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BPL faces ‘consumer Oil explorer in 2020 first half war’ with class action well drill goal

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FORMER Cabinet minister yesterday said he is pursuing a class action lawsuit over Bahamas Power & Light’s (BPL) outages, and warned: “This is a straightup consumer war.” Damian Gomez, pictured, minister of state for legal affairs under the Christie administration, told Tribune Business that Bahamians needed to stand up for their rights and stop passively accepting poor service and high costs from their utility providers.

• Ex-minister ‘actively pursuing’ lawsuit • Says: ‘Time for consumers to stand up’ • Unions backing outage compensation bid Disclosing that he had already obtained the backing of the hotel union, the largest private sector union, for his legal bid to secure compensation for Bahamian consumers and businesses over BPL’s daily load shedding and blackouts, Mr Gomez said he was “fairly confident” such an action could be filed within the next three weeks. Arguing that the Electricity Act 2015 imposes

Just two bidders left for Nassau Flight Services By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net JUST two bidders remain in the race to acquire Nassau Flight Services (NFS) ahead of a key presentation next Tuesday to the committee charged with selecting the best offer. Algernon Cargill, pictured, director of aviation, confirmed yesterday to Tribune Business that one of the three bids received by the government had already been “eliminated” with the process “very near” to completing its evaluation of the remaining contenders. Also affirming that

Tribune Business’s knowledge of next week’s upcoming presentations was “accurate”, Mr Cargill explained: “Part of the due diligence process is to meet with the bidders to discuss their proposal and ensure the committee fully understands the details.

SEE PAGE 5

Energy tax breaks urged amid ‘double whammy’ concern By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government was last night urged to swiftly grant tax breaks for the importation of generators and solar systems to mitigate a “double whammy” from Bahamas Power & Light (BPL). Jeffrey Beckles, the Chamber of Commerce’s chief executive, told Tribune Business that few retailers “can handle” a hit in both the Back-to-School and Christmas shopping seasons if the state-owned

JEFFREY BECKLES utility continues its daily load shedding through year-end. Speaking as the chamber issued a formal statement on New Providence’s energy supply crisis,

SEE PAGE 7

“strict liability” on BPL for failing to provide reliable energy supply, Mr Gomez said the utility and its Bahamas Electricity Corporation (BEC) predecessor appeared to have little defence given that it “seems common ground they have not properly managed their plant”. He added that liability could also extend to the

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

AN OIL explorer yesterday hailed its “rapid progress” towards drilling a first exploratory well in Bahamian waters during the 2020 first half regardless of whether it secures a joint venture partner. The Bahamas Petroleum Company (BPC), in a statement, said it had laid the foundation to meet its licence obligations by signing a series of financing and service provision contracts with a variety of oil

industry players. Revealing that these arrangements could slash the cost of spudding its first exploratory well by more than two-thirds, BPC added that they would also enable it to adjust its business model and proceed without a joint venture partner should the need arise. While making clear that its preference is to secure such partner, known as a “farm-in”, to reduce its own risk and capital costs, and provide additional technical expertise, BPC said it

SEE PAGE 6

PAGE 2, Thursday, August 22, 2019

THE TRIBUNE

PICTET EXECUTIVE MEETS MINISTER ALBERTO Valenzuela (second from left), equity partner at Pictet Wealth Management, visited Elsworth Johnson, minister of financial services, trade and industry, and immigration (third from left), at his office yesterday. Pictured from left are: David Davis, permanent secretary, Ministry of financial services, trade and industry and immigration; Mr Valenzuela; Mr Johnson; and Shawn A Forbes, senior vicepresident of legal, Pictet. Photo: Derek Smith/BIS

BTC INVESTS $3M TO BOOST SMART SCHOOLS THE Bahamas Telecommunications Company (BTC) has presented 2,500 tablets to the Ministry of Education to support its smart schools’ initiative. BTC’s chief executive, Garry Sinclair, told the public schools administrators conclave on Monday that the company is also delivering on its commitment to provide broadband connectivity to 127 schools across the country. “We believe that education is perhaps the single most important investment for a successful future. BTC is injecting almost $3m in capital expenditure to improve internet access and to provide 2,500 tablets,” Mr Sinclair said. “This is indeed an indelible moment in our history,

ADMINISTRATORS taking a closer look at a Samsung tablet. as we extend the same promise of connectivity to every child in these 13 islands. Access to bestin-class broadband for all students is not just a needle mover, but a fundamental right to empower every student to succeed in

a global economy.” All public school administrators will also receive a tablet. BTC has partnered with Samsung to provide training and learning resources for the administrators on how to maximise use of tablets and

smart technology in the classroom. “We are confident that the inclusion of smart technology will definitely enrich the learning experience for students and teachers”, Mr Sinclair said. BTC is providing broadband connectivity to schools in Abaco, San Salvador, Mayaguana, Rum Cay, Exuma, Long Island, Inagua, Berry Islands, Bimini, Crooked Island, Cat Island, Andros and New Providence. The connectivity project is the foundation for the government’s smart schools’ initiative, aimed at building a connected and smart nation. BTC and the Ministry of Education signed the agreement in September 2018.

THE TRIBUNE

Thursday, August 22, 2019, PAGE 3

SKY EMPLOYEE DISPUTE HEARING NEXT THURSDAY

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE government’s top labour official yesterday confirmed that a hearing on the trade dispute filed by Sky Bahamas employees will take place next Thursday. John Pinder, director of labour, confirmed to Tribune Business that the matter has been filed and said: “There is a hearing set for next week Thursday in relation to that matter. Those employees are complaining about salaries owed and severance pay. We’ve actually only seen three disputes so far.” The trade disputes are just the latest development in a saga where the airline’s

JOHN PINDER

CAPT RANDY BUTLER

commercial future is looking increasingly bleak, with hopes for its revival fading amid the ongoing dispute with the Bahamas Civil Aviation Authority over the renewal of its Air Operator Certificate (AOC). Captain Randy Butler, Sky Bahamas’ principal, told Tribune Business this week that the airline’s

staff “have to do what they have to do”, with its near-two month grounding pushing him towards legal action against the industry regulator. Staff have been unpaid from the July 15 pay period. Confirming that the debt is owed, Captain Butler said he was simply unable to pay staff salaries or any other

regular operating expenses due to the Bahamas Civil Aviation Authority ordering that Sky Bahamas cease commercial flights from July 8 due to issues over its AOC. “The fact is I haven’t paid them and I have to pay them,” he told Tribune Business. “The fact is that pay day came on July 15 and we were grounded on July 8. That basically stopped our operation and dried up the funding we had. “We had to finance alternative flights for people who were booked to travel with us, we had to deal with charter companies, and I had to use my personal credit card to keep the business going at that time. That was important, because if we kept going I could

pay the people. “The staff have been a really good group of people, and most of them I’d like to continue to work with, but these people have to do what they have to do and I hope to get some relief to them before anything else comes up.” Sky Bahamas’ travails could likely not have occurred at a worse time for many of the 63 staff employed when it was grounded due to the rapid approach of Back-to-School expenses. Tribune Business sources revealed several employees have attempted to access their pension fund monies - so far without success. A notice was also posted at the weekend saying Sky Bahamas had been evicted

by its landlord, and directed all inquiries to two Glinton, Sweeting & O’Brien attorneys, Roy Sweeting and Giahna Soles-Hunt. “Effective Saturday, August 17, 2019, the previous tenant of these premises, Sky Bahamas Airlines, has been evicted and the premises have been secured and reoccupied by the owner, AOG Maintenance Company. The contents of the premises are presently destrained for rent,” the notice said. “Access to, and entry upon these premises for any reason by any person is forbidden save with the express permission of AOG Maintenance Company... Trespassers will be prosecuted to the fullest extent of the law.”

