business@tribunemedia.net
WEDNESDAY, AUGUST 2, 2017
$4.00 RESIDENCY ‘UNCERTAINTY’ TURNS DEVELOPER OFF NEW PROJECTS By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN developer yesterday warned Immigration-related “uncertainty” is threatening to deter him from initiating further multi-million dollar projects once his current crop is completed. Jason Kinsale, the developer behind properties such as Balmoral, ONE Cable Beach and Thirty|Six on Paradise Island, told Tribune Business he needed “more certainty” on the permanent residency investment threshold and process. He added that the nine-12 months being taken to process permanent residency applications was simply “too long” for his potential client base, giving them a negative impression of the Bahamas. And Mr Kinsale said there had been “rumours” that the Minnis administration was discussing increasing the permanent residency threshold for See PG B4
Balmoral creator seeks threshold, timeline clarity ‘Responsible Immigration’ key to Bahamas growth Buyers ‘not beating down door’ to this nation
LESS than 50 per cent of mortgage applications were approved during the 2017 first quarter, highlighting the Bahamas’ ongoing housing crisis and borrower difficulties in qualifying for credit. The Central Bank’s research department, in a presentation accompanying its June economic report, revealed that bank approvals for home loans are significantly below those for consumer and commercial credit. All three loan categories enjoyed a plus-80 per cent approval ratio in the 2015 third quarter but, since then, those for mortgages tailed off steadily to hit 50 per cent in the 2016 second quarter. While mortgage approvals temporarily recovered to near-70 per
MORE than $215 million worth of deficit spending had to be incurred during the final two months of the 2016-2017 fiscal year to hit the Minnis administration’s $500 million projection. Central Bank data, published yesterday, showed that the fiscal deficit was relatively contained just 10 days prior to the May general election, standing at $284.7 million. While this represented a 14.3 per cent, or $35.5 million, increase year-overyear, it again suggests that
$4.06
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A MULTILATERAL lender says the Bahamas “poses a unique challenge” for it, with surface-level wealth “masking significant income inequality” where almost half of those living in poverty are the ‘working poor’. The Inter-American Development Bank, in a June 2017 report, reveals just how this nation has stagnated from a social, economic and equality perspective since the 21st century began.
Working poor 45% of those in poverty GDP growth ‘barely’ above population post-200 External reserves ratio ‘lower than desired’ Kickstarting a review of its Bahamas country programme for the past seven-and-a-half years, the IDB said household income distribution had undergone
“a significant deterioration” since 1999, with the poverty rate jumping from 9.3 per cent in 2001 to 12.8 per cent in 2013. “The Bahamas poses a unique challenge to the Bank,” the IDB said. “Although the country is fairly prosperous, its high levels of human development and per capita GDP1- both among the highest of IDB borrowing member countries - mask important structural, economic and social challenges faced by a developing country, including significant income inequality, high unemployment, a weak skills base, an inefficient
public sector, and inadequate infrastructure. “Although the poverty rate is among the lowest in the region, it has been growing in the context of inadequate social safety nets....., with 45 per cent of the poor gainfully employed but not earning enough to sustain their families. The Family Islands have a disproportionate share of the poor, with Eleuthera having a rate of 17.3 per cent, and Abaco and Andros, 20.3 per cent.” With the Bahamas increasingly susceptible to climate change and natural disasters, the IDB said See PG B3
EX-FNM chair blasts ‘nonchalance’ towards minority shareholders By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net JASON KINSALE
Private construction starts down 36% in Q1 Matthew drove 64% ‘spike’ in loan applications Private sector credit down $17m for half-year cent in last year’s third quarter, they again plummeted during the first three months of 2017 to below 50 per cent. In contrast, commercial bank approval rates for commercial and consumer loans were 90 per cent and 80 per cent, respectively, for the 2017 first quarter. The Central Bank data suggests that Bahamian See PG B5
$215m deficit spend in final two months By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
$4.18
IDB: Bahamas ‘poses very unique challenge’
Banks approve fewer than 50% of mortgages By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
$4.05
To hit Govt’s $500m full-year target GB air arrivals drop 41% in Q1 BPL fuel charge up 23% in 3 months the Christie administration had seemingly made progress in containing its deficit following Hurricane Matthew. Based on previous Central Bank reports, which pegged the end-March See PG B5
DARRON CASH
A FORMER FNM chairman yesterday blasted the “nonchalant” attitude of many public companies to respecting minority shareholder rights, especially the timely disclosure of material information. Darron Cash, also an ex-senator, told Tribune
Business there was “a pervasive level of disinterest” in ensuring retail investors were provided with details they were entitled to by law and market rules. A Bank of the Bahamas shareholder (BOB), he, too, confirmed he had yet to receive any materials relating to today’s annual general meeting (AGM) - in common with the See PG B4
Urges: ‘Time for the system to change’ Cash another yet to receive BOB docs Some investors e-mailed after Tribune article
PAGE 2, Wednesday, August 2, 2017
THE TRIBUNE
Scotia mortgage seminar attracts strong interest SCOTIABANK’S Thompson Boulevard branch attracted a full audience on July 26 for the first of two mortgage seminars. Attendees were provided with information from real estate, law, appraisal and land surveying professionals, who answered their questions and gave insights into different areas of the home-buying process. “We know customers have questions, and the number of persons who attended the seminar speaks to that,” said Sandevar Sandi, Scotiabank’s Thompson Boulevard branch manager. “Scotiabank is an advocate for providing customers with not only the tools to make them better off, but also the banking advice that helps them take advantage of what we can offer. These seminars are one avenue Scotiabank is using to share this knowledge.” Scotiabank representatives provided information on the process new and transferring mortgage applicants must follow. Subjects
covered included changes to the first-time homeowner VAT and Stamp Duty exemptions. “A mortgage is not a one-off investment; it’s a substantial milestone which must grow and change with your needs,” said Nakera Symonette, Scotiabank’s senior manager for marketing and public relations in the northern Caribbean. “These seminars are an opportunity for anyone with a mortgage, or looking to get a mortgage, to obtain valuable information and contacts. If you’ve been hesitant about coming in to speak with someone or just haven’t had the time, these seminars are a no pressure environment to get the answers you need without asking a single question.” The second and final seminar in the series will take place on Thursday, August 3 in the East Bay Street branch at 6 pm. Persons interested in attending are encouraged to RSVP via rachael.allahar@scotiabank. com as space is limited.
SEMINAR panelists (LR): Shannelle Bethell, founding member of Mitre Court; Carlyle Bethel, licensed broker; Ava Dean, Scotiabank personal banking officer; Nakera Symonette, Scotiabank’s senior marketing manager; Ambrosine Huyler, Scotiaban’s senior corporate and legal services manager; and Donald Thompson, member of the Land Surveyor’s Board.
(L-R) Door prize winner Catherine Pinder receives a gift from Nakera Symonette, Scotiabank’s senior marketing manager
(L-R) Door prize winner Lincoln Russell receives a gift from Nakera Symonette, Scotiabank’s senior marketing manager.
