07082022 BUSINESS

business@tribunemedia.net

FRIDAY, JULY 8, 2022

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‘Appetite for more’: Deals for $150m in capital eyed

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

• Investment bank ‘working on’ three more issues • Believes all will reach market by 2022 year-end • RF chief asserts BISXlisted stocks rebounding

A Bahamas-based investment banker has revealed three further capital raisings, each worth between $20m$50m, are set to launch this year while asserting: “There’s definitely appetite for more transactions.”

Michael Anderson, RF Bank & Trust’s president, told Tribune Business in a recent interview that Cable Bahamas’ successful preference share refinancing showed there was pent-up demand for new offerings with public company share prices starting to rebound from COVID-19’s devastation.

The BISX-listed communications provider raised an extra $50m, in addition to convincing investors holding its Series 5 and Series 9 preference shares to rollover $161.7m of their existing $169m outlay, which he said showed “strong support from

the Bahamian capital markets for new offerings”.

“This is the first offering since the cruise port got done [in 2020],” Mr Anderson told this newspaper. “I think there’s been a buildup of Bahamian dollars in the market in anticipation of new investments, which for the last couple of years have been delayed for one reason or another. There’s anticipation of new deals coming to market, and a fair amount of money looking for investment

opportunities, and this was the first one to be done.

“There was a high level of interest, and the fact Cable got $50m in addition to the rollover is indicative of strong support in the Bahamian capital markets for new offerings. We see it as a good sign for other issues to come to market. There’s a high level of liquidity and we expect to see more investments come to market over the course of the next six months to a year, and believe the market will receive them well.

A CABINET minister yesterday urged Bahamian businesses and consumers to “not get fixated” on World Trade Organisation (WTO) membership for fear it will “hijack” and “derail” efforts to develop a broader National Trade Policy.

Michael Halkitis, minister of economic affairs, told the first public consultation on the policy that efforts to reposition the Bahamian economy through trade encompass a much wider agenda than the long-standing issue of whether this nation will finally complete the accession process to become a full WTO member.

The Bahamas’ stop-start effort to accomplish this now

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

MICHAEL ANDERSON “There’s definitely appetite for more transactions. We’re working on two or three other offerings that could take place this year. There’s at least three other transactions that we think could come to market this year and be anywhere between $20m and $50m. All of them are credible issuers.

We used to raise $10m and think that was large, and it’s amazing to think over the last

SEE PAGE B7

MICHAEL HALKITIS

‘Dire straits’: NIB in $70m payout deficit

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE National Insurance Board’s (NIB) confirmation yesterday that benefit payouts exceeded contribution income by $70m for 2021 shows The Bahamas has “clearly run out of time” to address its woes without inflicting pain.

Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business that the social security system’s affirmation that “more is going out than is coming in” - a state of affairs that has now existed for six years proves it is “in dire straits”

MATT AUBRY with respect to long-term solvency.

He spoke out after NIB, in responding to social media allegations about property investments, said in a statement: “NIB further advises that while the

SEE PAGE B4

External shocks cause for a ‘special situation’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas is “in a special situation” due to its high vulnerability to natural disasters and economic shocks, a trade specialist said yesterday, with imported goods ten times’ higher than exports.

Dr Dirk Bienen, an international consultant who played a key role in crafting the first-ever National Trade Policy, asserted: “There’s a high degree of vulnerability in The Bahamas to natural disasters and external economic shocks, which is quite a special

situation for a country to have this vulnerability to major shocks which happen not too infrequently.”

This weakness, he added, is exacerbated by The Bahamas’ high dependency on tourism and imported goods, together with its narrow economic base and lack of export diversification. Crawfish, polystyrene beads (Polymers International), organic compounds and sea salts account for 90 percent of the country’s total goods exports.

Total goods exports made in The Bahamas “stagnated” even prior to the pandemic, Dr Bienen

SEE PAGE B8

• Asks where funds coming from as none in Budget

• Adds that it will be ‘backstop’ for most vulnerable

spans more than two decades, having begun in 2021, but he voiced concern that the often emotional and knee-jerk reaction to the prospect of joining the world’s rules-based trading watchdog - with businesses and workers fearing they will be overwhelmed by foreign competition - could threaten to overshadow and disrupt efforts

SEE PAGE B5

Pintard warns BPL fuel subsidy plan ‘not lawful’ • Sears: Gov’t will ‘pay what not covered by hedge’

Don’t let WTO ‘hijack’ National Trade Policy

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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THE Opposition’s leader last night said it would be illegal for the Government to directly subsidise Bahamas Power & Light’s (BPL) fuel costs after a Cabinet minister reiterated this is the only way to prevent higher MICHAEL PINTARD electricity costs.

Michael Pintard told Tribune Business the Free National Movement (FNM) supports “any lawful remedy” to ease what he described as “a potential albatross around the necks of Bahamians”, but voiced doubts over whether the method openly being considered by the Davis administration would comply.

He spoke out after Alfred Sears, minister of works and utilities, effectively told the weekly media briefing by the Prime Minister’s Office that BPL would have no choice but to pass on increased fuel costs to its customers via higher electricity bills unless the Government (Bahamian taxpayer) intervened to partially underwrite this expense.

Asked whether the Government will intervene to stop BPL’s fuel charge, which typically accounts for 50-60 percent of customer bills, from increasing, Mr Sears replied: “With respect to BPL, BPL cannot absorb increases.

So there are only two options.

“One is to pass it on to the consumer or for the government to provide a subvention to pay, and the Prime Minister has made it very clear that the Government is committed to providing a measure of safeguard for the consumer given the fact that, in many homes,

SEE PAGE B4

PAGE 2, Friday, July 8, 2022

THE TRIBUNE

SEBAS MAKES FREEPORT E-COMMERCE EXPANSION SEBAS Bastian’s e-commerce marketplace has expanded to Grand Bahama with yesterday’s official unveiling of its Regent Centre hub and associated delivery pick-up locations.

Aeropost Bahamas, in a statement, said that besides the main office on West Explorer’s Way it has also established two Clickbox smart parcel locker pick-up locations where clients can

receive their online purchases. These are located at Island Luck on East Sunrise Highway and the Stop n’ Shop in the Britannia Town Plaza on Polaris Drive.

Aeropost was acquired last year by Click Partners, LP, a company co-founded

by Mr Bastian, principal of the Island Luck web shop chain. Click Partners also owns Clickbox, the smart parcel lockers that support

the Aeropost business, which already has a presence in 38 countries spread across Central America, Latin America and the Caribbean.

