01152024 Business

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MONDAY, JANUARY 15, 2024

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$600m Shipyard project ‘under threat’ over airlift

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net GRAND Bahama Shipyard’s $600m dry dock investment and related projects “are already under threat” due to the island’s airlift shortage, its chief executive has warned.

Dave Skentelbery told Tribune Business that inadequate hotel room inventory, coupled with insufficient airline seats to accommodate the ship’s crews and contractors that frequently rotate in and out of the Shipyard, could undermine the returns needed to “pay back” the massive investment by its cruise line shareholders (Carnival and Royal Caribbean) in the company’s revival.

And, for the dry dock project to succeed, he reiterated that the Shipyard is also “relying” on the

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GRAND BAHAMA SHIPYARD

promised $200m transformation of Grand Bahama International Airport being completed by 2025 as repeatedly promised by the Government.

“It’s absolutely essential that we have a decent airport because we need to bring ship’s crews in, contractors in, and already the projects in 2025 are under threat because we don’t have the airlift,” Mr Skentelbery told this newspaper. “We need hotel rooms and airlift in order for our project to make the returns to pay back what we’re going to have to put in for the investment.”

The Shipyard’s two new floating dry docks are already under construction at CSSC Qingdao Beihai Shipbuilding Company in Qingdao, China, with one expected to arrive in Grand Bahama by January 2026 and the other by the end of that same year.

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Opposition: ‘Adjust’ Budget as 91% of deficit room used

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Opposition’s finance spokesman last night warned the Government “must adjust” its Budget targets and figures despite year-over-year improvements in its October revenues and deficit.

Kwasi Thompson, the east Grand Bahama MP, voiced alarm over the fact that - with two-thirds of the 2023-2024 fiscal year left - the Government’s near$120m deficit for the first four months was almost equal to the $131.1m fullyear target.

KWASI THOMPSON With the deficit, which measures by how much the Government’s new spending exceeds its income, standing at 91.3 percent of the full-year forecast at end-October, he told

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‘Raise the bar’ call on permanent residency

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN realtor has renewed his call to raise the threshold above which foreign home buyers can qualify for permanent residency to $1m as part of a strategy to “take the strain” off raising taxes.

Mario Carey, founder of Better Homes & Gardens Real Estate MCR Group, told Tribune Business that - besides increasing the present $750,000 benchmark - the Government should also mandate that foreign purchasers contribute at least $250,000 to financing social needs and help

to build the community of which they are now part.

Suggesting that such contributions can be made via investments in government securities, such as Bahamas Registered Stock, he argued that the current threshold “hasn’t kept up with the cost of living and inflation” and needs to be increased given the post-COVID hike in construction costs.

“I still believe the $750,000 for entry level permanent residency, that number should go up to a minimum of $1m with a further $250,000 invested in a sovereign wealth fund or government bonds to help social services, the

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Electric car dealer targets mid-year start on new HQ

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN electric vehicle dealer yesterday revealed it beat 2023 targets via a “one-third” sales increase as it bids to start construction on its new “multi-million” headquarters by around mid-year.

Pia Farmer, partner at Easy Car Sales, told Tribune Business that the dealership is aiming to complete the plans and architectural designs for its new location, at the junction of East-West Highway and Abundant Life Road, by end-March and “see something happening” in terms of construction by mid-year heading into the third quarter.

With site clearance at the former fire-ravaged Bahamas Liquidation Centre site now complete, she revealed that the dealership is “moving full steam ahead” on ambitions to create a “destination” that will be 100 percent solar powered and feature

publicly-accessible vehicle charging stations alongside an auto showroom and service bays.

Disclosing that Easy Car Sales plans to launch a third electric vehicle brand in The Bahamas this March, Ms Farmer pledged that the company is “going to do it right” with expansion plans for a facility that will be designed to meet market demand for the next decade.

“We have worked hard to clear the debris,” she added of the firm’s intended new home. “We were able to recycle or repurpose a lot of material. We are now working on finalising designs for the new headquarters and new showroom. I don’t know when we’re going to be finished. We’re working hard to design and plan for it. It’s very exciting. It’s a little scary. It’s quite a big project.

“We’re just designing it so it can work for us for the next ten years. We’re working on the projected

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THE TRIBUNE

ABACO JAM MAKER LAMENTS LACK OF OUT ISLAND SUPPORT

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net AN ABACO jam and preservative maker needs $80,000 for a new machine to scale-up production and is lamenting the lack of support for Family Island businesses.

Theresa Pinder, owner/ operator of Abaco Delights, told Tribune Business she has been making jams from natural fruits for more than 10 years now to the

point where she sells three cases per month to most of the large supermarkets in Nassau.

She said: “What I sell really varies because everything I make is local, and I tend to keep all of the popular ones on hand so I don’t run out of them. But the food stores carry probably three to four cases, depending on the flavours, once every six weeks.”

Hurricane Dorian’s devastation forced Ms Pinder to “start all over again”.

She added: “The price of everything is killing me

because I’m telling you, as a small business, I’m trying hard trying to continue it because it’s really difficult.

For small businesses it is extremely difficult to stay in business.”

Besides inflation and ever-increasing operating costs, Ms Pinder says this has a knock-on effect on prices for her products. She complained that some stores are pricing her jams too high where they are “pricing me out of the market for the foreign jams that are coming in”.

A standard 380ml jar of Abaco Delights jam is sold to grocery stores at $60 for the case, with the retailer then imposing its own mark-up. “They should not be selling my jam for the price they have it at. That’s just my opinion,” Ms Pinder said.

“You know what’s extremely outrageous?

The cost to bring in foreign jams is much cheaper than making it locally because of all of the things I have to purchase. When I sell to stores in Nassau, I sell it for

much cheaper in order to get it into that market.

“You have to go cheaper because you have freight and everything twice, because you have to pay to get the packaging in, and then you have to pay to send the finished product back out again and ship it.”

In order to scale up, Abaco Delights needs “at minimum” an $80,000 jam mixer once import duties and VAT are factored in alongside the landed cost.

Ms Pinder said the likes of the Small Business Development Centre

(SBDC) and the Bahamas Entrepreneurial Venture Fund are “not into older people” when it comes to financing entrepreneurs.

“When they do have grants or other offers up, they gear them towards teenagers and people in their 20s,” she added.

“I was looking for funding before I turned 65, and even then some of these places were not ready to support a small business on the Family Island.”

opportunities for advancement, at Disney Lookout Cay at Lighthouse Point.

“The project to-date has created more than 300 construction-related roles, nearly tripling the number of jobs Disney Cruise Line committed to in its Heads of Agreement.” Disney Cruise Line added that it will also be hosting a swim test tryout for beach lifeguard positions at both its new south Eleuthera destination and the existing Castaway Cay. The swim tryouts will be held on Tuesday, January 23, from 9am to 1pm at Evolve Functional Fitness in Nassau; on Wednesday, January 24, from 9am to 1pm at the YMCA in Freeport; and on Friday, January 26, from 9am to 1pm at Lighthouse Point Public Beach in Eleuthera.

Disney Cruise Line reiterated that it is also supporting small businesses and entrepreneurs through its partnership with the Eleuthera Chamber of Commerce and Access

Accelerator Small Business Development Centre (SBDC).

It added that it has committed more than $1m to fund the construction and operation of the Eleuthera Business Hub and its programming, and has provided over $175,000 in grants to small businesses. The cruise line has also opened a small office in the business hub to provide a contact point for local entrepreneurs, small businesses and community organisations.