Culinary team in visit to Governor-General EXECUTIVES from the Bahamas Hotel and Tourism Association (BHTA) joined National Culinary Team representatives and the team’s sponsors to pay a courtesy call on Governor-General, Dame Marguerite Pindling. The gathering was in honour of the National Culinary Team’s recent success at the premier Caribbean Culinary Competition, Taste of the Caribbean. The chefs are sponsored by their respective employers, who represent a wide cross-section of hotel properties and institutions in the Bahamas. They include the University of the Bahamas’ CHMI; Atlantis; Baha Mar; Courtyard Marriott; Sandals Royal Bahamian;
and the One and Only Ocean Club. In addition to the chefs’ corporate sponsors, the National Culinary Teams’ participation is made possible through partners and sponsors such as the Ministry of Tourism; Cable Bahamas (Rev On); Sandals Royal Bahamian; Bahamian Brewery (Sands Beer); Bahamas Food Services; Bahamasair; Betty K Shipping; Cassava Grill; and Manuelo’s Lettuce Eat Fresh. Front row, pictured from L to R: Junior Chef Kenria Taylor; Berkley Williamson, Bahamian Brewery; Dr Linda Davis, University of the Bahamas; Carlton Russell, president, Bahamas Hotel and Tourism Association; Dame Marguerite Pindling, governor-general;
Dr Rodney Smith, president, University of the Bahamas; Glaister Williams, Sandals Royal Bahamian; Charlotte Knowles Thompson, executive administrator, BHTA; Chef Mario Adderley, team manager. Back row, pictured from L to R: apprentice chef Ryan McIntosh, Sandals Royal Bahamian; Chef Kevyn Pratt, One & Only Ocean Club; Chef Tamar Rahming, Baha Mar; Elise Carter and Ianta Stubbs, BHTA interns; Chef Jamal Petty, Courtyard by Marriott; mixologist Gino Wilson, The Cove at Atlantis; Chef Asteir Dean, Baha Mar; Chef Owen Bain, Cassava Grill, Rui Domingues, BHTA and Courtyard by Marriott
THE TRIBUNE
ALBANY: NO ONE’S INVESTED MORE EQUITY IN BAHAMAS By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE $1.5 billion Albany project’s managing partner yesterday said no developer had invested more equity capital in the Bahamas, as he urged the Government to address key issues left by its predecessor. Christopher Anand called on the Minnis administration to address the Clifton oil spill, the New Providence landfill and power outages plaguing the island. “Please fix the oil in the sea at Clifton, which the previous government promised to do; please fix the the power; and please fix the dump,” said Mr Anand yesterday during a visit by Prime Minister Dr Hubert Minnis and Free National Movement (FNM) MPs. Mr Anand touted the south-west New Providence community as the “Monaco of the Caribbean”, adding: “We are trying to build a place here where the world’s richest people will come and settle.” Mr Anand said Albany complemented the tourism offerings already in the Bahamas, adding that the project had been able to attract a high-end clientele this nation had never seen before. “We brought new people to this country, both as business and homeowners,” said Mr Anand. He added that $1.5 billion had been invested in Albany to-date, with no debt. “I don’t think anyone has invested more equity in the Bahamas than us. We have done it is the toughest economic times in history,” said Mr Anand. He said this was accomplished through completing the development in stages. Albany was founded by British billionaire Joe Lewis and his private investment organisation, Tavistock Group, together with golfing greats, Tiger Woods and Ernie Els.
Wednesday, August 2, 2017, PAGE 3
YEAR-END TARGET FOR BPL EFFICIENCY STUDY By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net REGULATORS are aiming to carry out their efficiency assessment of Bahamas Power & Light (BPL) before year-end, a senior executive suggesting the task could take six months. Shevonn Cambridge, the Utilities Regulation and Competition Authority’s (URCA) director of utilities and energy, told Tribune Business that the study would examine all aspects of the energy monopoly’s operations.
“We are just ironing out the terms of reference with the efficiency study and we are going to proceed with that,” he said. “That is all a part of regulating the industry. It won’t just be for BPL. “The efficiency study is part of setting that base line. Once we get the findings we would consult with the utility, and to what extent any other stakeholders are impacted or deemed as having interest in the results of that, then we would also interact with them and get their feedback.” Mr Cambridge, himself a former BEC executive, added: “We are looking to get started on the efficiency study before the end of the
IDB: Bahamas ‘poses very unique challenge’ From pg B1 the country’s archipelagic nature created transportation, infrastructure and administrative challenges, with Family Island “pockets of poverty” placing “a sever strain” on health, education and social services. Emphasising the task ahead, the Bank added: “With a total population of 369,700 in 2015, the internal market of the Bahamas is small, its productive base is narrow and unable to benefit from economies of scale, and its regulatory environment is weak in important sectors. “Addressing these environmental, social, infrastructure, and policy issues will require the sustained effort of the bank in support of the public and the private sectors.” It reiterated that both the economy’s ‘twin pillars’, tourism and financial services, were coming under sustained competitive and, in the latter’s case, regulatory pressures that were undermining their GDP contributions. “An uncertain future relates to the cost structure
of the industry relative to competitors, skills deficiencies, and potential environmental problems,” the IDB said of tourism, noting that the sector and related industries accounted for 60 per cent of GDP, employed half the labour force and produced nearly 30 per cent of government taxes. “Economic growth has slowed considerably over the past 15 years, reflecting a deterioration in total factor productivity,” it added. “GDP growth averaged less than 0.6 per cent a year over this period, barely exceeding population growth and leading to a doubling of the unemployment rate over the past decade, although there are some signs of a recovery. “High unemployment placed pressure on the social safety net, which led to a corresponding decline in a number of social indicators. In addition, structural obstacles, including the mismatch of skills in the labour market, hampered economic activity by creating a poor business environment.”
Vacancy
Property Manager Essential Functions
The Property Manager is primarily responsible for one home in addition to other high level responsibilities to serve the Club, as assigned by the General Manager. He/She will work directly with the home owner to plan and execute the overall management of property, maintain the highest level of service and supervision of all tasks including screening and overseeing outside vendors, contractors, construction projects, maintenance of grounds, and vehicles.
Duties and Responsibilities
• • • • • • • • • •
Coordinates and manages all work performed on the residence. Manage the budget for the home, ensuring the General Manager’s approval is secured prior to any variances. Ensures home is secured daily and the owner’s specified standard of care for the residence is executed. Assists owner with purchases, shipping and receiving of goods. Ensure owners special requirements are taken care of. Schedule Club’s resources in advance, such as housekeeping, concierge and other a la carte services. Develop Standard Operating Procedures for the maintenance of the home. Complete provisioning and purchasing for members and guests based on their requests and ensure accurate billing where required. Conduct daily inspections/walk-thru of house when vacant to ensure air condition, lights, water and all other utilities are in away mode or otherwise as instructed by owner. Perform additional tasks as assigned by the General Manager.
Minimum Experience Credentials • • • • • •
Minimum of 5 years’ experience in a similar or related capacity Strong organizational skills Strong communication skills (written and verbal) Ability to adapt to a flexible and fast-paced work schedule Ability to be physically active for long periods of time Hospitality background will be an advantage
Interested applicants can forward their information to www.hr@bakersbayclub.com on or before Friday, August 11, 2017 Only applicants contacted will be responded to.
year. It’s not an overnight type thing. “We envision that it is going to take six months or thereabouts at least to do a proper efficiency study. You’re not just looking at the technical aspects but also the administrative and other aspects of the organisation.” Mr Cambridge said URCA was also moving forward with public consultation on BPL’s draft consumer protection plan. “The consultation period is from now until October 25. We have a number of Family Islands that we have go to, and that is why it is extended so long,” he added.
“The reason why we are going to Family Islands of different characteristics is because users in the different grids have different concerns and issues. We are going throughout the Bahamas. Once that period is finished we leave a couple more weeks for people to get their results in to us. “We will then compile those and make a final determination, at which point we will then publish the document and go back through a campaign to present it to the public, and make sure that they are familiar with it and they are able to rely and act upon it.” Mr Cambridge added: “What consumers can
expect is basically worldclass standards that take into account our local needs and local capabilities. It’s a growing process, and it’s to make people more accountable, make the information more transparent and accessible. “We want an informed populace. It puts a bit of pressure on the utilities to perform because there would be something in ‘black and white’ to say that this is the level of performance that they agreed they were able to provide. It also contains any necessary compensation or redress for various matters.”
