08162018 BUSINESS

business@tribunemedia.net

THURSDAY, AUGUST 16, 2018

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Fiscal promises must be kept - or else

$4.93 RBC silent on claim scam netted $800k

GOWON BOWE

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

T

HE Government must deliver on its commitment to fiscal responsibility the Bahamas Institute of Chartered Accountants (BICA) urged yesterday, describing as a “fortunate result” Moody’s decision to maintain this nation’s Baa3 rating.

Moody’s on Tuesday maintained the country’s Baa3 credit rating with a negative outlook, noting: “This outlook, it said, “reflects potential downside risks to the fiscal

consolidation process posed by weaker-than-expected growth, exposure to climate-related shocks in the form of hurricanes, and implementation risks associated with measures to rein in expenditure growth and increase revenue intake”.

Gowon Bowe, BICA president, told Tribune Business: “It’s a fortunate result. I don’t think it’s widely known but the managing director of Moody’s came into town as well because a number of the fundamentals were below what they would consider the median of similarly related countries. There was a great amount of focus by them in terms of

being satisfied as to where The Bahamas stacked up against its peers with similar metrics. I don’t think the report was too positive or overly negative.”

He added: “The harsh reality is nothing much has changed since they revised their rating, meaning there wasn’t any deterioration nor any substantial improvement. A negative outlook is something we have to be focused on because it means their leaning, if you will, is on the negative side as opposed to an upgrade.”

Moody’s has warned it would downgrade the rating if, over the next 12-18 months, it observes that government’s fiscal

consolidation efforts are “unlikely to reduce deficits to levels that would reverse the trend of rising debt ratios and lead to a stabilisation in government debt metrics”.

“They are really talking about execution. They highlighted lethargic growth for an extended period of time and the private sector has repeatedly said to the government that the focus has to be on economic growth and not only revenue enhancement measures,” Mr Bowe noted.

“The institutional strength except for Bank of The Bahamas is known. I

CHESTER COOPER

remains negative.”

His comments come after the credit ratings agency on Tuesday maintained the country’s Baa3 rating with a negative outlook.

“Moody’s points out that though deficits have fallen, debt ratios and actual debt have risen under this administration. But we already knew that and have explained that to this government,” said Mr Cooper.

“Moody’s appears reticent to get behind the government’s efforts at

think it’s positive they recognise that. The domestic banking and financial services system is relatively strong and provides a heavy amount of funding and capacity for the government. It’s a strength but will not be available forever. We have to look forward to execution of some of the plans we have announced. There is obviously a very close observation to what has been uttered and commitments as it relates to fiscal

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Opposition’s finance spokesman said yesterday Moody’s latest assessment should serve as a “wake-up” call to the Minnis administration, warning the next few months will be “critical”.

Chester Cooper, the Exuma MP, said in a statement: “Despite the hand-wringing of the prime

minister, the labelling of Bahamians as corrupt, the back loading of bills to inflate the prior year’s deficit, the firing of countless people from the public service, the unnecessary raising of value-added tax (VAT), the hubris of an adrift finance minister, and the clueless inability to accept that it has borrowed excessively with little to nothing to show for it, the credit rating for The Bahamas is unchanged and the outlook of the economy

Poachers decimate our southern fishing grounds

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE crawfish season has gotten off to a rocky start for fishermen in the southern Bahamas according to Bahamas Commercial Fishers Alliance (BCFA) vice-president Keith Carroll, who blamed poachers for leaving the fishing grounds “almost completely dead”.

The crawfish season began August 1 and runs to March 31.

“Fishermen in the northern Bahamas are doing alright. The southern Bahamas where the poachers fish all year round is almost completely dead.

We weren’t expecting anything because of what we saw with the poaching going on there and it turned out to be just as we feared,” said Mr Carroll.

Mr Carroll suggested that beefed up daily patrols by the Defence Force during the closed season are needed to help curb poaching as the government works to draft legislation which will introduce stiffer penalties.

Agriculture and Marine Resources Minister Michael Pintard said last week the Fisheries Act is currently being reviewed by an advisory committee which will present recommendations to the government in October over possible stiffer penalties for poachers.

MICHAEL PINTARD Forty-six Dominican poachers were recently fined over $3m over poaching convictions. The Dominicans were arrested

by RBDF vessel HMBS Madeira aboard their vessel “Ronnye”, approximately 20 nautical miles south east of Cay Lobos on July 8. The men were charged with illegal foreign fishing; possession of a grouper less than three pounds; possession of fresh crawfish during the closed season; possession of undersized crawfish and possession of prohibited apparatus.

Mr Carroll said local fishermen were watching closely to see what prison term could be imposed if the fines were not paid, telling Tribune Business the BCFA was advocating that lengthier prison terms be imposed on poachers.

“The fishermen are wondering if they don’t pay the fine what kind of jail time

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Tribune Business Reporter

nmckenzie@tribunemedia.net

fiscal consolidation and raises doubt that the measures put forward by the Minnis administration will bear fruit. We also already knew this and have meticulously pointed it out.

