climate-related challenges and

opportunities is the main barrier to developing greener banks as

concluded by the 2017 “IFC-Green Finance Latin American Survey”,

replied by 25 percent of all LAC commercial banks. The IFC-RENAC

alliance focuses on providing educational programs to train bankers in

the economic and financial aspects of renewable energy and energy

efficiency projects.

RENAC, a leading international provider of training and capacity building

in renewable energy (RE) and energy efficiency (EE), will integrate its

“Green Banking – Capacity Building for Green Energy and Climate

Finance Program” into the knowledge offering of the newly established

IFC-GBAC (Green Banking Academy). “We are proud to be part of this

initiative,” says Berthold Breid, CEO of the Renewables Academy. “The

partnership supports our mission to promote new business opportunities in

growing green markets.”

IFC-GBAC (Green Banking Academy) is a knowledge initiative to

accelerate the green transformation of banking, strengthen its business

and contribute to a more sustainable world. The IFC-GBAC academic

platform will offer knowledge, sensitization and capacity building

programs customized to bank staff’s different profiles and roles. IFC

officially launched its IFC-GBAC at today’s FELABAN’s 52nd Annual

Assembly.

RENAC’s Green Banking Program, a scholarship program funded by the

German International Climate Initiative (IKI) with support from the German

Federal Ministry for the Environment, Nature Conservation and Nuclear

Safety (BMU), has been successfully implemented in South-East Asia since

2015. Its various training formats include online trainings and delegation

tours as well as the face-to-face trainings “Applying Green Energy

Finance”, “Green Energy Finance Specialist” and train-the-trainer

seminars.

“RENAC, with proven results in its Green Energy and Climate Finance

training program, fits very well into the value proposition of our newly

created IFC-GBAC (Green Banking Academy),” says Peer Stein, global

head of climate finance at IFC Financial Institutions Group. The

cooperation with IFC-GBAC and its partners, including FELABAN, now

fosters the implementation of RENAC’s Green Banking Program in Latin

America.

With this cooperation agreement, RENAC and IFC are taking further steps

towards their goal of increasing the availability and use of financing

instruments for renewable energy (RE) and energy efficiency (EE) projects

by increasing the willingness of financial institutions to participate in RE

and EE financing, and ultimately, of contributing to climate change

mitigation.

The eligible countries under RENAC’s scholarship Green Banking Program

are: Peru, Colombia, Panama, Costa Rica, Nicaragua, Honduras, El

Salvador and Guatemala.

<< Back to news headlines >>

Oil seeks floor, stocks tumble, sterling braces for wild swings Wednesday 14th November, 2018 – Reuters

Oil struggled to find a floor and stocks tumbled on Wednesday as

disappointing German GDP figures heightened worries over slowing

global growth, while the pound eased off peaks as Prime Minister Theresa

May faced the hard task of selling her Brexit deal.

European shares fell as much as 1.2 percent after data showed the

German economy contracted for the first time since 2015, tracking similar

losses in Asia where data in Japan and China underscored worries about

weaker growth.

The weak open in Europe sent the MSCI’s world equity index

<.MIWD00000PUS > down 0.3 percent by 0930 GMT.

Sterling steadied just below a 7-month high versus the euro EURGBP=D3

and remained close to $1.30 GBP= after Britain and the European Union

agreed on the text of a Brexit divorce deal.

May will try to persuade senior ministers on Wednesday to accept the

draft agreement that opponents said would imperil her own government

and threaten the unity of the United Kingdom.

“After 873 days of bickering, point scoring, intransigence on both sides,

and seemingly irreconcilable differences, we finally have a deal,” said

Deutsche Bank strategist Jim Reid.

“Now this easy part is out of the way along comes the hard part of selling

it to a divided Parliament full of vested interests and factions,” he added

in a note.

The British cabinet will meet at 1400 GMT. The deal must go through

parliament for approval before the country exits the bloc on March 29,

2019.

Sterling/dollar GBPONO= implied overnight volatility jumped to 23

percent, its highest since a general election in June 2017, signaling that

investors were anticipating wild swings ahead for the British currency.

“Sterling volatility is expected to rise as the near term upside and

downside risks crystallize,” said Neil Wilson, analysts at Markets.com. “The

cabinet will likely pass it but with assault from all sides of the house and

Brexit divide, it seems impossible parliament will vote it through.”

LONGEST LOSING STREAK

Meanwhile, oil attempted to rebound after plunging around 7 percent

the previous session, with surging supply and the specter of faltering

demand scaring off investors.

U.S. West Texas Intermediate (WTI) crude futures CLc1 fell in early deals but

were up 1 percent at $56.29 a barrel. In the previous session it suffered 12

straight sessions of losses.

“We went through our archives yesterday and found a bit more daily

data back to 1977, and we still can’t find a losing run of this magnitude,”

said Deutsche Bank’s Reid.

Brent crude oil futures LCOc1 also bounced 1.8 percent at $66.57 per

barrel. In the previous session they hit an eight month low following a 25

percent slide from the four-year high reached early in October.

The Dow .DJI and S&P 500 .SPX ended slightly lower on Tuesday as lower

oil prices took a toll on energy shares, offsetting a small gain in technology

stocks and renewed hopes for progress in U.S.-China trade talks. [.N]

Energy stocks .SXEP were among the biggest faller in Europe on

Wednesday, down as much as 1.8 percent.

