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REGIONAL

Trinidad and Tobago

PM in emergency talks with Caricom

CARICOM leaders were catapulted yesterday into a crisis conference as

the turmoil in Venezuela took centre stage.

SWRHA: All A&E depts overcrowded

THE South West Regional Health Authority (SWRHA) has admitted

overcrowding is the main challenge at its five emergency departments.

Project Reason abandoned

PROJECT Reason, an anti-crime initiative which was determined to have

significantly impacted upon crime levels in Laventille and East Port of

Spain was abandoned due to funding and management issues.

La Brea gets some Cassia C work

THE Trinidad Offshore Fabrication Company (TOFCO) fabrication yard in

La Brea has been awarded some of the work to manufacture bpTT's

Cassia C compression platform.

Scotia falls by $0.31

OVERALL market activity resulted from trading in 15 securities of which

three advanced, seven declined and five traded firm.

Barbados

Axe to fall again at Nation

Staff of the Nation Publishing Company are bracing for more job cuts.

RER review needed

One local economist is calling for an immediate review of the Renewable

Energy Rider (RER) programme, which allows producers of electricity from

renewable energy source to sell power to the Barbados Light & Power

Company (BL&P).

Jamaica

H10, Princess to Invest US$750m In Hotel Sector

Spanish hotel chain Princess Resorts has committed to investing US$500

million in the construction of 2,000 rooms, while H10 Hotels has

recommitted to spending US$250 million to add 1,000 rooms on the island.

BPO Workers to Get US$15m Training Boost

The Government has signed a US$15-million loan with the Inter-American

Development Bank in a drive to further expand the country’s business

process outsourcing sector.

iCreate seeks $70 million via IPO

CREATIVE training institute, iCreate Limited, is seeking to raise capital of

roughly $70 million through the sale of 74 million shares in an initial public

offering (IPO) on the Junior Market.

Capital markets should be allowed to enhance growth and development

COUNTRIES with well-developed capital markets experience higher

economic growth than countries without, declared the CEO of NCB

Capital Markets, Steven Gooden, at the Jamaica Stock Exchange (JSE)

14th Regional Conference on Investments & Capital Markets held at the

Jamaica Pegasus hotel in Kingston

JSE launches Jamaica Social Stock Exchange

The Jamaica Stock Exchange (JSE), the world's number one performing

stock exchange, launched the Jamaica Social Stock Exchange (JSSE) as

a move to address social inequity at the Jamaica Pegasus hotel in New

Kingston on Tuesday night.

Guyana

TCL Guyana/CEMEX commissions concrete plant

AS Guyana’s construction industry continues to expand, one of the

country’s major suppliers of cement has upgraded its services to providing

concrete, utilising innovative technology.

Concerned Guyana government urges dialogue as Venezuela’s woes

worsen

Amidst deadly violent protests, political standoffs and de-recognition of

the current Nicolas Maduro-led Venezuela by the US, the Government of

Guyana is expressing concerns.

The Bahamas

Bahamas ‘Shooting in Dark’ Over WTO

The DNA’s deputy leader yesterday expressed fears that The Bahamas is

“walking in the dark” towards WTO membership without the government

“making the case” for joining.

St. Lucia

Construction begins in 2020 on $115-million Millennium Highway and West

Coast Roads Upgrading Project

Work is expected to begin in the second quarter of 2020 on the $115-

million Millennium Highway and West Coast Roads Upgrading Project and

government officials said it will bring economic activities and reduce

accidents when completed.

Venezuela

Venezuela Crisis: Familiar Geopolitical Sides Take Shape

Russia, China, Iran, Syria, and Cuba have come down on one side. The

United States, Canada, and countries in Western Europe are on the other.

British Virgin Islands

Trellis Bay businesses could see increased economic activity with airport

expansion

Chief Planner at the Town & Country Planning Department Greg Adams

has said the neighbouring business community in Trellis Bay will not be

required to relocate to facilitate the runway extension project at the TB

Lettsome International Airport. In contrast, those businesses could

experience spin-off benefits from the multimillion-dollar project, he said.

Dominica

Bureau of Standards developing strategic plan to improve standards

Minister for Trade, Energy and Employment Hon. Ian Douglas has said the

government is implementing a series of reforms for the Dominica Bureau

of Standards, after Tropical Storm Erika and Hurricane Maria to enhance

quality, efficiency and transparency in services delivered by public sector

institutions.

Other Regional

Full CARICOM statement on Venezuela’s political crisis

CARICOM has offered to “facilitate dialogue” among conflicting political

factions in Venezuela, while reiterating the region as a “Zone of Peace”

and emphasising its stance of non-interference and non-involvement in

the affairs of sovereign nations.

CDF signs US$1 million contribution agreement with India

The government of India and the CARICOM Development Fund (CDF)

signed a Contribution Agreement on Saturday, January 19, 2019, in

Paramaribo, Suriname, which provides for a grant allocation of US$1

million to the CDF’s capital fund.

INTERNATIONAL

United States

U.S. seeks to cut off money for Venezuela's Maduro, aid opposition

The United States is seeking to ensure that Venezuelan oil revenue goes to

opposition leader and self-declared interim president Juan Guaido, and

to cut off money from increasingly isolated President Nicolas Maduro, a

top U.S. official said on Thursday.

United Kingdom

UK mortgage lending slows in December

British banks approved fewer mortgages last month than in November

and the value of lending for home purchases rose by the smallest amount

since 2016, an industry survey showed on Friday.

Europe

German government slashes 2019 economic growth forecast to 1 percent

The German government has cut its economic growth forecast for 2019 to

1.0 percent from 1.8 percent, parliamentary and government sources said

on Friday.

Europe continued

As dismal data flows, ECB policymakers promise caution

European Central Bank policymakers promised on Friday to tread

carefully in removing stimulus any further, just as two fresh surveys pointed

to an even bigger-than-projected slowdown in the euro zone’s growth.

Japan

Japan's Asahi looks beyond Brexit Britain with Fuller's beer buy

Japanese brewer Asahi Group is buying the British beer business of Fuller,

Smith & Turner, seizing the opportunity to further its overseas reach as

other companies wrestle with growing uncertainty over Brexit.

Nikkei climbs to 5-week high, aided by chip-related firms, Apple suppliers

Japan’s Nikkei reached a five-week high on Friday as chip-related firms

tracked sharp rises by U.S. counterparts, while some investors awaited

major events next week for direction.

India

Indian ministers trumpet jobs growth after study showed 11 million jobs lost

Indian government ministers facing an election in coming months

launched a social media campaign on Thursday trumpeting successes in

creating jobs just weeks after a leading think tank reported 11 million jobs

were lost in the country last year.

U.S. voices concern as India's e-commerce restrictions hit Amazon,

Walmart

The United States government is concerned about India’s revised e-

commerce regulations and has told officials in New Delhi the policy will

hinder the Indian investment plans of Amazon.com and Walmart Inc,

three sources familiar with the talks told Reuters.

Smartphone makers seek export incentives to grow India production

Smartphone makers in India are calling for export credits on devices and

tariff cuts on machinery imports as part of measures they say will make

Asia’s third-biggest economy a global smartphone manufacturing hub.

Global

Global shipping rates slump in latest sign of economic slowdown

Freight rates for dry-bulk and container ships, carriers of most of the

world’s raw materials and finished goods, have plunged over the last six

months in the latest sign the global economy is slowing significantly.

Global stocks gain on earnings, euro rebounds after dovish ECB

Global stocks rose on Friday, as strong earnings helped to underpin

investor sentiment in the face of growing signs that the global economy is

slowing and a still unresolved trade dispute between the United States

and China.

Oil edges down as U.S. supplies, economic worries eclipse Venezuela

turmoil

Oil prices fell slightly on Friday as concerns about U.S.-China trade talks

and fresh data on surging U.S. fuel stocks sent a chill through markets.

TCL Guyana/CEMEX commissions concrete plant Friday 25th January 2019 – Guyana Chronicle

AS Guyana’s construction industry continues to expand, one of the

country’s major suppliers of cement has upgraded its services to providing

concrete, utilising innovative technology.

On Thursday afternoon, Mexico’s global firm CEMEX and its subsidiary,

Trinidad Cement Limited (TCL) Guyana Incorporated commissioned its

new concrete plant, which the company noted is a “major investment” in

response to the building needs of Guyana – described by officials of the

entity as one of its key markets within the region.

Roder Ramdwar, Business Manager of TCL Guyana Inc., told a gathering,

which included Minister of Finance, Winston Jordan and Mexican

Ambassador to Guyana, Ivan Medel at the brief ceremony at the

company’s base on Water Street, that the company is here to stay and

will offer the products on which it has built its reputation.

“As a company comprising Guyanese nationals and given our strong

commitment of enhancing contribution towards the growth of Guyana,

we felt strongly that the time is now for us to expand our offerings and

birth a concrete division,” he said.

Ramdwar said the plant is one which took significant investments, and

which provides a wide range of cutting-edge solutions. He said the plant is

ideally equipped with onsite laboratory facilities that are further backed

by state-of- the-art international research and development in

Switzerland. He said the plant will be manned by a vibrant, “research

driven” and well trained all–Guyanese team.

Ramdwar said the company is confident that with its new robust offerings

of cement and now concrete, the firm is “well –outfitted to embrace the

ongoing positive transformation of this gem that is Guyana.”

Minister of Finance, Winston Jordan commended the initiative. He said the

move bodes well for Guyana and he noted that government welcomes

all investments made here. He noted that cement remains an important

aspect of the infrastructure and he noted that cement is likely to play an

important role in Guyana’s evolving oil and gas industry. He said Guyana

remains open to business and he noted that the possibility of

manufacturing cement here should not be ruled out. Shyam Nokta,

President of the Guyana Manufacturing and Services Association

(GM&SA), said the effort by Cemex/TCL Guyana Inc. to expand its

operations here is one that demonstrates “confidence in Guyana and

what the future holds.”

He said the opportunities, which can emerge from the initiative, include

expansion of the country’s infrastructure. He said Guyana has embraced

a “green pathway” and that also realises looking at alternative type of

materials. He reminded that concrete is the foundation of what many

things are built on and will remain so in the future. He said it provides an

opportunity to provide international best practices in areas such as health,

safety and the environment, good governance and innovation and

technology transfer.

Nokta also urged the company to explore the idea of manufacturing

cement here in Guyana. Ambassador Ivan Medel deemed the move a

transformative one. He said it is the starting point of the transitioning

process and he noted that CEMEX, the parent company of TCL, is

confirming a long-term “bet” on the future of Guyana. He said Guyana

and Mexico have been enjoying economic relations in many areas,

including in the area of rice export. He described the move by

CEMEX/TCL as a good business case in Guyana’s development.

<< Back to news headlines >>

Concerned Guyana government urges dialogue as Venezuela’s woes

worsen Friday 25th January 2019 – Kaieteur News

Amidst deadly violent protests, political standoffs and de-recognition of

the current Nicolas Maduro-led Venezuela by the US, the Government of

Guyana is expressing concerns.

The situation in Venezuela has been making neighbouring countries

nervous, with thousands of citizens from there fleeing food and other

shortages of basic items.

According to a statement of the Government of Guyana yesterday, it is

gravely concerned at the deepening of the political crisis in the Bolivarian

Republic of Venezuela and supports calls made at both the regional and

international levels for immediate dialogue involving all political and

social actors, with a view to the preservation of the democratic process

and a return to normalcy.

“Guyana calls on all parties to desist from actions that might lead to

further violence and loss of lives. The Government of Guyana remains

firmly supportive of efforts to resolve the crisis through peaceful means

and with full respect for human rights and the rule of law.”

Venezuela is facing severe economic and humanitarian crisis. Its President

Nicolás Maduro is facing increasing pressure to step down, with the US this

week recognising opposition politician Juan Guaidó as Venezuela’s

interim president.

However, Venezuela has asked US embassy personnel to leave.

Four persons were reported dead in clashes in that neighbouring Spanish-

speaking country.

On Wednesday, Maduro gave the United States 72 hours to withdraw its

diplomats from Venezuela — an order that was swiftly rejected by

Secretary of State Mike Pompeo.

“United States does not recognize the Maduro regime as the government

of Venezuela,” he said, according to a Washington Port report.

The United States has an embassy in Caracas, though it has been without

a full-time ambassador since July 2010. The embassy has said that it would

remain open for U.S. citizens needing “emergency services”; there was

little sign of anything unusual happening at the embassy when a

Washington Post reporter visited the neighbourhood yesterday.

In recent times, Venezuela has been increasing its claims on a large piece

of mineral-rich Essequibo.

Venezuela is also claiming the off-shore area where Guyana has found oil.