Touting its “significant economic impact” for The Bahamas, Disney Cruise Line said: “Approximately 70 percent of the cruises offered by Disney have at least one stop in The Bahamas, all five of its ships are registered in The Bahamas and it is estimated that Disney Cruise Line operations currently contribute more than $70m toward The Bahamas gross domestic product (GDP) annually.”

Commerce is hit by BPL ‘generator trip’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net MANY New Providence businesses were hit by a Friday power outage lasting several hours after Bahamas Power & Light (BPL) suffered “a generator trip” at both the island’s power stations.

Marvin Storr, owner/ operator of Peak Ltd, told Tribune Business his electricity supply was off from 11am and had not been restored by up to 1pm on Friday afternoon. “This has disrupted my whole day because I work from home and batteries lasts only for a couple of hours,” he said.

“Most of my work got done Friday morning before the power went off.

But businesswise, I had two calls today I needed to postpone. At least one of them I was trying to get a deal closed, which is revenue.

These things are time sensitive, so if you don’t strike while the iron is hot then sometimes you lose out.”

A BPL spokesman, contacted about the power outage, which affected multiple areas in eastern New Providence, said: “We experienced a generator trip at both power stations.

It was caused by a system disturbance. The teams are assessing now.” Electricity

supply was restored later on Friday afternoon.

While businesses with access to their own generator supply were largely not impacted, one restaurant and bar had to revert to taking orders and recording payments manually. Jonice Smith, general manger of Out East Sports Bar & Lounge, said the electricity supply was lost for half the day, forcing staff to write orders manually, which “took up a lot of time”.

Ms Smith said: “All of our systems went down, so we had to do everything manually. We were able to serve guests but it took longer than it normally would because we had to write everything and then send it to the back.”

While not having to turn customers away, she said staff subsequently had to convert all the manual orders back to the point of sale system when power came back on. “We have to now figure out what not to make again,” she added.

Lisa Nabbie, general manager of Roberts & Sons Trucking, said that while generator supplier kickedin automatically her main concern was whether any computer systems were fried because it “tends to happen” when BPL’s supply shuts off.

DISNEY UNVEILS JOB FAIR TO FILL 150 ELEUTHERA POSTS DISNEY Cruise Line (DCL) will host an Eleuthera job fair on Saturday, February 3, as it moves to fulfill its commitment to create at least 150 fulltime jobs at its latest island destination.

The cruise line, in a statement, said the event will be held at Preston H. Albury High School from 9am to 5pm. It added that it is seeking to fill multiple positions for Disney Lookout Cay at Lighthouse Point, which will open to cruise passenger guests this June.

Among the available jobs are posts in administration; and for recreation/ lifeguards; island services (culinary, custodial, landscaping, pest control); safety and security; environmental; maintenance (plumbers, carpenters, HVAC, electricians, IT, projects, welders, upholstery,

mechanics, plant operators); and human resources.

Registration is not required, and Disney Cruise Line also encouraged potential applicants to visit its DCLJobs.com website and join its opt-in mailing list to receive updates.

Disney pledged: “Disney Lookout Cay at Lighthouse Point will create sustainable economic opportunities for Bahamians, protect the natural beauty of the site, celebrate the Bahamian culture and help strengthen the community in Eleuthera.

“Disney Cruise Line is dedicated to recruiting and employing a majority Bahamian workforce at its premier island destinations in The Bahamas, and has committed to creating at least 150 well-paying operations jobs, with benefits in a range of disciplines with

Carnival unveils its public affairs chief

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CARNIVAL Corporation has hired the former chief operations officer at Grand Bahama’s water supplier to help strengthen local ties prior to its new $500m cruise port opening The cruise giant, in a statement, said Philcher

Grant-Adderley will take on the role of public and community affairs director.

She will be charged with forging partnerships with a wide range of Bahamian stakeholders as Carnival’s Celebration Key cruise destination starts to pick up the construction pace on Grand Bahama.

“The new position of director, public and community affairs, requires an

individual who can interact effectively with the many stakeholders with which we partner closely on a continuous basis, while also being able to connect meaningfully and build genuine relationships with the various communities that are positively impacted

by Carnival’s activities in The Bahamas,” said Marie McKenzie, Carnival Corporation’s vice-president,

government and destination affairs.

“In Philcher, we have all this and more. Her outstanding professional achievements, comprehensive understanding of Bahamian community dynamics, enthusiastic, engaging manner and authentic concern for the well-being of all Bahamians made her the stand-out choice in a very competitive slate of candidates.”

Ms Grant-Adderley has more than 15 years of combined experience in communications, asset management, public affairs, community and stakeholder engagement, utility operations and disaster preparedness and response.

She has held executive positions, including director, customer solutions for Grand Bahama Power Company; chief operations officer at Grand Bahama Utility Company; and director of public affairs for Port Group Limited.

She has also held posts as a director for the Bahamas

Development Bank (BDB) and on the National Insurance Board (NIB).

“I am thrilled to have the honour to join this amazing Carnival Corporation team,” Ms Grant-Adderley said. “This is more than a job opportunity; it is a chance to work with an organisation that truly wants to partner with our community to make a substantive impact on the island of my birth and the country that I love.

“I am also excited to work with the community and all stakeholders to ensure that Carnival’s investment transcends ships and cruise ports to include investment in people and communities as well.”

Ms McKenzie added: “This new position is testament to Carnival Corporation’s commitment to the people of The Bahamas.

For more than half a century we have been building a mutually-beneficial relationship and, as a company, we want to do all we can to ensure that as many Bahamians as possible continue

PHILCHER GRANT-ADDERLEY to benefit from this partnership for years to come.

Philcher will be a cornerstone of those efforts going forward.”

Carnival has announced that Celebration Key will create 700 permanent jobs, including 300 Bahamians to be hired directly by the cruise line itself, and bring 2.2m-plus cruise passengers a year to Grand Bahama.

The destination is slated to begin operations in 2025.

THE TRIBUNE

Monday, January 15, 2024, PAGE 3

BAHAMAS $500M LOAN SECURES OVER HALF EXTERNAL FINANCE NEED

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE BAHAMAS has secured more than half its foreign currency financing needs for the current fiscal year by obtaining a $500m loan partially guaranteed by the Inter-American Development Bank (IDB).

The Ministry of Finance, in a statement, said the multilateral lender’s policy-based guarantee “will initially cover up to 40 percent” of the scheduled principal ($200m) and interest that Bahamian taxpayers will have to repay to lenders.

And, by exploiting the IDB’s top-notch ‘AAA’ credit rating with a stable outlook, The Bahamas has been able to secure “considerably more advantageous” interest rates on the ten-year loan than it would otherwise have been

able to get on the private international bond markets.

No details were provided on the interest rate(s) secured, or the potential cost savings, that will result from the partially guaranteed loan that was arranged

by Banco Santander’s New York branch in the role of global coordinator and mandated lead arranger.

“The landmark transaction is the country’s largest credit-enhanced financing on the international loan market to date. This transaction, being the first of its kind for the IDB, demonstrates The Bahamas’ strong commitment to the diversification of financing sources towards semi-concessional financing and blended finance solutions collaborating with the private sector,” the Ministry of Finance said.

“Additionally, the transaction is supportive of The Bahamas’ external funding pipeline, representing over

50 percent of external borrowing requirements for fiscal year 2023-2024, and will fund eligible budgetary expenses such as infrastructure, education, and social welfare projects.