Moody’s points out that economic growth is low for The Bahamas – a glaring weakness that we have begged this government to address many, many times.”

Mr Cooper noted Moody’s had highlighted

ROYAL Bank of Canada (RBC) executives said yesterday they could not comment on the total dollar exposure or number of Bahamian customers affected by the recent “skimming” fraud, telling Tribune Business however the bank is “co-operating fully” with the authorities and looks forward to seeing the perpetrators “brought to justice”.

Jacqueline Taggart, pictured, RBC’s director of strategic and corporate communications for the Caribbean, confirmed to Tribune Business earlier this week that some of the bank’s Bahamian Visa debit and Visa credit card holders had fallen victim to “skimming”, as some irate customers reported “thousands of dollars” having been wiped off their accounts. The bank described the issue as “a coordinated and aggressive criminal effort”.

While some online reports suggested close to $800,000 had been stolen from Bahamian customers

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Months ahead “critical”, warns Cooper

By NATARIO MCKENZIE

By NATARIO MCKENZIE

PAGE 2, Thursday, August 16, 2018

RBC silent on claim scam netted $800k FROM PAGE ONE of the bank, Taggart told Tribune Business any figure at this point would be purely “speculative”.

“Unfortunately, RBC cannot comment on the specifics of the total dollar exposure or number of clients involved in this fraud as it is part of an open investigation. We can confirm RBC is co-operating fully with the authorities and looks forward to seeing the perpetrators brought to justice,” said Taggart.

“Statements alleging to provide specifics from other parties, no matter how

THE TRIBUNE legitimate they may appear, should be considered speculative as RBC does not share specific information about its clients publicly and will not compromise this important investigation by providing these details.”

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Fiscal promises must be kept - or else FROM PAGE ONE responsibility.”

Commenting on the impending fiscal responsibility legislation and fiscal rules expected to be tabled in the fall, Moody’s said government will need to prepare and implement adjustment plans should deviations from the rules happen.

“We consider that establishing these rules in law will be an important step towards strengthening the institutional arrangements that guide fiscal policy in The Bahamas. Moreover, equally important will be

the government establishing a track record in terms of the reporting requirements set by the legislation, therefore enhancing transparency, and meeting the targets set in the rule,” said Moody’s.

“What I think should be highlighted is their comment on the peg stability because there has been a lot of chatter by the public about the Bahamian dollar being overvalued and on the verge of being devalued. That is absolute and utter nonsense and both political parties have done it when in opposition. It is something that has to stop.

“This is one of the first time I have seen Moody’s or S&P outright speak to the strength and stability of the peg. They highlight that because of the peg’s ability to affect monetary and fiscal policy is constrained and they don’t give government credit for some of the positive results on the fiscal and monetary front because they don’t have the ability to do otherwise because of peg. That means Central Bank will constrain what they borrow and what they are able to do with foreign currency and that will provide a natural barrier for less than wise decisions.”

Months ahead “critical”, warns Cooper FROM PAGE ONE that contingent liabilities in state-owned enterprises and the Bank of The Bahamas pose a great risk to credit worthiness.

“This comes as the government announced its intention to nationalise a barely functioning hotel for tens of millions of dollars, in order to save jobs – though it has yet to articulate any concrete plan to make this a reality. We reiterate that our faith in this administration running any business is perilously low. Concurrently, this administration’s handling of BPL, after condemning

the Progressive Liberal’s Party’s (PLP) management of it, has proven to be disastrous.,” said Mr Cooper.

He added: “For better or worse, this government has hinged all our fortunes on the collection of increased revenue through a massive hike in value-added tax and gaming taxes; though they still have not fully implemented a tax on patrons as they admit they did not do sufficient research into the impact of such a measure. They continue to undermine their own revenue targets with half-baked policies and concessions.Moody’s has saId in clear language

that it will downgrade The Bahamas should this fiscal consolidation plan, replete with holes, not pan out.

Were it not for Baha Mar, this administration would have nothing but a series of blunders on its hands.”

Mr Cooper said government should consider that Moody’s has “extended its probation” and the next few months will be critical.

“Any unplanned large expenditures early in the fiscal year such as the Grand Lucayan hotel acquisition or shortfall in revenue targets will be sure to lead to a downgrade,” he said.

POACHERS DECIMATE OUR SOUTHERN FISHING GROUNDS FROM PAGE ONE they would get. It’s good to to see that someone realised what they are doing and is putting their foot down,” said Carroll.

“The Fisheries Act is being revised right now.

Myself and some other fishermen as well as different groups are a part of that process. We are making recommendations for stiffer penalties.