Gershan Major, the Bahamas Aeropost operations and ClickBox in-country general manager and chief executive, said: “We are excited to extend the joy of our seamless shopping made simple on Aeropost, combined with the convenience

of our Clickbox smart locker pick-up locations, to Freeport, Grand Bahama, fully staffed by Grand Bahamians.”

The company said it is also rolling-out a secure online shopping site featuring items such as big screen smart TVs; Apple computers and smart phones; kitchen appliances; audio gadgets; cosmetics; home decor; apparel; children’s toys; and electronics.

It is also implementing enhanced order tracking; a more extensive range of products; the ability for consumers to create and share a wish-list; product searching by brands; and Amazon link shopping. All these features will go live in both Grand Bahama and New Providence this month.

“Putting Aeropost’s cross-border logistics and e-commerce capabilities

Israelis see potential to slash Bahamas’ $1bn food imports ISRAELI consultants have asserted that The Bahamas has significant potential to boost food security, and slash its $1bn import bill, following a recent week-long visit to this nation.

Officials from Volcani International Partnerships (VIP) visited The Bahamas from June 11-17, meeting with farmers and other agriculture stakeholders in New Providence, Abaco, Eleuthera and Grand Bahama.

“I think we were very encouraged and impressed with the farmers that we met. I think there were two things that really stuck out for us. The first was their desire and eagerness to learn, both by self-education and taking advantage of all kinds of online opportunities. And I think the second element is actually the ingenuity, entrepreneurial spirit and the local capacity for innovation,” said Volcani’s executive director, Danielle Abraham.

“I think our experts learned a lot from local knowledge, and we were very impressed by how the local

farmers faced challenges and, because of the lack of resources, they actually created their own innovations.

I do believe because of that we were impressed by the farmers, and we can match Israeli expertise. I think together we can make some great advances forward for food security.”

Volcani’s scientific head, Dr Tomas Zvi Ron, said he admired the fortitude of Bahamian farmers.

He added: “It was very inspiring to meet on the ground.

Agriculture is certainly not going to replace tourism. But we see great potential for the agriculture sector here.

“We see opportunities for individual farmers. I think the building of the cultivation centre along with a very long extension service can eventually give economic benefits to the sector. It will also provide opportunities to young professionals who would be attracted to agriculture.”

Volcani’s representatives provided recommendations on how The Bahamas can increase crop yields. Sheenan Harpaz, a

specialist aquaculture professor, said there is potential for The Bahamas to enter fish farming.

“I think there is a great advantage in The Bahamas to put together an interactive programme to use the water reservoirs that can be utilised for growing fish. At the same time, those reservoirs will be available for irrigating crops, especially during the dry seasons. By doing so, you utilise the waste products of the fish and they are actually fertilizers for the other agricultural crops,” he said.

“Another thing we can do is to make use of natural resources. Instead of importing food for the fish in The Bahamas, what you can do is get the black soldier fly utilising organic waste matter – that is different organic leftovers from plants, restaurants or even slaughter houses.

“These flies grow on organic matter and they can then be fed to both fish and poultry, so by doing so we are actually closing a circular economy, utilising waste and making it into marketable

VOLCANI International Partnerships (VIP) specialists, along with Ministry of Agriculture, Marine Resources and Family Island Affairs officials, visited farms and other locations in New Providence, Grand Bahama, Abaco and Eleuthera. products for fish to grow and for people to grow.”

Volcani’s horticulture specialist, Uri Adler, said irrigation should be improved so farmers can achieve a greater crop yield.

“One of the main aspects is to improve irrigation to be able to supply the crops during dry season, especially pineapple, because pineapple is a crop that needs a lot of water,” he added.

“If we supply it enough during the dry season, you will get more during the wet season. Fertilizers are expensive but using different waste

and American compost can be a good solution – using also poultry manure, and there are many other good manures that can help us to get good fertilizers.”

Yoram Zvieli, a pest management adviser, said: “We can try to economise our expenses by suggesting that the farmer works to get cheaper fertilizers or compare two kinds of pesticides.

We are always looking to do the better way and sometimes it means making a compromise.

“We are just making a decision on how long something needs to grow. It is

together with Click’s marketplace technology and smart-locker network creates a comprehensive solution that will transform the market,” Mr Bastian said previously.

Aeropost Bahamas has more than 20 hub store and Clickbox smart parcel locker pick-up locations in Grand Bahama and New Providence, including Esso gas stations. the same discussion from The Bahamas to Israel. We have to see what our limiting factors are and what is our relative advantage. If we can produce pineapples and our neighbours cannot, we can look to see how we can improve our marketing to increase our income.”

Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, said Volcani’s expertise will be considered when developing the Government’s proposed Cultivation Centres, which are intended as hubs for agricultural production.

“As we consider to foster growth in the agricultural sector and exploring options, there must be a fact-driven process that is in line with the goal of the Ministry and to ensure there are deliverables,” he said. “That is why I was excited for Volcani International Partnerships to travel to The Bahamas to assess and provide expertise that assisted Israel in their fight against food insecurity.

“It is important that they analyse and process to form initial ideas, incorporating our vision for The Cultivation Centres. This should have a direct focus on enabling agribusiness into the overall approach of a successful sector.”

REALTOR’S VACANT LOT FOCUS AMID INVENTORY SHORTAGE EXUMA’S real estate market is suffering from inventory shortages and increased prices due to the post-COVID surge in real estate demand, a local realtor says.

“There is a shortage of inventory,” confirmed Andre Bowe, one of several Family Islandbased agents with Island Living Real Estate. “I don’t see where that will change any time soon, as expats and Bahamians are looking, but very few people are of the mind to sell.”

These challenges, he added, have forced

realtors to place greater focus on vacant lot sales and persuading clients to do likewise. “Now we are trying to shift to selling vacant land and hoping prospective purchasers are willing to build,” Mr Bowe said. “This, in turn, will be a help to the island economy and provide jobs in construction and related services. For realtors it will, after five to ten years, hopefully add the needed inventory.”

With increased demand driving up prices, the Island Living agent said: “I know of a pandemic purchase

in a sought-after location being resold for double the original purchase price,” he said. “So, yes, demand has driven the price point on Exuma real estate.”

Mr Bowe said the uptick in demand has been equally driven by foreigners and Bahamians alike. “I have had a surprising number of calls out of the blue from Bahamians looking for property, but most were modest lot inquires,” he said.

