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WEDNESDAY, FEBRUARY 8, 2017
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‘Ready to pull trigger’ despite Memories loss By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Norwegian receives approval to sail to Cuba.
Cruise line drops Nassau, Freeport in favour of Cuba By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A major cruise line yesterday announced it was swapping regular calls on Nassau and Freeport for an overnight stay in Havana, a move that underscores the increased competitive threat to Bahamian tourism from warmer US-Cuba relations. Norwegian Cruise Line, in a statement issued to the media, said 25 four and fiveday cruises during the 2017 second half will now enjoy “an overnight stay in Cuba’s historical and culturallyrich capital of Havana”. However, Tribune Business has obtained additional information showing that all-day calls on Nassau and Freeport have been dropped to make way for
25 NCL cruises to feature ‘Havana overnight’ Only private island call in Bahamas remains Move underscores Cuba’s competitive threat Havana, dealing a major blow to all Bahamian industries that depend on cruise passengers. Those sectors that will be impacted by the potential loss of customers, revenues and profits include Bay Street’s retail and See pg b6
Brewery unveils $2m warehouse expansion The Bahamian Brewery and Beverage Company yesterday unveiled its latest $2 million expansion through the addition of a new warehouse, a move likely to create around 30 jobs. James ‘Jimmy’ Sands, the company’s president and founder, unveiled its third phase expansion as the Brewery celebrates a 10th anniversary in business. The warehouse, which is being constructed in the industrial park area, is required to meet increased demand for the Bahamian
Move to add 30 jobs, take staffing to 130 in 10 years Brewery and Beverage Company’s products, and its securing of the nationwide distribution contract for all Anheuser Busch brands. “When I chose Grand Bahama for my brewery, I did so for its geographical location and for the benefits,” said Mr Sands. See pg b4
Port Lucaya in fifth month of rent discounts By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Port Lucaya Marketplace has entered the fifth month of a ‘rent discount’ initiative to ease a postHurricane Matthew burden for tenants that has now been exacerbated by Memories’ pull-out. While “upbeat” about the Marketplace’s longerterm prospects (see other article on Page 1B), its principal, Peter Hunt, said the loss of Memories and its 500 rooms, along with 600 hotel jobs, represented bleak news for Grand Bahama. “It is a worrying time, I’ll be honest with you,” Mr Hunt told Tribune Business
Cuts ranged from 33-50% through January Marketplace supports tenants ‘in difficult times’ Owner concedes ‘worrying time’ in short-term in relation to Memories’ departure. “We opened the Marketplace three weeks after the storm hit us. We were back up and running, but the resorts stayed See pg b4
Port Lucaya Marketplace’s principal yesterday said he “hasn’t run away” as a result of Memories pull-out, and remains willing to invest “many tens of millions” in developing an “Atlantis-style” water park destination in Freeport. Acknowledging that Memories’ withdrawal was nothing but “bad news” for the Marketplace and its tenants in the short-term, Peter Hunt told Tribune Business
Port Lucaya chief unveils ‘Atlantisstyle’ growth plan Deal agreed with GBPA for resort, in talks on marina Wants to work with Wynn, Sunwing on revival But Hutchison exit remains ‘key to treasure chest’
that he was looking beyond “the doom and gloom”. Mr Hunt confirmed that he had spoken to both Memories’ immediate parent, Sunwing, and the Canadian-based real estate developer, Wynn Group, about partnering for an Atlantis-type development should the latter be successful in its bid to acquire the Grand Lucayan property. He conceded, though, that “the sticking point” to plans that could “transform Freeport overnight” remained the Grand Lucayan’s owner, Hutchison Whampoa, and whether it
would be willing to sell the city’s largest resort property on acceptable terms. Mr Hunt urged Hutchison to “pull the trigger” and allow Wynn, Sunwing and himself to move forward with their potential alliance, which he pledged would make Freeport and its tourism product “better than it was before”. “We haven’t run away. We’re still prepared to pull the trigger if the resort [Memories] is closed,” Mr Hunt told Tribune Business, confirming that planning work continued on his See pg b5
VAT speech joke ‘beyond the pale’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A well-known fiscal hawk yesterday said it was “beyond the pale” for the Bahamian political and business elite to brush off the Government’s financial woes as a joke. Rick Lowe, an executive with the Nassau Institute think-tank, said attempts to portray the controversial ‘Where the VAT money gone’ speech by Michael Halkitis as mere entertainment for PLP supporters “makes a mockery” of how serious the situation is.