Guyana has gone to the United Nations’ International Court of Justice to

have the century-old border controversy settled once and for all.

<< Back to news headlines >>

Bahamas ‘Shooting in Dark’ Over WTO Thursday 24th January 2019 – Tribune 242

The DNA’s deputy leader yesterday expressed fears that The Bahamas is

“walking in the dark” towards WTO membership without the government

“making the case” for joining.

Arinthia Komolafe, pictured, told Tribune Business that accession to full

World Trade Organisation (WTO) membership was “not a priority item” for

this nation given that it needs to put its own house in order first.

Speaking as the party unveiled its WTO “position paper”, Mrs Komolafe

said this nation needed prioritise tackling long-standing “structural and

systemic deficiencies” within its own economy before looking further

afield.

Pointing out that the benefits from WTO membership have yet to be

quantified for the Bahamian people, she expressed particular concern

over the Government’s failure to-date to disclose how it plans to replace

the revenues lost from tariff reductions/eliminations.

Mrs Komolafe argued that it was “not very prudent” of the Government to

suggest only $40m would be foregone in reducing the average tariff rate

from 32 percent to 15 percent, given that the exact amount would only

become clear after The Bahamas’ WTO accession terms were finally

agreed with those nations wishing to trade with it.

Suggesting that the Democratic National Alliance (DNA) was likely to

“hold fast” to its position no matter the outcome of negotiations, she said:

“There are so many local issues, structural and systemic deficiencies in the

Bahamian economy, that this is not the right policy for the Government to

be pursuing at this time.

“Our priority is to address the structural deficiencies in the economy.... Our

fears are if we walk into this [WTO membership] in the dark, which the

Government is doing, and we don’t give the Bahamian people an

opportunity to weigh in with the vulnerability study, the impact will be

unquantifiable. That’s the challenge.

“It’s a very tenuous situation. There’s so much that has to be done at the

local level before we go full speed into this organisation. There are so

many things to take into consideration. They’ve not put out a revenue

replacement policy as to how they’re going to replace the revenue,” Mrs

Komolafe told Tribune Business.

“It’s not very prudent for the Government to put that out there [$40m

revenue loss] without regard to the offer on the table being accepted.”

Zhivargo Laing, the Government’s chief WTO negotiator, cited this figure

as the estimated revenue loss from reducing/eliminating tariffs, which

rules-based regimes such as WTO view as barriers to trade.

That, though, is related to The Bahamas’ opening goods and services

offers, both of which have yet to be agreed with the WTO Working Party

that will negotiate this nation’s accession terms. Previously, government

officials referenced studies showing that the import tariff revenue loss

could be between $100m-$200m.

Mrs Komolafe yesterday expressed concern that the Government will turn

to regressive forms of taxation, such as Value-Added Tax (VAT), to help fill

the revenue gap left by tariff reductions and eliminations.

This, she added, would impose a disproportionate burden on lower

income Bahamians and the middle class, who would pay more of their

income in taxes, while threatening to further increase an unemployment

rate that rose to 10.7 percent in the November Labour Force Survey.

The DNA deputy leader also urged the Minnis administration to publish the

“vulnerability study” it has conducted in relation to WTO accession,

arguing that Bahamians needed to see something “absolutely

convincing” to persuade them of membership’s benefits.

“If we’re going to enter into trade agreements, we have to know what

the benefits are for The Bahamas and how it impacts GDP growth in a

positive way,” she told Tribune Business. “We don’t see it with WTO. Once

you’re in it, you’re in it, and the same rules apply to you.

“If we move forward like we are, the Government is going to be shooting

in the dark and doesn’t know how much revenue it’s going to lose. In this

environment, where revenues are persistently under-budget, we now

know we are going to be reducing tariffs. How are we going to replace

them?”

The DNA, in its WTO position paper, said there was “no urgency” to

accede to full membership given the organisation’s many outstanding

issues. These include the constant calls for reform by the Trump

administration, which produced a statement from the G-20 agreeing on

the need for change late last year.

The party added that the WTO’s dispute resolution mechanism, much-

touted by the Government as one of the benefits of joining, was in

disarray and “unable to function to its full capacity” because the US has

blocked the reappointment of four of its seven judges and the terms of

the remaining three are due to expire later this year.

“The focus of the Bahamas Government at this time must be internal

reform for the betterment of the Bahamian people,” the DNA said. “There

is much work to be done in ensuring the empowerment of the Bahamian

people and local businesses before exposing our nation to the

vulnerabilities of formally submitting to a rules-based regime that is

disproportionate and unfavourable to nations like The Bahamas.

“We maintain that the WTO cannot and must not be the impetus for long

overdue reform within several sectors of our economy. Current members

of the WTO have not been spared from adverse listings and blacklists by

international or multilateral bodies. It would be naive to suggest that

accession to the WTO would be a panacea to the shifting goal posts or

lack of a level playing field for International Financial Centres (IFCs).”

<< Back to news headlines >>

Construction begins in 2020 on $115-million Millennium Highway and West

Coast Roads Upgrading Project Thursday 24th January 2019 – St. Lucia News

Work is expected to begin in the second quarter of 2020 on the $115-

million Millennium Highway and West Coast Roads Upgrading Project and

government officials said it will bring economic activities and reduce

accidents when completed.

A formal signing of the consultancy agreement and contract design for

the project took place on Wednesday.

Infrastructure Minister, Stephenson King, said there will be a reduction of

accidents after the road, which has been dubbed ‘The Roller Coaster

Road,’ is finished.

“Over the years, many road users have come complain of the

deteriorating conditions which probably have brought much grief to

many families in this country,” he said at the signing ceremony. “The sad

and unfortunate events of fatal crashes are well recorded. Also, the

Department of Infrastructure is inundated with a myriad of complaints to

what some refer to as the deplorable conditions on the roller coaster

road. This will be no more.”

Prime Minister Allen Chastanet is confident the project will generate

economic activity on the west coast and the island in general.

He gave an example of visitors to Saint Lucia getting off a cruise ship and

driving down the road to Soufriere and taking a boat back up or going

down by road and returning by road.

“And when you combine that with people who are actually driving down

on an excursion, and clearly if persons are renting a car and going on

tours, the likelihood is that they are going to go down to Marigot and Anse

La Raye and Canaries and eventually into Soufriere,” he explained. “So, it

is the taxi drivers who are immediately making the benefit of that road.”

He said there will be a growth of vendors along the road when it is

finished.

The job goes to FDL Consult Inc in cooperation with international

development consultancy company IMT Worldwide after the government

issued tender requests in 2018 and 16 local and international companies

responded.

Product Manager at FDL, Pewlin Fontenard, said her company is aware of

the many challenges faced by the project.

“We are aware and sensitized towards issues of the informal economic

sector, mobility challenges, gender disparity and climate change among

others,” she stated. “Our design proposal will incorporate both adaptation

and mitigation strategies to minimize the adverse or unwanted impacts.

We also note that most of the route has limited or no provisions for

pedestrians and non-motorized traffic, our solutions will give due regards

to such interventions.”

The project will be administered by the Caribbean Development Bank

and is being funded by a UK Caribbean infrastructure partnership fund

through a technical assistance grant.

<< Back to news headlines >>

U.S. seeks to cut off money for Venezuela's Maduro, aid opposition Thursday 24th January, 2018 – Reuters

The United States is seeking to ensure that Venezuelan oil revenue goes to

opposition leader and self-declared interim president Juan Guaido, and

to cut off money from increasingly isolated President Nicolas Maduro, a

top U.S. official said on Thursday.

Although short on details, the announcement signals that Washington is

willing to go beyond traditional diplomatic measures and will seek to drain

cash from Maduro’s government, which is already struggling under an

unprecedented economic meltdown.

Such a move would significantly strengthen the hand of Guaido, who

swore himself in as interim head of state on Wednesday with the support

of Washington and nations around the region.

“What we’re focusing on today is disconnecting the illegitimate Maduro

regime from the sources of his revenues,” national security advisor John

Bolton told reporters at the White House.

“We think consistent with our recognition of Juan Guaido as the

constitutional interim president of Venezuela that those revenues should

go to the legitimate government.”

Bolton added that the process was “very complicated” and that officials

were still studying how this would function.

Venezuela’s information ministry did not immediately reply to a request for

comment. Guaido did not respond to a message seeking comment.

BOLD CHALLENGE

Washington’s support for Guaido prompted Maduro, Venezuela’s leader

since 2013, to break relations with the United States. On Thursday, he said

he was closing Venezuela’s embassy in Washington as well as all of the

country’s consulates in the United States.

Guaido’s swearing-in was the opposition’s boldest challenge yet to the

long-ruling Socialist Party and has given Maduro’s adversaries an

unprecedented diplomatic platform to press for change in a nation

dogged by hyperinflation, rising malnutrition and political conflict.

But Guaido now leads what amounts to a shadow government

disavowed by the armed forces and with no influence over day-to-day

administration such as importing and distributing food and medicine.

The 35-year-old industrial engineer said he had spoken on Thursday by

telephone with supportive heads of state from around the world.

“I just received a phone call from (Spain’s Prime Minister) Pedro Sanchez

and was able to describe the struggle we are leading together with all of

Venezuela, to achieve a transition government and hold free elections,”

Guaido wrote via Twitter.

His ascent was greeted with excitement by investors holding Venezuela

and state oil company PDVSA bonds, which hit their highest level since

2017 despite being almost entirely in default.

Concerns about potential disruption of Venezuelan crude supplies gave

support to global oil prices.

Oil revenues are crucial to the already crumbling Venezuelan economy

and routing that money away from Maduro as the United State seeks to

do would be a serious blow.

WHO IS LEGITIMATE PRESIDENT?

Guaido took the helm of the National Assembly on Jan. 5 with a call for

the armed forces to recognize Maduro as a “usurper” after his May 2018

re-election, widely viewed as fraudulent.

Backing for him has come principally from the Western hemisphere.

Venezuelan allies including Russia and Turkey - both important

commercial partners - criticized Guaido’s rise as a sign of U.S. interference.

The European Union, which has imposed sanctions on Maduro’s

government, noted that Venezuelans had “massively called for

democracy and the possibility to freely determine their own destiny,” but

stopped short of recognizing Guaido.

Maduro, in a rambling speech, dismissed Guaido’s inauguration and said

he himself remained the country’s legitimate leader.

He has relied extensively on the military to maintain power amid annual

inflation of nearly 2 million percent and an exodus of Venezuelan refugees

into neighbouring countries.

Guaido has said Maduro’s Jan. 10 inauguration to a second six-year term

amounted to a usurpation of power. The vote was boycotted by

Venezuela’s main opposition parties, with Maduro’s two most popular

rivals banned from running and Socialist Party aggressive campaigning

opponents called vote-buying.

Guaido and allies argue that the presidency is vacant as a result and that

the constitution calls for the head of congress to assume the interim

presidency in such a situation.

That still leaves Guaido struggling against a state unwilling to recognize

him and security forces that could jail him, as they did his mentor

Leopoldo Lopez - who is under house arrest for leading anti-Maduro

protests in 2014.

“Can he name ministers? Ministers of air? Phantom ministers?,” asked

Maduro during a speech before the Supreme Court. “Is he going to name

commanders of military units? Will the armed forces obey his command?

Never.”

Protesters clashed with security forces on Wednesday night around the

country and in both affluent and working-class areas of Caracas, with

some demonstrations spilling over into looting.

A total of 14 people have been killed in violence linked to this week’s

protests, according to local rights groups.

Reporting by Steve Holland in Washington and Brian Ellsworth in Caracas;

additional reporting by Roberta Rampton in Washington, Vivian Sequera

in Caracas, Luc Cohen in Bogota, Robin Emmott in Brussels, Vladimir

Soldatkin in Moscow, Karin Strohecker in London and Maria Kiselyova in

Moscow; Editing by Alistair Bell and Rosalba O'Brien

<< Back to news headlines >

UK mortgage lending slows in December Friday 25th January, 2018 – Reuters

British banks approved fewer mortgages last month than in November

and the value of lending for home purchases rose by the smallest amount

since 2016, an industry survey showed on Friday.

Seasonally-adjusted data from the UK Finance industry body showed

banks approved 38,779 mortgages last month. While up more than 6

percent on a year ago, this was down from 39,205 in November.

The value of net mortgage lending increased by 1.235 billion pounds, the

smallest rise since August 2016.

The figures largely add to signs of a slowdown in Britain’s housing market

ahead of Brexit.

Last week the Royal Institution of Chartered Surveyors said its members

had the most negative outlook for house sales over the coming three

months since its records began in 1999.

UK Finance also said it saw signs that businesses were building up cash

reserves, particularly in the construction and retail sectors, in preparation

for uncertain trading conditions.

