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▪ Dominica AID Bank removed from rating watch and downgraded to CariBB-

▪ Bourse Securities Limited’s rating reaffirmed at CariA-

▪ Beacon Insurance Company Limited’s rating reaffirmed at CariA-

▪ PLIPDECO’s rating reaffirmed at CariA+

▪ National Investment Fund Holding Company Limited’s rating assigned at CariAA

▪ Eastern Caribbean Home Mortgage Bank’s rating reaffirmed at CariBBB+

▪ Development Bank of Jamaica Limited’s rating reaffirmed at CariBBB+ ▪ Rhand Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Government of Barbados’ rating downgraded to CariD

▪ Massy Holdings Limited’s rating reaffirmed at CariAA+

▪ Venture Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Eastern Credit Union’s rating downgraded to CariBBB-

▪ Government of the British Virgin Islands’ rating reaffirmed at CariAA-

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Best Practice Financial Modeling (Intermediate) 27th & 28th September, 2018 Jamaica

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Latest Rating Actions by CariCRIS

• Demonstrate to members its investing capabilities

• Employ it as a marketing tool to attract new members

• Demonstrate to members the institution’s financial strength

and soundness

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REGIONAL

Trinidad and Tobago

Grace Kennedy closes lower at $2.80

Overall market activity resulted from trading in 17 securities of which four

advanced, ten declined and three traded firm.

Unilever Caribbean completes sale of spreads business

Unilever has completed the sale of its baking, cooking and spreads

business to global investment firm Kohlberg Kravis Roberts LP (KKR) for

US$8.1 billion on a cash-free, debt-free basis.

SFCP delisted from the TTSE

Sagicor Financial Corporation 6.5 per cent US$1 Convertible Redeemable

Preference (SFCP) was de-listed from the T&T Stock Exchange (TTSE)

effective yesterday.

Barbados

Barbados-New Zealand cooperation coming on agriculture

Prime Minister Mia Mottley has identified agriculture and health care as

areas in which she would like Barbados to “do some serious work” with

New Zealand.

Barbadian Manufacturer Feels Effects of Government’s Default on Foreign

Debt Payments

Caribbean LED Lighting Inc, one of Barbados’ fastest growing

manufacturers, has become one of the latest casualties of Government’s

decision to default on its foreign debt payments.

Major upgrade

Five jet bridges, a rehabilitated runway, and an upgrade to several

departure gates, are among Government’s major expansion plan for the

Grantley Adams International Airport (GAIA).

$24.9 million hole

The Government programme which provides loans to eligible Barbadians

pursuing further studies is owed nearly $25 million by students who have

not been meeting their commitments, according to the latest Auditor

General’s Report.

Jamaica

500 more to be employed in local government ministry's summer

programme

The Ministry of Local Government and Community Development says it will

increase the number of participants in its 2018 Youth Summer Employment

Programme by 500, which is to be launched on Thursday, August 9.

Guyana

Over $25M given in presidential grants – land titles presented as 12th NTC

wraps up

INDIGENOUS Peoples’ Affairs Minister Sydney Allicock brought the curtains

down on the 12thNational Toshaos Council Conference, with the

distribution of several land titles and presidential grants to indigenous

communities.

The Bahamas

Vat Hike Sparks 10% Sales Slump

A top food store chain yesterday revealed sales have fallen 10 per cent

since the VAT rate hike, with this and other uncertainties forcing it to

postpone further expansion plans.

Bahamas Trade Deficit Over $3bn

The Bahamas' annual trade deficit expanded by 19 percent to over $3bn

in 2017, as this nation's merchandise import bill expanded by more than

$500m.

Antigua and Barbuda

Farmers ready to take action against proposed agri project

Gameal Joyce, executive member of the National Coalition of Farmers

(NCF), is adamant that the time for diplomacy has ended and action

should be taken against the government’s proposed Chinese agricultural

project.

British Virgin Islands

Agriculture suffers $13M in losses; help arrives

The government is planning to pump $300,000 into the agricultural sector

in response to last year’s hurricanes, which caused local agriculture

workers to suffer collective losses of roughly $13 million.

FIA: Money laundering prevalent, 530 suspicious activity reports in 2016

Five hundred and thirty Suspicious Activity Reports (SAR) were made to the

BVI Financial Investigation Agency (FIA) back in 2016.

Labour to get major overhaul, modernized processes

The Labour Department is expected to undergo a major overhaul, Labour

Minister Dr Kedrick Pickering has said.

Former BVIPA workers behind cruise pier audit delay

Former BVI Ports Authority employees with intimate knowledge of the

cruise pier project are behind the delay of the audit being undertaken on

the project, says Premier Dr D Orlando Smith.

Costa Rica

Costa Rica Credit Card Debt Doubles

The balance of credit card debt doubled in the last eight years, going

from US$1.005 billion in April 2010 to US$2.095 billion in April 2018, the

Ministry of Economy, Industry and Commerce (MEIC) has revealed, by

means of a report prepared by the Directorate of Economic and Market

Research.

Walmart Announces Purchase of Perimercados, Super Compro, and

Saretto

Pending approval from regulating authorities, Walmart announced

Thursday the purchase Perimercados, Super Compro and Saretto stores

from Grupo Empresarial de Supermercados (Gessa).

Costa Rican Workers Can Be Legally Paid in Cryptocurrency

Employees in Costa Rica can receive part of their salary in cryptocurrency

and that wouldn’t be against the law. Certain provisions in the national

legislation allow companies to pay their workers not only with fiat money

but also with goods, and some legal experts believe cryptos can fit in this

category. Besides, Costa Rican laws provide for the use of commonly

accepted assets as means of payment.

St. Kitts and Nevis

St. Kitts and Nevis Launches Nation-Branding Magazine

The Government of St. Kitts and Nevis through the Citizenship by

Investment Unit (CIU) has today launched a national magazine aimed at

communicating the country’s key brand differentiators to global citizens

and investors looking for a potential second home.

St. Lucia

St Lucia government borrows from National Insurance fund to repay

maturing bonds

In a letter dated July 3, 2018, the government of Saint Lucia has asked for

“a bridging finance facility with the National Insurance Corporation in [sic]

ranging from EC$70-100 million” for the purpose of repaying two bonds

maturing July 30 and 31 totalling EC$117 million on the Regional

Government Securities Market.

Haiti

Strong fall in employment in Industries and Construction

The Employment Index (IE) in the second quarter of the fiscal year

(January to March 2018), unlike the + 12.3% year-on-year increase,

recorded in the first fiscal quarter (October to December 2017) for an

index from 107.3, the EI in the second quarter of 2018 showed a moderate

increase of + 2.6% for an index of 99.2. This slight positive change is due to

the growth of the three institutional sectors: Public, Private and NGOs /

International Organization (IO).

Other Regional

NCB seeks investment projects in the Caribbean

The island's largest and most profitable financial conglomerate, the

National Commercial Bank (NCB), with its imprint in parts of the Caribbean

- has expansion in sight as it seeks to invest in new and existing projects.

Other Regional Continued

Windrush compensation scheme launched after meeting with Home

Secretary

On Wednesday, the UK Home Secretary, Sajid Javid, met with CARICOM

High Commissioners to provide an update on Windrush matters, including

the compensation scheme that was launched in Parliament by him the

following day through a ministerial statement.

INTERNATIONAL

United States

Stock futures flat as caution reigns in earnings-heavy week

U.S. stock index futures were flat on Monday as investors assessed the

impact of an escalating trade conflict between the United States and

China on corporate results in an earnings-heavy week.

United Kingdom

Sterling falls to three-week low versus resurgent yen

Sterling fell to a three-week low against a resurgent yen on Monday after

the Japanese currency received a boost from reports that the central

bank was contemplating scaling back its stimulus.

China

China says it won't devalue currency to bolster exports

China said on Monday the value of its currency is driven by market forces

and that it has no intention to devalue the yuan to help exports, after

Washington said it was monitoring the currency’s weakness amid the

escalating bilateral trade row.

China eyes more vigorous fiscal policy short of strong stimulus

China will adopt a more vigorous fiscal policy to help tackle external

uncertainties without resorting to strong policy stimulus, state radio said on

Monday, citing the cabinet.

Japan

BoJ easing talk sends bond yields up

Signs that the Bank of Japan (BoJ) might scale back its monetary stimulus

faster than expected sent tremors through bond markets on Monday,

while European stocks slipped as threats of further U.S. tariffs on China

drained risk appetite.

Japanese yen trims early gains as BOJ policy change eyed

The yen trimmed early gains on Monday as traders consolidated positions

after reports the central bank was debating moves to scale back its

massive monetary stimulus ignited a brief rally in the Japanese currency.

Nikkei drops to 10-day low on yen's rally; Fast Retailing hit

Japan’s Nikkei fell to a 10-day low on Monday, with exporters driven down

by the yen’s rally and index heavyweight Fast Retailing hit by speculation

the Bank of Japan could wind back its exchange-traded fund purchases.

Global

Oil higher on Middle East, North Sea supply worries

Oil prices rose on Monday on worries over supply after tensions worsened

between Iran and the United States, while some offshore workers began a

24-hour strike on three oil and gas platforms in the British North Sea.

German 10-year bond yield hits one-month high after Japanese yields

jump

Germany’s 10-year bond yield rose to its highest level in just over a month

on Monday, following a jump in Japanese government bond yields on

reports that the Bank of Japan was debating moves to scale back its

massive monetary stimulus.

Bond yields rise worldwide on BoJ easing talk, stocks slip

Signs that the Bank of Japan (BoJ) might scale back its monetary stimulus

faster than expected sent tremors through bond markets on Monday,

while European stocks and U.S. futures slipped as threats of further U.S.

tariffs on China drained risk appetite.

Over $25M given in presidential grants – land titles presented as 12th NTC

wraps up Monday 23rd July, 2018 – Guyana Chronicle

INDIGENOUS Peoples’ Affairs Minister Sydney Allicock brought the curtains

down on the 12thNational Toshaos Council Conference, with the

distribution of several land titles and presidential grants to indigenous

communities.

Receiving land titles were Tuseneng Village, Kato and Karisparu in Region

Eight; Batavia, Region Seven; and Sawariwau Region Nine.

The toshaos and senior village councillors were called upon by Minister

Allicock to make good use of the land titles and presidential grants to

ensure their communities progress.

He charged the leaders to build bridges and relationships with their fellow

indigenous brothers and sisters, as they cannot afford to be divided in the

quest for development of their communities.

<< Back to news headlines >>

Vat Hike Sparks 10% Sales Slump Friday 20th July, 2018 – Tribune 242

A top food store chain yesterday revealed sales have fallen 10 per cent

since the VAT rate hike, with this and other uncertainties forcing it to

postpone further expansion plans.

Gavin Watchorn, AML Foods' chief executive, told Tribune Business that a

combination of the VAT increase, the Bahamas' planned accession to full

World Trade Organisation (WTO) membership and related taxation

reforms, together with rising energy prices had prompted its Board of

Directors to pause construction of new stores.

The BISX-listed food retail and franchise group, which operates the

Solomon's and Cost Right brands, still intends to pursue real estate

acquisitions for sites that "make sense" as new stores but will not 'go

vertical' until it sees how these developments impact consumers and the

wider economy.

Recalling how group-wide sales plummeted 15 percent in the first four to

six weeks after VAT was introduced in 2015, Mr Watchorn estimated it

would take between two to three months for consumer spending to

"normalise" following the move to a 12 percent rate.

The AML chief added that while store transaction volumes were

unchanged, their value had declined, although he warned against

"making rushed decisions" given that the new VAT rate has been in effect

for just under three weeks.

"I think Bahamian consumers are going to need some time to adjust," Mr

Watchorn told Tribune Business. "When VAT was introduced in January

2015 we saw about a 15 percent decrease in sales for maybe the first four

to six weeks.