Fiscal hawk: ‘Mockery’ to suggest entertainment Asks: ‘When will we grab the bull by the horns’ ‘Time for the Govt to get a handle on fiscal matters’ He added that this was “bound to cause concern” among the credit rating agencies that have down-
graded the Bahamas’ creditworthiness to ‘junk’ status, as well as this nation’s external creditors and potential investors. “It’s time for some levelheaded discussion,” Mr Lowe told Tribune Business. “To continue to make a mockery of it all... Bahamian taxpayers didn’t ask to be in this mess. “It’s disappointing when people so far above my pay grade say we’re just joking about this. It’s beyond the pale. When do we grab this bull by the horns and say enough is enough?” Mr Lowe did not state who he was referring to, but his
remarks were likely aimed at Sir Franklyn Wilson, after the businessman on Monday told Tribune Business that Mr Halkitis’s VAT address should be treated like all other convention speeches - as “entertainment”, rather than a serious discussion of national affairs. “I don’t listen to convention speeches to try and understand what is going on,” Sir Franklyn told Tribune Business. “I go to a convention to be entertained, not to get information about what is really happening. You get all the dancing, music and See pg b6
PAGE 2, Wednesday, February 8, 2017
THE TRIBUNE
Bahamian businesses to enjoy ‘Tru’ benefits The upcoming Tru Tru Bahamian festival will benefit local businesses as well as patrons, enabling them to expose consumers to their products. The festival, which will be held at the John Watlings Distillery, is the brainchild of the Bahamas Hotel
and Tourism Association (BHTA), in partnership with the Ministry of Tourism and other corporate sponsors. Candis Marshall, of Mega Mergers, will be one of the vendors displaying her comany’s jewellery, belts, handbags and prod-
ucts made from recycled tires. Revealing that she was still reaping the benefits of the first Tru Tru Festival, Ms Marshall said: “Working along with BHTA has been a dynamic experience. It opens up the doors for my products to get a more dynamic platform. “In working with the Association you get to test your product, or try your product, with people from different walks of life and having very different experiences, so it gives you more input that helps you to expand your products. I can’t wait for the festival and
what’s next.” Tiffany Barrett, of Tiff’s Gallery, said she was also happy to participate. “The possibilities are endless,” Ms Barrett added. “I have always been a patriot, and so if this is how I can contribute to my country then I am happy to do so. These vendors are just two of the 72 expected at the Tru Tru Bahamian festival. The festival, which is in its second year, seeks to bring together all the flavours of the Bahamas, along with local entertainment and fun for children. Carlton Francis, chair-
man of the Tru Tru Bahamian Festival, said the event was the ideal platform for budding Bahamian businesses. “These are our artists, craftsmen, food and beverage vendors and, from their eyes, they have created a platform where they can truly express themselves and connect with our customers,” he said. “People are travelling more and more for authentic experiences, and they are travelling more and more, and they want to experience us. This festival gives them opportunity to do that.”
Joy Jibrilu, the Ministry of Tourism’s directorgeneral, said: “This is such a special event on our calendar. Many in the region can brag about sun, sand and sea, but what gives us the edge? “One of the things that truly does, and what we are recognised for around the world, is our culture – our music, our heritage, especially our food, and the Tru Tru Festival exemplifies that and it speaks to what we need to be doing more of.” Pictured after a press conference held at the Ministry of Grand Bahama, are James ‘Jimmy’ Sands, CEO of Bahamian Brewery and Beverage Co., Hon. Micheal Darville, Minister of Grand Bahama and Melvin Seymour, Permanent Secretary for the Ministry of Grand Bahama. “I am thrilled to be here with Jimmy today,” said Minister for Grand Bahama, MP Michael Darville. “I was pleased to be here in 2014, when Jimmy announced phase two of its multi-milliondollar expansion too. This recent and third investment shows his commitment to the Grand Bahama and shows that locals business are still growing and expanding here despite the wrath of Mother Nature and her hurricanes.” Photo/Lisa Davis, BIS for Barefoot Marketing
Caribbean signs deal with Airbnb The Caribbean Tourism Organization (CTO) yesterday said it had signed an agreement with Airbnb to develop a set of policy principles and recommendations on online vacation rental marketplace for regional governments and other stakeholders. The agreement was signed at the CTO’s headquarters by its secretary-
general and chief executive, Hugh Riley, and Airbnb’s Shawn Sullivan, public policy director for Central America and the Caribbean. Both organisations will share data and studies with policymakers about the positive impact of the online vacation rental marketplace in the Caribbean, and identify ways to make it more inclusive. The deal ultimately seeks to broaden the benefits of tourism to non-traditional actors, attract new players and focus on providing unique travel and cultural experiences to visitors. “The CTO is establishing a basis for mutual cooperation with Airbnb,” Mr Riley said. “It is important for us to examine all aspects of this important segment of the sharing economy. “We believe that by clearly understanding Airbnb’s massive influence in capturing consumers’ interest in unique accommodations, we will be in a position to properly advise our members and to allow the Caribbean to achieve
the goals of year-round profitability, visitor satisfaction and sustainable tourism development.” The agreement will also provide to the CTO an economic analysis of Airbnb’s impact on local economies. By reviewing Airbnb’s aggregate data, key stakeholders will be briefed on the value of peer-to-peer review mechanisms. At the same time, Caribbean governments and other stakeholders will learn about the long-term benefits of the sharing economy - home sharing, in particular. Currently, there are 41,000 vacation rental listings across the Caribbean. A typical host in the Caribbean earns around $3,900 per year. The agreement will also help to identify new ways to market the Caribbean as a region and grow the tourism industry. “This is an exciting partnership for Airbnb. We look forward to working with the CTO to develop policy recommendations for regional governments and other stakeholders on the sharing economy. The Caribbean is an impor-
tant and growing market for Airbnb, and we expect continued growth here,” Mr. Sullivan said. Airbnb will continue promoting tourism and highlighting Caribbean history and culture. The strategy focuses on the diversification of the tourism industry, and the expansion of economic opportunities for the Caribbean people. The Airbnb deal with the CTO come after Bahamian realtors recently urged the Government to better regulate the growing online tourist rental market to prevent the loss of tax revenues, while also ensuring Bahamians better access entrepreneurial opportunities. Mario Carey, president and chief executive at Better Homes & Gardens MCR Bahamas, explained: “Airbnb is going to shift the tourist experience in the Bahamas; in fact, it’s already doing it. Many people are not into the hotel experience any more. A lot of people want to experience the islands; they want to stay in a house and have See pg b3
THE TRIBUNE
Wednesday, February 8, 2017, PAGE 3
Marathon Bahamas in $2.5m spending boost By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
Organisers of Sunshine Insurance Marathon Bahamas (SIMB) yesterday disclosed that this year’s event helped generate just over 1,800 room nights and an estimated $2.5 million in visitor spending. The event, which is now in its eighth year, drew 524 international participants from 21 countries. Those countries included the UK, Canada, Germany, Italy, the Philippines, the US, Spain, Australia, Austria, Chile, Argentina, Brazil, France, Hong Kong, Japan,
Event generates over 1,800 room nights Sweden, Trinidad, the US Virgin Islands, South Africa and New Zealand. Rogan Smith, marketing coordinator for Sunshine Insurance, confirmed to Tribune Business that the race weekend generated a total of 1,815 room nights and estimated tourism expenditure of more than $2.5 million. “For Sunshine Insurance Marathon Bahamas, the average length of stay was 3.5 nights. An average of
4.1 people were in a party, which translates to 1,717 persons. We have consistently found that runners from the US are travelling to our event and opting to remain in the Bahamas to take advantage of the Martin Luther King holiday weekend,” Ms Smith said The Sunshine Insurance Race Weekend, held on January 14-15, is staged in partnership with the Susan G. Komen Bahamas Race for the Cure 5K. It is considered one of the nation’s leading annual sports tourism events, providing a much-needed resort industry boost during a lull in the winter calendar.
