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TUESDAY, APRIL 21, 2020

$3.89

ROBERT MYERS

Business owners ‘not living in ivory towers’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE prime minister’s attack on business owners “has no merit” in most cases, a prominent entrepreneur argued yesterday, adding: “We’re not living in ivory towers.”

Robert Myers, who has multiple business interests, told Tribune Business that it was “dangerous” for Dr Hubert Minnis to make “such broad brush generalisations” about the eagerness of some proprietors to layoff long-serving staff when many had used their own finances to provide support for as long as possible.

Still, Mr Myers said he was willing to give the Prime Minister “a pass” on his criticisms given that immense frustration and pressure he and the government are facing as the COVID-19 pandemic takes an ever-increasing toll on the Bahamian economy and society.

He also argued that Dr Minnis’ comments applied more to the commercial banking industry on the basis that its loan deferral initiatives were simply allowing borrower clients to delay payments until they and the economy recover.

This, Mr Myers suggested, meant that deferred interest payments are merely being added to the borrower’s debt with the end result that the banks “are not missing a beat” as interest is being charged on interest.

Turning to the prime minister’s national address, in which he went off-script to slam the seeming haste with which companies temporarily laid-off long-serving staff in response to the pandemic, Mr Myers suggested he may have reacted “to some emotional story” concerning how one firm had treated their workers.

“I haven’t spoken to every business person, and I’m not the Chamber of Commerce, but I haven’t spoken to anyone in my sphere that’s

SEE PAGE 4

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Govt warns of $800m deficit

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government is facing an $800m deficit for this budget period with “next year looking even worse”, the deputy prime minister revealed yesterday, as revenues are off by up to 70 percent.

K Peter Turnquest, in a Zoom conference with members of Old Fort Rotary Club, said there was “no way of sugar coating” the grim economic and fiscal outlook facing The Bahamas given that the COVID-19 pandemic’s effects will be with this nation and its major tourism source markets for longer than initially projected.

What was anticipated to be a three-four month health crisis looks like it may last for at least six to nine months, he added, describing this as a “significant blow” to an economy heavily reliant on external forces

• DPM: ‘Next year looking even worse’ • $2bn borrow will add $180m interest cost • Cool towards debt forgiveness calls

to drive jobs, incomes and foreign exchange earnings.

Mr Turnquest, though, was cool towards calls by the likes of Alfred Sears QC, a former attorney general, for The Bahamas to seek “forgiveness” from its international and local creditors for at least part of its near$9bn national debt.

He argued that The Bahamas’ status as a high, or middle, income country meant “this was not really an option for us” as lenders would not simply agree to “write-off” a portion of what was owed as they might do for the likes of Haiti.

And the deputy prime minister also warned that borrowing up to $2bn, as called for by his opposition K PETER TURNQUEST

SEE PAGE 4

PM ‘meant no disrespect’, deputy tells private sector

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE deputy prime minister yesterday reassured the private sector that Dr Hubert Minnis’, pictured, “heart is in the right place” after he attacked businesses for their “lack of soul” over employee lay-offs.

K Peter Turnquest, in a Zoom presentation to members of the Old Fort Rotary Club, said that while the Prime Minister “may have let his passion get a little bit high” during Sunday’s national address he never intended to be “insulting or disrespectful” to Bahamian business owners and investors.

He added that Dr Minnis was voicing concern about the number of Bahamians ending up in the unemployment benefit lines at the National Insurance Board (NIB), and the increasing strain this was placing on the social security system’s $1.7bn reserve fund.

• KP reassures Minnis’ ‘heart in right place’ • Acknowledges ‘passion may have run high’ • PM concerned at growing NIB benefit line

Recognising the “many, many entities that are carrying their employees despite not receiving a dime of income”, Mr Turnquest himself hailed the private sector for its contribution to Hurricane Dorian relief efforts with “most discharging their civic responsibilities”.

Mr Turnquest’s efforts

to calm private sector fears came after Peter Goudie, The Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour committee head, warned that the Prime Minister’s comments had been met with “a huge backlash” from the business community “when so many of them

are suffering as well”.

“I wouldn’t want to speak for the Prime Minister,” the deputy prime minister replied. “I know he’s frustrated, as we all are, that we are witnessing a situation none of us could have predicted, and are witnessing a challenge that is quite massive.

“I certainly recognise the contribution the business community is making to this country. We recognise there are many, many entities that are carrying their employees despite not receiving a dime of income.”

Mr Turnquest added that the private sector “really showed its colours and stripes” by the way it came through to provide

SEE PAGE 4

$3.99

QC questions legitimacy of VAT ‘estimate’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A PROMINENT QC is arguing that Bahamian companies will be breaking the law if they comply with the government’s request to file “estimated” VAT returns for March today.

Wayne Munroe QC, pictured, told Tribune Business he could find nothing in the VAT Act that permits registrants to file anything other than accurate returns and payments to the Department of Inland Revenue.

Pointing out that companies subject to the nationwide lockdown would also be violating the government’s Emergency Powers Orders if they went to their offices to complete the necessary paperwork, Mr Munroe said he could not advise clients to break the law over the monthly and quarterly VAT returns due today.

Arguing that “we’re all making a sacrifice”, Mr Munroe said that if his firm and others were unable to earn revenues due to the lockdown then it was “only fair” that the government not earn income as well.

“They’re now calling for VAT returns and payments on April 21 [today],” the attorney explained, “but the law in place prevents anyone but essential services from complying with it because you can’t do it from your office. My office manager is diabetic, and they have have her so scared that she won’t go into the office.

And I won’t make her.”