Charting the Bahamas’ slide, the IDB said it had fallen from 68th in the World Bank’s 2010 ‘ease of doing business’ report to 121st spot last year, adding: “Important structural reforms are needed to reverse these problems.” This “sluggish” GDP growth, combined with elevated government spending, resulted in the government’s direct debt more than doubling in just nine years - from less than 30 per cent of GDP in 2007 to 69.6 per cent at end-2016, just below the IMF’s ‘danger’ threshold. When the liabilities of public corporations are added in, this took the national debt to 77.9 per cent at 2016 year-end. The IDB also expressed concern over the Bahamas’ external reserve levels, noting that government borrowing had been used to support them as a result of declining foreign direct investment (FDI) flows. “Reserves dropped from 3.6 months of import coverage at end-2007 to roughly 2.5 months by end-February 2017, a ratio that is lower than desired given the country’s vulnerability to external shocks and volatile FDI,” the Bank added. Turning to specific weaknesses, the IDB not surprisingly identified
energy as a “significant hurdle to private sector development [that] raises the cost of doing business”. “Inadequate infrastructure hurts the country’s productivity and competitiveness, and requires an integrated approach to achieve sustainable development,” it said. “The state-owned Bahamas Electricity Corporation (BEC), which controls the generation, transmission and distribution of electricity through its subsidiary, Bahamas Power and Light (BPL), has no regulatory incentives to operate on a profitable basis, and its supply is unreliable and insufficient. There are no sources of renewable energy and the country is exposed to international oil prices.” In a similar vein, the IDB added: “A key constraint on economic development and growth is the weakness of skills. Even though the Bahamas qualifies as a high-human-development country, gains in education have not produced an adequately skilled workforce as evidenced by low graduation rates and poor test performance. “The resulting shortage of skills has led to very low productivity, which affects the public and private sectors alike. A number of local
and international companies pay hefty Immigration fees to bring in talented individuals with niche qualifications. In addition, large employers have their own training facilities, but many small and medium-sized enterprises (SMEs) cannot absorb the cost of training.” The Bahamas was also identified as “lagging” in its implementation of the Economic Partnership Agreement (EPA) with the European Union (EU), and its integration into the global economy and rules-based trading regimes generally. “The Bahamas remains somewhat disconnected from the rest of the world in respect to trade, even though its imports represent one-third of GDP,” the IDB said. “The country is still not a member of the World Trade Organisation (WTO) and, while a member of the Caribbean Community, is not a partner of the Caribbean Single Market. “Tariff dispersion is high, and barriers to entry are common. While the Customs Department is being modernised, its outdated procedures led to inefficient cargo clearance and weak border control, as well as high logistics costs that hamper international trade.”
PAGE 4, Wednesday, August 2, 2017
EX-FNM chair blasts ‘nonchalance’ towards minority shareholders From pg B1 complaints of other minority investors. “We’ve got to get to the point in this country where proxy materials for annual general meetings (AGMs) are put on the Internet, like they do in most countries,” Mr Cash told Tribune Business. “The unfortunate reality is that there is a pervasive level of disinterest and nonchalance when it comes to respecting the rights of shareholders to receive information. It is time for the system to change.” Respect, and protection, for minority investor rights has been a recurring topic in the Bahamian capital markets for the past two decades, especially given that the majority of BISX-listed stocks are controlled by either a majority shareholder or group of like-minded shareholders. Mr Cash thus joined Mike Lightbourn, Coldwell Banker Lightbourn Realty’s president, and Dr
Johnathan Rodgers, the ‘eye doctor’, in confirming they had yet to receive the BOB AGM materials that publicly-traded companies are mandated to provide shareholders as part of their listing obligations. Mr Lightbourn, though, disclosed that BOB had finally e-mailed him its 2016 annual report, AGM agenda and proxy voting form yesterday morning - just hours after Tribune Business had gone on sale featuring his complaints about the lack of disclosure, and suggestion that today’s AGM should be postponed. Meanwhile, Mr Cash said he “didn’t want to ascribe any untoward motives” to BOB’s failure to provide him with the AGM materials for a third consecutive year. He reiterated, though, that “if oftentimes becomes difficult to have information provided when the law says it should be provided”. The BOB AGM materials reveal that Kevin
Residency ‘uncertainty’ turns developer off new projects From pg B1 foreign real estate buyers from $500,000 to a $1 million property investment. This proposal, originally initiated by the Christie administration’s Ministry of Financial Services, appeared to have been shelved following opposition from
developers and realtors over the likely negative consequences for the Bahamas and its real estate market. Should it be revived it will be especially damaging for Mr Kinsale, given that his developments target foreign buyers in the $500,000 to $1 million price range.
THE TRIBUNE Higgins, a Central Bank of the Bahamas economist, and businessman Timothy Brown are the two persons nominated for election as an independent director to represent minority shareholders on the troubled institution’s Board. “Shareholders will be asked to elect one of these persons to serve as an independent director,” BOB’s proxy statement said. Whoever is elected will serve on a Board dominated by the appointees representing the Government’s 79 per cent majority equity stake, which it holds through the Public Treasury and National Insurance Board (NIB). Wayne Aranha, the former PricewaterhouseCoopers (PwC) partner and accountant, and Anthony Allen, ex-Scotiabank (Bahamas) chief, have been named as chairman and deputy chairman, respectively. The other two government-appointed directors are attorneys, Ruth Bowe-Darville and Kirk Antoni, with BOB acting managing director, Renee Davis, also holding a seat. The BOB proxy statement also proposes a 30.8 per cent year-over-year cut
in total director compensation, with shareholders being asked to approve a $225,000 payout for the financial year that recently ended on June 30, 2017. The latter figure represents a $100,000 cut from the $325,000 total director compensation approved for June 30, 2016, which “was payable to eight directors and also included the chairman’s remuneration”. The total director payout for BOB’s 2016 financial year came in at $272,802, or $34,100 per director, which still means that 2017’s figure represents a 17.5 per cent cut year-over-year. Some may interpret this as sending a timely signal of prudence and cost-cutting from the top, given that BOB has racked up a combined $120 million-plus in losses over the past three financial years. However, the 2017 spend - should it be ratified - will have been incurred by the former Board that was chaired by Richard Demeritte. Mr Cash said he and other investors would again seek to hold BOB’s Board and management “to account” at tonight’s AGM, especially when it came to a recovery plan for the troubled bank.
The former senator reiterated his previous call for “regime change at the top”, and said he was keenly interested in whether the new Board would signal change or “business as usual”. “I am most interested in having a clear sense of whether this new Board is going to announce meaningful changes in the management structure of the organisation,” Mr Cash told Tribune Business. “Perhaps it may be unfair to them, but it must be the case that in the next 30-90 days they have a meaningful conversation up and down the organisation with employees and customers. “I hope they will listen to minority shareholders, and they must listen to people with a strong sense of the absence of clear, decisive leadership in the organisation,” Mr Cash added. “If they listen, they will hear the challenges rank and file employees up and down the organisation are having due to challenges with the leadership. If they listen, they will hear what will be a clarion call that there needs to be regime change at the top of the organisation.”
The former FNM chairman said he was “going to be very keen to hear whether this Board is focused on business as normal, or if they intend to change”. He added that he was concerned about the talk of BOB opening a branch on Bimini to replace the departing Royal Bank of Canada (RBC), and ensure that island continued to enjoy a physical banking presence. “If they propose to utilise the same business model going forward, what is going to be different?” Mr Cash asked. “One would have expected a new, innovative approach to providing these services. “It cannot be business as usual. I look forward to hearing what the new Board has to say.” Mr Lightbourn called on BOB’s Board to throw open the AGM floor and allow minority shareholders to ask as many questions as they want. “The key will be if they answer all questions,” Mr Lightbourn said. “I want to know that. Under Richard Demeritte, you were limited to one question and follow-up>”
Warning that the Bahamas can ill-afford any mistakes given the intensifying global and Caribbean competition to attract foreign real estate purchasers, Mr Kinsale said continued uncertainty would also undermine this nation’s ability to grow through “responsible Immigration”. “I think we need to see some certainty around the residency process and improvements there,” he told Tribune Business.
