95 percent of its clients will suffer no increase in their property coverage premiums for 2025 amid hopes prices may reduce finally reduce next year if global losses stay below $110bn.
Anton Saunders, RoyalStar Assurance’s managing director, told Tribune Business that just 5 percent of customers spread across the six Caribbean territories in which it operates will experience an increase in their all-perils catastrophe costs this year due to the need to bring them up to “book rate” - the premiums it typically charges for the sum insured.
“We have made an assessment that we are not increasing our
rates that are our book rates,” he explained. “Once they are at book rates we are not increasing any premiums. The normal rates charged in 2024 will be the same rates charged in 2025 except there are some people in our portfolio not at that rate.
“So some people will be adjusted to book rate. That’s like 5 percent of the properties on our books, and it’s a very minimal number of people. That’s in all territories for Royal Star. There will be no increase rate increases except for those persons.
“Unfortunately, we were not able to decrease rates because reinsurance prices are still high, but we think if nothing else happens in the world and we stay below $110bn in catastrophic losses in 2025, then we believe there will be some reduction in 2026.”
Merchant surprise as candy, sugary drinks not in VAT cut
By NEIL HARTNELL
A CABINET minister yesterday hailed the decision not to give candy and sugary drinks a 50 percent VAT rate cut despite the initial confusion this caused for food store merchants.
Dr Michael Darville, minister of health and wellness, told Tribune Business that the late move - which took retailers by surprise - is aligning tax policy with efforts to tackle The Bahamas’ chronic noncommunicable diseases (CNCDs) crisis by encouraging consumers to switch to healthier foods without imposing any new or increased levies on them.
Pointing out that the VAT rate on candy and sugary drinks, such as original Coca-Cola and other sodas, is remaining at the original 10 percent, he added that cutting to 5 percent on all other edible foods will help drove “consumer behaviour changes” that benefit The Bahamas’ long-term health. However, Debra Symonette, Super Value’s president, told this newspaper that
the supermarket chain was yesterday afternoon still awaiting clarity on whether candy and sugary drinks were to attract the new 5 percent VAT rate or stay at 10 percent. The Government’s initial listing placed them among the products set to enjoy a 5 percent rate, but subsequent promotional material left them at 10 percent alongside prepared foods.
“I would say on the most part,” the Super Value chief said, when asked how smoothly first-day implementation of the new VAT food rate had gone. “There are some things that we
Bahamian property and casualty insurers, due to their relatively thin capital bases, have to purchase huge quantities of reinsurance annually to enable them to underwrite the multibillion risks present in this nation. This means that the premium prices Bahamian households and businesses pay for coverage are largely determined by what reinsurers charge.
Stung by recent multi-billion dollar losses from major hurricanes hitting the US and Caribbean, as well as other catastrophic event payouts, many reinsurers have either pulled out of the region altogether or reduced the capacity and availability of coverage here. The reduction in reinsurance supply has resulted in Bahamian insurance premiums increasing in cost
by as much as 20 percent since 2022.
However, Mr Saunders said he and RoyalStar are “cautiously optimistic” that reinsurance rates will start to ease next year - and more capacity will return to the Bahamian and Caribbean market - if major loss payouts are avoided this year. If that occurs, then the peak premium rates encountered by Bahamian businesses and households may start to ease in 2026 - but only slightly.
“For us, we were more relieved that we didn’t go through the hectic reinsurance programme we did for 2023 and 2024,” the RoyalStar chief told this newspaper. “In 2025, it was more stable, more predictable. yes, we wanted a decrease, but understood where the reinsurers were coming from, so we were satisfied.....
‘Virtually impossible’ for GBPA to act as independent regulator
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A SUPREME Court judge has ruled it is virtually impossible for the Grand Bahama Port Authority (GBPA) to act as independent regulator for the water monopoly it owns as he backed the need for third-party oversight.
Justice Loren Klein, in a March 31, 2025, verdict “declared” that the Grand Bahama Utility Company and/or the GBPA “may only impose such fees and charges as are reasonable” in accordance with the 1966 reforms to the Hawksbill Creek Agreement, Freeport’s founding treaty.
His ruling, made in the context of a dispute between Grand Bahama Utility Company and the troubled Lucayan Towers South condominium
complex over an allegedly unpaid $418,541 water bill, also criticised both the GBPA’s failure to give its Hawksbill Creek Agreement responsibilities legal “footing” through enacting bye-laws and the Government for not “pressing” Freeport’s quasi-governmental regulator to do this. Justice Klein ruled that such inaction, in failing to give statutory effect to the GBPA’s power to charge Freeport businesses and households “reasonable
By NEIL HARTNELL Tribune Business Editor
nhartnell@tribunemedia.net
THE Opposition’s chairman yesterday demanded that a contract to overhaul west Grand Bahama’s roads be “terminated” by the Government, adding: “I don’t believe there’s $183m worth of roadworks there.”
Dr Duane Sands, speaking out after it was revealed
that a Bahamas Striping group affiliate had been awarded the work without competitive bidding, questioned to Tribune Business how Bahamians can get “value for money” for their tax dollars without the presence of rival offers from other contractors.
Arguing that the project, designed to overhaul 98 miles of road, needs to be re-bid, he asserted: “The maths does not add
“If nothing happens, if everything is at the normal reinsurance catastrophe and loss cycle, then we think [rates will ease in 2026]. What we will see is a bit more capacity coming back to the region which will put pressure on demand and supply so prices will stabilise more or start coming off-peak.
“If nothing significant happens, then traditional reinsurers will start coming back to the
“reasonable” has broader application to the rates charged by the likes of the Grand Bahama Power Company.
rates” for the provision of water and other utility services, is contrary to the “principles of good management and administrative law” especially given that Grand Bahama Utility Company holds a monopoly.
The ruling, over an action begun more than six years ago in December 2018, immediately sparks questions over whether the Supreme Court declaration that utilities charges in Freeport must be
The provision of electricity services, which was also the GBPA’s responsibility under the Hawksbill Creek Agreement, has since been privatised and outsourced via GB Power’s spin-off and sale to private interests, with the utility now 100 percent owned by Canadian electrical giant, Emera.
Complaints that GB Power’s rates are too high, and that businesses and
Balmoral Club submits new condo hotel plan
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Balmoral Club has submitted a revised application to the Town Planning Committee seeking approval for a sixstorey condo hotel at its Sanford Drive location. The proposed 30-unit development will again be located at the north-east portion of the existing Balmoral Clubhouse with parking to be located at
the southern side of the property. Plans include a basement for housekeeping, storage and parking, a ground floor hotel lobby, expanded terrace and public washrooms, three storeys of condo hotel units, a roof-top terrace and 91 parking spaces.