Mr Munroe said the VAT Act’s stipulations directly contradicted both the government’s Emergency Powers and related Orders, and the Department of Inland Revenue’s call for estimated filings, as it mandated that registrants “must make accurate payments”.

“They’re in a state,” he added of the government. “I don’t know how the government can tell you to break the law. I intend to obey the Competent Authority [the prime minister]. He tells me my person can’t go in, she won’t go in, and I don’t see any ability in the VAT Act to estimate anything.”

SEE PAGE 3

Oil price crash ‘once in lifetime opportunity’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday said the global oil market crash has presented The Bahamas with a “once in a lifetime opportunity” to ease the pain of the deep COVID-19 recession.

Desmond Bannister, minister of works, told Tribune Business that if Bahamas Power & Light (BPL) were able to purchase now and lock-in those prices for several years it could “offset much” of the anticipated $1bn decline in the nation’s foreign currency reserves this calendar year.

He spoke after oil prices plunged into negative territory for the first time in history, as producers paid traders to take the supply glut of their hands due to the world’s fuel demand drying up as a result of the global pandemic.

• Minister: Can ‘offset much’ of $1bn reserves fall • Acknowledges urgency for BPL to exploit slump • Oil explorer says no impact on drilling operation

DESMOND BANNISTER US onshore crude prices, as measured by the West Texas Intermediate (WTI) benchmark, collapsed from $18 per barrel to -$38 per barrel in a matter of hours as rising oil stockpiles threatened to overwhelm

storage facilities.

Prices had barely recovered to positive territory last night, with per barrel costs standing at just $1.35 under the WTI benchmark.

Brent Crude, meanwhile, was trading at $25.39 per barrel as global market developments reinforced the importance of The Bahamas doing everything it can - despite it and BPL’s scarce financial resources to exploit all-time oil price loans.

The prime minister’s national address signalled that the government understands that it must act urgently given the potential for bringing energy and transportation cost relief to struggling Bahamian

businesses and households, as well as reducing pressure on the foreign currency reserves and fixed exchange rate parity with the US dollar.

“With fuel costs being the largest single item in the import bill, a focus must be sustained on ensuring that BPL can lock in significant savings from the current external environment of low oil prices,” Dr Minnis said in his address.

Mr Bannister yesterday confirmed that talks between BPL and the Ministry of Finance over the assistance the latter may be able to provide to exploit

SEE PAGE 2

PAGE 2, Tuesday, April 21, 2020

THE TRIBUNE

GRAYCLIFF SLAMS ‘UTTERLY Scotiabank warns FALSE’ NIB ALLEGATIONS clients over scam

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

GRAYCLIFF last night slammed claims that it was delinquent in paying National Insurance Board (NIB) contributions on behalf of staff as “utterly false”.

The high-end hotel and restaurant hit out following widely-circulated social media claims that it had not paid social security

contributions since 2016, and that staff were given no letter or warning before being laid-off amid the COVID-19 pandemic.

Roberta Garzaroli, Graycliff Company’s general manager, in an e-mailed response describing the allegations as “utterly false” also said the property was investigating whether any employee may be behind the information posted online.

She added: “In fact,

Graycliff Company has fully paid its dues to the NIB and, in addition, has pre-submitted all the B80 forms for all employees to NIB to expedite their claims during this COVID-19 pandemic.”

Ms Garzaroli produced the company’s NIB C-10 statement for February 2020, which shows that some $11,687 in contributions were paid by end-March leaving a zero balance owing.

SCOTIABANK Bahamas yesterday warned customers not to provide confidential banking information to persons who call claiming there is an issue with their account.

The bank, in a statement, said it was aware of so-called “phishing” phone calls being made to clients. It explained that the perpetrators claim there is an issue with the customer’s account in a bid to

deceive them into handing over personal details such as account numbers, passwords and access codes.

The Canadian-owned bank, describing such calls as unauthorised and fraudulent, explained that “phishing” is a type of fraud where criminals use fake messages and scare tactics to bait customers into providing

information giving them access to their bank account.

“If you receive any message like these, do not respond,” Scotiabank said.

“Please remember that Scotiabank will never contact customers asking for confidential information such as your ATM PIN or any passwords. PINs and passwords must be kept confidential and not shared with anyone.”

Oil price crash ‘once in HARDWARE STORES FEELING lifetime opportunity’

PINCH DESPITE RELAXATION

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

SOME Bahamian hardware stores yesterday said they might remain closed and still lay-off staff despite being permitted by the government to open from 8am to 8pm on Wednesday and Friday.

Franklyn Russell, the Home Care Centre’s general manager, told Tribune Business the company was still preparing to temporarily lay-off several staff despite the relaxed restrictions on the sector.

He said: “What could you do? If the man [the prime minister] said open up on Wednesday and Friday, what can you do? We are inside now doing inventory.

This is bad, man. We are getting ready to lay off. We

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have about seven staff now and we are about to layoff three of them now. We dropped from making thousands of dollars a day to making nothing, and these suppliers want their money.

“What could you say?

They need to decide what they are going to do. If we are only opening on Wednesday and Friday that means the people don’t have much time to do anything, just sitting down home every day.”

“I have people calling for orders, but I can’t do anything. I’m scared. The police are all around. You don’t want to pay that fine, and you don’t want to get locked up because they will march you down town,” added Mr Russell.

“We’re just hanging low.

We aren’t doing anything. If we could assist you and you call in, we would try to assist you, but we can’t do any service at the door like that.

We have enough trucks for delivery if we need to.”

David Knowles, general manager of C&C Locksmithing and Hardware, said: “Honestly I don’t

know if I will be opening up because I pretty much have a small hardware store. It is a combination between a locksmith store and a hardware store, so I probably won’t be opening this week.”