“Like most Family Islands, beach and waterfront properties are at a premium price point,

and ultimately are sold in the expat market, unlike the commercial property market, where Bahamians have made some premium property purchases.”

Attributing the increased interest in Family Island real estate to pent-up demand fuelled by the COVID-19 pandemic, Mr Bowe added: “During most of the early pandemic, when travel came back into play, real estate on the island vanished. Everything for sale was sold. Realtors were all showing and reshowing the few same pieces. So the worldwide lockdown and

our comparative low infection rate was a motivating boon possibly.”

Though interest in mainland Exuma has “cooled” slightly since COVID’s early days, Mr Bowe said he expects the market will continue to thrive with planned projects - either on the drawing board or undergoing permitting - set to drive further exposure and demand. “Simply put, the more people to put toes in the water will trickle down eventually to the real estate market,” he added.

ANDRE Bowe is pictured at Island Living Real Estate’s offices in a restored historic building on East Bay Street, Nassau.

THE TRIBUNE

Friday, July 8, 2022, PAGE 3

JITNEYS: GOV’T RELIEF LATE SO WE WANT FARE HIKES

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net JITNEY drivers yesterday slammed the Government’s proposed “relief package” for high gas prices as late, adding they would instead prefer adult fares be increased to $2 as the industry is “getting beat bad”.

Jobeth Coleby-Davis, minister for housing and transport, told yesterday’s media briefing at the Prime Minister’s Office that the Government will have its assistance for jitney drivers ready by month’s end although no details were provided. And a fare increase has yet to be approved by Cabinet.

“We were discussing that for some time, (and) for a few months now, and because the task in that is to really have a balance in that approach - because we know generally the area of society that depends on the public bus transportation - and so where we are now is that Cabinet has agreed for a relief package to be presented by the Ministry of Finance,” Mrs ColebyDavis said.

“And so, I have just sent the last few documents that were requested from the financial secretary and the Minister of Finance. They are reviewing and then they should be presenting me with the relief package which we could begin to provide now to get us through this period, and we will consider discussions

related to the increase in fares [later].”

Harrison Moxey, the United Public Transportation Company’s (UPTC) president, told Tribune Business that the relief package was late as they had been pressing for it eight months ago. He added that jitney drivers are now seeking a 60 percent increase in adult fares, which will drive these from the present $1.25 to $2, and thus enable them to mitigate the impact from high gas prices.

“The fare increase gives longevity and that’s preferable, but I am sure that we will welcome anything that would better our situation in the interim. But we still would like to know where are we with the fare increase,” Mr Moxey said. “We’ve had enough

talk and I’m getting a lot of backlash from the membership. We are very irate about the situation because it is not predicated on gasoline prices alone.

We’ve been struggling from COVID-19; from 2019 up until now.”

“We are right here suffering. We are getting beat bad and we don’t know what the future holds or what direction they’re really going in. We’re prepared to take a stand because everybody feels like we’re being overlooked.” Fares for children and senior citizens will remain the same.

The United Public Transportation Company held talks with the Government two months ago but “they never made an offer to say we are for the relief package or against it because we don’t know what it is. They

are putting this together and I don’t know if they fully understand what needs to be done and what would actually be a respectable offer of relief,” Mr Moxey queried.

He added that the jitney industry is on the “verge of collapse” because of today’s higher fuel prices which have worsened the impact from COVID-19 and related restrictions, which saw bus passenger capacities slashed to 50 percent. The sector has not enjoyed a fare increase for more than 15 years, when Hubert Ingraham was in office.

“I sat at the table with former prime minister Hubert Ingraham and we were trying to raise fares to $2 from then, but he gave us 25 cents and now we’re not hearing anything. Fuel

Global treaty provides Leased taxi plates end will carbon credit catalyst be ‘process’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Bahamas Taxi Cab Union’s (BTCU) president yesterday acknowledged it will be a “process” to convert leased plates into a situation where the drivers involved become owner-entrepreneurs.

Wesley Ferguson told Tribune Business he is unaware how many drivers are still leasing their taxi plates.

He added that efforts by the Ministry of Housing and Transport to eradicate this practice will progress as more drivers become aware they can own these plates as opposed to leasing them.

“This is a process. It’s a programme that is going through. Not everybody is going to be entitled to a plate because they have to meet certain requirements,” Mr Ferguson said.

“For example, if you were leasing a plate and you are now leasing a plate from your car, that will qualify you to get a plate. There are still some people that are driving for somebody and they are not entitled to get a plate.”

Jobeth Coleby-Davis, minister for housing and transport, told yesterday’s Office of the Prime Minister media briefing: “We had a number of consultations and meetings with the taxi union executives and the livery union, just to get an idea of the

industry, how it’s functioning, what are some of the present issues and how we could provide some necessary solutions.

Upon taking office, she said she was greeted by a “number of taxi drivers” asking that the moratorium on plates be lifted for drivers who were still leasing.

Mrs Coleby-Davis’ predecessor, Renward Wells, lifted the 20 year-plus moratorium in December 2019 under the Minnis administration.

The Ministry of Housing and Transport yesterday set up a Road Traffic Department “substation” at Loyola Hall to handle the number of plate-leasing drivers who want to own their franchise. Mrs Coleby-Davis said: “I asked Cabinet to approve the removing of the moratorium and the issuance of some 300 plates to a large list that I met from Road Traffic Department applicants, and also some names that we had received from the taxi union president and the livery union president.”

More than 100 taxi drivers were waiting 15 years to own their own plate, along with 200 younger drivers who also wanted their own plate, Mr Ferguson told this newspaper previously. In March, some 100 taxi drivers were issued plates with another 500 still waiting to receive theirs.

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Bahamas is seeking to exploit a global treaty that calls for countries to “voluntarily co-operate” on slashing their greenhouse gas emissions through its Climate Change and Carbon Markets Initiatives (CCCMI) Bill.

Charles Hamilton, climate change advisor in the Prime Minister’s Office, told a Town Hall meeting on Wednesday night that Article 6.8 of the Paris Agreement - drafted at the 2015 United Nations Climate Change Conference - provides the catalyst for The Bahamas to develop its own carbon credits and facilitate their trading.

Explaining the intent behind Article 6.8, he said: “There is no quid-proquo. There is no trading of

money to get carbon credits, but they know that the time is limited, and so whatever mechanisms that can be done to ensure that finances or opportunities are traded in for countries to be able to reduce and adapt to climate change has to be done.”

While the rules surrounding Article 6 of the Paris Agreement “need to be fully fleshed out” in terms of how they operate, it consists of nine paragraphs providing principles for how countries can “pursue voluntary co-operation” to reach their climate targets.