"Before the latest increase we some great weeks. One store was up 50

percent the week before, but they're [sales] down about 10 percent since

we went to 12 percent. What we're not seeing is less transactions but less

spend. What we're seeing is not what we want to see, but it's not

unexpected."

Based on AML Foods' annual sales of $163.057 million for the year to end-

April 2018, the post-VAT hike's 10 percent sales decline stands to cost the

BISX-listed group some $16.3 million annually on its top-line. Yet it is unclear

with this trend, and the magnitude of the fall, will hold for the long-term.

Mr Watchorn said the sales peak immediately prior to the 12 percent VAT

rate's implementation, as Bahamians stocked up on groceries and other

products to beat the increase, meant it was hard to determine when -

and where - consumer spending will level off or 'bottom out'.

"It will take some time," he emphasised. "We have to see what happens

with the 'zero rating' of breadbasket items that will provide some relief to

consumers. We have to wait a couple of months before it levels out and

we see what the normalised level of consumer spending will be.

"We've got to see what it levels out at. We don't want to want to be

making rushed decisions in the first weeks, especially as the last week in

June was so strong. We have to be lean as always, so we're looking at

where we can reduce costs and save money. It will be three months,

maybe a little more, before we see how consumer spending fares."

AML Foods' data provides one of the first insights into the VAT hike's

impact on the Bahamian retail sector and consumer demand. It will likely

fuel existing concerns about the increased taxation's impact on jobs and

the wider economy, given that the Government is forecasting the rate

increase will suck an extra $400 million from consumers' pockets this fiscal

year.

In the meantime, Mr Watchorn said AML Foods had decided to slow

down its store expansion strategy given that it - and the wider business

community - needed to "digest" how VAT will impact consumer spending

and a WTO accession "coming towards us next year".

"We are going to continue to look for sites, and if a site makes sense and

ideal real estate location, we will look at that," he told Tribune Business.

"But in terms of converting 'green field' into new stores, as a Board we

have decided to wait until we see the impact of all these things.

"We have some active discussions going on with parties on different sites.

To buy it is one thing, and you're buying for the long-term, but there's too

much uncertainty for us to be making a commitment to build large stores

right now."

Besides the VAT increase and WTO accession, Mr Watchorn cited rising

energy prices as another issue that had given AML Foods pause for

thought. Besides global oil prices, he cited the additional charge that will

ultimately be added to consumers' electricity bills to finance Bahamas

Power & Light's (BPL) rate reduction bond restructuring, adding: "Someone

has to pay for the debt on the books at BPL as a result of gross

mismanagement."

The AML Foods chief also said there was "a little bit of uncertainty" over

how the Government plans to replace revenue that will be lost as a result

of having to eliminate, or substantially reduce, many import tariff lines as a

result of joining the WTO.

The Minnis administration has said it will likely have to replace between

$100-$200 million in lost revenue but is currently unable to give a precise

figure because the terms of the Bahamas' accession have yet to be

negotiated.

Mr Watchorn questioned whether the chosen replacement would be a

"consumer tax" or "business tax", and how it would be collected. He

added that he did not "see the benefit to consumers" from joining the

WTO if the Government eliminated import tariffs on one hand, only to levy

new or increased taxation on the other.

His comments indicate AML Foods is going to be far less aggressive with

the expansion strategy it unveiled in its 2017 annual report, which aimed

to add two new stores in southern New Providence over the next five

years.

It had planned to continue rolling out its 'neighbourhood' food stores

based on the model established by the recently-opened Solomon's

Yamacraw outlet, having already acquired a 4.506-acre site on Charles

Saunders Highway, between Seabreeze Estates and Pinewood Gardens,

as one such location. Another site was being sought in southwestern New

Providence.

Meanwhile, Mr Watchorn said AML Foods had this week opened a new

staff training centre in Freeport, adding: "We're quite excited about the

benefits it will bring to us up there over the medium to long-term."

The BISX-listed group is now planning to construct and open a similar 4,000

square foot training centre, adjacent to its Solomon's Yamacraw store,

before the 2018 calendar year-end.

"We will be breaking ground shortly, and it will be operational before the

end of this year," Mr Watchorn said. "It's kind of a win-win for us."

Tribune Business sources yesterday suggested AML Foods had originally

planned to base its Nassau training centre, and relocate its head office,

at the former City Markets headquarters building and warehouse on the

East-West Highway.

However, its $3 million purchase of the site has become bogged down in

the ongoing litigation involving the property's owner, the City Markets

employee pension fund, and Tribune Business understands that AML Foods

is close to walking away from the deal unless it can close quickly.

Mr Watchorn declined to comment, citing the ongoing litigation, but a

source familiar with developments, speaking on condition of anonymity,

said: "AML is prepared to walk away from this if it is not resolved quickly. It

cannot let its strategy be held up because of issues with the property."

The City Markets employee pension fund trustees are currently embroiled

in a legal challenge over whether they have the right, and ability, to sell

the former head office and warehouse building as revealed by Tribune

Business earlier this year.

AML Foods has two years left on its existing lease at the Town Centre Mall

and is searching for a new location for its Cost Right brand as well as a

new headquarters site.

<< Back to news headlines >>

Bahamas Trade Deficit Over $3bn Friday 20th July, 2018 – Tribune 242

The Bahamas' annual trade deficit expanded by 19 percent to over $3bn

in 2017, as this nation's merchandise import bill expanded by more than

$500m.

The Annual Foreign Trade Report, released this week by the Department

of Statistics, revealed that imports continued to expand at a faster rate

than The Bahamas' goods exports.

Imports jumped by 18.6 percent, compared to 2016, rising from $2.932bn

to $3.478bn, while exports expanded by 17.5 percent - albeit from a much

lower starting point - rising from $402.715m to $473.335m.

"Data on merchandise trade for the year 2017 shows that the value of

commodities imported into The Bahamas totalled $3.5bn, resulting in an

increase of 18.6 percent between 2016 and 2017," the report found,

noting that imports increased by $475.4m.

"The balance of trade (total exports minus total imports) continued to

result in a deficit. The trade deficit increased by 18.8 percent between

2016 and 2017, resulting in a negative balance of $3 billion."

The report highlights the Bahamas' dependence on imports for virtually

everything it consumes, along with its relatively thin export base that is

largely dominated by Polymers International, the rest of Freeport's

industrial economy and the seafood/crawfish industry.

Some observers are likely to seize on the data as evidence that raises

serious questions as to the benefits of full World Trade Organisation (WTO)

membership, which the Government is aiming to achieve by end-2019,

given that the Bahamas exports comparatively little in the way of goods.

The Government, though, will likely retort that WTO membership is going to

increase merchandise exports for both existing and new industries, given

that it will help guarantee access to overseas markets by removing

barriers to trade and setting 'the rules of the game'.

Export industries also generate valuable foreign exchange, and the

Annual Foreign Trade Report only deals with the merchandise or physical

goods side of the Bahamas' balance of payments. It neither accounts for

the positive capital account balance, generated by tourism and foreign

direct investment (FDI) inflows, nor the services industries that account for

the vast majority of Bahamian GDP and could equally benefit from

guaranteed market access under the WTO.

With the Bahamas' goods import bill at its highest level since 2014, the

report said machinery and transport equipment accounted for the

greatest share of 22.3 percent at $775 million, up from $669 million in 2017.

The next greatest share was fuel-related products, at $554 million or 15.9

percent, with food and live animals worth $533.6 million generating a

further 15.3 percent share.

"In 2017, total exports (domestic and re-exports) totaled $473.3 million,

showing an increase of 17.5 percent from 2016," the report found. "The

major contributor to the increase was the category of 'Mineral fuels' ($72.7

million), which showed an increase of 59.7 percent from 2016's total of

$45.5 million.

"The category of 'Machinery and Transport Equipment' also showed a

significant increase from 2016's total of $97.5 million compared to $115.6

million for 2017. Domestic exports ($228.8 million) accounted for 48.3

percent of total exports. The main contributors to domestic exports were

the categories of 'Chemicals', totalling $131.9 million (57.6 percent of total

domestic exports); 'Food and Live Animals' totalling $84.1 million (36.7

percent of total domestic exports); and 'Crude Minerals' totalling $11.5

million (5 percent of total domestic exports).

"Included in the Food and Live Animals categories were conch, salt and

beer. Three commodities, 'expansible polystyrene' valued at $92.6 million;

'spiny lobster tails frozen' at 78.1 million; 'other compounds containing a

pyrimidine or piperazine ring' at $36.8 million, totalling $207.5 million

accounted for some 90.7 percent of total domestic exports."

The US remained the Bahamas' major trading partner, supplying $2.18

billion in imports and purchasing the majority - some $375.507 million worth

- of this nation's exports for a total trade deficit of $2.442 billion.

"While the US ($2.8 billion) maintained its position as the Bahamas' main

trading partner, representing 81 percent of total imports, there was a

significant amount of trade as it relates to imports between the Bahamas

and Puerto Rico ($62.2 million), which showed a substantial increase over

2016's $48.9 million," the report found.

"In terms of exports the US ($375.5 million), France ($31.1 million), Turks &

Caicos ($11.5 million) and United Kingdom ($9.4 million) were among the

top partner countries, representing 79.3 percent, 6.6 percent, 2.4 percent

and 2 percent of total exports, respectively."

<< Back to news headlines >>

St. Kitts and Nevis Launches Nation-Branding Magazine Friday 20th July, 2018 – SKN Vibes

The Government of St. Kitts and Nevis through the Citizenship by

Investment Unit (CIU) has today launched a national magazine aimed at

communicating the country’s key brand differentiators to global citizens

and investors looking for a potential second home.

The St. Kitts & Nevis Citizen, a 175-paged nation-branding publication,

takes stock of the twin-island nation’s Platinum Standard milestones by

depicting the economic, political and human capital potential.

Speaking at the launch event at Carambola Beach Club, Dr. The

Honorable Timothy Harris, St. Kitts and Nevis Prime Minister said there was

every need to safeguard the country’s brand amidst the increased

competition in the citizenship by investment industry.

“Our national brand is an identity and value proposition to the world,

made tangible, robust, communicable and useful. Our ‘Platinum

Standard’ brand, set effectively, helps our country maintain a deserved

competitive advantage. It ensures that investors recognize and trust that

their decisions and commitments are respected, valued, and protected,

“said PM Harris.

The St Kitts and Nevis CBI brand, pioneered in 1984, has been in existence

for over three decades and has been internationally recognized as the

‘Platinum Standard’. Chief Executive Officer of the Citizenship by

Investment Unit (CIU) says there’s every need to increase communications

efforts aimed at clearly differentiating St. Kitts and Nevis from other

Caribbean island destinations.

The St. Kitts and Nevis Citizen magazine offers a unique opportunity to tell

our special national story and maintain awareness of the true value of our

CIP program beyond tourism and our natural resources. We tend to be

seen in the global space as a beautiful and friendly Caribbean

destination filled with sun, sea, and sand. While St. Kitts and Nevis is a

world class tourism destination, we are also a global innovator and a

leader in a number of other areas, including Citizenship by Investment,

ICTs, international financial services, and global migration services, “said

Mr. Khan.

The launch of the magazine comes days before the kick-off of the

Caribbean Investment Summit 2018, an industry event to be held May 16 –

19 at St. Kitts Marriott Resort. The event targeting players in the citizenship

by investment industry will see 300 delegates from across the globe

converge in St. Kitts and Nevis to discuss key issues pertaining to the

Citizenship by Investment market.

The speaker line-up consists of global Due Diligence expert Kim Marsh, Dr.

Kristin Surak, Associate Professor at SOAS, University of London whose

current research focuses on the rise of Citizenship by Investment

Programmes, Jeffrey Tucker, an author, economist and Bitcoin advocate

as well as the Deputy Governor at Eastern Caribbean Central Bank

(ECCB) Trevor Brathwaite and CEO of the St Kitts and Nevis Citizenship by

Investment Unit and current Chairpoerson of the Citizenship by Investment

Programs Association (CIPA) Les Khan.