“The execution of transactions with innovative credit enhancement structures is expected to provide a solid anchor to The Bahamas’ medium-term external funding plan.” It is unclear whether a portion of the $500m loan proceeds represent net new borrowing to cover the projected $131.1m fiscal deficit, or if $300m of what was raised will be used to repay the $300m foreign currency bond coming due this month.

Tribune Business reported back in July 2023 how the Government was seeking to raise almost one-third of its near-$2.2bn gross financing needs for the 2023-2024 fiscal year from external banks via some $700m in external

Real estate crowd-funder urges it get a ‘fair shake’

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net A CROWDFUNDINGbased real estate business is urging that it be given a “fair shake” as it enters its fourth year of seeking approvals from Bahamian financial services regulators.

Carlyle Bethel, principal of Akerage Ltd, which was formed to make real estate investments more accessible to the average Bahamian, said he was unsure why the process of obtaining all the necessary approvals from the Securities Commission of the Bahamas (SCB) is taking so long.

Asserting that Akerage has submitted all the requested information, and been in “constant” communication with the regulator, he added: “We’ve been in communication and working with the Securities Commission for about four years.

“We started back in 2020 and it has been a long journey to this point.

We’ve been in constant communication.

We’ve been accessible, we’ve been understanding, we’ve submitted, answered and delivered all requested documents, information and answers that the Commission has asked for.

“I’m not in a position to say exactly what the holdup is and I don’t want to speculate because I do believe that the Commission has a great group of talented individuals working for them. I think they have the best interests of the country and the industry at heart, and I think they want to see the various industries that they oversee succeed,” Mr Bethel continued.

“All we at Akerage want is a fair opportunity to show what innovative Bahamian talent and business minds can do and achieve. The opportunity is there, the need is there and the solution is there. All we need is the green light to turn on the engine. Only the Securities Commission can give that to us.”

Mr Bethel explained that over, the past four years, his company has worked with multiple professionals to develop its business model and none have found any obvious weaknesses.

He reiterated that his company is “completely above board” and can provide a solution for many Bahamians that find it difficult to invest in, or acquire, real estate.

“Over that four-year process, we have worked with professionals from various industries. We’ve worked with lawyers, accountants, real estate agents, former regulators and some of the most established businesses in this country,” Mr Bethel said.

“None of them can point to any issue or illegality in our business model. In fact, many of them say it’s a pretty straightforward business that is very much

CARLYLE BETHEL needed in this country because Bahamians everywhere wants to invest in real estate and own a piece of our land.

“The process is often times very difficult and can exclude the majority of people in this country. It’s very unfortunate, but what would be more unfortunate is if we have a solution and just chose not to allow it to operate, and so we at Akerage just want a fair shake.

We want a fair opportunity to operate our business, which is completely legal, completely above board and in compliance with all relevant legislation.”

Mr Bethel continued: “Bahamian real estate is one of the most valuable assets in the world. We did an interesting exercise back in 2020 during COVID, when we were looking for alternative investments for clients, and what we saw was that income-producing Bahamian real estate was one of the safest, most lucrative investments that someone could hold for a number of reasons “The main one is that we have our very wealthy neighbours to the north, the US, who are constantly putting buying pressure on the value of Bahamian real estate. They treat it as a luxury good; they constantly want it. When we see the pronouncements by real estate agents throughout the years they speak about the increasing value of Bahamian real estate. It is highly sought after, and those who have it love it, and those who don’t have it, want it.”

He explained that Akerage will allows participants to buy shares, starting at a $1,000 minimum, in properties that will be managed and maintained by the firm. Investors will receive monthly statements outlining the performance of their portfolio and the income generated after fees and expenses.

Mr Bethel said: “Akerage is about providing an easy, alternative way for individuals to invest in and own income-producing real estate. Instead of you having to save up thousands of dollars, go to the bank, qualify for a mortgage, find the contractor, real estate agent, lawyer, tenants and deal with the tenant management, Akerage handles that entire process.

“We find the deals, put them together and then make them available to the average Bahamian, who can now be an owner for as low as $1,000. They can invest in $1,000 worth of shares

in the company which purchases that property.

“We form a holding company that the property is conveyed to; we issue shares to the individuals that invest in the property.

The property is purchased.

We oversee the maintenance, the management, and we ensure that it’s managed and run in the best interest of the owners,” he added.

“We handle all of the accounting work, all of the legal work to ensure that the income that the properties generate is allocated to the investors based on the amount of ownership that they hold after your fees and expenses.

“We send you a monthly statement to show how the property is performing and what your returns are looking like. As the income is generated, we deposit those funds to your account and you can invest in Bahamian real estate and get passive income instead of having to worry about all of the headache that comes along with buying, owning and managing properties.”

(foreign currency) debt financing. This was part of its effort to avoid the high interest rates that will inevitably be demanded on any international bond issue.

The $500m loan transaction is thus consistent with the Davis administration’s 2023-2024 borrowing plan, which aimed to raise $995.9m or 45.3 percent of its total gross financing needs for the next fiscal year from external or foreign sources.

Of that $995.9m, some $700m - representing 31.8 percent of the $2.199bn total - will come from commercial banks, with the remaining $295.9m provided by multilateral lenders such as the IDB. To secure lower interest costs than prevailing market rates on commercial bank loans, the plan signalled the

Government is “pursuing” guarantees from the IDB and other multilateral institutions to help underwrite this financing.

“External loan financing includes opportunities for new international financial institution-related policy loans estimated at $210m, which will help to mitigate the risk in the debt portfolio through their typically longer maturity structures and comparatively lower financing costs relative to commercial borrowings,” the plan said of credit provided by the likes of the IDB and Caribbean Development Bank (CDB).

“The Government also intends to pursue policy-linked partial-credit guarantees that will help to secure commercial loan facilities in larger quantum and at a reduced cost. The

Government is in active discussions with international financial institutions and commercial banks regarding these transactions.” The $500m loan aligns exactly with these objectives.

“The transaction’s creditenhanced structure allowed The Bahamas to secure favourable financing terms, considerably more advantageous than those available on the international bond market. The IDB’s firstloss policy-based guarantee will initially cover up to 40 percent of the scheduled principal and related interest,” the Ministry of Finance said.

The guarantee allowed “the private sector, led by Santander, to lend a much larger nominal amount.

As a result, The Bahamas

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PAGE 4, Monday, January 15, 2024

THE TRIBUNE

$600M SHIPYARD PROJECT ‘UNDER THREAT’ OVER AIRLIFT FROM PAGE B1 one expected to arrive in Grand Bahama by January 2026 and the other by the end of that same year. They will replace two previous docks whose loss reduced the Shipyard to just 25 percent functioning capacity by late 2019.

However, prior to the arrival of both replacements, significant site preparation and infrastructure-related works must be completed, including dredging, demolition, sea wall strengthening and pier extension, and these activities are scheduled to ramp-up in 2024. This means the Shipyard will be bringing in, and rotating out, increasing numbers of contractors amid concern

over whether there is sufficient airlift capacity.

The $600m project is also accelerating at a time when there is growing uncertainty and concern over the GB Airport transformation and when it will proceed.

Mr Skentelbery said he “didn’t have a clue” as to what was happening with the airport, but added: “I’m assuming that it’s going ahead.

“I’ve not head anything different. I don’t have a clue where it is. The fact we’ve heard nothing, I’m assuming it’s going ahead and will be finished in 2025 as originally scheduled. That’s what we’re relying on.” Chester Cooper, deputy prime minister, and also minister of tourism, investments and aviation, first unveiled the GB Airport deal at

last year’s Grand Bahama Business Outlook back in March.