The Organization of the Petroleum Exporting Countries (OPEC) warned on

Tuesday that a supply glut could emerge in 2019 as the world economy

slows and rivals increase production more quickly than expected.

The oil plunge underlined cracks in the global economy.

The German economy shrank 0.2 percent in the third quarter as global

trade disputes and problems in the auto industry threw the traditional

export growth engine into reverse. Earlier in the day, data from Japan

confirmed the world’s third-largest economy contracted in the third

quarter.

ITALIAN BUDGET WOES

Still in currency markets, the euro hovered below $1.13 as Italy re-

submitted its draft budget for next year to the European Commission with

the same growth and deficit assumptions that had been rejected by

Brussels.

“While boosting its privatization plan and committing to mitigate spending

overshoots, the Italian government did not change its deficit targets. This

will likely lead the European Commission to recommend an infringement

procedure,” said Morgan Stanley analysts.

Concerns over the Italian budget also spread to debt markets with yields

on Italian government bonds hitting three-week highs, widening the gap

over top-rated German peers, while shares in Italian banks .FTIT8300 fell 1.7

percent.

In commodities, copper prices fell as weak retail sales data in China

fueled concerns over cooling growth in the world’s top copper consumer.

<< Back to news headlines >>

Oil rises as OPEC, partners discuss supply cut Wednesday 14th November, 2018 – Reuters

Oil rose on Wednesday, recouping some of the previous session’s slide, on

the growing prospect of OPEC and allied producers cutting output at a

meeting next month to prop up the market.

Prices rallied toward $67 earlier in the session after Reuters reported OPEC

and its partners are discussing a proposal to cut output by up to 1.4 million

barrels per day (bpd), a larger figure than officials have mentioned

previously.

International benchmark Brent crude LCOc1 was up 36 cents a barrel to

$65.83 as of 1118 GMT, having fallen as low as $65.02. U.S. crude CLc1 was

up 6 cents at $55.75.

Since mid-October, the price of Brent has fallen by 17.5 percent on

concern about excess supply and slowing demand, marking one of the

biggest declines since a price collapse in 2014.

“While the focus was on the Iran embargo and Venezuela’s output

struggles over the past months, i.e. the risks of too little supply, the market

increasingly looks concerned about the prospects of too much supply,”

Swiss bank Julius Baer said.

In its monthly report the Paris-based International Energy Agency (IEA) said

the implied stock build for the first half of 2019 is 2 million bpd.

The IEA left its forecast for global demand growth for 2018 and 2019

unchanged from last month at 1.3 million barrels per day (bpd) and 1.4

million bpd, respectively, but cut its forecast for non-OECD demand

growth, the engine of expansion in world oil consumption.

Oil markets are being pressured from two sides: a surge in supply from

OPEC, Russia and other producers, and increasing concerns about a

global economic slowdown.

U.S. crude oil output from its seven major shale basins is expected to hit a

record 7.94 million barrels per day (bpd) in December, the U.S.

Department of Energy’s Energy Information Administration (EIA) said on

Tuesday.

That surge in onshore output has helped overall U.S. crude production C-

OUT-T-EIA hit a record 11.6 million bpd, making the United States the

world’s biggest oil producer ahead of Russia and Saudi Arabia.

Most analysts expect U.S. output to climb above 12 million bpd in the first

half of 2019.

The rise in U.S. production is contributing to higher stockpiles.

Official storage data is due on Wednesday from the Energy Information

Administration, with analysts expecting a 3 million barrel rise in crude

inventories.

<< Back to news headlines >>

Weaker retail sales loom over China's economy despite some bright spots Wednesday 14th November, 2018 – Reuters

China delivered a mixed economic report card for October on

Wednesday as softening retail sales pointed to a consumption slowdown,

even as a pick-up in industrial output and investment suggested support

measures may be starting to take hold.

Taken together with weak credit data the previous day, the latest

readings reinforced consensus views that the world’s second-largest

economy will continue to cool in the next few quarters.

Facing the weakest economic growth since the global financial crisis,

Chinese policymakers are fast-tracking big road and rail projects, pushing

banks to increase lending, and cutting taxes to ease strains on businesses.

And more action is likely on the way.

“Policy measures, including funding support for private firms, need some

time to show results. GDP growth in the fourth quarter could dip below 6.5

percent,” said Wang Jun, Beijing-based chief economist at Zhongyuan

Bank.

Manufacturing has been supported by resilient exports as firms rush to ship

goods to the United States ahead of higher tariff rates, amid persistent

trade tensions between the world’s largest economies.

Investors are hoping for some progress that front when U.S. President

Donald Trump and his Chinese counterpart Xi Jinping meet later this

month.

But the bigger worry for China lies at home, with domestic consumption

starting to slow amid mounting household debt, while the real estate

sector - a major driver - continues to cool.

Retail sales rose 8.6 percent in October from a year earlier, the National

Bureau of Statistics (NBS) said, the slowest since May. Analysts had

expected only a marginal dip from 9.2 percent in September.

A slump in auto sales has put the world’s biggest car market on the verge

of its first annual contraction since at least 1990, while garment sales are

growing at the weakest pace in over two years, pointing to faltering

consumer confidence.

“There are myriad reasons for this step-down in consumer spending: the

increase in mortgage debt is eating into disposable income, investment

returns are falling, and the closure of many online lenders is cutting off a

key source of consumer finance,” Everbright Sun Hung Kai said in a note.

Beijing is hoping to offset the drag by cutting import tariffs and income tax

- it is even reportedly considering making mortgage payments tax-exempt

- but those policies may not have much impact, Everbright said.