BAHAMIAN SPINY LOBSTER It’s going to Parliament hopefully in October and

hopefully it will pass and we will see a lot of changes in the fishing industry. We are recommending the fines for poaching will be higher and that significant jail time be imposed on the captain among other things. I don’t know if they will approve all of our recommendations but I know whatever we are asking for is for the betterment of our country and to protect the industry for future generations,” Carroll said.

BAHAMAS POWER AND LIGHT COMPANY LTD. VACANCY NOTICE

ACCOUNTING OFFICER A vacancy exists in the Company for the position of Accounting Officer.

The incumbent will achieve Company objectives by: • • •

Preparing performance reports for division, department and sections; Assisting with the coordination of the corporate budget; Calculating and recording monthly generation fuel costs (hedging). This involves reviewing and analyzing monthly station reports of fuel usage, cross-referencing fuel deliveries with suppliers’ invoices, converting fuel calculations and entering information into the relevant journals;

•

Reviewing and reconciling general ledger accounts to the subsidiary ledger. This includes the fuel and stores inventory (spare parts) accounts; Maintaining a data base file for fuel purchases; Calculating and logging stamp taxes and customs duty on fuel purchases and makes the necessary journal entries; Preparing reports (e.g., fuel cost variance analysis and overtime) to be used by management for sales and production forecasting and monitoring overtime expenditure; Assisting with the review and preparation of the bank reconciliation reports for Eleuthera and Abaco; Reviewing accounting work (e.g., billing, accounts payable, cash receipts, etc.,) for BPL Eleuthera, and Abaco, and corrects and approves for general ledger posting; and Performing a variety of other related duties including preparing yearend financial schedules and reports for BPL Eleuthera and Abaco.

This includes accounts receivable, bad debt, unbilled revenue etc).

• • • • • •

Job requirements include but not limited to: • • • • • • •

A minimum of a Bachelor’s Degree in Accounting or equivalent qualifications; 4+ years of experience in financial or performance reporting; Good judgement and sound reasoning ability; Sound knowledge of cost and managerial accounting and statistics; Sound knowledge of project management and related job costing system; Ability to communicate effectively both orally and in writing; & Computer skills and the ability to operate standard office equipment.

Interested persons should apply to Afuture@bplco.com on or before: August 16th, 2018.

Only candidates meeting the criteria will be contacted.

Blue Hill and Tucker Roads, P.O. Box N-7509, Nassau, Bahamas | T: 242.302.1000 | F: 242.323.6852 |www.bplco.com

Bahamas Power and Light Company Ltd.

BUILDING FOR BETTER

THE TRIBUNE

Thursday, August 16, 2018, PAGE 3

Turnover: Preventing it and dealing with the aftermath NEW YORK Associated Press A TIGHT labour market and a shrinking pool of talented workers make “I’m quitting” some of the most dreaded words a small business owner can hear.

Staff turnover is a fact of life, but it’s particularly painful at small companies competing with larger businesses for workers. Owners learn they must make staff retention efforts a priority — including mentoring or changing workplace policies — and do some soul-searching if turnover increases.

When five out of 22 staffers left Dash Design last year, owner David Ashen understood that some naturally wanted to move on to new challenges. But he also discovered after talking to employees that they felt the culture in his New York-based interior design company had changed since he brought in a new business partner. Ashen realised he needed to help employees feel more connected to the business, and focused on mentoring younger staffers.

“We ask them, where do you want to be in six months or three years, and create a path to do that.

When we failed to do that, people were less satisfied in their work,” he says.

Ashen has also started letting workers have flexible schedules and bring their dogs to the office.

Many companies find that a staff can be stable for some time, and then several employees leave at once.

And with fewer employees, small businesses aren’t as able as big corporations to shuffle assignments when people leave.

At The SEO Works, a digital marketing company in Sheffield, Britain, five staffers out of 30 left in a short period last year for a mix of professional and personal reasons, managing

DASH Design’s founder David Ashen poses for a picture in his office in New York. When five out of 22 staffers left Dash Design last year, owner Ashen understood that some naturally wanted to move on to a new challenge. But he also discovered after talking to employees that they felt the culture in his New York-based interior design company had changed since he brought in a new business partner. Ashen sought help from a team-building expert to help employees feel more connected to the business, and he focused on mentoring younger staffers.

Photo: Seth Wenig/AP director Ben Foster says.

When staffers who are on teams leave, co-workers can pitch in while a replacement is hired, Foster says.

But when employees who work by themselves quit, the managing director “just had to step up and take on two roles,” he says.

The company has been changing its policies to try to improve retention, and recently also introduced flex time.

Owners find that one big thing they can do is be clear with younger workers who want to know there’s a chance for them to grow and develop new skills.

Jeff Rizzo and business partner Matt Ross aim for each of their ten staffers at product review website RIZKNOWS to understand what they need to do to win a promotion or a raise.

“If employees do not see a clear career path or

opportunity for advancement, chances are they’ll look elsewhere after a year or two,” Rizzo says.

Many of the employees at the Reno, Nevada-based company have been hired straight out of college.