FNM deputy seeks Govt reassurance on GB hotels By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
The FNM’s deputy leader yesterday urged the Government to provide reassurance on the fate of Grand Bahama’s major hotels, telling this newspaper: “We don’t see an end in sight quite yet.” K P Turnquest, the east Grand Bahama MP, said: “These are very serious times in Grand Bahama. our tourism product has taken a very serious hit. Now in excess of 500 people have been put out of work. “I am happy that the company is committed to making the severance en-
titlements, which will go some ways to alleviate some of the pain. However, that will shortly run out.” He added: “I don’t know what provisions the Government has put in place with respect to the unemployment benefit that was to cushion further these losses while people look for employment. Unemployment on the island was very high prior to the hurricane and this now adds a whole new set of people to that list, with very little prospect for employment in the short term.” Memories’ operator, the Sunwing Travel Group, confirmed its withdrawal from Grand Bahama’s
Caribbean signs deal with Airbnb From pg B2
a cultural experience, and not have to pay for every single meal. “The Airbnb model is very good for our business, and I think that the Government needs to get
a handle on that because they are missing a lot of revenue. They know that hotel revenue is down because the owners of Airbnb aren’t paying room tax, and there is no reason why they should not be able to col-
resort market last week, blaming a lack of co-operation and obstacles placed in its way by its landlord, Hutchison Whampoa. The company is now paying its employees redundancy and other benefits due to them, having this week taken out an advertisement announcing the payment process. Mr Turnquest added: “While we hear of renovations planned for the property, we know that there is nothing happening up to this point. It is very discouraging because this property is not only a significant employer but also is symbolic of one of the last remaining tourism hopes that we have. “Connected to this
property is a casino which had closed, and despite the promises still has not found a new operator, and so those persons have lost their jobs.” Sunwing and its subsidiary, Blue Diamond Resorts, slammed Hutchison Whampoa for having sought to impose “exorbi-
lect that. “There has to be a system whereby those persons renting out their homes are paying room tax to the Government,” Mr Carey emphasised. “The Airbnb business in Harbour Island is explosive. It has always been. There needs to be an understanding of the market, and incentives set to balance the investor’s abil-
ity to buy and the Government’s ability to receive revenue.” While the 10 per cent room/occupancy tax was eliminated at end-2014, the Government is likely to be losing out on other revenue streams as a result of Airbnb’s growth, especially the 7.5 per cent Value-Added Tax (VAT) that replaced it.
From left: Airbnb’s Shawn Sullivan and CTO’s Hugh Riley sign a landmark agreement.
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K P Turnquest
tant” and “totally unacceptable conditions” on its bid to carry out post-Hurricane Matthew restoration work. The two companies, in a statement, said they had “taken on the significant financial burden of compensating and re-protecting customers, as well as running an air programme with limited accommodation options as a demonstration of goodwill and commitment to the people of Grand Bahama island”. “When you look at the Port Lucaya Marketplace, it, too, is suffering significantly as a result of the closure of these hotels. There are a number of businesses that provide services to the
hotel and those connected to the hotel, tour operators and the like, who have had to put staff on reduced hours as a result of this closure,” said Mr Turnquest. “We are going through a very serious time and no one has been able to assure us that there is going to be some kind of a rebound in the near term. We need someone to speak to us for sure to let people know what the plans are so they don’t lose hope and stay in the game, if you will. We don’t see an end in sight quite yet. Everyone is trying to manage their businesses and do the best they can to hold on while we look for some kind of rebound.”
PAGE 4, Wednesday, February 8, 2017
THE TRIBUNE
Brewery unveils $2m warehouse expansion
From pg B1
“I grew up with my father in the liquor business, under Butler and Sands. He supported me in this new business, and now my children are working with me. Three generations of Bahamians all working in a 100 per cent Bahamian-owned brewery and corporation. “Like my Dad I believe we Bahamians can do what others can, and I set out to prove it. I must give credit to my staff and colleagues for all their work in making such a success of the business and allowing this expansion.” Mr Sands made the announcement with Dr Michael Darville, minister for Grand Bahama, who used it show that investor confidence in the island has not disappeared despite Hurricane Matthew and the Memories resort pull-out.
The Bahamian Brewery and Beverage Company opened in 2007 with just 14 staff and an initial investment of some $15 million, and Dr Darville said: “Over the years the staff count has grown to some 120 persons, the investment has tripled, and the Brewery is making a major economic impact to the island of Grand Bahama.” Dr Darville said Mr Sands’ tinvestment was a “clear indication that the Grand Bahama economy, even though it has been impacted by Hurricane Matthew, local businesses are still going on with initial investment”. Mr Sands said his decision to return to the beverage industry was based on the fact that “it was being monopolised”. He saw himself as bringing the industry “back to the Bahamian people”.
Port Lucaya in fifth month of rent discounts From pg B1 closed. “It’s been very difficult for us, especially the tenants. It’s [the Memories pull-out] now very bad news for the island, there’s no doubt about it, with the
loss of jobs. The businesses in the Port Lucaya Marketplace will struggle; they used to get a lot of business from it.” Memories, and Hutchison Whampoa’s Grand Lucayan property, provided a
PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, BRENDA LEE MILLER of Stapledon Gardens, New Providence, Bahamas intend to change my child’s name from LOURDES TRINITY MILLER to LOURDES TRINITY SANDS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742,Nassau Bahamas no later than Thirty (30)days after the date of publication of this notice.
