07122019 BUSINESS

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FRIDAY, JULY 12, 2019

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‘Skeleton in closet’ fear over debt fall

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A GOVERNANCE reformer yesterday expressed fears that “a skeleton in the closet” could yet derail the government’s achievement of the first quarterly national debt reduction for years.

Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, while hailing the $30.1m fall during the first three months of 2019 as “a good sign” added that he would be “happier” if accrual-based accounting

• $30m national debt fall ‘good sign’ • But ‘happier’ if accrual accounting • Govt finances still ‘fairly opaque’

ROBERT MYERS

was in place across the government and public sector.

This accounting method would expose the government’s true financial position by capturing all future spending commitments, and Mr Myers expressed concern that in its absence not all public sector liabilities are reflected in the financials figures for the first quarter in the 2019 calendar year.

“It’s hard to say until we get to accrual-based accounting,” he told this newspaper. “We have no idea what the liabilities were, and whether they were all included. If they had accrual-based accounting I’d feel a lot better about it. Without accrual-based accounting its fairly opaque; it doesn’t reflect reality.

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DPM: Something must be done over pensions

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas’ retirement funding crisis must be given “focus”, the deputy prime minister agreed yesterday, given the ever-increasing drain it threatens to impose on the nation’s resources.

KP Turnquest, responding after the Central Bank’s latest private pension survey reaffirmed that almost three-quarters of Bahamian workers are not covered by any formal plan, said this finding coupled with the low national savings rate meant that government-led action was imperative.

With the National Insurance Board (NIB) becoming “more and more challenged”, he warned that future Bahamian

• Acknowledges ‘weight’ of retiree burden • But cautious on making pensions mandatory • And gives no timeline for taking action

retirees cannot rely on the state to maintain their living standards and incomes after leaving the workforce.

This means it will become increasingly important for all Bahamians to make

Domestic banks in 10% cost increase

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

DOMESTIC banks and trust companies endured a near-ten percent operating cost increase in 2018 amid continued expense and regulatory pressures on the wider financial services industry.

The Central Bank’s survey of the sector’s 2018 contribution to Bahamian GDP, released earlier this week, revealed that wage pressures, government taxes and non-staff administrative costs drove a 9.7 percent rise

in the domestic sector’s costs to almost $500m.

“Domestic banks and trusts companies’ total expenditure rose by ten percent to $511.1m in 2018, exceeding the 1.3 percent uptick recorded a year earlier and the average gain of 3.1 percent over the last five years,” the Central Bank said.

“Underpinning this development, total operational costs - which accounted for 97 percent of the total expanded by 9.7 percent to $495.9m, outstripping the

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Re-trial over Rum Cay restaurant demolition

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE dispute over a Rum Cay restaurant’s demolition has been sent back to the Supreme Court for re-trial even though its majority owner may have “a bogus claim to ownership of the land”.

The Court of Appeal, in a unanimous verdict delivered this week, found that David Cummings and his company, Tamarind Tree Holdings Co Ltd (TRECo), were in possession of the Green Flash Restaurant and Bar prior to its destruction

on October 22, 2007.

The duo had sued for damages related to alleged trespass and the restaurant’s unlawful destruction, but the Supreme Court rejected the first claim while finding that Bobby Little and his Sumner Point Properties company - which claimed ownership of the land on which the Green Flash was built - had committed no breach of fiduciary duty.

But Appeal Justice Jon Isaacs, in overturning the initial ruling, said the Supreme Court was mistaken to

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provision for their own retirement, but the failure by many to do so has resulted in frequent calls from pension industry players for participation in such schemes to be

mandated by legislation.

Mr Turnquest yesterday cautioned, though, that any legal reforms that made it mandatory for Bahamians to participate in pension schemes - either employersponsored or their own individual plans - would require extensive public consultation and research before becoming law.

He also did not commit to a timeline for addressing The Bahamas’ savings and retirement woes, which many observers have described as a “ticking timebomb” for a society that traditionally directs its

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‘Well beyond time’: Realty VAT paid online this year

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Ministry of Finance’s top official yesterday pledged that VAT on real estate sales will be payable online during this fiscal year, adding: “It’s well beyond time to go digital.”

Marlon Johnson, acting financial secretary, told Tribune Business that the newly-announced procedures for paying the tax were desired by “the lion’s share” of attorneys and other practitioners that the Department of Inland Revenue (DIR) will interact with.

Responding to concerns that the government is requiring the private sector to make a “big jump” and transition to submitting conveyances by e-mail within just two weeks, Mr Johnson said the DIR would still “accommodate” those unable to send in the necessary documents electronically.

Arguing that The Bahamas had generally been a “slow adopter” of technology and electronic transaction processing, he added that the processes outlined by the DIR were part of a series of “interim” steps that itself and other agencies are taking towards reduced costs and greater efficiency through the elimination of paperwork.

“We went with e-mail because it was the working assumption that all operators we deal with have e-mail as part of the ordinary course of business,” Mr Johnson said of the August 1 deadline for New Providence conveyancing materials to be submitted electronically.

“I can’t imagine what set of circumstances would make that complex for business. It will benefit the lion’s share of persons, but if there are those that want to submit by hard copy we will accommodate them.

MARLON JOHNSON “It’s a new way of doing work, but is very consistent with the mandate given by the prime minister to move items to digital procedures.

The lion’s share of our customers, the taxpayers we serve, prefer to do this electronically. They want this.

It makes their whole life easier.”

Mr Johnson said the electronic submissions process was designed to eliminate the “back and forth” for attorneys and private sector professionals because any queries could be addressed without them having to leave their offices.

The DIR is pledging a maximum five-day turnaround time, after which hard copies of the documents can be brought to its office for the necessary “stamping” and payment of due tax. “It really will save the people involved tremendous time,” Mr Johnson added. “This will ultimately prevent the waste of unnecessary time on the part of all practitioners.”

