FRIDAY, JULY 13, 2018
Property tax basis ‘adds to social ills’ By NEIL HARTNELL Tribune Business Editor email@example.com
EAL property tax is “contributing to a social ill” because it is calculated on real estate value rather than square footage, a well-known realtor is warning. Gino Maycock, a senior broker and appraiser at Colonial Realty, told Tribune Business that the present real property tax structure was a potential deterrent to Bahamians improving their homes because this would likely result in an increased tax bill.
* Realtor urges calculation on sq ft, not value * Present structure ‘deterrent’ to home upgrades * Anticipates commercial property ‘lull’ after budget
He argued that this, in turn, led to less activity in sectors such as residential construction and home furnishings, while also providing a disincentive to upgrades that improved the overall appearance and value of many Bahamian communities. Mr Maycock urged the government to establish The Bahamas as “a model country” by basing residential real property tax on square footage, rather than
appraised market value, calling on it to dare to be different. He also warned that going back to the old ten percent stamp duty structure for real estate transactions could have a temporary chilling effect on the commercial sector, as companies were no longer able to recover the 7.5 percent VAT portion previously paid on their purchases. The government
abolished the 2.5 percent stamp duty/7.5 percent VAT structure implemented by the former Christie administration in the 2018-2019 budget, arguing that the preferential tax treatment it gave to companies as opposed to residential purchasers - who still had to pay the full ten percent rate - was “inherently unfair”. Mr Maycock said the “sudden” change would likely cause a “pause” in the commercial real estate
Governance reformers optimistic over fiscal ‘teeth’ GINO MAYCOCK market until participants became “comfortable” with the change and what it means. He added, though, that real property tax was another area where the government should implement structural reforms because of the disincentive it creates for Bahamians wanting to improve their residences. “This has been a concern of mine for a long time,” the Colonial Realty broker told Tribune Business, “and I’ve been trying to communicate with the powers that be to get them to revisit it.
By NEIL HARTNELL Tribune Business Editor firstname.lastname@example.org THE deputy prime minister has reiterated the government’s desire to establish financial services “leadership” by setting the standard for beneficial ownership registries. K Peter Turnquest, in a recent interview with Tribune Business, said he did “not necessarily subscribe” to Bahamian financial services sector requests to place the Register of Beneficial Ownership Bill on the backburner and instead prioritise compliance with the European Union’s (EU) and Organisation for Economic Co-Operation and Development’s (OECD) demands. “That is a school of
K PETER TURNQUEST thought that,” he said of the industry’s call to deal with the bill in 2019, once global standards on beneficial ownership registries started
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‘Banner’ year gives payment provider national coverage A BAHAMIAN payment solutions provider aims to add a further five locations by the end of August, completing its nationwide coverage with 35 “touch points” following a “banner” first year. Barry Malcolm, Sun Cash’s chief executive, told Tribune Business yesterday that the brand, which falls under the Sun Island Transfers company, remains focused on building a complete payments platform to serve the entire Bahamas. “The end of this month will actually make 12 months since Sun Island Transfers has been in operation. We started our services in The Bahamas last year, focusing on the roll-out of Western Union. We have had a banner year in rolling out the Western Union services countrywide,” said Mr Malcolm. “Sun Island Transfers has two brands; one is Western Union, and the other is Sun Cash. We rolled out Western Union for very important reasons. The first reason is that it was a well-known brand, and secondly, introducing the brand back into The Bahamas would give us locus standi and some prominence as a player in the international money transfer market. “Also, Western Union has compliance and operating structures in place that are known worldwide. It gave our Sun Island Transfers company the
* SUN CASH TO HAVE 35 SITES BY END-AUGUST
BARRY MALCOLM opportunity to implement, manage and understand those services and, more importantly, transfer those structures into Sun Cash,” he continued. “By the end of August we will be on every island in the country. We will have at least 35 “touch points” country-wide. By that, I mean these are Sun Cash operated enterprises. Right now, 25-30 are already opened. Mr Malcolm said that with roughly three persons employed per outlet, that works out to a 75-90 person-strong workforce. He added that Sun Island Transfers has spent the last two years working on its electronic payments platform and meeting all regulatory requirements. “Every dollar that moves across our payments
SEE PAGE 3
BUSINESSES were yesterday urged to “pay more attention” as the government sets “a fast and furious” pace on reforms critical to hitting its end2019 target for joining the WTO. Darron Pickstock, who heads the Chamber of Commerce’s trade and investment division, told Tribune Business that most of the 14-15 draft bills he had seen this year were “geared towards” facilitating this country’s accession to full membership in the rules-setting body for global trade. Suggesting this showed there was “no question” of the government backing down from joining the World Trade Organisation (WTO), Mr Pickstock said
FAST AND FURIOUS’ REFORM PACE * CHAMBER EXEC CALLS FOR ‘ROAD MAP’ * CHANGE MUST BE FOR OUR, NOT WTO’S BENEFIT
DARRON PICKSTOCK that in the eyes of many Bahamians it had yet to make a convincing case for why this move will benefit the country.
By NEIL HARTNELL Tribune Business Editor email@example.com
Describing the government’s WTO communications strategy to-date as “patchy”, the Chamber executive warned that “the word on the street” in the private sector was that it has “not made the case” for accession yet. He called for the Minnis administration to set out “a road map”, detailing the full WTO accession process and individual steps this nation will have to take, as a means to reduce the fear of the unknown that typically leads to “resistance” on any Bahamian economic reform. And Mr Pickstock argued that The Bahamas should implement the proposed regulatory reforms for its own benefit, not merely to join the WTO, as a signal that it is “a progressive
GOVERNANCE reformers yesterday expressed hope that the Fiscal Responsibility Bill has gained more enforcement “teeth”, branding its imminent arrival in Parliament a “momentous occasion”. Matt Aubry, the Organisation for Responsible Governance’s (ORG) chief executive, told Tribune Business that its optimism was based on public comments by the deputy prime minister about provisions in the bill that were not included in the initial draft issued for public consultation. KP Turnquest, speaking at a Bahamas Chamber of Commerce breakfast, said the Fiscal Responsibility Council - the body created to oversee and monitor the government’s compliance with the legislation - would be able to make recommendations to the Public Accounts Committee (PAC) that could lead to the newly-independent director of public prosecutions taking legal action. Encouraged by this, Mr Aubry accepted that the government’s desire to push the Fiscal Responsibility Bill through Parliament before the summer recess might mean that the revised, final draft version of the legislation was not released until its House of Assembly tabling. Revealing that he spoke to Mr Turnquest at the House on Wednesday, Mr Aubry explained: “He said that the timing of it is the
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Bahamas targets ‘leadership’ Private sector warned: ‘pay attention to WTO’ over ownership registry * GOVT SETS By NEIL HARTNELL Tribune Business Editor firstname.lastname@example.org
PAGE 2, Friday, July 13, 2018
THE MISSION OF A CORPORATE VISION W
E CELEBRATED 45 years of nationhood this week. I am certain that Bahamians with a heightened sense of national pride and identity used this time to reflect on our progress as a nation and, more specifically, the direction in which we seem to be heading. Similarly, companies must regularly take an inventory of their own condition, including updating their vision, mission and core values. Vision recasting for businesses that have not taken time to revisit this area can become crucial to their survival in this highly competitive and dynamic corporate environment. This week, we hope to inspire companies to
explore the value and importance of casting a vision. Here are the primary reasons: 1. IT DETERMINES THE COMPANY’S DIRECTION Smart business owners use this statement to remind their teams why the company exists, and what makes it successful. The vision statement serves as a “North Star” that keeps everyone clear on the company’s direction. 2. IT FOCUSES THE COMPANY’S FUTURE The vision is about a preferred future. Where will you be in one year? Three years? Five years? The vision tells us that what we are doing today will take us where we want to go in the future, and gives us a clearer picture of what that looks like.