CHAMBER TEAMS UP BTC VSEP OFFER ‘BETTER, BUT NOT WHAT WE WANTED’ FOR CHINA TRADE VISIT By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

GERSHAN Major, left, and Sherrell Storr of the BCFA.

ATTENDEES during the information session for the trade mission. THE Bahamas China Friendship Association (BCFA) teamed with the Bahamas Chamber of Commerce (BCCEC) for an information session on the upcoming trade mission to China. The event allowed entrepreneurs, business owners and individuals to learn more about the joint trade mission to China, especially when it comes to finding suppliers, developing innovative ideas and enjoying cultural exchanges. Gershan Major and Donovan Moxey, the BCFA’s president and vice-president respectively, made the case for why Bahamian businesses should be a part of the mission. Jeffrey Beckles, the chamber’s chief executive, encouraged the private sector to use trade missions as tools for growing their companies. He pointed to the possible growth opportunities from exporting

products or services to a larger international market. Mr Major, meanwhile, also spoke to the advantages of joining the BCFA, especially when it came to future business, economic and cultural interactions with China. Mike Cunningham, of Bahamas Welding and Fire, gave his first-hand insights on doing business in China, while BCFA secretary, Sherrell Storr, presented travel details and moderated audience questions. After a vote, it was decided that the trade mission will be to the China Import and Export Fair (Canton Fair 2019), with a cultural visit to Beijing, from October 27 to November 3, 2019. Persons interested in obtaining more information on the mission can contact the Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC) at Phone: (242) 322-2145 or Email: info@thebahamaschamber.com.

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THE Bahamas Telecommunications Company’s (BTC) management union president yesterday said the carrier’s voluntary separation offer was “better but not what we were seeking”. Ricardo Thompson, head of the Bahamas Communications and Public Managers Union (BCPMU), told Tribune Business that the union was “pretty much staying out of” the VSEP exercise and will “wait and see” how it plays out given that managers remain ‘‘tight lipped’’

on their plans. “What has happened so far is we have been negotiating, or seeking to negotiate, what we consider a worthwhile package because the VSEP package on the table would have been one used for the last several years when they would have resorted to that,” Mr Thompson said. “The numbers that they are offering is not what we were seeking. It’s better than what was offered before, but not what we were hoping to have on the table. We said based on the economic situation in the country we can’t let our members go home with anything less than ‘x’ amount of years’ pay. “Again, because it’s

voluntary, we have no control over it. They came up with a package they thought was suitable and put it out. It’s up to the members to talk to their families and see if they think it’s something they can live with. It’s covering, I think, age 45-60,” he added. “They have four different categories thereabout. Some people might want to change career and move on. We are pretty much staying out of that part of it and waiting to see where it goes and do whatever we need to do afterwards.” BTC’s chief executive, Garfield “Garry” Sinclair, earlier this week said the company has put a “compelling” voluntary

separation offer on the table for staff wishing to exit the company. Speaking on the sidelines of an education conclave, he said that once the voluntary separation exercise “is behind us” the carrier will be poised for “real rapid growth”. Mr Thompson told Tribune Business: “The managers, in particular, are pretty much quiet on this. I reached out to the other union and they seem more vocal. We can’t get a count, and BTC wont give us a count. We don’t know how it’s going. I guess we will have to wait and see what happens. Our managers are very tight-lipped. I guess they are working it out privately.”

PAGE 4, Thursday, August 22, 2019

THE TRIBUNE

BPL faces ‘consumer war’ with class action

FROM PAGE ONE Utilities Regulation and Competition Authority (URCA), the energy sector regulator, on the basis that it had failed to implement “the consumer protection embedded” in the Electricity Act and effectively given BPL “a free pass” over its conduct. URCA’s chief executive, Stephen Bereaux, previously told this newspaper that the regulator had initiated a probe into BPL’s latest round of load shedding and outages some three weeks ago, but Mr Gomez yesterday argued it should have been doing much more to be “on top of” the situation. The ex-minister blasted BPL’s refusal to compensate consumers for the disruption, damaged equipment and loss of income as “really disgraceful”, adding that utilities in other countries would have offered clients credits to their bills in subsequent months. Revealing that he had resisted purchasing a standby generator in the hope electricity supply would improve, Mr Gomez added that Bahamians “should not be put to that level of expense” to acquire one. Branding as “unsustainable” the increased maintenance and fuel costs for those forced to run their generators daily, he said New Providence’s energy crisis had become a ‘life and death’ struggle for many elderly persons due to the exposure to heat stroke, and medicines and perishable food items being thrown away after they went bad. “I’m actively dealing

with it,” Mr Gomez told Tribune Business of his proposed BPL class action lawsuit. “I’m waiting for the Bahamas Chamber of Commerce to get back to me. One of the major unions has agreed to join it; that’s the hotel union. I’m waiting for the confirmations of affiliate unions, but it’s going to be a big group. “We’ll get there. I’m confident the unions are going to join in; fairly confident. The response has been pretty good so far. It will probably be three weeks, then we can go [and file]. I’m ready to go. I’m just waiting for the players to answer the call. Once we get enough in terms of numbers, we’ll file. We just need the numbers and we’ll be off to the races. “I’ve had enough, so we’re going to do something about it. It’s not political, it’s a straight-up consumer war. Somebody has got to stand up for the Bahamian consumer.” Mr Gomez did not specify the level of damages any class action legal filing will seek. He explained that all parties wishing to join it would need to “particularise their loss” in terms of income foregone, increased costs due to replacing damaged equipment, and other factors that would enable an overall “position as to liability” to be calculated. Using some sectors as examples, the former minister said claims from Airbnb and other vacation rental clients that the power outages had spoilt their vacation “could run into many millions of dollars”. And vacation rental landlords could also seek to recover any discounts they