Dr Michael Darville, minister for Grand Bahama (centre) congratulates James Sands (left), president of the Bahamian Brewery and Beverage Company, on the announcement of a further $2 million expansion to his Queen’s Highway-based plant. Also pictured is Melvin Seymour, permanent secretary at the Ministry for Grand Bahama. key source of business for Port Lucaya Marketplace’s restaurant and retail tenants, along with cruise passengers and residents. However, since the early October devastation inflicted by Hurricane Matthew, just 200 rooms at the Grand Lucayan have come back on line. Together with Memories, around 1,500 rooms have been removed from the island’s inventory.
Describing this loss as “very sad”, Mr Hunt confirmed that as landlord he had moved to ease the financial burden on Port Lucaya Marketplace tenants ever since the hurricane by discounting rental payments. “We’re still doing it now,” he told Tribune Business. “Obviously, for the month of October we didn’t charge any rent. We charged 33 per
NOTICE
NOTICE is hereby given that WILLBEN FRANCOIS of Laird Street, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 1st day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas. NOTICE GRAND MANTRA MANAGEMENT CORPORATION N O T I C E IS HEREBY GIVEN as follows: (a) GRAND MANTRA MANAGEMENT CORPORATION is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 23rd January, 2017 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Leeward Nominees Limited, Akara Building, 24 de Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands. Dated this 8th day of February, A. D. 2017 _________________________________ Leeward Nominees Limited Liquidator
cent for November, and 50 per cent of the rent thereafter to work with the tenants to support them and help them come out of these difficult times. “We’ve lost a few tenants, gained a few tenants, and are at 95 per cent fully let.” Mr Hunt added that Matthew’s Category Four winds had inflicted “extensive damage” on the Port Lucaya Marketplace, with roofs, structures and lighting among the areas that took the full brunt. He said some of the damage was not easily visible to the naked eye, and was
greater than it initially appeared. “We’re starting to do this major repair work in six to eight weeks,” Mr Hunt told Tribune Business, acknowledging that the shortterm outlook for Freeport’s tourism product and wider economy was not promising in the wake of Memories’ withdrawal. “Immediately, it’s bad news; don’t get me wrong,” he agreed. “It’s very sad people have lost their jobs. Port Lucaya will suffer losses in traffic, and we will all have to work hard to make this come off.”
Legal Notice NOTICE COLDCREEK LTD NOTICE IS HEREBY GIVEN as follows: (a) Coldcreek Ltd, is in dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 7th February, 2017 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Shareece E. Scott of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
Shareece E. Scott Liquidator
Legal Notice NOTICE TRAMBAY INVESTMENTS LTD NOTICE IS HEREBY GIVEN as follows: (a) Trambay Investments Ltd, is in dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 7th February, 2017 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Shareece E. Scott of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
Shareece E. Scott Liquidator Legal Notice NOTICE BARECREST HOLDINGS LTD NOTICE IS HEREBY GIVEN as follows: (a) Barecrest Holdings Ltd, is in dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 7th February, 2017 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Shareece E. Scott of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.
Shareece E. Scott Liquidator
THE TRIBUNE
Wednesday, February 8, 2017, PAGE 5
‘Ready to pull trigger’ despite Memories loss From pg B1 expansion strategy. Disclosing that he acquired the Port Lucaya Marketplace as the first step in a growth plan that involved other assets in the area, Mr Hunt said an agreement had been reached with the Grand Bahama Port Authority (GBPA) to acquire the Port Lucaya Resort & Yacht Club. He added that talks were continuing with the Port Lucaya Marina’s principals, Preben Olsen and Tom Gonzalez, over his potential purchase of their facility and an accompanying tract of land, known as ‘Tract J’. Should these plans come to fruition, Mr Hunt said he would possess the neces-
sary foundation to develop a water-based theme park and associated attractions in the Port Lucaya area, a venture that could create hundreds of Bahamian jobs, These assets, he added, would complement a Grand Lucayan resort under new ownership, and with Memories and its Blue Diamond Resorts management company restored as hotel operators. Mr Hunt, though, acknowledged that plans for such a renaissance were dependent on Hutchison Whampoa’s agreement and willingness to exit from the Grand Lucayan. “The sticking point is Hutchison,” he told Tribune Business. “We want to
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work with Wynn, Memories. Hutchison need to pull the trigger and let us get on with what we want to do. “Hutchison is the key to the chest. Everyone is here. This is the first time Grand Bahama has had three investors that are serious - my group, the Wynn group and Sunwing - with the money and capability to make it go. “My group has the money, team and expertise to do the attractions side. It’s the first time ever in Grand Bahama. The Government needs to talk to us and say: ‘Boys, sit around the table and let’s make this work’.” Tribune Business previously revealed that the Wynn Group, which is also eyeing a $65 million condominium development at Goodman’s Bay in Nassau, had teamed with Hard Rock and Memories/Sunwing to submit a bid to acquire the Grand Lucayan. This newspaper was told earlier this week that the offer, said to be around $110 million, was ‘still on the table’ and awaiting a response from Hutchison Whampoa. Expressing pessimism, one source familiar with the situation said: “It doesn’t look good unless Hutchison blinks. But Hutchison don’t blink normally. I think they’ve got problems.” Obie Wilchcombe, minister of tourism, and Dr Michael Darville, minister for Grand Bahama, both last
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week confirmed that the Government was continuing negotiations with both Hutchison Whampoa and Memories, notwithstanding the latter’s pull-out. While almost 600 Bahamians were said to have lost their jobs as a result of Memories’ pull-out, Sunwing has consistently hinted in its statements on the issue that it is seeking to return to Grand Bahama as a resort operator. This likely refers to the tie-up with Wynn on the Grand Lucayan bid, as Memories is unlikely to return as tenant of Hutchison Whampoa, given the falling out between the two sides over the post-Hurricane Matthew repairs. While agreeing that the Memories closure, and associated job losses, represented a devastating economic development for Grand Bahama in the short-term, Mr Hunt said it had not distracted him from his ultimate goals. “We are still looking at our expansion, with a project at the Port Lucaya Resort & Yacht Club,” he told Tribune Business. “We’re still looking very heavily at it. “We have a team of guys, ex-Disney who are based in Orlando, working for us on developing some sort of water park attraction. “We’re still talking to the Port Lucaya Marina guys, Preben Olsen and Tom