He pledged that “preliminary work” would begin towards the end of that month and early April, but there has been little sign of tangible progress to-date over the past nine to ten months. Both Mr Cooper and Prime Minister Philip Davis KC have subsequently hinted that announcements, signings and ground-breakings are imminent, but nothing has occurred to-date.

Andy Tyler Smith, director at Manchester Airports Group (MAG), the prospective operating partner for GB Airport, was yesterday tracked down by Tribune Business to Grand Bahama but declined to comment on the status of

the deal or negotiations with the Government.

“I cannot say anything other than the fact I’m here.

I’d love to be able to say something but I can’t,” Mr Tyler Smith said. This newspaper understands that all parties involved with the GB Airport deal have been placed under non-disclosure agreements (NDAs) and ordered by the Government not to say anything publicly.

Mike Edwards, principal of Pinnacle Investments, which is thought to have been contracted to handle some of the construction and demolition work, also declined to comment citing an NDA. “We are still in conversations with the Government, and that’s about the extent to which I can speak,” he said. “In terms of the project and where it’s at, I am unable to speak to that.”

But, emphasising he was saying this as a Grand Bahama resident and businessman, Mr Edwards then added: “It needs to happen sooner rather than later.

The economy of Grand Bahama is depending on it, and the longer it takes the more difficult it’s going to be.”

Tony Myers, the Bahamas Hot Mix (BHM) chairman who is part of the Bahamian investor group involved in the GB airport project, also declined to speak. “I am sorry, Neil, I cannot comment at this stage,” he said late yesterday afternoon in a What’s App messaged reply.

It was suggested to Tribune Business that Mr Tyler Smith is currently in Grand Bahama in the hope that something will break soon

and that the Government may be poised to approve the airport transformation project - possibly as early as this week.

Mr Myers, BHM and CFAL president, Anthony Ferguson, are all members of the Bahamian investor group that will spearhead what has been billed as a complete overhaul of Grand Bahama International Airport. They are joined in Aerodrome Ltd by two fellow Bahamians - Anthony Farrington, an engineer; and Greg Stuart, a businessman.

BHM’s involvement in the project is through its UK-based international arm, BHM Construction International. The group teamed with Manchester Airport Group as its operating partner, with financing for the project supposed to be provided by UK Export Finance, a British government body that provides credit guarantees and helps to arrange funding for that nation’s exporters.

However, this newspaper was told last night that the financing is in place and there are no issues there.

It was suggested that the GB Airport agreement may be on the Cabinet’s agenda for discussion and approval tomorrow, having been “ready to go” since fall 2023, only to suffer a series of delays and adjustments since.

“Manchester Airport Group has been given the complete runaround by the Government,” one source, speaking on condition of anonymity, told this newspaper. However, another added: “The Shipyard cannot survive without the airport. No hotel can survive without the airport. It will get resolved.”

All major Grand Bahama-based investment projects, including Carnival’s $500m Celebration Key cruise port and Royal Caribbean’s Freeport Harbour overhaul, not to mention the Grand Lucayan’s long hopedfor sale, will relay on the

island having an airport able to accommodate the airlift demand these developments will likely trigger.

Marc Weller, principal of Weller Development, which is spearheading the $250m Six Senses resort project, told Tribune Business: “We’ve heard a lot of good feedback and food information that the airport project is on track and there are soon to be shovels in the ground and it’s started.

“That is something that is very important to us and very welcome to us. The airport is very critical longterm to the success of the island and certainly the success of our venture. Our project needs a full-functioning airport that has all the amenities for an island of this size and nature. It’s critically important, and we’re happy to hear it’s getting done.

“My understanding, and I’m on the outside looking in, but my understanding is it’s shovels in the ground any day and the group working on it is very excited to develop the airport on time. I just think it’s critical for the overall growth of the island. That goes for all the islands. I don’t think they’ll be any different.”

Multiple Freeport businesses and residents last week complained that the lack of airlift capacity has resulted in ticket prices for short-haul flights to Miami surging to four-figure sums, while also often forcing them to travel to Nassau first before then heading to the US. One said: “I was trying to get to Texas to see a family friend, and looked at the flights and the timing was not good for me. I said I would go through Miami, and fly to Miami from Freeport, and the only ticket I could find was for $1,200.

“I had to fly to Fort Lauderdale for $200 on Bahamasair and Uber to Miami. Say the flight has got 24 seats; the Shipyard will book 18 of them. Only six will be left, and they will bump the prices up.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, ZION COREY GIBSON of P. O. Box CB-12874, 2nd Street, Coconut Grove, New Providence, Bahamas intend to change my name to ZION COREY CLARKE. 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, The Bahamas no later than Thirty (30) days after the date of publication of this notice.

NOTICE NOTICE is hereby given that COLE ALEXANDER NIELSEN DORSETT of P.O Box SB 51495 #21 Lightbourne Avenue, Nassau, The Bahamas 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 15th day of January 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that STEEVE MORSLY SAINT-FLEUR of Croton Court, Eastern Road, 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 8th day of January, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Monday, January 15, 2024, PAGE 5

A new dawn

By Chris Illing CCO @ ActivTrades Corp THE Securities and Exchange Commission (SEC) in the US has approved exchange-traded funds (ETFs) investing in the digital currency, Bitcoin, after a long period of hesitation. In the struggle with Bitcoin proponents, including large banks and asset managers, the SEC admitted defeat and ultimately allowed Bitcoin ETFs. However, it still considers these investments to be risky and speaks of “countless risks”. Many Bitcoin fans interpret this as the breakthrough, and the beginning of a new era, for the crypto currency.

An ETF (Exchange Traded Fund) is a stock exchange-traded fund that tracks a number of assets, such as those collected in an index. The fund investor does not buy a single share, but a whole basket of shares. Due to the broader diversification, it reduces the investment risk

compared to an individual investment.

A Bitcoin ETF, on the other hand, exclusively tracks the price of crypto currency, which has historically been subject to extreme fluctuations in a poorly regulated market.

Even with the Bitcoin ETF, investors in the US do not invest directly but indirectly.

For institutional and interested private investors, it is easier to invest in Bitcoin with funds. You no longer need to register with an exchange, such as Coinbase or Binance, to invest in a token and then hold it in a wallet. Experts expect that Bitcoin ETFs will now be launched and approved in greater numbers in the US. Since the total number of Bitcoin is capped at 21m, a

ELECTRIC CAR DEALER TARGETS MID-YEAR START ON NEW HQ FROM PAGE B1 increase in the number of electric cars. For example, when deciding how many bays to have in the service area we have to think of how many electric cars will be on the roads in the next five to ten years.”

Ms Farmer said Easy Car Sales hopes to finish the design and planning phase for its new headquarters by the first quarter’s end, with the construction start dependent on when it can obtain all the necessary approvals such as planning and environmental permits.

“Hopefully by mid-year, the third quarter, we will be seeing something happening,” she added. “I’ve never done this before, but we have a great team putting it together. I’m hoping that by mid-year we will start construction and see how long it takes. It’s going to be quite a large building.

“Definitely in the next six months I want to see something. It all depends on how quickly we get that going.

We’re moving full steam ahead. We were working all through Christmas on the design, so hopefully we will have final architectural plans by the end of the first quarter. By the middle of the year we hope to see something happening.

“All the deadlines and targets are ours. We’re not going to worry. We’re going to do it right. It’s going to be a long-term move. We have really outgrown Gladstone Road.” Asked how much will be invested in the new head office’s construction, Ms Farmer replied: “Multi-millions.”