The experts will be sharing best practices and deliberating upon

challenges surrounding banking and processing of funds, Due Diligence,

harmony and unity of the Caribbean CIPs, Cryptocurrency and Bitcoin

technology as relates to the CBI Industry, Sustainable development in the

face of adverse climatic changes as well as key incentives to boost

investments.

The event is sponsored by, amongst others, Caribbean Galaxy Real Estate,

Bluemina Citizenship and Immigration, Bitcoin, BDO USA, S-RM, Apex

Capital, Christophe Harbour, Range Developments, Exiger, Joseph Rowe

Law and PassPro.

<< Back to news headlines >>

Strong fall in employment in Industries and Construction Monday 23rd July, 2018 – Haiti Libre

The Employment Index (IE) in the second quarter of the fiscal year

(January to March 2018), unlike the + 12.3% year-on-year increase,

recorded in the first fiscal quarter (October to December 2017) for an

index from 107.3, the EI in the second quarter of 2018 showed a moderate

increase of + 2.6% for an index of 99.2. This slight positive change is due to

the growth of the three institutional sectors: Public, Private and NGOs /

International Organization (IO).

All institutional sectors contributed to the rise of EI in the second quarter of

2018, but the upward trend is much more marked in the NGO / RO sector,

which grew by + 7.1% year-on-year. For its part, at an annual rate, the

Employment Index (IE) of the public sector (composed of the Public

Administration and public enterprises) registered an increase of 2.4% and

the EI of the private sector increased by + 2.3%.

In the second quarter of 2018, the level of the Employment Index for the

tertiary sector stands at 99.8, representing growth of + 3.1% compared to

96.8 in the second quarter of 2017. The secondary sector, for its part,

experienced a decline in the period with an IE of 93.8 in the second

quarter of 2018 against 95.4 in 2017 for the same period, a decrease of -

1.7%.

The increase in EI of EI tertiary sector was mainly due to the evolution of

employment in the trade sector, restaurants and hotels. Indeed, between

the second quarter of 2016-2017 and the second quarter of 2017-2018, the

EI of the Commerce, Restaurants and Hotels division grew by + 6.8%. It is

also worth noting the relatively high growth (+6.2%) of EI for the Financial

Institutions. Non-Merchant Services also showed positive growth with a less

pronounced increase (+ 2.8%).

The situation is very different for the secondary sector where all the

branches showed a downward trend, with the biggest fall in the Industries

(-2.1%), followed by the BTP (Buildings and Public Works -1.9%) and

Electricity and Water (-0.1%).

The year-over-year gender analysis indicates that jobs benefited more

men (+ 3.3%) women than (+ 1.1%).

Note: The quarterly Employment Index (IE) of the Haitian Institute of

Statistics and Informatics (IHSI) provides information on changes in

employment in public and private institutions. Calculated from the data

provided by employers, this index cannot provide information on the level

of unemployment in the economy. It is only a trend indicator that gives an

idea of the evolution of employment, especially in the formal sector.

<< Back to news headlines >>

St Lucia government borrows from National Insurance fund to repay

maturing bonds Sunday 22nd July, 2018 – Caribbean News Now

In a letter dated July 3, 2018, the government of Saint Lucia has asked for

“a bridging finance facility with the National Insurance Corporation in [sic]

ranging from EC$70-100 million” for the purpose of repaying two bonds

maturing July 30 and 31 totalling EC$117 million on the Regional

Government Securities Market.

It is understood that the National Insurance Corporation (NIC) board has

approved the request, notwithstanding some reported misgivings on the

part of its director, Matthew Mathurin.

While such a loan may technically be within the power of the NIC board

to grant, not surprisingly the fact that the government has to resort to

using pension funds to repay its obligations has created a firestorm of

debate.

In particular, opposition leader Philip J Pierre, who warned last year of the

dangers in raiding the national insurance fund, asked a number of

questions in this regard in an op-ed piece published today.

Former Cabinet minister Richard Frederick asked where the pensioners will

get their money back from, adding that what is happening now clearly

shows that Prime Minister Allen Chastanet has not a clue about

governance and finances.

“If you know you have a debt to satisfy at a given date, for heaven’s

sake, you make provisions in your budget allocations to satisfy that debt,

which falls within the period of your budget cycle,” he said.

Furthermore, parliamentary approval is required to borrow money that

binds the state/ consolidated fund and the NIC has in the past lent money

to central government and deposited in the consolidated fund for

infrastructure development, which was approved by parliament.

However, in this case, no such approval has yet been sought or obtained

and, while parliament is due to meet on Tuesday, no motion to approve

such borrowing yet appears on the order paper.

Social media users also weighed in on the issue, among other things

describing as “highway robbery” that the current interest rate on a

treasury bill is 7.5 percent, whereas the government is offering only 3

percent.

Some users asked why the existing bondholders were not prepared to

rollover the indebtedness, in which case there would be no need to

approach the NIC for financing, leading to concern about what would

happen if the market is not interested in bonds from Saint Lucia, because

lenders have no confidence in the government’s ability to repay.

<< Back to news headlines >>

NCB seeks investment projects in the Caribbean Saturday 21st July, 2018 – Jamaica Gleaner

The island's largest and most profitable financial conglomerate, the

National Commercial Bank (NCB), with its imprint in parts of the Caribbean

- has expansion in sight as it seeks to invest in new and existing projects.

Winston Lawson, assistant general manager for corporate banking with

responsibility for western Jamaica and potential projects in the

Caribbean, said NCB is very likely to participate in or lead the financing of

any major projects in Jamaica and the region that require funding.

Lawson also has oversight for the north and south coast regions.

With western Jamaica being predominantly dominated by the hospitality

sector, Lawson said, as he seeks to broaden NCB's reach throughout the

region, a great deal of emphasis would be placed on increasing NCB's

investment potential in these regions.

"The Caribbean is a tourism destination, so NCB is very upbeat and

aggressive to extend our financial capabilities to investors undertaking

any size projects. We have invested in several projects locally and

regionally, with other projects in the making. We have the capacity, and

we are looking for more projects in which we can invest," Lawson

affirmed.

Lawson was among a team of senior managers attending NCB's annual

hosting of the Monday Club, held in Rose Hall, Montego Bay, St James,

recently. The Monday Club is a professional all-male social event that is

held monthly across Montego Bay and is sponsored by corporate entities.

Encouraged by the fact that NCB remains the largest and most dominant

commercial bank in Jamaica, Lawson reiterated: "We intend to continue

to distinguish ourselves within the corporate banking space as the

dominant player within the banking industry."

... Business and investor confidence moving in the right direction

Head of corporate banking at the National Commercial Bank (NCB),

Andrew Simpson, said the institution has recently repositioned itself with

corporate investment portfolios across 13 countries in the Caribbean and

Latin America. This strategy has given the group the ability to extend its

suite of products and services to a wider customer base while diversifying

revenue streams and allowing them to serve existing customers in

territories outside of Jamaica.

"Our agility permits very efficient decision making, and our flexibility

ensures that product offerings are matching market requirements across

the Caribbean and Latin America," Simpson added.

Winston Lawson, assistant general manager for corporate banking with

responsibility for western Jamaica and potential projects in the

Caribbean, said NCB has the financial capacity to invest in multinational

projects across a gamut of industries, such as tourism, energy,

manufacturing, distribution, logistics, construction, and other areas locally

and regionally.

"Jamaica is at a point where business and investor confidence is moving

in the right direction, which means Jamaica is ripe for viable investments

and NCB is well-positioned to finance them. We are ensuring that we

make ourselves available to provide the funding and the expertise where

necessary," said Lawson.

"We have partners in Jamaica, throughout the Caribbean, and

internationally to bolster our syndicated loan portfolios, which provides

relevant structured financing to undertake large projects that will bring

the kind of growth that is needed to build stronger economies in Jamaica

and within the region."

The NCB Group has financial interests in St Lucia, the Cayman Islands,

Barbados, Antigua; Haiti, Costa Rica, The ABC Islands, and other territories

in the region.

<< Back to news headlines >>

Windrush compensation scheme launched after meeting with Home

Secretary Friday 20th July, 2018 – Nation News

On Wednesday, the UK Home Secretary, Sajid Javid, met with CARICOM

High Commissioners to provide an update on Windrush matters, including

the compensation scheme that was launched in Parliament by him the

following day through a ministerial statement.

High Commissioners heard that following the establishment of the

Windrush Scheme in May, supported by a 150-person dedicated Home

Office Taskforce, over 2 500 applications by members of the Windrush

Generation for UK citizenship and/or permanent residence were fast-

tracked and successfully processed.

Home Secretary Javid advised that “the compensation scheme will help

rectify the injustices of the past . . . to right the wrongs experienced by the

Windrush generation – who have made such a massive contribution to

the UK”. Javid said that he is developing a scheme that is “fair,

comprehensive and accessible” and emphasised that the British

government “must listen to those affected to ensure we get it right”.

Accordingly, a three-month consultation has been created and those

who have been affected are being asked to give input on how the

scheme should work. People will be able to take part in the consultation

online, via post or over the phone. The Home Office will also be hosting

events around the UK to give people the opportunity to discuss the

scheme with members of the compensation team.

Among those affected by the Windrush scandal are West Indians forced

out of work and residencies, and those denied welfare and other

government benefits, as well as individuals wrongfully detained and in

some cases deported.

The Barbados High Commission at London, as with other Caribbean

missions, has already reached out to its diaspora to alert them to the

compensation scheme and to solicit their critical feedback. Guy Hewitt

said that: “As High Commissioner for Barbados, I am delighted that we

have come so far so quickly and I can end my tour of duty [in August

2018] with a sense of achievement. We have been able to make a

considerable difference to the lives of elderly, West Indian migrants in

Britain.”

At the Home Office meeting, the High Commissioners also held discussions

with Martin Force, QC, the independent advisor on the compensation

scheme and with Wendy Williams, the newly appointed advisor to review

the Windrush debacle and advise the Home Office on lessons learned.

<< Back to news headlines >>

BoJ easing talk sends bond yields up Monday 23rd July, 2018 – Reuters

Signs that the Bank of Japan (BoJ) might scale back its monetary stimulus

faster than expected sent tremors through bond markets on Monday,

while European stocks slipped as threats of further U.S. tariffs on China

drained risk appetite.

Europe’s bond yields climbed after a Reuters report that the BoJ was

discussing modifying its huge easing program sent Japan’s 10-year bond

yield to a six-month high.

The report rekindled anxieties about monetary stimulus easing around the

world and piled further pressure on investors already struggling to

navigate rising protectionism.

The yield on Europe’s benchmark bond, the German 10-year Bund

DE10Y=TT, hit a one-month high of 0.39 percent and U.S. 10-year Treasury

yields US10YT=RR also hit their highest in a month at 2.90 percent.

The yen climbed to two-week highs against the dollar JPY= and was last

up 0.2 percent at 111.14 per dollar.

“It’s all that concern investors have about the move from global

quantitative easing to global quantitative tightening. That fear gets

stoked when you have reports such as this,” Psigma Investment

Management’s head of investment strategy, Rory McPherson.

“The ECB meeting this week will be more in focus now that we’ve had this

concern about Japan.”

The dollar index .DXY meanwhile bounced back, up 0.1 percent from two-

week lows hit after U.S. President Trump criticized the Federal Reserve’s

tightening policy and accused the European Union and China of

manipulating their currencies.

“We see the latest news on trade policy as pointing to continued high risk

of escalation between the U.S. and China, and a renewed focus of the

Trump Administration on currency matters,” Goldman Sachs analysts said.

Beijing said it has no intention of devaluing the yuan to help exports.