With little time left until Britain is due to leave the EU on March 29, there is

no agreement in London on how it should exit the world’s biggest trading

bloc, and a growing chance of a ‘no-deal’ exit with no provision to soften

the economic shock.

<< Back to news headlines >

As dismal data flows, ECB policymakers promise caution Friday 25th January, 2018 – Reuters

European Central Bank policymakers promised on Friday to tread

carefully in removing stimulus any further, just as two fresh surveys pointed

to an even bigger-than-projected slowdown in the euro zone’s growth.

ECB President Mario Draghi warned on Thursday that a dip in the 19-

member euro zone’s economy could be deeper and longer than thought

even a few weeks ago, comments widely seen as signalling a delay in the

bank’s first interest rate hike.

Indeed, a key German business morale indicator fell for the fifth straight

month in January, while the ECB’s own survey of professional forecasters

pointed to sharply lower growth and inflation.

“We remain committed to maintaining interest rates very low, which is

good for the economy,” French central bank chief Francois Villeroy de

Galhau told France 2 television on Friday.

“Progressively we are withdrawing monetary stimulus ... but it is very

progressive and depends on improvement in the economy. We’ll take the

time it takes,” said Villeroy, widely seen as a leading candidate to take

over from Draghi when his mandate expires in November.

The ECB ended its 2.6 trillion-euro ($3 trillion) crisis-era asset purchase

scheme last month and said it would keep rates at a record low ‘through’

the summer, signalling a rate hike late in the year.

SLOWDOWN

But markets have long given up on such a move, pricing a rise only for

mid-2020 as the euro zone economy is suffering its biggest slowdown in

more than half a decade, with no recovery in sight.

“The slowdown has surprised us ... we have to be very careful to monitor

the data,” ECB board member Benoit Coeure told Bloomberg television,

arguing that the jury was still out on whether this growth dip is temporary.

The ECB’s quarterly survey, a key element of Thursday’s policy

deliberations, put growth at 1.5 percent this year, well below a previous

projection of 1.8 percent.

Inflation, the ECB’s primary mandate, is now seen dipping to 1.5 percent

and only rising to 1.8 percent in the ‘longer’ term, suggesting that

confidence in the central bank’s ability to reach its target of almost 2

percent is dipping.

Germany, France and Italy, the euro zone’s biggest economies, barely

grew last quarter and the IFO warned that 2019 also started on a weak

note.

“Disquiet is growing among German businesses,” IFO President Clemens

Fuest said in a statement. “The German economy is experiencing a

downturn.”

Economists now widely expect the ECB to push out the timing of the first

rate hike by adjusting its interest rate guidance, perhaps as soon as

March.

It is also seen providing banks with more long-term loans to roll over

previous facilities and shore up confidence in the financial sector.

“We could consider the provision liquidity and credit to banks, it’s part of

our toolbox,” Villeroy said later in an interview with Bloomberg TV.

Additional reporting by Joseph Nasr in Berlin; editing by Richard Lough

<< Back to news headlines >

German government slashes 2019 economic growth forecast to 1 percent Friday 25th January, 2018 – Reuters

The German government has cut its economic growth forecast for 2019 to

1.0 percent from 1.8 percent, parliamentary and government sources said

on Friday.

The government now expects the economy to grow by 1.6 percent in

2020, the sources added.

<< Back to news headlines >

Axe to fall again at Nation Thursday 24th January, 2018 – Barbados Today

Staff of the Nation Publishing Company are bracing for more job cuts.

According to reports reaching Barbados TODAY, a number of positions will

be made redundant in the coming months.

This follows a meeting between the company’s management led by Chief

Executive Officer Anthony Shaw and Group Financial Controller Noel

Wood and a delegate from the Barbados Workers’ Union (BWU) which

included general secretary Senator Toni Moore and consultant Sir Roy

Trotman.

Sources said that managerial staff is expected to be among those being

sent home.

In a meeting with staff this afternoon, Shaw informed them that he had

met with union officials and had presented them with the financial

particulars and performance of the company since 2008, to help

determine a way forward for the company.

He told them that while changes in staff were possibly coming, it would

not be on the same scale of those from 2018.

It will be the second series of layoffs for the Trinidadian-owned newspaper

company in less than a year.

Last April, close to 30 workers were severed, including some from the

newspaper’s sister company Starcom Network. At that time, the company

blamed the highly competitive and rapidly changing print media

environment for the layoffs.

It also claimed that the cuts were as a result of challenges posed by the

various social media platforms and dwindling newspaper revenues over

the past ten years.

On that occasion, one advertising sales executive, two classified advisors,

one typesetter, one senior writer, one traffic coordinator, one lithographer,

one graphics artist, one senior accounts clerk, one sub editor and three

reporters lost their jobs.

< Back to news headlines >>

RER review needed Thursday 24th October, 2018 – Barbados Today

One local economist is calling for an immediate review of the Renewable

Energy Rider (RER) programme, which allows producers of electricity from

renewable energy source to sell power to the Barbados Light & Power

Company (BL&P).

Former Prime Minister Professor Owen Arthur said if Barbados was serious

about meeting its renewable energy goals and breathing life into the

economy, then the Fair-Trading Commission (FTC) should review and

adjust the limits and rates under the programme.

In July 2016, the FTC set a temporary rate for the power being sold to the

national grid under the RER programme at $0.416/kWh for solar

photovoltaic and $0.315/kWh for wind until a permanent rate may be

established”.

At the same time, the FTC said a decision was taken to increase the

capacity limit to 500kW from 150 kW for individuals. Companies have a

limit of 5 megawatts (MW).

Last year, Minister of Energy and Water Resources Wilfred Abrahams gave

notice that a permanent rate would be pursued.

However, with that yet to materialize, Arthur told the SALISES Policy Forum

at the University of the West Indies (UWI) on Wednesday night that the

country was running out of time to improve its growth prospect.

And he said he believed a lot of that growth would require a “major

reform” of the renewable energy sector by “releasing it from the chains

that have been imposed on it”.

The noted economist argued that the country could use photovoltaic and

wind energy to generate most of its energy, but suggested that the

current sum being paid for the energy and the limit of how much

individuals and companies could produce under the programme were

simply not cutting it.

“We have to move the restriction on the capacity and pricing and it can

be done right away for alternative energy to become a growth area for

Barbados,” said Arthur, while arguing that if this was done other sectors

such as agriculture could benefit.

“I believe that it is absolutely necessary that there be an immediate

revision to rulings of the Fair-Trading Commission that really run directly

counter to the need for us to be able to generate 500 megawatts of

energy from alternative sources immediately, and to do so without

impoverishing the alternative energy producers and enriching the light &

power. Mr Abrahams, please act,” said Arthur.

The economist argued that the proposed changes would immediately

enable the sector to “invigorate the Barbados economy”.

<< Back to news headlines >>

H10, Princess to Invest US$750m In Hotel Sector Friday 25th January, 2018 – Jamaica Gleaner

Spanish hotel chain Princess Resorts has committed to investing US$500

million in the construction of 2,000 rooms, while H10 Hotels has

recommitted to spending US$250 million to add 1,000 rooms on the island.

The deal was sealed by Minister of Tourism Edmund Bartlett during the

FITUR trade show now on in Spain and follows a 2015 announcement by

H10 to construct an 800-room resort in Trelawny.

Those rooms were scheduled for completion by 2018, but it is unclear why

the project never got off the ground.

This new commitment will see the construction of an added 200 rooms

and an injection of US$50 million more than was announced in 2015. Both

investors will construct a total of 3,000 new rooms in Trelawny and Hanover

by 2021, Bartlett said in a media release yesterday. He said that H10 would

officially break ground on February 6, and Princess Hotels would do the

same by mid-February.

Operating under the brand Ocean by H10 Hotels, the chain has more

than 50 hotels in 18 destinations, while Princess Hotels and Resorts, ranked

eighth in the Spanish market, has 19 hotels.

Highlighting the significance of the agreements, Bartlett said: “The value

of this investment cannot be overstated as it will transform our tourism

product and allow for heavier marketing of the destination. More rooms

means more visitors, and more visitors means more foreign-exchange

earnings, and, ultimately, more economic growth, which is in line with our

5x5x5 growth strategy”.

Currently, Jamaica’s room stock is 32,000. Under the 5x5x5 growth

strategy, the aim is to have 15,000 additional rooms by 2022.

“These mega projects are ready to go. Funding is in place, lands have

been purchased, and development ready to begin, following the

requisite approvals being granted,” said Bartlett.

While at FITUR, the largest international tourism trade fair for inbound and

outbound Ibero-American markets, Bartlett is expected to host business

meetings with tour operators, airline representatives, and other industry

partners, including major Spanish investors Iberostar, Grand Bahía, Grupo

Piñero, and Grand Palladium.

<< Back to news headlines >>

Venezuela Crisis: Familiar Geopolitical Sides Take Shape Friday 25th January, 2018 – Jamaica Gleaner

Russia, China, Iran, Syria, and Cuba have come down on one side. The

United States, Canada, and countries in Western Europe are on the other.

As the crisis in Venezuela reaches a new boiling point –with embattled

Venezuelan President Nicolas Maduro facing a challenge from opposition

leader Juan Guaido – the geopolitical fault lines look familiar.

President Donald Trump, Vice President Mike Pence, and Secretary of

State Mike Pompeo issued statements on Wednesday proclaiming the

United States’ recognition of Guaido, saying the US would take all

diplomatic and economic measures necessary to support a transition to a

new government. Canada said it was recognising Guaido as the interim

president, and British Foreign Secretary Jeremy Hunt called him “the right

person” to take Venezuela forward.

But Washington’s adversaries are issuing warnings against US intervention.

Russian officials have called the move a “coup” orchestrated by the US.

The US and Russia already are at odds over Syria’s civil war, and the

Venezuelan crisis has the potential to add further strain. Russian-US ties

have sunk to post-Cold War lows over Moscow’s support of separatists in

Ukraine and allegations of Russian meddling in the 2016 US election.

“We view the attempt to usurp power in Venezuela as something that

contradicts and violates the foundations and principles of international

law,” said Dmitry Peskov, spokesman for Russian President Vladimir Putin.

Venezuela’s status as a major oil producer – it has the world’s largest

underground oil reserves, but crude production continues to crash –

means its political instability has deep implications globally.

And Russia has taken a special interest. Last month, Russia sent two Tu-160

nuclear-capable bombers to Venezuela for several days in what was seen

as a precursor to a possible long-term military presence.

Pompeo criticised the move at the time as “two corrupt governments

squandering public funds and squelching liberty and freedom while their

people suffer. Peskov dismissed the comment as “undiplomatic” and

“inappropriate,” saying that half of the US military budget “would be

enough to feed the whole of Africa.”

Russia’s foreign ministry said on Thursday the crisis now “has reached a

dangerous point” and urged the international community to mediate

between the government and the opposition.

Russian Prime Minister Dmitry Medvedev even injected some domestic US

politics into the equation, citing the partial government shutdown and the

differences between Trump and House Speaker Nancy Pelosi.

“Let’s imagine, just for an instant, how the American people would

respond, for example, to the speaker of the US House of Representatives

declaring herself the new president against the backdrop of the budget

crisis and government shutdown,” Medvedev said on Facebook. “What

would be the reaction from the current US president, especially if this

move was supported by the leadership of another country, for example,

Russia?”

Russia frequently decries popular uprisings like the “colour revolutions” that

have taken place in Ukraine, Georgia, and other countries in its former

sphere of influence.

China’s foreign ministry also sternly urged against interference by

Washington in Venezuela. Beijing’s allies, including Iran and Syria, followed

suit.

China “opposes external intervention in Venezuela”, Foreign Ministry

spokeswoman Hua Chunying said. “We hope that Venezuela and the

United States can respect and treat each other on an equal footing, and

deal with their relations based on non-interference in each other’s internal

affairs.”

In the last decade, China has given Venezuela US$65 billion in loans, cash,

and investment. Venezuela owes it more than US$20 billion. China’s only

hope of being repaid appears to lie in Venezuela ramping up oil

production, although low oil prices and the country’s crashing economy

appear to bode poorly for such an outcome.

The Russian state-controlled oil company Rosneft has invested heavily in

Venezuela, and its chief executive, Igor Sechin, visited Caracas in

November, pressuring the Maduro government to make good on its

commitments to his company. Russia, a major oil producer itself, has been

buying oil from the state-run Venezuelan company PDVSA, and Sechin

reportedly went to Caracas to raise concerns about Venezuela halting oil

supplies.

Russia is estimated to have poured in at least US$17 billion in Venezuela in

loans and investment since Maduro’s populist predecessor, Hugo Chavez,

came to power in 1999. The Economic Development Ministry said Russia

has invested around US$4 billion in Venezuela, mostly in joint oil projects.