“My business partner started off with a small hardware store, and I came along with a locksmith company, so it is a locksmith company/hardware store.

Number one, I don’t want to get into any trouble because we do mostly locksmithing and locksmiths haven’t gotten any permission to open up their stores,.

“Number two, the hardware side isn’t a big money maker for us either which way, so it doesn’t make sense for us to be open. If we were on the level of JBR or something like that then it would have made sense.”

Floyd Watkins Jr, general manager of Hadji’s food and hardware store, said: “We are a variety store on paper, so we sell groceries and have been open this entire time. This would not affect us in any way, shape or form.”

FROM PAGE ONE record oil price lows were “ongoing”.

Yet, recognising the further potential relief that may come from the latest price crash, the minister told Tribune Business: “The country needs to move quickly on this. Quite frankly, when you look at where the market is now and how it could benefit BPL and the country, it might mitigate the recession we are supposed to see.

“It’s an opportunity that doesn’t come around very often in most lifetimes. If you look at BPL being able to buy in now and hedge on the prices for a few years to come, it would offset much of the loss we anticipate to come from the foreign reserves.”

The oil price crash has triggered several other potential changes in Bahamian energy market dynamics. Several sources, speaking on condition of anonymity, questioned the wisdom of BPL and the wider Bahamas following through at present to seal the deal with Shell North America for the $250m

liquefied natural gas (LNG) facility at Clifton Pier.

With oil costs so low they suggested it “doesn’t make sense” to conclude that agreement, although BPL needed to proceed with the new power plant aspect of its arrangement with Shell.

While many observers will likely argue that oil prices will rise once again after the COVID-19 pandemic has passed, Mr Bannister declined to comment on the implications for BPL’s talks with Shell.

“The figures are very interesting, and definitely something to look at,” he added. ‘We’re going to see what we can do to make a difference.”

Meanwhile, Bahamas Petroleum Company (BPC), the oil exploration outfit that has pushed back the timeline for drilling its first exploratory well in waters some 100 miles south-west of Andros to early October, yesterday said the plunge in global prices and demand would not have any impact on its operations.

Simon Potter, BPC’s chief executive, in an e-mailed response to Tribune Business questions,

said: “The current oil price that has turned negative is specifically the onshore US crude price. This reflects a number of factors including the dramatic drop in demand (all staying at home - no car journeys, no flights), the finite amount of storage in such a closed market and therefore the very peculiar situation of having to pay to put the crude somewhere – hence the negative price.

“Any BPC production will be sold on the international (global) markets where traded crude prices are reflected by, say, Brent crude pricing (though there are many other crude price markers). Brent is currently trading around $26 per barrel – roughly similar to the last drop in price in 2015-2016.

“Further, any successful BPC exploration today won’t be produced for a few years yet, so rather independent of today’s oil price. Of more relevance is the crude price in say five years time; the future oil price. Our well is now timed for the fourth quarter 2020. Even by then crude pricing may well have recovered somewhat.”

THE TRIBUNE

Tuesday, April 21, 2020, PAGE 3

Plant nurseries: Opening will ease ‘unique’ situation

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net PLANT nurseries yesterday said the limited opening hours permitted by the government will alleviate “a unique” situation where they have had to maintain payroll without any revenue coming in.

Mark Thompson, general manager of Nature’s Way plant nursery, explained that the industry had no choice but to keep staff on otherwise its massive inventory would have wasted away.

“We had asked for some consideration because plant nurseries are unique in that we have a lot of plant inventory, so while we have had this shutdown we had to maintain that inventory,” he said.

“The government has given us a concession to keep our staff employed to maintain our inventory.

Now the back side of that is that we have payroll going

out with zero revenue coming in.”

Mr Thompson added: “We all want to be responsible about this, and we all understand what the prime minister is trying to achieve, so we asked if we could get some permissions to do some deliveries and curb-side pick-ups to offset some of the expenses we were incurring - not just with staff payroll but other operational costs that continue.

“Our situation is unique because we actually had people employed and I couldn’t let my inventory go to the garbage. We were proud of the fact that we were able to keep our staff basically working 30 hours a week, but as you can imagine since the end of March and no revenue, you burn a lot of fuel so to speak,” said Mr Thompson.

“So we sent letters in indicating that we were prepared and we had sanitizers, gloves and masks, and we are managing this

in a responsible way.” The government has given permission for plant nurseries to open between the hours of 6am and 12pm on Mondays and Thursdays as it moves to ease some of the restrictions imposed by the national COVID-19 lockdown.

Sidney Carroll, general manager of Bahamas Palms Nursery, said of the move: “I think it’s good because we have a lot of people that are home, and those who want to start a backyard nursery will be able to save some money and occupy their time with something constructive and help in giving this nation some food security. I am open now.”

The prime minister also announced at the weekend that landscape maintenance companies will now be treated as an essential service, and allowed to operate from 9am to 5pm, Monday through Friday.

However, for some, concerns linger over the threat

posed by the virus.

Reginald Cartwright, Earth Design Landscape Company’s general manager, told Tribune Business: “I’m happy about it, but at the same time, quite frankly, I’m concerned that with all of the openings this virus will continue to spread.

“It’s good because at least we have some money trickling into the economy, but your health is always better than money. That’s why I continued to keep our doors closed to we can practice safety as well.”

Mr Cartwright added: “We’re not open to the public at all because I’m still concerned about the pandemic as it is. We do have plants for sale, but we try to sell them as deliveries. So we only have one guy going out to drive, and he has his mask on and we try to limit contact.