Trump’s comments about rates also helped the Treasury yield curve reach

its steepest in three weeks US2US10=TWEB. The yield curve’s flattening has

been seen by some as a sign of an impending recession.

The U.S. president’s new threats to slap duties on all $500 billion of U.S.

imports from China triggered sell-offs across stock markets, though good

earnings kept a lid on losses.

The MSCI all-country world index declined just 0.1 percent while MSCI’s

broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2

percent.

Europe’s STOXX 600 fell 0.2 percent by 1000 GMT as investors braced for a

packed earnings week and a meeting between European Commission

President Jean-Claude Juncker and Trump to discuss threatened auto

tariffs which could damage carmakers.

“The pattern of Trump’s meetings has generally been more conciliatory

when he meets in person. It could actually be good for autos,” Psigma’s

McPherson said.

Europe’s autos sector .SXAP fell 0.6 percent, hitting a 2-1/2 week low. The

index is down 9 percent this year and is among the worst performing

European sectors.

Goldman Sachs analysts said auto tariffs, if they came to pass, were likely

to cause weakness in the Canadian dollar and Mexican peso, possibly

also affecting the euro, pound, yen, and Korean won as investors priced

in a hit to the economy.

“The global economy is still okay, but the risk is now very high, and if trade

policies don’t make a U-turn very soon, we’ll see a measurable impact on

growth already next year,” UniCredit chief economist Erik Nielsen said.

A rally in the euro EUR=, which has been gaining from dollar weakness,

fizzled out. The single currency was down 0.2 percent at $1.1691 by 1000

GMT.

The euro’s weakening over the past few months is likely to boost earnings

for euro zone exporters, analysts say.

Crude prices recovered from a fall as concerns over production losses

eclipsed worries about fuel demand. [O/R]

U.S. crude CLc1 rose 0.6 percent to $68.64 a barrel after posting its third

straight weekly loss. Brent crude LCOc1 rose 1 percent to $73.77 a barrel.

Copper CMCU3, among the most sensitive to trade tensions, rose 0.2

percent from a one-year low hit last week, trading at $6,160 a tonne,

having declined for the sixth week in a row last week. Gold prices

declined 0.2 percent to $1,229.1 an ounce XAU=.

Emerging market equities .MSCIEF traded down 0.1 percent as the dollar

recovered. Strength in the greenback has driven selling in EM stocks this

year as the currency puts pressure on emerging economies with large

dollar-denominated debt piles.

<< Back to news headlines >>

China says it won't devalue currency to bolster exports Monday 23rd July, 2018 – Reuters

China said on Monday the value of its currency is driven by market forces

and that it has no intention to devalue the yuan to help exports, after

Washington said it was monitoring the currency’s weakness amid the

escalating bilateral trade row.

The Chinese Foreign Ministry also said that threats and intimidation on

trade would never work on China, after U.S. President Donald Trump said

he was ready to impose tariffs on all $500 billion of goods imported from

the country.

At a daily news briefing, ministry spokesman Geng Shuang was asked

about comments on Friday by U.S. Treasury Secretary Steven Mnuchin,

who told Reuters the yuan’s weakness would be reviewed as part of the

Treasury’s semi-annual report on currency manipulation, which is due on

Oct. 15.

Mnuchin’s comments were the first since the early days of the Trump

administration in 2017 that raised the prospect of designating China as a

manipulator.

Geng said the value of the yuan was subject to the forces of demand

and supply, and that healthy economic performance offered support for

its level.

“China has no intention to use means like the competitive devaluation of

its currency to stimulate exports,” he said.

While the ministry has no say in currency policy, it is the only government

department which holds a daily news briefing that foreign reporters can

attend.

Neither the People’s Bank of China nor the State Administration of Foreign

Exchange responded to requests for comment on Mnuchin’s remarks.

China's yuan CNY=CFXS, battered by the trade brawl and strong dollar,

has lost more than 7 percent against the greenback since the end of the

first quarter.

Around $505 billion of Chinese goods were imported to the United States

in 2017, leading to a trade deficit of nearly $376 billion, U.S. government

data shows. Chinese imports from the United States totaled $205 billion in

the first five months of 2018, with the deficit reaching $152 billion.

Earlier this month, the United States imposed tariffs on $34 billion of

Chinese imports. China promptly levied taxes on the same value of U.S.

products.

“We advise the U.S side to remain calm and maintain a rational attitude,”

Geng said.

<< Back to news headlines >>

China eyes more vigorous fiscal policy short of strong stimulus Monday 23rd July, 2018 – Reuters

China will adopt a more vigorous fiscal policy to help tackle external

uncertainties without resorting to strong policy stimulus, state radio said on

Monday, citing the cabinet.

Slowing economic growth has sparked a heated debate among

government researchers on whether fiscal policy should play a bigger role

in softening the impact of a trade war with the United States.

“The proactive fiscal policy will become more active,” state radio cited a

statement issued after a cabinet meeting, chaired by Premier Li Keqiang,

as saying.

The fiscal policy will focus on cutting taxes for companies while the pace

of local governments’ special bond issuance will be quickened, it quoted

the cabinet as saying.

The government will deliver a tax cut of 65 billion yuan ($9.6 billion) by

expanding a preferential policy for small tech firms to all firms, on top of

an initial goal of cutting taxes and fees by 1.1 trillion yuan this year, the

cabinet said.

China will keep liquidity ample and maintain appropriate total social

financing under its prudent monetary policy, which will be neither too tight

nor too loose, it added.

Economic growth slowed slightly to 6.7 percent in the second quarter as

Beijing’s efforts to contain debt hurt activity, while June factory output

growth weakened to a two-year low, in a worrying sign for investment and

exporters as a trade war with the United States intensified.

China’s regulatory tightening has driven up corporate borrowing costs,

prompting the central bank to cut banks’ reserve requirements three

times this year, with further cuts widely expected.

In March, Premier Li Keqiang announced a cut in the annual budget

deficit target from 3 percent of gross domestic product in 2017, the first

since 2012, but the finance ministry said fiscal policy remained supportive

for growth, given a jump in planned special bond issuance this year.

<< Back to news headlines >>

Stock futures flat as caution reigns in earnings-heavy week Monday 23rd July, 2018 – Reuters

U.S. stock index futures were flat on Monday as investors assessed the

impact of an escalating trade conflict between the United States and

China on corporate results in an earnings-heavy week.

While the threats and rhetoric between the countries intensify, some U.S.

manufacturers have said the uncertainty related to tariffs was already

hitting them and the effects have started showing in early quarterly

reports.

Investors will be watching out for further signs of the fallout this week in

earnings reports from 180 S&P 500 companies including Ford Motor (F.N),

3M Co (MMM.N) and Boeing (BA.N). The planemaker’s shares have fallen

nearly 2 percent since the start of March.

Investors are also concerned that the U.S.-Sino trade war is spilling over to

currency markets. The dollar hit a one-year high last week, which can eat

into U.S. companies’ overseas revenue.

President Donald Trump has criticized the greenback’s strength, while

accusing China of manipulating the yuan, which Beijing has denied.

“What started as a war on trade now appears to have grown a new set of

roots with the seeds of a potential currency war now seemingly sown and

threatening to break out,” Craig Nicol, a macro strategist at Deutsche

Bank, said in a note.

Still, second-quarter earnings season has been healthy, with analysts’

profit growth forecast now at 22 percent, up from 20.7 percent on July 1,

according to Thomson Reuters I/B/E/S.

About 84 percent of the 87 S&P 500 companies that have reported so far

have topped profit expectations, compared with the average of 75

percent over the past four quarters.

At 7:26 a.m. ET, Dow e-minis 1YMc1 were down 15 points, or 0.06 percent.

S&P 500 e-minis ESc1 were down 2 points, or 0.07 percent and Nasdaq 100

e-minis NQc1 were down 25.25 points, or 0.34 percent.

Investors will also keep an eye on the bond market, where the yield on the

U.S. 10-year Treasury note US10YT=RR hit a one-month high of 2.90 percent

after Reuters reported that the Bank of Japan was discussing modifying its

huge easing program.

Among stocks, shares of Hasbro (HAS.O) rose 8.6 percent in premarket

trading after the toymaker’s quarterly revenue and profit topped analysts’

estimates.

Tesla’s shares (TSLA.O) fell 3.7 percent after the Wall Street Journal

reported that the electric car maker has asked some suppliers to return a

“meaningful” amount of what it has spent since 2016 to help it become

profitable.

Hospital operator LifePoint Health (LPNT.O) surged 33.6 percent on

agreeing to be bought by Apollo Global Management LLC (APO.N) in a

deal valued at about $5.6 billion.

Syntel (SYNT.O) gained 3.6 percent after French IT services company Atos

(ATOS.PA) said it would buy the U.S. IT services provider in a $3.4 billion

cash deal.

On the macro front, economic data at 10 a.m. ET is expected to show

existing home sales rose to 5.44 million units in June, after slipping 0.4

percent to a seasonally adjusted annual rate of 5.43 million units in May

<< Back to news headlines >>

Japanese yen trims early gains as BOJ policy change eyed Monday 23rd July, 2018 – Reuters

The yen trimmed early gains on Monday as traders consolidated positions

after reports the central bank was debating moves to scale back its

massive monetary stimulus ignited a brief rally in the Japanese currency.

With investors wary of buying the yen aggressively unless some concrete

measures were seen from the Bank of Japan, the yen consolidated early

gains.

“We had a big move in the yen on the back of the spike in bond yields

but with inflation low and corporate profitability momentum struggling,

some concrete steps from the BOJ will be needed to sustain this move

higher,” said Timothy Graf, head of macro strategy at SSGA in London.

The Bank of Japan, facing stubbornly low inflation, is in unusually active

discussions before this month’s policy decision, with changes to its interest-

rate targets and stock-buying techniques on the table, people familiar

with the central bank’s thinking told Reuters.

Expectations the central bank may unveil some measures at its next

monetary policy meeting on July 30 and 31 sent bond yields surging and

the yen rallying to a two-week high against the dollar and the euro.

The BOJ’s current policy, adopted in mid-2016, consists mainly of negative

short-term interest rates, keeping the 10-year yield around zero percent

and buying about six trillion yen of stocks through exchange traded funds

(ETFs).

The Japanese yen rallied half a percent against the euro EURJPY=EBS to

130.70 yen, its highest since July. 11. It rose by a similar margin against the

dollar JPY=EBS 110.90 and against sterling at GBPJPY=EBS at 145.85 yen.

But by early afternoon, the yen had trimmed much of its gains.

Also pushing the yen up were comments by U.S. President Donald Trump

on Friday criticising the greenback’s strength, which in turn hit the

Japanese stock markets and triggered a further unwinding of short yen

positions.

CNBC reported on Friday that Trump was worried the Federal Reserve will

raise interest rates twice more this year. Trump said the Fed’s policy

tightening and the strong dollar could hurt the U.S. economy.

With short bets against the yen doubling to nearly 60,000 contracts in the

latest weekly data, according to CFTC, some traders expected more

upside for the yen in the short term.

Broader moves in currency markets were muted. The dollar index .DXY, a

measure of its value against a basket of six major currencies, was down

0.1 percent at 94.327, slipping further from a one-year high of 95.656

touched on July 19.

Positioning data also offered little support for the dollar with net long

positions in the greenback showing some signs of peaking after a recent

buildup in long dollar bets.

<< Back to news headlines >>

Oil higher on Middle East, North Sea supply worries Monday 23rd July, 2018 – Reuters

Oil prices rose on Monday on worries over supply after tensions worsened

between Iran and the United States, while some offshore workers began a

24-hour strike on three oil and gas platforms in the British North Sea.

Iranian Supreme Leader Ayatollah Ali Khamenei on Saturday backed a

suggestion by President Hassan Rouhani that Iran could block Gulf oil

shipments if its exports were stopped.