Addressing concerns that tax payments can only be made via bank draft or a manager’s cheque, he said the government is aiming to move this online at some point during the 2019-2020 budget year, although he declined to commit to a date.

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THE TRIBUNE

Re-trial over Rum Cay restaurant demolition FROM PAGE ONE throw out the trespass claim and should have instead found that Mr Cummings and his company remained in possession “through their occupation of the land” on which the Green Flash was constructed.

The restaurant’s demolition, and subsequent row and legal battle, have their roots in Mr Little’s thendecision to sell his business to Montana Holdings, the developer behind the proposed $700m Rum Cay Resort Marina project.

While that sale ultimately fell through, and the Rum Cay Resort Marina project never happened, the Green Flash’s demolition has become one of numerous legal battles between Messrs Cummings and Little stemming from the duo’s long-running real estate dispute on Rum Cay. Mr Cummings, who runs a pollution control company in New York state, and Mr Little have been feuding on Rum Cay for more than a decade with demolished buildings central to the dispute between the two parties. Multiple other actions are also at various stages of resolution in the Bahamian judicial system.

As for the Green Flash, the Court of Appeal said Mr Little agreed to sell his business - including Sumner Point’s marina - to New England Marine Service (NEMS), a subsidiary of Montana Holdings, in late June 2007.

The sales agreement gave power to NEMS to “dispose of any houses, offices, buildings and lands” that were owned by Sumner Point, and this was followed by a second “power of attorney:” on October 19, 2007, allowing the Montana Holdings subsidiary to act as it saw fit to implement the purchase agreement.

Harry Briggs, a Montana Holdings and NEMS employees, demolished the Green Flash some three days later. John Faraday, NEMS chief operating officer and an agent for Sumner Point, argued that the bar “was a part of Sumner Point’s property inasmuch as it was included in the sale agreement.

“John Faraday’s position was that he had been given

absolute corporate control of Sumner Point and had been appointed chief operating officer of NEMS, and that he had operated at all material times in his capacity as such,” the Court of Appeal added.

Mr Cummings and his company immediately sued for damages related to trespass and unlawful destruction, but Mr Little and Sumner Point countered that they were not in possession of the Green Flash and did not have a right to operate.

They added that the restaurant was “not operational and was a derelict structure on” Sumner Point’s property, while pinning the blame for the demolition on Montana Holdings and its staff, including its principal, John Mittens.

Mr Faraday, in his defence, said he had received legal advice that the Green Flash was built on property that NEMS now controlled via the sales agreement.

Confirming that he gave instructions to demolish the restaurant after removing all valuables, his defence contradicted itself by first claiming he offered to pay Mr Cummings $400,000 compensation only to then deny this ever happened.

Justice Fraser, in delivering the Supreme Court verdict, rejected the trespass claim on the basis that Mr Cummings and his company had failed to prove they were “in actual possession” of the Green Flash or land that it was built on.

This, though, was rejected by the Court of Appeal given that Mr Faraday admitted removing their valuables just prior to demolition and placing them somewhere safe. “It suggests, therefore, that at the time that Harry Briggs and John Faraday demolished the Bar it was in the possession of the appellants [Mr Cummings],” it ruled.

“Notwithstanding the cease and desist letter written by counsel for the first and second appellants, and despite what may have been a bogus claim to ownership of the land by the appellants, the appellants were de facto possessors of the Bar.” Evidence given on behalf of Mr Cummings by Ian

Parrish also contradicted claims that the Green Flash was dilapidated. “The judge seems to have considered that since the bar was not operational, the appellants could not be said to have been in possession of it,” the Court of Appeal found.

“This is not dispositive of the issue. The appellants’ property remained in the bar until same was removed prior to the demolition of the bar.... The judge’s finding that the appellants were entitled to damages for the destruction of the bar is incompatible with her conclusion that the action for trespass fails.

“If the Judge was satisfied the appellants should be compensated for the bar’s destruction she must have arrived at the conclusion that they had some connection to it.”

The Court of Appeal also ruled that the Supreme Court was incorrect to determine that Mr Faraday alone was responsible for the demolition, instead finding that all defendants had “acted in concert” to bring about its destruction.

“We were satisfied the judge erred when she found against the appellants’ claim for damages for trespass against the respondents jointly and severally,” the Court of Appeal concluded.

“Further, the judge ought to have found that the appellants remained in possession of the land through their occupation of the land on which the Bar was constructed, and in which their property remained.”

Take aviation accident probe improvements to next level

By KEITH MAJOR JR, LLM Aviation Attorney THE past 18 months has certainly been active for aircraft accidents within the sovereign waters of The Bahamas. The most recent tragedy occurred one week ago involving an AugustaWestland AW139 helicopter, which crashed while flying from Abaco to Florida. Unfortunately there were no survivors, with billionaire Chris Cline confirmed among the fatalities.

As advised in the wake of the November 8, 2018, crash involving Captain Byron Ferguson, a strengthening of The Bahamas’ air accident investigation regime was critical given this nation’s archipelagic nature, location on major international aviation routes and bathymetry (underwater topography).

Officials from the Bahamas Air Accident Investigation Department (AAID) have attributed the timely recovery of all victims in the latest tragedy, along with the helicopter itself, to lessons learned from the most recent handling of the November 8 crash.

The timely recovery of both wreckage and victims is nothing short of remarkable, since it has been widely reported that search efforts in this most recent crash began some 12 hours after the helicopter was suspected to have gone down in Bahamian waters. Given this

extensive passage of time, AAID investigators and members of the families of the deceased are fortunate that search and rescue assets responding to this crash were not required to cope with the same underwater topography as at the site of the November 8 crash.

Since last November, when Captain Ferguson’s Piper Aztec went down in waters north-west of New Providence, the government has quickly taken heed. In June 2019, it tabled the Aircraft Accident Investigation Authority Bill 2019 (Byron’s Law) in the House of Assembly.