E-commerce giant Alibaba Group Holding Ltd (BABA.N) reported a

record 213.5 billion yuan ($30.70 billion) in sales on Sunday from China’s

Singles’ Day - an annual 24-hour buying frenzy. But the pace of growth

dropped to its slowest rate in the event’s 10-year history.

Slower retail sales were due to seasonal factors, Liu Aihua, a

spokeswoman at the statistics bureau, told reporters.

However, analysts noted sales growth has been on a downward

trajectory since March.

“Almost all categories in retail sales disappointed in October. We think the

government’s fiscal stimulus came in too late, and people now tend to

save more and spend less,” Iris Pang, Greater China economist at ING

bank in Hong Kong.

“We expect the effect of the personal income tax cut will start to be felt in

November, when retail sales may gain some traction.”

China in October raised the threshold for collecting individual income tax

to 5,000 yuan per month from 3,500 yuan in the hopes of boosting

consumption.

FACTORY GROWTH - FOR NOW

One of the few positive surprises was industrial output, which rose 5.9

percent. It had been expected to ease slightly from September’s 5.8

percent.

But analysts warned the rebound may be short-lived, saying exports could

fall sharply if the U.S. proceeds with a sharp hike in duties on Chinese

goods from January. Surveys show factory export orders have been

shrinking for months.

China watchers were also heartened by signs of improvement in overall

investment growth, which hit a record low earlier this year as regulators

reined in local government spending.

Fixed-asset investment growth quickened more than expected to 5.7

percent in January-October. Analysts had expected only a slight tick up

to 5.5 percent.

Infrastructure spending, a major growth lever that Chinese policymakers

have pulled in past slowdowns, also showed some signs of life. It picked

up to 3.7 percent in the first 10 months of the year from 3.3 percent

previously, suggesting the government’s growth steps are starting to have

an effect.

The state planner gave the greenlight to 45 projects worth 437.4 billion

yuan ($63 billion) last quarter. In response, cement production jumped

13.1 percent in October.

Private sector fixed-asset investment also edged up, to 8.8 percent. It

accounts for about 60 percent of overall investment in China.

China has pledged to ramp up infrastructure investment further to spur

demand. But even if projects get funding swiftly, economists note it will

take some time before the new spending works its way through the

economy and growth starts to stabilize.

COOLING REAL ESTATE

Possibly adding to consumer jitters, even China’s vaunted property market

is showing signs of fatigue, with growth in real estate investment cooling to

a 10-month low and home sales falling again last month.

Property investment, which mainly focuses on residential but also includes

commercial and office space, grew 7.7 percent in October on-year,

slowing from 8.9 percent in September, Reuters calculations showed.

Property sales by floor area fell 3.1 percent, following a 3.6 percent

decline in September, official data showed.

<< Back to news headlines >>

German economy contracts on weak foreign trade, auto bottleneck Wednesday 14th November, 2018 – Reuters

Germany’s economy contracted for the first time since 2015 in the third

quarter as global trade disputes and problems in the auto industry put the

traditional growth engine of exports into reverse, raising concerns that a

long expansion is faltering.

Gross domestic product (GDP) in Europe’s biggest economy fell 0.2

percent quarter-on-quarter, the Federal Statistics Office said on

Wednesday. That compared with a Reuters forecast of a 0.1 percent

drop.

But the Economy Ministry said the upswing would resume in the fourth

quarter, adding that the slowdown between July and September had

been a temporary phenomenon as car companies struggled to adjust to

new pollution standards known as WLTP.

“A 0.2 percent contraction isn’t a catastrophe,” Economy Minister Peter

Altmaier said in Berlin.

Compared with the same quarter of the previous year, the economy

grew 1.1 percent in the third quarter, calendar-adjusted data showed.

Analysts polled by Reuters had expected 1.3 percent.

“The slight decline in GDP compared to the previous quarter was mainly

due to foreign trade developments: provisional calculations show there

were fewer exports but more imports in the third quarter than in the

second,” the Office said.

Separately, Germany’s BDI industry association cut its 2018 export growth

forecast to 3 percent from 3.5 percent on Wednesday, the second cut in

as many months.

The third-quarter dip in GDP was the first time the economy has

contracted since the first quarter of 2015.

The government had flagged a weaker third quarter last month, citing

bottlenecks in the car sector stemming from the introduction of WLTP as a

factor.

“Germany doesn’t have an economic problem but rather an auto sector

problem. Due to the sluggish certification of cars, car production had to

be noticeably reduced, with collateral damage for other sectors too,”

said Andreas Scheuerle at DekaBank.

The Economy Ministry said problems adapting to the WLTP had probably

shaved up to 0.4 percentage points off third quarter GDP.

“The upturn was merely disrupted during the third quarter,” the ministry

said in its monthly report, adding: “Once these special effects have

dissipated, the German economy’s upturn will continue.”

However, the ZEW research institute said on Tuesday that investors do not

expect the German economy to recover rapidly from the weak patch.

Concerns are growing in the German economy, which is in its ninth year

of expansion, about the impact of global trade disputes and Britain’s

departure from the European Union.

In addition to anxiety about the impact of U.S. President Donald Trump’s

abrasive trade policy, German firms are concerned about instability at

home where Chancellor Angela Merkel’s awkward ‘grand coalition’ has

come close to collapsing twice.