had given their guests. Mr Gomez said hairdressers and barbers would also be able to calculate how many customers they had lost, “because once the power goes off that’s the end of them”. Explaining why he had decided to act in a social media posting, Mr Gomez wrote: “It’s time for Bahamian consumers to stand up and shake off the sense of victimhood. We have the right to a consistent, reliable supply of electricity. “The supplier, BPL, and its predecessor have failed us consumers. Our government has failed us. We have the statutory right of recourse before the Supreme Court. Let us exercise our rights by suing for compensation against BEC, BNPL, URCA and the Government. “If you believe in accountability, join the class action lawsuit. It is high time we protect ourselves from the rapacious bureaucracy which abuses the Bahamian electricity consumers. We must put an end to the deaths from heat stroke and other deaths caused by the power outages. Join the fight. Bahamians need to fight for the rights of Bahamians.” Asked whether Bahamians have been too accepting of mediocrity, and unwilling to hold those responsible accountable, Mr Gomez told Tribune Business: “I think in the past we have been. “That’s the reason for the language I used in my post. We seem to enjoy complaining to one another and not doing anything about it, but that has to change if we’re going to see any

improvements in utilities. It’s not just BPL; BTC and Cable Bahamas also have issues.” While load shedding and power outages have been common every summer, few New Providence residents and businesses would dispute that this is the worst it has ever been due to BPL’s generation capacity being 40 megawatts (MW) short of the level required to meet energy demand. Mr Gomez said the revised Electricity Act passed by the former Christie administration in 2015 had closed some of the loopholes that allowed BPL’s predecessor, BEC, to escape liability for the outages and disruption caused under its watch. While BEC was granted an “exemption” for outages and situations beyond its control, the ex-minister said this had been tightened under the new Act. And he added: “In this instance it seems common ground that the company was not properly managing the plant... “There’s enough information that we could go after BEC for at least five years, and against BPL from 2016 to the present. BPL is more exposed because the new Act in 2015, which came into force in January 2016, that’s only strict liability. There’s no exemption for nonsenses. I’m very confident of suing BPL. BEC has that defence but will have to show outages were beyond its control.” Mr Gomez argued that URCA also bore responsibility for the situation,

and explained: “The problem has been exacerbated because URCA has not done what the Electricity Act requires of them. “They were required to have BPL produce a paper on an arbitration system, which would be discussed by the public, and enable disputes to be resolved in a cheaper and quicker manner than if it went to the Supreme Court.” A consultation paper on such a dispute resolution mechanism was released by URCA this summer, ironically coinciding with when BPL began a daily threehour load shedding rotation that continues to affect all of New Providence. Mr Gomez, though, remained unimpressed, saying: “This is two years down the road. BPL has had a free pass because URCA has not fast-forwarded, in the way one would expect, the consumer protection embedded in the new Act. “They’re on the hock because of it. If you’re in a state of blackouts you’d expect the regulator to be on top of it before anyone else.” Having resisted purchasing a generator himself in the forlorn hope that BPL’s supply reliability would improve, Mr Gomez argued this was an expense Bahamians should not have to incur. Pointing out that Bahamians have a right to expect BPL will fulfill this most basic obligation, he added: “It’s really expensive. You can pay as high as $15,000 to $50,000 depending on the

size of the house. “Why should the public be put to that level of expense? When you buy a generator, the assumption is that it’s for emergency use, but you are using it for three hours a day. Maintenance costs go up, fuel costs go up. It’s just unsustainable.” Mr Gomez recalled how he went to the Central Detective Unit (CDU) recently to be present for a client’s interview with the police only to find the power off and the detainees being held outside. He was subsequently informed that the CDU’s generator had “burnt up” because it was being used every day. He also noted how an elderly relative of a secretary at his law firm was found dead from heat stroke in May due to the power being off. “That’s is actually very serious,” Mr Gomez said. “That’s how bad it is. To have politicians say we didn’t know it was this bad defies belief.”

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THE TRIBUNE

Thursday, August 22, 2019, PAGE 5

Just two bidders left for Nassau Flight Services FROM PAGE ONE “We eliminated one, so there are now two. We are meeting with them next week to review their proposals, and want to ensure we ask a few questions and get to know the principals who want to buy the company.” Mr Cargill declined to identify the two remaining bidders, but Tribune Business understands that Colin Ingraham and Robert Pantry, the former Royal Bank of Canada (RBC) and Scotiabank banker, are the principals involved in one of the groups. They are thought to be supported by RoyalFidelity Merchant Bank & Trust, which will raise the necessary financing. The aviation director, meanwhile, said the government-appointed evaluation committee had already assessed “in detail” the offers to acquire the state-owned airport ground handling services company. “We’ve had several meetings already and are well advanced in our process,” Mr Cargill added.

“The process has been transparent also.” The committee’s recommendations on any winning bidder will still require Cabinet approval, and Mr Cargill said it retains the option to suggest that all offers be rejected. Besides the aviation director, Tribune Business understands that the evaluation committee also includes former Central Bank governor, Wendy Craigg, who now chairs the Bahamas Civil Aviation Authority (BCAA) Board; Walter Wells; accountant Philip Stubbs; and Ryan Sands, an attorney with the Attorney General’s Office. Meanwhile, Dionisio D’Aguilar, pictured, minister of tourism and aviation, yesterday told Tribune Business he was not necessarily surprised that the Nassau Flight Services privatisation had attracted just three bidders. “We had no idea what we were going to receive, so I can’t say I was surprised,” he said. “A lot of people express interest but when there’s a bidding process and

they have to put together a proposal, that separates the men from the kids. Maybe that process brings about organic attrition that allows only serious bidders to move forward.” Affirming that the government remained committed to the privatisation, Mr D’Aguilar added: “Nassau Flight Services, as we’ve said on numerous occasions, is of the right size for a mid-size Bahamian company to absorb. “It probably needs a fresh look, and it needs fresh investment. Ninety-nine percent of its revenues go on payroll, so that does not leave much room for capital upgrades. It needs a new business plan, approach and also investment in

equipment and technology. “There are those that think the government should own everything. I think this [Nassau Flight Services] is probably best suited for a private sector entity to run and bring about the necessary investment in the business.” Mr D’Aguilar, too, said the government retained the option to reject all bids and “start all over again”. Nassau Flight Services’ annual $8m revenues place it well within the range of the Bahamian investor groups targeted by the government. The Minnis administration has long made clear that it views the company as “low hanging fruit” when it comes to

privatisation, outsourcing and getting the government “out of business”. It also sees the privatisation as part of its drive to create more Bahamian entrepreneurs, diversify the economy and spread the wealth, hence its insistence that foreign bidders need not apply given that Nassau Flight Services’ size makes it a prime candidate to remain in local hands. The ground handling services provider currently requires annual taxpayer subsidies of $2m, while the privatisation tender document laid out relatively modest growth prospects. Revenues from its main ground handling business projected to grow at two percent per annum over the next decade. And a downsizing of Nassau Flight Services’ 244strong workforce, featuring

166 full-time workers and 78 temporary staff, is almost inevitable given the need to better align costs with income. This, though, will not be easy given the presence of trade unions via the Airline, Airport and Allied Workers Union and an existing industrial agreement. Nassau Flight Services’ client base comprises British Airways, Air Canada, West Jet, Sunwing Airlines, InterCaribbean Airlines, Caribbean Airlines, COPA Airlines and Cubana Airlines at LPIA’s international terminal, and Jet Blue, Southwest Airlines, United Airlines and Silver Airlines at the US terminal. It also serves a host of charter and other operators, including Air France and Condor, while in Exuma it serves Air Canada and takes care of American Airlines and Air Cariabes in San Salvador.