Article 6.8 recognises non-market approaches to promoting climate change mitigation and adaptation. It introduces co-operation through finance, technology transfer and capacity building, where no trading of emission reductions is involved.

Mr Hamilton added: “Countries like The

Bahamas need to ensure that we have reporting in place for Article 6 and UN carbon credit trading needs to be in place. We already have that through some capacity building initiatives that are being done incountry. Parties also need to be able to report or provide a national inventory report or greenhouse gas inventory report. Our country is also doing that.”

The Bahamas also has to periodically update its National Climate Action Plans (NDC) in addition to ensuring that a legislative framework is established so there “are mechanisms in place for authorising the use of a carbon credit, and that there are arrangements

prices over the summer go up and it’s going to get even higher,” Mr Moxey said.

“The financial assistance we were soliciting from the Government, we wanted that in the hard times during the COVID-19, and by now we should have received the increase when we would have already exhausted what that was supposed to be. But that never came, and now you’re going into where the increase was supposed to be for the summer to give us what we requested almost seven or eight months ago.”

“When is the increase going to happen? If we get the increase we don’t have to put pressure on the Government because if it isn’t going to be $2 then tell us what you’re going to give us?” in place for tracking a carbon credit”.

“We’re looking at building a registry to be able to house the information and ensure that there’s proper accounting for the carbon credits, and ensuring that our greenhouse gas inventory is improving with every single cycle to ensure that we’re not messing around with numbers,” Mr Hamilton said. “So, additionally, we have to ensure that whatever we do with our carbon credits, our implementation of our national action plans or NDCs has to happen.”

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PAGE 4, Friday, July 8, 2022

THE TRIBUNE

Pintard warns BPL fuel subsidy plan ‘not lawful’ FROM PAGE B1 people’s lives have been disrupted by employment, through death and illness as a result of the pandemic.

We still have a lot of climate refugees in our country, people who were displaced

by Hurricane Dorian......

“So, we are in a very challenging time in the Commonwealth of The Bahamas and we have to be sensitive that so many of our compatriots are hurting and challenged and trying to get their bearings.”

However, multiple sources have argued that the Government is barred from directly subsidising BPL’s fuel costs by the Bahamas Electricity Corporation (Amendment) Regulations 2020, which were gazzetted on June 26 that year to facilitate

the hedging strategy implemented by the former Minnis administration.

They pointed out that the first two clauses in ‘Part B: Fuel Adjustment Charge’ stipulate that this “shall be the total cost of fuel required to produce and deliver each kilowatt hour of electricity to consumers.” The use of the word “shall”, they argue, means that the full cost must be passed to business and residential consumers and not subsidised in part by the Government.

Thus the Davis administration will likely have to amend these regulations to facilitate its subsidy plan, which is hardly an insurmountable obstacle.

But, in his response to Mr Sears, Mr Pintard said: “We want any remedy that is lawful that can assist in

lessening the burden that the Bahamian consumer would experience as it relates to any increase in the cost of electricity in The Bahamas.

“It is a drag on businesses, it is a potential albatross around the necks of Bahamians. To the extent we can find ways to lessen that burden, the FNM completely supports it. However, the minister has not been able to point to a lawful way that can be accomplished because to the best of our knowledge the Government does not have a way to provide a subsidy in the traditional way being suggested by the minister. The additional cost must be passed on to the consumer.”

Mr Pintard also questioned where, if the Government does

ultimately end up subsidising BPL’s fuel costs, the multi-million dollar sum required will come from given that no funding source was provided in the just-passed 2022-2023 Budget.

“There is nothing in this year’s Budget to show provisions have been made,” the Opposition’s leader added, pointing out that global oil price trends were well-known for months before the Budget was passed. The Public Financial Management Act’s implementation now makes it much harder for the Government to simply shift funds around without returning to Parliament to seek approval for a revised Budget.

Mr Sears, though, sought to blame Russia’s invasion of Ukraine - which added

to already-rising global oil prices - for the impending hike in BPL’s fuel charge.

However, well-placed sources yesterday revealed that the present $102-$104 per barrel of oil prices had been predicted by the global futures markets from as far back as fall 2021 when the Davis administration took office. And that was before the Ukraine war broke out.

Mr Sears yesterday said the four BPL oil price hedging contracts initiated

by BPL in 2020 “do not cover the full scope of the increase that would have occurred” subsequently in global oil prices, even though the last one is set to expire in 2024. This newspaper understands that, under the former administration, BPL had hedged all its fuel

needs for 2022, half for 2023 and a quarter for 2024.

The state-owned energy monopoly did not hedge all its fuel needs for 2023 and 2024 because it needed to see which direction global oil prices took, and several sources suggested the Davis administration failed to respond to rising prices by executing the strike options left in place by its predecessor that could have secured lower-cost supplies late last year.

“What the hedge does not cover the Government will have to pay,” the minister added. “In fact, the Government is the back stop.” With the Prime Minister having committed to protecting the most vulnerable segments in Bahamian society from surging fuel prices, Mr Sears said: “The Government really has to provide the backstop.”

‘Dire straits’: NIB in $70m payout deficit

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NAITONAL INSURANCE BOARD (NIB) HEADQUARTERS FROM PAGE B1 reserves of the NIB have grown over the life of the Fund and now stand at $1.5bn, the reserves are currently in a state of decline principally because the amount of benefits paid annually have exceeded the amount of annual contribution income received from 2016.

“Given the current structure of the social security programme, the contribution rate and the number of pensioners receiving benefits, this trend will continue, and the differential between benefits and contributions will increase.

For the fiscal year ended December 2021, the benefits payments to the public exceeded the contribution income by $70m.”

Mr Aubry said this merely reinforced the need to secure NIB’s long-term viability and sustainability given the thousands of pension beneficiaries, unemployed, sick and invalids that rely on its

payments. “It’s in dire straits, and we’re talking 2028 in the short-term and 2030 in the long-term,” he added of the dates for when the $1.5bn reserve fund is projected to be exhausted.

“I don’t think there’s a magical solution. I don’t think there’s a lazy solution. I don’t think there’s anything that we’re going to come up with magically that will take the burden off, but we’ve clearly run out of time to deal with this in a way that doesn’t put people in a state of crisis projection. I think it says it very clearly that there’s a problem, more is going out than is coming in, and that has been going on since 2016.”