“When we go to properties we stay away from the client and everything is done via e-mail, or we call

to let them know what’s going to be done and keep the employees away from the customers and vice versa.”

“It’s a catch-22. I can’t say I blame the prime minister’s decision but he is doing what he feels is in the best interest of businesses and citizens because, quite frankly, he is in a ‘damned if you do’ and damned if you don’t’ situation.”

Mr Cartwright continued: “In my opinion I would have preferred if he kept the country closed for two or three weeks to try and hit the peak and then level out. I think if we would have done that initially we would have been over this complete lockdown.

“But the reality is everyone can’t do that because everybody can’t buy two weeks or three weeks of groceries, and then people would complain that all of the hotels are shut down and no one is making any money. But the reality is tourism and banking

are our two major money makers for the economy, so with those down it isn’t like any money is pumping into the economy anyway so you may as well sit home.”

“I’m not the one making the decisions, and it is easy for anyone to critique from the outside rather than have to make the decision themselves, but at this time we have to appreciate whatever he does and understand that he is trying to make the best decisions for us health-wise and economically. If no one is making any money then no one can go out and buy groceries and pay your light bills.

“If we would have shut down for two weeks I think we would have hit the curve, so my biggest concern is that the worst is still ahead of us by doing these things. But I’m not going to be one of those Bahamians that critiques the Prime Minister because I wouldn’t want to be in his shoes right now.”

AUTO DEALERS: PARTS OPENING NO BIG DEAL

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AUTO dealers yesterday said opening their parts departments for one day per week is “not a big business boost” - especially since they are still unable to service clients’ vehicles.

Fred Albury, the Auto Mall’s principal, told Tribune Business he will reopen today between 8am and 5pm “for the customer” given the numerous inquiries received for vehicle parts in the month since the COVID-19 lockdown was first implemented.

Emphasising that “safety is paramount” for both staff and customers, he admitted he “would not be opening” were it not for other Bahamas Motor Dealers Association (DMDA) members pushing for at least a partial easing of the restrictions imposed on the sector.

The government is permitting auto parts shops and dealers to open on Tuesdays only at present, as it seeks to loosen the nationwide economic shutdown enacted to halt the spread of the COVID-19 virus in The Bahamas.

Mr Albury said allowing the service departments at

QC questions legitimacy of VAT ‘estimate’ FROM PAGE ONE

Mr Munroe, saying he will not advise any of his clients to “break the law”, added: “It’s only fair. We can’t get revenue so why should they [the government] be able to make revenue. We’re all making a sacrifice. There’s something peculiar about it.”

The government, with revenues down an estimated 70 percent due to the COVID-19 lockdown and tourism shutdown, is eager to lay its hands on every cent of VAT income it can get from businesses still operating given the multi-million dollar obligations that it must meet every month.

With many companies closed due to the lockdown, the Department of Inland Revenue has said it will permit VAT registrants to “estimate” their turnover for the due monthly and quarterly filings - the issue that Mr Munroe is challenging.

“Although some businesses do not have access to all their latest records at home, due to the COVID-19 related closures, they are able to file VAT returns based on an estimate of turnover for the period and submit amendments later,” the Department of Inland Revenue said in a statement last week.

Auto Mall and other dealerships to open would have given the industry a more significant boost, noting that 50-60 percent of Auto Mall’s parts sales were conducted through this part of its business.

“By tomorrow [this] afternoon we’ll have a better gauge of what the demand looks like,” he added. “We have to factor in that people are not driving their cars as much, so the people that want or need parts will probably be the essential workers that are driving out there. We’ve had a number of inquiries through our website and Facebook page.

“It would be nice to have the service department opened up because people sometimes buy parts and say they need to be installed, but it is what it is.

We’ll do our part to supply the customers, and they’ll have to do what they need to do to get them installed.”

With service departments shut down, Mr Albury voiced concern that some motorists may have to turn to “fly-bynight” or so-called bush mechanics to work on their vehicles - a development he warned could lead to other problems.

“Safety is paramount,” he “While there will be no penalty for businesses who submit amendments for filings during the emergency order, the penalties associated with late filings are still in place.”

The government is pressing ahead with VAT collections despite calls from the Chamber of Commerce to defer quarterly returns/payments from micro, small and medium-sized enterprises (MSMEs) as means to give them extra cash flow to keep staff employed and ride out the COVID-19 pandemic.

The chamber, in a statement, said: “The Novel Coronavirus (COVID-19) is a health and economic crisis of epic proportions. Businesses are faced with the difficult decision of having to reduce staff and manage operational costs, while the Government of The Bahamas continues to work on keeping its citizens and residents safe in the face of the spread of COVID-19.

“At the time of the initial VAT deferral [in March] no one knew how long businesses would not be allowed to operate. In the interim, businesses have continued to pay employee salaries, company utilities and rent. They also had to pay vendors for goods shipped prior to the shutdown, customs to clear shipments from the docks, additional security services to protect closed premises, along with other expenses.

“Given the fiscal state of many of these MSMEs, it is the chamber’s strong recommendation that the Government of The Bahamas defer the payment of VAT quarterly filings.”

added of today’s re-opening. “My parts manager is in preparing, with signs such as ‘no mask, no admission’ and organising the social distancing, as well as getting the team together. Our people will rotate, so there will be a new team next week.

“To be honest with you, I would not be opening but other BMDA members have really advocated to open. I’m going to give it a go. It’s not a big boost for the business. I’m doing it for the customers out there. Probably 50-60 percent of our parts sales are done through the service

department, so the overthe-counter sales will not be so great for us.”