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PAGE 6, Thursday, August 22, 2019

Oil explorer in 2020 first half well drill goal FROM PAGE ONE

was now positioned to drill its first well even if the multi-year search for an entity to share the burden proves fruitless.

Simon Potter, BPC’s chief executive, told the company’s shareholders yesterday: “Following our licences being extended to the end of 2020 by the Government of The Bahamas earlier this year, rapid progress

THE TRIBUNE has been made across our business. “Today we are pleased to update shareholders on a series of co-ordinated steps that the company has taken toward drilling of an initial exploration well during 2020, consistent with our licence obligations. “This includes a framework agreement for a rig, appointments for essential well services with leading global oil services companies, as well as considerable progress on financial arrangements to fund the drilling, whether that be via a farm-in on acceptable terms or by other means - whichever is in the best interests of the company.” Mr Potter was not available for further comment, but one source familiar with developments said the series of agreements BPC had put

in place gives it options as to which route it will take to reach the end goal of drilling a first exploratory well. “All doors are open,” they said. “This is potentially nation changing for The Bahamas.” Several aspects of BPC’s arrangements will have to be approved by shareholders at the company’s upcoming annual general meeting (AGM) on September 17. Many Bahamians will likely be sceptical as to whether any oil exploration activities will take place, given the lengthy process BPC has been embarked, but it does appear that progress - however gradual - is being made. “BPC has an obligation to drill an initial exploration well in 2020 and, in the view of the BPC Board, drilling as soon as practicable remains the best route to generating shareholder value,” BPC’s statement said.

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“BPC continues to proactively pursue a farm-in as its primary financing strategy, and farm-in discussions are continuing with multiple parties, the license extension to the end of 2020 granted by the Government of The Bahamas earlier this year offering clarity to potential partners. However, the process is taking longer than anticipated, and has not yet produced a successful outcome. “Accordingly, the company is now embarking on a course to drilling of an initial exploration well during the first half of 2020, in the event that a farm-in is not concluded by then. BPC has entered into a framework agreement with Seadrill, one of the world’s largest offshore drill rig companies, for the provision of a sixthgeneration drilling rig.” While not a “done deal”, BPC said the “framework agreement” specifies the daily rate for hiring the drilling rig and its delivery during the 2020 first half. The deal also allows the drilling to be extended to a “concurrent two-well programme” if sufficient funding is in place. BPC’s licences with the government require it to drill a first exploratory well by the end of 2020, so the timetable announced yesterday is slightly ahead of that. The first well will be located several hundred miles south-west of Andros, close to the maritime boundary with Cuba. The oil explorer must sign a “definitive agreement” with Seadrill by October 11 this year to seal the deal, with the latter’s board approval also required. “Having rigs already identified as per this Framework Agreement allows BPC, with Seadrill’s input and support, to begin necessary time-sensitive preparatory work, and to complete permitting processes ahead of drilling,” BPC added. It has also named international oil services industry giant, Halliburton, as its integrated well services provider, with BakerHughes GE also hired to provide wellheads and other welldrilling equipment.

“The pricing parameters encapsulated in the rig Framework Agreement with Seadrill, and the notices of award for services from Halliburton and BakerHughes GE, have allowed the company to obtain greater certainty in estimating a total drilling cost,” BPC’s statement said. “BPC now estimates the total cost of an initial exploration well to be in the range of $25m to $30m (and less than $50m in aggregate should the company pursue a concurrent two-well exploration campaign). This is a material reduction from prior estimates (previously in the range of $60m to $80m for a single well).” To provide financing should the joint venture partner search fail, BPC said it had entered into a conditional agreement with Bizzell Capital Partners, an Australian-based oil and gas exploration financier, to provide a £10.25m convertible loan that can be switched into equity shares.. That sum, which translates into $12.5m, is equivalent to half the cost of the $25m initial exploration well and will help underpin its drilling. “The board is cognisant of the company’s firm obligation to drill an initial well in 2020, and given the protracted state of the farm-in process considers it imperative that viable alternative financing solutions be put in place,” BPC said. “In addition to allowing drilling to commence even if a farm-in is not concluded in an acceptable timeframe or on acceptable terms, this will also allow longlead items to be ordered and critical-path processes to commence, enable BPC to demonstrate financial capacity to potential farm-in partners, and assure the government of the company’s ability to deliver upon its obligations.” BPC’s statement made no mention of the Environmental Authorisation it requires from the government before it can begin drilling. This deals with the environmental, health and safety issues raised by its oil drilling venture.

THE TRIBUNE

Energy tax breaks urged amid ‘double whammy’ concern FROM PAGE ONE Mr Beckles said the private sector was especially concerned that regular power outages could persist into early Spring and the peak tourism season. With such an outcome simply “unpalatable”, Mr Beckles and the chamber called on the government

Thursday, August 22, 2019, PAGE 7 to bring immediate relief to hard-pressed households and businesses by permitting the importation of renewable energy and back-up power systems at “concessionary” duty and VAT rates. “We simply want to find a solution, that’s all it is,” the chamber chief executive said last night. “Electricity has no colour. Our issue is, and we want to be absolutely clear in our own pronouncements, this should not be a political discussion.” Mr Beckles, who attended the BPL press conference

where the scale of New Providence’s generation shortfall was revealed, said the uncertainty over when the current daily load shedding - which typically lasts for between three to four hours at a time would end had unnerved the private sector. “If BPL’s pronouncements are what they are; that this could continue through the end of Spring... They said this could go on to the end of this year, early next year,” Mr Beckles recalled. “The issue for us is if this is: Take this through Christmas,

which is not what we’d like, or take us into the height of tourism season, which is not good for us. We’re saying: In the short term, look at what we can do to reduce duty rates - and create a specific VAT rate - for the importation of portable generators or back-up generators. “In addition to that, while we understand the entire regulatory framework is in place for solar and all that, the government has the ability through an exigency order to permit the importation of solar equipment duty-free. We think the government can take these additional measures in the near term.” Mr Beckles argued that there was “no downside” to the elimination and reduction of taxes on generators and associated equipment given that The Bahamas’ location in the hurricane zone makes them essential equipment. “They’re not going to go to waste,” he added. However, on the solar side, renewable energy providers earlier this year criticised the government for “random and inconsistent” tax policies that were threatening “to kill an infant industry before it gets a foothold”.