The Balmoral Club received initial site plan approval in February 2022 for a four-storey detached hotel, which was appealed by the Balmoral Phase 1 Condominium Association and the Balmoral
Homeowners Associa-
tion. In October 2023, the Balmoral Club developers submitted a new proposal for an eight-storey condo hotel with 50 residential units, which was denied by the Town Planning Committee. The developer appealed and the Subdivision and Development Appeal Board, in a December 19, 2024, verdict found that the Town Planning Committee’s decision to reject the eight-storey, 50-unit condo hotel “lacks the requisite
reasoning” given that it had previously approved a smaller-scale version of the development at the same location.
The Committee, in its original late 2023 decision, rejected the Balmoral Club’s expansion plan because it was “incompatible” with land use and development trends in the gated Sanford Drive community. However, the Board, chaired by attorney Dawson Malone,
DR DUANE SANDS MICHAEL PINTARD
JUSTICE LOREN KLEIN
DR MICHAEL DARVILLE
Colina’s shareholder profits rise by 21.4%
COLINA Holdings (Bahamas) has hailed “exceptional investment returns” and improvements across all business segments for driving a near-$7m, or 21.4 percent, increase in ordinary shareholder profits for 2024.
The BISX-listed holding vehicle for Colina Insurance Company, the life and health insurer, in a statement said net income attributable to ordinary shareholders hit $39.2m, or $1.59 per share, for the 12 months ended December 31, 2024. This, it added, marked an increase compared to $32.3m, or $1.30 per share, for the same period in 2023.
Net investment income for the 2024 full-year amounted to $59.3m, representing a decline upon the prior year’s $66.1m.
Profits were boosted by unrealised mark-to-market gains of $24.8m on Colina
REGISTRAR GENERAL UNVEILS 10% LATE FILING FEE WAIVER
THE Registrar General’s Department yesterday unveiled a three-month waiver of the 10 percent penalty for late company registrations submitted through its new online portal.
The Department, in a statement announcing the initiative for all company registrations submitted through the Corporate Administrative Services (CARS) system, said the waiver is being extended under the provisions of Section 176(2) of the International Business Companies Act. Taking effect yesterday, the waiver will be available until June 30, 2025.
“We encourage all agents to utilise the CARS system for company registrations, payments and other related services during this period. This initiative is designed to support a smooth transition to our digital platform and improve service efficiency,” the Registrar General’s Department said.
“We appreciate your continued co-operation as we enhance and modernise our services. Should you require assistance with IP address issues or accessing the CARS platform, please do not hesitate to contact carshelp@securemail.ky.”
Holdings (Bahamas) various securities investments, representing a slight increase upon the $22.9m gain recorded for 2023. For the 2024 fourth quarter, net investment income totalled $13.8m.
“As we move forward, we anticipate that investment income should return to more typical levels,” said Terence Hilts, Colina Holdings (Bahamas) chairman. “The recognition of unrealised mark-to-market gains and losses directly in income has increased income variability across reporting periods, affecting comparisons with prior years.
“While it may introduce greater fluctuations in
results, it aligns with international financial reporting standards and enhances financial statement comparability.” Colina’s insurance service result hit $15.3m for the 12 months ended December 31, 2024, compared to $4.4m for the same period in 2023.
The improvement was largely due to lower claims costs, which resulted in reduced insurance service expenses accompanied by an increase in insurance revenue.
“The growth in our insurance service result reflects our disciplined approach to pricing our insurance products while continuing to enhance our service offerings,” Mr Hilts said.
Price inspectors eye VAT rate compliance
PRICE inspectors from the Consumer Affairs Unit yesterday conducted multiple store visits to ensure merchants are n compliance with the new 5 percent VAT rate on foods sold in grocery stores, convenience stores and service stations. All deli-prepared foods, candy and sugary drinks are exempt from the 50 percent rate reduction and remain at
10 percent. The Consumer Affairs Unit deployed price inspectors to the Solomon’s and Cost Right stores at Old Trail Road; Buy 4 Less on Blue Hill Road; Budget Meat at Faith Avenue; Super Value on Nassau Street; and John Chea on Boyd Road.
A price inspector is shown assisting customers at Solomon’s and Cost Right. (BIS Photos/Patrick Hanna)
“We are also pleased with the strong results of our market-leading investment management and advisory business.”
Colina Holdings (Bahamas) total assets stood at $887.4m at year-end 2024, with invested assets comprising $652.2m or more than 73.5 percent of the total. Shareholder equity stood at $265.3m at December 31, 2024, after the company paid dividends of $2.4m to Class ‘A’ preference shareholders and $6.4m to Class ‘A’ ordinary shareholders.
“Our focus on delivering value to our customers and shareholders remains unwavering, and we continue to prioritise initiatives that
“Colina Holdings (Bahamas) commitment to innovation, operational effectiveness and customer service excellence has driven us forward, enabling us to deliver strong financial results and set the stage for future growth in an evolving market environment.
“I would also like to thank our Board of Directors for their invaluable guidance and our employees for their hard work and dedication. Together, we will continue to build on our successes and strive for even greater accomplishments in the coming year.”
TERRY HILTS
AVIATION CHIEF: ‘TREMENDOUS RESULTS’ ON LPIA CONGESTION
By FAY SIMMONS Tribune Business Reporter
THE Government’s aviation chief yesterday said there have been “tremendous results” since launching a task force to manage passenger congestion at the Lynden Pindling International Airport (LPIA).
Dr Kenneth Romer, director of aviation, said managing traffic at the airport “remains a priority” and the task force includes members of the Airport Authority, airlines
and other stakeholders. He pledged that travellers will soon see shorter waits and better gate management, while confirming that delays in recent weeks were due to the now-completed rehabilitation project that closed Runway 14/32.
“The management of traffic, again, remains a priority. It impacts the customer service experience. Our air operators, inclusive of our legacy airlines, FBOs, private carriers, domestic operators, air traffic control and the Airport Authority, have all come together. During peak time is when we unfortunately hear a lot of the negative
things about delays. So we wanted to bring all of the team members together,” said Dr Romer. “We have seen tremendous results since we launched this task force about three years ago. I think the good test of this theory is going to happen again during Easter, which is traditionally one of the highest peak times in travel.
“We just finished the runway at LPIA through NAD (Nassau Airport Development Company) that caused some delays, some congestion over the past six or so weeks. But when it comes now to the management of traffic,
Merchant surprise as candy, sugary drinks not in VAT cut
need to clarify, so I wouldn’t say it’s 100 percent right. Items like that [candy and sugary drinks] we initially had in the 5 percent, so we’re now waiting to see whether or not we should have them included.
“We went by the original list we got. There haven’t been any actual changes, but there are still questions. People are wondering about sugary drinks. Are certain drinks included? We’re now not certain. I guess we’re just going to have to wait and see. All of the retailers are reaching out. We’re just waiting patiently between Consumer Affairs and the Prime Minister’s Office.
“Based on the original list that had the items by category they were included as far as we were concerned. That’s why the question is coming up.” As for the the remainder of yesterday’s implementation, Ms Symonette added: “There may have been one or two items that we found that should have been tagged that weren’t tagged, meaning they were identified in the system.