Asked if Russia would be willing to grant asylum to Maduro, the Kremlin

spokesman Peskov refused to speculate and insisted that Moscow views

Maduro as the only legitimate leader. Maduro visited Moscow in early

December, seeking political and economic assistance as Venezuela has

faced sky-high inflation and food shortages.

For Iran, its relationship with Venezuela hinges on their mutual enmity

towards the US.

Chavez travelled to Iran in 2006 and received the country’s Islamic

Republic Medal, its highest award, from hard-line President Mahmoud

Ahmadinejad, who called Chavez a “brother and a trench mate.”

Chavez vowed Venezuela would “stay by Iran at any time and under any

condition”. Both leaders faced criticism from then-US President George W.

Bush and offered their own withering criticism of him.

After Maduro took power upon Chavez’s death in 2013, Iran has

maintained its support of Venezuela. On Thursday, Iran’s foreign ministry

spokesman, Bahram Ghasemi, criticised the US and other countries over

meddling in Venezuela.

“The Islamic Republic of Iran supports the government and people of

Venezuela against any foreign intervention in the internal affairs of

Venezuela or any other illegitimate and illegal measure such as a coup

d’etat,” Ghasemi said.

Strong endorsement for the current Venezuelan government also came

from Turkey, where President Recep Tayyip Erdogan sent a message of

support: “My brother Maduro! Stay strong. We are by your side.”

Turkey also has cultivated close economic and political ties with Maduro.

During a visit to Venezuela in December, Erdogan blamed US sanctions for

the country’s economic hardships.

Presidential spokesman Ibrahim Kalin said Turkey, under Erdogan, would

“maintain its principled stance against coup attempts.” Erdogan himself

faced a military coup attempt in 2016.

Syria also came to the defence of Maduro’s government.

Damascus reaffirmed its “full solidarity with the leadership and people of

the Venezuelan Republic in preserving the country’s sovereignty and

foiling the American administration’s hostile plans,” the Syrian foreign

ministry said.

Cuba’s foreign ministry said Havana “expresses its unwavering solidarity”

with the Maduro government. Cuba has sent its closest ally tens of

thousands of workers, from doctors to intelligence officials, and in return

has received tens of thousands of barrels a day in heavily subsidised oil.

<< Back to news headlines >>

BPO Workers to Get US$15m Training Boost Friday 25th January, 2018 – Jamaica Gleaner

The Government has signed a US$15-million loan with the Inter-American

Development Bank in a drive to further expand the country’s business

process outsourcing sector.

Speaking at the signing of the loan agreement at his Heroes Circle offices

in Kingston yesterday, Finance Minister Nigel Clarke noted that the sector

is on a trajectory to expand to 40,000 jobs by next year.

“The global services sector in Jamaica has experienced rapid growth over

the past few years and has also generated rapid growth in our economy.

By next year, we will have a total of 40,000 persons employed in the

global services sector, and a short period thereafter, in two or so years,

that number should increase to 50, 000.”

The loan will facilitate state-of-the-art training for workers in modern

technology as well as strengthen institutions to make the local BPO

environment more attractive to investors under Skills Development for

Global Services, a programme to be executed by JAMPRO in

collaboration with the HEART Trust/NTA and the Ministry of Education.

“As we aim to move up the value chain, we see more jobs being created

in higher-skilled areas, including human resources, accounting, legal

process outsourcing, and knowledge process outsourcing, data analytics,

software development, robotics (AI), and gaming. We want to see more

Jamaican companies established in this space offering world-class

information technology consulting services, managing contracts for

global companies, and creating new apps to solve regional and

international problems,” said JAMPRO President Diane Edwards.

Sagicor Chairman Richard Byles, who last year voiced concerns that the

BPO sector was generating mainly low-paying jobs, hailed the new

developments as “a move in the right direction”.

The president of the Private Sector Organisation of Jamaica, Howard

Mitchell, who said yesterday that he had sided with Byles when he made

the statement about the sector needing a boost, is also welcoming the

initiative.

“I expect that a substantial part of it will be set on developing our young

people who have the skills in accounting, law, and those who have

medical skills, and to utilise them in that aspect of the industry. It will go a

far way in adding value to our services. There are some 2,440 lawyers

produced every year. There are some 300 doctors who graduate every

year. I know there are young people with first degrees in accounting and

finance but have no jobs. This, hopefully, will provide the scope.”

If all goes well, Edwards said she would want to see “Jamaican

descendants returning home to participate in a vibrant tech sector”.

“A lot of people think that this is an unskilled industry. It is not! It requires

highly skilled people, and that is the focus of the programme – to open up

a world of opportunities for Jamaica to grow exponentially in the sector.

The Fourth Industrial Revolution is not coming. It is here. Driverless cars,

smart homes, telemedicine, and the robotic process automation, all these

are already a reality in developed countries.”

<< Back to news headlines >

iCreate seeks $70 million via IPO Friday 25th January, 2018 – Jamaica Observer

CREATIVE training institute, iCreate Limited, is seeking to raise capital of

roughly $70 million through the sale of 74 million shares in an initial public

offering (IPO) on the Junior Market.

The offer, which opens 9:00 am on Thursday, January 31, has made

available 30.3 million shares to the general public and 20,000,000 shares to

key partners at $1.01 each. Another 24,062,500 shares are reserved at

$0.81 each.

Applicants looking for part ownership in the company must request a

minimum of 1000 ordinary shares before the offer closes at 4:00 pm on

Thursday, February 14.

According to the company, the proceeds raised from the IPO will be used

to acquire additional equipment, computers and software to deliver

courses. iCreate also wants to expand its physical infrastructure to include

additional computer labs, training rooms and workshop space in Kingston

and Montego Bay.

Additionally, the school is looking to implement new training courses such

as certified professional diplomas, bachelor's degrees and offer corporate

training and also has its eyes on regional and international expansion.

“The company believes that the funds raised from this invitation, if

successful, will enable it to strengthen its balance sheet thus further

enabling it to take advantage of opportunities that may arise from time to

time,” Chairperson, Sandra Glasgow said in the prospectus published on

the Jamaica Stock Exchange.

A subsidiary of eMedia Interactive, iCreate was founded by Tyrone Wilson.

The institution works in partnership with the University of the

Commonwealth Caribbean to deliver degrees and certification courses

to prospective students under the fields of film, advertising, animation,

graphic design, mobile games and fashion design.

In its prospectus, the institution said it has trained more than 370 people in

eight courses in the creative industry since the institute was incorporated

in January 2018, and has managed to generate interest in excess of 3,000

prospects based on applications uploaded to its online portal.

“With increased marketing and exposure from the IPO and our marketing

activities, the number of prospects is expected to double in 2019,” the

institution said.

As for its plans for the regional and international markets, the institution

said it has purchased a licence from the Digital Marketing Institute in the

UK to offer professional and specialist diplomas in the area of digital

marketing and social media.

Additional licences were reportedly purchased by iCreate from the Digital

Marketing Institute to offer digital marketing programmes in the United

States, with Florida as its initial market. iCreate has already registered the

company to start operations in Miami, Florida.

For the quarter ended March 2018, iCreate recorded revenues of $11.69

million with digital courses accounting for approximately 42 per cent of

revenues, and certificates 40 per cent. Corporate training accounted for

approximately 18 per cent of total revenues.

<< Back to news headlines >

Capital markets should be allowed to enhance growth and development

— Gooden Friday 25th January, 2018 – Jamaica Observer

COUNTRIES with well-developed capital markets experience higher

economic growth than countries without, declared the CEO of NCB

Capital Markets, Steven Gooden, at the Jamaica Stock Exchange (JSE)

14th Regional Conference on Investments & Capital Markets held at the

Jamaica Pegasus hotel in Kingston.

This year the theme is “Expanding our borders: Securing our future”.

Gooden pointed out that empirical research suggests that the capital

markets enhances economic growth and development. But he cautioned

that the reality is that in the Caribbean, the role of the capital markets

and the importance of its various players in facilitating GDP growth is

generally not understood, or at best not fully appreciated.

“In Jamaica, the size of the non-bank financial sector, which are active

participants in the capital markets, stood at approximately $1.7 trillion,

exceeding that of the banking system. The data then suggests that the

opportunity for capital markets-driven growth is tremendous, especially at

a time when the government is a net re-payer of debt. If we are to

achieve the illusive 4 to 5 per cent GDP growth, a well-functioning capital

market is necessary,” said Gooden who is also the president of the

Jamaica Securities Dealers Association ( JSDA).

The NCB Capital Markets boss singled out the Jamaican government for

praise on the work it has begun to facilitate the deepening of the capital

markets during the last calendar year. He noted that there is now a

greater openness on the part of the Central Bank as it relates to the

importance of the capital markets.

He commended the government on the initiative to strengthen the

institutional framework of the Bank of Jamaica via an amendment to the

Bank of Jamaica Act. However, he called for representation from the non-

bank financial sector in any body responsible for developing and

implementing policies impacting the financial system.

While Gooden acknowledged progress being made he was unequivocal

in highlighting shortcomings and constraints that stymie the capital market

and its further development.

Chief among those he highlighted was the limitation placed on fund

managers and securities dealers in acquiring foreign currency

denominated debt securities issued by local companies as well as the

restriction on local companies and securities dealers to issue foreign

currency debt securities.

“This goes counter to the notion of having a liberalised foreign currency

market and is anti-competitive. We understand the concern regarding

the potential impact of the capital markets on the foreign currency

market. However, given Jamaica's experience with foreign currency

movement over the decades, making a significant dent on the level of

dollarization in the financial system may very well take a generation.

“As such, for the foreseeable future, there will always be an existing pool

of US dollar liquidity for corporates to tap into without investors having to

convert from local currency to US dollars.”

To buttress his point he pointed out that there are companies that are

natural borrowers of US dollars such as BPOs and hotels and that 26 per

cent of all loans are hard currency denominated.

Underscoring his assertion, Gooden said: “The problem occurs when these

companies are forced to borrow in local currency then convert to US

dollars instead of tapping into the existing pool of hard currency liquidity.

This essentially creates currency pressures… the same problem the

authorities are trying to avoid.”

Casting his eye over attracting more international investors, the NCB

Capital Markets boss surmised that given the improved outlook for the

economy and the attention that Jamaica has been receiving

internationally, it is very likely that sizeable foreign currency denominated

capital market transactions will attract international investors, bringing in

more hard currency into the country.

“High net worth individuals that really want hard currency exposure, will

just simply move their funds overseas if there is a scarcity of quality local

assets to invest in, creating a bigger problem – that of capital flight.

“We understand that the capital markets could cause occasional

volatility in the foreign currency market; we, however, believe that the

concern is overstated and that the residual risk is manageable.

“Instead of shunning the hard currency aspect of the market, let us

embrace it and use it as a catalyst for greater financial inclusion. Our

recommendation is to set a discreet timeframe for relaxation of these

restrictions. An appropriate timeframe will allow stakeholders to plan to

mitigate any resulting risk while fully capitalising on the opportunities that

will arise.”

Turning his attention to the matter of tax inequality, Gooden pointed out

that regulated financial entities with the exception of life insurance

companies are subject to a corporate income tax rate of 33 1/3 per cent

compared to other companies taxed at 25 per cent.

Additionally, he added, there is a tax of 0.25 per cent on assets which for

income tax purposes is not a tax-deductible expense.

“This inequality, the asset tax in particular, came about at a time when

the government embarked on programmes to improve its fiscal situation.

Fast-forward six years and the government's fiscal situation has improved

and now the country has moved from a fiscal deficit of 3.9 per cent of

GDP to a surplus of 0.1 per cent and debt to GDP of 132.5 per cent to

close to 100 per cent of GDP.

“Now that the country is on the right track, we believe it is now time to

revisit the regime. Now is the time to remove the current asset tax and

bring the corporate tax rate of financial institutions in line with non-

financial companies. There is no other country in our region with this level

of tax differentiation,” said Gooden.

<< Back to news headlines >

JSE launches Jamaica Social Stock Exchange Friday 25th January, 2018 – Jamaica Observer

The Jamaica Stock Exchange (JSE), the world's number one performing

stock exchange, launched the Jamaica Social Stock Exchange (JSSE) as

a move to address social inequity at the Jamaica Pegasus hotel in New

Kingston on Tuesday night.

“We believe we must play a role in this value chain,” said Marlene Street

Forrest, managing director of the JSE, in her opening remarks. The initiative

would represent a move out of obscurity while attracting international

investment, she said.

The JSSE is being pioneered not just as a Corporate Social Responsibility

(CSR) activity of the JSE, which it is initially, but to also promote Social

Capital Market, according to the JSE.