Rizzo is philosophical about young people wanting to try something new eventually — but, he says, “we’re going to fight like heck to keep them.”

Companies that want to reduce turnover need to let employees know they’re valued and that what they do matters, says Leigh Branham, owner of Keeping the People, a human resources consultancy.

“People want to feel their job is meaningful,” Branham says. He suggests telling staffers, “I want you to know why you do what you do — and why it’s important to this company.”

Staffers also need regular

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feedback, and not have to wait for an anxiety-provoking annual review, says Nina Velasquez, a senior vice president at North 6th Agency, a public relations firm based in New York and with offices in Toronto and Boulder, Colorado. North 6th Agency gives its nearly 60 employees monthly feedback that is intended to be part of their training and development.

The company also has a rewards system allowing staffers to accumulate points in return for good performance. The points can be redeemed for perks including cash, commuting passes, groceries and time off.

Small businesses that hire freelancers, particularly those that don’t offer steady work, also struggle with turnover. TrivWorks,

which runs trivia contests for corporate entertainment and team-building exercises, uses freelancers to emcee and produce between 50 and 100 events a year. The events require skills like running something akin to a game show, and the people who have them are hard to find, owner David Jacobson says. His approach is to treat these workers as if they were employees.

“I pay excellent wages, work to advance their career goals/development, and will basically bend over backward to keep them happy,” says Jacobson, who is based in Los Angeles and also has events in New York.

When staffers say they’re leaving, some owners will try to persuade them to stay, offering money or

benefits like flextime and working remotely. Sometimes it works, but Casey Hill, who uses freelance artists, graphic designers and videographers for his board game manufacturer, Hill Gaming Co, finds the opposite is true.

“By the time staffers inform you they are leaving, 95 percent of the time it is too late,” says Hill, whose company is based in Camarillo, California.

His suggestion: Always know what your next step is when a worker leaves. Hill has a team of three or four backups, and he also hires people who have multiple skill sets.

“We need to have crosspollination of skills so we don’t have substantial downtime on products,” he says.

PAGE 4, Thursday, August 16, 2018

A FIRST STEP IN MONEY MANAGEMENT INVESTMENT Bank, Royal Fidelity, is urging Bahamians to consider a brokerage account as an alternative form of investment, with one executive describing it as a “great first step” in money management and wealth creation.

Royal Fidelity began its investment and advisory service on Frederick Street, Nassau, 20 years ago and its experts advise on not just the country’s largest corporate mergers and acquisitions and initial public offerings but also to

an ever expanding base of individuals anxious to learn and capitalise on the firms’ knowledge base of creating and managing wealth.

Belinda Payne is the manager of the brokerage department and after ten years in an oft times

variable economy describes a brokerage BELINDA account as a first step PAYNE in generating income to build meaningful individual wealth.

“I think traditionally, a large sector of Bahamians have in their mind-set that the only way to save for retirement is to invest in apartments to get the rental income,” she said.

“I want to show them wastthat there’s more ways than ing it. one to earn an income. I say to That if they open a bro- my clients, kerage account with us I ‘It’s not how can explain to them, show much money you make them, that they can have it’s how much you save that many different kinds of really matters’.” investments – bonds, prefMs Payne explained erence shares, local stocks, the brokerage account mutual funds, that can as the vehicle to manage change their thinking about investments. money and how to keep “The owner deposits it, and grow it at a better cash into it to buy approinterest rate. We can give priate investments, usually their money a future!” related to their age, curMs Payne stressed that a rent financial standing and brokerage account opens life goals and objectives. the door to a whole new The brokerage account understanding of money keeps track of everything management and she’d like including cash which can to see more young people be added to at any time,” coming in. she said.

“Regardless of their age, When asked if there was I tell them if they’re seri- any one time better than ous about taking control of another to begin investing, their money, then a broker- Ms Payne said anytime is age account is the right way good, but right now was to start! It’s a great first step particularly good. in money management and “Right now it’s a low wealth creation, and I feel interest rate environment – strongly about how impor- the banks don’t really want tant it is for young persons to pay you any interest. So as well as those who’ve what better time to seek already got a financial start, out alternative income to begin understanding and streams?” she questioned. trusting the process. I think Like, for instance, how it teaches them a lot and BPL recently gave a packgives them something else age. Persons are coming in to do with their money as from the 40-45 age-group opposed to just putting it to say, ‘We’ve got this in the bank and or actually money. What can we do

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with it with you?’”

“The majority of persons I deal with are usually older because, besides walkins, I get a lot of referrals from my existing clients. So when referrals they come in, they’re usually looking for preservation of capital; they’re looking for income, so we’ll discuss the products that I would suggest to them, and then once we’ve done that they’re usually ready to open an account.”

“I get a lot of ‘walk-ins’ who say ‘I just want information, I just want to find out because I don’t really know enough about it.’ I tell them, whilst preserving your capital we offer you a better return on your money, your investment, and I show them the figures.”