“As we discover those items we go back and put them in. Anything the customer points out to us we will adjust, but we’re hoping we captured the majority.”
Ms Symonette said Super Value was now determining whether to re-price all products on store shelves, and in inventory, following the VAT rate cut’s implementation or just change the pricing on the shelves themselves.
“That’s a major task,” she added of product re-pricing.
“We’re actually trying to decide now whether to go back to individual pricing or go with the tags. That’s a major decision we have to make.” Asked how much work it will require to reprice all products on Super Value’s shelves, she replied: “A lot. A lot. It’s many man hours.
“We would try to not let it go beyond a couple of weeks; a month or so. It all depends on how big a crew we have and man hours. We carry.. it could be between 60,000 and 100,000 items but, of course, many are changing. Maybe 80 percent of those are going to 5 percent because of all the edible items.”
Dr Darville, meanwhile, said the decision to keep candy and sugary drinks at the original 10 percent VAT rate was consistent with the strategy he outlined to tackle The Bahamas’ health and wellness crisis in tabling the Health Promotion and Wellness Bill 2025 in the House of Assembly last week.
Revealing that the Davis administration had been seeking to cut the VAT rate on edible foods for some time, but had only acted when it knew it could make up the revenue foregone in such a move, he added: “As you know, sugar is a poison. With chronic non-communicable diseases they are the culprit, and are very addictive.
“If you go with a policy of reducing VAT, something to reduce VAT on foods, it doesn’t include sugary
drinks and sweets and candies. Absolutely not. It doesn’t. That’s the main reason why our hospitals are full. Sugar is very addictive. We have to stay away from carbohydrates, sugars that have no nutritional value.”
Dr Darville said The Bahamas is now joining other nations such as Mexico, which he asserted has declared an “all-out war on junk food” because of the detrimental impact it is having on health. He added that the Bill tabled in the House of Assembly last week will seek to prevent foods containing carcinogens and certain trans fats from entering The Bahamas given the potential harm they can inflict.
“All these things are really to change behaviour,” the minister explained. “Ultimately, the revenue collected (from taxes on sugary, unhealthy products) will go to treating some of the complications brought on by lifestyle diseases. It’s aligning with my wellness policy but we’re not taxing anybody. We’re giving people options and hopefully they make better choices.
“This 5 percent reduction on food was to give Bahamians an opportunity to choose, but we did not increase the tax. The VAT on sugary drinks and candies, we left it where it was. There’s tons of information that has clearly demonstrated behaviour changes by increasing or decreasing taxes on foods that are bad for our system. If people choose not to pay
it’s been a priority, and I think that you’re going to see shorter wait times and better management at the gates.”
Dr Romer said the recent Routes America conference “deepened” The Bahamas’ relationship with Latin American carriers and there should soon be more airlift coming from that region.
“We just had, two months ago, a major conference at Atlantis, Routes America. As a result of that conference, we deepened our relationship and our partnerships with many of our Latin American carriers. You will see significant
the higher tax, we must give them alternatives.
“In this particular case, the reduction of VAT on foods, we wanted to do it a long time ago but did not have the financial headroom to do it and the Opposition kept talking about bread basket foods.”
The Minnis administration eliminated VAT on such foods when it was in office, but Dr Darville argued that these - the likes of rice, sugar and high-fat creams - were the worst types to incentivise Bahamians to buy.
“They were the worst foods to try and reduce or eliminate the VAT on,” he said. “By keeping the VAT on other things we were redirecting Bahamians to areas that weren’t the best. When we had the financial headroom to give Bahamians options to make better choices we did it. We were not in a position to do it before because we needed to know where the revenue was going to come from.
All these things we’ve been working on for two years.”
Vasco Bastian, the Bahamas Petroleum Retailers Association’s vice-president, told Tribune Business of the 5 percent VAT food rate’s implementation: “It was a smooth transition. Very, very easily. No significant hiccups at all. We had one or two items that did not go through, but we made the adjustments. Hopefully that will increase the traffic in the stations. Everything seems fine thus far.
“Everything seems to be running smoothly. I’m happy that the Prime Minister saw fit to do something like this. It’s good economic business sense for the gas stations and other retailers and consumers as a whole.”
work being done, not just to attract them, but you’re going to start seeing more airlift coming from our Latin American markets,” said Dr Romer. “We work consistently with Ministry of Tourism. We are attracting new airlifts. Last year we welcomed some 1.8m stopover arrivals. We’re going to exceed that number. We believe that this year.”
Dr Romer said the Ministry of Tourism, Investments and Aviation is also working “aggressively and assiduously” to attract carriers from Africa, Europe and the Middle East, and
negotiate inter-line agreements to increase airlift.
“You will hear us speaking about new airlift proposed coming out of emerging markets like Africa, European countries, Middle Eastern countries. We’re working aggressively and assiduously,” said Dr Romer.
“We’re looking at new interline agreements with Bahamasair, with Latin American carriers, European carriers, African carriers. So we’ll have to increase direct airlift to the islands of The Bahamas, but you’ll also see opportunities for interlining through our national flag carrier.”
Bahamasair awaits new plane for key fleet boost
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
BAHAMASAIR’S
managing director yesterday said a newly-acquired ATR aircraft is on route to The Bahamas to give the national flag carrier a much-needed fleet boost.
Tracy Cooper added that the 70 seat ATR 72 aircraft will be used to expand domestic service thus joining the two ATR 72s the airline currently has.
“Bahamasair is pleased to advise that we have acquired an additional ATR 72 aircraft. It’s a 70-seater. It’s going to enhance the product that we provide in and around the islands. And we’re really happy to tell you that that airplane is actually in the sky. It left France this morning. It’s on its way to Cape Verde Islands. In another three days or so, it will actually be here in The Bahamas,” said Mr Cooper. He said the additional aircraft will help to deal with the demand for inter-island travel as Family Island populations are increasing and the airline “struggles” to meet their needs.
“The Bahamas and the family of islands is actually growing as far as population, and we’ve had a bit of a struggle trying to keep up with all of the demands that have been placed on Bahamasair. This aircraft is only an augmentation so that we can provide the expected service to the Family Islands as they continue to grow,” said Mr Cooper.
the Canadian engine manufacturer, Whitney Pratt, but estimated they will be back in service “shortly”. While declining to give a timeline on when the repairs will be completed he is hopeful they will be operational by the summer.
“Bahamasair still has two of those airplanes that are still awaiting engines because of the manufacturer and the supply chain. The manufacturer is doing a little better job with that. And so we expect that those, at least one of those airplanes, would be back in the sky shortly,” said Mr Cooper.
“Because the situation is dynamic, I wish I could tell you a specific timeline, but it’s only a guesstimation at this time. We’re hoping that by the summer traffic, summer flying, that we could have that airplane in the sky”
Mr Cooper said Bahamasair has seen increased traffic from South Florida over the spring break which was a “breath of fresh air” as bookings are usually low after Christmas.
suggested it did not make sense for the Committee to have earlier approved the same type of land use only to then turn around and use it as the basis for rejection. The Appeals Board also upheld the original February 22, 2022, decision by the Town Planning Committee to grant approval for the smaller-scale condo hotel at the same location. It did so on the basis that the law requires all planning appeals to be lodged within 21 days and, since the Balmoral homeowners association missed this deadline, it now has no jurisdiction to hear the action.