Carsten Brzeski, an economist at ING, said that even though he expected

the auto sector to rebound in the fourth quarter, the GDP figures period

were a “wake-up call that political stability and strong growth are by no

means a given”.

“The poor export performance, despite a weak euro exchange rate,

suggests that trade tensions and weaknesses in emerging markets could

continue to weigh on Germany’s growth performance,” he said in a

research note.

Last month, Germany’s DIHK Chambers of Industry and Commerce cut its

2018 growth forecast to 1.8 percent from 2.2 percent and predicted a

slowdown to 1.7 percent next year as the economy faces growing risks at

home and abroad.

<< Back to news headlines >>

Italian bond yields jump as Rome sticks to deficit target Wednesday 14th November, 2018 – Reuters

Italian bond yields hit three-week highs on Wednesday, widening the gap

over top-rated German peers, after Italy re-submitted its 2019 budget to

the European Commission with unchanged growth and budget deficit

assumptions but falling debt targets.

Yields on higher-rated bonds in the euro zone fell on renewed volatility in

Italy, a slide in oil prices and news that Germany’s economy contracted

for the first time since 2015 in the third quarter.

But it was the details of Italy’s new draft budget that gripped bond

investors.

The falling debt forecast in the revised budget, which Italy wants to

achieve by using funds from privatisation equal to 1 percent of gross

domestic product, is to address one of the Commission’s main concerns

about the previous draft - that public debt would not fall as required by

EU rules.

But the budget still plans to increase the structural deficit, which excludes

one-offs and cyclical swings, by 0.8 percent of GDP next year, rather than

cut it by 0.6 percent of GDP as required under EU rules.

This, along with what the Commission sees as unrealistically high

assumptions on growth, still puts Rome on a collision course with the

Commission, which is to give an opinion on the revised draft on Nov. 21.

Consequently, Italian bond yields rose as much as 9 basis points on the

day across maturities, marking Italy out once again as the weak spot in

European fixed-income markets.

Italy’s 10-year bond yield rose to a three-week high at around 3.55

percent, pushing the gap over benchmark 10-year German Bund yields to

315 bps from around 303 bps late on Tuesday.

Italy’s five-year credit default swaps jumped 7 basis points from Tuesday’s

close to a near four-week high of 279 bps, according to data from IHS

Markit.

And Italian stocks underperformed their peers, last down 1.25 percent.

“I’m not surprised the market is trading this way and we need to see more

signs of a compromise on the budget before we get relief for Italian

markets,” said Commerzbank rates strategist Rainer Guntermann.

With the exception of Italy, most 10-year bond yields in the euro area

were 1 to 2 bps lower on the day.

Data showing GDP in Germany shrank by 0.2 percent quarter-on-quarter

in the third quarter boosted a perception that interest rates in the bloc will

remain low for some time.

Tuesday’s 7 percent slide in oil prices added to a perception of subdued

inflation in the currency bloc.

At the same time, the fall in bond yields was limited by new supply from

Germany.

In addition, a draft Brexit deal between the UK and European Union

reduced demand for safe-haven assets.

Germany’s 10-year Bund yield was down 2 bps at 0.39 percent .

<< Back to news headlines >>

Growth angst and oil slide take European shares to two-week low Wednesday 14th November, 2018 – Reuters

European shares hit their lowest in two weeks on Wednesday as data

showing the German and Japanese economies contracting in the third

quarter fueled worries about global growth amid a plunge in oil prices.

The pan-European STOXX 600 lost 0.5 percent by 0900 GMT as

commodities sectors weighed and Italian stocks sold off.

The STOXX and leading euro zone stock indexes .STOX50E hit their lowest

since Oct 31 in early deals, recovering some ground later.

Italy’s decision to stick to its growth and deficit plans in its re-submitted

draft budget set the stage for a showdown with the European Union over

breaking structural deficit limits.

It drove government bond yields up and sent Italy's FTSE MIB .FTMIB down

1.8 percent, set for its worst fall in a month, as bank stocks .FTIT8300 fell 1.5

percent.

The oil and gas sector .SXEP sank 2.3 percent, causing it to cede its

position as top-gaining sector year-to-date to healthcare.

Energy stocks have been one of the biggest contributors to the region’s

earnings growth this quarter, making the slide a significant concern for

investors.

Crude prices were struggling to find a footing after a 7 percent plunge the

previous day on surging supply.

In London, the FTSE 100 .FTSE fell as Prime Minister Theresa May sought to

convince her government to accept a draft European Union divorce deal

that opponents say threatens the independence and unity of the United

Kingdom.

Mining stocks .SXPP fell 2.7 percent as copper prices slid after weak China

retail sales data reignited fears of a slowdown in the world’s biggest

metals consumer.

Dutch payments firm Adyen’s (ADYEN.AS) shares lost 9.5 percent as

traders said the stock had been left out of an MSCI index re-weighting,

and was also being dragged down by Wirecard (WDIG.DE) which fell

after results.

“Adyen didn’t get included into the MSCI re-weights, which a lot of

people were thinking they might, so there’s some technical selling driving

it,” said Mark Taylor, sales trader at the Mirabaud Securities Global

Thematic Group.

Wirecard shares fell after the firm hiked its profit target and reported a

jump in third-quarter net earnings. Traders said the market was honing in

on details in its free cash flow, and signs of slowing inorganic growth.

Iliad (ILD.PA) shares were among top gainers, up 7.1 percent after results

showed good performance in the company’s Italian unit, though overall it

lost subscribers.