IAN FERGUSON BY
3. IT PROVIDES A TEMPLATE FOR DECISION-MAKING A clear vision helps us set important boundaries that enable business
Bahamas’ Freeport law firm New York in litigation honour tourism base moves THE BAHAMAS Tourist Office in New York has relocated to a Fifth Avenue address. The office is a key part of the Bahamas’ marketing arm within the US, and serves the entire north-eastern corridor from Virginia to the Canadian border. The Bahamas’ presence in the US includes its New York office and three other offices based in the cities of Miami/Fort Lauderdale, Florida; Houston, Texas; and Atlanta, Georgia The New York office is now located at 551 Fifth Avenue, Suite 2040 New York, NY 10176.
A FREEPORTBASED law firm has won the Global Law Experts (GLE) award for Commercial Litigation Law Firm of the Year in The Bahamas – 2018. ParrisWhittaker and its partners, Arthur K Parris, Jacy Whittaker and Kenra Parris-Whittaker, in a statement hailed the award as highlighting their ongoing success. The GLE decision followed independent research and the input of more than 180,000 members of the global legal community, including bar associations, legal counsel, consultants and others. GLE is an online resource for identifying and recommending legal specialists according to location and expertise.
Jacy Whittaker said: “One of our primary motivators as a small law firm is staying competitive in our industry. Being recognised by our community is not something we take for granted. Being recognised on an international scale is even more encouraging. This award sees us as top of our litigation game, and as the year rolls on we know we’ll push even harder to exceed every accomplishment so far.” He added: “A win for us is a win for our country. We cannot truly be considered successful if what we do does not in some way immediately benefit our people. We look forward to continue serving our clients with an even more advanced level of achievement. We’re eager to see where that takes us.”
owners to delegate both responsibility and authority. Vision is to the company what a compass is to an explorer; a map to a tourist; a rudder to a ship; a template to a machinist. It provides a framework for thinking throughout the company. It provides the boundaries and guidelines you need to stay on the path to your preferred future. 4. IT FORMS THE BASIS FOR ALIGNMENT When a new employee is hired, it is critical that the new hire knows what the company does and where it is going. The “vision statement” forms the basis for alignment not only with the owner, but the entire team and organisation. Your team will all be on the same page when it comes to what
you do and why you do it, which leads to better effectiveness and efficiency. 5. IT WELCOMES HELPFUL CHANGE Many people are resistant to change because it causes us to feel insecure and, sometimes, out of control. However, if the vision is clear then team members are more likely to see the value of the change and how it helps the company accomplish its vision and mission. This will create a culture that welcomes change when warranted. 6. IT SHAPES STRATEGY Every business, and business owner, needs a strategy. But strategies must not be created in a vacuum. Instead of looking at what is new or what competitors are doing, and
trying to copy them, wise business owners create the most effective strategies possible to accomplish the vision their company has set out to achieve. 7. IT FACILITATES EVALUATION AND IMPROVEMENT If you have a clear, written statement of vision you will know exactly what to measure and how to measure it. • NB: Ian R Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at email@example.com
Friday, July 13, 2018, PAGE 3
ALIV ‘MORE THAN JUST A PHONE COMPANY’ By NATARIO MCKENZIE
Tribune Business Reporter
firstname.lastname@example.org ALIV is continuing to develop a “fairly comprehensive App platform”, an executive yesterday revealing that the mobile operator sees itself as “more than just a telephone company”. Gravette Brown, Aliv’s chief commercial officer, said the company is positioning itself as a telecommunications technology company, with
several Applications (Apps) developed with local businesses as well as in-house offerings. Her comments came as Aliv yesterday announced the launch of a final “touch point” or kiosk at the Lynden Pindling International Airport (LPIA) for persons traveling abroad. Ms Brown said: “What we have done over the last week is we have added a final human touch point for customers just before they leave. We know that
summer is the time when many Bahamians are travelling, and we want to make sure they know about all of our products, and they are getting what we know is the the best roaming service and package in The Bahamas today.” The kiosk was launched on July 1. “We have three kiosks available, but the one most relevant for those travelling to the US is right there at the top of the escalator as you exit Customs. You will be greeted by one
of our Aliv customer service angels to guide you through the process, and let you know what is the best package for you,” said Ms Brown. She added that the company, which now has roughly 110,000 subscribers, is tremendously proud of its achievements over the past two years. “Last week we announced that we have launched our new campaign. The pillars of that are community, innovation,
network. All underpinned by our customer service offering. We are moving very heavily into innovation. Aliv is not just a telephone company but a telecommunications technology company. We are developing - and have developed - a fairly comprehensive App platform,” said Ms Brown. She added that ‘The List’, the company’s loyalty rewards application, launched with 17 businesses and has now attracted 30.
“We literally get five businesses a week. That has been exciting,” Ms Brown said. The mobile operator has also partnered with local companies, Mobile Assist and Bahamas Ride, in promoting and developing their apps. “We are also developing a few apps in house. Last week we announced Aliv Discover, which is a cultural history/tourism app for both international and domestic customers,” Ms Brown said.