Speaking to Tribune Business, Dwayne Mortimer, president of the Balmoral Club, said the Board’s decision to overturn rejection
of its $25m condo hotel is “a win-win” for both developer and the community as the project, when completed, will help to support between 75-100 full-time Bahamian jobs Mr Mortimer, who pointed out that February 2025 marked three years since initial site plan approval was granted, not surprisingly agreed with the Appeals Board that it did “not make sense” for Town Planning to have approved the land use originally only to then turn around and reject it - for the same purpose and at the same site - following objections by some of Balmoral’s homeowners.
Responding to some of those concerns, the Balmoral Club president said the level of investment, number of rooms and room rates that will be charged
showed the condo hotel is targeted specifically at highend clients and there will be no ‘free for all’ in terms of who has access to the gated western New Providence community that is located in close proximity to the US ambassador’s residence.
“We intend to put up a five-star hotel with room rates at $400 to $500 per night,” Mr Mortimer told Tribune Business. “This really serves to enhance and upgrade the community. I would have, during the appeal process, made reference to a number of gated communities in The Bahamas where the model [boutique hotel in a gated community] works well.
“I’m not sure if they [homeowners] thought it through properly. The majority of units here are town homes with two bedrooms, with some having three bedrooms. How convenient will that [condo hotel] be when they have guests in town? It’s a boutique hotel and we already have a lot of amenities in place.
“I think the ruling is a win-win for the Club and a win-win for the community,” Mr Mortimer added. “Some may not see it at the moment, but we are going to hit the ground running, and when we finish it they’ll approve. Yes, we are going to resubmit our application and I’m hopeful that will be approved and done expeditiously.”
Bahamasair had previously reported that two aircraft were grounded since August 2024 due to delays from the airline’s engine manufacturer, which has faced supply chain issues affecting pre-airwork on Bahamasair’s five-plane ATR fleet.
Mr Cooper confirmed that Bahamasair planes are still waiting on engines from
“Well, spring break is still kind of halfway, it’s just at the tail end. And, of course, we would have seen an elevation in our traffic from South Florida. So that was a breath of fresh air,” said Mr Cooper. “Once after Christmas, January and half of February tend to be a little bit of a slump. So we saw some recovery, and we were happy with that.”
TRACY COOPER
Insurer: 95% of customers to see no property increase
market. I’m cautiously optimistic, and we hope - we all hope - that is the result. If this year’s catastrophe losses are the same as last year’s this will give reinsurers more confidence to come back to the market.” RoyalStar operates in the Cayman Islands, Turks and Caicos Islands, British Virgin Islands, United States Virgin Islands and Anguilla as well as The Bahamas. Mr Saunders told Tribune Business that all Bahamian property and casualty insurance underwriters would be “bankrupt” without reinsurance support, comparing their estimated
$300m-$350m equity capital base to the industry’s collective $2.5bn Dorian payout. But, acknowledging the affordability issues, and fears increasing numbers of Bahamian home and business owners are being priced out of the property insurance market, the RoyalStar chief said: “We are all concerned if the clients cannot afford our product because then we will be out of business.
“At the end of the day, we have to understand that with the protection the client needs there’s a certain degree of reinsurance protection we must buy. The protection comes at a cost, but if you go without
insurance and there’s a loss it’s more expensive for you. We emphasise that to our clients. And in 2024 we absorbed some of the increased reinsurance costs.
“This year is more stable, so we didn’t have to eat that margin that we did in 2024. Hopefully we can produce and return more equity for our shareholder,” Mr Saunders continued. “We’d be foolish as an industry not to believe there’s a financial strain on our customers trying to keep up with insurance premiums.
“The agents have done a good job in giving customers installment arrangements, but at the end of the day we’re running a business and
reinsurance costs are reinsurance protection.... The simple fact is that if you take all the general insurance companies in The Bahamas, and you add up all their equity, it probably comes up to $300m-$350m.
“We have $84m of that, so if you take that and say the industry has $300m worth of capital, Dorian was $2.5bn worth of losses. You do the math. Without reinsurance protection we would all have been bankrupt and paying out cents on the dollar. That would not be good for the economy and industry customers.”
However, Timothy Ingraham, chief executive of Summit Insurance Company,
was less optimistic about the prospects for any reinsurance price easing in the near future. Somewhat contradicting Mr Saunders, he said: “The reinsurance market is still quite difficult with capacity in short supply.
“This means that rates have remained elevated into 2025. As a result of this I don’t expect to see any downward movement on local rates this year. There may still be some increases filtering through for persons that did not get any last year.
“How long we remain in this cycle is anyone’s guess. That will likely depend on the level of catastrophe activity we see this year as well as whether or not any
‘VIRTUALLY IMPOSSIBLE’ FOR GBPA TO ACT AS INDEPENDENT REGULATOR
FROM PAGE B1
Grand Bahama residents are paying too much for their energy, have frequently erupted over the years.
And Justice Klein’s ruling has arrived at an especially sensitive time for multiple reasons, including GB Power’s continued wait for the GBPA to approve its tariff proposal for the three years through end-2027.
For it also coincides with the Utilities Regulation and Competition Authority (URCA) initiating Supreme Court legal action to determine whether itself, or the GBPA, has the authority to regulate Freeport’s energy sector. URCA is arguing that the Electricity Act 2024 vests such powers in itself as a national regulator, while the GBPA is countering that such authority belongs to itself through the Hawksbill Creek Agreement.
Justice Klein, in his ruling, did not define what are “reasonable” charges for Freeport utility services such as water and electricity. Nor did he set out a process to determine whether they are “reasonable”, or who would be responsible for doing so.
But Lucayan Towers South, which has been locked in a
separate long-running battle with the GBPA over alleged building violations and safety hazards, had raised “novel questions of law”.
“The plaintiff is the Lucayan Towers South Condominium Association, a licensee of the GBPA and the body corporate responsible for management of the condominium. It has been embattled since 2013 in litigation concerning its management Board, which has financially crippled the Association and deeply divided its membership,” Justice Klein recalled.
“Among its debts are arrears in excess of $400,000 owed to the first defendant, the Grand Bahama Utility Company, for the supply of water and sewerage services accumulated from 2014. The plaintiff does not in principle dispute the obligation to pay for the utility services.
“Rather, it says it should not be made to pay charges that are ‘arbitrary, unregulated and unreasonable’ and, therefore, contrary to the scheme of the Hawksbill Creek Agreement. Consequently, it commenced this action by writ filed on December 17, 2018.” Lucayan Towers South was described as a “relatively
large condominium” complex featuring 12 storeys and 137 units.