Overall European earnings have been underwhelming this season,

revealing growing margin pressure and concerns about growth and a

slowdown in China.

“For 2019, we forecast low-single-digit and below-consensus EPS growth in

Europe,” wrote Barclays analysts.

They see earnings per share growing at 4 percent in the euro zone and 2

percent in the UK next year - significantly lower than the aggregate IBES

Refinitiv estimates for around 10 and 8 percent respectively.

Mediaset (MS.MI) shares fell 7.6 percent, the heaviest fallers on the Italian

index, after third-quarter earnings delivered a small beat, but Deutsche

Bank analysts said consensus estimates were more likely to fall than rise.

<< Back to news headlines >>

Sterling catches breath before UK cabinet meeting Wednesday 14th November, 2018 – Reuters

Sterling steadied after posting its biggest jump in two weeks on Tuesday as

investors await the outcome of a cabinet meeting where Prime Minister

Theresa May will try to convince her ministers to accept a draft European

Union divorce deal.

As the EU braces for the biggest divorce in its history, Brexiteers in May’s

Conservative Party have said they would vote the deal down, while the

Northern Irish party which props up her minority government questioned

whether she would be able to get parliamentary approval. The cabinet

will meet at 1400 GMT.

“The outcome of the cabinet meeting will be a barometer test on the

upcoming parliamentary vote the government will face to get the deal

through,” said Fritz Louw, a currency strategist at MUFG in London.

In early trades, the British currency was flat at $1.2967 after briefly jumping

more than 1 percent on Tuesday to $1.3047.

Brussels diplomatic sources had said they feared any delay in agreeing

the text would increase the chances of rejection by May’s ministers or the

British parliament.

Reflecting the growing nervousness among market participants over the

cabinet meeting, implied volatility on the pound, a gauge of expected

swings in the British currency, surged.

Sterling/dollar implied overnight volatility jumped to 23 percent on

Wednesday, its highest since Britain’s general election in June 2017. [GBP/]

Against the euro, the pound fared slightly better with the currency

strengthening 0.1 percent at 87.02 pence as concerns about the Italian

budget also weighed on the euro.

<< Back to news headlines >>

Fuel shortages the new normal in Venezuela as oil industry unravels Tuesday 13th November, 2018 – Reuters

With chronic shortages of basic goods afflicting her native Venezuela,

Veronica Perez used to drive from supermarket to supermarket in her gray

Chevrolet Aveo searching for food.

But the 54-year-old engineer has abandoned the practice because of

shortages of something that should be abundant in a country with the

world’s largest oil reserves: gasoline.

“I only do what is absolutely necessary, nothing else,” said Perez, who lives

in the industrial city of Valencia. She said she had stopped going to

Venezuela’s Caribbean coast, just 20 miles (32 km) away.

Snaking, hours-long lines and gas station closures have long afflicted

Venezuela’s border regions. Fuel smuggling to neighboring countries is

common, the result of generous subsidies from state-run oil company

PDVSA that allow Venezuelans to fill their tank 20,000 times for the price of

one kilo (2.2 pounds) of cheese.

But in late October and early November, cities in the populous central

region of the country like Valencia and the capital Caracas were hit by a

rare wave of shortages, due to plunging crude production and a

dramatic drop in refineries’ fuel output as the socialist-run economy suffers

its fifth year of recession.

Venezuela produced more than 2 million barrels per day (bpd) of crude

last year but by September output had fallen to just 1.4 million bpd. So far

in 2018, Venezuela produced an average of 1.53 million bpd, the lowest in

nearly seven decades, according to figures reported to OPEC.

Bottlenecks for transporting fuel from refineries, distribution centers and

ports to gas stations have also worsened, exacerbating the shortages.

PDVSA did not respond to a request for comment. Neither did

Venezuela’s oil and communications ministries.

Relatively normal supply has since been restored in Caracas and Valencia

after unusually long outages but the episode has forced Venezuelans to

alter their daily habits.

That could hit an economy seen shrinking by double digits in 2018. For

Venezuelans coping with a lack of food and medicine, blackouts and

hyperinflation, the gasoline shortages could also increase frustration with

already-unpopular President Nicolas Maduro.

“My new headache is fearing I might run out of gasoline,” said Elena

Bustamante, a 34-year-old English teacher in Valencia. “It has changed

my life enormously.”

PRODUCTION SHORTFALL

Venezuela’s economy has shrunk by more than half since Maduro took

office in 2013. The contraction has been driven by a collapse in the price

of crude and falling oil sales, which account for more than 90 percent of

Venezuelan exports.

Three million Venezuelans have emigrated - or around one-tenth of the

population - mostly in the past three years, according to the United

Nations.

Despite a sharp drop in domestic demand due to the recession,

Venezuela’s collapsing oil industry is struggling to produce enough

gasoline.

Fuel demand was expected to fall to 325,000 bpd in October, half the

volume of a decade ago, but PDVSA expected to be able to supply only

270,000 bpd, according to a company planning document seen by

Reuters.

A gasoline price hike - promised by Maduro in August under a reform

package - could further reduce demand but it has yet to take effect.

Venezuela’s declining oil production has its roots in years of

underinvestment. U.S. sanctions have complicated financing.

The refining sector, designed to produce 1.3 million bpd of fuel, is severely

hobbled. It is operating at just one-third of capacity, according to experts

and union sources.