‘Banner’ year gives payment Letters to the Editor provider national coverage
Inhale cigar tourism for $3bn GDP boost Dear Editor, I read that new tobacco taxes and regulations are on the cards. My question is: Why is the government trying to kill off an amazing economic opportunity for The Bahamas? Some readers will no doubt be aware that the United States is currently in the process of reversing the long-standing exemption of premium cigars from the more hefty taxes and controls applied to other tobacco products. From now on, high-end cigars will be treated in the US like any other tobacco product and attract considerable sin taxes and regulations. Cigar dealers and manufacturers in the States say it will destroy their business. Rather than follow suit and kill off the enterprising manufacturers and sellers of these exclusive items, The Bahamas should recognise that we have a chance
here to corner a very lucrative market. Thousands of American tourists who crave Cuban cigars already purchase them in The Bahamas in great numbers, because these products are prohibited in the US. Meanwhile, millions of Americans regularly consume other premium cigars from Nicaragua, Honduras and the Dominican Republic. In 2015 alone, the US imported 315 million cigars from these three countries. But when the tobacco restriction hammer falls in Washington, which could be any day now, those Americans and their millions of cigars will need a new home. Where better than a friendly and attractive jurisdiction 90 miles off the coast of Florida? And that is not to even mention the large annual cigar conventions, attracting thousands from all over the world, that will have to
relocate from places like Las Vegas and currently have nowhere to go. Would Atlantis and Baha Mar not like to host these mega trade shows? We are talking about a $3bn industry here. We are talking about an influx of tens of thousands of additional wealthy visitors each year. We are talking about a whole new retail industry that could employ thousands of Bahamians. “Cigar tourism” could be an extremely significant boost for our number one industry. I urge the government: Don’t tax premium cigars to death. Make a special category for them, drop the already ridiculous 220 percent import tax significantly. Let’s show some vision and open the way for a new industry in The Bahamas to flourish. Sincerely, Ricky Johnson
FROM PAGE ONE platform is accounted for to the Central Bank,” Mr Malcolm said. “Every dollar that moves across our payment platform runs through our system where we evaluate and understand the transactions. We have invested a tremendous amount of money in this service. There is quite a lot that can be done on our platform. “We thought that if we tried to roll-out all of
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our services right now, it would be overwhelming. What we are doing is the same way we took Western Union and rolled it out, so that you can send money to anywhere in the world from one of our outlets. We are doing the same thing with our B-dollar platform, where you can send money to anywhere in The Bahamas. We are focusing right now, starting this month, on just our send money services.” Mr Malcolm added: “We
want Bahamians to be able to send money anywhere. You can go to any one of our stores and the other stores, and send money. There are a whole lot of services other than just sending money we can provide. “You can pay bills, you can make purchases, you can buy tickets, you can do top-ups. We will roll those out systematically. Once people get comfortable with us in sending money, the other services will be rolled out.”
NOTICE LISA CLARKE-ESFAKIS is no longer affliated with DOMEK ROLLE & DENNING LAW CHAMBERS
PAGE 4, Friday, July 13, 2018
Property tax basis ‘adds to social ills’ FROM PAGE ONE The structure is really unfair in the way it’s laid out.” Mr Maycock gave the example of two adjacent homes worth more than the $250,000 “floor”, bought at the same price and identical in every respect, except that one owner had invested in upgrading their property while the other had allowed theirs to deteriorate. He added that the former now faces an increased real property tax bill because the value of their residence has increased, while the latter’s may well have fallen due to lack of pride in their home. “You’re telling me the more we improve our property, neighbourhood and community, the more you’re going to tax us,” Mr Maycock explained of the present real property tax structure. “The government has this system that is a deterrent to keeping improving your property. “The more you improve your property, the more you take care of it, the more you’re going to be taxed and pay to the government. It’s contributing to a social ill. If a community deteriorates it affects everybody and everyone. It’s a cycle they don’t see that’s contributing to this breakdown. “The [real property tax] structure should be based on square footage of the home rather than its value and how
it looks. It should be a fixed figure for a gated community. I’m then encouraged to improve this home through the roof and enhance it, and not fear the government coming around and saying: ‘You look pretty; come and pay more taxes’.” Constructing a progressive, equitable property tax structure based on square footage and an appropriate “sliding scale” of tax rates certainly appears feasible. Wealthier persons, who generally have larger homes, could thus be taxed at a higher rate and contribute more. However, changing the basis of real property tax’s calculation is unlikely to resolve compliance levels that are traditionally low, and the government would want to ensure revenues generated by the existing system are maintained. Appraisers, too, would have to alter their method for calculating taxes due. Mr Maycock said stimulating home improvements would boost the construction and furnishings industries, with the increase in economic activity generating a rise in tax revenues collected by the government at “the back end” rather than at the front. “I think someone should take a fair look at it,” he added of his proposal, urging the government to dare to be different. “It makes economic sense, it’s feasible, and I think it would be a change.
NOTICE In the Estate of NEVILLE COURTNEY MAJOR late of No. 11 Bay Berry Drive, Imperial Park, in the Eastern District of the Island of New Providence one of the Islands of The Commonwealth of The Bahamas, deceased. NOTICE is hereby given that all persons having any claim or demand against the above Estate are required to send the same duly certified in writing to the undersigned on or before the 24th day of August, 2018, after which date the Executor will proceed to distribute the assets having regard only to the claims of which he shall then have had notice. AND NOTICE is hereby also given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned. HIGGS & JOHNSON Chambers Ocean Centre Montagu Foreshore East Bay Street P. O. Box N-3247 Nassau, Bahamas. Attorneys for the Estate of Neil Courtney Major
NOTICE Clarinda Assets Investments Limited In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Clarinda Assets Investments Limited is in dissolution as of July 5,2018
To say someone else is not doing it doesn’t mean we can’t. We can be the model country.” The Colonial Realty broker added that the commercial property market may take time to adjust to the revised transaction tax structure, as businesses were no longer able to treat three0quarters of the tax paid as a business expense and “offset” or “net it off” against the VAT output tax collected from consumers. “What getting rid of VAT does, especially for companies purchasing real estate now, is that it doesn’t give them a chance to recover the VAT as it’s no longer part of the process,” he told Tribune Business. “It’s definitely going to change companies’ approach to purchasing real estate, the number and type of transactions they’re going to engage in, as VAT is no longer recoverable. It’s probably going to cause a little lull. People need time to absorb and understand the full implications it’s going to have. “It’s probably going to put a little pause on it until everyone gets comfortable with it, what it means, and confident enough to move forward,” Mr Maycock added of the ten percent stamp duty. “It’s about confidence in the market, especially when change comes so suddenly. Persons have to go into a huddle. It’s definitely going to take some time for the market to absorb the impact, adjust to it and see how they stay in the game and how they stay alive.”