Philip Holdom, president of Alternative Power Supply (APS), told Tribune Business then that the government was “giving with the right hand and taking away with the left hand” despite the tax exemptions for complete systems, otherwise known as “solar kits”, by instead taxing individual system components. Mr Beckles, meanwhile, said Bahamian retailers in particular could not afford for BPL’s woes to drag on into the Christmas shopping season given the negative impact they have suffered during Back-to-School, their second busiest cycle. “We are in one of the major retail cycles right now, and they are taking huge hits,” he added. “If this continues through Thanksgiving and Christmas into New Year that’s a double whammy not many companies can handle. “Add to that the fact you’re going to run the risk of taking this into December when the hotels are full, homes are full with persons back from college, that’s something that’s not going to be palatable for us to consider.” The chamber, in its statement, said: “The frequency and increased length of these

power outages impedes commercial productivity, reduces much-needed revenues and leads to significant opportunity costs.” Urging the government to use private sector experience and expertise to help address BPL’s woes, the chamber added: “Commerce requires the highest levels of confidence and certainty, and in the absence of these two critical components commerce will inevitably slow, which would in turn negatively impact the gross domestic product (GDP) of The Bahamas, government revenue collection and economic empowerment. “The current circumstances of energy supply do not foster confidence and creates uncertainty. The end of the summer months historically represents a period of significant commerce as the country readies its youth for the opening of the school year. “However, businesses are faced with the difficult choices of having to close their doors or expend significant funds to acquire back-up power supply and fuelling such systems. For businesses with existing back-up power supply, that equipment is being over-extended and will require significant maintenance and/or replacement costs sooner than had been budgeted. Consumers are frustrated by meeting closed businesses or those providing reduced services, thereby creating a self-perpetuating decline in commerce.”

PAGE 10, Thursday, August 22, 2019

THE TRIBUNE

Germany’s Merkel dangles possibility of negotiated Brexit BERLIN Associated Press GERMAN Chancellor Angela Merkel raised the possibility that a negotiated departure for Britain from the European Union might still be possible even as the clock is ticking on a deal that would satisfy both sides. Speaking yesterday alongside UK Prime Minister Boris Johnson before the two leaders held bilateral talks in Berlin, Merkel indicated that a solution for the contentious Irish border issue might yet be reached

before the Brexit date of Oct 31. “(We) might be able to find it in the next 30 days, why not?” Merkel told reporters. Her comments marked a departure from the pessimism that’s prevailed on both sides of the English Channel in recent months. The EU has ruled out renegotiating the Brexit agreement hammered out with Britain last year. Johnson, for his part, says he will take Britain out of the bloc at the end of October without a deal unless the

LEGAL NOTICE

NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 46 of 2000) GCI CONSULTING LTD. IBC No. 174000 B (In Voluntary Liquidation) NOTICE is hereby given that as follows: (a)

That GCI CONSULTING LTD. is in Dissolution under the provisions of The International Business Companies Act 2000.

(b)

The Dissolution of the said Company commenced on the 20th day of August 2019 when the Articles of Dissolution were submitted and registered by the Registrar General.

(c)

The Liquidator of the Company is Sterling (Bahamas) Ltd of 2nd Floor, Saffrey Square, Bank Lane and Bay Street, Nassau, Bahamas.

(d)

Any person having a Claim against the above name Company are required on or before the 19th day of September 2019 to send their name, address and particulars of the debt or claim to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is approved.

Sterling (Bahamas) Limited Liquidator

LEGAL NOTICE

NOTICE ACACIA SHIPPING COMPANY LIMITED ____________________________________

GERMANY’s Chancellor Angela Merkel and British Prime Minister Boris Johnson attend a joint press conference, in Berlin, yesterday. German Chancellor Angela Merkel says she plans to discuss with UK Prime Minister Boris Johnson how Britain’s exit from the European Union can be “as frictionless as possible”. EU scraps the contentious they have so far been very Northern Ireland, which backstop clause designed to actively proposed over the were a flashpoint for sectarprevent customs checkpoints last three years by the Brit- ian violence in the past, and won’t be needed if other along the Irish border. ish government.” Johnson, on his first visit “You rightly say the onus solutions are found for goods to Germany since becoming is on us to produce those moving across the border. The backstop was part of prime minister last month, solutions, those ideas, to welcomed the “blistering show how we can address the withdrawal agreement timetable of 30 days” Merkel the issue of the Northern former British Prime Minissuggested, but appeared to Irish border and that is what ter Theresa May negotiated with the EU, but it was acknowledge that the ball we want to do,” he said. is now in Britain’s court to Johnson had insisted on rejected by the UK Parliaavert an economically dev- Monday that the Irish border ment three times. Johnson’s stance, that astating no-deal Brexit by backstop clause must be proposing a viable solution scrapped and replaced with Britain will leave the EU to the Irish border issue. “alternative arrangements” with or without a deal, has “There are abundant to regulate cross-border alienated many in Europe. The EU’s agriculture solutions which are prof- trade. fered, which have already The EU says the back- chief warned that if Britain been discussed,” Johnson stop is merely an insurance crashes out without a deal said, without elaborating. policy meant to avoid check- on Oct 31, it would create “I don’t think, to be fair, points between Ireland and a “foul atmosphere” that would spill over into any negotiations on a future LEGAL NOTICE trade deal between the two sides. NOTICE Speaking in his native Ireland, EU Farm ComMABOQUE SHIPPING COMPANY LIMITED mission Phil Hogan said

____________________________________

Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 16th day of August, 2019.

Delano Aranha Liquidator of ACACIA SHIPPING COMPANY LIMITED

Delano Aranha Liquidator of MABOQUE SHIPPING COMPANY LIMITED

the remaining 27 countries would “hold the line” and had made “detailed contingency plans for every outcome”, echoing the view of many on the continent that a no-deal Brexit is now the most likely outcome. “Contrary to what the UK government may wish, the EU will not buckle,” he insisted. German President FrankWalter Steinmeier went so far yesterday as to question whether Johnson was serious about seeking new Brexit talks or whether he was planning to blame the EU if they failed. Yet Johnson appeared emboldened yesterday as he and Merkel faced reporters before holding talks over dinner — where tuna tartare, saddle of venison and chocolate tarte were on the menu. “We seek a deal. And I believe that we can get one,” he said, before quoting one of Merkel’s trademark phrases — “we can do it” — which the German chancellor repeatedly used when insisting that her country could cope with the migrant influx of 2015-2016. After meeting with Merkel, Johnson goes to Paris today for talks with French President Emmanuel Macron, then on to a threeday summit of G-7 leaders, including US President Donald Trump, which begins Saturday in Biarritz, France. The withdrawal agreement is just the first step in Britain’s exit from the EU and will be followed by negotiations on future relations likely lasting years.