The Iranian leadership was responding to the threat of U.S. sanctions after

President Donald Trump in May pulled out of a multinational agreement to

trade with Tehran in return for its commitment not to develop nuclear

weapons.

The Trump administration has launched an offensive of speeches and

online communications meant to foment unrest and help pressure Iran to

end its nuclear program and its support of militant groups, U.S. officials

said.

Brent crude oil LCOc1 rose $1.19 a barrel to a high of $74.26 before easing

to around $74.05 by 1030 GMT. U.S. light crude CLc1 was up 70 cents at

$68.96 a barrel.

“Potential Gulf supply is at risk - this is triggering the upward trend,” said

Tamas Varga, analyst at London brokerage PVM Oil Associates.

The rise also followed news of a 24-hour strike by 40 rig workers on three oil

and gas platforms in the British North Sea. The dispute curbed gas flows to

shore, but stored crude was expected to mitigate any oil supply

disruption.

Limiting supply worries were concerns about the impact on global

economic growth and energy demand of the escalating trade dispute

between the United States and its trading partners.

Finance ministers and central bank governors from the world’s 20 biggest

economies ended a meeting in Buenos Aires over the weekend calling for

more dialogue to prevent trade and geopolitical tensions from hurting

growth.

“Downside risks over the short and medium term have increased,” the

finance leaders said in a statement.

The talks occurred amid escalating rhetoric in a trade dispute between

the United States and China, the world’s largest economies, which have

already slapped tariffs on $34 billion worth of each other’s goods.

Trump threatened on Friday to impose tariffs on all $500 billion of Chinese

exports to the United States unless Beijing agreed major changes to its

technology transfer, industrial subsidy and joint venture policies.

Economic and oil demand growth are correlated as expanding

economies support fuel consumption for trade and travel, as well as for

automobiles.

<< Back to news headlines >>

German 10-year bond yield hits one-month high after Japanese yields

jump Monday 23rd July, 2018 – Reuters

Germany’s 10-year bond yield rose to its highest level in just over a month

on Monday, following a jump in Japanese government bond yields on

reports that the Bank of Japan was debating moves to scale back its

massive monetary stimulus.

Japan’s 10-year yield rose to a six-month high at 0.090 percent after

sources told Reuters on Friday the BOJ was holding preliminary discussions

on possible changes to its monetary policy.

These included adjustments to interest-rate targets and stock-buying

techniques and a focus on ways to make the massive stimulus

programme more sustainable.

The rare jump in Japanese yields, which were set for their biggest one-day

rise in almost two years, set the tone for other major bond markets.

Across the euro zone, most 10-year bond yields were up 2-3 basis points

on the day. Germany’s 10-year bond yield rose to 0.39 percent, its highest

level in over a month.

U.S. 10-year Treasury yields touched one-month highs at 2.90 percent,

although the rise in safe-haven bond yields was limited by nagging

concerns about the global trade row.

“This story has got a lot of interest over the weekend, so it looks like

investors are actively getting interested in what it means for JGBs,” said

Peter Chatwell, head of rates strategy at Mizuho in London. “The idea that

the BOJ would want to review policy, we take seriously, but this has been

ongoing for some time.”

Shifting market views on Japanese policy come as other major central

banks move away from low interest rates.

The U.S. Federal Reserve is in the midst of monetary policy tightening and

the European Central Bank is set to end its massive stimulus scheme by the

end of this year.

The ECB meets on Thursday and is likely to be pressed for more details on

its plans.

Still, analysts said some caution was warranted when it came to potential

shifts in BOJ policy given tepid inflation.

Japan’s inflation is seen as unlikely to reach the BOJ’s 2 percent target

even after the central bank, which frequently buys more JGBs than the

government issues, soaks up more than 40 percent of outstanding

government debt.

“I wouldn’t expect a complete shift away from what we have at the

moment because there’s still a way to go on the inflation front and there

are challenges to the economy,” said Investec economist Victoria Clarke.

Greek bond yields inched down, outperforming euro zone peers after S&P

Global Ratings raised its outlook on Greece on Friday to positive from

stable while affirming its B-plus/B ratings.

Last month, S&P raised its long-term debt rating on Greece. The country is

due to exit its third international bailout next month.

<< Back to news headlines >>

Bond yields rise worldwide on BoJ easing talk, stocks slip Monday 23rd July, 2018 – Reuters

Signs that the Bank of Japan (BoJ) might scale back its monetary stimulus

faster than expected sent tremors through bond markets on Monday,

while European stocks and U.S. futures slipped as threats of further U.S.

tariffs on China drained risk appetite.

Europe’s bond yields climbed after a Reuters report that the BoJ was

discussing modifying its huge easing programme sent Japan’s 10-year

bond yield to a six-month high.

The report rekindled anxieties about monetary stimulus easing around the

world and piled further pressure on investors already struggling to

navigate rising protectionism.

The yield on Europe’s benchmark bond, the German 10-year Bund

DE10Y=TT, hit a one-month high of 0.39 percent and U.S. 10-year Treasury

yields US10YT=RR also hit their highest in a month at 2.90 percent.

The yen climbed to two-week highs against the dollar JPY= and was last

up 0.3 percent at 111.05 per dollar.

“It’s all that concern investors have about the move from global

quantitative easing to global quantitative tightening. That fear gets

stoked when you have reports such as this,” Psigma Investment

Management’s head of investment strategy, Rory McPherson, said.

“The ECB meeting this week will be more in focus now that we’ve had this

concern about Japan.”

The dollar index. DXY languished near the two-week low it hit after U.S.

President Trump criticised the Federal Reserve’s tightening policy and

accused the European Union and China of manipulating their currencies.

Beijing said it has no intention of devaluing the yuan to help exports.

“We see the latest news on trade policy as pointing to continued high risk

of escalation between the U.S. and China, and a renewed focus of the

Trump Administration on currency matters,” Goldman Sachs analysts said.

Trump’s comments about rates also helped the Treasury yield curve reach

its steepest in three weeks US2US10=TWEB. The yield curve’s flattening has

been seen by some as a sign of an impending recession.

The U.S. president’s new threats to slap duties on all $500 billion of U.S.

imports from China triggered sell-offs across stock markets, though good

earnings kept a lid on losses.

S&P 500 and Dow Jones benchmark futures were flat, while futures for the

tech-heavy Nasdaq fell 0.2 percent by 1205 GMT, indicating a tepid start

for Wall Street. 1YMc1 ESc1 NQc1

Europe’s STOXX 600 fell 0.1 percent by 1205 GMT as investors braced for a

packed earnings week and a meeting between European Commission

President Jean-Claude Juncker and Trump to discuss threatened tariffs

which may affect carmakers.

“The pattern of Trump’s meetings has generally been more conciliatory

when he meets in person. It could actually be good for autos,” Psigma’s

McPherson said.

Europe’s autos sector .SXAP was down 0.7 percent, hitting a 2-1/2 week

low. The index is down 9 percent this year and is among the worst-

performing European sectors.

Goldman Sachs analysts said auto tariffs, if they came to pass, were likely

to cause weakness in the Canadian dollar and Mexican peso, possibly

also affecting the euro, pound, yen, and Korean won as investors priced

in a hit to the economy.

“The global economy is still okay, but the risk is now very high, and if trade

policies don’t make a U-turn very soon, we’ll see a measurable impact on

growth already next year,” UniCredit chief economist Erik Nielsen said.

Concerns about growth affecting demand for fuel had dented crude

prices in early trading, but oil rose again as tensions worsened between

Iran and the U.S. and a rig workers’ strike caused potential supply

disruption. [O/R]

U.S. crude CLc1 rose 1.1 percent to $69.04 a barrel after posting its third

straight weekly loss. Brent crude LCOc1 climbed 1.4 percent to $74.08 a

barrel.

Around 40 rig workers started a 24-hour strike on three North Sea oil

platforms operated by Total, curbing gas flows to shore.

In metals, copper CMCU3 - among the most sensitive to trade tensions -

rose 0.7 percent from a one-year low hit last week, trading at $6,192.5 a

tonne.

Emerging market equities. MSCIEF eased 0.1 percent as the dollar

recovered. Dollar strength has driven selling in emerging market stocks this

year, putting pressure on emerging economies with large dollar-

denominated debt piles.

<< Back to news headlines >>

Nikkei drops to 10-day low on yen's rally; Fast Retailing hit Monday 23rd July, 2018 – Reuters

Japan’s Nikkei fell to a 10-day low on Monday, with exporters driven down

by the yen’s rally and index heavyweight Fast Retailing hit by speculation

the Bank of Japan could wind back its exchange-traded fund purchases.

The Nikkei ended the day down 1.33 percent at 22,396.99 after going as

low as 22,341.87, its weakest intraday level since July 13.

The dollar traded around 111.00 yen, having tumbled from the six-month

peak above 113.00 scaled late last week after U.S. President Donald

Trump said the strong greenback put his country at a disadvantage.

Accelerating the dollar’s fall versus the yen were reports by Reuters and

other media over the weekend that the BOJ could debate changes in its

monetary policy at its upcoming meeting, with potential tweaks to its

interest rate targets and stock-buying techniques on the table.

“The market is reacting as Trump’s comments stopped the dollar’s rise

against the yen just as the U.S. currency was rallying. There is an impression

that Trump speaks randomly, but the timing was exquisite,” said Norihiro

Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley

Securities.

“And the other factor weighing on stocks via the yen’s weakening are the

various media reports on the BOJ. The reports have stirred unrest in the

market, which was caught off guard, thinking that the BOJ would not

budge an inch from its current stance.”

Exporters slid on the yen’s appreciation. Toyota Motor Corp fell 1.73

percent, TDK Corp dropped 2.4 percent, Advantest Corp retreated 2.09

percent and Panasonic Corp shed 1.21 percent.

BANKS RISE AMID BOJ SPECULATION

Fast Retailing Co, the operator of the Uniqlo clothing chain, slumped 5.72

percent, hurt by speculation that a potential tweak to the BOJ’s monetary

policy could put the shares at a disadvantage.

The central bank has been buying exchange-traded funds (ETFs) as part

of its easing scheme. Speculation has risen in the market that potential

policy tweaks could involve the BOJ concentrating its purchases from

Nikkei-linked ETFs, which Fast Retailing has a heavy weighing in, to the

broader Topix ETFs.

Losses in Topix stocks were less pronounced relative to the Nikkei. Topix

ended the day 0.36 percent lower at 1,738.70.

Banks rallied on speculation that any tweaks to the BOJ’s interest rate

target could lift yields from previously low levels. Japan’s 10-year bond

yield jumped to a six-month peak on Monday following the BOJ-related

reports.

Mitsubishi UFJ Financial Group Inc rose 3.64 percent, Mizuho Financial

Group gained 2.73 percent, Sumitomo Mitsui Banking Corp climbed 2.79

percent and Shinsei Bank advanced 3.22 percent.

The banking sector was the biggest gainer of Tokyo’s 33 sub-indexes.

Other finance-related sectors were also buoyant, with securities and

insurance ending in positive territory.

<< Back to news headlines >>

Sterling falls to three-week low versus resurgent yen Monday 23rd July, 2018 – Reuters

Sterling fell to a three-week low against a resurgent yen on Monday after

the Japanese currency received a boost from reports that the central

bank was contemplating scaling back its stimulus.

The British currency struggled to hold on to earlier gains against the dollar

and fell 0.1 percent to $1.3115, although the pound was still up from last

week’s 10-month lows below $1.30.

Sterling rebounded on Friday as the greenback was undermined by U.S.

President Donald Trump’s comments lamenting the dollar’s recent

strength.

Against the yen, which has firmed across the board since the Bank of

Japan reports, the pound slipped 0.55 percent to 145.8 yen, the lowest

since July 3.