The Association, in its claim, sought a number of Supreme Court declarations including that GB Utility Company was providing water and sewerage services in Freeport as the GBPA’s “alter ego”. And, more critically, it also sought a declaration that GB Utility Company “is not entitled to unilaterally set rates, or impose fees and charges, and/or that any such fees and charges must be reasonable and proportionate”.
While “undisputed evidence” showed that it was the GBPA, and not GB Utility Company, that set the latter’s water and sewerage rates, Justice Klein found that it “can only be providing these primary obligations of the GBPA under the Hawksbill Creek Agreement as its agent”albeit not its “alter ego”.
“Thus, in essence, the real question posed by the declaration sought is whether the GBPA and/or the GB Utility Company can unilaterally set rates, or impose fees and charges, for the provision of the utility service,” the judge added.
Given that proposed rate increases have to be approved by the GBPA’s ‘regulatory committee’, and that GB Utility Company is owned by GBPA affiliates, Freeport’s quasi-governmental regulator is - in effect - regulating and supervising itself. Justice Klein also noted that GB Utility Company’s last rate increase in 2023 was opposed by the Government.
“It appears that the GBPA approved the 2023 rate increase application on or about 1 May, 2023, despite Government’s protestations,” he wrote. “In my view, the provisions of the Hawksbill Creek Agreement, as well as the Water bye-laws, all are pointers that the GBPA or any licensee providing utilities are empowered to charge for those services.
“The Hawksbill Creek Agreement is silent as to the process for determining those rates, fees or charges. There can be no gainsaying that it would certainly be in keeping with the tenets of good administration and public law principles that there should be independent oversight and regulation of a body that has authority to impose fees and charges on the public for the provision of essential services, especially where there is a monopoly undertaking.
“And it hardly seems possible that this independence can be achieved by the GBPA purporting to regulate the very company that it licensed to carry out a primary obligation and function of the GBPA itself.”
Justice Klein said the 1966 amendments to Freeport’s founding treaty provided for water rate increases but stipulated that these had to first be vetted by the then-Price Waterhouse or an independent accounting firm.
“In other words, the agreement provides for water supplied outside Freeport to be subject to increase based on independent oversight as agreed between the parties,” he added. “I can find nothing in the agreements, however, that requires that the determination of the fees and charges should be by some consultative process, or that
they should be subject to oversight.
“Thus, there is no impediment in the Hawksbill Creek Agreement itself to the GBPA/GB Utility Company setting the rates as long as they comply with the requirement of clause 13 [in the 1966 Hawksbill Creek Agreement amendments] to be ‘reasonable’ - a point to which I will return.
“As discussed, the primary argument of the first defendant [GB Utility Company] that it has an unqualified right to set fees and charges is anchored on clause 2(21), and the principle that the court should not imply any qualifications on terms in a commercial contract that purport to give a party an unqualified discretion,” Justice Klein added.
“For the reasons which I give below, I am of the opinion that the first defendant does not have an absolute discretion to set rates, and that rates set must be reasonable. I say so for the following reasons.” He asserted that GB Utility Company’s position is “based on a clear misconstruction” of Freeport’s founding treaty, because the initial “absolute discretion” to set utility rates was altered by the 1966 amendments. Justice Klein said “it cannot be doubted” that the effect of these changes “plainly provides for only ‘reasonable fees or charges for services’ to be levied”. He added: “To contend that the first defendant or the GBPA still has an absolute discretion to set rates would be to pretend the Agreement stood still since 1955, and to ignore the plain meaning of the 1966 reforms. Given that the GBPA had agreed to assume responsibility for providing water, electricity and other utility services, and the clause requiring fees for these to be “reasonable”, the judge added: “Thus, the concept of an absolute discretion to set rates or charges for utility services was consigned to the dustbin of history once the 1966 agreement was statutorily authorised and executed.
“In my view, the first defendant’s argument...
new capital enters the reinsurance market. New capital has been slow to enter compared to previous hard cycles as investors are able to obtain low risk returns in the bond markets,” Mr Ingraham added.
“Of course, we have already seen the wild fires in California lead to significant losses with estimates ranging from $30bn on the low side to $75bn on the high side. It will likely be late in the third quarter or early in the fourth quarter before we have any meaningful insight into where rates are headed in short to medium-term.”
overlooks the fact that these were not strictly commercial contracts between commercial parties, but a ‘Governmental’ agreement that also purported to confer benefits on eligible members of the public; that is, licensees of the Port....
“In this scenario, the 1966 amendment would have repealed the 1955 prescription, because an ‘absolute right’ to charge rates is incapable of standing together with a right to charge rates that are ‘reasonable’, and the 1955 provision in this regard must be considered repealed.
“I therefore find that the parties to the Hawksbill Creek Agreement agreed that the charges and rates for the supply of utilities would be ‘reasonable’, and that the plaintiff is entitled to the benefit of ‘reasonable’ rates as a licensee of the GBPA. To find otherwise would deprive clause13 of any effective content.”
However, Justice Klein conceded that it was “more troublesome” to determine what is reasonable, the “standard” for working this out and who would be responsible for this. And neither he, nor the Supreme Court, had jurisdiction to address the issue because the Hawksbill Creek Agreement mandates that any dispute between the Government and GBPA go to arbitration first. The judge added: “The Hawksbill Creek Agreement clearly contemplates, pursuant to clause 13 of the 1966 amendment, that the GBPA would seek to put its ability to discharge its responsibilities as a provider of water and sewerage services, including its power to collect or recover from owners or occupiers of premises reasonable rates, on a statutory footing by the promulgation of bye-laws.
“It cannot be doubted that the failure to seek to transform these obligations and powers into statutory powers does not align with the principles of good management and administrative law, especially in respect of the operation of a monopoly.
“For whatever reason, more than 50 years onward, the GBPA has not thought it necessary to fill these administrative and legislative lacunae in its operations, nor has the Government pressed them on the point.”
AUTOMAKERS REPORT STELLAR
SALES AHEAD OF TRUMP’S TARIFFS TAKING EFFECT
NEW YORK Associated Press
THE major car companies say sales rose sharply in March, with most reporting double-digit gains. For some companies, the strong performance last month helped make up for a sluggish start to the year.
Automakers sold nearly 1.6 million vehicles in the U.S. in March, up 13.6%.
That brought total sales for the first quarter to more than 3.9 million vehicles, Motorintelligence.com said Tuesday. Almost all automakers saw a surge in sales of electric vehicles.
What future months hold for the automakers is uncertain.
President Donald Trump announced 25% tariffs on auto imports that go into effect on April 3. The tariffs are set to expand to applicable auto parts in the following weeks, through May 3. The tax hike means automakers could face higher costs and lower sales, though Trump argues that the tariffs will lead to more factories opening in the United States.
Auto industry analyst
Sam Abuelsamid at Telemetry Insight said expectations were that the March numbers would be higher due to some pre-buying ahead of the imposition of tariffs, although the pre-buying was likely "limited to some degree by affordability and continuing high interest rates."