Its largest refinery, Amuay, is delivering just 70,000 bpd of gasoline despite

having the capacity to produce 645,000 bpd of fuel, according to union

leader Ivan Freites and another person close to PDVSA who spoke on the

condition of anonymity.

PDVSA has tried to make up for this by boosting fuel imports, buying about

half of the gasoline the country needs, according to internal company

figures.

In the first eight months of 2018, Venezuela imported an average of

125,000 bpd from the United States, up 76 percent from the same period a

year earlier, data from the U.S. Energy Information Administration show.

But delays in unloading fuel cargoes have contributed to shortages, since

Venezuelan oil ports are more oriented toward exports than imports,

according to traders, shippers, PDVSA sources and Refinitiv Eikon data.

One tanker bringing imported gasoline mixed with ethanol was

contaminated with high levels of water, forcing PDVSA to withdraw the

product from distribution centers, a company source said, directly

contributing to the shortages in Caracas.

The incident was the result of PDVSA seeking fuel from “unreliable

suppliers,” in part because the U.S. sanctions have left many companies

unwilling to do business with Venezuela, said the source, who spoke on

the condition of anonymity.

The shortages last week prevented Andres Merida, a 29-year-old

freelance publicist in Valencia, from attending client meetings.

“I had someone who used to take me from place to place but in light of

the gasoline issue he would not give me a lift even when I offered to pay

him,” he said. “He said he would prefer to save the gasoline and

guarantee it for himself.”

<< Back to news headlines >>

CDF members may receive less help Tuesday 13th November, 2018 – Barbados Today

Countries in this region that benefit from the Caribbean Development

Fund (CDF), are at risk of getting less assistance for critical projects in the

future because the more “developed” countries are not meeting their

pledged contributions.

As a result. the CDF, the organization established to provide financial and

technical assistance to disadvantaged countries in the Caribbean

Community (CARICOM), may have to scale back on projects expected

to come on stream in under two years as the region’s more developed

countries are slow to pay up for the second funding cycle.

Chairman of the CDF Board of Directors Dr Sherwyn Williams told reporters

that the fund could be forced to scale back on the number of projects it

would assist needy countries with if owing member states did not meet

their financial obligations to the CDF for the second funding cycle.

Last year Barbados TODAY revealed that Barbados was the second most

indebted country to the fund, owing its pledged US$7.4 million as at

December 31, 2016. At that time, the fund was owed a total of US$57.2

million, with US$40 million of that outstanding from Trinidad and Tobago.

During 2017 the CDF received contributions from two member states, St

Kitts and Nevis and Belize, completing their second cycle commitment,

while the outstanding balance was received from Jamaica.

Today Williams made an appeal for owing countries to pay up, insisting

that not doing so could affect future projects of those who really need it.

“We have enough resources to continue the programmes that we have

already agreed to. However, if we do not get all of the subscriptions that

were due in the second cycle, there is a possibility that we may need to

scale down operations, not projects that are discussed, but scale down

new projects that will be anticipated for 2020. We are hoping that this will

not be the case,” he said.

As at December 31, 2017, total fund balance was US$122.42 million or two

per cent above that reported for 2016. This increase reflected payments

from the three member states which brought the net contribution to

US$109.42 million at the end of 2017.

Following last year’s hurricanes, which left a trail of destruction in a

number of Caribbean territories, officials had expressed concern at the

annual meeting at the end of September that the fund could approach a

“critical” stage since member countries were expected to request more

assistance.

For 2017 the less developed countries (LDCs) of St Lucia, Belize, Antigua

and Barbuda, St Kitts and Nevis, Guyana, Dominica, and Grenada

benefited from the fund as 17 disbursements of loans and grants totaling

US$4.27 million and US$5.01 million, respectively, were made during the

reporting period.

That total disbursement of US$9.28 million in 2017 was 28 per cent higher

than the previous year. In line with this performance, the loan portfolio

recorded another year of growth at eight per cent from US$23.6 million in

2016 to US$25.71 million last year.

The fund has undisbursed balance of US$7.3 million in its coffers as at

December 31, 2017.

Chief Executive Officer of the CDF Rodinald Soomer said the response

from member states in relation to their payments was not what the fund

expected, indicating that they were still too slow in meeting their

obligations.

Without naming them, he said there were currently four member states

that still owed the fund for cycle two.

However, Soomer said the CDF was aware of the financial restraints

facing the regional economies and was therefore taking a different

approach with those countries by engaging them “in one-on-one”

dialogue.

“We recognize that they have their fiscal challenges and the approach

they seem to be buying into is that if we can move quickly to design

programmes that they can benefit from then we have their subscriptions

coming in, do our appraisal and board consideration and turn back the

resources as quickly as possible so that there is no significant loss of

revenue for the country,” he explained.

He said the CDF had no issue with the quality of the programmes for

which the countries were seeking technical assistance, grants and loans.

Pointing out that the CDF was perhaps not the only regional institution

having challenges in getting member countries to pay their dues, Soomer

disclosed that the CARICOM Secretariat was working on a system to

ensure for automaticity of financing for regional institutions. This would

ensuring there is less more consistency by contributing governments.

“This is work that CARICOM should really accelerate and focus on so that

all the regional institutions that have their mandates to execute can be

properly resourced and do the work that they are required to do for the

community,” said Soomer.

The officials, who were speaking to members of the media on Tuesday on

the sidelines of the CDF’s seventh annual meeting of contributors and

development partners at the Hilton Barbados Resort, did not issue a

timeline for countries to make good on their outstanding contributions.