She said: “I’ve been quoted something in the order of $250 per square foot, and it’s going to be at least $15,000 square feet, if not more. It’s scary.

It’s multi-millions. It’s an investment in the reality of transportation.... It’s a reality we have to get ready for.

We have to do it.”

This “reality” was identified by Ms Farmer as the growing worldwide demand for electric vehicles which, she said, now account for 11 percent of all new vehicles sold globally. This adoption rate was as high as 90 percent in nations such as Norway, the Easy Car Sales partner added.

“We grew the number of jobs at Easy Car Sales by one-third last year,” Ms Farmer told Tribune Business. “There are 25 of us now. We expect that we will need more staff by the time we move, and for the construction and outfitting.

It’s a big investment, but it shows the confidence we have in the future of electric transportation in this country. Somebody has to do it.

“We cannot put a deadline on this because we will be disappointed. We’re going to do it right and in the time needed, so that when we move to Abundant Life Road it will be right for the future. This year we have to juggle as much as we can with the space we

have and the growth that we are expecting, which will be in keeping with last year’s growth.”

While not disclosing figures for 2023, she added: “We had a very good year last year. It was a very busy year, and we exceeded our targets. We probably increased our sales by onethird compared to the year before, and expect that trend to continue.

“We expect to have 12 different models, we’re going to have a third brand, and cars that are going to sell for a little under $30,000 with eight-year warranties. That will be the least expensive. It will be a range of 12 different models with 12 different prices, and we are able to negotiate better prices as well.”

Ms Farmer declined to identify the third electric vehicle brand that Easy Car Sales plans to introduce alongside its BYD and Jac vehicles, other than to indicate that an announcement will likely be made around March this year.

To help drive electric vehicle adoption, she said the dealership will this year seek to roll-out solutions that aid what was termed “the democratisation” of fast charging. Ms Farmer said that while Easy Car Sales installed chargers in all its models, some drivers were running into opposition from condo and homeowner associations over charging vehicles at home.

Pledging to make electric vehicle charging “convenient and accessible”, she added: “Some people cannot install a charger in their condo or unit. For many of them it’s fine, but we’ll be launching a solution to that. Some condo associations are not forward thinking, or people are renting. It can be a challenge. Not everyone can install a charger at home.

“Public, accessible, convenient fast charging. We will see more of that this year.... We are coming up this year with other options for public and fast charging. We are working on that now to widen availability and accessibility. The word I look at is the democratisation of charging. You don’t have to own your own home to be able to charge.

That’s what we’re working on now.”

Ms Farmer said Easy Car Sales’ new headquarters will also eventually be part of this solution. “They will all be solar charging stations,” she added of her company’s amenities. “The whole place will be solarised. Everything will run from solar at the new location. There will be solar fast-charging stations available to the public. It’s going to be a destination location.”

steadily increasing demand for the currency would lead to higher prices. In fact, neither the demand for Bitcoin ETFs nor the price action of the cyber currency can be predicted. Bitcoin’s value could continue to fluctuate sharply, due to regulatory interventions, technological developments and market sentiments.

No investment is without risk. This also applies to investments in Bitcoin funds. Of course, if the price of the cyber currency falls, the fund also loses value. The hope of Bitcoin fans, however, is that the sometimes extremely high volatility of the cyber currency will decrease due to an increasing number of investors.

But this hope could be deceptive. This is because most of the tokens, which price the ETFs merely track, are in the hands of a manageable number of large investors. These socalled “crypto whales” amassed large Bitcoin holdings years ago before the price of the cyber currency exploded.

If the Bitcoin price now skyrockets due to a renewed increase in demand, these “whales” could decide to sell and throw many Bitcoin on the market. Strong price fluctuations are therefore also likely in the future. The new Ishares ETF can be traded on the ActivTrader platform and is available for all professional traders.

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PAGE 6, Monday, January 15, 2024

THE TRIBUNE

‘Raise the bar’ call on permanent residency FROM PAGE B1 elderly, education, special needs, feed the population. Anything to help the people,” Mr Carey told this newspaper.

“Real estate can be the vehicle to do that, especially with that entry level price. Residency is a golden ticket. Raise the bar and they don’t have to keep raising real property tax. The market could absorb another $250,000 in the permanent residency requirement. For people coming offshore for estate planning, tax purposes, $750,000 is a bargain.

“It hasn’t kept up with inflation at all. Since the pandemic came in, building costs have gone up by 30 percent. It hasn’t really moved with the times. The permanent residency programme has not kept up with the cost of living. It’s a huge opportunity for The Bahamas, and takes away the strain of raising taxes.”

Mr Carey added that such reforms would put an end to foreign buyers acquiring Bahamian real estate, obtaining permanent residency and then ‘flipping’ or immediately selling on properties and exiting

the jurisdiction without contributing anything to community building.

Meanwhile, he told Tribune Business he feels “very bullish” on the Bahamian real estate market’s prospects for 2024. “I think we’re showing healthy signs for 2024,” the Better Homes & Gardens Real Estate MCR Group founder said.

“Just talking to a lot of my client base, they are feeling very comfortable, very positive barring no COVID issues, no world war issues.

Nothing drastic.

“It seems that the general consensus is that hard

assets is the name of the tune, moving money and digital assets into real estate and gold. Real estate, we don’t make any more of it.

The Bahamas is a testament to the tourism industry, maybe nine million visitors last year. The Bahamas is in a fantastic position with airlift. Stuff is moving. There’s a lot of interest. I feel very bullish.”

While the Nassau and New Providence market will continue to perform well, Mr Carey voiced concern that “prices are creeping up for the average Bahamian” and, as

result, it is “becoming more difficult” for locals to afford their own home and become property owners.

With financing coming back to Abaco, he added that islands such as Exuma and Eleuthera are also poised to do well. “I think that if there was a website listing all the major projects going on in The Bahamas it would be pretty impressive,” Mr Carey said.

“I see people who have left The Bahamas now coming back. They are mostly expatriates who have tried some other places and are now coming

back because they kind of miss it. I would think the market this year will probably be stronger once we can meet demand with inventory. Once we can sustain that I think we will have a good if not better year.

“People feel very confident. There’s a lot of money out there. Money trying to find places to go. We’re also getting the sense that the crypto market is seeing some recovery from the FTX collapse. There’s a lot of positive signs. Bitcoin has gone up quite a bit in the past couple of months which is goods news.”

WALL STREET CLOSES OUT ITS 10TH WINNING WEEK IN 11 WITH A MIXED FINISH

By STAN CHOE AP Business Writer WALL Street closed its 10th winning week in the last 11 with a mixed finish Friday following an encouraging report on inflation.

The S&P 500 edged up by 0.1% after earnings reporting season kicked off with mixed results from Delta Air Lines, JPMorgan Chase and others. The Dow Jones Industrial Average fell 118 points, or 0.3%, dragged down by a sharp loss for

UnitedHealth Group following its results. The Nasdaq was basically flat and rose by less than 0.1%.

Stocks have been roaring toward records for months, pulling the S&P 500 within 0.3% of its all-time high, on hopes that inflation is

cooling enough for the Federal Reserve to cut interest rates several times this year.

Treasury yields have already sunk in the bond market on those expectations, and they fell further after a report showed inflation at the U.S. wholesale

level was weaker last month than economists expected.

The data bolstered expectations for rate cuts a day after another report had shown inflation was warmer at the consumer level than expected. The yield on the 10-year Treasury eased to

3.94% from nearly 4% just before the report's release.