“It will engage the financial sector and the entire economy of the country

towards a greater good, which encompasses sustainable development

with people at the centre, growing the social economy, which is now

approximately 3.5 per cent of Jamaica's US$17 billion economy, largely

comprising “Not for Profits” or NGOs.” the JSE says on its corporate

website.

Prime Minster Andrew Holness officially launched the JSSE and greeted

representatives from four of the first organisations to be listed — Choose

Life International, Alpha School of Music, Deaf Can Coffee, Agency for

Inner-city Renewal (AIR) and Praise Jamaica.

The event was standing room only, even with extra chairs being brought

into the Pegasus ballroom, with no space at the hotel parking lot, and

participants seeking parking at the neighbouring Courtleigh Hotel.

The JSE celebrates its 50th anniversary on February 2, and several events

are planned, Street Forrest said. Main sponsors for the conference were

Jeffries and NCB.

“Our wish is for the JSE to not only be the number one performing stock

market, but the place to which the world turns for wealth creation,” Street

Forrest said in her welcome message.

“We also want to see the strengthening of our regional alliance, which will

be continued with the region's exchanges and regulators,” she said.

Gregory Fisher, managing director and head of emerging markets from

lead sponsor Jeffries, in his speech on “Disruption in the global financial

markets: opportunities and threats for emerging markets” spoke about

both the US stock market and the Jamaican economy.

On the US he said that despite the “December massacre” on the stock

market, he was not predicting a recession, although “you are going to

see a slow down.”

He noted that monetary policies are tougher now than they were in 2016,

and that 2019 is the beginning of a predictable cycle.

he said the Fed is likely to cut rates, and that the future bodes well for

fixed income markets.

On Jamaica he said the news was good, noting that unemployment is

down, growth is up and “Jamaica is on an upward trajectory.”

“All the austerity this country has gone through are lessons learned,” Fisher

said.

he said that in 2018 Jamaica outperformed the international benchmark

as assets didn't go down sharply unlike much of the rest of the world.

“Jamaica's credit has continued to improve,” he said, noting that a 2019

upgrade is likely according to the rating agencies.

Three former Jamaican prime ministers presented on a round table

discussion, with PJ Patterson speaking on “The Capital Markets: The key to

capital formation, job and wealth creation”; Edward Seaga on “Re-

engineering integration across the region: Using the exchanges as the

engine of growth”; and Bruce Golding on “Governance, transparency

and ethics, developing lasting values across the region”.

In his address, Patterson said “the JSE by its performance has the capacity

to lead the Caribbean” in creating a regional exchange. He said the

Small and Medium Enterprise (SME) “is ripe for targeting and it is

underserved by the financial sector”, which he noted is a global feature

not just in Jamaica.

“People from all walks of life, including workers and young people need to

be educated about the stock market,” he said.

<< Back to news headlines >

PM in emergency talks with Caricom Friday 25th January, 2019 – Trinidad Express Newspapers

CARICOM leaders were catapulted yesterday into a crisis conference as

the turmoil in Venezuela took centre stage.

A terse release from the Government announced that Caricom heads of

government held an 'emergency meeting' via video conference to

discuss the 'ongoing situation in Venezuela'.

The only information provided was that Prime Minister Dr Keith Rowley and

Foreign and Caricom Affairs Minister Dennis Moses 'were in attendance'.

According to Government sources, the meeting was hurriedly called and

was still in progress at the time the release was dispatched, and was still in

session last night.

Moses said last evening that Caricom (which was still meeting) was

heading towards a consensus position which included an approach to

the United Nations and 'interfacing with Venezuelan President Nicolas

Maduro'.

Rowley was still attending the meeting last night and therefore had to

delegate his responsibilities at the 'Conversations with the Prime Minister'

event in Palo Seco to Energy Minister Franklin Khan.

Speaking at yesterday's post-Cabinet news conference at the Diplomatic

Centre, St Ann's (prior to the convoking of the emergency meeting),

Communications Minister Stuart Young said Government would be

prepared to mediate in the ongoing imbroglio should the parties so desire.

'We hold out that Caricom and Trinidad and Tobago have always held

ourselves available to act as mediator or to act in any position that may

bring people (to the table) to carry out productive dialogue. That is the

role we are prepared to play,' he said.

'We are quite concerned... but we are not going to play any

interventionist role, nor would we take any such basket. We continue to

respect the sovereignty. At the end of the day, the Venezuelan people

will decide,' he said.

We are concerned

Saying on a clear day, one can see the Venezuelan coastline from

Trinidad and Tobago, Young said what goes on there is bound to affect

this country.

However, he stressed: 'Government's position of non-interference and

non-intervention was a very carefully thought-out position.'

Noting this stance had been adopted throughout the country's

independent history, Young said it was also 'generally' Caricom's position

as well. 'This does not mean that we as a Government are not concerned

about what is going on in Venezuela. How we react to this concern is

what is different.... We want things to end peacefully.... We respect the

sovereignty of Venezuela and our other neighbours,' he said.

Young pointed out the Prime Minister had raised with the outgoing

president of Chile during his State visit to Chile (in May 2017) the issue of

what was going on in Venezuela. 'He even offered Trini dad and Tobago

as a meeting place for any discussions...with the opposing sides,' Young

said.

He said the Prime Minister, in a recent Caricom meeting in Jamaica, also

had a conversation with the current president of Chile, and one of the

issues discussed was whether any resolve could be brought to the

Venezuela situation.

Asked whether Moses' attendance at Maduro's inauguration suggested

T& T's support, Young said: 'His attendance was a show of support at his

inauguration. I will not bury my head in the sand.'

He said the Prime Minister has had no recent communication with

Maduro.

Young said he believed very few of the local commentators who were

asking questions and making criticisms in the last 24 hours had taken the

time to read the Venezuelan constitution.

Gas deal still stands

Young expressed optimism that the gas agreement between T& T and

Venezuela would not fall victim to the turmoil in that country.

He said contrary to what people thought, Government sought and

obtained legal advice.

He noted that Shell, a major international company, was part of the

arrangement.

He added he had not heard 'any noise from the people of Venezuela

and, in particular, the Opposition' on this transaction. He said one

individual from Venezuela came to this country and made statements

and they were suspicious as to how he was invited to T& T and who

facilitated him.

'Let us not call anything unnecessarily upon ourselves,' he said, adding the

Government expected the contract to be honoured, regardless of who is

the administration.

Young also dismissed fears that T& T's position could harm its relationship

with the US, in light of that country's recognition of Venezuelan opposition

leader Juan Guaido as the interim president of Venezuela.

Young said every sovereign state is entitled to make to its own decisions.

He said it was easy for people to sit on the other side of the Atlantic or

people way up North to take certain positions.

On the issue of an influx of Venezuelans into T& T, Young said the Coast

Guard had increased its presence along the borders.

He said he also spoke with the Chief Immigration Officer, and work would

also be done on the illegal ports of entry.

Young, who had said he had been interested in engaging the

Venezuelan ministers of foreign affairs and national security, and

considered inviting them for a meeting to discuss border protection, said

while he was still interested in ensuring Venezuela plays its part, he would

adopt a 'wait-and-see' position before taking any further action.

<< Back to news headlines >>

SWRHA: All A&E depts overcrowded Friday 25th January, 2019 – Trinidad Express Newspapers

THE South West Regional Health Authority (SWRHA) has admitted

overcrowding is the main challenge at its five emergency departments.

Responding to recent complaints about the long waiting time at the

Emergency Department at the San Fernando General Hospital, the

SWRHA said measures have been taken to effect positive changes.

In a release, the SWRHA said medical staff see and treat approximately

807 patients on a daily basis at its five emergency departments (EDs).

At the San Fernando General Hospital (SFGH), it stated approximately 307

patients were seen and treated daily.

The RHA serves a population of over 500,000.

The SWRHA completed a newly designed observatory bay the SFGH in

July 2018.

The area, managed by an emergency medical team comprising

medical, nursing and ancillary staff providing clinical coverage on a 24/7

basis is equipped with 22 beds, oxygen availability and waiting

accommodations for family members of clients accessing care and

caters to clients who are medically stable with specific emergency

conditions, whose length of stay is less than 12 hours in duration And there

has been continuous staff development and training in the past year, said

the SWRHA.

'Training of the nursing staff in IV cannulation–The IV Cannulation

programme–is one example of continuous education training. The skill is

invaluable since it helps the nurse to take instant, correct action in

emergency situations thus saving lives. No longer are only the medical

doctors performing insertion of cannulae,' the authority stated.

All staff members would be trained in basic life support.

And trauma training would provide trauma techniques and X-ray

interpretation to all new emergency department house officers.

Staff would also be trained in electrocardiogram (ECG).

In October 2018, the paediatric department in collaboration with the

emergency department initiated the Child Filter Clinic so that children 15

and under would be seen by paediatricians in a dedicated children's

area, away from the adult patients, the release said.

This initiative reduced paediatric admissions by over 50 per cent and had

100 per cent excellent customer satisfaction rating, the authority stated.

The SWRHA has also started a recruitment process by filling vacancies of

nursing and technical staff.

Former SWRHA chairman Dr Lackram Bodoe said on Wednesday the

Government had failed to make health care a priority with the nation's

hospitals on the verge of collapse.

He said hundreds of qualified doctors and nurses remain out of jobs while

patients continue to wait long hours at the hospitals' A& E departments.

Bodoe said the long waiting time in the A& E Department was directly

related to the shortage of beds at the institutions.

And he was disturbed that the Government can boast of saving $211

million from the health sector.

<< Back to news headlines >>

Project Reason abandoned Friday 25th January, 2019 – Trinidad Express Newspapers

PROJECT Reason, an anti-crime initiative which was determined to have

significantly impacted upon crime levels in Laventille and East Port of

Spain was abandoned due to funding and management issues.

This was disclosed yesterday during a meeting of the Inter-American

Development Bank (IDB) at its Washington headquarters.

Project Reason was implemented in T& T from July 2015 to August 2017

using the methodology of the IDB's 'Cure Violence' initiative first

implemented in Chicago.

As part of the programme, Project Reason staff–who were trained in

conflict resolution and other skills– would go into the communities and

engage with gang members, gang leaders and at-risk people and work

with them to prevent violence and retaliation.

The programme was implemented in 16 areas including Beetham

Gardens, Belmont, East Port of Spain and Gonzales and was financed with

a loan from the IDB.

Sharing her experience working with gangs in these areas, Patrice Morris,

a member of the Cure Violence team, said she was surprised by the

conditions and levels of poverty under which people in these communities

live.

Morris said: 'I saw bullet holes in buildings where children live with their

families,' She said she heard stories from residents who were forced to hide

under their beds during shootouts and she stressed the level of fear

members of these communities faced on a daily basis.

Another member of the team described St Paul Street in Port of Spain as

'Iraq', saying he heard gunshots on the phone while speaking to a resident

and realised the 'serious artillery' gangs had access to.

But according to the IDB, within one year of the launch of the project, the

violent crime rate in these areas declined by 45 per cent as compared to

an area that was not part of the programme.

Calls to the police for murders, shootings, and woundings decreased by

22 per cent and the Port of Spain General Hospital experienced a

reduction of roughly 38.7 per cent in the number of gunshot-wound

admissions following the implementation of the project.

The findings were presented during the meeting yesterday and in a

document titled 'Evaluating Cure Violence in Trinidad and Tobago'.

But despite the project being successful, it was discontinued in August

2017 because of insurmountable management issues, according to

Edward Maguire, a criminologist at the Arizona State University and

member of the Cure Violence team.

'The management issues turned out to result in the premature disbanding

of the programme,' he said.

'So all the individuals who were out in the streets preventing acts of

violence are no longer doing that kind of work. They're no longer

employed. The management issues were significant, there were major

conflicts.'

The IDB noted in its report that the programme suffered due to funding

issues as the staff on the ground were paid very low salaries and often

had to use their own money to travel to mediations, court dates and other

places.

Contractor failed to pay

Parliamentary Secretary in the Ministry of National Security Glenda

Jennings-Smith was present at the meeting in Washington yesterday and

said the discontinuation of the programme was not because of

Government non-funding. 'What was the problem was that a contractor

was hired by (Citizen Security Programme) to engage Project Reason

along the Cure Violence model. That contractor failed to pay the workers.

Whilst the Government released funding for the contractor, that

contractor in turn did not pay the workers. 'That is one of the problems...

but certainly we know what has happened, we are taking note, we are

concerned...'

She added the Government has been unable to get any data on the

programme.

'We tried to access that data and there is none,' she said.

Maguire said the data was available and can be accessible to the

Hovernment of T& T. But Jennings-Smith said even though there was a

remarkable drop in violent crimes in the communities where the

programme was active, the crime rate stayed the same countrywide.