The public transportation shutdown will also impact parts demand, Mr Albury said, who added that a reduction or levelling out of the number of new COVID-19 cases could see a gradual re-opening of more of the Bahamian economy.

Mr Albury’s position was backed by Rick Lowe, Nassau Motor Company’s (NMC) operations manager/director, who revealed that several clients had been unable to retrieve their vehicles from the

company’s service department due to the national lockdown.

“He’s [the prime minister] allowed us to open up the parts department, not services, so for us it’s not a great deal,” Mr Lowe added. “We need services open. I understand the pressure they’re under but it’s weird.

“It’s not a major part of our business but there are some customers that have been calling and e-mailing.

We’ve been closed since mid-March, and I think that we have cars in service that customers cannot get.

They were brought in a day

or two beforehand and got locked in.

“We would like to get some idea of what they’re [the government] thinking, but they go from week to week. You don’t get a gut feeling for what they’re attempting to do.”

The auto parts re-opening is likely to benefit specialist parts stores, such as AID and WHIM. AID will receive a further boost due to the government allowing hardware and home stores to open from 8am to 8pm on Wednesdays and Fridays, as it specialises in this sector too.

PAGE 4, Tuesday, April 21, 2020

THE TRIBUNE

Govt warns of $800m deficit FROM PAGE ONE

shadow, Chester Cooper, would burden current and future Bahamian generations with an extra $180m in annual debt servicing (interest) costs.

Mr Turnquest suggested that increasing “already high debt levels” by such a significant sum threatened to create a debt spiral that will ultimately “collapse” in on itself, with the end result that The Bahamas might default or be forced to seek a bail-out from the likes of the International Monetary Fund (IMF).

He added that while the government has the means to borrow the sums suggested by Mr Cooper, given that hundreds of millions will be required to cover both its financial holes and revive the economy once the pandemic has passed, it will also focus on “managing expenditure” to minimise the amount of new debt taken on.

Confirming that the

government is seeking to get through the last three months of 2019-2020 without undertaking significant new borrowings, Mr Turnquest said its strategy is to try and “wrap” all such activities into the 2020-2021 budget that will be unveiled on the last Wednesday in May. Confirming that the economic and tourism shutdown means “relatively little revenue” is being earned by the government, he added that the 2019-2020 fiscal deficit is likely “to come in at as much as $800m” due to the ongoing COVID-19 fall-out.

This represents a further $132.5m increase from the revised $677.5m post-Hurricane Dorian forecast that was approved by Parliament as recently as February. It gives an early insight into the fiscal damage being inflicted by a pandemic which is driving the government to a record annual deficit, which measures by how much its spending exceeds its income.

Mr Turnquest warned

that the 2020-2021 deficit is “looking even worse” due to COVID-19’s lingering effects, with the government likely to miss out on the VAT and import tariff revenues it expects to earn during the summer and fall months.

Responding to calls for The Bahamas to ease the pain by seeking forgiveness for some of its debt, the deputy prime minister replied: “That’s not really an option for us as we’re a high income or middle income country, and lenders are not going to write-off that debt as they would a Haiti.

“In addition to that, there has been some commentary about the level of borrowing the government should undertake all the way up to $2bn. The difficulty with borrowing $2bn is not necessarily finding the money, although it will be difficult in this environment, but paying it back.”

Warning that the debt servicing costs associated with borrowing an extra $2bn work out to “upwards

of $180m a year”, Mr Turnquest added: “That will be further tax dollars that we will not have available in an already-stretched budget.

“We have to be careful about the amount of debt [taken on] as it runs into the long-term, and will saddle future generations with $2bn of debt.” With The Bahamas having amassed annual deficits reaching into the hundreds of millions since the country’s independence in 1973, Mr Turnquest said the country had “rarely paid that back” in terms of lowering its debt costs.

“To add $2bn to already high debt will be an onerous challenge,” he added. “It would grow debt year after year until such time we have a collapse, and that’s not something we’re particularly keen on... There are persons willing to lend us money; they are beating down the doors to do so but, as in any crisis, they are looking for opportunities and we have to be careful in doing so.”

While the government would have the capacity to

PM ‘meant no disrespect’, deputy tells private sector FROM PAGE ONE Hurricane Dorian relief and assistance to those whose lives were devastated on Abaco and Grand Bahama.

“We all have civic responsibilities, and I believe most businesses in the country have been discharging that responsibility,” he said. “On this one I believe the prime minister may have let his passion run a little high but his heart is in the right place.

“He’s concerned about the number of people being put on the NIB line, and what that means for this level of support long-term that we are providing. I don’t think he meant it to be insulting or disrespectful,

if I can use that term. He wanted to implore all of us to go the extra mile as best we can given the resources available.”

Mr Turnquest’s efforts to smooth over hurt private sector feelings came after the prime minister blasted business owners for so rapidly laying-off long-serving staff in a bid to slash costs in response to the COVID-19 pandemic.

In a departure from his prepared script, Dr Minnis said: “I am extremely disappointed when I see Bahamian companies laying off individuals who had worked with them ten, 20 years. “[Employees] who had made them wealthy; who had given them the opportunity to send their children to university both here and abroad; who have given them opportunities for their children to become professionals and leaders in this country; who have given them opportunity to live in lavish homes and have great lives - individuals (and) Bahamians who are from humble beginnings but who have made sacrifices to make fellow Bahamians wealthy and living good.”

He added: “Yet after all the sacrifices these Bahamians did, those who have attained wealth have laid off

such Bahamians. I ask you, are you humane? Where is your heart? Where is your compassion? Do you have a soul?”