“Sometimes there’s a fear, like, ‘Is this for real?

Am I really going to get six percent return or eight percent return, and what are you guys getting for that?’ They ask me, ‘what’s it going to cost me’ and ‘am I going to lose my money?’

Over time I’ve had a few clients call me and say, ‘You know, Belinda, I did an investment with you and I took a chance and I was afraid, but not anymore.’

They’ve been pleased with themselves for having the courage because everything has worked out.”

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Thursday, August 16, 2018, PAGE 5

Fed rate policy unintentionally pressures emerging economies WASHINGTON Associated Press PRESIDENT Recep Tayyip Erdogan is blaming the United States for Turkey’s financial crisis, ignoring homegrown problems like high debts, raging inflation and his own erratic policies.

Yet one of the threats facing Turkey and other emerging-market countries really is made-in-America: By ratcheting up US interest rates, the Federal Reserve has — unintentionally — led investors to pull money out of emerging markets like Turkey, strengthened the dollar’s value and made it harder for foreign companies to repay their dollar-denominated debts.

The resulting flight of capital into safer and higheryielding US investments has sent many emerging-market currencies tumbling. The MSCI Emerging Markets Currency Index has sunk nearly eight percent since early March.

Especially vulnerable are countries with weak economic fundamentals: Runaway inflation, bulging trade deficits, piles of foreign debt and paltry foreign-currency reserves available to intervene in the markets to help prop up their own currencies.

Turkey is Exhibit A: Inflation is running near 16 percent a year. The country buys much more than it sells abroad. Its borrowing binge has left Turkey highly vulnerable. Erdogan has rattled global investors by pressuring the country’s central bank not to raise interest rates — the conventional response to high inflation.

High interest rates normally help strengthen a nation’s currency. But they also tend

PRESIDENT RECEP TAYYIP ERDOGAN

to slow economic growth, something Erdogan clearly wants to avoid.

Erdogan has named his son-in-law as finance minister, blamed foreigners for his country’s woes and escalated tensions with Turkey’s longtime ally the United States.

On yesterday, Turkey said it was increasing taxes on US products like cars, alcohol and coal in retaliation for President Donald Trump’s move to double tariffs on Turkish steel and aluminum.

The two countries are feuding over Ankara’s decision to arrest an American pastor and try him on espionage and terrorism charges related to a failed coup attempt two years ago.

The Turkish lira’s value recovered a bit on yesterday, by five percent to around 6.05 lira per dollar, after the government acted to shore it up by reducing the daily limit in bank foreign currency swap transactions. But even with yesterday’s gain, the lira is down 38 percent against the dollar since early March.

Yet among the currencies of emerging economies, it’s

hardly alone: Argentina’s peso has lost 34 percent over the same period. That nation is grappling with a corruption scandal and double-digit inflation.

Argentina’s central bank just jacked up its benchmark rate to 45 percent.

Likewise, South Africa’s rand has tumbled 18 percent. That country’s economy hasn’t achieved even a modest two percent annual growth in five years.

And it runs a gaping deficit in its current account, the broadest measure of trade.

A crumbling currency inflicts many damaging consequences: Companies that borrowed in dollars — the global reserve currency — have to come up with steadily more money in their local currencies to repay US dollar debts. Having to do so also raises risks for the banks that lent to them.

That’s the kind of squeeze that ignited the catastrophic 1997-1998 Asian financial crisis. A currency disaster in Thailand infected the entire region, and East Asian economies absorbed devastating damage.

Fears of a replay have gripped financial markets as Turkey’s crisis has intensified.

“Contagion” is the word analysts use to describe their nightmare of seeing Turkey’s problems spread across the developing world.

Still, most economists remain optimistic for now that another such crisis can be avoided. For one thing, Turkey’s economy is uniquely mismanaged.

“Turkey is the No 1 country we had our eyes on for a potential financial crisis in the Obama administration,” said Jason Furman, a Harvard economist and a former chief economist for President Barack Obama.

Turkey’s “economic circumstances are so different than many other emerging markets,” Furman said, referring to the country’s debts and Erdogan’s unconventional policies.

And emerging-market countries learned lessons from the debacle two decades ago. Many piled up reserves to fend off speculative assaults on their currencies. At the start of 1997, emergingmarket countries’ reserves amounted to barely six percent of their economic output. Now, they equal nearly 18 percent, according to the Institute of International Finance, a banking trade group.

“Emerging-market countries, on the whole, have much stronger financial positions than they did 20 years ago,” the Wells Fargo Investment Institute said in a report on Tuesday. Their

foreign debts, for instance, have fallen from 38 percent of economic output in 1999 to 29 percent last year.

What’s more, emergingmarket economies, for the most part, appear relatively stable. The International Monetary Fund expects them to collectively register growth of roughly five percent this year and next, which would be the best showing since 2013.