'The area of concern was really Port of Spain East which is just one part of

our country where homicides were occurring at higher rates. Now we

have migration of crime throughout the country.'

<< Back to news headlines >>

La Brea gets some Cassia C work Friday 25th January, 2019 – Trinidad Express Newspapers

THE Trinidad Offshore Fabrication Company (TOFCO) fabrication yard in

La Brea has been awarded some of the work to manufacture bpTT's

Cassia C compression platform.

The confirmation came in a statement from the Houston- based

contractor, Mc-Dermott International, which issued a statement yesterday

to announce it had been awarded the contract for the engineering,

procurement and construction (EPC) of Cassia C McDermott described

the contract as 'significant', which places the value of the total EPC

contract in a range between US$250 and US$500 million.

The platform manufacture at La Brea consists of the fabrication of the

piles, jacket, bridge landing frame as well as some brownfield fabrication

support on the Cassia B platform. McDermott said jacket would weigh

3,400 tonnes, while the 720-metric tonne bridge would link the Cassia C

platform to the existing Cassia B platform that currently sits in 68 metres of

water.

The 8,100-tonne Cassia C topsides will be fabricated and constructed at

McDermott's fabrication facility in Altamira, Mexico-where another

recently delivered project for bpTT, Angelin, was fabricated.

'This award demonstrates how, through strong collaboration and

consistent project execution, we continue to build our relationship with

bpTT,' said Richard Heo, McDermott's senior vice-president for North,

Central and South America. 'To ensure project execution excellence, we

will leverage our One McDermott Way operating model to safely and

efficiently deliver the Cassia compression platform with the highest

quality.'

As part of an attempt to push local content, TOFCO was awarded the

contract for the fabrication of the Juniper jacket, topsides and piles in

September 2014.

But in the first half of 2015, La Brea residents disrupted the progress of the

job by blocking the roads to the yard, chaining up the front gate and

demanding jobs in a hostile manner. The fabrication yard also suffered a

delay in receiving a shipment of steel.

The job required the delivery of the Juniper topsides and jacket by

December 2016.

As a result of the delays caused by the labour disruption, in July 2015,

TOFCO was said to have decided to relocate the fabrication of the jacket

and piles to Gulf Marine Fabricators in Aransas Pass, Texas, while the

topside was completed by TOFCO.

That statement said: 'There has been a series of factors that have

occurred beyond TOFCO's control, the effects of which have had

significant impacts resulting in the project not progressing as planned.

'First gas delivery date remains imperative and TOFCO does not have the

capacity to recover the lost time.'

Cassia C is bpTT's third Cassia platform, handling gas coming from its

operations in the prolific Columbus basin. Cassia C will receive 1.2 billion

standard cubic feet per day (BSCFD) of hydrocarbon gas through new

piping from Cassia B across the bridge. The gas will be compressed in

three gas turbine driven compressors and returned to Cassia B for export.

Liquids from Cassia C and Cassia B will be combined and boosted for

export.

First gas from the Cassia C facility is expected in 3Q 2021.

<< Back to news headlines >>

Scotia falls by $0.31 Friday 25th January, 2019 – Trinidad Express Newspapers

OVERALL market activity resulted from trading in 15 securities of which

three advanced, seven declined and five traded firm.

The Composite Index declined by 0.76 points (0.06 per cent) to close at

1,305.14. The All T& T Index declined by 1.32 points (0.08 per cent) to close

at 1,705.25.

The Cross Listed Index declined by 0.03 points (0.02 per cent) to close at

122.30. The SME Index remained at 99.50.

Trading activity on the first-tier market registered a volume of 114,088

shares crossing the floor of the Exchange valued at $4,558,020.24.

ANSA McAL was the volume leader with 67,017 shares changing hands for

a value of $3,685,935, followed by TTNGL Ltd with a volume of 17,885

shares being traded for $521,081.80. Sagicor Financial Corporation

contributed 11,000 shares with a value of $97,900, while JMMB Group

added 4,784 shares valued at $8,558.26. West Indian Tobacco Company

registered the day's largest gain, increasing $0.14 to end the day at

$95.40. Conversely, Scotiabank registered the day's largest decline, falling

$0.31 to close at $63.60. CLICO Investment Fund was the only active

security on the mutual fund market, posting a volume of 24,455 shares

valued at $501,377.50.

CLICO Investment Fund advanced by $0.01 to end at $20.50. Calypso

Macro Index Fund remained at $14.

The second-tier market did not witness any activity. The SME market did

not witness any activity. CinemaOne remained at $9.95. The USD equity

market did not witness any activity. MPC Caribbean Clean Energy Fund

remained at $1.

<< Back to news headlines >>

Trellis Bay businesses could see increased economic activity with airport

expansion Friday 25th January, 2019 – BVI News Online

Chief Planner at the Town & Country Planning Department Greg Adams

has said the neighbouring business community in Trellis Bay will not be

required to relocate to facilitate the runway extension project at the TB

Lettsome International Airport. In contrast, those businesses could

experience spin-off benefits from the multimillion-dollar project, he said.

Adams said the economic activity in the area could increase based on

the projected volume of passengers expected to fly directly to the

territory from international hubs.

“There are the pros and the cons – the noise is one thing, but the potential

business is another thing. So there is a balance and a trade-off that we

have to measure not just with this project but any sort of economic

activity that comes under development,” Adams said.

“Does it (the project) limit some of the activity? You could argue that it

does. But a lot of the businesses that are there can still continue to

function. This alignment does not interfere with any property that is on

Trellis Bay. It doesn’t encroach on them, it doesn’t push them out, it

doesn’t take anybody’s property. This alignment goes out into the sea, so

it doesn’t take away anybody’s livelihood,” he added.

Project to affect harbour

On the downside, the Adams said the harbour in the area would be

affected to some extent.

He explained that this is because the extended runway would protrude

off the mouth of the harbour.

“But the harbour would be still viable for the boats to moor, and [will still

continue] some of the economic activities we have now. So it doesn’t

condemn the harbour outright,” he told BVI News following a recent

public meeting on the project.

The Chief Planner said designs for the project includes installing what are

known as hydraulic culverts under the runway. These culverts would

facilitate water movement in the area.

“It (the water) doesn’t just cut it off,” he noted.

Adams said while there are those who are for and against the project,

certain “critical decisions are yet to be made on the project”. These

decisions, Adams said, would strike a good balance between what is

important to supporters of the project and also that of detractors.

The project is estimated to cost some $250 million. Roughly $153 million of

that sum will be used to extend the runway from 4,645 feet to about 7,100

feet so larger aircraft can land in the territory. The remaining funds are

projected to go towards the development of the airport’s terminal

building.

The project involves recruiting investors to develop and operate the

airport for 20 to 30 years before returning control to the central

government. In October of last year, Premier Dr D Orlando Smith said

there would be progress on the project before he demits office.

<< Back to news headlines >>

Bureau of Standards developing strategic plan to improve standards Thursday 24th January, 2019 – Dominica News Online

Minister for Trade, Energy and Employment Hon. Ian Douglas has said the

government is implementing a series of reforms for the Dominica Bureau

of Standards, after Tropical Storm Erika and Hurricane Maria to enhance

quality, efficiency and transparency in services delivered by public sector

institutions.

He said these reforms are expected to lead to increased agricultural and

industrial investments, production and productivity, improve quantity and

quality of services and ultimately better the health status of the

population.

Douglas spoke at a consultation on “Creating Stronger Partnerships

Amongst Our Organisations” which was held at the Garraway Hotel

Conference Room on January 23rd, 2019.

He said a five-year strategic plan is in the process of development the aim

of which is to achieve the Bureau’s strategic objectives which “will bring

great benefit to the public and private sector as well as other important

factors.”

“This will enable the Bureau to provide services that meet the evolving

needs of the public and private sector and consumers to understand the

pertinent strategic issues and commitment required to obtain such

objectives,” Douglas explained.

He said the strategic plan will also help to fine tune resources and

management systems for maximum effectiveness and efficiency and “to

sustain the bureau’s ability to adapt to [a] rapidly changing environment

while continuing to carry out its core functions and provide services.”

“The Bureau’s standardization helps to enhance customer satisfaction and

compliance to legal requirements in the areas of human, animal, plant

safety, health and environmental suitability in building a resilient

Dominica,” the Trade Minister noted.

He described the Bureau of Standards as an important software to the

success of all economic activities and said it is more essential today than

at any other time in our nation’s history and development.

Meantime, Chairperson of the National Standards Council (NSC), Eliud

Williams, says the Bureau’s vision is to become Dominica’s leading

national standardization body.

“At the Bureau of Standards, we have a vision to be a leading national

standardization body in the region and as a small nation we have in fact

achieved many things on the world-wide stage and it is in fact possible

that Dominica can become a leading national standardization body,”

Willimas said.

He added, “We have a mission to improve the global competitiveness of

Dominica’s goods and services and enhance the overall quality of life of

the citizenry of Dominica through the promotion and maintenance of

standards and standards related activities.”

He pointed out that if Dominica is to be competitive on the world stage,

more needs to be done to set standards that are comparable to those

that exist else were.

Williams says the Bureau of Standards continues to ensure that the

production of items that are of good quality, and will provide for industrial

efficiency, development and promotion of public and industrial welfare.

<< Back to news headlines >>

Full CARICOM statement on Venezuela’s political crisis Friday 25th January, 2019 – Trinidad and Tobago Newsday

CARICOM has offered to “facilitate dialogue” among conflicting political

factions in Venezuela, while reiterating the region as a “Zone of Peace”

and emphasising its stance of non-interference and non-involvement in

the affairs of sovereign nations.

Regional Heads of Government met today in an emergency meeting to

discuss the unfurling political crisis in Venezuela. The heads acknowledged

tensions had been simmering for a long time, but urged that a resolution

could be found peacefully. Current chair, Prime Minister of St Kitts and

Nevis, Dr Timothy Harris, will also seek a meeting with the United Nations for

their assistance with dealing with the situation.

The following is the full statement issued tonight on the outcome of the

meeting.

STATEMENT BY THE CONFERENCE OF HEADS OF GOVERNMENT OF

CARICOM ON THE LATEST DEVELOPMENTS IN THE SITUATION IN THE

BOLIVARIAN REPUBLIC OF VENEZUELA

The following Heads of Government of the Caribbean Community

(CARICOM) - Antigua and Barbuda, Barbados, Belize, Dominica,

Jamaica, Montserrat, St. Kitts and Nevis, Saint Lucia, St. Vincent and the

Grenadines, Trinidad and Tobago; Foreign Ministers of Grenada and

Suriname, meeting by video-conference on 24 January 2019, issued the

following statement.

“Heads of Government are following closely the current unsatisfactory

situation in Bolivarian Republic of Venezuela, a neighbouring Caribbean

country. They expressed grave concern about the plight of the people of

Venezuela and the increasing volatility of the situation brought about by

recent developments which could lead to further violence, confrontation,

breakdown of law and order and greater suffering for the people of the

country.

Heads of Government reaffirmed their guiding principles of non-

interference and non-intervention in the affairs of states, respect for

sovereignty, adherence to the rule of law, and respect for human rights

and democracy.

Heads of Government reiterated that the long-standing political crisis,

which has been exacerbated by recent events, can only be resolved

peacefully through meaningful dialogue and diplomacy.

In this regard, Heads of Government offered their good offices to facilitate

dialogue among all parties to resolve the deepening crisis.

Reaffirming their commitment to the tenets of Article 2 (4) of the United

Nations Charter which calls for Members States to refrain from the threat

or the use of force and Article 21 of the Charter of the Organization of

American States which refers to territorial inviolability, the Heads of

Government emphasized the importance of the Caribbean remaining a

Zone of Peace.

Heads of Government called on external forces to refrain from doing

anything to destabilize the situation and underscored the need to step

back from the brink and called on all actors, internal and external, to

avoid actions which would escalate an already explosive situation to the

detriment of the people of Bolivarian Republic of Venezuela and which

could have far-reaching negative consequences for the wider region.

Heads of Government agreed that the Chairman of Conference, Dr the

Honourable Timothy Harris, Prime Minister of St. Kitts and Nevis would seek

an urgent meeting with the United Nations Secretary-General to request

the U.N’s assistance in resolving the issue.”

<< Back to news headlines >>

CDF signs US$1 million contribution agreement with India Thursday 24th January, 2019 – Caribbean News Now

The government of India and the CARICOM Development Fund (CDF)

signed a Contribution Agreement on Saturday, January 19, 2019, in

Paramaribo, Suriname, which provides for a grant allocation of US$1

million to the CDF’s capital fund.

India becomes the latest international development partner to have

established formal ties with the CDF during its second contribution and

subvention cycle, which runs from 2015 to 2020, and this comes on the

heels of the recent celebration of the tenth anniversary of the

establishment of the CDF, which became operational in November 2008.