Gonzalez, and we’re still looking at buying that and doing a mega marina and water park attraction.” Mr Hunt expressed hope that if he progressed with his projects “it may spur someone on to buy the Grand Lucayan”, given that its value - and that of the overall area - will have been enhanced. “We still believe in Grand Bahama, still believe in the island, and are looking to invest money in the Port Lucaya Resort & Yacht Club, which we have under agreement with the GBPA,” he added. “We’re just about to close a deal on it now, but the GBPA Board and shareholders have been very supportive in working with us to make this bigger development happen. “We’re still quite prepared to invest our money in creating at Atlantis-style water park attraction that will satisfy the cruise people that come off Carnival, those staying at the Grand Lucayan resort, and satisfy locals.” With just 200 rooms open at the Grand Lucayan, that property’s partial closure, combined with Memories’ pull-out, has cost Grand Bahama some 1,500 hotel rooms. Mr Hunt, though, said he did not need the hotels to proceed with his plans for Port Lucaya, as the cruise passengers and local
customers would provide enough consumer traffic. He added that his project would complement the plans of a new Grand Lucayan owner, providing the water-based attractions, retail, dining, canal and beach experience that would combine with the hotels and casino. The Port Lucaya Marketplace principal said he had already reached out to Wynn to inform it about his desire to partner “when the time is right”, and if the Grand Lucayan bid comes off. “I’m fairly upbeat about it,” Mr Hunt added, saying Freeport and its tourism product will be “a different animal, a different beast” if his vision comes into being. “I bought Port Lucaya Marketplace because I had this plan in mind to do a complementary development. I’ve never lost sight of the original plan.” Mr Hunt said the waterbased theme park and attractions could create “well over 1,000 jobs” at full build-out, pointing out that an “eight-acre water park in Dubai employs 550”. He added that employment at Port Lucaya would be much higher because of associated amenities such as the marina, and said the total investment could be “many tens of millions” depending on “how many pieces of the puzzle come in”.
PAGE 6, Wednesday, February 8, 2017
Cruise line drops Nassau, Freeport in favour of Cuba From pg B1 restaurant industries, taxi drivers, straw vendors, hair braiders, tour operators and attraction/excursion providers. Documents obtained by Tribune Business show that the Norwegian Sky’s four and five-day cruises from Miami to the Bahamas typically spend Tuesday’s docked in Freeport from 8am to 5pm, followed by a Wednesday call in Nassau that lasts from 8am to 6pm. However, the revised itineraries show the Norwegian Sky as arriving in Havana at 8am on Tuesday and not leaving until 3pm the following day, with both Nassau and Freeport dropped from the schedule.
The only ‘Bahamas portion’ retained is the Thursday call on Great Stirrup Cay, Norwegian Cruise Line’s private island in the Berry Island, before the Norwegian Sky returns to Miami. Obie Wilchcombe, minister of tourism, could not be reached for comment before press time last night. And Norwegian Cruise Line’s media spokespersons did not respond to this newspaper’s request for comment. However, the cruise line did little to hide its enthusiasm for its new Havana call, with the 25 cruises referenced in its press release added to five earlier sailings in May 2017. The Norwe-
VAT speech joke ‘beyond the pale’ From pg B1 singing....You don’t go to a convention to get serious information.” Mr Lowe, though, said that treating the Bahamas’ continuing fiscal crisis as a joke was “kind of depressing”. And he criticised former minister of state for finance, James Smith, for “dismissing out of hand” the concerns expressed by Royal Bank of Canada’s (RBC) top regional economist, Marla Dukharan, that the Bahamas is squandering its VAT revenues. Mr Lowe added: “It’s got to cause concern for our creditors. How long do we defend the indefensible
before we reach desperate straits, and something has to be done? Do we want to reach the point of desperation? “That’s my concern. It’s frustrating when serious matters like this are brushed off as just another day at the office. Meanwhile, the Government keeps on jacking up taxes and fees that people can ill-afford to pay these days. “It’s not a good business environment, it’s not a good personal environment. There are too many indicators headed in the wrong direction to cast this in the light that we don’t have to be serious about it.” Mr Lowe and the Nassau
gian Sky was described as the “largest vessel sailing to Cuba”. “We are thrilled to be the first cruise line able to offer weekly sailings from Miami to Cuba through the fall of 2017, all with overnights in the beautiful city of Havana,” said Andy Stuart, Norwegian Cruise Line’s president and chief executive. “We have seen great demand from our guests for sailings to Cuba, and we look forward to providing more opportunities for them to experience this incredibly culture-rich destination on a weekly basis.” Lauding Havana’s many assets, the cruise line’s statement added: “The ship will dock right in the heart of Havana, offering guests the opportunity to visit historical sites such as Old Havana, a UNESCO World Heritage Site; view incredible art and listen to the vibrant local music
scene; and visit with Cuba’s warm and friendly residents through people-to-people exchanges. “Norwegian will offer a selection of 15 half and fullday shore excursions, where guests aboard Norwegian Sky will have the opportunity to have a farm to table dining experience, explore the flora and fauna of Soroa, see modern Havana in an American classic car and much more.” While the Norwegian Sky is just one vessel, its shift to Cuba underlines that the Bahamas can no longer count on its dominance in the three, four and five-day cruise markets as a result of the ‘thaw’ in relations between the US and Havana. The Jones Act, which refers to section 27 of the US Merchant Marine Act 1920, requires that foreignflagged cruise ships (many of which are flagged by the Bahamas) have to call on a foreign port before they can
return to their home base in the US. With Cuba previously off limits, the Bahamas was the only nation that could allow the cruise industry to satisfy the Jones Act requirements with its variety of island destinations. While it remains to be seen whether the new Trump administration will reverse the openings created by Barack Obama, the Norwegian Cruise Line move emphasises that the Bahamas no longer has a monopoly on the competitive advantages flowing from the Jones Act, as there is a new player in the game. Should other cruise lines divert more of their ships to Cuba, the Bahamian tourism industry, its entrepreneurs and employees, will certainly feel an increasing pinch to their bottom lines and incomes. Cuba will also be seen as a new, exciting destination with a rich history and
culture, attributes that the Bahamas often neglects to play up in its tourism product. Per capita cruise passenger and crew spending is relatively low in Nassau and Freeport compared to other destinations, given that these cities often feature towards the ‘tail end’ of sailing schedules and are ‘familiar’ locations to many. And, while the Norwegian Sky will still continue to call on Great Stirrup Cay, the economic benefits from cruise tourism on private islands tend to be weighted more to the cruise lines themselves, rather than local entrepreneurs. Norwegian Cruise Line described Great Stirrup Cay as “recently enhanced to offer guests exciting new ways to enjoy the island, with additional features to be added through summer 2017”.