LEGAL NOTICE

NOTICE KALANDULA SHIPPING COMPANY LIMITED Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the above-named Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 16th day of August, 2019. Delano Aranha Liquidator of KALANDULA SHIPPING COMPANY LIMITED

THE TRIBUNE

Thursday, August 22, 2019, PAGE 11

US President Donald Trump

Report shows US deficit to exceed $1tn next year WASHINGTON Associated Press THE federal budget deficit is expected to balloon to more than $1tn in the next fiscal year under the first projections taking into account the big budget deal that President Donald Trump and Congress reached this summer, the Congressional Budget Office reported yesterday. The return of $1tn annual deficits comes despite Trump’s vow when running for office that he would not just balance the budget but pay down the entire national debt. “The nation’s fiscal outlook is challenging,” said Phillip Swagel, director of the nonpartisan CBO. “Federal debt, which is already high by historical standards, is on an unsustainable course.” The office upped this year’s deficit projection by $63bn and the cumulative deficit projection for the next decade by $809bn. The higher deficit projections come even as the CBO reduced its estimate for interest rates, which lowers borrowing costs, and as it raised projections for economic growth in the near term. The number crunchers at CBO projected that the deficit for the current fiscal year will come to $960bn. In the next fiscal year, which begins Oct 1, it will exceed $1tn. The CBO said the budget deal signed into law earlier this month, which took away the prospect of a government shutdown in October and the threat of deep automatic spending cuts, would boost deficits by $1.7tn over the coming decade. Increased spending on disaster relief and border security would add $255bn. Downward revisions to the forecast for interest rates will help the picture, trimming $1.4tn. Swagel said the federal debt will rise even higher

after the coming decade because of the nation’s aging population and higher spending on health care. To put the country on sustainable footing, Swagel said, lawmakers will have to increase taxes, cut spending or combine the two approaches. The CBO projects that the economy will expand more slowly, from 2.3% this year to 1.8% on average in the next four years. The assumption reflects slower growth in consumer spending and government purchases, as well as the effect of trade policies on business investment. It also projects the unemployment rate will remain close to its current level of 3.7% through the end of 2020 and then rises to 4.6% by the end of 2023. The CBO’s estimate is the first to reflect the hardwon budget and debt deal signed into law earlier this month. “The recent budget deal was a budget buster, and now we have further proof. Both parties took an already unsustainable situation and made it much worse,” said Maya MacGuineas, president of the private Committee for a Responsible Federal Budget. MacGuineas said lawmakers should ensure the legislation they enact is paid for and redouble efforts to control the growth in health care costs and restore the solvency of the Social Security program. Her organisation is focused on educating the public on issues with significant fiscal policy impact. Senior White House adviser Kellyanne Conway pivoted to the president’s desire to fund the military and other programmes when asked about the report. “We’re always concerned about the deficit,” Conway said. “We also need to fund a lot of the projects and programs that are important to this country.”

To advertise in The Tribune, contact 502-2394 LEGAL NOTICE

J.F. CORPORATION NOTICEIS HERE BY GIVEN as follows: (a)

The above Company is in voluntary dissolution under the provisions of Section 138 of the International Business Companies Act 2000.

(b)

The Dissolution of the said Company comenced on the15th day of August, 2019,when its Articles of Dissolution were submitted to and registered by the Registrar General.

(c)

The Liquidator of the said Company is Kofi Bain of Bayview House, BayStreet, P.O.BoxN-8166, Nassau Bahmas.

Dated this 19th day of August, A.D. 2019. Kofi Bain Liquidato

PAGE 12, Thursday, August 22, 2019

Economic twilight zone: Bonds that charge you for lending

GERMAN Chancellor Angela Merkel, right, and German Finance Minister Olaf Scholz, left, talk as they arrive for the weekly cabinet meeting at the Chancellery in Berlin, Germany, yesterday. The German government sold 30-year bonds at a negative interest rate yesterday in a sign of the clouds over markets and future growth as well as increased expectations that more central bank stimulus is likely on the way. Photo: Michael Sohn/AP FRANKFURT Associated Press IMAGINE lending money to someone and having to pay for the privilege of doing so. Or being asked to invest and informed of how much money you’ll lose. Sounds absurd, but increasingly that’s the global bond market these days. A rising share of government and corporate bonds are trading at negative interest yields — a financial twilight zone that took hold after the financial crisis and has accelerated on fear that a fragile global economy will be further damaged by the US-China trade war. Yesterday, for the first time ever, the German government sold 30-year bonds at a negative interest rate. The bonds pay no coupon interest at all. Yet bidders at the auction were willing to pay more than the face value they would receive back when the bonds mature. The sale added to the mountain of negative-yielding bonds around the world that investors have gobbled up, suggesting that they expect global growth and inflation to remain subpar for years to come. After all, accepting a negative yield on a bond — agreeing, in effect, to lose money in exchange for parking money in a safe place — could reflect expectations that yields will sink even further into negative territory. “You’re essentially paying a warehouse fee by paying these negative rates,” said Jim Bianco of Bianco Research in Chicago. Worldwide debt with negative rates has surged to $16.4tn from $12.2tn in midJuly and $5.7tn in October, Bianco said. “Until a few months ago, negative-yielding debt was an interesting curiosity,” he said. “In the last three months, it’s become a mainstay in the marketplace.” The negative-yield phenomenon — 87% of it in Europe and Japan combined

— is above all sign of pessimism about the future. “This is like a temperature gauge for the economy, and it says the economy is sick,” said Sung Won Sohn, business economist at Loyola Marymount University in California. The bond market is also responding to expectations that many central banks such as the Federal Reserve and the European Central Bank will respond to economic weakness and the raging trade conflict between the US and China by unleashing more stimulus to try to drive down interest rates. The ECB has indicated that it may decide on a stimulus package as soon as its Sept 12 meeting. Despite its strong credit rating and demand for its bonds, Germany is a big part of the growth problem for the eurozone. The German economy shrank 0.1 percent in the second quarter and could tip into recession with another quarter of falling output. Negative rates aren’t just an indicator of economic distress. They can cause problems in the financial system, too. They make it harder for banks to turn a profit or for insurance companies to fund their future payouts. “Why would you want to lend money when you can’t make money?” Sohn said. Indeed, bank stocks have tumbled — 24% in Europe and 23% in Japan — over the past year. Most of the negative-yielding debt is in government bonds, in part because they are seen as ultra-safe. But there are also about $60bn US corporate bonds that are in negative territory. Something similar is going on with US government debt: The yield on the ten-year Treasury note has sagged to 1.57% — a rate that would amount to a negative one after accounting for inflation. Japan has been stuck in years of low inflation and sluggish growth. And growth rates in Europe have slowed in recent quarters.