Turkey’s troubles are “unlikely to trigger a meltdown — just a fair bit of volatility in currency and financial markets,” said Eswar Prasad, a Cornell University economist and senior fellow at the Brookings Institution.

“Turkey is in a crisis because of a particular potent mix of bad economics mixed with even worse politics,” Mandy Xu, a Credit Suisse analyst, wrote in a research report.

More worrisome, Xu and others say, is the prospect of a sharp slowdown in the Chinese economy, the world’s second-largest after the United States.

PAGE 8, Thursday, August 16, 2018

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Tighter regulations could take bite out of Airbnb profits NEW YORK Associated Press AIRBNB faces tightening regulations in New York City that could take a big bite out of its profits, and on yesterday the short-term rental company offered a counter-measure designed to appease hostile politicians: a $10m contribution to charities.

At a Manhattan news conference, officials of the San Francisco-based company said the money is just a taste of what New York’s city and state governments could reap to benefit New Yorkers struggling with rising rents, homelessness, health care and education if some restrictions were loosened while imposing hotel-style taxes. Most legal rentals for fewer than 30 days now require the owner’s presence.

Last week, Mayor Bill de Blasio signed a bill that requires Airbnb to reveal the names and addresses of hosts, as well as whether they’re renting out a room or a whole apartment, allowing the city to crack down on illegal listings and impose fines. Critics say such listings are pushing up rents for New Yorkers by diminishing the number of available properties.

The $10m is going to seven nonprofits: The New York Immigration Coalition; the

New York Mortgage Coalition; the New York State Rural Housing Coalition, Inc.; Women in Need; the Gay Men’s Health Crisis; the NYC Foundation for Computer Science; and the Abyssinian Development Corp.

Josh Meltzer, the company’s head of public policy for the Northeast region, said taxes from Airbnb rentals would top an estimated $100m a year and could be used to bolster such organisations.

“These are all organisations that typically receive tax money from government, so these are the types of programmes that could be funded with upwards of $100m per year,” Meltzer said.

The New York City Council voted last month to pass the legislation signed by de Blasio to go into effect in February 2019.

Airbnb has accused council members of being biased because they’ve received campaign contributions from the hotel industry competing for clients in one of the world’s largest Airbnb markets.

The New York state Assembly and Senate have yet to vote on legislation affecting the city that would allow short-term rentals not requiring the owner’s presence.

Asked when names and addresses of hosts would be released, Meltzer said, “We have six months to figure this out.”

THE TRIBUNE

Thursday, August 16, 2018, PAGE 9

Nuke talks uncertain, US hits shippers with NKorea sanctions WASHINGTON Associated Press WITH little apparent progress in denuclearisation talks with North Korea, the Trump administration on yesterday stepped up pressure on the isolated nation by punishing three foreign companies accused of helping the North evade international sanctions.

The Treasury Department imposed sanctions on the companies, which are based in China, Russia and Singapore, as well as the head of the Russian firm, that block any assets they may have in US jurisdictions and bar Americans from doing business with them.

The move came as the administration continues to press for full compliance with international sanctions against North Korea even as it seeks movement from Pyongyang on the denuclearisation commitment North Korean leader Kim Jong Un gave to President Donald Trump at their June summit in Singapore.

“Treasury will continue to implement existing sanctions on North Korea, and will take action to block and designate companies, ports and vessels that facilitate illicit shipments and provide revenue streams to the DPRK,” Treasury Secretary Steven Mnuchin said in a statement, using the initials of the North’s official name, the Democratic People’s

NORTH Korean soldiers salute as others bow before the giant bronze statues of late North Korean leaders Kim Il Sung and his son Kim Jong Il during the anniversary of the end of World War II and liberation from Japanese colonial rule in Pyongyang, North Korea yesterday. North Korea has marked the anniversary with a series of ceremonies ahead of what is expected to be a much bigger event next month, the 70th anniversary of its national foundation day.

Photo: Ng Han Guan/AP Republic of Korea. “Consequences for violating these sanctions will remain in place until we have achieved the final, fully verified denuclearisation of North Korea.”

Two months since the Trump-Kim summit, there has been little visible evidence of progress on denuclearisation. While the North has maintained its halt on nuclear and missile tests, and has made some goodwill gestures — returning the suspected remains of American soldiers killed during the Korean War and dismantling some parts of a missile engine facility — it has yet to roll back its nuclear weapons programme.

Instead, it has railed against US demands, arguing that it has already made concessions that must be reciprocated with sanctions relief if it is to make more.

The administration has countered, as Mnuchin did in his statement yesterday, that sanctions will not be lifted until denuclearisation is complete.

Secretary of State Mike Pompeo has made that point repeatedly, including immediately after the last of his three visits to Pyongyang last month and earlier this month at an Asian security forum in Singapore.

Pompeo has said that while sanctions relief must wait for denuclearisation, other

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confidence-building steps are possible beforehand.