As promised by the Prime Minister in the wake of the November 8 crash, Byron’s Law is designed to revamp and revise The Bahamas’ aircraft accident investigation regime. It is truly commendable that this administration has been able to bring Byron’s Law to Parliament so swiftly and before the anniversary of the tragic incident.

A review of this new Bill reveals that, in the main, it checks all the boxes. It satisfactorily addresses the concerns raised in the wake of the November 8 crash.

Byron’s Law proposes the creation of an aircraft accident investigation authority that is set to be autonomous and directed by a four member board.

Further, it makes provision for the recommendations generated, and specifically addresses the areas of adequate funding for investigation efforts, clarifies

the authority of entities at crash sites, and entrenches the duty of preservation of any wreckage.

Although the government has brought this piece of legislation to Parliament swiftly, the July 4 crash demonstrates this is no time for it to rest on its laurels. It remains incumbent upon this administration to pass Byron’s Law into force in the shortest possible time. While any legislative and budgetary improvements arising out of the November 8 crash will no doubt assist responses and families in the future, it must be remembered that such improvements have no retroactive effect for the complexities left behind from the November 8 crash for the investigators and family members alike.

Although the circumstances surrounding both the November 8 and July 4 accidents are not identical, perhaps a general contrasting of the outcomes in both events, along with the tabling of Byron’s Law, provides sufficient evidence for the position that the problems with aircraft accident investigations in The Bahamas are being addressed.

Improvements in the national response to aircraft accidents in Bahamian waters augur well, and are a step in the right direction towards The Bahamas’ gradual move to independent management of its sovereign airspace, as it demonstrates capacity or at least the beginning stages thereof.

To advertise in The Tribune, contact 502-2394

www.ub.edu.bs

CAREER OPPORTUNITIES Suitably qualified candidates are invited to apply for the following career opportunities at University of The Bahamas, Oakes Field Campus: Associate Vice President, Business Enterprise Unit responsible for the various income-generating facilities (retail and rental spaces) at UB. The AVP Business Enterprise Unit is expected to have a comprehensive knowledge of business operations, accounting, budgets, entrepreneurship and leadership. A key consideration for this position is the ability to provide strong oversight for multiple activities across a range of business operations and opportunities at the University. Duties and responsibilities include ensuring costs are reported and monitored to determine return on investments/objectives and improve general efficiency; working with key suppliers and network/source new suppliers in order to provide the most up-to-date and cost effective client development solutions; and developing innovative strategies for revenue growth, including under taking interviews in order to get feedback and incorporate it into the institution’s growth plan. Required qualifications include a Master’s degree in Marketing, Entrepreneurship or Business, with at least 7 (seven) years of post degree experience at the management level. Proven work experience in retail management is a must.

Retail Manager, responsible for driving sales, inventory and financial management and ensuring stores’ profits and productivity goals are met.

Among the duties and responsibilities are overseeing the activities of all departments within the retail establishments; assessing the needs of the institution pertaining to the development of the online and second hand bookstore service; monitoring cash flow, inventory and security controls; monitoring daily and weekly sales and analyzing reports to ensure the monthly sales budget is achieved; effectively supervising to drive sales while maintaining exceptional customer service and store standards; and managing a complement of approximately 20 persons. Included in the required competencies are excellent interpersonal skills and the ability to interact effectively with faculty, staff, students and donors in a wide range of roles; being open-minded, creative and solution-orientated; and understanding and driving retail profitability. A Bachelor’s degree in Business or similar experience and at least five (5) years of managerial experience in a similar position are required.

Detailed position announcements are accessible online at: http://www.ub.edu.bs/about-us/career-opportunities/.

Interested applicants should submit the following to the Human Resources Department via hrapply@ub.edu.bs by Thursday, 25th July 2019: • A cover letter of interest highlighting work experience and accomplishments relevant to the position; • Completed UB Employment Application Form (www.ub.edu.bs/wp-content/uploads/2017/01/Application-forEmployment-Staff.pdf) • Current Curriculum Vitae or Resume; • Copies of Qualifications and Certificates; • Copy of the relevant pages of a valid passport showing passport number, photo identification and expiration date; • Copy of N.I.B. Card; • At least three (3) written, professional references.

THE TRIBUNE

Friday, July 12, 2019, PAGE 3

HOTELS HOST RECORD EDUCATOR NUMBERS THE Bahamas Hotel & Tourism Association (BHTA) has hosted a record number of educators for its 16th annual Industry Internship Programme, held at the University of The Bahamas.

Dionisio D’Aguilar, minister of tourism, told attendees that “the tourism industry is at full throttle, firing on all cylinders”.

He urged the teachers to “harness in our youth the soft skills of human interaction; how to be considerate, respectful, kind and hospitable”.

Mr D’Aguilar added that if students learnt these

FROM left: Carlton Russell, president, Bahamas Hotel & Tourism Association (BHTA); Delroy Robinson, Programme Participants, Dionisio D’Aguilar, minister of tourism and aviation; and Suzanne Pattusch, executive vice-president, BHTA.

qualities early, and developed the habit of treating fellow students in a humane manner, great customer service would be second nature when they enter the workforce.

He challenged educators to teach students how to identify economic opportunities, and the need to “integrate entrepreneurship in the school curriculum across grade levels” to “develop the next generation of Bahamians with a mind to go into business”.

Among the businesses that participated were Ardastra Gardens & Zoo

Conservation Centre; British Colonial Hilton; Comfort Suites Paradise Island; Graycliff Hotel; Majestic Tours; Nassau Airport Development Company (NAD); Powerboat Adventures; RIU Hotel; The Counsellors; Bahamas Out Island Promotion Board (BOIPB) Hospitality Group; The Ocean Club; Sunrise Beach Villas; Baha Mar; Purity Bakery; The Warwick Paradise Island; SuperClubs Breezes; Harbourside Resort; Dolphin Encounters; Leisure Tours; Mandara Spa; and Atlantis.