THE TRIBUNE

Thursday, August 22, 2019, PAGE 13

US STOCKS CLIMB AFTER MAJOR US RETAILERS POST SOLID EARNINGS By ALEX VEIGA Associated Press STRONG earnings reports from several big retailers helped drive stocks broadly higher on Wall Street yesterday as the market bounced back from its first loss in four days. Target notched its biggest-ever gain, while Lowe’s had its best day in more than a year, leading a broad rally in companies that rely on consumer spending. Nordstrom, Kohl’s, Gap and other retailers closed higher. Technology companies accounted for a big share of the gains. Financial stocks rose as bond prices fell, pushing yields higher. Real estate and materials stocks lagged the rest of the market. Investors have been worried that US economic and corporate earnings growth could stumble under the strain of a slowing global economy and the costly trade war between the US and China. But the strong quarterly results from the retailers encouraged traders, who see the performance as a sign that US consumers, which account for 70% of US economic growth, are healthy. “We had a couple of great earnings reports this morning, especially Target, which is a good barometer of the consumer,” said Dan Heckman, national investment consultant at US Bank Wealth Management. “The consumer still appears to be spending and doing well.” The S&P 500 rose 23.92 points, or 0.8%, to 2,924.43. The Dow Jones Industrial Average gained 240.29 points, or 0.9%, to 26,202.73. The Nasdaq added 71.65 points, or 0.9%, to 8,020.21. The Russell 2000 index of smaller company stocks picked up 11.84 points, or 0.8%, to 1,509.85. Major indexes in Europe also finished broadly higher. The stock market has been volatile this month as investors try to parse conflicting signals on the US economy and determine whether a recession is on the way. A key concern is that the US-Chinese tariff war will weigh on global economic growth. The Trump administration has imposed a 25% tariff on $250bn in Chinese imports. A pending 10% tariff on another $300bn in goods would hit everything from toys to clothing and shoes that China ships to the United States, however some 60% of the new tariffs wouldn’t go into effect until mid-December, and others were taken off the table altogether. The potential impact those tariffs could have on US consumers could hurt sales for Target and other big retailers. Home Depot on Tuesday cut its sales expectations for the year in part because of the potential tariff impact. A look at Target and Lowe’s earnings Wednesday appeared to dim investors’ concerns about the impact tariffs may have on US consumers. Target soared 20.4% after the company easily beat profit forecasts for its second quarter. Target has

been pushing faster delivery and investing heavily in new private label brands. Traders also bid up shares in Lowe’s sharply higher after the home improvement retailer’s latest quarterly results blew past expectations, buoyed by strong demand for spring goods and sales to contractors. The company’s strong quarter came even as it wrestled with lower lumber prices and rough spring weather. The stock jumped 10.4%. Lowe’s solid earnings came a day after rival Home Depot reported strong results of its own. Home Depot added 1.6%. Investors took a dim view of Cree’s latest quarterly results. Shares in the maker of energy-efficient lighting tumbled 15.8% after it issued a weak forecast as it deals with the fallout from the US-China trade war. Encouraging housing market data sent homebuilders higher. The National Association of Realtors said sales of previously occupied US homes rose 2.5% last month. The increase is a sign that lower mortgage rates are helping to increase sales, which have been sluggish amid rising housing prices and a stubborn shortage of homes on the market. Hovnanian Enterprises vaulted 18.5% and LGI Homes rose 2.8%. Traders had a muted reaction to the afternoon release of notes from the Federal Reserve’s policymaking meeting last month. The minutes showed officials were divided in their decision to cut interest rates for the first time in a decade. Investors have been seeking insight into the Fed’s willingness to make further interest rate cuts to help shore up the economy. Traders are now looking ahead to Friday, when Fed Chairman Jerome Powell is scheduled to speak at the central bank’s annual conference in Jackson Hole, Wyoming. Traders will be listening for clues as to what Fed officials will cut rates again at its next meeting in September. “Powell is in a difficult spot in that you have a meeting coming up in September and everybody is looking to him,” said Tom Martin, senior portfolio manager with Globalt Investments. “Even though we want some more information and a nod, one way or the other, toward September, I don’t think we’re going to get one.” The Fed cut its key policy rate on July 31 for the first time in more than a decade. It cited a number of “uncertainties” that were threatening the country’s decade-long expansion, from Trump’s trade battles to slowing global growth. While the encouraging earnings put investors in a buying mood yesterday, Heckman noted that August and September are historically some of the weakest months of the year for stocks, so investors should expect more market volatility, particularly if the US and China don’t strike a trade deal.

This is to advise the general public that

Kermit Ferguson is NO LONGER employed at

Bahamas Waste Limited and is NOT authorized to conduct any business on our behalf.

Signed: Management

PAGE 14, Thursday, August 22, 2019

THE TRIBUNE

TRUMP FLIP-FLOPS ON TAX CUTS, CITING ‘STRONG ECONOMY’

To advertise in The Tribune, contact 502-2394

PRESIDENT DONALD TRUMP

WASHINGTON Associated Press A DAY after considering cutting taxes to promote economic growth, President Donald Trump yesterday changed course and said he would abandon the idea because the nation already had “a strong economy”. Trump’s flip-flop came after recent market volatility and economic uncertainty, and amid a debate about whether the United States was heading for a slowdown that would imperil his reelection chances. Trump earlier this week acknowledged, for the first time, that his China trade policies may mean economic pain for Americans, though he insisted the tariffs are needed for

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

WEDNESDAY, 21 AUGUST 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,130.55 | CHG: -6.60 | %CHG: -0.31 | YTD: 21.10 | YTD%: 1.00 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.92 2.60 2.00 2.75 11.75 6.17 4.64 12.50 2.81 2.64 10.00 7.35 15.60 9.30 3.75 14.20

52WK LOW 3.50 19.17 4.90 4.02 1.00 0.19 2.00 9.17 6.15 3.54 8.53 2.35 1.75 7.51 6.10 11.70 6.20 3.01 13.00

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

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

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

52WK HI 2.25 4.31 2.06 191.61 158.55 1.62 1.76 1.70 1.15 7.72 8.97 6.77 11.25 12.14 10.63 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.64 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 4.19 17.43 6.00 5.92 2.44 1.80 2.18 11.05 6.16 4.12 8.55 2.98 2.64 10.47 7.00 15.45 9.24 3.40 14.20

CLOSE 4.19 17.43 6.00 5.92 2.45 1.80 2.18 11.05 6.16 4.07 8.55 2.89 2.64 10.51 7.00 15.45 9.24 3.40 14.20

CHANGE 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.00 -0.05 0.00 -0.09 0.00 0.04 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

VOLUME

1,555

5,000

VOLUME

NAV 2.25 4.31 2.06 191.61 158.33 1.62 1.76 1.70 1.15 7.72 8.97 6.77 11.25 12.14 10.57 9.92 8.68 11.38

EPS$ 0.240 0.932 1.760 0.323 0.098 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.000 0.728 0.816 0.939 0.203 0.631