The Bank of Japan, facing stubbornly low inflation, is in unusually active

discussions before this month’s policy decision, with changes to its interest-

rate targets and stock-buying techniques on the table, people familiar

with the central bank’s thinking told Reuters.

Sterling looks set for more volatility however amid growing talk of a likely

“hard” Brexit — crashing out of the European Union without a trade deal

in place.

A weekend poll revealed Britons were overwhelmingly opposed to Prime

Minister Theresa May’s Brexit plan and would instead support a new right-

wing political party committed to quitting the bloc.

The UK parliament starts its summer recess this week and markets are now

awaiting next week’s Bank of England meeting to see if the bank decides

to raise rates.

Markets currently assign a roughly 70 percent chance of a rate increase

despite weaker-than-expected retail sales and softer inflation data

published last week.

With the British government having unveiled its proposals for ties with the

European Union after the two divorce next year, all eyes are now on the

response from Brussels.

Michel Barnier, the chief EU negotiator, said Britain’s proposals on its future

relationship with the European Union contained constructive elements but

that many questions remained.

“The pound continues to remain on the defensive, although there is at

least some relief that an immediate leadership challenge to PM May

appears unlikely before the parliamentary summer recess,” MUFJ analysts

told clients.

“It leaves the upcoming BoE policy meeting on 2nd August as the main

event for the pound over the holiday period.”

Against the euro sterling rose 0.1 percent to 89.12 pence per euro.

<< Back to news headlines >>

Grace Kennedy closes lower at $2.80 Saturday 21st July, 2018 – Trinidad and Tobago Guardian

Overall market activity resulted from trading in 17 securities of which four

advanced, ten declined and three traded firm.

Trading activity on the First Tier Market registered a volume of 63,636

shares crossing the floor of the Exchange valued at $1,444,092.86.

Guardian Holdings Limited was the volume leader with 18,191 shares

changing hands for a value of $301,970.60, followed by GraceKennedy

Limited with a volume of 15,119 shares being traded for $42,345.10.

Republic Financial Holdings Limited contributed 6,441 shares with a value

of $661,960.85, while Trinidad Cement Limited added 6,300 shares valued

at $18,270.

One Caribbean Media Limited registered the day’s largest gain,

increasing $0.10 to end the day at $12.10. Conversely, GraceKennedy

Limited registered the day’s largest decline, falling $0.10 to close at $2.80.

Clico Investment Fund was the only active security on the Mutual Fund

Market, posting a volume of 11,406 shares valued at $232,282.38. It

declined by $0.07 to end at $20.36.

In Friday’s trading session the following reflect the movement of the TTSE

Indices:

• The Composite Index advanced by 0.15 points (0.01 per cent) to close

at 1,226.46.

• The All T&T Index declined by 0.51 points (0.03 per cent) to close at

1,719.82.

• The Cross Listed Index advanced by 0.11 points (0.11 per cent) to close

at 98.46.

<< Back to news headlines >>

Unilever Caribbean completes sale of spreads business Saturday 21st July, 2018 – Trinidad and Tobago Guardian

Unilever has completed the sale of its baking, cooking and spreads

business to global investment firm Kohlberg Kravis Roberts LP (KKR) for

US$8.1 billion on a cash-free, debt-free basis.

The spreads business includes brands such as Flora, Country Crock, Blue

Band, I Can’t Believe It’s Not Butter, Rama and ProActiv. It represents

about 7 per cent of Unilever’s global business, which will continue to own

hundreds of brands, including soap powder Persil, food product Knorr,

Lipton tea and Ben & Jerry’s ice-cream.

Unilever Caribbean Limited’s Board of Directors agreed to the sale of the

company’s spreads business to KKR last April and the transaction was

completed on July 2.

In a notice posted to the T&T Stock Exchange yesterday, Unilever said the

assets sold include production and other tangible assets used primarily in

relation to the spreads business; distribution rights to spreads products in

T&T and export markets, inventories including all stock, and locally owned

intellectual property rights, including the Golden Ray Margarine

trademark.

Unilever Caribbean Limited will retain ownership of the site at Champs

Fleurs and the company has agreed to provide certain services to the

spreads business for a transitional period, Managing Director John De Silva

said.

Based in New York, KKR has approximately US$153 billion in assets under

management. The firm has a long history in the consumer sector with

investments in India’s Coffee Day Resorts and Chinese white goods maker

Qingdao Haier. Earlier this year, KKR bought majority control of vitamin

maker Nature’s Bounty.

Unilever employs some 169,000 people around the world.

<< Back to news headlines >>

SFCP delisted from the TTSE Saturday 21st July, 2018 – Trinidad and Tobago Guardian

Sagicor Financial Corporation 6.5 per cent US$1 Convertible Redeemable

Preference (SFCP) was de-listed from the T&T Stock Exchange (TTSE)

effective yesterday.

This follows an order of the T&T Securities and Exchange Commission

(TTSEC) dated June 29 under Section 45(1) of the Securities Act, 2012.

The de-listing order was granted by the TTSEC pursuant to an application

for de-listing made by the TTSE following SFCP’s obligation to redeem all

outstanding unconverted preference shares on the 5th anniversary of the

allotment date, or on July 18, 2016, at an price equal to the subscription

price.

The SFCP redeemed all unconverted outstanding preference shares in full

and ceases to have any preference shares issued and outstanding.

<< Back to news headlines >>

Farmers ready to take action against proposed agri project Saturday 21st July, 2018 – The Antigua Observer

Gameal Joyce, executive member of the National Coalition of Farmers

(NCF), is adamant that the time for diplomacy has ended and action

should be taken against the government’s proposed Chinese agricultural

project.

“At this point in time we cannot be talking anymore we have to actually

put something in place to put this project on halt until we get to meet with

the ministry We can no longer take the time to be diplomatic at this point

in time. We know that they have started the project without us. The train

has already left the station,” Joyce said as he explained the NCF’s take

on the controversial Chinese farming project on the Voice of the People

(VOP) yesterday on OBSERVER Radio.

He recalled that the general body of farmers had originally wanted to

stop the project but the decision was taken to go the diplomatic route

because the coalition did not want the farmers to come across as a

bunch of ignorant, unprofessional individuals despite the general

disrespect they claim was meted out to them by agriculture minister,

Dean Jonas.

Stressing that diplomacy has not really worked, the NCF executive

member explained that the body was invited to a meeting by the

permanent secretary within the ministry of agriculture but because the

meeting was on such short notice and the body was yet to meet and

review the document, they asked for the meeting to be postponed.

This was confirmed by NCF member, Linley Winter, who called into the

programme, stating that the ministry had set the date for a meeting with

the NFC for July 3 but the time given to prepare for the meeting was just

too limited.

Winter added that he believes that there will be benefits to the local

farmers coming out of this project but farmers need to know what those

benefits will be. He also referred to the issue of intellectual property rights

in which the document states that intellectual properties will be shared by

both parties but fails to give any further breakdown.

Joyce sought to make it clear that farmers are not against development

but the NFC is seeking to meet with officials of the ministry of education to

give their input and get an understanding as to how this project will affect

the farming community and by extension, the people of Antigua and

Barbuda.

He stressed that the vague nature of the document made it difficult to

understand the parameters of the project.

<< Back to news headlines >>

Agriculture suffers $13M in losses; help arrives Friday 20th July, 2018 – BVI News Online

The government is planning to pump $300,000 into the agricultural sector

in response to last year’s hurricanes, which caused local agriculture

workers to suffer collective losses of roughly $13 million.

These were the findings of a Department of Conservation and Fisheries

assessment, which Agriculture Minister Dr Kedrick Pickering released in the

House of Assembly on Thursday.

Dr Pickering said the figures represent the ‘state’ of the fishing and farming

sectors combined.

In the fishing industry, the assessment was done among 78 fishermen

whose losses ranged from fishing pots to their fishing boats.

“The monetized losses range from just a couple thousands of dollars in the

case of fish pots, to approximately $70,000 in the case of a vessel. The

total value of these losses adds up to approximately $3 million,” he said.

He said the sports fishing sector suffered a ‘major setback, as a result.

The assessment said local farmers suffered a combined loss of

approximately $10 million.

It collated information from 126 farmers who lost livestock, poultry, crops

and infrastructure.

“The entire territory suffered greatly. Therefore, the available funds

needed to be spread across many areas to jump-start the recovery

efforts. The combined industry of agriculture and fisheries was allotted

$300,000 to assist the farmers and fishermen,” he explained.

Dr Pickering said, after ‘much deliberations’, the sector will see more

assistance.

Stakeholders will be assisted with water tanks, fencing posts, fencing wire,

and other farming supplies. The Department of Agriculture will also be

making low-cost fruit trees available to farmers.

Fisherfolk will also receive fish pot wire, hooks, ropes, lines, among other

things.

The minister said, as the country continues on its rebuilding thrust, it will be

difficult for ‘fragile’ sectors such as agriculture which does not carry

insurance to bounce back.

He vowed to continue to ‘explore all available opportunities’ to rebuild

and grow the sector.

Back in December, Dr Pickering told farmers and fishermen at a public

meeting, they had been effectively placed at the bottom of the priority

list and may not see any form of financial assistance till the ‘second

quarter’ of 2018.

<< Back to news headlines >>

FIA: Money laundering prevalent, 530 suspicious activity reports in 2016 Monday 23rd July, 2018 – BVI News Online

Five hundred and thirty Suspicious Activity Reports (SAR) were made to the

BVI Financial Investigation Agency (FIA) back in 2016.

The FIA’s recently-released 2016 annual report said the figure represents a

77 percent increase when compared to the number of suspicious activity

reports received in the previous year.

The annual report said most of the SARs were linked to alleged money

laundering activities in the British Virgin Islands.

Of the 530 suspicious activity reports, 238 were about money laundering,

82 were reports of fraud, and 53 were tax evasion reports. Another 29

were corruption reports, 15 were reports of bribery, and 60 were reports of

unknown nature.

“This suggests that money laundering is the main criminal activity allegedly

perpetrated by criminals associated with BVI business companies,” the

2016 annual report said.

A breakdown of the second most prevalent types of offences reported in

2016 shows incidents relating to drug trafficking, embezzlement, extortion,

and a number of other financial crimes.

The FIA conducted subsequent investigations and shared information

about suspicious activity reports with several foreign and domestic

partners including the Financial Services Commission, local and

international law enforcement agencies, and foreign financial

investigation units.

The information was shared based on multiple Memorandums of

Understanding (MOU) the FIA has signed with local and international

agencies to tackle financial crime.

670 requests for information

In 2016, the FIA received 670 requests for information from some 72

different signatory countries, the annual report said. Most of these requests

came from the Russian Federation which made 44 requests, the United

Kingdom with 39 requests, and the United States with 32.

Locally, the FIA received requests for information from the Royal Virgin

Islands Police Force, Her Majesty’s Customs, the Governor’s Office, the

Attorney General’s Chambers, the Financial Services Commission, and

others.

The FIA is yet to release an annual report for 2017. But, data shows the

number of suspicious activity reports to the FIA has been steadily

increasing for the last few years.

There were 217 reports in 2014 and 308 in 2015.

The FIA’s 2016 annual report has been released amid the UK’s

amendment to their Sanctions and Anti-Money Laundering Bill, which is

forcing the BVI to implement what are known as public registers of

beneficial ownership by December 31, 2020.

<< Back to news headlines >>

Labour to get major overhaul, modernized processes Friday 20th July, 2018 – BVI News Online

The Labour Department is expected to undergo a major overhaul, Labour

Minister Dr Kedrick Pickering has said.

The overhaul will include computerising sections of the Labour process

and extending what can be described as isolated treatment to

expatriates employed in senior executive positions.

“We are currently making provisions for senior executives’ work permits to

be processed at the Ministry [of Labour] with a view to a quicker

turnaround,” Dr Pickering explained.