‘Skeleton in closet’ ‘Well beyond time’: Realty fear over debt fall VAT paid online this year FROM PAGE ONE “It’s a great sign but is there a skeleton in the close that could throw that off?

I’m not saying the government is intentionally hiding something, but it’s a big issue. Who knows what ministry, department has not reported something.

“The $30m fall in the national debt is a good sign, but I’d be happier if there was accrual-based accounting and everything was in and accounted for. They haven’t closed the accounts for the year yet, and look at what happened when they tried to close the accounts for the last administration’s final year.”

Mr Myers’ last comment refers to the 2016-2017 fiscal year, when the projected $330m deficit for the final year of the Christie administration became $661m worth of “red ink”. Its successor blamed this on a combination of pre-election spending and unfunded liabilities that it had to cover through borrowing.

The Minnis administration has committed to rolling-out accrual-based accounting throughout the public sector by 2022 to replace the existing cashbased method, which only captures revenues and expenditure as they occur.

Most observers believe this fails to capture the government’s true financial position, with such weaknesses highlighted by the $360m worth of unfunded arrears that the current administration has partially blamed for the VAT rate increase to 12 percent as it bids to pay this off over a three-year period.

Meanwhile Carey Leonard, the Callenders & Co

attorney, told Tribune Business yesterday he felt the government had received too little credit for the $30m quarterly fall in The Bahamas’ national debt.

Suggesting that too little public and media attention had been given to this, he said: “I thought: ‘Gee, whizz’. That’s no easy feat given where the finances were going when this government took over. I think they really deserve credit for that.”

The Central Bank’s quarterly review for the three months to end-March 2019, published this week, disclosed: “At end-March, the national debt - inclusive of contingent liabilities - declined by $30.1m (0.4 percent) over the prior quarter to $8.186bn, but strengthened by $277.3m (3.5 percent) vis-à-vis March 2018.”

One quarterly decline does not represent a trend, and the level of increase over the prior year indicates much more work remains to be done, but the quarterly reduction in The Bahamas’ “red ink” is a potential sign that the government is beginning to arrest the rate of growth in the $8bn-plus national debt.

The size of the national debt, as a percentage of Bahamian economic output, also remains some distance away from the Fiscal Responsibility Act’s 50 percent debt-to-GDP target.

“As a ratio, the direct charge [on government] fell by an estimated 20 basis points on a quarterly basis, but rose by 2.2 percentage points year-on-year to 60.2 percent at end-March,” the Central Bank said.

“In addition, the national debt-to-GDP ratio narrowed to an estimated 65.9

percent from 66.1 percent in the previous three-month period, while in comparison to the prior year the ratio firmed by 2.2 percentage points.”

Mr Myers told Tribune Business that the government had three ways to achieve the 50 percent debt-to-GDP ratio - grow the economy; reduce the national debt through increasing revenue or “cutting” spending, or a combination of both.

“It’s got to be a mixture of those for sure, and that’s got to be the focus,” he added.

“People’s confidence will only be higher when we see that attained. We don’t want to see lip service; we want to see action. We need to deliver on that.

“If GDP is not increasing then the government has to focus on getting its costs down. It’s the same balance we all have in our businesses. If you’re not increasing revenues the only alternative is to cut costs.

“If we can improve tax compliance that’s an easy win. If we cut costs that’s a win. If we have a five percent swing on growth, and five to ten percent increase in compliance and freeze spending we’re going to start to win. All these things help. Every little bit helps.

It’s a bit here, a but there, and soon enough we will make it, but we have to remain extremely vigilant.”

Mr Myers described The Bahamas’ high energy costs as “a killer because it hurts GDP”, repeating calls to reduce rates to as low as 21-25 cents per kilowatt hour. He also urged the government to speed up the building permitting process given the economic activity and revenues bound up with such approvals.

FROM PAGE ONE “I can’t give a definitive date but it’s in the works,” Mr Johnson pledged. “Within the fiscal year we will be able to do that. It’s being nailed down now. I can’t give a timeline but it will happen this fiscal year.”

Reassuring on current payment methods, he added: “We recognise there are a multitude of ways for payment, and people will see we’ll be increasing the number of payment options and touch points because we want to make sure persons have an easy way to pay.

“In the coming weeks and months we will be addressing that and speaking to how we will expand the touch points and methods of payment. Over the next 12-18 months you will see a lot more of a move in the Ministry of Finance and other agencies to move to a digital platform.”

Confirming that the electronic submission of conveyances is part of the government’s drive to hit its 2021 goal of having at least 17.5 percent of its services online, Mr Johnson said: “The rest of the world has moved to digital platforms, in some places almost exclusively, and we in The Bahamas are slow adopters both in the private sector and public sector. We’ve recognised it’s well beyond time to make that transition.”

While a $30m InterAmerican Development Bank (IDB) financed project is intended to help The

Bahamas “leapfrog” forward on digitisation, Mr Johnson said the government was already moving to place both internal functions and external services fully online.

“Inside government we’re looking at how to move away from paper-based transactions to digital platforms,” he told Tribune Business. “It’s a requirement for any number of reasons - for ease of doing business, cost, efficiency, spot audits and audit trails, and information capture. There’s

any number of reasons for us to make the move to greater reliance on digital platforms.

“The ultimate goal is to fully digitise the process so that wherever people are in the world they will be able to transact business with the government. People are reluctant, this is new and there will be growing pains as we finalise this, but as we get into this people will appreciate it makes their lives a lot easier.”

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PAGE 4, Friday, July 12, 2019

THE TRIBUNE

DPM: Something must be done over pensions FROM PAGE ONE resources to consumption spending as opposed to long-term savings.

“Given the environment it’s an area we’re going to have to bring some kind of focus to given that the level of savings in the country has been relatively subdued,” Mr Turnquest told Tribune Business of the low private pension participation rate.