Institute were sounding the alarm bells over the Bahamas’ national debt some 15 years ago when it breached the $3 billion mark, due to persistent fiscal deficits that remain unchecked to this day. The problem was only exacerbated as a result of the 2008-2009 recession, when the Bahamian economy and government finances hit a wall they were ill-prepared to climb, resulting in higher deficits that peaked at more than $500 million in 20122013 and 2013-2014. Currently, the Bahamas’ debt-to-GDP ratio stands at 76 per cent, above the IMF’s 70 per cent ‘danger ratio’, with fiscal deficits double the Government’s Budget projections and the national debt creeping ever closer to the $7 billion mark - albeit at a slower rate than previously.
In an online posting entitled ‘This is no joking matter’, Mr Lowe wrote: “Taxpayers in the Bahamas did not place the country in this predicament, governments did, and it’s time the Bahamas government got a handle on fiscal matters... “In spite of the ruling party’s recent entertainment show (convention), and their weak assurances that all is well, along comes the Central Bank of the Bahamas’ Monthly Economic and Financial Developments report for December 2016, published January 30, 2017, that, shall we say, puts a damper on their rhetoric.” Tribune Business revealed that the Central Bank’s report showed the Government’s fiscal deficit for the first four months of 2016-2017 increased by 75.3 per cent to $157.5 million, blowing past the full-year
target of $100 million with two-thirds of the Budget period still to go. It disclosed that the fiscal deficit was up $67.7 million year-over-year due to a combination of reduced revenues and spending increases. And Value-Added Tax (VAT) revenues for the four months to end-October 2016 were off 6.7 per cent, or $15.4 million, at $214.1 million due to tough prior year comparatives, which had been boosted by “ significant early payments”. “Even long-time PLP supporter, Sir Franklyn Wil-
son, suggested to Tribune Business yesterday that we should not take the Minister of State for Finance [Mr Halkitis] seriously with his pronouncements about VAT spending,” Mr Lowe wrote. “He was making a feeble attempt to support the junior minister as a result of a landslide of negative responses to his convention speech claiming the VAT money went toward projects that the Government borrowed money for or has budgeted for them for future spending.”
NOTICE
PUBLIC NOTICE INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, HENNEKA HENESSY MILLER a.k.a HENNEKA HENNESSY MILLER of Stapledon Gardens, New Providence, Bahamas intend to change my name to HENNEKA HENESSY SANDS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742,Nassau Bahamas no later than Thirty (30)days after the date of publication of this notice.
NOTICE is hereby given that ROSENA ESPERANCE of Sunset Park, Alexandria Dr.,New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 1st day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
TUESDAY, 7 FEBRUARY 2017
BISX ALL SHARE INDEX: CLOSE 1,904.91 | CHG 0.01 | %CHG 0.00 | YTD -33.30 | YTD% -1.72
1000.00 1000.00 1000.00 1000.00
900.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01
1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB17 FBB18 FBB22
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.03 3.92 1.94 169.70 141.76 1.46 1.67 1.56 1.10 6.96 8.50 6.30 9.94 11.21 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.38 15.85 9.09 3.52 1.77 0.12 4.10 8.50 5.83 10.48 11.93 2.04 1.55 5.82 9.75 10.95 9.00 6.90 11.93 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 106.24 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.38 15.85 9.09 3.52 1.77 0.12 4.10 8.50 5.83 10.48 11.93 2.05 1.55 5.82 9.75 10.95 9.00 6.90 11.93 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
106.24 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund
VOLUME
VOLUME
NAV 2.03 3.92 1.94 168.44 141.76 1.46 1.66 1.56 1.07 6.96 8.50 6.30 9.80 11.13 9.63
EPS$ 0.029 1.002 -0.144 0.170 -0.130 0.000 -0.030 0.607 0.430 0.450 0.110 0.102 0.080 0.300 0.520 0.960 0.820 0.294 0.610 0.000
DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.090 0.300 0.220 0.360 0.490 0.060 0.060 0.240 0.400 0.000 0.330 0.140 0.640 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
P/E 151.0 15.8 N/M 20.7 N/M N/M -136.7 14.0 13.6 23.3 108.5 20.1 19.4 19.4 18.8 11.4 11.0 23.5 19.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 1.83% 6.31% 0.00% 5.97% 0.00% 0.00% 2.20% 3.53% 3.77% 3.44% 4.11% 2.93% 3.87% 4.12% 4.10% 0.00% 3.67% 2.03% 5.36% 0.00% 0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 4.30% 4.30% 3.82% 3.82% 2.73% 2.73% 3.95% 3.95% 6.77% 6.77% 3.56% 3.91% 2.22% 2.79% 2.80% 3.18% 2.99% 2.26% 4.35% 4.69% 4.13% 4.28% 4.22% 4.64% 6.19% 3.43% 2.77% 2.98% -3.66% -3.90%
NAV Date 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
ISIDOR INVESTMENTS LTD. ____________________________________ Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the abovenamed Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 23rd day of December, 2016.