He further said his ministry is “exploring the use of technology that will

allow photos to be uploaded to the work permit card”.

Dr Pickering said this new order of business will eliminate the need for

applicants to physically come to the Labour Department, particularly

during the renewal process.

Reasons behind changes

The changes, the labour minister explained, are among

recommendations from a consultant the ministry hired with support from

the Foreign and Commonwealth Office.

The consultant’s mandate was to review and offer solutions to the current

issues facing the local labour market.

Pickering further said the upgrade also ensures the ministry remains current

as government moves to rebuild smarter, greener, and more efficiently.

Moreover, it also served to align local standards with international best

practices across the board.

“For example, the Labour Code does not outline the steps to be taken

during natural disasters such as hurricanes, earthquakes, tsunamis, and

floods,” he noted.

He continued: “It does not make provision for flexibility within the labour

market, that is, enabling employees to work for another employer when

their primary employer suffers a temporary or permanent shutdown.”

He said the ministry, in tandem with the Labour Department “will ensure

that the supply of labour is commensurate with the level of development

in all sectors of the economy while being sensitive and responsive to the

needs of the labour market.”

The minister was at the time addressing Thursday’s sitting of the House of

Assembly.

Skilled workers Programme

A total of 1,710 skilled workers, mostly in the construction industry, entered

the territory after the onslaught of last year’s hurricanes.

Pickering said they came under the Skilled Workers Programme which was

implemented to ensure that the necessary manpower was able to enter

the territory in a timely manner.

<< Back to news headlines >>

Former BVIPA workers behind cruise pier audit delay Friday 20th July, 2018 – BVI News Online

Former BVI Ports Authority employees with intimate knowledge of the

cruise pier project are behind the delay of the audit being undertaken on

the project, says Premier Dr D Orlando Smith.

He told the House of Assembly on Thursday auditors KPMG had submitted

a ‘confidential draft’ of the report for management at the BVI Ports

Authority to review and make comments.

Those comments were then to be forwarded to KPMG but Premier Smith

said government has encountered some difficulties in completing the

task.

“It is my understanding the comments on the report have been provided.

However, some of the information requested and referred to in the report

… will need to be corroborated with persons no longer connected with

the BVI Ports Authority,” said Dr Smith, who is also Minister of Finance.

“However, I am assured that final comments will be sent to KPMG by the

middle of next week,” he added.

This is not the first time the Premier reported challenges in providing

information to the auditors. Roughly a year ago, Dr Smith told the House

that KPMG was made to do without a ‘small’ bit of information it had

requested. He then said other information the auditors had already

received would have been sufficient to continue their investigation.

When will audit findings be made public?

With the Premier’s latest audit update on Thursday, there is no clear

indication when the findings will be ready.

But, whenever the process concludes, Premier Smith said it will first be

submitted to Cabinet, which will then “make a decision as to when the

report will be made public”.

KPMG was contracted some two years ago to investigate the project

after it ended up costing $82.9 million; reflecting a cost over-run of more

than $30 million.

Dr Smith said no monies have been paid to KPMG for their services to

date. He, however, said the fees agreed to in the engagement letter with

KPMG totalled $131,000.

Government hired KMPG to investigate the multimillion-dollar cruise pier

project back in 2016.

The cruise pier was developed under the Smith Administration while former

NDP member Claude Skelton Cline was Managing Director of the Ports

Authority — the body which oversaw the project.

<< Back to news headlines >>

Costa Rica Credit Card Debt Doubles Friday 20th July, 2018 – Qcostarica

The balance of credit card debt doubled in the last eight years, going

from US$1.005 billion in April 2010 to US$2.095 billion in April 2018, the

Ministry of Economy, Industry and Commerce (MEIC) has revealed, by

means of a report prepared by the Directorate of Economic and Market

Research.

For their part, defaults of less than 90 days also showed an upward trend.

Since January 2016 and up to April of this year, the default balance has

doubled. Both indicators show that the amount of defaulted debt is

growing, which is critical because card issues are growing exponentially

(approximately 3% or 65,000 cards per quarter), especially in products with

higher interest rates, adds the official statement issued by the MEIC.

Regarding the trends reported, Erick Jara, director of Economic and

Market Research, explained that “… Quarterly card studies have shown

sustained growth in terms of card issues, and 70% of card types have an

interest rate that ranges between 40% and 50%. In addition to the above,

the balance of defaults of greater than 90 days has doubled in the last

four years, therefore, this situation is a reflection of a supply channel which

in general terms, is issuing cards without analysing customers properly and

on the other hand, users are accepting plastic cards without

contemplating the effect of getting into debt with a very high financial

cost. Therefore, the level of risk that the issuing entities are assuming, due

to the scarcity of discrimination in terms of issue of cards, is reflected in the

high interest rates.”

<< Back to news headlines >>

Walmart Announces Purchase of Perimercados, Super Compro, and

Saretto Thursday 19th July, 2018 – Qcostarica

Pending approval from regulating authorities, Walmart announced

Thursday the purchase Perimercados, Super Compro and Saretto stores

from Grupo Empresarial de Supermercados (Gessa).

Once authorization is received from the Comisión para la Promoción de

la Competencia (Coprocom) – Commission for the Promotion of

Competition of the Ministry of Economy, Industry and Commerce (MEIC),

the retail chain will begin an integration process so that the 52 points of

sale (POS) acquired under its standards and brands in the country.

More than 1,300 employees of the acquired stores will join the Walmart

team in Costa Rica.

“The combined operation of the Walmart and Gessa stores generates an

excellent complementarity to serve increasingly the Costa Rican market.

In this way, Walmart promotes its growth plans in the region, and the

current stores and collaborators of Gessa will be able to offer increasing

value to its customers,” said Cristian Barrientos, senior vice president and

general manager of Walmart Centroamérica.

Barrientos added that the transaction will represent an opportunity for the

suppliers of both companies to continue developing their commercial

activity, and potentially, can extend it to more establishments

countrywide.

“We are very optimistic about the social value that we will be able to

share thanks to this business, because customers will have greater

possibilities to save on their purchases, more associates will have the

opportunity to develop in a growing organization and, especially, we will

give greater possibilities for business to our suppliers,” added the senior

vice president.

The purchase is part of Walmart’s announced plans in mid-2017 to double

its operations in Costa Rica within five years.

In Costa Rica, Walmart of Mexico and Central America owns the Walmart,

Masxmenos, Maxipalí and Palí stores. The new acquisitions adds

Perimercados, Super Compro and Saretto to its retail outlets.

According to a report by Bloomberg last month, Walmart’s Killing It in

Central America. Bloomberg reported Walmart’s business in Guatemala,

Honduras, El Salvador, Nicaragua and Costa Rica is a growing part of the

retailer’s publicly traded Mexican and Central American business, Wal-

Mart de Mexico SAB, or Walmex. The region now accounts for almost one-

fifth of Walmex’s revenue, up from 14% in 2014.

The retailer’s sales in Central America more than doubled to US$5.2 billion)

in 2017.

In 2017, Walmart reported revenues of $5.7 billion in the Central American

region. Internationally, the company suffered at the beginning of 2018,

reporting a 27.7% fall in its net profit. The reduction was a consequence of

the burdens linked to the US tax reform.

<< Back to news headlines >>

Costa Rican Workers Can Be Legally Paid in Cryptocurrency Sunday 22nd July, 2018 – Bitcoin News

Employees in Costa Rica can receive part of their salary in cryptocurrency

and that wouldn’t be against the law. Certain provisions in the national

legislation allow companies to pay their workers not only with fiat money

but also with goods, and some legal experts believe cryptos can fit in this

category. Besides, Costa Rican laws provide for the use of commonly

accepted assets as means of payment.

Workers in Costa Rica may soon start receiving a portion of their salary in

cryptocurrency, local media reported. As far as Costa Rican law is

concerned, there is no reason this cannot happen. The country’s

legislation allows employers to partly remunerate their staff with goods

that are not currency, as long as the legal minimum wage is paid in

money. It also develops the concept of “quasi-money”, or any asset that

can be used as a means of payment and has been widely accepted as

such in the society.

“This is a trend that could take hold in the country,” said Rolando Perlaza

who is working at Nassar Abogados, a prominent law firm in Central

America. “This type of payment would in no way replace traditional or

liquid cash. It would rather become an incentive for the workers, who

could decide if they accept these currencies as payment for their

services,” the expert elaborated, quoted by the Costa Rican News. He

also emphasized that in any case employees are protected by article 166

of the country’s Labor Code.

The publication notes that in October last year, the Central Bank of Costa

Rica (CBCR) issued a directive which established that cryptocurrencies

are outside the national banking system. The document also indicated

that carrying out any type of commercial transactions with digital coins is

a “limited option” in the country. Along with that, the central bank

warned that those who use cryptocurrencies assume the associated

financial risks.

Costa Rica’s Growing Crypto Sector

Despite CBCR’s assessment, the local crypto sector has been developing

steadily in recent years with a growing number of merchants and other

businesses, including many hotels and companies from the tourism

industry, accepting cryptocurrencies as a legitimate payment method.

Costa Rica, which has remained relatively open towards business ventures

in the crypto space, has also seen a number of bitcoin ATMs popping up

in the capital San Jose and elsewhere.

According to the report, the Latin American country also offers favourable

conditions for crypto mining thanks to its renewable sources. “Our Costa

Rica-based crypto mining facility utilizes renewable energy options such

as solar and wind. We think renewable energy has to be an essential part

of any crypto related project. This green approach is good both for us

and for the planet and makes the new business opportunities even

better,” said Daniel Yépez, a local crypto entrepreneur. “Cryptocurrencies

are here to stay and we are embracing the changes,” added Yépez

whose company, SH Mining Technologies, specializes in providing cloud

mining services.

<< Back to news headlines >>

Barbados-New Zealand cooperation coming on agriculture Saturday 21st July, 2018 – Barbados Today

Prime Minister Mia Mottley has identified agriculture and health care as

areas in which she would like Barbados to “do some serious work” with

New Zealand.

Prime Minister Mottley expressed this desire on Thursday when High

Commissioner of New Zealand, Jan Henderson, paid her a farewell visit, at

Government Headquarters.

The Prime Minister said New Zealand had distinguished itself as being able

to attract some of its best and brightest students in agriculture.

Underscoring the importance of the sector, she insisted that it became

even more critical when a country was impacted by a hurricane or was

cut off from the rest of the world. She said a country must be able to feed

itself in case of a national crisis.

She pointed out that international trade was extremely important to

Barbados as it significantly impacted the design of domestic trade policy;

and disclosed that a session would be held shortly with Cabinet to

examine that area. She stated that those products indigenous to

Barbados, including the black belly sheep, had great potential, and

proffered the view that a credible manufacturing sector must be

developed from them.

During the wide-ranging discussions, Mottley said a lot of Barbados’ coral

reefs had died and as the country focused on rebuilding these diverse

underwater ecosystems, it wanted to take a leadership role as it worked

with other countries facing similar challenges.

The Prime Minister said Barbados’ relationship with New Zealand meant a

lot to her and that she looked forward to further strengthening it.

In the area of agriculture, Henderson promised that New Zealand would

assist Barbados wherever it could, and noted that some years ago, there

was a fundamental rethink of agriculture in her country.

The Prime Minister and the High Commissioner also discussed the

importance of the maritime sector and training opportunities in that area,

with Henderson saying that she recently had extensive discussions with

Minister of Maritime Affairs and the Blue Economy, Kirk Humphrey.

Those attending the meeting included acting Permanent Secretary in the

Prime Minister’s Office, Terry Bascombe, and Second Secretary in the New

Zealand High Commission’s office in Bridgetown, Ruth Delany.