Here's a look at the latest results:
General Motors
— Overall U.S. sales rose 17% during the first quarter on strong sales of full-size pickups and SUVs.
— Chevrolet sales rose 14% during the quarter, making it the brand's best quarter since 2019.
— GMC sales rose 18% for the brand's best quarter ever, with electric vehicle sales nearly tripling.
Ford Motor
— Total sales rose 10% in March as strong sales of the F-150 pickup and electric vehicles helped offset a drop in sales of SUVs.
— Total sales fell 1% for the first quarter due to fewer sales to rental car companies and the discontinuation of two models.
— Sales of all-electric and hybrid vehicles increased and made up about 15% of total sales for the first quarter.
Toyota
— U.S. sales for Toyota Motor North America rose 7.7% in March.
— Electric vehicle sales rose 44.1% in March and represented nearly half of the overall sales volume for the month.
— Total sales for Toyota Motor North America rose 0.9% during the first quarter.
OPPOSITION: ‘NO $183M ROADWORKS’ IN WEST GB
continuing this non-transparent, no-bid contracts where the Bahamian people have no way of knowing whether they are getting value for money, what the profit margin is, what they are paying for materials and labour, it’s not unreasonable for people to believe the only reason this is being done is to hide the fact they are over-paying for a service.’
Clay Sweeting, minister of works and utilities, did not respond to Tribune Business calls and messages seeking comment before press time. Procurement data released by the Government, though, showed that the contract handed to Abaco Caribbean Holdings by ‘direct award’ came from the Ministry of Finance and not the Ministry of Works.
Michael Pintard, the Opposition’s leader, was slightly more cautious than Dr Sands as he told this newspaper there was “conflicting information” about whether the west Grand Bahama roads contract has actually been awarded. “We are hearing conflicting stories as to whether or not this is a contract that has been executed, and we would like the Prime Minister to provide the details. We are uncertain about the details,” he said. Both Mr Pintard and Dr Sands, though, challenged whether the $183m sum would be better spent on addressing other infrastructure and public service deficiencies in Grand Bahama. They listed the need for more
fire engines and fire-fighting equipment in the wake of the recent fires; ambulances; upgrades to the Rand Memorial Hospital; and repairs to the home of West Grand Bahama residents.
Several contacts, speaking on condition of anonymity, have already questioned the “direct award” method’s use in granting such a large contract to Abaco Caribbean Holdings as this signals it was never put out to tender and there was no competitive bidding as a consequence. Bahamas Striping’s website confirms that the winning bidder is its affiliate, and both share the same address at Lot 2C Abundant Life Road.
Currently overhauling some 163 miles of Eleuthera’s roads under a $100m contract, and having previously been hired by the Government to transform much of Exuma’s road network at a cost of $60m, Bahamas Striping and another of its subsidiaries, Caribbean Pavement Solutions, would appear well-qualified for the Grand Bahama work.
Several contacts pointed out that - combined - the value of the three contracts including Grand Bahama is some $343.459m, a sum that almost exactly matches the total $344.5m capital spending that the Government has budgeted for the current 2024-2025 fiscal year. And they also challenged whether the ‘direct award’ of such a large $183m contract can be justified based on the law set by the Public Procurement Act.
GERMANY SEES UKRAINE
The last version of this Act, passed by Parliament under the Davis administration, sets out the grounds under which this procurement method can be used. These include that the contract value is less than $100,000; that no suitable bids were received in a competitive tendering process; “reasons of extreme urgency”, such as a natural disaster; and other factors that do not necessarily appear to apply to such a project.
“There’s no exigency, no emergency, no natural disaster to justify” the use of a ‘direct award’,” Dr Sands argued. “These are dollars earned from the pockets of Bahamians. We deserve to know how they arrived at this contract for $183m... We are putting down $183m on roads that don’t exist. Make that make sense. It absolutely does not make sense.
“Why is it that this is the only company [Bahamas Striping and its affiliates] that is awarded these contracts for this sum of money? It [the contract] should be terminate and the process started over; nothing less will do. This does not meet any of the criteria. It should not happen in The Bahamas. It is a decision that has been made without any justification by this administration.”
Dominic Sturrup, Bahamas Striping’s principal, declined to comment on the West Grand Bahama contract award when contacted by Tribune Business citing the “confidentiality of the contract” and directing all questions
TRUCE EFFORTS AS DEADLOCKED, WHILE CHINA SAYS THE TALKS ARE ENCOURAGING
By ILLIA NOVIKOV Associated Press
GERMANY'S chief diplomat on Tuesday described U.S. President Donald Trump's efforts to secure a truce in the three-year war between Russia and Ukraine as deadlocked, while China's foreign minister said that it was encouraging that the talks between Washington and Moscow on finding a settlement are continuing.
German Foreign Minister Annalena Baerbock, arriving in Kyiv for an unannounced visit, said that "due to the deadlock" between the U.S. and Russia on forging a ceasefire deal, European allies' continued support for Ukraine in the war is "absolutely crucial."
Trump on Sunday scolded Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy, expressing frustration at the continued fighting in a
NOTICE
NOTICE is hereby given that FERTILUS MONTINA CHRISDONNE of Bacardi Road, 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 2nd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
war that he had pledged to swiftly stop.
Trump insisted progress was being made in the negotiations, but said that he would consider imposing further sanctions to put pressure on Moscow and accused Zelenskyy of trying to back out of a deal with the U.S. on access to Ukraine's mineral resources.
Ukrainian Foreign Minister Andrii Sybiha said Tuesday that the latest version of the mineral deal remained under discussion and that Ukraine had conducted its first round of consultations on that version.
Putin has effectively refused a U.S. proposal for an immediate and full 30-day halt in the fighting, despite Trump's prodding. Also, a partial ceasefire in the Black Sea that could allow safer shipments has fallen foul of conditions imposed by Kremlin negotiators.
"We consider the models and solutions proposed by the Americans quite seriously, but we can't just accept all of them as they are," Russia's Deputy Foreign Minister Sergei Ryabkov said.
Moscow is holding out on a deal to ease shipping in the Black Sea in order to "stall efforts toward a general ceasefire and extract additional concessions from the West," according to an assessment Monday by the Institute for the Washington-based Study of War think tank.
Trump has signaled that he could consider new oil sanctions on Russia — a development Ukraine would view favorably.
"I believe we have reached the point where stronger sanctions are needed, because I believe the Russians are breaking the promises they made to America," Zelenskyy said during a joint press
NOTICE
NOTICE is hereby given that PELEGE CASSY of of Soldier Road, Nassau, 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 26th day of March, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that JAYMAR RICARDO WHYLEY of Pinewood Gardens, New Providence, 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 2nd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
to the Government. “I can’t answer any questions,” he said. “All of our contracts are confidential. You’d have to reach out to the Government to get an answer on it.”