He has refused to say what those might be, but North Korea and South Korea, which held a highlevel meeting earlier this week to organise a new summit between their leaders in September, are pushing for a declaration of the end of the 1950-1953 Korean War, which ended with an armistice and not a peace treaty. The US has been coy on whether it might go along with such a declaration, which would fall short of a formal treaty and would not be legally binding.

On Tuesday, after Pompeo spoke to South Korean Foreign Minister Kang Kyung-wha to review the latest round of North-South talks, the State Department said the US was open to a “peace mechanism” but is more concerned with denuclearisation.

“We support a peace regime, a peace mechanism by which countries can move forward toward

peace,” department spokeswoman Heather Nauert said. “But what our focus is, our main focus is on the denuclearisation of the Korean Peninsula and that’s something we’ve been very clear with many governments about.”

Pompeo, in a tweet about his phone call with Kang, said the US and South Korea would continue to cooperate closely on “the final, fully verified denuclearisation” of North Korea but stopped short of claiming progress on that front.

“We believe progress can be made,” he said.

In the apparent absence of progress, Treasury moved ahead yesterday with the new sanctions.

The companies targeted are the China-based Dalian Sun Moon Star International Logistics Trading Co and its Singapore-based affiliate, SINSMS Ltd, along with Russia’s Profinet Ltd and its director general.

They are accused of helping North Korea evade international sanctions by re-routing exports and imports through Chinese and Russian ports.

URGENT NOTICE

To: Carl Hanlon Contact: Brown’s Boat Basin Nassau, Bah Tel: 393-3331 or rmb43@hotmail.com

PAGE 10, Thursday, August 16, 2018

THE TRIBUNE

STOCKS TUMBLE AS INVESTORS FRET ABOUT CHINA’S GROWTH

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NEW YORK Associated Press DEEPENING worries about global economic growth, particularly in China, set off a rout in riskier assets including technology stocks, copper and crude oil yesterday.

US retailers took a drubbing after Macy’s reported weaker sales.

An unexpected drop in profits for Chinese tech giant Tencent surprised investors and added to some recent concerns about the health of China’s economy.

Tencent, a gaming and messaging company, is the most valuable technology company in China.

Earlier this week, reports on growth in factory output, consumer spending and retail sales in China were all slower than expected.

Large technology companies including Alibaba and Baidu of China and US.tech giants including Facebook and Microsoft fell.

Oil prices sank and copper plunged to its lowest price in a year as investors worried about the health of the global economy. The S&P 500 index had its biggest decline since late June while traditionally safe investments like bonds and high-dividend stocks rose.

“This year we’ve seen slower growth. Everyone expected that,” said Kate Warne, an investment strategist for Edward Jones.

“Over the last couple of months it looks like growth has been slower than everyone expected.”

The S&P 500 slid 21.59 points, or 0.8 percent, to 2,818.37. Earlier it fell as much as 1.3 percent.

The Dow Jones Industrial Average fell 137.51 points, or 0.5 percent, to 25,162.41. The Nasdaq composite dropped 96.78 points, or 1.2 percent, to 7,774.12.

The Russell 2000 index of smaller-company stocks sank 21.91 points, or 1.3 percent, to 1,670.67.

Jefferies & Co analyst Karen Chan said Tencent’s revenue was also disappointing, mostly because of weak results from its mobile gaming business.

Tencent’s stock fell 3.6 percent in Hong Kong. The

MARKET REPORT WEDNESDAY, 15 AUGUST 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,964.90 | CHG -16.91 | %CHG -0.85 | YTD -98.67 | YTD% -4.78 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.10 1.39 0.19 3.92 9.16 6.60 5.30 12.00 2.71 1.77 8.21 6.21 12.00 7.00 13.67 13.00

52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 2.90 8.50 6.09 3.33 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

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

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class 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

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

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

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 4.01 17.43 9.09 4.06 1.00 0.18 2.90 9.13 6.15 3.99 11.42 2.77 1.75 7.52 6.21 12.00 6.36 3.75 13.00

CLOSE 4.01 17.43 9.09 4.06 1.00 0.18 2.90 9.13 6.15 3.75 12.50 2.75 1.75 7.61 6.21 12.00 6.36 3.75 13.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.24 1.08 -0.02 0.00 0.09 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

CLOSE 100.00

CHANGE 0.00

108.32 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 108.39 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

4,393 1,000

VOLUME

EPS$ 0.268 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 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580

P/E 15.0 18.7 N/M 14.3 N/M N/M -2.9 14.3 10.7 21.9 19.9 27.0 7.6 N/M 11.4 17.7 8.8 13.5 20.6

YIELD 2.49% 6.48% 0.00% 5.67% 0.00% 5.56% 0.00% 7.78% 3.58% 3.20% 4.96% 2.18% 4.00% 1.10% 5.15% 4.17% 3.14% 3.20% 4.46%

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%

MATURITY 19-Oct-2022 ############### 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