Governance reformers optimistic over fiscal ‘teeth’ FROM PAGE ONE need to get it in front of Cabinet. The timing of it seems to have run out. “I somewhat anticipated that might be the case. I knew it might run up against the end of the [parliamentary] session. I wanted to make sure they had considered our recommendations, but understood there might not be further time allocated for public consultation.” ORG, for one, previously warned that the Fiscal Responsibility legislation could be “ineffective” without tougher sanctions due to “The Bahamas’ poor history of non-compliance with similar laws”. Its concerns were echoed by another civil society group, Citizens for a Better Bahamas, the local Transparency International affiliate. “The way the original draft was written, the PAC could ultimately make a recommendation to the Ministry of Finance that they might consider a fine or penalty,” Mr Aubry said yesterday. “In his comments, the deputy prime minister said the PAC would be able to take advice and, if need be, if something was found to be out of order, to deal directly with the DPP. I didn’t see that in the original legislation. “He said he didn’t want to set something up for political retribution and I think that makes sense. To keep everything on board, use the Fiscal Council as
MULLDRIVE PARTICIPATION CORP. Company No. 500585 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that MULLDRIVE PARTICIPATION CORP. is in voluntary liquidation. The voluntary liquidation commenced on 19th June, 2018 and ALEXANDER GRETER of Brandschenkestr. 24, 8027 Zurich, Switzerland, has been appointed as the Sole Liquidator. Dated this 20th day of June, 2018 Sgd. ALEXANDER GRETER Voluntary Liquidator
much as possible.” ORG, in its feedback on that draft, had warned: “Throughout the bill there is a noticeable lack of reference to penalties or incentives to encourage compliance and rectify behaviour in the implementation of fiscal responsibility and discipline processes,” ORG said. “Where there is mention of penalty, said penalties are not defined or codified and are left to Ministerial discretion, allowing room for uneven or unfair application, or the perception thereof.... “Given The Bahamas’ poor history of compliance with similar reporting laws, such as Public Disclosure, there is concern that without methods of enforcement there is a risk that the Fiscal Responsibility Bill could ultimately be ineffective despite its thorough reporting mandates and methodically outlined goals.” Mr Aubry yesterday said “it’s a rather momentous occasion it’s come this far”, explaining that one of ORG’s reasons for being was to push for the creation and passage of a Fiscal Responsibility Bill that would hold governments accountable for irresponsible spending that drove higher deficits and debt. “One of our main priorities and focuses was to ensure the Fiscal Responsibility Bill comes to light,” he told Tribune Business. “This is very exciting for ORG; it’s at the precipice of passage and enactment. “There are a lot of components in the bill that speak to greater public awareness, facilitation and scrutiny, and more proactive driving of strategies to meet the fiscal goals of the government. These are key things. We don’t want to wait longer. Our hope is the bill is tabled and debated.” Mr Turnquest yesterday said he wanted this to occur next week if all goes
to plan, and Mr Aubry said ORG planned to distribute its concerns and recommendations on the bill to all MPs so they were aware of the issues and nations The Bahamas’ legislation was benchmarked against. He also praised the deputy prime minister’s willingness to engage in dialogue with civil society on the issue, suggesting it should act as a model “for all Cabinet ministers” when it came to bringing legislation forward. The Fiscal Responsibility Bill’s key targets require the government to slash the fiscal deficit to 0.5 percent from 2020-2021 onwards, cutting it from a sum equivalent to 5.8 percent of GDP in the 2016-2017 budget year. This means reducing it from near $700m to around $54m over a fouryear period. The bill’s “first schedule” sets out a “glide path” or “road map” for achieving this, acknowledging - as the IMF stated - that “significant fiscal adjustments” are needed over the next two budget years to hit this objective. To enable the public sector and wider Bahamian economy “to achieve the fiscal objective in an orderly manner”, and avoid unnecessary shocks, the bill calls for 2018-2019 and 2019-2020 deficits that “shall not exceed” 1.8 percent and one percent of GDP, respectively. The first target is what the government is going for this coming fiscal year, aided by the VAT hike. The bill also sets out a “long-term” target of reducing the government’s direct debt-to-GDP ratio from the current 58 percent to “no more than 50 percent”. The year by which this target is to be achieved has to be set out in the government’s “fiscal strategy report”, which must be submitted to Parliament no later than the third week of November each year.
NOTICE is hereby given that Garriel Augustin of Treasure Cay, Abaco, 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 6th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE MAKARIOS FOUNDATION In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, MAKARIOS FOUNDATION. is in dissolution as of July 4, 2018
ROGER NOETZLIN situated at Rue Jargonnant 2, 1207 Geneva, Switzerland is the Liquidator.
International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
ORIONBAY TRADING CORP. Company No. 1934545 (In Voluntary Liquidation)
FULLPLATE FINANCE S.A. Company No. 1934545 (In Voluntary Liquidation)
Bold Features Ltd. Company No. 1934545 (In Voluntary Liquidation)
NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that ORIONBAY TRADING CORP. is in voluntary liquidation. The voluntary liquidation commenced on 9th July, 2018 and RAHEL RUTH KIEBER of Dorfstrasse 7A, 9495 Triesen, Principality of Liechtenstein, has been appointed as the Sole Liquidator.
NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that FULLPLATE FINANCE S.A. is in voluntary liquidation. The voluntary liquidation commenced on 29th June, 2018 and RAHEL RUTH KIEBER of Dorfstrasse 7A, 9495 Triesen, Principality of Liechtenstein, has been appointed as the Sole Liquidator.
NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that Bold Features Ltd. is in voluntary liquidation. The voluntary liquidation commenced on 29th June, 2018 and RAHEL RUTH KIEBER of Dorfstrasse 7A, 9495 Triesen, Principality of Liechtenstein, has been appointed as the Sole Liquidator.