“Right now, it’s taking up to nine months to a year to get permanent residency applications processed, and that’s too long. “For me to invest and do another $40 million project, I need to know people coming here will go back to their friends and say: ‘We had a great experience’, rather than go back and say: ‘We didn’t have a great experience; they lost our file. We just need to get better.”
Mr Kinsale praised the Minnis administration for recognising that the Bahamas needed to improve its ‘ease of doing business’ in many areas and on numerous levels. Yet he added: “Something as silly as getting a basic company open is just exhausting. It’s a very tiring process. You ‘high five’ each other when you open a bank account; it’s like you’ve accomplished a major feat. “I’m thankful the Government recognises this, but it takes time to get systems in place and turn people out. When people have to do the same thing 10 times, it causes them to give up and not do things. It causes inertia.” Mr Kinsale also expressed concern about sudden government policy changes without warning, recalling how the previous administration’s plans to increase the permanent residency threshold to $1 million threatened to destabilise a market accounting for 50 per cent of the Bahamas’ real estate sales. “I heard a rumour they were discussing it again,” he told Tribune Business of the threshold. “You just need to know that when you start a project, nothing’s going to change. You cannot be going through a $40 million project and, half-way through, find the residency programme has changed.”
Both ONE Cable Beach and Thirty|Six, which have total construction costs of $45 million and $25 million, respectively, were endangered by the former Christie administration’s proposed policy change while in construction midstream. Mr Kinsale warned that the ongoing uncertainties threatened to undermine the best method for growing the Bahamian real estate market, which he described as “responsible Immigration”. He added that the Bahamas could not afford to stand still on its residency processes and timelines with Caribbean rivals, and even the US, all targeting wealthy foreign real estate investors as a way to expand their economies. “It’s really a matter now of the Bahamas going through what I call responsible Immigration,” the developer told Tribune Business. “It’s fairly simple if you break it down. “If 10 more people live on the island, 10 more people need houses, and 10 more people need lawyers, cars, architects. One of the biggest issues we have is that there are not enough people in the Bahamas. We’re not seeing the Immigration we need.” Mr Kinsale said cities such as Miami, Toronto and Vancouver were all enjoying real estate and economic growth via Immigration. Disclosing that Toronto developers had seen a 75 per cent increase in condo sales as a result, he added: “It so shocks me every time I go back to see 40 cranes over multi-storey properties, and there are just two-three projects in the Bahamas and they are still not sold out. “Same thing in Vancouver; homes sell in one day. I really believe the only way we’re going to grow this economy is by having more people buying. The Bahamas does not have a product where people are beating down the door to buy real estate. We like to believe they are, but that’s not the case.” Pointing to the increasing ferocity of the Bahamas’ competition, Mr Kinsale added: “When I looked at all these programmes for permanent citizenship and residency, I can go and invest in an EP5, put $500,000 in the US and get a ‘green card’. “For us to sit here and think we are better than in the US makes no sense to me. Are we better than New York, Los Angeles, Miami, Boston? We have a lot of competition. “There are four to five Caribbean destinations offering passports for $300,000,” he continued. “That’s why I say we should be doing a better job of generating activity through responsible Immigration. I don’t believe in selling passports, but I believe in getting more people, and the right people. “They don’t want jobs. They buy a home, keep to themselves and spend money. That’s what we want. When you boil it down, it’s fairly straightforward.”
NOTICE MELMAR INVESTMENTS INC. (In Voluntary Liquidation) Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act 2000, the above-named Company is in dissolution, which commenced on the 31st day of July, 2017. The Liquidator is Windermere Corporate Management Limited, East Bay Street, P.O. Box CR-56766, Suite 1000, Nassau, Bahamas. WINDERMERE CORPORATE MANAGEMENT LIMITED Liquidator
Vacancy
Sous Chef Essential Functions
To assist the Executive Chef in the production and control of all food and beverage related job functions. Additionally, the Sous Chef will participate in the development and on-going process of staffing, menu planning, purchasing, cost controls, client interaction and guest experience assurance.
Duties and Responsibilities •
• • • •
Assisting in developing and maintaining a world class, world renown culinary and service experience for the exclusive use of the Club members and their invited guests. Assisting in fostering a working environment that is in keeping with the project theme, values and club mission statement. Assisting in establishing a “maximum operational efficiency” for all of the club’s kitchens and to ensure that food products prepared and served are of the highest quality. Assisting with planning all meals; co-supervising, scheduling and coordinating the work of all kitchen employees, seeing that food preparation is economical and technically correct. Assisting in developing and maintaining all control forms, policies and procedures manuals.
Minimum Experience Credentials •
• • •
Culinary degree from an approved school or completion of an approved apprentice program. 5 to 10 years in various supervisory positions in the kitchens including; sous chef and/or chef d’ cuisine position. Previous experience in a hotel or private club is preferred. Highly skilled cooking ability in all areas of kitchen including the ability to prepare various ethnic cuisines.
Interested applicants can forward their information to www.hr@bakersbayclub.com on or before Friday, August 11, 2017 Only applicants contacted will be responded to.
THE TRIBUNE
Wednesday, August 2, 2017, PAGE 5
Banks approve fewer than 50% of mortgages From pg B1 banks remain extremely jittery over mortgage lending, given how badly they were burnt in the wake of the 2008-2009 recession, with huge portfolios of distressed and delinquent properties still clogging their balance sheets to this very day. The figures also illustrate the ongoing difficulty Bahamian home buyers are having in qualifying for loans, with the banks having considerably tightened their lending criteria to demand higher downpayments and more collateral.
Combined, these factors mean the continuation of a depressed local housing market, together with negative social consequences and reduced work for contractors, realtors, attorneys and other professions reliant on this sector. This likely resulted in the sluggish 2017 first quarter housing market, with the Central Bank revealing: “The total number of construction starts in the Bahamas decreased for private residences by 36.2 per cent in the first quarter of 2017, vis-à-vis the comparable period of last year. “The value of construction starts fell for private
$215m deficit spend in final two months From pg B1 deficit at $265.9 million, the former government added a relatively ‘modest’ $18.8 million to it during April - a far cry from the $500 million worth of ‘red ink’ that the Minnis administration is estimating for the 20162017 full-year. The Central Bank data suggests that either the Christie administration abandoned all spending controls during its final days in office; that previous spending commitments caught up with it; or that the current government’s estimate may be excessive. “Data on the Government’s budgetary operations for the first ten months of fiscal year 2016-2017 revealed a $35.5 million (14.3 per cent) expansion in the deficit to $284.7 million,” the Central Bank’s June economic report said. “This outturn reflected a $93.7 million (5.1 per cent) rise in total expenditure to $1.939 billion, which outpaced the $58.2 million (3.6 per cent) increase in aggregate revenue to $1.654 billion.”