The ORG chief said it was vital that the Government get private sector and public buy-in for reforms to rescue NIB as this would make any fall-out easier to accept, whether it involves increasing the retirement age from the present 65 years-old; raising contribution rates; higher hikes in the insurable wage ceiling; increasing the number of contributions before benefits can be accessed - or a combination of all these solutions.

Consulting the public, and developing a plan with their input, would ensure that “when pain points happen they are not seen as put upon”. NIB’s statement comes as the 11th actuarial report on its financial soundness called for a two

percentage point increase in contribution rates to be implemented by July 1, with subsequent further hikes enacted every two years until 2036 to secure the social security system’s long-term sustainability.

That July 1 date has come and gone with no rate increase. The Prime Minister, speaking on his return from the Commonwealth Heads of Government summit in Rwanda last week, affirmed his previous stance that the Government will not implement the NIB contribution increase - which would take the overall rate from 9.8 percent to 11.8 percent, split between employer and employee - while his administration explores ways to ease the financial burden this will impose.

Larry Gibson, chief operating officer of CG Atlantic Pensions, and who has long advocated for comprehensive pension and social security reform in The Bahamas, told Tribune Business there are a combination of policy changes that can make saving NIB “less painful” than solely increasing contribution rates for both businesses and workers.

These reform options include raising the “official” retirement age to 67, increasing the contributions required to become eligible for benefits, and further insurable wage ceiling increases. NIB’s present

reality was predicted more than two decades by its seventh actuarial review, completed in 2001, which forecast that “reserves are projected to become exhausted” by 2029 if comprehensive reforms are not implemented to stop benefit payouts exceeding contribution income.

“It’s not like the sky is falling in,” Mr Gibson told Tribune Business, despite actuarial projections that NIB’s $1.5bn reserve fund will be totally depleted in just six years’ time by 2028. “There are definite policy prescriptions. We really need to set up for the long-term. What we need is some commitment to work towards them and address it.

“My message is that there are policy prescriptions and it’s going to be a combination of those factors.

We need to find a way to somehow decouple these decisions with regard to long-term funding of NIB from the short-day political nuances. It shouldn’t be the prime or only vehicle to fund government projects.

“It’s a strategic investment pool to support NIB’s really core objectives.

That’s the social element.

It shouldn’t be operating as a Ministry of Social Services or Housing. We need to look at a genuine longterm strategy that is not attached to a government department.”

THE TRIBUNE

Friday, July 8, 2022, PAGE 5

Don’t let WTO ‘hijack’ National Trade Policy FROM PAGE B1 to reinvigorate this nation’s economy by expanding its trade capabilities.

Asked by Edison Sumner, the former Bahamas Chamber of Commerce and Employers Confederation (BCCEC) chief executive, whether full WTO membership remains on the Government’s “to do” list, Mr Halkitis said its approach will be guided by what the private sector and public believe to be in their best interests.

“Our objective is to have the best possible outcome for The Bahamas, its economy and its people,” the minister said of the National Trade Policy’s development.

“What we do in terms of membership in any organisation will be based on what the stakeholders, primarily the business community and consumers, bring to us. They identify opportunities where they can take advantage.”

Pointing out that “there are many steps that have to be taken” to reform The Bahamas’ present trading regime, and make it internationally competitive, regardless of whether full WTO membership is being sought, Mr Halkitis added: “I don’t want in this conversation, and let me be very frank, and I’ve said this privately and publicly....

“When you’re talking about trade there’s a very real risk the conversation will be hijacked, and goes off the rails, and 20 years later you are no further ahead in improving your performance locally, standards and protection for your people.”

Asserting that the current National Trade Policy consultation is “a beginning”, Mr Halkitis said its outcome will help “decide what provides the best results for the Bahamian people”.

“I’ve said before that the WTO accession is not the only outcome of this sort of trade discussion,” he added, asserting that the real focus is to increase goods and services exports via existing trade agreements such as those that exist with the US (Caribbean Basin Initiative), CaribCan (Canada),

and the Economic Partnership Agreements (EPA) separately with the UK and European Union.

“The WTO, I don’t want to go away with the feeling this is a WTO discussion,” Mr Halkitis said. “This is a trade discussion. WTO is one aspect out there. At the end of the day, if stakeholders believe this is an opportunity out there, this is something we will pursue.

It’s not our view to impose or drive a particular agenda.

This is about identifying how the Bahamian public will benefit.”

The prospect of full WTO membership has often been viewed negatively by many in the private sector, who perceive that the accession terms will force The Bahamas to open up multiple industries to foreign competitors with superior economies of scale and access to capital, thus putting local companies out of business. There is no guarantee that this would be the outcome, though, and trade advocates say that such fears are massively overblown.

However, WTO did not go away at yesterday’s consultation. Mr Halkitis, replying after the accession issue was raised for a second time, said: “There are many opportunities other than WTO to increase our exports of goods.” He reiterated his position that the National Trade Policy should not be overshadowed by the issue, and “past discussions of negativity and all we’re talking about is the WTO”.

“This is much more than that,” Mr Halkitis said. “An excellent outcome would be training for our people, increased access to trade opportunities, upgraded intellectual property rights protection, which is very important to creatives, and improvements in standards. I don’t want people to get fixated on the WTO or that this is a way to accede to the WTO. It’s a big world out there......... This is not a WTO trade-specific policy.”

The minister said the Government was hoping to receive feedback on its draft National Trade Policy

by July’s end or “as close to that as possible”, indicating that he and the administration are seeking to rapidly advance the effort.

Philip Galanis, chair of the newly-reformed Bahamas Trade Commission, which relaunched on Wednesday, said the target was to submit the finished policy document

to the Davis Cabinet for its deliberation and approval by the 2022 third or fourth quarter.

“We’re not just going to talk the talk. We’re going to

walk the walk,” he added, promising that the Bahamian private sector will drive trade policy rather than the Government.