Dated this 10th day of July, 2018 Sgd. RAHEL RUTH KIEBER Voluntary Liquidator
Dated this 3rd day of July, 2018 Sgd. RAHEL RUTH KIEBER Voluntary Liquidator
Dated this 3rd day of July, 2018 Sgd. RAHEL RUTH KIEBER Voluntary Liquidator
Friday, July 13, 2018, PAGE 5
Private sector warned: ‘pay attention to WTO’ FROM PAGE ONE society”. With proposed competition legislation the latest effort released for public consultation, he said it was “safe to say” the Chamber will be providing feedback and recommendations on the initial draft. Mr Pickstock told Tribune Business: “There have been so many draft bills produced; I’m up to 14-15 different bills for this year. “Most are geared towards bills required to accede to the WTO. That gives me an indication that the government is preparing to accede to WTO. There’s no question of whether the government intends to join by the end of 2019. That’s clear; it’s a statement the Minister of Financial Services [Brent Symonette] made. How that will look is anyone’s guess.” With the government seemingly set on its WTO accession course, Mr Pickstock said the Chamber’s planned empirical analysis of the impact this will have on key sectors of the Bahamian economy is assuming ever-greater importance. A terms of reference (TOR) for this analysis is now being prepared by a trade consultant, and Mr Pickstock - a partner at the Glinton, Sweeting & O’Brien law firm - said the research was vital “to ensure we are getting the best out of the WTO”. He added: “If it’s the government’s intention to go ahead we want to know we are getting the best out of our negotiations. If they intend to go full on, we want to be in position to influence that process. “It’s important for the government to continue to hold these public forums to review legislation and have discussions, so that people can understand what it means. It needs to be at a level that the ordinary man in the street can understand. Normally, these things go over the head of
ordinary citizens.” Mr Pickstock said both private sector and civil society groups had “a duty” to assist the government with WTO-related education, and suggested all “can do more”. “The private sector needs to pay more attention to these draft bills and legislation coming out,” he told Tribune Business, “because they are coming fast and furious. They need to pay more attention; you are absolutely correct. “I just think the dialogue and conversation should be better coming from the government side. That’s why I think a lot of people are confused and almost don’t know what is happening because the government has been patchy, at the very best, in disseminating information. It’s not been clear. “One of the things I previously said was that they [the government] haven’t made the case. That’s the concern,” Mr Pickstock continued. “I’m not saying this is my view, but that’s the word on the street among the business community. “What I’m hearing, and the Chamber is hearing, is simply that the case has not been made. There needs to be clearer communications from the government. There needs to be a road map, and that road map needs to be shared, so people understand the process for The Bahamas and what steps we as a country will be taking. “It’s all about communication. When we communicate and people understand there’s less friction. When people feel there is something pushed down their throat, there will be resistance. Communication is key.” Suggesting that proposed WTO-related reforms should have been implemented long before the accession arose, Mr Pickstock added: “People are still asking the question. That is the fundamental
question people are asking: What are the benefits of WTO? “I’m not saying that to be controversial, I’m not saying that to make things difficult for the government. It’s a legitimate question. What are the benefits? If you tell me the benefits are an improved business environment because we have to pass this legislation, in my view these things could or should have been done without any discussion of WTO. “They should have been done because we want to be a progressive society or country, not necessarily because of government’s intention to join the WTO. We want to be progressive. Ease of business should be one of our top priorities, but not because of WTO.” Mr Pickstock said Brent Symonette, minister of financial services, trade and industry and Immigration, had confirmed that The Bahamas’ latest WTO “offers” were before the Minnis Cabinet for its approval. The “offers” detail The Bahamas’ negotiating position, and which industries it is prepared to liberalise/ open up, and to what extent, plus those sectors where it is seeking “reservations” or exclusions to protect local entrepreneurs and other interests. It will also outline The Bahamas’ proposals to eliminate and/or reduce certain import tariffs. These are seen as “barriers to trade” under rules-based regimes such as WTO, and this nation will likely have to replace $100-$200m in lost revenue. Full WTO membership is a critical element in the government’s plan to open up the Bahamian economy through liberalisation and deregulation, in a bid to attract new industries and businesses that will drive economic growth in decades to come. The WTO is the rules-setting body for global trade,
meaning that The Bahamas and its entire private sector will have to “play by the rules of the game” should this nation accede to full membership. The Bahamas currently has “observer” status. Bahamian businesses will also have to become familiar with terms such as “Most Favoured Nation”, “national treatment” and “reciprocity”, which all relate to non-discrimination and will mean that this nation cannot - in many instances - treat local businesses and investors more favourably than foreignowned ones. Many sceptics also believe that full WTO membership will erode Bahamian sovereignty, and the ability of Parliament to set laws in the national interest, as these could be challenged and overridden by disputes resolution panels if they are non-compliant with international trade rules. Others, though, believe WTO membership could open up new markets for Bahamian exports, while also making this nation more attractive to new industries and foreign direct investment (FDI) able to take comfort from greater certainty surrounding this nation’s business climate. The Bahamas remains the only nation in the Western Hemisphere that is not a full member of WTO. There was an 11-year gap between The Bahamas serving notice of its intent to join and the second meeting of the Working Party, made up of nations interested in trading with The Bahamas, which this nation will have to negotiate terms of its membership with. The leading members of this Working Party will thus be the US, European Union (EU), CARICOM and individual Caribbean states, and China. The Bahamas has already submitted its Memorandum of Trade regime document, outlining
its current trade regime and laws/regulations, but talks with the Working Party and information exchanges appeared to cease in 2013. The Bahamas’ is the longest-running WTO accession, with this nation having first served notice of its intention to seek full membership in
2001 - 17 years, and four administrations, ago.
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A Small Company is looking for a Manager to manage and oversee its operations and sales. Requirements • BS/MS degree in business administration or related field • Proven working experience as a Manager with a minimum of 5-7 years • Successful previous experience as a sales representative or sales manager, consistently meeting or exceeding targets • Strong business sense and industry expertise • Excellent mentoring, coaching and people management skills • Interpersonal skills to maintain and develop relationships with management and customers General Responsibilities • Achieve growth and hit sales targets through successful management • Design and implement strategic business plan that expands company’s customer base and ensure a strong presence within the market • Build and promote strong, long-lasting customer relationship by partnering with them and understanding their needs. • Identify emerging markets and market shifts while being fully aware of new products and competition status • Maintain production to meet all schedules • Manage Staff • Provide technical support to customers and support staff • Foster a positive team environment and assist coworkers as required • Comply with all company policies and procedures • Prepare Budget and Marketing Plans Instructions to applicants • Please send the below listed documents via email to email@example.com - Resume including Passport Photo - 3 Character Reference Letters • Subject of email “Vacancy- Manager Position” • Only those applicants who are shortlisted for interview will be contacted • Deadline for submission – 5pm, Friday July 13th 2018.
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A competitive compensation package will be commensurate with relevant experience and qualification. Fidelity appreciates your interest, however, only those applicants short listed will be contacted.
PAGE 6, Friday, July 13, 2018
Bahamas targets ‘leadership’ over ownership registry FROM PAGE ONE
to crystallise. “I don’t necessarily subscribe to it because I don’t believe we should be waiting for another one [global regulatory initiative] to drop. “We should be proactive, understand what the environment looks like, and from my point of view be aggressive in establishing a position in that space. We’ll have discussions over the summer and see where we end up. “But government’s position is that we want to take leadership in the industry and be proactive in our position, rather than someone telling us what it’s going to be.” The Register of Beneficial Ownership Bill has already been tabled in Parliament, but has not moved on to the second reading and debate as the government obtains financial services industry feedback and comment. Yet there have already been calls for The Bahamas to delay moving on legislation to create a centralised beneficial ownership registry - albeit one that is private, and not accessible to ordinary members of the public. Ryan Pinder, a former financial services minister, has already urged the government to shelve the legislation “for now” amid fears it could “destabilise” the Bahamian financial services industry.