However, he did confirm that documents uncovered by Tribune Business are genuine. These show that IDB Invest, the arm of the Inter-American Development Bank (IDB) that finances the private sector, is exploring providing $22m in funding to Abaco Caribbean Holdings.
“IDB Invest is looking to finance approximately $22m through a working capital facility to support Abaco Caribbean Holdings, a Bahamian company, and its shareholders, the Bahamas Striping Group of Companies,” IDB Invest said.
“This financing will be directed towards the West Grand Bahama Road Improvement project, which seeks to enhance connectivity, safety and the overall travel experience across Grand Bahama. The project involves the rehabilitation of asphalt paving of 51 miles of highway and 47 miles of settlement roads, with an estimated cost of $185m.”
Other IDB documents, seen by this newspaper and giving more detail on the project, state: “These improved roadways will unlock economic opportunities, facilitate smoother transportation of goods and services, and bolster the tourism sector, which is vital for the island’s economy....
“Abaco Caribbean Holdings, founded in 2016 as a
turnkey service provider, has gained experience through the planning, designing and construction of parks and community centres, and implementing smart technology systems. Most recently, with the support of other companies of Bahamas Striping, it has expanded its services into road paving and construction, land clearing and site development.
“The project consists of the reconstruction and rehabilitation of a stretch of approximately 51 miles of the Queen’s Highway, a main asphalt paved arterial road on the West End of Grand Bahama, about 47 miles of minor roads - collectors and settlement roads - various other capital and infrastructure works, and other road and infrastructure safety enhancements.”
The latter is set to include “the installation of guard rails where required; the placing of traffic signs and road striping; the adoption of traffic calming measures; the placement of reflective road studs; and the construction of sidewalks in selected areas.
“To achieve the required production of asphalt for the road pavement, the company will install a new asphalt plant, which will be located approximately at the midpoint between Eight Mile Rock and the West End, within a rural environment, without any neighbours living nearby, and its main access is by the Queen’s Highway,” the IDB Invest report added.
conference with Baerbock in Kyiv on Tuesday. "For us, decisive action is crucial. Words are not enough," Zelenskyy added. "We are the ones who suffer."
Putin previously has ruled out a temporary break in hostilities, saying that it would only benefit Ukraine and its Western allies by letting them replenish their arsenals. He has insisted that Moscow wants a comprehensive agreement that would ensure a lasting settlement.
Kremlin spokesman Dmitry Peskov indicated Tuesday that a breakthrough in negotiations isn't imminent.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The public is hereby advised that I, GILDA DOLLISA HANNA a.k.a GILDA DOLLISA BETHEL of Discover Close, Regency Park, New Providence, Bahamas intend to change my name to GILDA DOLICA BETHEL. If there are any objections to challenge the name by deed poll, you may write such objections to the Chief Passport Offcer, P.O. Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of the publication of this notice.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, DONAVON DOMINIQUE JOSEPH, of Fire Trail Road, New Providence, The Bahamas, P.O. Box N-1087. intend to change my name to DONAVON DOMINIQUE MURPHY If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P.O.Box N-742, Nassau, The Bahamas no later than thirty (30) days after the date of publication of this notice.
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 2nd day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
RUSSIAN President Vladimir Putin, left, and Chinese Foreign Minister Wang Yi shake hands during their meeting at the Kremlin in Moscow, Russia, Tuesday, April 1, 2025. Photo:Grigory Sysoyev/AP
More swerves hit Wall Street as Trump’s “Liberation Day” nears
By STAN CHOE AP Business Writer
U.S. stocks swerved through another shaky day of trading Tuesday, with uncertainty still high about just what President Donald Trump will announce about tariffs on his "Liberation Day" coming Wednesday.
The S&P 500 rose 0.4% after roaring back from an early drop of 1%. The Dow Jones Industrial Average edged down by 11 points, or less than 0.1%, after pinging between a loss of 480 points and a gain of nearly 140, while the Nasdaq composite added 0.9%.
Wall Street has been particularly shaky recently, and momentum has been swinging not just day to day but also hour to hour because of uncertainty about what Trump will do with tariffs — and by how much they will worsen inflation and grind down growth for economies. On Monday, for example, the S&P 500 careened from an early loss of 1.7% to a gain of 0.7%.
In the bond market, Treasury yields sank after a report said U.S. manufacturing activity contracted last month, breaking a twomonth streak of growth. A
separate report said U.S. employers were advertising slightly fewer job openings at the end of February than economists expected.
Companies are saying they're already feeling effects from Trump's trade war, even with the main event potentially coming on Wednesday, when the president will announce a sweeping set of tariffs.
"Customers are pulling in orders due to anxiety about continued tariffs and pricing pressures," one computer and electronic products company told the Institute for Supply Management in its monthly manufacturers' survey.
"Starting to see slowerthan-normal sales in Canada, and concerns of Canadians boycotting U.S. products could become a reality," a manufacturer in the food, beverage and tobacco products industry said in the ISM's survey.
The U.S. economy is still growing, to be sure, and the job market has remained relatively solid even with February's slightly weakerthan-expected job openings.
But one of the worries hitting the market is that even if Trump announces less-punishing tariffs than
feared on Wednesday, the stop-and-start rollout of his trade strategy may by itself cause U.S. households and businesses to freeze their spending, which would damage the economy. Trump has pushed for tariffs in part to bring manufacturing jobs back to the United States from other countries.
All the nervousness in the market has helped push the price of gold to records, and it briefly topped $3,175 per ounce Tuesday. That's up from less than $2,700 at the start of the year.
On Wall Street, Tesla charged 3.6% higher a day ahead of reporting how
many vehicles it delivered during the first three months of the year.
Worries have grown about a potential backlash from customers, and protestors have been swarming Tesla showrooms due to anger about CEO Elon Musk's leading the U.S. government's efforts to cut spending. Tesla's stock is still down by roughly a third for the year so far.
PVH jumped 18.2% after the company behind the Calvin Klein and Tommy Hilfiger brands reported a stronger profit for the latest quarter than analysts expected. It also said it plans to send $500 million
Trump to hold a meeting on possible investors to buy TikTok with possible ban at stake
By SARAH PARVINI and JOSH BOAK Associated Press
PRESIDENT Donald Trump will hold a Wednesday meeting with aides about possible investors who could buy a stake in TikTok, a deal that could potentially stop the social media site from being banned in the United States.
The details of the meeting were confirmed by a person familiar with the situation who spoke on condition of anonymity to discuss internal deliberations.
There has been uncertainty about the popular video app after a law took effect on Jan. 19 requiring its China-based parent, ByteDance, to divest its ownership because of national security
concerns. After taking office, Trump gave TikTok a 75-day reprieve by signing an executive order that delayed until April 5 the enforcement of the law requiring a sale or effectively imposing a ban.
Among the possible investors are the software company Oracle and the investment firm Blackstone.
Likely to attend the Oval Office meeting with Trump on Wednesday are Vice President JD Vance, Commerce Secretary Howard Lutnick, White House national security adviser Mike Waltz and Director of National Intelligence Tulsi Gabbard.