In October, it was above 5% and at its highest level since 2007. Easier rates and yields relax the pressure on the economy and financial system, while boosting prices for investments.

Head of Senior School King’s College School, The Bahamas This is a rare and outstanding opportunity to join King’s College School, The Bahamas - a brand-new premium school opened by Inspired in September 2022.

The School has benefited from significant investment to create a worldclass campus drawing on the strength and expertise of the leading global group of premium schools. To date, King’s College School, The Bahamas, has recruited top educators globally, cultivating a culture of excellence and ambition amongst its community.

The Head of Senior School will report to the Founding Principal and will oversee and manage the growth of the Senior School, in a newly built, stateof-the-art, 10-acre campus, establishing a genuinely first-class educational offering that combines the Cambridge International Curriculum with the International Baccalaureate Diploma, and that aims to be a beacon of educational excellence worldwide.

The successful candidate will combine a track record of highly successful academic leadership and a passion for a rigorous and broad education. He or she must be strategic, creative, solutions-focused, and with significant operational experience. He or she must also thrive as part of a high-performing leadership team, in a fast-paced environment.

For further information, please visit King’s College School, The Bahamas and Inspired’s websites. Letters of application and CVs should be addressed to the Founding Principal, Mr Matteo E Rossetti, MA, FRSA, and emailed by 9.00am EST on Monday 22 January to hr@kingscollegeschool.bs King’s College School, The Bahamas and Inspired are committed to safeguarding and promoting the welfare of children, and applicants must be willing to undergo child protection screening appropriate to the post, including checks with past employers.

THE TRIBUNE

Monday, January 15, 2024, PAGE 7

BAHAMAS $500M LOAN SECURES OVER HALF EXTERNAL FINANCE NEED FROM PAGE B3 secured significant savings compared to market cost of funding at the time of transaction closing. This structure will advance the country’s objective of reducing debt service costs, extending maturities and tapping new liquidity pools...

“The Bahamas intends to capitalise on the success of this credit-enhanced financing and the approved second tranche of the IDB guarantee for up to $200m to deploy its blended finance agenda through a second transaction over the course of fiscal year 2023-2024,” the Ministry of Finance added.

Meanwhile, Kwasi Thompson, the Opposition’s finance spokesman, yesterday queried why The

Bahamas’ post-COVID economic recovery seems to be “petering out so quickly” as he compared the World Bank’s trimmed 1.8 percent gross domestic product (GDP) growth forecast for 2024 with the 4.1 percent average for the Caribbean.

“The Opposition again raises its concerns regarding the fiscal trajectory and growth prospects for the Bahamian economy in light of the World Bank’s recently-published reduction in the country’s economic growth forecast down to 1.8 percent for this year 2024,” he said.

“There are several things that the Davis administration can do to substantially improve the county’s economic growth prospects. We implore them to quickly implement

the Bahamas Invest onestop shop for Bahamian and foreign investments.

Coming into office, the PLP found a plan to implement Bahamas Invest already advanced. Two years later we see no evidence of its implementation.”

Bahamas Invest would replace the Bahamas Investment Authority (BIA) as a more proactive investment agency, and Mr Thompson added: “We call on the Government to reverse the many bureaucratic hurdles it has put in place since coming back to office with all the increased reporting, increased taxes and other impediments.

“This government scarcely mentions ‘ease of doing business’ and their actions every day show their lack of focus. The government must focus

on growing the economy by removing bureaucracy making it easier to do business and enhancing the digital transformation left in place by the FNM.” “Just as important, the Government will have to explain why the country’s economic recovery has seemed to peter out so quickly. Given all the lofty announcements and pronouncements about major private investments and public infrastructure, why haven’t we seen most of

these projects commence?” he continued.

“While the rest of the Caribbean is poised to grow on average at 4.1 percent, according to the World Bank report, the Bahamas’

growth rate is pegged at less than half of that at 1.8 percent. We should not have to be a laggard in the region in terms of economic growth prospects.”

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PAGE 8, Monday, January 15, 2024

THE TRIBUNE

OPPOSITION: ‘ADJUST’ BUDGET AS 91% OF DEFICIT ROOM USED FROM PAGE B1 Tribune Business: “What stood out to me was the deficit. They’re at 91 percent of their projected [full-year] deficit in the Budget.”

And, with the World Bank slashing its 2024 economic growth projections for The Bahamas to 1.8 percent, Mr Thompson called on the Government to respond to this and its performance for the fiscal year-to-date by adjusting its full-year financial goals when it unveils the mid-year Budget that is due to be presented next month.

The Davis administration forecast constant, or real, gross domestic product (GDP) growth of 5.5 percent for the 2023-2024 fiscal year when forming the Budget.

Economic growth is a key driver of government revenues, and Mr Thompson argued that this projection is now out of line with both the World Bank and even the International Monetary Fund’s (IMF) more optimistic 2.3 percent expansion forecast.

“The Government’s Budget numbers are based on 5.5 percent economic growth. The Government has to adjust what is in their Budget,” the Opposition finance spokesman argued, also basing this on the fiscal performance through to endOctober 2023.

Simon Wilson, the Ministry of Finance’s financial secretary, could not be reached for comment before press time last night and it remains to be seen who is correct - the Government, or the IMF, World Bank and credit rating agencies - when it comes to projections for The Bahamas’s fiscal and economic performance in 2024.

The Government’s monthly fiscal performance for October, which was released late on Friday, disclosed a mild acceleration in improved revenue and tax collections year-overyear. Compared to October 2022, total revenues rose by 9.2 percent or $21m to hit $248.2m as opposed to $227.2m, while total tax income increased by 7.25 percent to reach $220.2m compared to $205.3m the year before.

VAT revenues, derived from September filings which included both monthly and quarterly filers, rose 7.5 percent or by $8.8m yearover-year to hit $126.8m for October 2023 as compared to $118m in 2022. However, while October’s revenue growth pace was improved compared to the 2023-2024 fiscal year’s first quarter, it was still some way short of what the Davis administration needs to hit its full-year target.

To hit its full-year total revenue and tax targets of $3.319bn and $2.918bn, respectively, the Government needs to increase its income by 16 percent and 15 percent compared to what it generated in 2022-2023.

This means that, to achieve the $462m increase in total revenues and $381m jump in tax income it has projected for the 2023-2024 full-year, the Government will have to grow its income at a much faster pace over the remaining eight months than it achieved during the first third of the fiscal year.

For the first four months to October 2023, the Government’s total revenues increased by some 3.4 percent or almost $30m, reaching $911.8m as opposed to $882m for the same period in 2022. Tax revenues rose at a slightly faster pace, growing by 5.6 percent year-over-year for the same period to reach $824m as compared to $780.1m in 2022 - a $43.9m jump.

VAT revenues were up by 3.5 percent, growing by $15.6m to strike $464.6m as opposed to $449m. However, despite the increase, as a percentage of the total full-year forecast the Government collected less VAT during this fiscal year’s first four months as compared to last year - 29.2 percent versus 31.8 percent.

VAT, which is the Government’s main revenue source, accounting for almost 48 percent or nearly half its recurrent income, has to increase by a much greater 27 percent or $339m over the $1.252bn collected in 20222023 to hit this year’s target of $1.591bn.

And, while October’s $61.5m deficit represented a decline on the prior year’s $74.9m by almost 18

percent, the amount of ‘red ink’ incurred over the first four months increased by 24.4 percent or $23.5m from $96.2m to $119.7m.