Addressing a Bahamas Financial Services Board (BFSB) sponsored seminar, he warned that a central Beneficial Ownership Registry represented “a major shock” for an industry and client base already reeling from the imposition of numerous international regulatory initiatives within just a few years. He added that the legislation would likely prove especially alarming for the high net worth Latin American clients that The Bahamas is increasingly targeting, as they had legitimate reasons for confidentiality given the often-high level of crime and political instability in their home countries. Disclosure of their wealth - via hacking or data leak from a Bahamian ownership registry - could place their lives and their families in jeopardy. Mr Pinder thus urged the government to delay the Beneficial Ownership Registry until global standards on the issue further evolved, arguing that The Bahamas should see how UK legislation that forces public beneficial ownership registries on its overseas territories - Bermuda, Cayman Islands and the British Virgin Islands (BVI) - by 2020 plays out. The former minister’s position also received support from fellow attorney Michael Paton, with whom he co-heads the
industry working group responding to the government’s legislative initiatives. Mr Paton, too, suggested passage of the bill should be delayed to enable The Bahamas to focus on avoiding another EU “blacklisting”. “The Beneficial Ownership Register is not a 2018 criteria,” he told Tribune Business. “I would say hold off on that. I would say prioritise ‘ring fencing’ and substantive economic presence. That’s what we have to deal with right now.” The Bahamas must comply with the latter two demands by year-end 2018 or, once again, be exposed to EU “sanctions” and blacklisting. And it also needs to meet the requirements set by the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. All are designed to prevent tax avoidance by multinational corporations, and Mr Turnquest conceded to Tribune Business that the government faces a “busy” summer that will involve drafting legislation to meet EU/ OECD demands; consulting with the financial services industry; making sure the legislation “lines up” with international requirements and is “harmonised”; and talking to the EU/OECD to ensure The Bahamas “meets the standard”. “We are still on that track,” the deputy prime minister said. “It is critical
we meet these commitments to demonstrate our obligations on tax information exchange and transparency. “In the last couple of months we’ve been heavily engaged with these agencies [EU/OECD] in forming our administrative plans and getting guidance on potential legislation. This really has been a ‘try as you go’ kind of deal. “We have been in constant dialogue with them, attending all the consulting conferences to ensure we have a good understanding of the conditions from their side; what makes a good piece of legislation and regulations. We believe, at the end of the day, we will end up with complete legislation.”
INTENT TO CHANGE NAME BY DEED POLL The public is hereby advised that I, DAWN FARRINGTON of Nassau Village, P.O.Box CR56773, New Providence, Bahamas intend to change my son’s name from MARLEY ORYON BRYANT DEVEAUX to MARLEY ORYON BRYANT FARRINGTON. If there are any objections to this change of name by deed poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this notice.
FIDESCE SERVICES CORP. Company No. 1000579 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that FIDESCE SERVICES CORP. is in voluntary liquidation. The voluntary liquidation commenced on 19th June, 2018 and ALEXANDER GRETER of Brandschenkestr. 24, 8027 Zurich, Switzerland, has been appointed as the Sole Liquidator. Dated this 10th day of July, 2018 Sgd. ALEXANDER GRETER Voluntary Liquidator NOTICE SHEM’K OVERSEAS CORPORATION ________________ Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the abovenamed Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 18th day of June, 2018.
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NOTICE is hereby given that MARC VALCIN of Podoleo Street, 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 6th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Jose Inácio Cortellazzi Franco Liquidator of SHEM’K OVERSEAS CORPORATION
MARKET REPORT THURSDAY, 12 JULY 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,982.05 | CHG 0.34 | %CHG 0.02 | YTD -81.52 | YTD% -3.95 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.00 1.48 0.19 4.00 9.12 6.60 5.30 11.00 2.71 1.77 8.21 6.21 11.50 7.29 13.67 12.51
52WK LOW 3.50 17.43 7.50 3.32 0.90 0.12 3.00 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50
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
1050.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A 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
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
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
CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 22 (Series B) +
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) 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
MUTUAL FUNDS 52WK HI 2.15 4.16 2.00 179.39 157.58 1.55 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.49 1.62 1.58 1.07 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.10 6.14 4.13 10.90 2.73 1.70 7.84 6.10 11.50 6.32 3.65 12.51
CLOSE 4.45 17.43 9.09 4.00 1.01 0.18 3.00 9.10 6.14 4.13 10.90 2.81 1.75 7.90 6.10 11.50 6.32 3.65 12.51
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.08 0.05 0.06 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 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
LAST SALE 100.00
108.68 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.02 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
108.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
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
800 200 300 18,000 200
EPS$ 0.361 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.610 0.277 0.631
DIV$ 0.080 1.130 0.000 0.230 0.000 0.010 0.000 0.320 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580
P/E 12.3 18.7 N/M 14.1 N/M N/M -3.0 14.3 10.7 24.2 17.4 27.5 7.6 N/M 11.2 16.9 10.4 13.2 19.8
YIELD 1.80% 6.48% 0.00% 5.75% 0.00% 5.56% 0.00% 3.52% 3.58% 2.91% 5.69% 2.14% 4.00% 1.06% 5.25% 4.35% 3.16% 3.29% 4.64%
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% 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%
NAV 2.15 4.12 2.00 179.39 153.02 1.55 1.69 1.64 1.09 7.15 8.14 6.41 11.26 11.68 10.24
YTD% 12 MTH% 1.55% 4.09% -0.45% 4.34% 0.84% 2.31% 0.39% 5.05% -0.25% 4.57% 1.29% 4.18% -0.61% 2.84% 1.02% 3.84% -0.87% 1.82% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%
Notice to Holders of Depositary Receipts DIVIDEND NOTICE
MATURITY 19-Oct-2022 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 NAV Date 31-May-2018 31-May-2018 31-May-2018 31-Mar-2018 31-Mar-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018 30-Apr-2018
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
EMERA INCORPORATED (“Emera”)
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
A dividend of CAD $0.14125 per Emera depositary receipt (CAD $0.565 per common share of Emera) will be payable on or about August 15, 2018 to depositary receipt holders of record as at August 1, 2018. Dividends will be subject to applicable withholding tax.