<< Back to news headlines >>

DBJ Bats For Small Investors In Wigton Divestment Wednesday 14th November, 2018 – Jamaica Gleaner

Managing Director of the Development Bank of Jamaica (DBJ) Milverton

Reynolds has given the assurance that small investors will not be crowded

out when the divestment process for the Wigton Wind Farm in Rose Hill,

Manchester, is completed.

Plans are well advanced for Wigton Wind Farm to be listed on the

Jamaica Stock Exchange by the start of the next financial year and the

DBJ is putting in place measures to ensure that potential small share

holders get their fair of the investment pie.

"Part of the mandate is ... to broaden the ownership base in the country.

The Wigton divestment is one very important project in that regard and

we are going to be encouraging ordinary Jamaicans to buy shares in this

entity. It's an excellent investment and the important thing about Wigton is

that it is signaling that this is the route that the Government wants to take

with those assets that they are divesting, that can be listed on the stock

exchange," said Reynolds.

EXPECTING OVER SUBSCRIPTION

He continued: "So because we strongly believe that it's gonna be

oversubscribed we are gonna do it in such a way that the smaller

investors will get a hundred per cent. So if you bid for a hundred shares,

you not gonna get 90 per cent, you're gonna get 100 shares. The larger

investors will only be able to a get a portion of what they bid for."

Reynolds' comments came during the renewable energy forum hosted by

JN Fund Managers Limited and MPC Capital, a German asset and

investment manager with an extensive global portfolio, at the Spanish

Court Hotel in New Kingston.

The company has invested in Paradise Park, a solar facility which is under

construction in Westmoreland. The principals behind the plant are French

company Neoen, an independent producer of renewable energy;

Rekamniar Frontier Ventures, an emerging market-energy developer

founded by Jamaican Angella Rainford and MPC Capital, with

headquarters in Germany.

Wigton Wind farm Limited a wholly owned subsidiary of the Petroleum

Corporation of Jamaica has a capacity of 62.7 megawatts.

<< Back to news headlines >>

German Energy Firm To Launch IPO In Jamaica Monday 5th November, 2018 – Caribbean News Now

A foreign investor in Jamaica's largest solar farm under construction in

Westmoreland will be floating shares on the Jamaica Stock Exchange, via

an initial public offering likely by month-end, as part of a regional plan to

raise US$200 million in capital.

But the German operators of the firm targeted for listing, MPC Caribbean

Clean Energy Limited are not saying how much they plan to raise on the

Jamaican exchange, citing regulatory strictures, until the prospectus is

approved. They are also targeting bank loans, other financiers, and

another regional stock exchange to raise the full amount.

The energy outfit is a subsidiary of MPC Renewable Energies GmbH, which

has taken a one-third stake in the Paradise Park photovoltaic or solar

project being developed by Eight Rivers Energy Company. The 51 MW

project headed by Angela Rainford is costing US$64 million to develop,

and MPC holds a 34 per cent of the Paradise Park solar project, said co-

managing director of MPC Renewable Energies Martin Vogt.

"Overall, we're looking to raise US$200 million - a significant portion of

which will come from development financing institutions rather than local

investors in the region - and we're hoping to deploy that within three

years, and we are certainly looking at Jamaica as one of our core

markets," Vogt said in an interview with The Gleaner on Monday. The

companies are owned by private equity firm MPC Capital.

Vogt said MPC Capital has been active in emerging markets, arranging

financing for clean energy projects, its latest being a wind farm in

Mongolia. Regionally MPC is involved in a wind turbine wind farm in Costa

Rica and, in partnership with ANSA McAl, a photovoltaic plant in Trinidad

and Tobago.

Fresh off a round of meetings in Trinidad, Vogt republic Martin confirmed

that regulators had given the nod for MPC to approach the T&T Stock

Exchange. In Jamaica, The Gleaner understands that JN Fund Managers

will act as lead arranger for the IPO, according to sources. MPC and JN

on Tuesday hosted a half-day forum on renewable energy, giving fillip to

the information.

Vogt says MPC sees in the Caribbean and Latin American a region

brimming with opportunities. He says MPC has been steadily building out

its investment ecosystem for two years, and is working with a 10-year

timeline to invest in 34 regional countries.

"We started with the investment platform in 2016 and since that time,

we've been in business development mode for the region. We established

a local presence with an office in Panama and another in Colombia. We

have recruited the staff to deploy more capital in the region, and we

have a project pipeline," Vogt said.

"Last year, we developed a special purpose vehicle through which we're

channelling our capital - MPC Clean Caribbean Energy. Our investment

platform is looking for more financing options and we want to get more

investors on board," he added.

MPC co-managing director David Delaire says the Paradise Park solar

farm is on track for completion in the first half of 2019.

Eight Rivers previously disclosed backing from France's Proparco

development bank and Dutch development bank FMO. The project

partners in Eight Rivers include Rekamniar Frontier Ventures of the United

Kingdom, Neoen of France, and MPC Capital of Germany. Angela

Rainford, a Jamaican, heads Rekamniar as its managing director.

The solar farm will deliver electricity supplies to Jamaica Public Service

Company Limited at US 8.5 cents per kWh or US$85/MWh, the "cheapest"

power sold to the grid in Jamaica, Delaire said. The company has a 20-

year power purchase agreement with JPS, which is the standard contract

duration for independent power providers selling electricity to the grid.

Vogt says Paradise Park is a long-term investment for MPC.