CBS News first reported on the meeting.
A DISPLAY shows a Newsmax logo on the day of their IPO on the floor at the New York Stock Exchange in New York, Monday, March 31, 2025.
to shareholders this year through purchases of its own stock.
Newsmax soared another 179% to follow up on its 735% surge from Monday, which was the first day of trading for the news company's stock.
On the losing end of Wall Street was Johnson & Johnson, which dropped 7.6% after a U.S. bankruptcy court judge denied the company's settlement plan related to baby powder containing talc. It's the third time the company's attempt to resolve the baby powder settlement through bankruptcy has been rejected by courts.
All told, the S&P 500 rose 21.22 points to 5,633.07. The Dow Jones Industrial Average dipped 11.80 to 41,989.96, and the Nasdaq composite gained 150.60 to 17,449.89.
In stock markets abroad, indexes rose across much of Europe and Asia to recover some of their sharp drops from the day before.
In Europe, Germany's DAX returned 1.7%, and
Talking to reporters Sunday while on Air Force Once, Trump said he would "like to see TikTok remain alive." He previously indicated that he might consider reducing tariffs against China if the country approves the sale.
During his first term, Trump tried to ban TikTok on national security grounds, which was halted by the courts before his administration negotiated a sale of the platform that eventually failed to materialize. He changed his position on the popular app during last year's presidential election and has credited the platform with helping him win more young voters.
"I won the young vote by 36 points. Republicans generally don't do very well with the young vote," he said Sunday. "I think a lot of it could have been TikTok."
Trump has said that the deadline on a TikTok deal could be extended further if needed. He previously proposed terms in which the U.S. would have a 50% stake in a joint venture. The administration hasn't provided details on what that type of deal would entail.
TikTok and ByteDance have not publicly commented on the talks. It's also unclear if ByteDance has changed its position on selling TikTok, which it said early last year it does not plan to do. What will happen on April 5?
If TikTok is not sold to an approved buyer by April 5, the original law that bans it nationwide would once again go into effect. However, the deadline for the executive order doesn't
France's CAC 40 rose 1.1% after European Commission President Ursula von der Leyen said the world's biggest trade bloc would not cower in the face of U.S. trade demands.
"Europe holds a lot of cards, from trade to technology to the size of our market. But this strength is also built on our readiness to take firm counter measures if necessary," von der Leyen said. "All instruments are on the table."
In Japan, the Nikkei 225 held steady as Prime Minister Shigeru Ishiba said he was imploring Trump not to impose higher auto tariffs on Japan, a longtime U.S. ally. A central bank survey found a worsening in business sentiment among big manufacturers.
In the bond market, the yield on the 10-year Treasury fell to 4.16% from 4.23% late Monday and from roughly 4.80% in January. That's a significant move for the bond market, and yields have been falling with worries about a potentially slowing U.S. economy.
appear to be set in stone and the president has reiterated it could be extended further if needed.
Trump's order came a few days after the Supreme Court unanimously upheld a federal law that required ByteDance to divest or be banned in January. The day after the ruling, TikTok went dark for U.S. users and came back online after Trump vowed to stall the ban.
The decision to keep TikTok alive through an executive order has received some scrutiny, but it has not faced a legal challenge in court.
Who wants to buy TikTok?
Although it's unclear if ByteDance plans to sell TikTok, several potential bidders have come forward in the past few months.
Aides for Vice President JD Vance, who was tapped to oversee a potential deal, have reached out to some parties, such as the artificial intelligence startup Perplexity AI, to get additional details about their bids, according to a person familiar with the matter. In January, Perplexity AI presented ByteDance with a merger proposal that would combine Perplexity's business with TikTok's U.S. operation.
Other potential bidders include a consortium organized by billionaire businessman Frank McCourt, which recently recruited Reddit co-founder Alexis Ohanian as a strategic adviser. Investors in the consortium say they've offered ByteDance $20 billion in cash for TikTok's U.S. platform.
Photo:Seth Wenig/AP
Restaurant chain Hooters goes bust
Files for bankruptcy protection
By ELAINE KURTENBACH and DEE-ANN DURBIN AP Business Writer
Hooters is going bust.
The U.S. restaurant chain, known for chicken wings and its skimpy "Hooters Girls" wait-staff outfits, has filed for bankruptcy protection. HOA Restaurant Group filed the motion for Chapter 11 protection Monday in the North Texas Bankruptcy Court in Dallas.
It's the latest legacy restaurant chain to run into financial trouble amid high food and labor prices, changing customer tastes and growing competition from newer casual chains like Shake Shack.
Red Lobster, TGI Fridays and Buca di Beppo all filed for bankruptcy protection last year, while the Tex-Mex chain On the Border filed for bankruptcy protection last month.
Under the Hooters bankruptcy plan, 100 company-owned U.S.
restaurants would be sold to a group of Hooters franchisees. The franchisees, who include Hooters' founders, currently operate 14 of the 30 highest-volume Hooters restaurants in the U.S., the company said.
"For many years now, the Hooters brand has been owned by private equity firms and other groups with no history or experience with the Hooters brand," Neil Kiefer, CEO of the franchise group Hooters Inc., said in a statement. "As a result of these transactions, the Hooters brand will once again be in the hands of highly experienced Hooters franchisees and we will be well-positioned to return this iconic brand to its historic success."
The group of buyers said Tuesday it wouldn't comment on the deal's financial terms.
Hooters said franchisees or licensing partners would continue to operate all existing locations, including those outside the U.S. There are approximately
305 Hooters restaurants in 29 states and 17 countries, according to court filings.
Hooters, based in Atlanta, Georgia, was founded in Clearwater, Florida, in 1983 by six businessmen with no food service experience who claimed they wanted to run a restaurant they couldn't get kicked out of.
But its business strategy has faced challenges over the years, including lawsuits
over hiring only "Hooters Girls" to serve customers.
In 2017, the company tried opening a restaurant that didn't feature servers in tight tops as a test of a different approach to its original concept.
Last year, Hooters agreed to pay $250,000 to settle a race and color discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission. According to the lawsuit, a
Hooters in North Carolina laid off 43 employees during the COVID pandemic, but recalled primarily white employees and Black employees with lighter skin tones once it began rehiring workers.
The company has also been forced to scale back as its financial woes mounted.
In 2019, the Hooters hotel-casino off the Las Vegas Strip was sold to an Indian hotel company and
rebranded as the OYO Hotel and Casino. Last year, the company closed around 40 underperforming U.S. locations.
Hooters had sponsored the No. 9 NASCAR car driven by Chase Elliott since 2017, but last year, Hendrick Motorsports ended its ties to the longtime sponsor because it was not meeting its financial commitments.
MARINE FORECAST
CHINESE waitresses dressed in orange shorts and t-shirts cheers while welcoming the arriving guests at the Hooters restaurant in Beijing, China, Sept. 10, 2007. Photo:Andy Wong/ AP