The Minnis administration used the Christie administration’s alleged excesses to justify its $722 million in approved borrowing for the 2017-2018 fiscal year, with the Prime Minister in his national address accusing his predecessor of spending a quarter of a billion dollars in the run-up to the May 10 general election. Elsewhere, the Grand Lucayan’s closure and Memories pull-out - resulting in the loss of 59 per cent of Grand Bahama’s room inventory - drove a 41.2 per cent reduction in air arrivals to the island during the 2017 first quarter. “In terms of the major markets, the largest decline in visitors occurred in Grand Bahama (16.6 per cent), which lost a significant segment of its room capacity following the closure of a major resort after the passage of Hurricane Matthew,” the Central Bank said. “Accordingly, the island recorded a contraction in air arrivals by 41.2 per cent, outpacing the 17.2 per cent reduction in the prior year, while the cruise segment
residences by 17 per cent (mainly in Grand Bahama). Total completions rose by 11 in number and by $6.5 million in value.” Drawing on Department of Statistics data, it added: “Nevertheless, during the three-month period, private residential completions rose by 4 per cent in number and by 15.3 per cent in value. “Similarly, the number of permits issued for private residential construction - a forward looking indicator - firmed by 1.4 per cent in number, but contracted by 31.1 per cent in value.” The Central Bank data also revealed that Hurricane Matthew recovery needs drove a “notable spike” in 2016 fourth quarter loan applications, which increased from around 11,000 in the same period
in 2015 to 18,000 - a rise of around 63.6 per cent. It also represented a 38.5 per cent quarter-over-quarter increase. The regulator added that post-Matthew there was “strong growth in debt consolidation applications, and a notable increase in furniture and appliances loans”, which enjoyed “approval rates of 92 per cent and 87 per cent, respectively”. This indicates that many storm-hit Bahamians were forced to borrow to repair homes, and replace damaged property, while others were left unable to meet their financial obligations and had to restructure existing debt facilities. Other monetary sector data showed that private sector credit demand continues to be weak, with lending to businesses and
households contracting by $16.8 million in the 2017 first half following a $55.2 million fall the prior year. The decline was driven by reduced mortgage and consumer lending, which fell by $26.7 million and $13.3 million, respectively, although commercial (business) credit grew by $23.2 million. However, increased lending to the Government drove a $165.1 million increase in domestic (Bahamian dollar) credit during the 2017 first half. “Net claims on the Government advanced by $185.2 million, compared to the $3.5 million marginal rise in 2016,” the Central Bank said. “Credit to public corporations weakened by $3.3million, after a $30.9 million increase in the prior period.”
Highlighting the task in finding qualified borrowers, excess liquid assets in the Bahamian commercial banking grew by $165.9 million during the 2017 first half to hit $1.6 billion. Meanwhile, the Bahamas’ external reserves jumped by $58.9 million over the same six-month period to hit $961 million, which the Central Bank described as “a substantial slowdown” from the prior year’s $245 million expansion that was aided by the Government’s $100 million foreign currency bond. “At end-June, reserves were equivalent to an estimated 3.8 months of current period merchandise imports, compared to 4.5 months a year earlier,” the Central Bank said.
decreased by 12 per cent in contrast to a slight 1.4 per cent uptick in 2016.” The report added: “Conversely, total arrivals to New Providence rebounded, with growth of 7.3 per cent relative to a 1.7 per cent fall-off in 2016. “This development reflected a 14.7 per cent improvement in sea visitors, vis-à-vis a 3.8 per cent decrease in the prior year. However, the high valueadded air component fell by 9.8 per cent, compared to the previous year’s 3.4 per cent improvement.” Much of the stopover visitor decline is likely to be timing related, given that Easter fell in March in 2016 but April - meaning the second quarter - this year. The Central Bank report also revealed the disconnect between global oil prices and Bahamas Power & Light’s (BPL) fuel charge, showing how the latter’s inefficiencies and greater reliance on Blue Hills power station with its more expensive fuel - is costing consumers and businesses. The regulator said oil prices “have not increased significantly” in 2017 and, despite rising last year, are lower than pre-June 2014 levels - resulting in a slight increase in gasoline prices.
Yet in the case of electricity, its report noted: “The BEC [BPL] fuel charge at end-June was higher by 23.1 per cent compared to March 2017, and by 66.4 per cent vis-a- vis June 2016. “The fuel charge, which exerts a large influence on the housing component of the Retail Price Index, firmed by 13.7 per cent to $15.58 per kilowatt hour (kWh) in June, month-on-month.” Still, the Central Bank said year-on-year growth in foreign exchange transactions for the purchase of goods and services
suggested private sector demand was “stronger”. “For the first half of the year foreign exchange sales strengthened by $230.9 million (10.7 per cent),” the Central Bank said. “This included a $101.6 million rise in most services related payments (39.8 per cent of the total), and a $75.1 million expansion in outflows for non-oil imports (36.2 per cent).
“More muted gains were recorded for travel related expenditures (6.2 per cent), oil imports (7.9 per cent) and transfers (6.1 per cent), of $46.8 million, $15.6 million and $10.5 million, respectively. In contrast, factor income outflows (3.8 per cent) decreased by $18.7 million, vis-à-vis the comparable period of 2016.”
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Growing wholesale and retail company seeks to employ: GENERAL MANAGER WAREHOUSE MANAGER MECHANIC SHIFT MANAGERS Send resume to resume@acgbahamas.com
A Critical Thinker, Analytical, and a Passion for Problem-Solving
Vacancy
We are growing! Fidelity Bank invites applications for the position of:
ASSOCIATE INTERNAL AUDITOR Job Summary: Fidelity Bank is currently recruiting for an Associate Internal Auditor to audit, conduct business process reviews and perform fraud investigations. With functional report to the Manager, Internal Audit, this role includes compliance responsibilities and support for various cross functional partners. This is a high visibility role on a small team, and provides the successful candidate with an opportunity to contribute to the organizations’ control environment and exposure to many business areas.
Main Duties & Responsibilities:
Executive Sous Chef Essential Functions
The Executive Sous Chef assists the Executive Chef, in the production and control of all food and beverage related job functions within the property. Additionally, he/she will participate in the development and on-going process of menu planning and development as it pertains to current trends, cost controls, inventories, client interaction and guest experience assurance.
Duties and Responsibilities
• Conduct financial and operational audits.
•
• Conduct internal investigations of company violations and other legal matters. • Diagnose operational risks and process improvement opportunities.
•
• Provide recommendations to improve financial and operational controls. • Develop reports and presentations on audit findings, results and recommendations.
•
Key Qualifications & Experience: •
• Bachelor’s Degree in a business-related field • Minimum 2 years’ experience in the Financial Services Industry or Hospitality Industry • Excellent communication skills (verbal and written)
•
• Ability to prioritize, meet tight deadlines and work well under pressure • Limited travel may be required
•
• Ability to work flexible hours in a self-motivated environment • Independent worker • Ability to manage the administration of multiple tasks at one time • Highly organized
Assist in administration of financial controls, special events coordination, quality and food safety control and development. Assist in developing and maintaining all control forms, policies & procedures manuals, in addition to the employee handbook. Will be be responsible for upholding and training the teams on modern cooking methods and food preparation, portion control and garnishing of foods. Assist in the monthly inventory process and assist with transfers to other departments and submittal of those transfers. Will be required to interact with membership guests throughout the property, during operational hours and will be required to work when ever business demands. Assist and mentor the Team in Bakers Bay to uphold the highest culinary and profesional standards, drive excellence in all aspects of food and bevarage service.
Minimum Experience Credentials PLEASE SUBMIT BEFORE August 11th, 2017 to:
HUMAN RESOURCES Re: Associate Internal Auditor careers@fidelitybahamas.com
ABSOLUTELY NO PHONE CALLS
A competitive compensation package will be commensurate with relevant experience and qualification.
•
• • •
Culinary degree from approved school or completion of an approved apprentice program is preferred. 5 to 10 years in various supervisory positions within the kitchen, including; sous chef and/or chef de cuisine positions. Previous experience in a hotel or private club is preferred. Highly skilled cooking ability in all areas of kitchen including the ability to prepare various ethnic cuisines.
Interested applicants can forward their information to www.hr@bakersbayclub.com on or before Friday, August 11, 2017 Only applicants contacted will be responded to.