“Please let’s be humane and consider those individuals who have made great sacrifices to make you what you are today, but as soon as things get tough you want to retain and hold on to all you’ve got and continue to take advantage of individuals. I plead and I ask all Bahamians today, please let us not be human beings but let us be humane. I ask you where is your heart, or do you have a heart?”

It is unclear whether Dr Minnis had a particular target or targets in mind, but his broad-brush language that seemed to apply to the entire business community brought instant push back and negative reaction.

The Chamber of Commerce described itself as “disappointed” by the Prime Minister’s address, adding that the lay-offs - which it pointed out are temporary in nature - were often necessary to ensure a company can survive and provide employment once the pandemic ends.

“The Bahamas cannot rebound and have a robust economic environment post COVID-19 unless businesses survive this health

and economic crisis,” Khrystle Rutherford-Ferguson, its chairman said. “Every day the business community is having to make difficult decisions that have impacted some of its employees after not having the ability to generate revenues for over four weeks.

“Many business owners, small, medium and large, are trying to find ways to keep their staff employed as long as possible, including dipping into their own pockets to meet the need. None of these decisions have come easily. Only the businesses that survive this crisis will be able to stimulate the economy by providing future jobs for Bahamians.”

The fear is that the prime minister may have alienated the very private sector he needs to revive and re-open the Bahamian economy while undermining its confidence. Several sources, speaking on condition of anonymity, suggested his remarks sounded like “a campaign speech” and designed to make the private sector a scapegoat in the public’s eyes.

Others argued that it betrayed a lack of understanding of how businesses operated, given that payroll is often their largest expense and they have not earned any revenue for four weeks.

borrow the sum suggested

by Mr Cooper if it became absolutely necessary, Mr Turnquest said it was currently “looking more to manage expenditure and be as prudent and careful as we can”. Getting loss-making state-owned enterprises (SOEs) to a break even/ cost recovery position, and finding new revenue sources, also form part of the strategy.

“The bad news is that we’re in for a rough period,” the deputy prime minister added.

“There’s no way to sugar coat that. We will have to make tough decisions. We will have to go to the Bahamian people cap in hand to ask them to tighten their belts. We have a plan, know what we have to accomplish and can be strategic about it.

Calling on all Bahamians and the private sector to “put on our thinking cap”, and devise new ways to grow the Bahamian economy and develop revenue streams for the government, Mr Turnquest reassured that The Bahamas’ fixed exchange rate

regime and one:one parity with the US dollar is not in any danger.

He said the forecast $1bn “draw down” on the foreign currency reserves during 2020 would still leave them at a “decent” level, given that they entered the COVID-19 crisis at more than $2bn. “We have the ability to borrow in foreign currency to support the peg,” Mr Turnquest added.

“We are looking to bolster that through borrowing in foreign currency to support the foreign exchange levels.

That comes with its own risk.

Whatever you borrow in foreign currency you have to pay back in foreign currency, so you have to be careful between borrowing in local and foreign currency, but if we have the need to do that we have the capacity in the short-term.”

Mr Turnquest also pledged that the National Insurance Board and social security system will have sufficient financial resources “to ensure the most vulnerable among us don’t fall through the cracks”.

Business owners ‘not living in ivory towers’ FROM PAGE ONE being unreasonable with their employees,” he told Tribune Business. “It’s not factual, certainly in our case.

I’ve spent a considerable amount of earned capital on expanding businesses in this country, and frankly I don’t want to hear it.

“Most of us are spending considerable sums of money propping them up, and that’s a big concern to us because we don’t know when the end date is. For my companies we’re providing six to eight weeks outside of the National Insurance Board (NIB), so once NIB is finished we will provide an additional amount of stimulus.

“But just as there’s only so much the government can do, there’s only so much we can do. We provided six to eight weeks of stimulus for employees but we don’t know if it’s going to be enough. That’s all we can afford. If this goes longer we will have significant problems because we’re taking on debt to pay for that. We’ve got debt to pay, bills to pay, and risks that are significantly more than employee risk.”

Mr Myers is not only in his criticisms. Arinthia Komolafe, the Democratic National Alliance’s (DNA) leader, alluded to the prime minister’s outburst in a statement yesterday in which she said: “It is unwise to pit employees against employers at this crucial time.

“We need words that unite us as a people not comments that divide us. We will need the private sector, civil society, workers and the whole Bahamas to rebuild our economy. This is not the time for pandering or comments that raise tension.”

Mr Myers, whose landscape maintenance, nursery and retail hardware businesses have been given permission to re-open by the government over varying hours, said staff payroll was often the largest expense for companies.

While it was not the single largest cost item in the retail sector, he pointed out that other expenses such as inventory, rent and insurances all had to be serviced

during a time when most businesses in the industry have earned zero revenue for the entire month they have been closed due to the COVID-19 lockdown.

“Our most important assets are our people,” Mr Myers added. “We put a lot of money into training our people, providing them with health insurance, and they’re fairly compensated and paid more than the minimum wage.

“On the whole any good company values their employees. But that has limits. We have the risk of all our inventory hanging out there with no income.

We have our machinery and equipment out there with no income and duty paid. We’re suffering as well.

“It isn’t like we’re sitting in our ivory towers drinking a cocktail and having a good time. That’s not the case.

We all have to take the high road here. If he’s [the Prime Minister] got concerns about certain businesses he should talk to those companies,” Mr Myers continued.

“That’s dangerous, making a broad brush generalisation. I hope he’d back down some from that as most businesses are working very hard to get themselves and their employees through this. Let’s stay rational and try to work together and not point the finger. Everybody’s trying to get through this.”

Mr Myers suggested that Bahamian commercial banks needed to recognise all elements of the economy “are suffering” and go further than simply offering loan deferrals, as this will ultimately result in interest being charged on the accrued interest added to a borrower’s debt.