These resources will support implementation of the CDF’s mandate to

provide financial and technical assistance to disadvantaged countries,

regions and sectors within CARICOM, in accordance with Article 158 of

the Revised Treaty of Chaguaramas establishing the Caribbean

Community, including the CARICOM Single Market and Economy (CSME).

The funds will be allocated towards programmes in CDF member

countries in one or more of four thematic areas, namely: renewable

energy and energy efficiency; sector-specific physical infrastructure to

facilitate private sector trade and investment and resilience-building;

concessional financing for SMEs; and human resource development.

The current member countries of the CDF are: Antigua and Barbuda,

Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St Kitts and

Nevis, St Lucia, St Vincent and the Grenadines, Suriname and Trinidad and

Tobago.

<< Back to news headlines >>

Japan's Asahi looks beyond Brexit Britain with Fuller's beer buy Friday 25th January, 2019 – Reuters

Japanese brewer Asahi Group is buying the British beer business of Fuller,

Smith & Turner, seizing the opportunity to further its overseas reach as

other companies wrestle with growing uncertainty over Brexit.

The purchase, worth 250 million pounds ($327 million) including debt, raises

Asahi’s British presence by adding London Pride ale, Frontier lager and

Cornish Orchards cider to its Asahi Super Dry, Peroni Nastro Azzurro and

Meantime brands.

Fuller’s shares jumped 21 percent to 1100 pence on Friday, their highest

level in 19 months, after Asahi’s move, which follows Japanese Prime

Minister Shinzo Abe voicing his concerns over the risk of a disorderly British

exit from the European Union in March and its impact on business.

Japanese firms have spent more than 46 billion pounds ($59 billion) in

Britain, encouraged by successive British governments since Margaret

Thatcher promising them a business-friendly base from which to trade

across Europe.

Asahi plans to continue operations at the Griffin Brewery in Chiswick,

London, where beer has been made since 1654, while a long-term supply

agreement and strategic alliance between the firms will allow Fuller’s

pubs to continue to sell its beer.

The global beer market, dominated by big players such as Anheuser-

Busch InBev and Heineken, has been challenged lately by the rise of

independent craft brews and shifting consumer tastes favouring wine and

spirits.

However, Mintel estimates that the value of Britain’s beer market rose by

3.9 percent to 18.5 billion pounds in 2018.

“This transaction is unexpected but a welcome one – realizing a

significant value for shareholders and exiting a challenging beer market,”

Liberum analyst Anna Barnfather said.

Barnfather said her target price of 1050 pence for Fuller’s had valued the

brewery division at around 125 million pounds.

Asahi confirmed that the purchase includes the freehold of the Chiswick

brewery.

Fuller’s said the disposal will enable it to focus on pubs and hotels, which

generate 87 percent of its operating profit, and provide capital to invest

organically and via acquisitions.

“Fuller’s has for years had to navigate very high taxes, a decline in the

nation’s drinking and austerity which has hit pub attendance,” Jonny

Forsyth, Associate Director, Food & Drink at Mintel, told Reuters, adding

that the brewer’s traditional ale faced competition from the rise of edgier

London craft beers.

GLOBAL LONDON PRIDE?

Asahi said the addition of the Fuller’s brands strengthened its position as a

leader in premium beer, and that it would use its global footprint to build

them across the world.

“Brexit could actually play to Asahi’s advantage because it is putting

pressure on ... the pound which makes exports cheaper,” Forsyth said,

adding that Asahi would also have the option of moving production

overseas to overcome any tariffs.

Forsyth said the Fuller’s deal, which is expected to close in the first half of

2019, could also kick start a year of consolidation, driven by AB InBev’s

competitors trying to close the gap between themselves and the world’s

top brewer.

Friday’s sale price represents a multiple of 23.6 times core earnings of 10.6

million pounds for the year ended March and Fuller’s said it would return

between 55 million pounds and 69 million pounds of the proceeds to its

investors.

Rothschild & Co is acting as sponsor and sole financial adviser to Fuller on

the proposed sale, while Nomura advised Asahi Europe.

($1 = 0.7642 pounds)

<< Back to news headlines >>

Nikkei climbs to 5-week high, aided by chip-related firms, Apple suppliers Friday 25th January, 2019 – Reuters

Japan’s Nikkei reached a five-week high on Friday as chip-related firms

tracked sharp rises by U.S. counterparts, while some investors awaited

major events next week for direction.

The Nikkei share average rose 1.0 percent to 20,773.56, the highest closing

level since Dec. 19. The benchmark index gained 0.5 percent for the

week.

Investors also sought buying opportunities in small-to-mid sized stocks, with

the Mothers market rising 1.7 percent. It was the index’s third straight gain

of more than 1 percent.

Chip-related stocks, which rallied on Thursday after investors took heart

from Texas Instruments’ and Xilinx Inc’s earnings unveiled after

Wednesday’s U.S. market close, continued to soar as the results were

welcomed on Wall Street.

“Investors who were already excited about the U.S. chip sector’s earnings

the day before got even more reassured after they saw how their stocks

moved,” said Shogo Maekawa, a global market strategist at JPMorgan

Asset Management.

Maekawa added that a recovery in the global cyclical chip sector is

taken as a silver-lining amid concern about a global economic slowdown.

He said that investors will be focus on events next week, especially U.S.-

China trade talks

U.S. Commerce Secretary Wilbur Ross said on Thursday that the United

States and China are “miles and miles” from resolving trade issues but

there is a fair chance the two countries will get a deal.

However, U.S. Treasury Secretary Steven Mnuchin was somewhat more

upbeat, saying the United States and China were “making a lot of

progress” in talks, but he did not elaborate.

JP Morgan’s Maekawa said “The market is cautious especially after

comments from Ross.”

Silicon products maker Sumco Corp jumped 12 percent, Tokyo Electron

rallied 4.7 percent, Advantest Corp surged 4.9 percent, while Shin-Estu

Chemical soared 4.5 percent.

Traders said that the gains in the chip sector lifted sentiment in shares of

Apple suppliers as well, with Murata Manufacturing surging 6.1 percent

and Alps Alpine adding 5.2 percent.

The Philadelphia SE Semiconductor Index, under pressure in recent months

after Apple warned of waning smartphone demand, saw its biggest one-

day percentage gain since Dec. 26, advancing 5.7 percent.

Nissan Motor Co rose 2.5 percent after Renault appointed Michelin boss

Jean-Dominique Senard as its new chairman, following the resignation of

Carlos Ghosn in the wake of his arrest, which has rocked the French

carmaker and its alliance with Nissan.

The broader Topix gained 0.9 percent to 1,566.10.

<< Back to news headlines >>

Indian ministers trumpet jobs growth after study showed 11 million jobs lost Thursday 24th January, 2019 – Reuters

Indian government ministers facing an election in coming months

launched a social media campaign on Thursday trumpeting successes in

creating jobs just weeks after a leading think tank reported 11 million jobs

were lost in the country last year.

The independent Centre for Monitoring Indian Economy (CMIE) had

estimated that 83 percent of the job losses occurred in rural areas, where

two-thirds of the population lives, and its study put unemployment at a 15-

month high in December.

The dismal findings would be damaging for Prime Minister Narendra Modi,

whose Hindu nationalist Bharatiya Janata Party (BJP) swept to power in

2014 promising an economy that would grow fast enough to create jobs

for the millions of young Indians joining the labour force each year.

Girding for a general election that must be held by May, members of

Modi’s cabinet seized on data from a private recruitment agency to

present a rosier picture of the job market.

“Proving pessimists wrong, India has seen growth in hiring trend under the

leadership of Shri Narendra Modi,” cabinet minister Harsh Vardhan said on

social network Twitter.

He was just one of several ministers to cite data from jobs portal

Naukri.com, which showed hiring activity in December was 8 percent

higher than a year ago, based job listings added to the site.

According to Naukri, the information technology and software industry

recorded the most hiring, along with construction and engineering -

sectors that are all largely concentrated in urban areas.

Reuters telephoned and e-mailed an official of the portal’s owner, Info

Edge (India) Ltd for comment, but received no response.

A senior leader from the main opposition Congress party dismissed the

hiring trends publicized by the BJP as “another jumla”, using a colloquial

word meaning “false promise”.

“There are some signs of investment revival in certain sectors, and

therefore it’s entirely possible that demand for jobs in those sectors will be

rising,” said Amitabh Dubey, a political analyst with consultancy TS

Lombard.

“The important point politically is that it’s the lower-end jobs that matter,

because that is where the job destruction had happened since

demonetization,” he said, referring to the government’s overnight removal

of high value bank notes from circulation in late 2016 in a bid to curtail the

shadow economy and criminal activity.

“It’s not clear that Naukri.com would be picking up what’s happening at

that level,” Dubey said.

<< Back to news headlines >>

U.S. voices concern as India's e-commerce restrictions hit Amazon,

Walmart Thursday 24th January, 2019 – Reuters

The United States government is concerned about India’s revised e-

commerce regulations and has told officials in New Delhi the policy will

hinder the Indian investment plans of Amazon.com and Walmart Inc,

three sources familiar with the talks told Reuters.

The tussle marks the latest in a number of U.S. protests over Indian

government policies which impact American companies and comes at a

time when the two countries are trying to iron out other trade irritants. In

2017, the U.S. lodged a written protest against India’s decision to cap

medical device prices, which upset American companies.

India’s e-commerce investment rules, which kick in from Feb. 1, ban

companies from selling products via firms in which they have an equity

interest and also bar them from making deals with sellers to sell exclusively

on their platforms.

The policy has dealt a blow to Walmart, which just last year invested $16

billion in buying 77 percent of India’s Flipkart, and Amazon, as it would

force them to change their business structures in the country and raise

their operational costs.

“There is a very strong undercurrent as to how this should be made a

bilateral issue,” said a Washington-based industry source aware of the

companies’ thinking.

“This has gone way beyond being a local (India) tussle.”

A U.S. government official earlier this month told Indian officials to protect

Walmart and Flipkart’s investments in the country, an Indian trade ministry

official told Reuters.

The U.S. government cited “good relations” between the two countries

and stressed that American companies should be given concessions in

the larger interest of bilateral trade, but India gave a “non-committal”

response, the source added.

But Indian Prime Minister Narendra Modi is unlikely to delay the revised

rules or amend them in any meaningful way as he is seeking the support

of the tens of millions of small retailers and traders in India ahead of a

general election that must be held by May. The small firms see Walmart

and Amazon as a threat to their businesses.

An Indian industry source said Walmart, Amazon and lobbying groups

were coordinating efforts with the Office of the United States Trade

Representative (USTR) and the local embassy to express their discontent

about the policy.

The USTR did not respond to a request for comment. The U.S. Embassy in

New Delhi, and Indian trade ministry spokeswoman Monideepa

Mukherjee, declined to comment.

Asked about the Indian policy’s implications, Walmart spokesman Greg

Hitt said: “We certainly, as you would expect, have engaged the (United

States) administration on this issue.” He declined to share further details.

Amazon India said it was committed to complying with local laws but it

needed “adequate time to understand” the policy.

GLOBAL VS LOCAL

Amazon and Walmart have both made bold bets to tap India’s booming

e-commerce market, which Morgan Stanley had estimated, before the

latest government move would grow 30 percent a year to $200 billion in

the 10 years up to 2027.

The companies have targeted a growing population of tech-savvy

shoppers in India, luring them with deep discounts on everything from

dishwashers to smartphones.

India’s small traders and shopkeepers had for years complained that e-

commerce companies were engaging in predatory pricing and hurting

the businesses of brick-and-mortar retailers.

They alleged that the online retailers used their control over inventory from

their affiliates to create an unfair marketplace that allowed them to sell

some products at lower prices. Such arrangements would be barred

under the new policy.

“We are disappointed more than surprised. It makes it harder to plan

things,” a U.S.-based Walmart source told Reuters.

“It is a serious issue. We are doing our best to work with Indian authorities

and trying to explain why this is bad for business.”

The Confederation of All India Traders, which has supported tougher

scrutiny of large e-commerce players, said the companies were acting

“desperate” by pressurizing the Indian government.

“Any deferment or change (in the policy) will adversely affect millions of

small businesses,” said the group’s secretary general, Praveen

Khandelwal.

POLITICS, DEADLINE RISK

Both Walmart-owned Flipkart and Amazon have requested the

government to delay implementation of the policy, but India is unlikely to

relent.

Indian officials have told Reuters no relief was likely as the policy was seen

helping the small trader community, who form a critical voter base for

Modi.

“The idea is just to win over the trading community ahead of elections

and on that point the government will not budge from the deadline,” a

second Indian trade ministry official said.