Total government spending for October, while increasing at a slower rate than revenue, jumped by 2.5 percent or $7.6m to hit $309.7m. And, for the first four months of 2023-2024, spending overall has risen by 5.5 percent to $1.032bn a rate that is slightly faster than the revenue increase.

Recurrent spending, on fixed costs such as salaries and rents, grew by $43.6m or 4.8 percent to reach $952.4m.

“The $294.7m in recurrent spending for the month represented an increase of 2.2 percent ($6.5m) from the corresponding period in the prior year,” the Ministry of Finance said. “Key categories and movements are as follows: Personal emoluments at $68m increased by $3.1m, which was primarily associated with salary-related adjustments.

“Public debt interest payments were higher by $10m at $86.4m amid recent increases in the debt stock and interest costs. Outlays for the use of goods and services declined by $16.5m to $46.7m. Subsidies grew by $8.4m to $43m, owing to timing differences in stateowned enterprises (SOE) transfers. Payments related to social assistance and transfers rose by $1.6m to $23.4m.”

Mr Thompson, in a statement referring to the World Bank’s reduced growth forecast, said: “We must ask the Government what the downgrade in the economic growth forecast means for its revenue forecast. The current budget anticipated a substantial growth in revenue driven by a projected robust 5.5 percent economic growth over the 2023-2024 fiscal year.

“A slower-than-expected growth in the economy will obviously translate to a smaller bump in government revenue. Again, we point out that this will require budgetary adjustments. We have already told the Government to heed the analysis of international and domestic commentators and proactively adjust the Budget to avoid a spike in the deficit and greater-than-projected debts.

“Bahamians should not have to wait until the February mid-year Budget statement or May budget speech to learn that Budget adjustments will be necessary when the Government has known that its Budget performance has been off for some months now.”

However, four months does not make a full fiscal year and is not necessarily an indicator of how the 12-month outcome will look due to the cyclical nature of the annual Budget.

The first quarter in every fiscal year is traditionally the weakest as it coincides with the slowest part of the tourism season and therefore less economic activity.

It is typically the second half of the Budget cycle that is key in determining the Government’s financial performance.

This is when it traditionally collects the bulk of its revenues, as the early part of the calendar year coincides with the peak winter tourism season and high point of economic activity. It is also when the Government collects its Business Licence fees, bulk of real property taxes and benefits from commercial vehicle licensing month.

Mr Wilson previously said the 2023-2024 second half will be vital to determining the full-year performance given that it is when a number of fee increases – cruise passenger departure levies and boat registration fees – kick-in.

However, the other key determinant of the fiscal year is the size of June’s monthly deficit, which is typically far larger than any of the preceding 11 months.

This is because multiple government ministries, agencies and departments deluge the Ministry of Finance with bills it knew nothing about in a bid to have them paid before the financial year-end.

THE TRIBUNE

Monday, January 15, 2024, PAGE 9

DEI opponents are using a 1866 Civil Rights law to challenge equity policies in the workplace

By ANNE D'INNOCENZIO and ALEXANDRA OLSON AP Business Writers OPPONENTS of workplace diversity programs are increasingly banking on a section of the Civil Rights Act of 1866 to challenge equity policies as well as funding to minority-owned businesses.

Section 1981 of the act was originally meant to protect formerly enslaved people — or Black people specifically — from economic exclusion. But now the American Alliance for Equal Rights — a group run by Edward Blum, the conservative activist who challenged affirmative action in higher education and won — is citing the section to go after a venture capital fund called the Fearless Fund, which invests in businesses owned by women of color. A federal appeals court temporarily blocked funding for Fearless Fund's grant program as the case proceeds.

Conservative activists have brought lawsuits using the 1981 section against other companies and institutions, including insurance company Progressive and pharmaceutical giant Pfizer.

The cases are being monitored carefully as the battle over racial considerations shift to the workplace following the U.S. Supreme Court's June ruling ending affirmative action in college admissions.

While the 1981 statute had been used well before the latest affirmative action ruling to prove reverse discrimination, Alphonso David, Fearless Fund's legal counsel who serves as president & CEO of The Global Black Economic Forum, said that there's a "coordinated use of Section 1981 now that we did not see before."

Here's what's happening and what the impact could be: What is Section 1981?

The 1866 Civil Rights Act is a federal law prohibiting discrimination on the basis of race, color, and ethnicity when making and enforcing contracts. Section 1981 specifically grants all individuals within the U.S. jurisdiction the same rights and benefits as "enjoyed by white citizens" regarding contractual relationships.

However, the Supreme Court's 1976 McDonald v.

Santa Fe Trail Transportation decision broadened those protections, ruling Section 1981 prohibits racial discrimination in private employment against white people as well as people of color.

"It's a very clever game plan," said Randolph McLaughlin, a civil rights attorney and law professor at Pace University, referring to the use of the 1866 law. "They want to turn civil rights law upside down."

The standard of proof for the 1981 section is high. That's because of the Supreme Court's 2020 decision in Comcast v.

National Association of African American-owned Media establishing that the plaintiff who sues for racial discrimination under the section bears the burden of showing that race was the central cause in denying a contract opportunity — as opposed to merely a motivating factor.

Why not rely on Title VII instead?

Title VII of the 1964 Civil Rights Act protects employees and job applicants from employment discrimination based on race, color, religion, sex and national origin. If the plaintiff opts to sue via Title VII, then he or she needs to file a charge with the Equal Employment Opportunity Commission.

PAGE 12, Monday, January 15, 2024

THE TRIBUNE

BANKS UPBEAT ON US CONSUMER DESPITE BANK PROFIT DECLINES, INFLATION AND RISING DEBT LEVELS

By KEN SWEET AP Business Writer THE biggest banks in the country posted strong profits last year, helped by higher interest rates and a strong economy, despite having to deal with the lingering industry costs of last year's banking crisis that caused the collapse of Silicon Valley Bank and Signature Bank.

All the banks had onetime charges in their quarterly results, many of them specifically related to their own businesses, making this quarter particularly messy.

But setting aside the turbulence of the banking panic and the charges, the banks had a mostly strong 2023. They benefitted from by a resilient job market, U.S. consumers who, despite inflation, continued to spend and not fall behind on their debts, and higher interest rates that have boosted revenue across the industry.

JPMorgan Chase said Friday that its profits dropped 15% in the fourth

quarter, despite the bank reporting record quarterly revenue.

JPMorgan's profits fell because it was required to pay $2.9 billion to the Federal Deposit Insurance Corp. as part of an industrywide, one-time special assessment by the regulator to cover the $16.7 billion in costs to cover the uninsured depositors caught up in the collapse of Silicon Valley Bank. Other banks like Citi and BofA are paying this assessment as well.

With that aside, JPMorgan brought in an eye-popping $50 billion in profits last year, up from $37.6 billion in profits in 2022. Revenue at the largest bank in the country was nearly $160 billion. On a per-share basis, JPMorgan posted a profit of $3.04 a share, which was less than what analysts expected, but forecasts this quarter were thrown off by these onetime charges.

"The U.S. economy continues to be resilient, with consumers still spending, and markets currently expect a soft landing," said

of that plan included an announcement on Friday of cutting 20,000 jobs, roughly 10% of its workforce.

The most international of banks, Citi has announced various plans to wind down, restructure or sell off several of its businesses in the last couple of years. The bank is selling Banamex, its Mexico affiliate, and and is effectively liquidating its Russian operations since the war in Ukraine broke out two years ago.

Citi posted a loss of $1.8 billion in the fourth quarter compared to a $2.5 billion profit a year earlier.

Along with the FDIC assessment and some other one-time charges, the profits at Bank of America fell 50% from a year earlier.