“The weight being put on national resources and what’s happening with NIB means it is a consideration that we’re going to have to consider at some point. As the population ages this becomes more and more of a concern, and the NIB programme as currently

structured is going to become more and more challenged, so the need for pensions and private savings will become more critical as we go forward.

“Thus far we’ve been able to provide assistance through the Old Age Pension facility and NIB, but as the age and demographics shift, this is going to become more and more of a weight, so looking at alternatives is the smart thing to do.”

The Central Bank’s survey of private pensions for 2016 and 2017 revealed that NIB benefits, together with personal savings linked to insurance annuities and private schemes, represent the major sources of Bahamian retirement funding.

However, actuarial projections that NIB’s $1.6bn reserve fund will be exhausted come 2029 means that comprehensive reform is required within the next few years to rescue the nation’s social security scheme, potentially impacting benefits to retirees as indicated by Mr Turnquest.

With just 25.7 percent, or 52,363 out of a 200,000plus workforce, covered by a formal retirement plan, pension fund managers and administrators have repeatedly called for legislative intervention to help headoff the looming burden presented by Bahamians who lack sufficient income to cover their golden years.

Mr Turnquest, though, likely mindful of the financial impact to small and

medium-sized businesses (SMEs) if they were forced to provide pension plans for their employees, said careful study was needed before making such initiatives mandatory.

“It’s one that has to be given a lot of thought and research if you’re going to talk about some kind of mandatory pension or savings initiative,” he told Tribune Business.

“Whenever we talk about any kind of mandatory structure it requires a whole lot of consultation with the public. It’s not a short-term thing but the conversation needs to be had.”

The absence of any timeline for government action will likely disappoint pension industry operators.

Michael Anderson, RoyalFidelity Merchant Bank & Trust’s president, on Thursday had called for The Bahamas to “make inroads” on bringing a 22-year effort to introduce pension legislation to a speedy conclusion.

Suggesting that it focus on regulating existing schemes and industry operators before addressing whether to make pensions mandatory, Mr Anderson warned that The Bahamas was storing up “future trouble” for itself unless it took immediate action to alleviate the growing retirement crisis.

The Central Bank survey, too, also pushed in this direction on the basis that the 35 percent response rate to its survey, with

just 49 out of 140 existing and potential pension plan sponsors responding, “underscores the importance of concluding and activating the regulatory framework for private schemes”.

It added: “Currently, the draft Bill for pension fund regulation - the Employees’ Pension Fund Protection Act 2012 - is still pending approval prior to implementation. The Bill would permit more comprehensive monitoring of activities, especially as it relates to smaller plans.

“As contemplated, the regulatory framework for private pension plans would also reinforce mandates for prudent management practices within private schemes.”

Domestic banks in 10% cost increase FROM PAGE ONE 1.7 percent increase in the prior year. This outcome reflected an 11.5 percent rise in other non-staff administrative costs to $234.1m, following a two percent gain recorded in the preceding year.

“In addition, salary outlays advanced by 7.2 percent to $196m, extending the previous year’s 2.3 percent advance, as both base salaries and bonuses registered growth of 7.8 percent and 0.8 percent, respectively.

Further, government fee payments, inclusive of license fees, work permits and ‘other’ taxable inputs, grew by 10.9 percent to $63.7m, a reversal from a slight 0.4 percent falloff in 2017.”

As for the financial services industry’s international segment, the Central Bank said that despite closures and the outsourcing of back office functions, total spending increased by 1.3 percent to $249m in 2018.

CENTRAL BANK BUILDING, DOWNTOWN NASSAU

This partially reversed the 9.3 percent fall-off witnessed during the prior year.

“Underlying this outturn was a nearly three-fold increase in capital spending to $10.2m from $3m

NOTICE

NOTICE is hereby given that MEOSHE SHAQUILL JOSEPH, of Allen Drive, Carmichael Road Nassau, 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 12th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

following a significant 59.3 percent decline a year earlier,” the Central Bank said. “In contrast, operational outlays, which comprised 95.9 percent of total expenditure, contracted

by 1.6 percent to $238.8m, although lower than the 7.9 percent decrease in 2017.

“In particular, salary payments fell by 5.5 percent to $133.7m as the 8.7 percent reduction in

NOTICE

NOTICE is hereby given that JOANELLE PETITDE, of Fox Hill, Bahamas. is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 5thday of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

base salaries outweighed the 3.6 percent uptick in bonuses. Government fee payments also decreased by 5.6 percent to $9.2m following a 13.5 percent contraction recorded a year earlier.

“Providing some offset, other administrative costs moved higher by 4.9 percent to $95m, a reversal from a 12.2 percent reduction in 2017. In addition, outlays for staff training grew marginally by 0.4 percent after a six percent fall-off in the prior year.”

Average salaries paid by the international banks increased by an estimated $5,218 or 4.9 percent to $111,129 in 2018, which the Central Bank said was due mainly to “a decline in lower paid administrative-related staff”. Average salaries at domestic banks firmed

by $3,261 or 6.2 percent to $56,289 per year.

Painting a bleak picture of the financial services industry’s near-term growth opportunities, the Central Bank survey added that its findings “continued to underscore the fact that the sector is in the midst of adjustment to economic and regulatory forces”.

It said: “Cost considerations and weak credit market conditions continue to contain the operating prospects for the domestic sector. For international businesses, the response to tax transparency requirements has exacerbated operating cost pressures, culminating in both the repositioning of business outside the jurisdiction and significant outsourcing of support for the remaining operations.

“In this regard, The Bahamas continued to experience employment retrenchment in international banking, notwithstanding an increasing expenditure footing for domestic banking....

The corporate and financial services is also facing adjustments, as The Bahamas transitions to enhanced international transparency around the use of international business companies (IBCs).”