“We’re all taking it on the chin, taking a gut punch,” he told Tribune Business.

“We’re all down on our knees. Share the load. The banks can’t sit back and say pay interest in top of interest. That’s hardly a gift.”

He argued that the Central Bank needed to examine the feasibility of reducing its benchmark discount rate to provide some relief to troubled borrowers as the Bahamian economy continues to nosedive.

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Tuesday, April 21, 2020, PAGE 5

4/20 uncertainty: Marijuana industry tested in virus crisis LOS ANGELES Associated Press THE unofficial holiday celebrating all things cannabis arrived yesterday as the nation’s emerging legal marijuana market braces for an economic blow from the coronavirus crisis, with many consumers reducing spending or going underground for deals.

It was supposed to be a long weekend of festivals and music culminating on April 20, or 4/20, the code for marijuana’s high holiday.

Instead, it has been reduced to an online replica because of stay-at-home orders to curb the pandemic.

Virtual parties and video chats are replacing vast outdoor smoking sessions to mark the rise of legalisation and celebrate cannabis culture.

The origins of the annual celebration are believed tied to a group of Northern California high school friends, who used the code as slang for smoking pot in the early 1970s.

“Stay home,” the National Organization for the Reform of Marijuana Laws, or NORML, said bluntly. San Francisco Mayor London Breed threatened arrests: “We will not tolerate anyone coming to San Francisco for 4/20 this year.”

For businesses, 4/20 is usually their once-a-year Black Friday, when sales soar. Instead, they are reporting up-and-down buying and pondering an uncertain future.

The pandemic means the world economy could face its worst year since the Great Depression in the 1930s. In a sign of what’s to come, US retail sales overall dropped nearly 9% in March — a record. Millions are out of work.

As for the holiday, “there’s a somber feeling to this one,” said Jordan

Lams, CEO of Pure CA, which specialises in marijuana extracts and does business as Moxie brand products. Before the outbreak, “it was going to be the biggest 4/20 in history,” Lams said.

Steve White, CEO of Arizona-based Harvest Health & Recreation, said he’s watching to see if consumers treat marijuana more like beer or toilet paper when money runs short.

When the economy tumbles, beer sales traditionally spike. With toilet paper, panic-buying might empty shelves but people do not use more of it. They just buy less later.

It will be a telling year, because no one in the relatively new industry knows if sales will plunge, stay flat or even rise.

“Do people buy less cannabis, or does it become more ingrained as part of their daily life?” White said.

The uncertainty in the market poses the latest challenge for an industry that’s expanded in some form to all but a handful of states.

The risks are spotlighted in California, where businesses contend with hefty taxes, an illicit market that still dwarfs the legal one and a tourism-reliant economy that’s crippled by virus restrictions.

Because cannabis remains illegal at the federal level, most banks don’t want to do business with pot companies and they aren’t included in the coronavirus rescue package that will help other businesses.

Before the virus, “we were already teetering on ... an edge of a cannabis collapse,” said Los Angeles dispensary owner Jerred Kiloh, who heads the United Cannabis Business Association. “It’s going to be very difficult for cannabis businesses to make it through this pandemic.”

YOUR

CHOICE FOR THE FAMILY WWW.FACEBOOK.COM/JOYFM1019

PAGE 6, Tuesday, April 21, 2020

THE TRIBUNE

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

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he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.

Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

PEOPLE wearing face masks walk past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange yesterday. Shares were mixed in Asia yesterday, while oil prices have fallen back.

Photo: Vincent Yu/AP

MEMBERSHIP PACKAGES

Oil price goes negative as demand collapses; stocks dip

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NEW YORK Associated Press OIL futures plunged below zero yesterday, the latest never-before-seen number to come out of the economic coma caused by the coronavirus pandemic.

Stocks and Treasury yields also dropped on Wall Street, with the S&P 500 down 1.8%, but the market’s most dramatic action by far was in oil, where the cost to have a barrel of US crude delivered in May plummeted to negative $37.63. It was at roughly $60 at the start of the year.

Traders are still paying $20.43 for a barrel of US oil to be delivered in June, which analysts consider to be closer to the “true” price of oil. Crude to be delivered next month, meanwhile, is running up against a stark problem: traders are running out of places to keep it, with storage tanks close to full amid a collapse in demand as factories, automobiles and airplanes sit idled around the world.

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For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

MONDAY, 20 APRIL 2020

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,140.61 | CHG: -6.90 | %CHG: -0.32 | YTD: -90.99 | YTD%: -4.08 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.70 2.60 2.00 5.47 12.77 6.17 4.50 10.60 3.64 5.10 10.88 8.15 16.99 9.40 4.25 15.21

52WK LOW 3.35 20.91 5.50 5.39 2.09 0.67 2.00 10.21 5.60 3.75 6.01 2.53 1.80 8.00 6.63 13.04 6.98 3.14 13.85

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.55 17.43 6.00 6.68 2.10 1.62 2.99 11.26 6.00 4.07 6.01 2.82 4.90 9.85 8.15 14.00 8.97 4.15 15.20

CLOSE 3.55 17.43 6.00 6.68 2.10 1.62 2.99 11.26 6.00 4.07 6.01 2.91 4.90 9.61 8.15 14.00 8.97 4.00 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 0.00 -0.24 0.00 0.00 0.00 -0.15 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