At stake are big ticket investments. When Walmart bought Flipkart last

year, it said the decision underscored its “long-term commitment to

India”.

Amazon has committed to investing $5.5 billion in the country and Modi

has in recent years met its founder Jeff Bezos multiple times. In 2017, Bezos

said he was “excited to keep investing and growing” in the country.

That investment climate has turned sour with sudden policy changes.

Prasanto Roy, a New Delhi-based consultant who closely tracks India’s

technology policy landscape, said the government should provide stable

policies to attract investment.

“You can’t change policies overnight without consultation and tell

companies who have invested billions to go fly a kite,” Roy said.

<< Back to news headlines >>

Smartphone makers seek export incentives to grow India production Friday 25th January, 2019 – Reuters

Smartphone makers in India are calling for export credits on devices and

tariff cuts on machinery imports as part of measures they say will make

Asia’s third-biggest economy a global smartphone manufacturing hub.

The Indian Cellular and Electronics Association (ICEA), whose members

include some of the industry’s biggest names including Apple Inc, made

the proposals in a 174-page document reviewed by Reuters and

submitted to the government ahead of its annual budget announcement

next week.

“As the country is nearing to achieve saturation point... without an export

take off manufacturing growth cannot be sustained and accelerated,”

the ICEA said in the document.

The ICEA confirmed it submitted the document. The finance and

technology ministries did not respond to requests for comment.

The government’s ‘Make in India’ campaign beginning 2014 and gradual

tax increases on imports of mobile phone components have spurred the

creation of more than 260 manufacturing units in the country and over

600,000 jobs, ICEA said.

That has helped India become the second-biggest producer of mobile

phones after China, and prompted foreign smartphone makers such as

Oppo and Samsung Electronics Co Ltd as well as contract manufacturers

like Wistron Corp and Hon Hai Precision Industry Co Ltd (Foxconn) to ramp

up production for phones primarily sold domestically.

The industry is now set for a further boost under a broader National Policy

on Electronics currently in the works. Yet at the same time, the

government also appears to be raising obstacles.

Next month, it will begin taxing imports of touch panels two months earlier

than initially planned, sending mixed messages to handset manufacturers

as setting up the means to assemble panels locally is a significant

expense.

“Consistency in policy is important for any industry to mature,” said

Navkendar Singh, associate research director at consultancy International

Data Corp. “Back-and-forth in policy hurts investor sentiment and the

country’s positioning as a destination to manufacture.”

In its document, ICEA proposed the government raise the export credit

received on the value of mobile phone shipments to 8 percent from 4

percent. It also called for the introduction of a 5 percent export credit on

services such as mobile apps.

Other proposals from the body - which also counts Huawei Technologies

Co Ltd, Oppo and Foxconn among its members - include lower import

taxes on capital goods such as machinery and ensuring manufacturers

have access to low-cost capital.

“The next phase (of manufacturing) can now probably be driven by

export incentives,” said Vikas Agarwal, India head of Chinese smartphone

maker OnePlus, which is not an ICEA member.

“The eventual goal is to establish India as the preferred destination - and

not just driven by duties, but by the opportunities in the Indian market.”

TOUCH PANEL ASSEMBLY

The ICEA, formerly the Indian Cellular Association, also called on the

government to re-consider levying duties on new components, and allow

for the local manufacture of parts already under the import tax regime to

develop in a timely manner.

The import tariff on touch panels has been of particular concern to

manufacturers including Samsung.

The South Korean firm has written to the federal government saying it

cannot make two of its high-end models in India because of the tariff, the

Economic Times reported this week.

A person familiar with the matter told Reuters Samsung had written to the

government, and that the firm was investing in a touch panel assembly

plant in India which would ready by the end of March 2020.

Samsung declined to comment.

The government aims to export $9 billion worth of mobile phones in the

year ending March 2020 from just $100 million in 2017, the ICEA said in a

previous report.

“Despite some improvement in exports since 2015, India still has a long

way to become an export hub,” it said.

<< Back to news headlines >>

Global shipping rates slump in latest sign of economic slowdown Friday 25th January, 2019 – Reuters

Freight rates for dry-bulk and container ships, carriers of most of the

world’s raw materials and finished goods, have plunged over the last six

months in the latest sign the global economy is slowing significantly.

The Baltic Dry Index, measure of ship transport costs for materials like iron

ore and coal, has fallen by 47 percent since mid-2018, when a trade

dispute between the United States and China resulted in the world’s two

biggest economies slapping import tariffs on each other’s goods.

Dry-bulk commodities are taken as a leading economic indicator,

because they are used in core industrial sectors like steelmaking and

power generation, and analysts say the recent declines in activity point to

a serious economic slowdown.

"Signs that the U.S. and China remain well apart in trade talks continued to

weigh on sentiment in commodity markets,” ANZ bank said in a note on

Friday.

This was after U.S. Commerce Secretary Wilbur Ross said on Thursday the

United States and China were “miles and miles” from resolving their issues.

“The global economy and dry-bulk shipping market are showing us very

real signs of distress,” said Jeffrey Landsberg, managing director of

commodity consultancy Commodore Research.

“While dry-bulk rates often face at least some pressure during the early

stages of a year, the magnitude of the declines being seen lately have

been very rare,” he said.

The Baltic index has lost a quarter of its value since the start of the year,

and dry-bulk is not the only shipping market under pressure.

The Harpex Shipping Index, which tracks container rates, has dropped by

30 percent since June 2018.

As a measure of the demand for shipping manufactured goods from

producers to consumers, container rates are also seen as a leading

economic indicator.

Their slump underscores weakening manufacturing data from Asia,

Europe and North America.

“Slowing global economic growth, the unresolved U.S.-China trade

conflict, the U.S. government shutdown, and Brexit drama are all sources

of uncertainty dragging at sentiment,” said Hussein Sayed, chief market

strategist at futures brokerage FXTM.

In the euro zone, a survey published on Thursday showed that business

growth nearly stalled out at the start of 2019 as trade tensions and political

woes meant incoming new work fell for the first time in over four years.

Asian industrial powerhouse Japan posted similarly weak manufacturing

data in its own survey this week.

In China, the National Development and Reform Commission (NDRC) this

week warned the downward pressure on the economy would impact its

job market as falling factory orders point to a drop in activity in coming

months.

The United States has so far been in a better shape than other leading

economies, but even there, manufacturing indices have been reflecting

weakness since late 2018.

<< Back to news headlines >>

Global stocks gain on earnings, euro rebounds after dovish ECB Thursday 24th January, 2019 – Reuters

Global stocks rose on Friday, as strong earnings helped to underpin

investor sentiment in the face of growing signs that the global economy is

slowing and a still unresolved trade dispute between the United States

and China.

The euro rebounded against the dollar after falling to its lowest in six weeks

following Thursday’s European Central Bank meeting.

European markets opened firmer, with the automakers and tech sector

indices rising 1.5 percent and 1 percent respectively. The pan-European

STOXX index hit its highest since Dec. 4, last up 0.7 percent on the day.

[.EU]

The gains came as stocks rose overnight in Asia and the United States on

the back of strong earnings from U.S. tech firms.

MSCI’s All-Country World Index .MIWD00000PUS, which tracks shares in 47

countries, was up 0.3 percent on the day. But the gauge was set to break

a four-week streak of gains as weak economic data and cautious

soundings from central banks pulled the index half a percent down on the

week.

Data at the start of the week showed China’s economy grew at its slowest

in 28 years in 2018, while purchasing manager indexes in Germany and

the euro zone indicated stagnation in the bloc. On Thursday, the

European Central Bank alluded to downside risks to growth for the first

time in its statement since April 2017, while Germany cut its economic

growth forecast for 2019.

SLOWDOWN

Sombre news continued to trickle in on Friday, with German business

morale falling for the fifth month in a row in January according to the Ifo

business climate index.

According to the latest Reuters polls of hundreds of economists from

around the world, a synchronized global economic slowdown is

underway and any escalation in the U.S.-China trade war would trigger a

sharper downturn.

Sunil Krishnan, head of multi-asset funds at Aviva Investors said investors

were taking some relief from the responses of policymakers.

“What they (investors) were not seeing last year was that activity was

slowing but there was no reaction from central banks. They are seeing

that now - we saw that from the ECB and the Fed has said it’s not on a

pre-set path.”

That along with a rebound from poor liquidity in December explains why

the risk tone in markets has been a bit better, he said.

In a note to clients, UBS Global Wealth Management’s chief investment

officer Mark Haefele said that rhetoric on U.S.-China trade has become

more positive, and that Beijing has taken steps to stimulate its economy.

“While economic and earnings growth is slowing, we believe it is unlikely

that growth will drop far below trend,” he said.

“At the same time, there are reasons to be cautious about policymakers’

ability to follow through on their rhetoric.”

Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31

for the next round of trade negotiations with Washington.

The two sides are “miles and miles” from resolving trade issues but there is

a fair chance they will get a deal, U.S. Commerce Secretary Wilbur Ross

said on Thursday.

In currencies, the dollar fell 0.3 percent against a basket of peers to

96.422. .DXY

The euro EUR= was up 0.4 percent at $1.13490, bouncing back from a six-

week low hit in the wake of ECB President Mario Draghi's downbeat

comments on Thursday.

The ECB’s post-meeting statement for the first time since April 2017 alluded

to downside risks to growth.

The British pound was up 0.3 percent at $1.3076 GBP=D3 after brushing a

two-month high of $1.3140, lifted after The Sun newspaper reported on

Thursday that Northern Ireland's Democratic Unionist Party has privately

decided to back May's Brexit deal next week if it includes a clear time limit

to the Irish backstop. [GBP/]

The benchmark 10-year U.S. Treasury note yield US10YT=RR was slightly

higher at 2.729 percent after dropping to a one-week low as pessimism

over global growth supported safe-haven government debt. [US/]

Fresh data on surging U.S. fuel stocks and worries about U.S.-China trade

talks weighed on oil prices, after they rallied on the threat of U.S. sanctions

against Venezuela. [O/R]

U.S. crude oil futures CLc1 were down 0.3 percent at $60.90 per barrel

after gaining 1 percent on Thursday.

<< Back to news headlines >>

Oil edges down as U.S. supplies, economic worries eclipse Venezuela

turmoil Thursday 24th January, 2019 – Reuters

Oil prices fell slightly on Friday as concerns about U.S.-China trade talks

and fresh data on surging U.S. fuel stocks sent a chill through markets.

The bearish sentiment appeared to outweigh the possibility that turmoil in

Venezuela may lead to tighter global supply if the United States imposes

sanctions on Venezuelan exports.

Brent crude oil futures were at $60.86 a barrel at 1215 GMT, down 23

cents, or 0.38 percent. Brent has shed about 2.9 percent since the start of

trade on Monday and is on track to post its first week of losses in four

weeks.

U.S. West Texas Intermediate (WTI) crude futures were trading at $53.06

per barrel, down 7 cents, or 0.13 percent.

Amid violent street protests, Venezuela’s opposition leader Juan Guaido

declared himself interim president this week, winning recognition from

Washington and parts of Latin America.

Nicolas Maduro, the country’s leader since 2013, responded by breaking

relations with the United States.

RBC Europe predicted that sanctions could nearly double projected

output shortfalls from the troubled exporter.

“Venezuelan production will decline by an additional 300,000-500,000

barrels per day (bpd) this year but such punitive measures could expand

that outage by several hundred thousand barrels.”

Global oil markets are still well supplied, however, thanks in part to a spike

in U.S. output.

Record U.S. production would likely offset any short-term disruptions to

Venezuelan supply due to possible U.S. sanctions, Britain’s Barclays said in

a note. The bank cut its 2019 average Brent forecast to $70 a barrel, from

$72 previously.

The output surge has swollen U.S. fuel stocks, and crude inventories rose by

8 million barrels last week, according to official data released on

Thursday.

Analysts have predicted a more balanced market due to a production

cut pact by the Organization of Petroleum Exporting Countries (OPEC)

and its allies including Russia, as well as potential export disruptions in

Venezuela, Iran and Libya.

“While the current state of affairs is price constructive for oil, the market is

hesitant when it comes to the global outlook,” Harry Tchilinguirian, global

head of commodity markets strategy at BNP Paribas, told the Reuters

Global Oil Forum.

Demand may start to stutter because of a global economic slowdown,

which is likely to dent fuel consumption.

A trade dispute between the United States and China and tightening

financial conditions around the world have hurt manufacturing activity in

most economies and dragged China’s growth last year to the weakest in

nearly 30 years.

According to Reuters polls of hundreds of economists worldwide, a

synchronized global economic slowdown is underway and would deepen

if the U.S.-China trade war escalated.

<< Back to news headlines >>