Looking ahead, the Central Bank said: “Near to medium-term prospects for the financial services sector’s contribution to the economy remain contingent on strengthening the competitive profile of the sector. For some business models, this has meant increasing the attention on markets outside of the major industrial countries, with strengthened focus on attracting tax compliant clientele.”

NOTICE

NOTICE is hereby given that CLOTILDA LYDIA MISSICK, ofSouth Beach, Blue Bonnet Drive Nassau, 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 4th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Friday, July 12, 2019, PAGE 5

Setbacks for Trump’s drive to Amazon, seeking skilled lower prescription drug costs more workers, will WASHINGTON Associated Press

AFTER two setbacks this week, President Donald Trump is now focusing his drive to curb drug costs on congressional efforts aimed at helping people on Medicare and younger generations covered by workplace plans.

The White House on yesterday yanked its own regulation to ease the financial bite of costly medications for those on Medicare by letting them receive rebates that drugmakers now pay to insurers and middlemen. A congressional agency’s estimate that the plan would have cost taxpayers $177bn over ten years seemed to seal its fate.

Earlier a federal judge ruled that the administration lacked the legal authority to require drugmakers to disclose list prices in their TV ads. The ruling Monday blocked a highly visible change expected to have started this week.

Both price disclosure and the rebate idea were part of a strategy on drug costs that Trump announced at the White House amid much fanfare last year.

“This is a big setback,” said Peter Bach, director of the Center for Health Policy and Outcomes at New York’s Memorial Sloan Kettering Cancer Center.

The rebate rule “was not good policy (since) it would have increased spending on prescription drugs even if it mildly reduced outof-pocket costs in some cases. But nevertheless this was a cornerstone of the blueprint”.

White House spokesman Judd Deere said the rebate proposal was withdrawn “based on careful analysis and thorough consideration”.

Deere said Trump is not backing away from his promise to lower drug prices, and the administration is setting its sights on bipartisan legislation . One idea would cap drug copays for people with Medicare, which would produce savings for seniors taking costly drugs. That’s another way to achieve a similar goal as the rebate plan.

“The Trump administration is encouraged by continuing bipartisan conversations about legislation to reduce outrageous drug

PRESIDENT DONALD TRUMP costs imposed on the American people, and President Trump will consider using any and all tools to ensure that prescription drug costs will continue to decline,” Deere said in a statement.

While agreeing it’s a setback for Trump, John Rother of the National Coalition on Health Care said that if legislation could be worked out, “that might actually lead to a better outcome”. His organisation is an umbrella group that represents a cross section of business and consumer groups.

The chairman of the Senate Finance Committee, Charles Grassley of Iowa, and the committee’s top Democrat, Sen Ron Wyden of Oregon, are trying for a compromise centered on lowering drug costs for government programmes such as Medicare and Medicaid.

Top administration officials this week participated in a closed-door meeting between Grassley and Republican senators on his committee.

Grassley said in a statement that he had concerns about the administration’s rebate rule, but was confident about the prospects for legislation. “While the final details are still being negotiated, we’re on track to report a bill out of committee very soon,” he said.

Separately, Grassley and Illinois Sen Dick Durbin, the chamber’s second-ranking Democrat, are pushing legislation that would grant

NOTICE

NOTICE is hereby given thatHASSANRYAN HERARD, of Barcardi Road P.O.BoxN75W Nassau, 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 12th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

the government the power to require drug companies to disclose their prices in consumer advertising.

House committees are also working on legislation and Speaker Nancy Pelosi, D-Calif, remains in contact with the White House on a drug cost compromise. Changes to Medicare often have an impact on employer insurance, but the main dividend for working families could come from legislation to promote pharmaceutical competition.

The rebate plan was crafted by Health and Human Services Secretary Alex Azar but ran into opposition from White House budget officials. That pushback stiffened after the nonpartisan Congressional Budget Office estimated that the plan would have little effect on manufacturer prices and would cost Medicare $177bn over ten years by leading to higher premiums subsidised by taxpayers.

Trump’s reversal on rebates was a win for insurers and middlemen called “pharmacy benefit

managers” who administer prescription drug plans for large blocks of insured patients.

Shares of several big companies that manage prescription benefits started climbing early in the day.

It was a defeat for the pharmaceutical industry, which had lobbied to promote rebates. Drugmakers prefer that to other approaches lawmakers are considering. Those include “inflation rebates” that drugmakers would be pay directly to Medicare if they raise prices beyond a yetto-be-determined measure.

“The administration has abandoned one of the only policy solutions that would have truly lowered what patients are forced to pay out of pocket for the medicines they need,” Jim Greenwood, head of the Biotechnology Innovation Organization, said in a statement.

Rebates are a largely unseen part of the complex world of drug pricing.

Under the administration’s plan, drugmaker rebates now paid to insurance companies and their middlemen would have gone directly to seniors in Medicare’s Part D program when they filled their prescriptions.

But congressional analysts concluded that drug companies were unlikely to lower list prices across the board in response to the plan. Meanwhile, insurers would raise premiums to compensate for the loss of rebates.

Labor Department data indicate that changes may be afoot with drug prices.

Overall prescription drug inflation seems to have stabilised, with more monthly declines than increases recently. The White House credits Trump for that change, but independent experts say the trend isn’t totally clear yet.

The administration’s rebate reversal was first reported by Axios.

do the training

NEW YORK Associated Press AMAZON, needing a more tech-savvy workforce, is offering to pay to retrain its employees and help them switch to more technical jobs at Amazon or elsewhere.

The online shopping giant said yesterday that it plans to spend $700m by 2025 to retrain 100,000 workers, or a third of its US workforce. The initiative could help Amazon find and keep more workers With a strong economy and unemployment near a 50-year low, workers have more options, giving employers a tougher time finding help.

“The harder it is to hire workers from the outside, the more sense it makes to invest in training the workers you already have,” said Jed Kolko, chief economist at job site Indeed.