MARKET REPORT www.bisxbahamas.com

THURSDAY, 07 JULY 2022

BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 53.00 2.47 2.61 2.60 6.10 10.05 4.15 9.90 3.65 8.25 17.50 2.65 10.75 11.25 10.85 17.40 4.00 11.00 16.50

52WK LOW 5.30 33.80 1.60 2.20 1.30 5.75 6.96 2.82 5.00 2.27 5.95 9.80 1.99 7.75 10.02 10.00 13.10 3.50 8.20 15.50

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

PREFERENCE SHARES

NOTICE

NOTICE is hereby given that PAULETTE FRANCOIS of Peel View off Bellot Road, 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 1st day of July, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that NAOMI JEUDI of Blue Hill Road, 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 1st day of July, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

1.00

1.00

1000.00 1000.00

1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 1.00

Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 9 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

CLOSE

CHANGE

%CHANGE

YTD

YTD%

2592.71

8.29

0.32

364.47

16.36

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB9 CHLA FBBA FCLB SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.33 100.00 100.67 100.43 100.34 100.23 100.00 100.00 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 96.71 94.12 100.67 100.43 100.04 100.00 89.62 89.00 90.24 90.73

MUTUAL FUNDS 52WK HI 2.52 4.69 2.22 207.86 212.41 1.74 1.84 1.83 1.03 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.69 1.75 1.76 0.97 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR109036 BGRS FX BGR118037 BGRS FL BGRS71024 BGRS FL BGRS75022 BGRS FL BGRS81037 BGRS FL BGRS88028 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1090368 BSBGR1180375 BSBGRS710245 BSBGRS750225 BSBGRS810375 BSBGRS880287 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504

LAST CLOSE 6.48 39.95 2.44 2.35 2.51 6.10 9.75 3.95 9.33 3.55 8.00 16.00 2.82 10.26 11.31 10.85 17.26 3.98 10.10 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.15 100.00 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

CLOSE 6.48 39.95 2.44 2.35 2.51 6.10 9.75 3.95 9.33 3.64 8.00 16.00 2.84 10.26 11.34 10.85 17.26 3.90 10.10 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00

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

VOLUME

10,000

10,000

10,000

0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.15 100.00 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

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

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

MARKET TERMS

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.09 0.00 0.00 0.02 0.00 0.03 0.00 0.00 (0.08) 0.00 0.00

(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000

INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.40% 5.22% 4.56% 4.43% 4.87% 4.33% 5.55% 5.60% 5.65% 5.69%

NAV 2.52 4.69 2.21 197.44 202.39 1.74 1.84 1.83 0.97 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89

YTD% 12 MTH% 0.99% 4.22% 0.36% 5.78% 0.67% 2.74% -2.97% -2.35% -4.72% 6.04% 1.37% 3.03% 1.19% 5.23% 1.62% 4.13% -5.25% -6.07% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%

P/E 27.1 42.9 N/M 16.8 N/M N/M 26.4 -9.0 66.6 19.8 17.8 22.2 27.8 22.0 17.6 14.9 21.2 19.2 10.8 24.6 0.000 0.000 0.000 0.000 0.000 0.000

YIELD 2.62% 3.15% 0.82% 3.40% 0.00% 0.00% 2.67% 0.00% 0.00% 3.30% 2.75% 4.50% 15.28% 0.58% 2.89% 2.21% 3.13% 3.08% 1.98% 3.94% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 3-Oct-2036 13-Oct-2037 22-Oct-2024 7-Sep-2022 26-Jul-2037 26-Jul-2028 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050

NAV Date 31-Mar-2022 31-Mar-2022 25-Mar-2022 31-Mar-2022 31-Mar-2022 31-May-2022 31-May-2022 31-May-2022 31-May-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021

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 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

THE TRIBUNE

Friday, July 8, 2022, PAGE 7

‘APPETITE FOR MORE’: DEALS FOR $150M IN CAPITAL EYED FROM PAGE B1 20-odd years how things have changed.”

Mr Anderson declined to identify the three companies involved, but one is almost certainly Doctors Hospital. Dennis Deveaux, the latter’s chief financial officer, confirmed to Tribune Business last month that RF Bank & Trust has been hired to advise on a capital raise with details likely to be revealed to the market during the present 2022 third quarter.

The BISX-listed healthcare provider is thought to be considering raising equity capital, either via a rights issue to existing shareholders, making stock available to new investors or a combination of the two as it moves to execute on its expansion plans.

Another of the three referred to by Mr Anderson is understood to be the Grand Bahama Shipyard, which needs Bahamian dollar financing for site preparation work ahead of receiving its new dry docks.

The third entity is unknown.

The returns offered on equity and debt/preference share issues will likely remain attractive to Bahamian institutional and retail investors seeking greater reward because bank deposit rates continue to be minimal. Unlike in the US and other major developed markets, which are increasingly in inflation-fighting mode, the Central Bank of The Bahamas shows no signs at present of following their lead by raising interest rates.

Besides capital raising, Mr Anderson also predicted

that mergers and acquisitions activity will increase as businesses seek “to start up again now that COVID’s gone”. And he forecast that The Bahamas’ postpandemic rebound, driven largely by tourism’s recovery, has also generated an improvement in the share price of many BISX-listed companies.

“There’s been a recovery in stock prices over the last six months,” the RF Bank & Trust chief said. “Investors are coming back into the market to pick up stocks as they see results improving and dividends being paid.

There’s a recovery taking place at the company level and also investors wanting to participate.”

He added that the rebound was especially noticeable in the share prices of BISX-listed

The stock market rebound, he added, has not just been confined to banking stocks. Commonwealth Brewery, the Kalik maker, has seen its share price rise from a 52-week low of $5 to $9.33 at present, close to the heights it reached within the last year, while Cable Bahamas’ ordinary shares - which started the year at $3.13 are now at $3.95, a rise of 82 cents or 26 percent.

Despite fears that inflation, and the US policy response of raising interest rates, will depress the tourism economy amid growing talk of a recession in The Bahamas’ major source market, Mr Anderson said he felt The Bahamas’ recovery has sufficient momentum to shrug off any negative fall-out through the 2022 winter season.

Pointing out that the Bahamian economy tends to lag six to nine months behind events in the US,

commercial bank stocks, with the sector’s results having rapidly rebounded from peak COVID losses due to the economy’s reopening and borrowers being able to service their loans once again. As a result, commercial banks have been able to recover previously-booked loan loss provisions and return to profitability again.

Mr Anderson said Fidelity Bank (Bahamas) share price had jumped from $14.91 at the start of 2022 to its present $17.26, while CIBC FirstCaribbean’s stock has risen from $12 to $16 - an increase of onethird - over the same period.

RBC FINCO and Bank of The Bahamas have also seen, albeit more modest, share price appreciation over the same period.