NOTICE NOTICE is hereby given that RENALD CHANAN of Ceiling Drive, South Beach, 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 13th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Friday, July 13, 2018, PAGE 7
Thousands rally in Stocks rebound; technology rally Ohio for solution leads Nasdaq to record high to pension crisis NEW YORK Associated Press
COLUMBUS, OHIO Associated Press THE HOUSE. Food on the table. Survival. Those are some of the ways workers and retirees who demonstrated in Ohio’s capital on yesterday described the pension payments they are fighting to protect. “It’s everything, mostly, because you worked all of them years,” said Duane Ross, 61, of Cadiz, who spent 30 years in the mines. Ross was among thousands of unionised coal miners, iron workers, teamsters, bakers, tobacco workers, millers and others who descended on the Ohio Statehouse to rally ahead of a congressional field hearing in Columbus. They brandished signs saying “Save Our Pensions” and wore T-shirts that reminded politicians, “We Are Everywhere”. At issue are the financial effects on retirees, workers, small businesses and taxpayers of the potential failure of pension plans guaranteed by the federal government. “We’re not asking for a handout from the government. We’re asking for a loan,” said retiree Al Hall, 78, who rode in overnight by bus from Illinois. “They bailed out all of the other companies. They should bail us out, too.” Ohio’s two US senators — Democrat Sherrod Brown and Republican Rob Portman — will chair today’s hearing of the House and Senate Joint Select Committee on Pensions. Brown championed creation of the committee and calls the fifth public meeting in Ohio perhaps its most important to date. “What Washington doesn’t always understand is that these folks sat at the
negotiating table; they gave up wages over the last several decades today so that they’d have retirement security in the future,” Brown said in a weekly call with reporters on Wednesday. Some 60,000 workers in Ohio and 1.3 million nationally are facing deep pension benefit cuts unless shortfalls are addressed in multi-employer pension plans guaranteed by the federal government. Current workers also would lose benefits toward which they’ve been contributing. The Teamsters’ Central States Pension Fund faces unfunded liability of $17.2bn, the largest among the funds. Other threatened pension plans face a combined $19.2bn shortfall. More than 300 such plans across the country are at risk of insolvency. The pensions committee has been tasked with coming up with a solution by November that Congress could vote on before the end of the year. Brown is up for re-election Nov 6. He faces Republican US Rep Jim Renacci, of Wadsworth. Brown said that if a solution isn’t found, affected retirees will face pension benefit cuts of up to 70 percent, and that many Ohio small businesses will be badly damaged, or even go bankrupt, because of being unable to meet their pension liability. “After all of that devastation, all of those lives upended, taxpayers will still be on the hook for tens of billions of dollars to prop up the Pension Benefit Guaranty Corporation,” he said. The Congressional Budget Office estimates the cost of backing the corporation’s debts, should it fail, at $101bn over 20 years.
TECHNOLOGY companies soared yesterday as major US stock indexes recovered the ground they lost a day earlier. The Nasdaq composite closed at another all-time high. Big names like Apple and Microsoft and chipmakers including Intel all made big gains as investors remain optimistic about the technology sector even though much of the market has been shaken by escalating tensions between the US and its trading partners, especially China. Banks will begin reporting their second-quarter results this morning. Investors expect another round of strong profit growth for the whole market, but they’re especially optimistic about technology companies. They will announce their earnings later this month. “Tech has been there for them through all of these ups and downs,” said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. “They’re a good wingman for investors, and that’s why investors are sticking with them.” The S&P 500 index rise 24.27 points, or 0.9 percent, to 2,798.29. The Dow Jones Industrial Average rose 224.44 points, or 0.9 percent, to 24,924.89. The Nasdaq jumped 107.30 points, or 1.4 percent, to 7,823.92. Its last record came on June 20. The Russell 2000 index of smaller-company stocks added 6.61 points, or 0.4 percent, to 1,690.28. Industrial companies also regained much of the ground they lost on Wednesday, but energy companies and basic materials makers failed to rally. Defense contractors climbed after President Donald Trump advocated for more defense spending in the
TRADER PATRICK CASEY, centre, works on the floor of the New York Stock Exchange. Stocks are opening higher as technology companies rally. Photo: Richard Drew US and Europe. Several European leaders said NATO spending plans haven’t changed. Software maker CA made the biggest gain in the technology sector soared after it accepted an offer from Broadcom worth $18.9bn, or $44.50 per share. Its stock rocketed 18.7 percent to $44.15. Broadcom investors expressed their disapproval of the deal, which involves Broadcom taking on $18bn in debt. The stock dropped 13.7 percent to $209.98. Broadcom’s market value fell by $14.4bn. The merry-go-round of potential media deals continued as Comcast offered to buy European pay-TV company Sky for $34bn a day after Twenty-First Century Fox increased its own offer for Sky. Fox already owns part of Sky, and while it tangles with Comcast, Comcast and Disney are also trying to buy Fox itself. Fox recently accepted Disney’s $71bn offer. The New York Times reported yesterday that Comcast will focus on Sky and end its pursuit of Fox. Sky’s stock rose 3.4 percent in London. In the US, Comcast rose 2.3 percent to $34.55 and Fox fell 0.9
percent to $47.38. Disney gained 0.2 percent to $108.25. CVS Health rose one percent to $67.99 and Aetna gained 1.9 percent to $191.09 after Bloomberg News reported that the Department of Justice won’t try to stop CVS from buying Aetna. AT&T fell 1.3 percent in aftermarket trading after the Justice Department appealed a court ruling that allowed AT&T to buy Time Warner. Papa John’s International jumped 11 percent to $53.67 as founder John Schnatter resigned as chairman after confirming a report that he had used a racial slur during a conference call in May. Stifel analyst Christopher Cull said Wall Street has viewed the company as a potential sale target for some time and investors feel that’s more likely without Schnatter in charge. Since Schnatter is still is largest shareholder, Cull doesn’t think that will happen. Schnatter owns about 29 percent of the company’s stock, and the value of his stake jumped by $50.5m to yesterday to about $507m in total. Stocks around the world slumped on Wednesday
after the Trump administration released a list of $200bn in imports from China that it could hit with a ten percent tax. China said it would retaliate if the tariffs take effect, and the dispute could impair global economic growth. Stocks overseas took bigger losses than US indexes did and they made smaller recoveries yesterday. In Paris, the French CAC 40 climbed one percent. Germany’s DAX added 0.6 percent and the Britain FTSE 100 rose 0.8 percent. Tokyo’s Nikkei 225 gained 1.2 percent and Hong Kong’s Hang Seng gained 0.7 percent. Seoul’s Kospi added 0.2 percent. Benchmark US crude dipped 0.1 percent to $70.33 a barrel in New York while Brent crude, used to price international oils, rose 1.4 percent to $74.45 per barrel in London. US crude dropped five percent on Wednesday and Brent nosedived almost seven percent as investors worried that the trade conflict will hurt the global economy. They also expect oil supplies to increase after Libya announced that it will start exporting oil again. Wholesale gasoline added 0.5 percent to $2.07 a gallon. Heating oil rose 1.1 percent to $2.12 a gallon. Natural gas fell 1.1 percent to $2.80 per 1,000 cubic feet. Bond prices ticked higher. The yield on the ten-year Treasury note fell to 2.85 percent from 2.86 percent. Gold rose 0.2 percent to $1,246.60 an ounce. Silver gained one percent to $15.98 an ounce. Copper rose 1.2 percent to $2.78 a pound after it fell to an 11-month low on Wednesday. The dollar rose to 112.46 yen after it jumped to 112.04 yen a day ago. The euro edged down to $1.1670 from $1.1674.