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX LISTED & TRADED SECURITIES 52WK LOW 2.70 17.43 8.19 3.50 1.77 0.12 4.10 8.05 5.50 7.72 11.00 2.18 1.31 5.60 6.78 8.56 6.12 6.35 11.81 10.00
call 502-2394 to advertise today! N O T I C E
MARKET REPORT 52WK HI 4.38 17.43 9.09 3.55 4.70 0.12 7.25 8.50 6.10 10.60 15.48 2.72 1.60 5.82 9.75 11.00 9.00 6.90 12.25 11.00
THE TRIBUNE
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
Delano Aranha Liquidator of ISIDOR INVESTMENTS LTD.
THE TRIBUNE
Wednesday, February 8, 2017, PAGE 7
US job openings remain at mostly healthy level in December
a Domino’s hiring sign on the main entrance is displayed in Hialeah, Fla. Yesterday, the Labor Department reports on job openings and labor turnover for December. (AP Photo)
WASHINGTON (AP) — The number of open jobs was mostly unchanged in December from the previous month, leaving openings at a healthy level. The Labor Department said Tuesday job openings were flat at 5.5 million in December. Total hiring rose slightly to 5.25 million, while the number of people quitting fell. The figures suggest that December was a mostly stable month for the job market, with many employers possibly waiting until the new year to step up hiring. Last week’s jobs report showed that employers stepped up hiring in January, adding 227,000 jobs, the most in four months. The unemployment rate ticked up to 4.8 percent from 4.7 percent, but the
increase was mostly for a good reason: More Americans began looking for work, but not all immediately found jobs. Last week’s jobs figure is a net gain after layoffs, quits and retirements are subtracted from overall hiring. Tuesday’s data comes from the Job Openings and Labor Turnover survey, or JOLTS, and are more detailed and provide a fuller view of the job market. The number of available jobs has risen 4.2 percent in the past year, while total hiring in the JOLTS report has actually fallen in the past 12 months. That suggests businesses are having trouble finding the workers they need to fill their open positions. Some companies, including many
manufacturers, say that many job applicants don’t have the skills they need. Many economists, however, argue that companies may have to pay more to attract better applicants. They also may have to do more training of prospective employees. The rising number of openings in the past 12 months could force employers to offer bigger paychecks. Average hourly wages rose at a healthy pace in December from the previous year, then slipped back in January. Job openings fell in construction, financial services, restaurants and hotels and in state and local government. They rose in manufacturing and retail trade.
European markets get a boost from leading US investment firm LONDON (AP) — European shares rose solidly Tuesday after a leading American investment firm recommended clients to buy the region’s stocks. KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was up 0.7 percent at 7,219 while Germany’s DAX index rose 0.6 percent to 11,583. The CAC 40 in France was 0.1 percent higher at 4,784. U.S. stocks were poised for solid gains at the bell with Dow futures and the broader S&P 500 futures up 0.3 percent. BLACKROCK BOOST FOR EUROPE: Blackrock, one of the world’s big investors, upgraded its position on European equities to “overweight” in light of the pick-up in global growth measures. European earnings, according to Richard Turnill, BlackRock’s global chief investment strategist, have “historically been
more sensitive to global economy pick-ups than U.S. counterparts.” Turnill also noted that economic and political shocks have kept investors “overly cautious” towards European stocks and that the political risk priced into European markets around the upcoming elections in France and Germany is “overstated.” GREECE FEARS RETURN: Renewed concerns have emerged over Greece’s bailout program and whether the International Monetary Fund will continue with its participation. Overnight, the IMF displayed an unusual division over what to with regard to Greece, with some of its directors favoring a lower budget surplus target for Greece than others. Greek borrowing rates have risen in the markets, with the benchmark 10-year yield up 0.13 percentage point at 7.69 percent.
ASIA’S DAY: Tokyo’s Nikkei 225 index lost 0.4 percent to 18,910.78 and the Shanghai Composite Index lost 0.1 percent to 3,153.09. Sydney’s S&P-ASX 200 rose 0.1 percent to 5,621.90 and Seoul’s Kospi retreated 0.1 percent to 2,075.21. India’s Sensex shed 0.6 percent to 28,365.33 and benchmarks in Bangkok, Manila and Jakarta also declined. Taiwan, Singapore and Malaysia gained. ENERGY: Benchmark U.S. crude was down 22 cents at $52.81 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price international oils, was off 26cents at $55.70 in London at $55.46. CURRENCIES: The dollar was buoyant in the foreign exchange markets. The euro was down 0.5 percent at $1.0683 while the dollar rose 0.5 percent to 112.33 yen.