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 94° F/34° C Low: 77° F/25° C

TAMPA

SATURDAY

SUNDAY

MONDAY

TUESDAY

Winds gradually subsiding

A thunderstorm in spots late

Partly sunny

Mostly sunny with a thunderstorm

Sunny to partly cloudy and nice

Rain and a t‑storm in the afternoon

High: 89°

Low: 79°

High: 88° Low: 78°

High: 87° Low: 79°

High: 89° Low: 78°

High: 90° Low: 80°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

99° F

86° F

99°-85° F

99°-87° F

101°-86° F

101°-88° F

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

N

almanac

E

W

ABACO

S

N

High: 89° F/32° C Low: 79° F/26° C

8‑16 knots

S

High: 91° F/33° C Low: 79° F/26° C

8‑16 knots

FT. LAUDERDALE

FREEPORT

High: 90° F/32° C Low: 82° F/28° C

E

W S

E

W

WEST PALM BEACH

N

| Go to AccuWeather.com

TONIGHT

High: 94° F/34° C Low: 81° F/27° C

High: 90° F/32° C Low: 79° F/26° C

MIAMI

High: 91° F/33° C Low: 80° F/27° C

6‑12 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 86° F/30° C Low .................................................... 79° F/26° C Normal high ....................................... 88° F/31° C Normal low ........................................ 75° F/24° C Last year’s high ................................. 91° F/33° C Last year’s low ................................... 74° F/24° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ............................................... 30.48” Normal year to date ................................... 15.08”

ELEUTHERA

NASSAU

High: 89° F/32° C Low: 79° F/26° C

Forecasts and graphics provided by AccuWeather, Inc. ©2022

High: 89° F/32° C Low: 78° F/26° C

N

KEY WEST

High: 88° F/31° C Low: 82° F/28° C

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

tiDes For nassau High

E

W

8‑16 knots

S

8‑16 knots

Low

Ht.(ft.)

2:54 a.m.

3:43 p.m.

2.5 2.9

9:15 a.m. 0.2 10:07 p.m. 0.6

Saturday

3:54 a.m.

4:42 p.m.

2.4 3.1

10:10 a.m. 0.0 11:10 p.m. 0.4

Sunday

4:54 a.m.

5:40 p.m.

2.5 3.3

11:06 a.m. ‑0.1 ‑‑‑‑‑ ‑‑‑‑‑

Monday

5:55 a.m.

6:37 p.m.

2.5 3.5

12:11 a.m. 0.2 12:04 p.m. ‑0.3

Tuesday

6:54 a.m.

7:33 p.m.

2.6 3.7

1:09 a.m. 0.0 1:02 p.m. ‑0.5

Wednesday 7:51 a.m.

8:27 p.m.

2.7 3.8

2:05 a.m. ‑0.1 1:58 p.m. ‑0.5

Thursday

2.8 3.8

2:58 a.m. ‑0.2 2:55 p.m. ‑0.5

8:48 a.m.

9:21 p.m.

sun anD moon Sunrise Sunset

6:26 a.m.

8:04 p.m.

Moonrise Moonset

2:51 p.m.

1:41 a.m.

Full

Last

New

First

Jul. 13

Jul. 20

Jul. 28

Aug. 5

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 88° F/31° C Low: 78° F/26° C

High: 87° F/31° C Low: 80° F/27° C

N

High: 88° F/31° C Low: 78° F/26° C

E

W S

LONG ISLAND

tracking map H

Ht.(ft.)

Today

High: 88° F/31° C Low: 78° F/26° C

N

S

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

uV inDex toDay

CAT ISLAND

E

W

he added that any fall-out locally may be mitigated if the US gets on top of its inflation and price spike by early next year. He suggested that the problems were largely being caused by post-COVID supply chain bottlenecks and shortages, which were failing to match demand, rather than the latter being excessive.

“We may see that pickup in tourism not fall off that much and continue into next year,” Mr Anderson said, adding that this will ensure the industry’s momentum - and that of the Bahamian economy remains relatively robust through summer 2023. “My sense is that the drop-off will not be too significant.”

Oil prices, too, may ease if there is a resolution and peace agreement related to Russia’s invasion of Ukraine, which will help lower fuel costs in The Bahamas and rest of the world.

High: 87° F/31° C Low: 79° F/26° C

8‑16 knots

MAYAGUANA High: 89° F/32° C Low: 80° F/27° C

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

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 87° F/31° C Low: 79° F/26° C

High: 88° F/31° C Low: 80° F/27° C

GREAT INAGUA High: 88° F/31° C Low: 80° F/27° C

N E

W

N E

W

S

S

10‑20 knots

12‑25 knots

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

Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday: Today: Saturday:

WINDS SE at 8‑16 Knots SSE at 7‑14 Knots SE at 8‑16 Knots SE at 7‑14 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots ESE at 10‑20 Knots E at 8‑16 Knots ESE at 8‑16 Knots SE at 7‑14 Knots SE at 7‑14 Knots S at 7‑14 Knots SE at 8‑16 Knots ESE at 8‑16 Knots E at 12‑25 Knots E at 10‑20 Knots ESE at 10‑20 Knots ESE at 8‑16 Knots E at 10‑20 Knots ESE at 8‑16 Knots ESE at 10‑20 Knots SE at 7‑14 Knots SE at 10‑20 Knots E at 8‑16 Knots SE at 8‑16 Knots ESE at 7‑14 Knots

WAVES 2‑4 Feet 2‑4 Feet 1‑2 Feet 1‑2 Feet 3‑5 Feet 2‑4 Feet 3‑5 Feet 3‑5 Feet 3‑5 Feet 2‑4 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 2‑4 Feet 2‑4 Feet 4‑7 Feet 4‑7 Feet 1‑3 Feet 1‑2 Feet 3‑5 Feet 3‑5 Feet 1‑3 Feet 1‑2 Feet

VISIBILITY 9 Miles 10 Miles 7 Miles 7 Miles 9 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 8 Miles 8 Miles 7 Miles 7 Miles 9 Miles 9 Miles 7 Miles 10 Miles 10 Miles 6 Miles 7 Miles 10 Miles 9 Miles 10 Miles 6 Miles 6 Miles

WATER TEMPS. 83° F 83° F 85° F 84° F 83° F 83° F 83° F 83° F 83° F 83° F 84° F 84° F 84° F 84° F 83° F 83° F 83° F 83° F 83° F 83° F 84° F 84° F 84° F 84° F 83° F 83° F

PAGE 8, Friday, July 8, 2022

THE TRIBUNE

Wall Street rallies again, even as bond market signals worry

By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers Stocks on Wall Street rallied again Thursday, extending the market’s winning streak to a fourth day and placing the major indexes on pace for weekly gains.

The S&P 500 rose 1.5%.

It’s latest gain marks the longest winning streak for the benchmark index since March. The Dow Jones Industrial Average rose 1.1%, while the Nasdaq closed 2.3% higher.