MUTUAL FUNDS 52WK HI 2.16 4.16 2.00 180.30 157.58 1.56 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.50 1.62 1.58 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

NAV 2.16 4.12 2.00 180.30 155.10 1.56 1.70 1.65 1.09 7.27 8.32 6.48 11.32 11.71 10.31 9.93 8.45 11.20

YTD% 12 MTH% 1.87% 3.98% -0.44% 4.28% 1.05% 2.26% 0.90% 3.44% 1.11% 6.05% 2.14% 4.33% 0.17% 4.01% 1.67% 4.18% -0.96% 0.73% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 30-Jun-2018 30-Jun-2018 29-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jul-2018 30-Jun-2018 30-Jun-2018 30-Jun-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

US-listed shares of online retailer JD.com fell 4.5 percent to $32.36 and web search company Baidu gave up 1.3 percent to $213.47.

US crude sagged three percent to $65.01 a barrel in New York and Brent crude, the standard for international oil prices, lost 2.3 percent to $70.76 a barrel in London.

Copper tumbled 4.5 percent to $2.56 a pound, its lowest price in more than a year.

Copper is considered an important economic indicator because of its uses in construction and power generation, and copper futures have fallen more than 20 percent since they hit an annual high of $3.30 a pound in early June.

Macy’s plunged 15.9 percent to $35.15 after reporting that its sales slowed in the second quarter. Kohl’s shed 5.8 percent to $74.39.

Department stores have struggled for years as investors worried about the growing threat of Amazon and other online shopping options. Yesterday’s losses interrupted a huge rebound for the stocks in 2018.

Bond prices rose. The yield on the ten-year Treasury note fell to 2.86 percent from 2.89 percent.

Banks fell because of a sharp drop in interest rates, which make mortgage and other loans less profitable.

High-dividend companies like utilities and phone companies did better than the rest of the market. Investors often treat them as an alternative to bonds and buy them when yields fall.

Turkey’s currency stabilised and rose after authorities sought to ease liquidity problems in the banking system. But Turkey imposed $500m in tariffs on US goods as tensions between the countries increased.

There is also no sign that Turkey’s president will let the central bank raise interest rates, which economists say it should do urgently to support the currency.

The Turkish ISE National 100 index slumped 3.4 after a gain of 0.8 percent on Tuesday. Indexes in other emerging markets including Brazil and Russia skidded as well.

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

URGENT NOTICE

To: Leo Huber Jr. or Anastasia Huber Contact: Brown’s Boat Basin Nassau, Bah Tel: 393-3331 or rmb43@hotmail.com

NOTICE Notice is hereby given that DEBORAH ANN-MARIE PALMER of #45 Bahama Palm Way, Freeport, Grand Bahama 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 signed statement of the facts within twenty-eight days from the 16th August, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

THE TRIBUNE

Thursday, August 16, 2018, PAGE 11

New Zealand moves to ban most foreigners from buying homes WELLINGTON Associated Press NEW ZEALAND has banned most foreigners from buying homes as it tries to tackle runaway housing prices.

Previously the housing market was open to investors worldwide, but the government passed legislation yesterday that allows only New Zealand residents to buy homes.

In recent years, there have been many anecdotal stories of wealthy foreigners from Silicon Valley and beyond buying ranches in picturesque rural New

Zealand as a “bolt hole” or escape option from a turbulent world.

There have also been stories of wealthy Chinese buyers outbidding New Zealanders on suburban homes in the main city of Auckland.

Statistics indicate about three percent of New Zealand homes are being sold to foreigners, but the amount rises to five percent in the scenic Queenstown region and 22 percent in central Auckland.

Last month, the directors of the International Monetary Fund executive board said they encouraged New Zealand to

reconsider the ban, which they thought would be unlikely to improve housing affordability.

But the government says there is no doubt that foreigners are driving up prices, and the only question that remains is by how much. The new law fulfils a campaign pledge by the liberal-led government which came to power last year.

There are some exceptions. Foreigners with New Zealand residency status will still be able to buy homes, as will people from Australia and Singapore, thanks to existing free-trade agreements.

Foreigners who already own homes in New Zealand won’t be affected. And overseas buyers will still be able to make limited investments in large apartment blocks and hotels.

“We’re here today to take another step toward restoring the great New Zealand dream of home ownership,” said Associate Finance Minister David Parker.

He said it was the birthright of New Zealanders to buy homes at a fair price.

“This government believes that New Zealanders should not be outbid by wealthier foreign buyers,” Parker said. “Whether it’s a beautiful lakeside or oceanfront estate, or a modest suburban house, this law ensures that the market for our homes is set in New

Zealand, not on the international market.”

Opposition lawmaker Judith Collins said the bill was unnecessary.

“We oppose the bill because we don’t believe that it actually fixes any problem,” Collins said. “It is, in fact, nothing more than an attempt to justify some of the policies of the incoming government.”

GN 2073

GN 2070

GN 2071

GN 2072