A man uses a mobile phone in front of an electronic stock indicator of a securities firm in Tokyo, yesterday. Asian stock markets were mostly lower Tuesday and oil prices rebounded after declines that dragged Wall Street lower. (AP Photo)
PAGE 8, Wednesday, February 8, 2017
THE TRIBUNE
Germany official rebuts Trump administration currency claim FRANKFURT, Germany (AP) — Germany’s central bank head has rejected a Trump administration official’s statement that German companies have benefited from an artificially cheap currency. Bundesbank head Jens Weidmann said in the text of a speech Tuesday that Germany firms are successful exporters “because they are well positioned in world markets and convince people with innovative products.” Weidmann said that “the accusation that Germany is exploiting the USA and other countries with an undervalued currency is more than mistaken.” A lower currency helps exports. Trump trade council
head Peter Navarro has said Germany benefits from a “grossly undervalued” currency he described as an “implicit deutsche mark.” Germany is one of 19 members of the euro and no longer has a currency it can control itself. The euro has fallen from $1.40 in 2014 to $1.07. That is at least partly the result of policies by the European Central Bank, which is in charge of monetary policy for euro members, and the U.S Federal Reserve. Lower interest rates and more stimulus by the ECB in an attempt to support a moderate economic recovery have sent the euro lower. ECB officials say they don’t target the exchange rate and are trying to raise
the rate of inflation from what were seen as dangerously low levels. Meanwhile, the Federal Reserve has begun raising rates, withdrawing stimulus as the U.S. recovers faster. That has sent the dollar higher since it means higher returns on fixed-income investments denominated in dollars, increasing demand for the currency. Expectations of tax cuts and infrastructure spending by the new Trump administration — whether that happens or not — have also tended to send the dollar up. In theory, Germany would likely have a stronger currency if it had kept the deutsche mark rather than joining the euro in 1999 —
President of the German Bundesbank Jens Weidmann stands in front of the bank as he is on his way to the annual press conference in Frankfurt, Germany. Weidmann has rejected a Trump administration official’s statement that German companies have benefited from an artificially cheap currency. He said yesterday, that “the accusation that Germany is exploiting the USA and other countries with an undervalued currency is more than mistaken.” (AP Photo)
an idea Navarro appeared to refer to in his “implicit deutsche mark” comment. That is because a big current account surplus like Germany’s — the broadest measure of trade — tends to send a currency higher, evening out the trade advantage with other countries. But Germany can no longer use interest rates or
money printing to influence its currency’s exchange rate. Those powers were given to the European Central Bank, which seeks to implement a single monetary policy for the entire 19-country eurozone. In any case, German officials and German members of the ECB’s board have argued unsuccessfully against the ECB stimu-
lus and in favor of tighter monetary policy that would mean a stronger euro. They say such low interest rates harm savers and bail out financially weaker governments with artificially low borrowing costs. But there are only two Germans on the 25-member board: Weidmann and former Bundesbank official Sabine Lautenschlaeger.
Army to allow completion of Dakota Access oil pipeline BISMARCK, N.D. (AP) — The Army said Tuesday that it will allow the $3.8 billion Dakota Access oil pipeline to cross under a Missouri River reservoir in North Dakota, clearing the way for completion of the disputed four-state project. However, construction could still be delayed because the Standing Rock Sioux tribe, which has led opposition, said it would fight the latest development in court. The Army intends to cancel further environmental study and allow the Lake Oahe crossing as early as Wednesday, according to court documents the Justice Department filed that include letters to members of Congress from Deputy Assistant Army Secretary Paul Cramer. The stretch under Lake Oahe is the final big chunk of work on the 1,200-mile pipeline that would carry North Dakota oil through the Dakotas and Iowa to a shipping point in Illinois. Developer Energy Trans-
a section of the Dakota Access Pipeline under construction near the town of St. Anthony in Morton County, N.D. The Army has notified Congress yesterday, that it will allow the $3.8 billion Dakota Access pipeline to cross under a Missouri River reservoir in North Dakota, completing the four-state project to move North Dakota oil to Illinois. The Army intends to allow the crossing under Lake Oahe as early as today. The crossing is the final big chunk of work on the pipeline. (AP Photo)
fer Partners had hoped to have the pipeline operating by the end of 2016, but construction has been stalled while the Army Corps of Engineers and the Dallasbased company battled in court over the crossing. The Standing Rock Sioux, whose reservation is just downstream from the crossing, fears a leak would pollute its drinking water. The tribe has led protests that drew hundreds and at times thousands of people who dubbed themselves
“water protectors” to an encampment near the crossing. ETP says the pipeline is safe. Details of the tribe’s legal challenge to the Army’s decision were still being worked out, attorney Jan Hasselman said. But tribal Chairman Dave Archambault said the tribe is “undaunted” by the Army’s decision. Even if the pipeline is finished and begins operating, he said, the tribe will push to get it shut down. An assessment conduct-
ed last year determined the crossing would not have a significant impact on the environment. However, then-Assistant Army Secretary for Civil Works Jo-Ellen Darcy on Dec. 4 declined to issue permission for the crossing, saying a broader environmental study was warranted. ETP called Darcy’s decision politically motivated and accused then-President Barack Obama’s administration of delaying the matter until he left office. The
Corps launched a study of the crossing on Jan. 18, two days before Obama left office, that could have taken up to two years to complete. President Donald Trump signed an executive action Jan. 24 telling the Corps to quickly reconsider Darcy’s decision. The court documents filed Tuesday include a proposed Federal Register notice terminating the study. “I have determined that there is no cause for completing any additional environmental analysis,” Acting Assistant Army Secretary Douglas Lamont said in a memo. The Standing Rock Sioux argues that under the Fort Laramie Treaties of 1851 and 1888, the federal government is obliged to consider a tribe’s welfare when making decisions that affect the tribe. “The Obama administration correctly found that the tribe’s treaty rights needed to be respected, and that the easement should not be granted without further
review and consideration of alternative crossing locations,” Hasselman said. “Trump’s reversal of that decision continues a historic pattern of broken promises to Indian Tribes and violation of treaty rights. They will be held accountable in court.” North Dakota’s congressional delegation and its governor welcomed the Army’s announcement. But environmental groups, including the Sierra Club, Greenpeace, Amnesty International USA and the Center for Biological Diversity, issued statements saying the Trump administration is putting corporate profits ahead of the rights of Native Americans and the environment. ETP has been poised to begin drilling under Lake Oahe as soon as it has approval. Workers have drilled entry and exit holes for the crossing, and oil has been put in the pipeline leading up to the lake in anticipation of finishing the project.
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