"Our investment vehicles typically have a holding period of 10-12 years

and the project has a lifetime of 20-25 years so we are in it for the long

haul," he said.

He said Paradise Park is typical of the rest of MPC's portfolio, with a

payback period of 7-8 years, while the internal rate of return for the

Jamaican solar project is an estimated 12-14 per cent.

MPC Clean Energy is looking to make other, more direct, investments in

Jamaica, and intends to take part in request for proposals for 150MW of

renewable energy projects.

"We believe that with our local knowledge, market understanding,

technical qualification as well as financial power that we are in a very

competitive spot to produce another project like Paradise Park. We are

therefore looking for another 50 MW project for Jamaica and we're

already in discussions with locals who want to partner with us based on

our reputation working at Paradise Park," Vogt said.

MPC estimates that the Jamaican market can accommodate another

100 MW of photovoltaic power generation. Vogt also notes that since the

launch of the Paradise Park project, the cost of PV panels has fallen by 25-

30 per cent.

"With that we should be able to build a similar facility at 10-15 per cent

cheaper," he said.

<< Back to news headlines >>

$1-billion disaster-mitigation programme Wednesday 14th November, 2018 – Jamaica Observer

GOVERNMENT will be spending almost $1 billion in the final round of a

national disaster -mitigation works programme, which will lead into to the

Christmas season, Prime Minister Andrew Holness informed the House of

Representatives yesterday.

The prime minister told the House that the works have been programmed

into Government's overall mitigation plan, which is being rolled out in

three tranches. He said that the first two phases of mitigation and the

three phases of road patching have been completed this year, costing

more than $800 million.

However, he cautioned that while the programme coincides with

Christmas, it was not “bolo work”. He noted that strict observance to

Government's procurement rules and guidelines must be observed in

undertaking this programme, and that individuals will be held

accountable.

“It so happens to coincide with Christmas, but it is not the give away work;

it's not bolo work; is not work that you just expect to get a money and

come out and do nothing; you must do some work in this programme. The

work will be measured and there must be an account of the funds spent,”

he added.

“In fact, Mr Speaker, as we did last year, the Integrity Commission has

been written to and has been invited to provide the requisite oversight to

the implementation of the programme. I expect that the commission will

be on board in this regard. This Government puts measures in place to

ensure that there is value for funds expended and that quality outcomes

are obtained,” Holness commented.

He said that the work programmes created by all parliamentary

representatives should be fairly detailed, noting that consultations with the

MPs are expected to start this week. MPs, said Holness, should immediately

start creating fairly detailed programmes, including the number of people

to be hired and with photographs showing the situation prior to the work

taking place.

He said that work should commence next Monday, November 19, and

should be completed by December 7. Measurement and certification of

completed works should end by December 11, and payments will be

made on December 13 and 14.

He said that the Government, under this phase of the programme, will be

spending $997 million over the next several weeks. The programme will

take on a national focus and will be driven by the members of parliament.

Each constituency will be allocated $12 million to target critical drains,

road patching, and to undertake sanitation work.

He said that Government has proposed that the allocation to each

constituency be broken down as follows: $6 million for bushing and drain

cleaning, $5 million for patching of potholes, and $1 million for the general

clean-up of urban towns and rural townships

He noted that the $1-million allocation for general clean-up in each

constituency is being provided by the Tourism Enhancement Fund (TEF),

while the Government will finance the remainder.

“Additionally, the NSWMA (National Solid Waste Management Agency) is

being allocated $100 million to target the removal of bulky waste in

townships across the country. These funds are also to be used to assist in

implementing a beautification project in these areas,” Holness explained.

He said that the new round of works is crucial given the levels of rainfall

that all parishes have experienced, with some areas being significantly

affected by flooding.

“We had the unfortunate situation in Clarendon, for example, where a

young boy lost his life due to flooding in the town of May Pen. We intend

to use this round of our mitigation programme to target some of these

areas that we, as representatives of the people, know are problematic,”

he said.

“I wish to emphasise that while members of parliament will be allowed

some flexibility in determining reallocation of funds for drain cleaning and

bushing ($6 million in their constituencies based on their specific

circumstances), funds allotted for patching ($5 million) cannot be

reallocated and must be used only for that purpose,” he said.

He said that the programme will be implemented by the National Works

Agency and the NSWMA, and will be jointly undertaken by the two

agencies as their work complements each other.

“We know that there is a serious cultural problem as to how we dispose of

our garbage. We see it almost every day, where persons throw garbage

through car windows, into gullies and [on] the side of streets. Our drainage

system is then compromised, leading to flooding in many of these areas.

Our plan is to arrest this situation and through this programme, a start will

be made,” the prime minister added.

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Tourism works to attract 1.2M+ cruise passengers Monday 12th November, 2018 – Dominican Today

The Tourism Ministry continues its efforts to attract more cruise passengers

to the Dominican Republic as their favorite destination and thus exceed

the 1.2 million which visited the country last year.

To achieve it, a large Dominican delegation attended the 25th annual

Florida and Caribbean Cruise Conference Association (FCCA), held in

Puerto Rico and in “CruiseWorld 2018” in Fort Lauderdale.

In a statement Tourism said the FCCA meeting was attended by

organization president Michele Paige; Puerto Rico governor Ricardo

Rosello; Puerto Rico Tourism Corporation (CTPR) director Carla Campos

Vidal; Tourism Cruise director Orfila Salazar, as well as Deputy minister Julio

Almonte.

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