PAGE 6, Wednesday, August 2, 2017
THE TRIBUNE
Trump on tricky legal ground with ‘Obamacare’ threat By RICARDO ALONSOZALDIVAR Associated Press WASHINGTON (AP) — President Donald Trump’s threat to stop billions of dollars in government payments to insurers and force the collapse of “Obamacare” could put the government in a legal bind. Law experts say he’d be handing insurers a solid court case, while undermining his own leverage to compel Democrats to negotiate, especially if premiums jump by 20 percent as expected after such a move. “Trump thinks he’s holding all the cards. But Democrats know what’s in his hand, and he’s got a pair of twos,” said University of Michigan law professor Nicholas Bagley. Democrats “aren’t about to agree to dismantle the Affordable Care Act just because Trump makes a reckless bet.” For months, the president has been threatening to stop payments that reimburse insurers for providing required financial assistance to low-income consumers, reducing their copays and deductibles. Administration officials say the decision could come any day. Playing defense, some insurers are preemptively raising premiums for next year. For example, BlueCross BlueShield of Arizona this week announced a 7.2 percent average hike for 2018. But there would likely be no increase if the subsidies are guaranteed, the company said. And BlueCross BlueShield of North Carolina earlier requested a 22.9 percent average increase. With the subsidies, the company said that would have been 8.8 percent. The “cost-sharing” subsidies are under a legal cloud because of a dispute over whether the Obama health care law properly approved the payments. Other parts
of the health care law, however, clearly direct the government to reimburse insurers. With the issue unresolved, the Trump administration has been paying insurers each month, as the Obama administration had done previously. Trump returned to the subject last week after the GOP drive to repeal the health care law fell apart in the Senate, tweeting, “As I said from the beginning, let ObamaCare implode, then deal. Watch!” He elaborated in another tweet, “If a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies...will end very soon!” It’s not accurate to call the cost-sharing subsidies a bailout, said Tim Jost, a professor emeritus at Washington and Lee University School of Law in Virginia. “They are no more a bailout than payments made by the government to a private company for building a bomber,” he said. That’s at the root of the Trump administration’s potential legal problem if the president makes good on this threat. The health law clearly requires insurers to help low-income consumers with their copays and deductibles. Nearly 3 in 5 HealthCare.gov customers qualify for the assistance, which can reduce a deductible of $3,500 to several hundred dollars. The annual cost to the government is about $7 billion. The law also specifies that the government shall reimburse insurers for the cost-sharing assistance that they provide. Nonetheless, the payments remain under a cloud because of a disagreement over whether they were properly approved in the health law, by providing an “appropriation.” The Constitution says the government shall not spend money without a congressional appropriation.
CUBA STOPS ISSUING NEW PERMITS FOR SOME PRIVATE ENTERPRISES By ANDREA RODRIGUEZ Associated Press HAVANA (AP) — The Cuban government announced Tuesday that it was placing at least a temporary hold on the opening of a private sector that employs more than a half-million people and has become a significant force in the island economy. Authorities will suspend the issuance of permits for a range of occupations and ventures, including restaurants and renting out rooms in private homes, the government said in the
Communist Party newspaper Granma. The suspension includes the growing field of private teachers as well as street vendors of agricultural products, dressmakers and the relatively recent profession of real estate broker. The announcement did not say when the issuing of permits would resume and said that enterprises already in operation can continue. “No one assumes that the goal of these measures is to roll back the development of self-employment in Cuba,” the article said. “Nothing could be farther from reality.”
JEFF BROTMAN, Chairman of Costco Wholesale Corporation, speaks during a news conference at the University of Washington in Seattle. Yesterday, Costco Wholesale Corp. announced the death of Brotman, its cofounder and board chairman. Brotman opened Costco’s first warehouse with Jim Sinegal in 1983 in Seattle. (AP Photo/ Ralph Radford, File)
Puerto Rico university seeks to double fees amid crisis By DANICA COTO Associated Press SAN JUAN, Puerto Rico (AP) — Puerto Rico’s largest public university says it is planning to double its course fees following
TUESDAY, 1 AUGUST 2017
demands that it slash its budget amid a dire economic crisis. Starting next year, students seeking a bachelor’s degree at the University of Puerto Rico could pay up to $115 per credit instead
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,857.59 | CHG -12.70 | %CHG -0.68 | YTD -80.62 | YTD% -4.16 BISX LISTED & TRADED SECURITIES 52WK LOW 4.01 17.43 8.19 3.50 1.47 0.12 3.80 8.40 5.83 10.05 10.00 2.18 1.50 5.80 8.75 7.01 8.00 6.60 11.93 10.00
1000.00 1000.00 1000.00 1000.00
900.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.01
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 Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB17 FBB18 FBB22
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y 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 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.07 3.95 1.96 170.77 146.34 1.50 1.67 1.58 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 1.44 1.63 1.55 1.04 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.27 17.43 9.09 3.60 1.47 0.12 4.00 8.60 6.00 10.45 10.01 2.58 1.55 6.00 9.75 7.29 10.00 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 108.49 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.27 17.43 9.09 3.60 1.47 0.12 4.00 8.60 6.00 10.45 10.01 2.60 1.55 6.00 9.75 7.01 10.00 7.01 12.50 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00 0.00 -0.28 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 1.01
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 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
108.61 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund 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
VOLUME
3,700
500 1,000 100
VOLUME
NAV 2.07 3.95 1.96 174.30 146.25 1.50 1.63 1.58 1.08 6.92 8.03 6.15 10.52 11.46 10.01
EPS$ 0.444 0.932 -0.510 0.383 -0.340 0.000 -0.760 0.587 0.190 0.540 0.570 0.102 0.455 0.753 0.763 0.330 0.830 0.600 0.697 0.000
DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.000 0.300 0.220 0.360 0.570 0.060 0.060 0.290 0.450 0.000 0.340 0.140 0.620 0.000
P/E 9.6 18.7 N/M 9.4 N/M N/M -5.3 14.7 31.6 19.4 17.6 25.5 3.4 8.0 12.8 21.2 12.0 11.7 17.9 0.0
YIELD 1.87% 5.74% 0.00% 5.83% 0.00% 0.00% 0.00% 3.49% 3.67% 3.44% 5.69% 2.31% 3.87% 4.83% 4.62% 0.00% 3.40% 2.00% 4.96% 0.00%
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 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 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 15-Dec-2017 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% 2.34% 4.55% 0.90% 1.64% 1.21% 2.55% 3.48% 4.01% 3.17% 7.00% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%
NAV Date 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 31-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017
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
The most visible effect of the reforms was a huge increase in private rooms and guest houses, often nicer and with better services than the state-owned hotels, along with private restaurants catering to tourists around the country. It helped fuel GDP growth of about 1 percent so far this year, following a dip last year, but officials have expressed concern about tax evasion and the use of raw materials from the black market in the growing segment. Granma said that “putting the house in order is the highest priority of the Cuban state.”
JEFF BROTMAN, COSTCO CO-FOUNDER, DIES
MARKET REPORT 52WK HI 4.38 19.17 9.09 3.60 2.41 0.13 6.50 8.60 6.00 10.60 14.49 2.52 1.60 6.00 10.00 11.00 10.00 7.25 12.51 11.00
Despite that assurance, there are fears that the move could have long-term consequences. “It’s only a stop sign along the road, but with a discouraging message even it is temporary,” said economist Omar Everleny Perez. “The country needs more hopeful messages.” President Raul Castro expanded an opening of the economy to privatesector employment in 200 categories of business in 2010. The government says nearly 570,000 people are employed in the enterprises, including hundreds of restaurants and guest houses.