The training could also help Amazon.com Inc tame criticism from labor groups and some politicians, including presidential candidates, who say Amazon’s orderpacking warehouses have poor working conditions.

Workers at a Minnesota facility plan to strike next week during the company’s busy “Prime Day” shopping holiday, saying that they are not paid enough for the speed at which they’re expected to pack boxes.

Late last year, Amazon raised the minimum wage for all its US workers to at least $15 an hour.

Most of the in-house training will be free for Amazon employees, the company said. It will offer several programmes, depending on skill and job level. A warehouse worker with no college degree, for example, could be trained to become an IT technician who keeps the computers and scanners in a warehouse

running smoothly. More high-skilled workers, like those at its Seattle headquarters, could take software engineering classes to switch careers at Amazon or another company.

“While many of our employees want to build their careers here, for others it might be a stepping stone to different aspirations,” said Beth Galetti, a senior vice president of human resources at Amazon.

“We think it’s important to invest in our employees, and to help them gain new skills and create more professional options for themselves.”

Major retailers like Walmart and Target have been raising pay and boosting training to lure and retain employees and give shoppers a better in-store experience. While customers are less likely to come face to face with an Amazon worker, the company said having better skilled talent can help it invent more products and make shopping more convenient for customers. Its Alexa voice assistant, for example, has been a hit for the company, allowing customers to reorder paper towels or play a song by talking to a voiceactivated speaker.

Amazon said yesterday that it expects its total US workforce to hit 300,000 this year. Worldwide, it has more than 630,000 employees, making it the second-biggest US-based private employer after Walmart.

Amazon, using its own employment data, said its fastest growing skilled job positions over the last five years include data mapping, data science, security engineering and business analysis. There is also strong demand for workers skilled in logistics and transportation.

PAGE 6, Friday, July 12, 2019

THE TRIBUNE

Travel demand pushes ticket prices, profits, higher at Delta DALLAS Associated Press DELTA Air Lines is benefiting from strong demand for air travel this summer and the grounding of Boeing Max planes at key rivals to post record revenue and a bigger profit.

The airline is aggressively adding flights and seats, but it is finding more than enough passengers to fill them, leading to even more crowded planes during the peak vacation season.

Five of the ten busiest days in Delta’s history have occurred in the past month, CEO Ed Bastian said in an interview.

“Demand is going to continue to stay strong,” Bastian said. “Our advance bookings are healthy, and it should be a good third quarter.”

Delta said Thursday that second-quarter profit jumped 39% to $1.44bn.

The results beat Wall Street expectations, and the airline raised its forecast of full-year earnings.

Shares of Delta, the nation’s number two airline by revenue, rose 72 cents to $60.19 in afternoon trading.

Delta passengers flew

A DELTA Air Lines aircraft makes its approach at Dallas-Fort Worth International Airport in Grapevine, Texas. Delta Air Lines, Inc reported earnings on Wednesday. more than 63 billion miles in the April-through-June quarter, a 6.3% increase over the same period last year and roughly double the growth the airline saw in 2017 and 2018.

The Atlanta carrier boosted passenger-carrying capacity by a robust 4.7%, but average occupancy still crept higher, to 88%. At that level, many peak-hour flights are full, and even those during nights and

weekends have far fewer empty seats.

The airline is seeing particular strength among its highest-paying customers.

Revenue from businessclass and other premium perks jumped 10% from last year’s second quarter, twice as fast as revenue from selling tickets in the main cabin.

Delta is also getting a boost because rivals American Airlines and Southwest

Airlines — and to a lesser extent, United Airlines — cancelled thousands of flights in the quarter because their Boeing 737 Max planes were grounded after deadly crashes in Indonesia and Ethiopia.

Delta does not use the plane.

Bastian estimated that the cancellation of Max flights sliced 1% to 2% off the supply of summer flights in the US — a factor

NOTICE

NOTICE

NOTICE is hereby given that MARC CORLOS LYS of Cowpen Road, Nassau, 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 5th day of July, 2019 to the Minister responsible for Nationality and Citizenship,P.O.Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given thatCARLINE VERNOT, of Market Street and Cordeaux Avenue, 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 5th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

THURSDAY, 11 JULY 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,175.11 | CHG: 0.16 | %CHG: 0.01 | YTD: 65.66 | YTD%: 3.11 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.60 2.60 2.00 3.04 11.05 6.17 4.64 12.50 2.74 2.20 9.51 7.01 15.60 7.98 3.75 14.00

52WK LOW 3.50 19.17 4.90 4.02 1.00 0.19 2.00 9.11 6.13 3.54 8.59 2.35 1.70 7.50 6.10 11.25 6.20 3.01 12.51

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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

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

E J K L M N

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

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

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 4.24 17.43 6.00 5.39 2.51 1.95 2.18 11.05 6.16 4.49 9.02 2.83 2.20 10.13 7.00 15.45 7.98 3.41 14.00

CLOSE 4.24 17.43 6.00 5.39 2.51 1.95 2.18 11.05 6.16 4.49 9.02 2.95 2.20 10.21 7.00 15.45 7.98 3.41 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.12 0.00 0.08 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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

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

500

VOLUME

EPS$ 0.240 0.932 1.760 0.323 0.098 0.000 -0.438 0.708 0.480 0.184 0.627 0.102 0.467 0.000 0.611 0.743 0.939 0.203 0.631

DIV$ 0.160 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.068 0.060 0.328 0.240 0.540 0.200 0.120 0.600

P/E 17.7 18.7 N/M 16.7 N/M N/M -5.0 15.6 12.8 24.4 14.4 28.9 4.7 N/M 11.5 20.8 8.5 16.8 22.2

YIELD 3.77% 7.23% 0.00% 4.64% 0.00% 1.03% 0.00% 6.52% 3.57% 2.67% 0.00% 2.31% 2.73% 3.21% 3.43% 3.50% 2.51% 3.52% 4.29%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST 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% 1.55% 3.97% 1.18% 4.17% 1.11% 2.71% 2.06% 4.97% 4.52% 0.96% 1.57% 4.58% 0.99% 4.25% 1.32% 4.12% 3.22% 5.64% 2.50% 6.46% 2.79% 8.14% 2.12% 4.69% 5.00% -3.39% 3.04% 3.32% 2.48% 3.55% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-May-2019 31-May-2019 31-May-2019 31-Mar-2019 31-Mar-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

MUTUAL FUNDS 52WK HI 2.24 4.29 2.06 188.32 158.55 1.62 1.76 1.70 1.15 7.66 8.96 6.74 11.83 12.04 10.63 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.64 1.08 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 FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.24 4.29 2.06 188.32 154.49 1.62 1.76 1.70 1.15 7.66 8.89 6.74 10.89 12.04 10.63 9.92 8.68 11.38

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 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

in pushing fares higher.