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Fed Chair Powell says economy in ‘good place’ at moment WASHINGTON Associated Press FEDERAL Reserve Chairman Jerome Powell said yesterday that the economy is in a “good place” at the moment with low unemployment and inflation rising toward the Fed’s optimal range. But he says rising trade tensions and higher tariffs could end up being a drag on growth. In an interview for American Public Media’s “Marketplace” radio program, Powell gave an upbeat assessment of the economy, in remarks signaling that the central bank’s current pace of gradual interest rate increases should continue. The Fed has raised rates twice this year and is projecting two more rate hikes before the year is over. “I think the economy’s in a really good place,” Powell said, noting that unemployment, currently at four percent, is at its lowest point in nearly two decades. “This strengthening, tightening labour market that you know we’ve been supporting with low interest rates has really been working for American workers and families.”
FEDERAL Reserve Chair Jerome Powell arrives to a news conference after the Federal Open Market Committee meeting, in Washington. Powell says the economy is in a “good place” at the moment with low unemployment and inflation rising toward the Fed’s optimal range. But he says rising trade tensions and higher tariffs could end up being a drag on growth. Photo: Jacquelyn Martin/AP Powell said that inflation, after a prolonged period of falling below the Fed’s two percent target, has in recent months finally touched that goal, although he cautioned that he did not want to declare victory yet on the price front. “Inflation has very gradually moved up and it’s now just touching two percent. So we’re really close to our target,” Powell said.
“I wouldn’t say we’ve fully achieved it yet. We’re not declaring victory there. We want inflation to be symmetrically around two percent, so just kind of reaching up and touching it once doesn’t fulfill that goal.” On trade, Powell said that Fed officials are hearing a “rising level of concern” from business executives following the tough talk from the Trump
administration, which has imposed penalty tariffs on a number of countries in an effort to open markets for US goods. The effort has provoked retaliation, and now the world’s two biggest economies, the United States and China, are in a full-blown trade war. Powell said the administration has said it is trying to ultimately achieve lower tariffs by forcing countries to reduce barriers to US goods. He said that would be a good thing, but if the current trade tensions wind up with higher tariffs on a wide range of goods and services, “that could be a negative for our economy”. The Fed does not have a role in trade policy but will take into account the results of the trade battles in determining where to set interest rates, he said. Powell signaled that the Fed expects to keep raising rates at the gradual pace it has been following since it started to boost rates after seven years of keeping them at a record low near zero. It raised rates once in both 2015 and 2016 and then three times last year and so far two times this year. “I’m very pleased with the results,” Powell said.
“We’re returning rates to a more normal level. If we leave rates too low for too long, then we can have too high inflation or we can have asset bubbles or housing bubbles. If we move too quickly, then we can unintentionally put the economy into a recession .... So we’re always balancing these two things.” Powell was tapped by President Donald Trump to succeed Janet Yellen in February as Fed chairman after Trump decided not to offer Yellen a second term. Trump during the campaign was highly critical of the Federal Reserve, accusing officials of keeping rates at ultra-low levels to favour Democrats. While Trump has not attacked the Fed since becoming president, Larry Kudlow, his chief economic adviser, said in a recent interview that he hopes the Fed would raise interest rates “very slowly”, comments that were seen as breaking more than two decades of precedent where the White House has refrained from commenting on Fed policies. But Powell said he was not concerned that the Trump administration might
try to exert pressure to influence the Fed’s actions on interest rates. “We have a long tradition here of conducting policy in a particular way and that way is independent of all political concerns,” Powell said. “We do our work in a strictly nonpolitical way, based on detailed analysis.” Powell, who joined the Fed as a board member in 2012, has been chairman for five months now. He announced in June that he planned next year to double the number of press conferences the chairman holds from four to eight, one after each meeting the central bank holds. He said his decision to grant the interview on yesterday was part of an effort to make the central bank more transparent. “I feel that we have an obligation to explain ourselves as clearly as possible. The things that we do affect everyone,” he said. “We’re shifting our focus a little bit to you know, address ... the American people more generally and try to explain what we do, why we’re doing it and how we carry out the important jobs that Congress has given us.”
FDA to more aggressively tackle disruptive drug shortages By LINDA A JOHNSON Associated Press The US Food and Drug Administration said yesterday it wants to more aggressively fight medication shortages that have led to rationing of some drugs and disrupted patient care. The agency announced plans for a task force to find ways to improve the supply
of crucial drugs. It’s a new approach for the drug regulator, which has very little control over drugmakers’ operations. It generally can’t act until drugmakers tell the agency that shortages are imminent or that it will stop making a drug. FDA Commissioner Dr Scott Gottlieb said the agency will ask Congress for the authority to
allow it to intervene. He said he has a clear idea of changes needed in the FDA’s powers, regulations and drug reimbursement policies. “I feel we have a mandate to do this,” Gottlieb told The Associated Press, citing a recent letter from about 200 members of Congress urging changes and offering support.
Most shortages involve low-profit generic pills and injections that are hospital workhorses, including injected painkillers, old cancer drugs and saline solution needed to give IV medicines. Many are made by only a few companies, so when production problems occur, the few other drugmakers can’t cover the shortfall. Last year,
hurricanes knocked many drug factories in Puerto Rico and southern states out of commission for long stretches. While the number of drugs in shortage is down from the peak several years ago, many shortages are lasting much longer, sometimes well over a year. Currently, FDA inspectors can work with a
manufacturer to quickly resolve quality problems that have shut down production. The agency also works to find alternate suppliers and expedite approval for them to sell that medicine. A hearing is planned for the fall to get input from patients, manufacturers and others.