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
of $56, while those seeking a master’s degree could pay $270 instead of $140 per credit under plans approved late Monday by the university board. The fees would go into effect next year, and officials warn that another 20 percent increase could be implemented if needed. The university on Tuesday is expected to submit its fiscal plan to the federal control board overseeing Puerto Rico’s finances. It is the latest hit for a university that reopened in June following a twomonth strike organized by students protesting $450 million in proposed budget cuts sought by the control board. The demands coupled with the strike led to the resignation of several top university officials, including two presidents and three board members. Student leaders rejected the proposed increases and said they would limit access to education for thousands of people living on an island with a 12 percent
unemployment rate and a 45 percent poverty rate. “This will only contribute to the migration, the economic crisis and the high unemployment rate that we currently face,” said Wilmari de Jesus, student council president at the university’s main campus. University officials say the increases would generate more than $100 million a year, part of which would offset a new scholarship fund worth $50 million. Some 61,000 students are enrolled at the 11 campuses at the University of Puerto Rico, and about 70 percent qualify for federal aid. The university has seen an increase in enrollment from nearly 56,000 students in 2013 to more than 62,000 last year. The board also is considering an increase in lab, graduation, admission application and transcription fees, among other things.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, HELEN GRACE HEAdLEy KwAN RutHERfoRd intend to change my name to HELEN GRACE HEAdLEy KwAN. 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.
NOTICE
NOTICE is hereby given that IMMACULEZE AVELUS LOUIS of Fifth Street, Coconut Grove, The Bahamas, P.O. Box N-7060, is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th Day of July, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, N.P., The Bahamas.
NOTICE
NOTICE is hereby given that T’hashka Accius of Faith Avenue North, Carmichael, 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 twentyeight days from the 2nd day of August, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
THE TRIBUNE
Wednesday, August 2, 2017, PAGE 7
GOP shows signs of reaching out to Democrats on health care By ALAN FRAM Associated Press WASHINGTON (AP) — Republicans showed signs Tuesday of reaching out to Democrats for a joint if modest effort to buttress health insurance markets, four days after the GOP effort to unilaterally uproot and reshape the Obama health care law crumpled in the Senate. The Republican chairman of the Senate health committee, Tennessee’s Lamar Alexander, said he’d seek bipartisan legislation extending for one year federal payments to insurers that help millions of low- and moderate-income Americans afford coverage. President Donald Trump has threatened to halt those subsidies in hopes of forcing Democrats to make concessions, which the Senate’s top Democrat on Tuesday called “not what an adult does.” The No. 2 Senate Republican also seemed to imply the two parties should seek common health care
ground. Texas Sen. John Cornyn said on the Senate floor, “We are forced to work together to try to solve these problems, and I think frankly bipartisan solutions tend to be more durable.” In addition, Senate Majority Leader Mitch McConnell rebuffed Trump’s demands that the Senate change its rules so it can pass a health overhaul with a simple majority vote. McConnell, R-Ky., said the Senate lacks the votes to end filibusters of legislation like Trump wants, and noted that getting the 60 votes needed to end filibusters wasn’t why Republicans lost. “It’s pretty obvious that our problem with health care was not the Democrats. We didn’t have 50 Republicans,” McConnell told reporters. The prospects for passing bipartisan health care legislation remain uncertain, with divisions between conservatives and moderate Republicans persisting on several issues. In particular, Trump, McConnell and
SENATE Minority Leader Chuck Schumer of N.Y., speaks to reporters on Capitol Hill in Washington, Friday, July 28, 2017, after the Republican-controlled Senate was unable to fulfill their political promise to repeal and replace “Obamacare.” (AP Photo/J. Scott Applewhite)
SENATE Majority Whip John Cornyn of Texas talks to reporters as heads to the Senate on Capitol Hill in Washington. Top Senate Republicans think it’s time to leave their derailed drive to scrap the Obama health care law behind them. And they’re tired of the White House prodding them to keep voting until they succeed. (AP Photo/Cliff Owen)
some other Republicans have mocked the payments Alexander wants to renew as a bailout for insurers. Nonetheless, the day’s comments collectively underscored the distance Senate Republicans are keeping from White House demands that they continue voting on repealing and replacing President Barack Obama’s 2010 health care
McConnell said “there’s still an opportunity” for Republicans to push health care legislation through the Senate. He said he was waiting for the nonpartisan Congressional Budget Office to estimate the impact of GOP bills easing some of the party’s proposed Medicaid cuts, making it easier for insurers to sell bare-bones
overhaul. Erasing that law has been a top priority for Trump and most GOP congressional candidates, and failing to do it as they control the White House and Congress has angered many in the party. Many top Republicans have said it’s time for the GOP to move from health care to other issues.
policies and giving states block grants for health programs. Alexander said the legislation he envisions would be “small, bipartisan and balanced.” He said it should include money to continue the insurance payments in 2018 and give states more flexibility on the type of coverage insurers must provide, he said.
BANKS AND TECH STOCKS SEND DOW INDUSTRIALS CLOSER TO 22,000 By MARLEY JAY Associated Press NEW YORK (AP) — Banks and technology companies took U.S. stocks higher Tuesday, and less-loved sectors including phone and real estate companies also climbed as companies continued to report strong second-quarter results. Payment processors also made hefty gains, while Sprint said it gained wireless subscribers and that it’s open to combining with a competitor or a cable company. Royal Caribbean Cruises, Xerox and shopping mall operator Simon Property Group all climbed, while athletic apparel maker Under Armour and
industrial companies fell after disappointing results. General Motors and Ford slumped on weak July sales reports. Some of the largest gains went to companies and industries that have struggled this year, like real estate investment trusts, or which have missed out on the gains entirely, like phone companies. Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research, said the shift is a good sign for the stock market. “When people are willing to go out and do the proverbial bargain hunting in areas that have not outperformed as much, that shows confidence,” he said. “The
broader the bull market becomes, the more sectors that participate, the more sustainable it becomes.” The Standard & Poor’s 500 index rose 6.05 points, or 0.2 percent, to 2,476.35. The Dow Jones industrial average climbed 72.80 points, or 0.3 percent, to 21,963.92. The blue chip index closed at a record high for the fifth day in a row. Nasdaq composite added 14.82 points, or 0.2 percent, to 6,362.94. The Russell 2000 index of smaller-company stocks gained 3.19 points, or 0.2 percent, to 1,428.33. Banks helped lead the way. The top gainers included JPMorgan Chase, which rose $1.23, or 1.3 percent, to $93.03 and
Citigroup, which added $1.15, or 1.7 percent, to $69.60. Intel rose as South Korean regulators signed off on its deal for Mobileye. Mobileye makes software that processes information from cameras and other car sensors to decide where an autonomous car should steer, and Intel agreed to buy it for $15 billion in March. Intel gained 88 cents, or 2.5 percent, to $36.35. Tech could be in for more gains Wednesday. Apple reported a strong quarter after the closing bell on Tuesday, and its stock rose 4.7 percent in after-hours trading. Apple reported earnings and revenue that far exceeded analysts’
forecasts, and issued a solid outlook for the fourth quarter, when the company is expected to launch a 10th anniversary version of the iPhone. Sprint had its best day this year after it said it’s open to combining with another phone company or a cable company. The fourth-largest U.S. wireless carrier also reported its first quarterly profit in three years as it cut cost and added wireless subscribers. Sprint rose 89 cents, or 11.2 percent, to $8.87. T-Mobile USA climbed $1.41, or 2.3 percent, to $63.07 and Verizon Communications gained 49 cents, or 1 percent, to $48.89. Phone companies, real estate firms and utility
all benefited because bond yields fell, which made the companies more attractive to investors who want income. Utility company Scana continued to rise after it said it will end construction of two nuclear reactors that customers have already paid billions to build. Scana’s South Carolina Electric & Gas unit and state-owned Santee Cooper say they have already spent $10 billion on the project and that it could cost $20 billion to finish. The companies blamed years of delays and cost overruns, and Westinghouse, the primary contractor, filed for bankruptcy protection earlier this year.