“It’s not hurting us,” he said, before downplaying the significance of canceled Max flights to Delta’s earnings.

Boeing has struggled to fix flight-control software implicated in the crashes, and now aims to submit a final package of fixes to the Federal Aviation Administration in September. Bastian said, however, “I think it’s going to take longer than people expect” before the plane flies again.

Delta considered the Max two years ago but ordered planes from Boeing’s European rival,

Airbus. President Glen Hauenstein said “it was a close call” after considering cost, engines and other factors, and he praised the Max as a “good product”.

Bastian said Delta is also benefiting slightly from a large number of other cancellations on American Airlines, which is suing its own mechanics and accusing them of conducting an illegal work slowdown.

Delta’s second-quarter profit was $407m higher than a year ago. Adjusted earnings per share were $2.28, six cents better than Wall Street expected, according to a survey of analysts by Zacks Investment Research.

Revenue rose 6% to a quarterly record of $12.54bn, also beating expectations.

Delta Air Lines Inc. said it now expects 2019 earnings of $6.75 to $7.25 per share, up from an earlier forecast of $6 to $7 per share.

Analysts said Delta left room to raise its forecast again if demand remains strong, especially among premium passengers.

“We see Delta as the best-run US airline, with a market share lead in business travellers that allows it to generate (revenue per seat) above the peer average,” CFRA Research analyst Jim Corridore said in a note to clients.

NOTICE

NOTICE is hereby given that GARRY NICOLAS of Bacardi Road, Nassau, 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 5th day of July, 2019 to the Minister responsible for Nationality and Citizenship,P.O.Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that BELKYS JEAMONTES GONZALEZ KELLY, of 69A Davis Street, Oakes Field Nassau, 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 12th day of July, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Friday, July 12, 2019, PAGE 7

Powell sends further signals of future rate cuts WASHINGTON Associated Press FEDERAL Reserve Chairman Jerome Powell, pictured, testifying for a second day before Congress, said yesterday that the economy is in a “very good place” despite headwinds and that the Fed is prepared to do what it can to “keep it there”.

Powell’s comments before the Senate Banking Committee strengthened the message he had sent to a House panel on Wednesday that the central bank is prepared to cut interest rates to support economic growth.

Powell noted that economic worries, reflected in surveys of business confidence, rose sharply in May. He did not specify what had caused the shock. But in early May trade talks between the United States and China broke down, and President Donald Trump announced that he was doubling tariffs on $250bn in Chinese goods.

At the same time, the global economy showed further weakness. Powell said these added threats were addressed by the Fed at its June meeting. Since then, job creation, which had slowed sharply in May, has rebounded and fears of a widening US-China trade war have eased.

“The economy is in a very good place,” Powell told the Senate committee.

“We want to use our tools to keep it there. It is very important that this expansion continue as long as possible.”

While Powell did not specifically state that a Fed rate cut could be coming at the July meeting, investors have taken his two days of testimony as strong evidence that is what will occur.

In his Senate appearance, Powell elaborated on the Fed’s concerns about persistently low inflation as a

reason that there is growing support for rate cuts, citing the problems Japan and Europe are facing in fighting chronically low inflation.

The Fed seeks to keep prices rising at an annual rate of 2%, but it has lagged below that level for most of the current expansion. This year it has fallen farther below that goal.

“You don’t want to get behind the curve and let inflation drop well below 2% because what happens is you get into this unhealthy dynamic potentially where lower expected inflation gets baked into interest rates,” Powell said.

The Fed raised rates four times in 2018, drawing the ire of Trump, who has called the central bank clueless by pursuing needless rate hikes that have slowed economic growth and depressed stock gains.

Much of Trump’s criticism has focused on Powell. The president has said he has the power to fire Powell or demote him, something that legal experts dispute.

Asked about Trump’s threats on Wednesday, Powell repeated that intends to serve his full fouryear term.

Powell received support from lawmakers in the House and the Senate for his efforts to maintain the Fed’s independence from political pressure.

Sen Richard Shelby, R-Alabama, told Powell yesterday, “Thank you

for keeping the Federal Reserve independent of both parties. We salute you for that.”

In response to questions, Powell said that very low unemployment rates no longer necessarily push up inflation. A relationship between the two existed “50 years ago” but that has gotten “weaker and weaker and weaker,” Powell said.

Those comments were viewed as another signal that the Fed is feeling more comfortable about keeping short-term interest rates low even though unemployment has fallen to the lowest level in nearly 50 years.

For decades, economic theory suggested that low unemployment — such as the current jobless rate of 3.7% — meant that employers would have to raise pay to attract and keep workers, and that would then raise prices to cover higher wage costs.

Many Fed officials believed that required raising rates to slow the economy and prevent a “wage-price spiral” from sending inflation higher.

But Powell said Thursday he believes the unemployment rate can likely fall much further than in the past without sparking inflation, which means that interest rates can also stay lower.

“I think we’re learning all of those things,” he said.

PAGE 8, Friday, July 12, 2019

THE TRIBUNE

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

T

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.

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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