Small-company stocks outpaced the broader market, a signal that some investors remain confident

of economic growth. The Russell 2000 rose 2.4%.

Most of the market climbed, and energy-producing companies led the way after oil prices recovered a chunk of their sharp losses from earlier in the week. The bond market is still showing signs of worry about a possible recession, though.

A report on Thursday showed more workers filed for unemployment benefits last week than expected. A report on Friday will show more broadly how the jobs market is doing.

“We still see a host of macro headwinds that suggest a cautious approach is appropriate here,” said Bill Merz, head of capital

markets research at U.S. Bank Wealth Management.

The S&P 500 rose 57.54 points to 3,902.62, as roughly three-fourths of the stocks in the index rose. The Dow rose 346.87 points to 31,384 and the Nasdaq rose 259.49 points to 11,621.35. The Russell 2000 gained 42.06 points to 1,769.60.

Companies that benefit the most from a healthy economy led the gains, with technology stocks doing much of the heavy lifting.

Apple rose 2.4%.

The energy sector also rose as U.S. crude oil prices climbed 4.3% after falling the last few days. Exxon Mobil rose 3.2%.

“Energy prices have been coming down on fears of a recession, along with a host of other industrial commodities,” said Quincy Krosby, chief equity strategist for LPL Financial. “Obviously, there’s still concern about the economy, there’s still concern about where we’re headed and whether the economic backdrop is going to weaken.”

The major indexes are on pace for weekly gains in what has been turbulent trading over the last several months. The volatility reflects growing worries among investors that the economy is slowing under the weight of surging inflation and sharply higher interest rates, pressures that

EXTERNAL SHOCKS CAUSE FOR A ‘SPECIAL SITUATION’ FROM PAGE B1 added, standing at $200m in 2016 and $203m in 2019.

They fell-off further to $160m in 2020 at the height of the COVID-19 pandemic. And imports were so high, due to this nation’s propensity to bring in everything it consumes, that they are equivalent to ten times’ this country’s goods exports.

Michael Halkitis, minister of economic affairs, yesterday said the Government’s objective with the National Trade Policy is “to balance the trade deficit” likely meaning that it wants to lower imports such that they are more comfortably covered by the services surplus generated by tourism earnings.

In so doing, he added that the Government is seeking to reduce the country’s vulnerability to external

economic shocks. A study has also been completed detailing potential opportunities in the European Union (EU) for Bahamian professional services providers.

The National Trade Policy concedes that The Bahamas faces multiple structural weaknesses due to its reliance on imports, as well as an “extremely limited” capacity to export physical goods that are actually made in The Bahamas. “Overall exports of The Bahamas performed well until the outbreak of the COVID-19 pandemic,” the report said.

“They increased steadily from about $400m in 2016 to $537m in 2019, equivalent to an average annual increase of 10.1 percent, but then dropped by 37.7 percent in the COVID19 year of 2020 to $335m.

However, more than half of The Bahamas’ exports are re-exports of products that were previously imported.

“Also, the share of genuine ‘domestic exports’ - exports of goods produced in The Bahamas - decreased from 50 percent in 2016 to 38 percent in 2019. The recovery to 48 percent in 2020 is not necessarily an indication of increased competitiveness but, rather, of the issues faced by the logistics industry and tourism sector in the pandemic year.”

A further vulnerability was identified as The Bahamas’ reliance on a narrow range of goods exports, such as polystyrene beads (Polymers International) and fisheries, plus its dependence on just a few overseas markets - chiefly the US, followed by Canada

and the European Union (EU).

“The portfolio of goods and services exported by The Bahamas is not diversified. Among goods, in 2019, the top four export products (at tariff line level) accounted for 90 percent of total domestic exports: Spiny lobster tails ($72.6m; 35.8 percent), polystyrene ($67.9m; 33.5 percent), organic chemical compounds containing a pyrimidine ring ($32.3m; 15.9 percent), and sea salt ($10m; 4.9 percent),” the draft National Trade Policy said.

“Provisional data for 2020 indicates that the pandemic has led to an even stronger export concentration than before. In addition, one of the dominant exports, polystyrene beads, has shown a longterm decline in export value

could tip the economy into a recession.

Despite this week’s rally in the stock market, bond investors continue to signal anxiety over a potential recession. New data Thursday showed that the number of Americans applying for unemployment benefits topped the 230,000 mark for the fifth consecutive week. While claims remain low, last week was the highest level of claims in almost six months.

The yield on the 10-year Treasury rose to 3% from 2.91% late Wednesday. The yield on the two-year Treasury is above the 10-year yield, a relatively rare thing seen by some investors as an ominous sign.

The job market in the U.S. has been a key focus for investors this week as they look for any clues on how inflation is impacting the economy. On Wednesday, the U.S. government reported that employers advertised fewer jobs in May amid signs that the economy is weakening and there are already signs that retailers have pulled back on hiring.

A weakening of the broader job market, which has remained strong through the pandemic recovery, could signal that inflation is cooling off.

Investors will get a clearer picture on Friday when the more detailed June jobs report is released.

from a maximum of $182m in 2013 to $69m in 2019 and $55m in 2020 – in large part in response to increasing environmental concerns in many markets over the use of plastics packaging and corresponding bans.”

A similar narrow concentration also exists when it comes to The Bahamas’ overseas exports markets.

“The Bahamas’ goods trade is concentrated on very few partners,” the National Trade Policy report said.

“First and foremost, the US (88 percent of total exports, 74 percent of domestic exports), followed by the EU (6 percent/16 percent).

The UK, Canada and Caribbean countries play limited roles, and other countries insignificant ones.”

The National Trade Policy conceded that the “limited productive capacity” of many Bahamian industries was a key reason for the country’s restricted “trade competitiveness”.

The performance of manufacturing, and agriculture,

forestry, fishing and mining, was described as “weak” with their combined share of national economic output (GDP) falling from 5 percent in 2012 to less than 3 percent by 2020.

Suggesting that it will be impossible to reverse services’ economic dominance, with these activities accounting for 97 percent of GDP, the National Trade Policy nevertheless said the competitiveness of other industries can be improved by tackling the ease and cost of doing business, efficiencies and managerial capacity.

“The country has few natural resources, which are already being used for exportation, as the examples of aragonite, sea salt and sands show and, because of the small size and dispersion across numerous islands, economies of scale cannot be reaped and the potential for agriculture and industry is limited,” the National Trade Policy said.