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THE TRIBUNE
STOCKS ARE AT RECORDS, BUT IT’S NO LONGER THE ‘TRUMP TRADE’
By STAN CHOE and MARLEY JAY Associated Press NEW YORK (AP) — The stock market has never been higher, and President Donald Trump would like more people to pay attention. “Stock Market could hit all-time high (again) 22,000 today,” Trump tweeted Tuesday about the Dow Jones industrial average, before it ended the day at a record 21,963.92. “Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!” The 18,000 figure he cited was inaccurate: The Dow closed at 19,890.94 six months ago. It was at 18,332.74 on Election Day, which was nearly nine months ago. And analysts say it would be inaccurate to give Trump full credit for the market’s recent records. “Trump obviously is taking credit for a lot of this, as almost any president would do, but the things
that affect the market right now aren’t things that have been put in place over the last six months,” said Randy Frederick, vice president of trading and derivatives at the Schwab Center for Financial Research. Stocks did surge after Trump’s electoral win in November following a couple of hours of confusion among investors caught off-guard by the voting results. The hope was that Trump and a Republicancontrolled Congress would cut regulations, revamp the tax system, launch a big program for infrastructure and enact other pro-business policies. Areas of the market that would benefit most from such policies soared much more than the rest of the market, and the effect was so strong that traders called it the “Trump trade.” Smaller companies, for example, were supposed to be big winners if U.S. tax rates dropped because they tend to do more of their
U.S. PRESIDENT Donald Trump speaks to the media in the Oval Office, in Washington. The stock market has never been higher, and Trump would like more people to pay attention. Yesterday, Trump tweeted about the strength of the stock market since he took office. (AP Photo/Evan Vucci, File)
business domestically, and they do not have the armies of accountants that big multinational corporations use to lower their tax bills. As a result, the Russell 2000 index of smaller stocks surged 16 percent in the month after the election. The index includes such companies as Pier 1 Imports and Big Lots. Its gain was more than triple the 5
percent rise for the biggest stocks in the Standard & Poor’s 500 index. In recent months, though, Washington has had several high-profile stumbles, highlighted by the Senate’s latest failed attempt to repeal the Affordable Care Act. That inaction has investors pushing back their expectations for when a tax plan and other policy
changes could happen, and some are questioning how big those changes can be given Republicans’ struggles. So the Trump trade has not only faded but reversed course, with the initial leaders and laggards flipping places. So far this year, the smallcap Russell 2000 has had less than half the gain of the S&P 500 index, at 5 percent
SUMMERTIME BLUES: JULY WORST MONTH OF YEAR FOR AUTO SALES By DEE-ANN DURBIN Associated Press DETROIT (AP) — July saw the biggest year-overyear decline in U.S. vehicle sales so far this year, leaving automakers to hope that consumers are just waiting to pounce on Labor Day deals. U.S. sales of new cars and trucks fell 7 percent to 1.4 million in July, according to Autodata Corp. It was the seventh straight month of lower sales, and the biggest percentage drop so far this year. July is often a slower month as buyers vacation and wait for dealers to offer model year clearance events in August and September. This year, big cuts in sales to rental car fleets and commercial customers were also a factor. Hyundai, for example, cut its fleet sales by 77 percent in July.
General Motors said its sales fell 15 percent in July, while Hyundai’s dropped 28 percent. Ford’s sales were down 7.5 percent. Fiat Chrysler’s sales declined 10 percent. Volkswagen’s sales fell 5.8 percent, while Nissan’s sales fell 3 percent. Honda’s sales were down 1.2 percent. Two major automakers bucked the trend. Toyota’s sales rose 3.6 percent while Subaru’s were up 7 percent. Analysts have been predicting lower U.S. sales this year as demand levels out after an unprecedented seven straight years of growth. U.S. new vehicle sales hit a record 17.55 million last year. July’s pace would put annual sales at 16.7 million. That was lower than expected for Alec Gutierrez, a senior market analyst with the car shopping site Kelley Blue Book. Still, he’s
maintaining his full-year forecast of 17.1 million sales. Mark LaNeve, Ford Motor Co.’s U.S. sales chief, said automakers have been preparing for lower U.S. sales this year. He doesn’t see July as an acceleration of the downward trend. He said GM’s decision to cut sales to low-profit rental car fleets by 81 percent — or 11,200 vehicles — was a big factor. Ford also cut fleet sales by 26 percent, and had to stop sales of its Transit commercial van for a few weeks while it performed a recall. “We’re still operating at a very high level,” LaNeve said. Automakers continue to see healthy profits thanks to consumers’ preference for SUVs. Car shopping site Edmunds.com said the average price paid for a new vehicle in July was $34,558, 2 percent higher than the same month a year ago. GM said sales of its recently updated
GMC Acadia SUV jumped 30 percent, while sales of Toyota’s RAV4 SUV rose 36 percent to 41,804, a monthly record. But car sales are plummeting, hurt by low gas prices and changing tastes. Sales of the Ford Fusion midsize sedan dropped 42 percent, while sales of the Chevrolet Spark subcompact fell a whopping 82 percent. Automakers ramped up deals in July, a trend that’s expected to continue for the rest of the summer as carmakers make way for 2018 models on their lots. Average interest rates on new-vehicle loans fell to a six-month low of 4.77 percent in July as more brands offered zeropercent financing deals, Edmunds said. Toyota was offering zero-percent financing for 72 months on a 2017 Toyota Camry sedan as the 2018 Camry arrived in dealerships.
Gutierrez said buyers can expect incentives to creep up by $200 or so per car in August and September. Automakers said Tuesday: — General Motors Co. said sales fell 15.4 percent to 226,107. GM saw double-digit percent declines at GMC, Chevrolet, Cadillac and Buick. Sales of GM’s best seller, the Chevrolet Silverado pickup, dropped 15 percent.
versus 11 percent. Producers of raw materials, which were early winners on expectations that they would benefit from a big infrastructure program, are no longer leading the market. The effect goes beyond stocks: Big rallies for yields on Treasury bonds and the dollar’s value against other currencies have also faded. So what’s keeping stocks at record heights? A return to strong profit growth for U.S. companies is one of the biggest reasons, analysts say. And some of the strongest growth is coming from companies that do business all over the world. Those businesses also happen to be the ones initially thought to be the biggest losers of Trump’s “America-first” policy goals. Tech stocks in the S&P 500 get more than half their sales from outside the country, for example, and they are benefiting as economies in Europe and across the developing world finally start to climb higher. Sales of Ford’s best seller, the F-Series pickup, rose 5.8 percent. — Fiat Chrysler’s sales fell 10 percent to 161,477. Its Jeep, Chrysler, Dodge and Fiat brands all saw declines, but Alfa Romeo sales were up. Ram truck sales were flat. — Honda Motor Co.’s sales slid 1.2 percent to 150,980. In a reverse, sales of the Civic small car rose 11 percent while sales of the CR-V SUV fell 12 percent.
— Toyota Motor Corp.’s sales rose 3.6 percent to 222,057. Toyota and Lexus trucks and SUVs climbed 17 percent but cars struggled. Sales of the Toyota Prius hybrid fell 26 percent.
— Nissan Motor Co.’s sales fell 3.2 percent to 128,295. Sales of Nissan’s redesigned Titan pickup truck more than tripled, and Infiniti luxury brand sales were up. But car sales dropped 11 percent.
— Ford Motor Co.’s sales dropped 7.5 percent to 200,212. Ford’s SUV sales were up 2 percent but car sales dropped 19 percent.
— Subaru brand sales gained 6.9 percent to 55,703. Subaru’s bestseller, the Outback SUV, was up 20 percent.