BofA has had a relatively difficult year because the bank's balance sheet is tilted toward shorter-term securities, which means it bought a lot of securities during the pandemic when interest rates were low. Those bonds and other securities are not yielding much because of their lower interest rates.

CHASE Bank ATMs are shown, Thursday, March 25, 2021, in New York.

Photo:Mark Lennihan/AP the health of the consumer remains strong.

"Everyone wants to see a problem. But the reality we aren't seeing any yet," said JPMorgan Chief Financial Officer Jeremy Barnum in a call with reporters.

Struggling from the geopolitical turmoil, Citigroup posted a fourth-quarter loss due to the FDIC's assessment and other charges related to a companywide restructuring that CEO Jane Fraser detailed to investors late last year. Part

Jamie Dimon, JPMorgan's CEO and chairman, in a statement. A soft landing refers to the Fed's plan bring down inflation without causing a recession.

The bank painted a relatively strong picture of consumer spending, showing that JPMorgan customers spent 8% more on their cards compared to a year ago and are carrying 14% higher credit card balances. The bank did set more to cover potentially bad loans, but said

THE WEATHER REPORT

5-DAY FORECAST

ORLANDO

High: 77° F/25° C Low: 62° F/17° C

TAMPA

TONIGHT

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

Humid with periods of sun

Partly cloudy

Mostly sunny and humid

Cloudy, humid; breezy in the p.m.

Cloudy and humid

Humid with sun through high clouds

High: 82°

Low: 71°

High: 82° Low: 71°

High: 81° Low: 70°

High: 80° Low: 70°

High: 80° Low: 70°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

88° F

73° F

90°-74° F

85°-70° F

84°-69° F

85°-70° F

E

W

ABACO

S

N

High: 78° F/26° C Low: 73° F/23° C

8-16 knots

S

WEST PALM BEACH High: 79° F/26° C Low: 69° F/21° C

8-16 knots

FT. LAUDERDALE

FREEPORT

High: 81° F/27° C Low: 72° F/22° C

E

W S

E

W

High: 78° F/26° C Low: 70° F/21° C

MIAMI

High: 81° F/27° C Low: 72° F/22° C

7-14 knots

KEY WEST

High: 80° F/27° C Low: 74° F/23° C

NASSAU

Today

10:38 a.m.

11:13 p.m.

3.1 2.8

4:26 a.m. -0.5 5:05 p.m. -0.6

ALMANAC

Tuesday

11:30 a.m.

-----

2.8 -----

5:24 a.m. -0.3 5:56 p.m. -0.6

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 82° F/28° C Low .................................................... 68° F/20° C Normal high ....................................... 77° F/25° C Normal low ........................................ 65° F/18° C Last year’s high .................................. 65° F/18° C Last year’s low ................................... 58° F/14° C Precipitation As of 1 p.m. yesterday .................................. trace Year to date .................................................. 0.16” Normal year to date ..................................... 0.61”

Wednesday 12:11 a.m.

12:26 p.m.

2.8 2.6

6:27 a.m. -0.1 6:49 p.m. -0.5

Thursday

1:12 a.m.

1:25 p.m.

2.7 2.3

7:33 a.m. 0.1 7:45 p.m. -0.4

Friday

2:15 a.m.

2:27 p.m.

2.7 2.1

8:42 a.m. 0.2 8:43 p.m. -0.3

Saturday

3:18 a.m.

3:31 p.m.

2.7 2.0

9:49 a.m. 0.2 9:42 p.m. -0.2

Sunday

4:18 a.m.

4:33 p.m.

2.7 1.9

10:52 a.m. 0.2 10:39 p.m. -0.2

Forecasts and graphics provided by AccuWeather, Inc. ©2024

High: 80° F/27° C Low: 75° F/24° C

N

E

W

7-14 knots

S

8-16 knots

6:57 a.m. Moonrise 5:42 p.m. Moonset

10:16 a.m.

10:25 p.m.

First

Full

Last

New

Jan. 17

Jan. 25

Feb. 2

Feb. 9

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 82° F/28° C Low: 73° F/23° C

High: 81° F/27° C Low: 77° F/25° C

N

High: 81° F/27° C Low: 74° F/23° C

E

W S

LONG ISLAND

TRACKING MAP

High: 82° F/28° C Low: 77° F/25° C

H

Ht.(ft.)

SUN AND MOON Sunrise Sunset

High: 83° F/28° C Low: 73° F/23° C

N

S

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Low

CAT ISLAND

E

W

TIDES FOR NASSAU Ht.(ft.)

ELEUTHERA

High: 82° F/28° C Low: 71° F/22° C

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

High

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

N

N

UV INDEX TODAY

TODAY

High: 73° F/23° C Low: 64° F/18° C

But like JPMorgan, other bank executives were optimistic about the consumer.

"The consumer still has plenty of firepower," said Bank of America CFO Alastair Borthwick, in a call with reporters. Wells Fargo CEO Charles Scharf said that consumers' balances were still strong, in a call with investors.

One bright spot was Wells Fargo. The San Francisco-based Wells earned $3.45 billion, or 86 cents per share, on $20.5 billion in revenue. Profits met Wall Street analysts' targets while sales came in just ahead of forecasts. Analysts were looking for profit of 86 cents per share on $20.3 billion in revenue.

For the full year, Wells' revenue increased by 11% over 2022, jumping to $82.6 billion. It was boosted by a 16% increase in net interest income. Earnings per share for 2023 came in at $4.83, up by almost 48% over the previous year's $3.27.

Separately, a second Wells Fargo bank branch announced that it voted to unionize.

8-16 knots

MAYAGUANA High: 84° F/29° C Low: 75° F/24° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 81° F/27° C Low: 77° F/25° C

High: 81° F/27° C Low: 78° F/26° C

GREAT INAGUA High: 84° F/29° C Low: 77° F/25° C

N

E

W

E

W

N

S

S

10-20 knots

10-20 knots

MARINE FORECAST ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday:

WINDS SE at 8-16 Knots S at 8-16 Knots SE at 7-14 Knots SSE at 6-12 Knots ESE at 8-16 Knots SE at 8-16 Knots E at 8-16 Knots ESE at 10-20 Knots ESE at 8-16 Knots SSE at 8-16 Knots SE at 8-16 Knots S at 10-20 Knots SE at 8-16 Knots SSE at 7-14 Knots E at 10-20 Knots ESE at 8-16 Knots ESE at 8-16 Knots SE at 8-16 Knots E at 8-16 Knots ESE at 10-20 Knots SE at 7-14 Knots SSE at 7-14 Knots E at 10-20 Knots ESE at 8-16 Knots SE at 8-16 Knots SSE at 8-16 Knots

WAVES 2-4 Feet 2-4 Feet 1-2 Feet 0-1 Feet 2-4 Feet 3-5 Feet 2-4 Feet 3-6 Feet 3-5 Feet 3-5 Feet 1-3 Feet 1-3 Feet 1-2 Feet 1-2 Feet 2-4 Feet 3-5 Feet 2-4 Feet 3-5 Feet 3-6 Feet 4-8 Feet 1-3 Feet 1-2 Feet 2-4 Feet 2-4 Feet 1-3 Feet 1-3 Feet

VISIBILITY 5 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 74° F 74° F 76° F 76° F 80° F 79° F 79° F 79° F 79° F 78° F 75° F 74° F 79° F 78° F 79° F 79° F 80° F 79° F 79° F 79° F 75° F 75° F 79° F 79° F 80° F 78° F