200

2,500

VOLUME

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

P/E 14.9 18.7 N/M 18.1 N/M N/M -6.8 15.6 13.4 22.1 42.9 28.5 10.5 14.9 11.2 17.2 9.6 19.7 24.1

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.79% 7.23% 0.00% 3.89% 0.00% 1.23% 0.00% 6.39% 3.67% 2.95% 0.00% 14.91% 1.22% 3.41% 2.94% 3.86% 2.23% 3.00% 4.01% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 0.37% 3.81% 0.24% 4.38% 0.23% 2.75% 5.76% 5.76% 12.81% 12.81% 0.94% 3.72% -3.46% 2.09% -0.11% 3.43% -3.33% 1.53% -0.32% 10.20% -1.58% 15.37% 0.88% 5.22% -4.91% 10.77% 1.89% 6.75% -1.95% 0.38% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Jan-2020 31-Jan-2020 31-Jan-2020 31-Dec-2019 31-Dec-2019 31-Mar-2020 31-Mar-2020 31-Mar-2020 31-Mar-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020

MUTUAL FUNDS 52WK HI 2.30 4.38 2.09 195.13 166.73 1.67 1.85 1.76 1.24 8.34 10.26 7.00 12.15 12.58 10.81 10.00 8.98 11.79

52WK LOW 1.67 3.30 1.68 164.74 116.70 1.61 1.75 1.70 1.14 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.30 4.38 2.09 195.13 166.73 1.67 1.79 1.75 1.16 8.31 10.07 7.00 11.42 12.58 10.52 N/A 8.98 11.40

MARKET TERMS

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

30-Sep-2019 30-Sep-2019 30-Sep-2019

that, traders are willing to pay others to take that oil for delivery in May off their hands, so long as they also take the burden of figuring out where to keep it.

“Almost by definition, crude oil has never fallen more than 100%, which is what happened today,” said Dave Ernsberger, global head of pricing and market insight at S&P Global Platts.

“I don’t think any of us can really believe what we saw today,” he said. “This kind of rewrites the economics of oil trading.”

Also exacerbating the volatility is that few traders are buying and selling US oil to be delivered in May. They won’t even have the opportunity to do so after Tuesday, when trading contracts for it expire and the earliest delivery they’ll be able to buy is for June.

Brent crude, the international standard, fell nearly 9% to $25.57 per barrel.

The plunge in oil sent energy stocks in the S&P 500 to a 3.7% loss, the latest in a dismal 2020 that has caused their prices to nearly halve.

Halliburton lurched between gains and sharp losses, even though it reported stronger results for the first three months of 2020 than analysts expected.

The oilfield engineering company said that the pandemic has created so much turmoil in the industry that it “cannot reasonably estimate” how long the hit will last. It expects a further decline in revenue and profitability for the rest of 2020, particularly in North America.

The S&P 500 fell 51.40 points to 2,823.16. The Dow Jones Industrial Average lost 592.05 points, or 2.4%, to 23,650.44, and the Nasdaq dropped 89.41, or 1%, to 8,560.73.

The losses ate into some of the big gains indexes have made since late March, driven lately by investors anticipating the potential reopening of businesses as infections level off in hardhit areas. Pessimists have called the rally overdone, pointing to the severe economic pain sweeping the world and continued uncertainty about how long it will last.

“The government can declare whatever they want in terms of encouraging people to get out and do stuff,” said Willie Delwiche, investment strategist at Baird. “Whether or not broad swaths of society do

that remains to be seen. It’s going to take seeing people start to get out and do stuff again. That will be the necessary positive development, not just declaring getting things open.”

More gains from companies that are winners in the new stay-at-home economy helped limit the market’s losses. Netflix jumped 3.4% to set another record as people shut in at home look to fill their time. Amazon added 0.8%.

In Asia, Tokyo’s Nikkei 225 fell 1.1%. The Hang Seng index in Hong Kong lost 0.2%, and South Korea’s Kospi fell 0.8%.

European markets were modestly higher.

The German DAX was up 0.5%, the French CAC 40 was up 0.7% and the FTSE 100 in London gained 0.7%.

In a sign of continued caution in the market, Treasury yields remained extremely low. The yield on the tenyear Treasury slipped to 0.62% from 0.65% late on Friday.

Stocks have been on a general upward swing recently, and the S&P 500 just closed out its first backto-back weekly gain since the market began selling off in February. Promises of massive aid for the economy and markets by the Federal Reserve and US government ignited the rally, which sent the S&P 500 up as much as 28.5% from a low on March 23.

More recently, countries around the world have tentatively eased up on business-shutdown restrictions put in place to slow the spread of the virus.

But health experts warn the pandemic is far from over and new flareups could ignite if governments rush to allow “normal” life to return prematurely. The S&P 500 remains nearly 17% below its record high as millions more US workers file for unemployment every week amid the shutdowns.

Many analysts also warn that some of the the recent rally for stocks is due to expectations the economy will pivot quickly and rebound sharply once economic quarantines are lifted.

Those could prove to be too optimistic.

“There’s still uncertainty surrounding the reopening of the economy,” said Julian Emanuel, chief equity and derivatives strategist at BTIG. “Come fall, are we going to be back on airplanes? Are we going to go out and eat?”

LEGAL NOTICE

Aero Dynamic Investments Ltd. Company No. 1894850 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1) (b) of the BVI Business Companies Act, 2004 that Aero Dynamic Investments Ltd. is in voluntary liquidation.

The voluntary liquidation commenced on 14th April, 2020 and Leonie Brogle of Mühlemattstrasse 56, 5001 Aarau, Switzerland has been appointed as the Sole Liquidator.

Dated this 17th day of April, 2020 Sgd. Leonie Brogle Voluntary Liquidator

THE TRIBUNE

Tuesday, April 21, 2020, PAGE 7

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