<< Back to news headlines >

Barbadian Manufacturer Feels Effects of Government’s Default on Foreign

Debt Payments Friday 20th July, 2018 – Caribbean360

Caribbean LED Lighting Inc, one of Barbados’ fastest growing

manufacturers, has become one of the latest casualties of Government’s

decision to default on its foreign debt payments.

The decision to immediately suspend debt payment to international

commercial creditors was announced by Prime Minister Mia Mottley a

week after taking control of the reins of Government on May 24, as she

pointed to an out-of-control national debt in the order of BDS$15 billion

(US$7.5 billion) or 175 per cent of gross domestic product.

Due to that development, the Ontario-based export credit agency Export

Development Canada (EDC) implemented new restrictive measures to its

credit insurance coverage for Barbados, resulting in Canadian

manufacturers and suppliers that receive assistance from EDC demanding

upfront payment from Barbadian businesses when they make an order,

instead of giving them a grace period.

During yesterday’s Barbados Chamber of Commerce and Industry (BCCI)

luncheon at the Lloyd Erskine Sandiford Centre, which was attended by

the Prime Minister, founder and executive chairman of Caribbean LED,

Jim Reid, complained that his seven-year-old company was finding it

more expensive to do business.

Reid said while he understood why the debt restructuring was necessary, it

was affecting the overall cost of his operations.

“We get suppliers from seven countries and one of those is Canada, and

that contract for supply was underwritten by the export government

corporation, which is now withdrawing support for Barbados, which

means we cannot get any credit terms from the supplier,” he said.

“We have to pay up front. That is an extra cost to our business and we are

competing with very cheap, and I would say somewhat inferior products

from China.”

In openly complaining that “the law of unintended consequences has hit

us hard”, the businessman explained to Mottley that while “you did what

you thought was right for the country and I agree with you, . . . the

impact of that is hurting manufacturers here who [seek] credit terms with

suppliers”.

“We understand the Prime Minister had no other choice than to do what

she did and we support her decision. It is just that the pain when we are all

going to carry the load, sometimes the pain can hurt individual

companies differently and in this case it has really hurt us,” Reid later told

online newspaper Barbados Today, explaining that firms like his would

normally be given up to 60 days credit after ordering supplies, which

means they would usually be able to make payments after receiving their

shipments, manufacturing their products here and selling them.

“So you are talking about five to six months before we get our money, so it

makes it more difficult to do business . . . . We are growing, but this just

makes it difficult for us to do business in Barbados,” he insisted.

However, in response to those concerns, the Prime Minister was adamant

that her move was necessary given Barbados’ dire debt situation, which

she inherited from the previous Democratic Labour Party Government.

At the same time, she apologized to local firms who were feeling the

effects of the credit default.

“I am sorry. I appreciate the difficulty, but I would like also to give you the

confidence of knowing that in every phase where a country has gone

through debt restructuring, as long as they have taken the steps to

undergo a resumption of fitness that within two, three or four years, they

access international capital markets again,” the Mottley said.

“We don’t want to do like those countries that went through debt

restructuring, went back to bad behaviour and found themselves in a

second debt restructuring, . . . but we accept that there would have

been, regrettably, some unintended consequences, because we can’t

literally live how we were living, with debt, and not expect to have some

kind of pain or consequences,” she added, while offering to meeting with

Reid to further discuss the matter with a view to finding a possible solution.

Caribbean LED, which currently exports to 18 countries, recently won

contracts in Suriname and the Bahamas.

After starting operations here in 2011, the company quickly outgrew its

location and had to double its floor space in 2013, hiring about 30 people

at that time. The company then moved to another location and then to

its current one in February after it was forced to double its floor space

again. It employs 50 full-time workers and produces more than 1,000 bulbs

per day.

<< Back to news headlines >>

Major upgrade Friday 20th July, 2018 – Barbados Today

Five jet bridges, a rehabilitated runway, and an upgrade to several

departure gates, are among Government’s major expansion plan for the

Grantley Adams International Airport (GAIA).

Minister of Tourism and International Transport Kerrie Symmonds outlined

the plan today, though not providing a timeline for completion of the

project.

Delivering the feature address at the airport’s 80th anniversary logo

launch this morning, Symmonds said Barbados had one of the best airport

facilities in the world therefore the country should know its worth and

capitalize on it.

Warning that there was no room for complacency, he said the time had

come for Government to have a “candid heart-to-heart talk” with airport

officials and other stakeholders in an effort to upgrade the facility, which

started commercial operations back in 1938.

In that regard, said Symmonds, a carefully selected board “based on the

possession of a number of skills and not the basis of any partisan political

connection”, led by veteran broadcaster Vic Fernandes, and approved

on July 12, had been put in place to lead the upgrade project based on

a “three-pronged mandate”.

“The first one is to simply deliver the very best possible visitor experience

that can be found anywhere in the Eastern Caribbean. Secondly, the

board will be mandated to maximize the commercial potential of this

airport. And last but by no means least, to maintain the highest security

and safety standards that we can possibly attain,” he said.

Symmonds said the new board would embark on a “runway rehabilitation

programme” in November, pointing out that the lifespan of an airport

runway should be between ten and 15 years and Barbados’ 11,000 feet of

runway was at “a mature stage”, which required urgent steps to

redevelop it.

He gave the assurance that while work would begin at the start of the

busy winter tourist season, every effort would be made not to interrupt the

smooth flow of passengers.

“In addition to that the new board will be charged with the expansion of

the regional lounge capacity . . . in a similar vein we have to upgrade

Gate 14 and beyond,” Symmonds said.

Adding that greater emphasis would be placed on making Barbados fully

accessible to the disabled, the Minister of Tourism, whose Barbados

Labour Party Government was swept to power in the May 24 general

elections, which resulted in the ouster of the Democratic Labour Party-led

regime, said “therefore it means we have got to stop procrastinating on

the question of air bridges”.

“In that regard we are going to have to take a relook at the need to have

a new mezzanine floor created so as to accommodate five air bridges,”

the minister announced.

He said it was also critical that the airport maximizes its revenue intake

through the expansion of the retail space and establishment of new

cargo space.

“So there is much useful work to be done with respect to the physical

capacity of this airport and I am anxiously looking forward to working with

this new board who I am holding accountable from today onwards on

thinking out of the box, thinking creatively and working energetically

towards holding Government’s hand in partnership that will make these

things come to life as soon as possible,” said Symmonds, while reiterating

that he would be meeting with Prime Minister Mia Mottley and all airport

staff next Tuesday and Wednesday to discuss a range of issues.

Adding that the pilot project of the passport information kiosks would

begin next Monday in time for the increasingly busy Crop Over festivities,

Symmonds said this was a strategic move to determine what load it could

take and tweaks would be needed.

He also pointed out that Government would be moving ahead with a

planned civil aviation training school that was approved back in 2006 but

did not see the light of day.

This facility, he said, would be responsible for training, examination and

invigilation in several areas related to aviation.

<< Back to news headlines >>

$24.9 million hole Friday 20th July, 2018 – Barbados Today

The Government programme which provides loans to eligible Barbadians

pursuing further studies is owed nearly $25 million by students who have

not been meeting their commitments, according to the latest Auditor

General’s Report.

Auditor General Leigh Trotman said in his report, which examined the

period April 2009 to March 2017, that the Students Revolving Loan Fund

(SRLF) has $24.9 million in arrears from 1,546 outstanding loans as at March

31, 2017, with one student owing as much as $86,000.

The report suggested that slackness contributed to the ballooning arrears,

with the Fund failing in a large number of cases to send out reminders,

and when it did, it was quite tardy.

According to the Auditor General, only 56 per cent of reminder letters

were sent out on time and there was “less compliance with regard to the

issuance of letters at the six month and three month intervals”.

Of the 48 beneficiaries who should have received reminders at the six-

month stage, only 27 were notified, of which fewer than ten per cent were

issued on time, he found.

“The failure to carry out this process reduced the potential impact of the

fund in encouraging beneficiaries to repay their loans,” the report said.

The auditor general also found no evidence that action was taken to

place those owing in excess of $5,000 in arrears before the court of in the

hands of debt collectors, adding that on the 16 occasions that this was

done three of the beneficiaries paid the same month, four paid the

following month and one paid two months after contact was made.

However, after the audit, the process was refined with all letters being

issued in advance, while reminder text messages and emails were being

sent out during the month that payment was due.

According to the report, there were 67 loans in civil proceedings as at

March 2015, and by March 31, 2016, 153 loans, including those in civil

proceedings, were handed over to external attorneys. However, the

number had fallen to 93 as at March 31, 2017.

However, the SRLF said it had implemented procedures to ensure early

intervention and systems had been put in place to make sure officers

were being compliant.

“The SRLF is aware of the increased risk and has segregated this portfolio

of loans for special attention. In addition, new measures including the use

of bailiff services have been introduced to assist in its collection effort,” it

said.

The Fund’s resources was placed under pressure the year the then

Democratic Labour Party administration imposed tuition fees Barbadians

pursuing studies at the University of the West Indies.

The report states that the number of loans approved skyrocketed by 236

per cent to 1,169 between April 2014 and March 2015, up from 347 the

previous year. Altogether the Fund approved $24, 904,395, double the

$12,477,886 for 2013/2014.

“This increase resulted from a major expansion in the amount of loans

approved for students attending the University of the West Indies during

the same period April 2014 to March 2015, when students were required to

pay tuition fees for programmes pursued at the university,” Trotman said in

his report.

However, with the introduction of the fees contributing to a drop in

enrolment at the university, the number and value of loans approved fell

steadily during the two-year period from April 2015 to March 2017.

Then, the Fund approved 976 loans – down 17 per cent – totalling

$23,681,284, a five per cent decrease.

The number of loans fell even further in 2016/2017, with the SRLF granting

544 loans valued at $12,572,951, a decrease of 44 per cent and 47 per

cent respectively.

<< Back to news headlines >>

500 more to be employed in local government ministry's summer

programme Monday 23rd July, 2018 – Jamaica Observer

The Ministry of Local Government and Community Development says it will

increase the number of participants in its 2018 Youth Summer Employment

Programme by 500, which is to be launched on Thursday, August 9.

According to Minister Desmond McKenzie, last year 2,500 young people

were employed in the programme, but the number will grow to 3,000 this

year.

Speaking at the inaugural Local Governance Conference in Montego

Bay last week, McKenzie stated that like last year, a number of the

youngsters employed in the programme will participate in the auditing of

street lights.

It was reported last year that the ministry owed the Jamaica Public

Service Company (JPS) approximately $5 billion for street lights.

The minister noted that the municipalities are faced with a colossal street

light bill, thus the auditing exercise will not be merely counting the number

of existing street lamps, but to determine the number of them that are

working.

This, he further noted, will require them working at nights, therefore the

ministry has made contact with the security forces to allow the youngsters

access in communities where enhanced security measures are enforced.

McKenzie underscored the importance of gathering the data from the

audit, as the ministry is faced with a monthly expense of $700 million for

street lights and garbage collection services.

“When you look at the presentation on how we performed last year for

property taxes and how we are performing this year in terms of the target,

it tells you that if we continue on the same trend we are going to run into

some serious challenges,” he said.

Under the summer employment programme “the young people will also

assist the local authorities” in identifying another source of revenue that

has eluded them — the area of trade licences.

“This programme will therefore see each councillor having 15 individuals

from their respective divisions, and mayors 25 participants,” McKenzie

announced.

The local governance conference, put on by the ministry at Jewel

Grande Montego Bay Resort and Spa in Rose Hall, St James, from July 17-

19, was staged under the theme: 'Strengthening Responsiveness and

Accountability within the Local Governance Framework'.

McKenzie said that the conference was a “test run” for the Regional

Platform for Disaster Risk Reduction in the Americas conference to be

staged in Montego Bay in July 2020, which will bring together key players

from North, South, and Central America, as well as the Caribbean,

involved in disaster risk-reduction and resilience building.

<< Back to news headlines >>