DIV$ 0.160 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.068 0.060 0.328 0.240 0.540 0.200 0.120 0.610

P/E 17.5 18.7 N/M 18.3 N/M N/M -5.0 15.3 13.7 22.1 61.1 28.3 5.7 N/M 9.6 18.9 9.8 16.7 22.5

YIELD 3.82% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.52% 3.57% 2.95% 0.00% 2.35% 2.27% 3.12% 3.43% 3.50% 2.16% 3.53% 4.30%

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

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

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD%12 2.15% 1.61% 1.53% 3.85% 7.12% 1.57% 0.99% 1.32% 3.22% 3.25% 3.82% 2.59% 8.44% 3.87% 1.84% -0.71% 7.40% 10.20%

MTH% 3.88% 4.11% 2.74% 6.28% 2.08% 4.58% 4.25% 4.12% 5.64% 6.65% 8.36% 4.81% 0.78% 4.17% 2.29% 0.16% 2.70% 1.30%

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

NAV Date 31-Jul-2019 31-Jul-2019 26-Jul-2019 30-Jun-2019 30-Jun-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Jun-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

more important long-term benefits. But his consideration of cutting payroll taxes appeared short-lived. “I’m not looking at a tax cut now,” he told reporters at the White House. “We don’t need it. We have a strong economy.” Trump also knocked down the idea of indexing to the capital gains tax, which applies when investors sell assets, to inflation. He said he feared “it will be perceived, if I do it, as somewhat elitist.” Analysts have warned that a slowdown, if not fullblown recession, could hit before next year’s election. Trump, however, has largely praised the economy’s performance and his handling of it. He has often blamed the Federal Reserve (and Chairman Jerome Powell) and the global slowdown for creating dark clouds at home. “Jay Powell and the Federal Reserve have totally missed the call. I was right and just about everybody admits that,” Trump said yesterday. “He raised interest rates too fast, too furious, and we have a normalised rate. And now we have to go the other direction.” Some White House advisers fear Trump has undercut Powell’s credibility. They worry that the president’s calls for rate cuts and his discussion of indexing or a payroll tax cut could spook, rather than reassure markets. Trump indicated he had no choice but to impose the trade penalties that have been a drag on US manufacturers, financial markets and, by some measures, American consumers. “Somebody had to do it. I am the chosen one,” Trump said on the White House lawn, looking skyward. “Somebody had to do it. So, I’m taking on China. I’m taking on China on trade.” China, though, said trade with the US has been “mutually beneficial” and appealed to Washington to “get along with

us”. A foreign ministry spokesman, Geng Shuang, expressed hope Washington can “meet China halfway” in settling disagreements. The US economy appears to be showing vulnerabilities after more than ten years of growth. Factory output has fallen and consumer confidence has waned as he has ramped up his trade fight with China. Trump rattled the stock and bond markets this month when he announced plans to put a 10% tax on $300bn worth of Chinese imports. The market reaction suggested a recession might be on the horizon and led Trump to delay some of the tariffs that were scheduled to begin in September, though 25% tariffs are already in place for $250m in other Chinese goods. The president has long maintained that the burden of the tariffs is falling solely on China, yet that message was undermined by his statements to reporters on Tuesday. “My life would be a lot easier if I didn’t take China on,” Trump said. “But I like doing it because I have to do it.” The world economy has been slowing in recent months, and recent stock market swings have added to concerns that the US economy is not immune. A survey on Monday showed a big majority of economics expect a downtown to hit by 2021. Addressing that possibility, Trump focused anew on pressuring the Fed to cut interest rates. Presidents have generally avoided criticising the central bank publicly. Trump, however, has shown no inclination to follow that lead, positioning Powell to take the fall if the economy swoons. “I think that we actually are set for a tremendous surge of growth, if the Fed would do its job,” Trump said. “That’s a big if.” Trump recommended a minimum cut of a full percentage point in the coming months.

NOTICE

NOTICE is hereby given that GAREY GLENVILLE GAYLE of P.O.Box CR-56992, Sea Breeze Wind Street, New Providence, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of August, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Thursday, August 22, 2019, PAGE 15

Retailers’ results show sharp divide between losers, winners NEW YORK Associated Press THE divide between retail winners and losers is widening. That became even more evident yesterday with the latest batch of earnings reports: Big-box stores and off-price retailers have been responding faster to shoppers’ increasing shift online with expanded deliveries and better merchandise. But many mall-based clothing chains and department stores continue to suffer weak sales as they struggle to lure in shoppers. “There is an increasing polarisation in retail,” said Neil Saunders, managing director at GlobalData Retail. “It’s a vicious cycle, and it’s difficult to pull out of the tail spin.” In fact, for the first two fiscal quarters of this year, earnings at off-mall retailers rose 3%, compared with a drop of 29% for mall-based retailers, according to Retail Metrics, a retail research firm, which analyzed results at 105 retailers. Yesterday, Target raised its annual earnings guidance after reporting strong sales and traffic. It was helped by its same-day delivery services, as well as a strong lineup of homegrown brands. Lowe’s,

A SHOPPING cart sits in the parking lot of a Target store in Marlborough, Mass. Target Corp reported financial results yesterday. the nation’s second largest home improvement retailer behind Home Depot, blew past Wall Street’s second-quarter earnings expectations, buoyed by strong demand for spring goods and sales to contractors. Both companies’ stocks soared. Earlier this week, Home Depot handily beat secondquarter profit expectations, while Walmart raised its outlook for the year last week and off price chains like TJ Maxx are also faring well, resonating with shoppers who love to treasure hunt. But many clothing chains and department stores haven’t differentiated their

merchandise enough, and now discounters are further squeezing them by pushing into more affordable trendy fashions, retail industry analysts say. Last week, Macy’s lowered its annual earnings guidance after its earnings suffered in the second quarter as it slashed prices on unsold merchandise. JC Penney’s is in worst shape. It posted another quarter of sales declines. Kohl’s shares, meanwhile, fell on Tuesday after posting a sales decline though business improved later in the quarter. Upscale department store Nordstrom trimmed its earnings and sales outlook for the current fiscal year late yesterday after it

reported profit and sales declines in the second quarter. Sales at its full-priced stores dropped 6.5%. The results show that it hasn’t been able to escape the woes of traditional malls, even as it has been testing small stores that don’t stock any clothes and expanding its online services. Saunders and other analysts say that they started to see a clear divide between retail’s winners and losers four or five years ago, but that gap has gotten more pronounced because of a combination of factors. For several years, a strong economy provided tail winds to retailers of all stripes, and last year’s tax cuts gave merchants a nice sugar high.

But as the economy starts developing some cracks, vulnerable retailers will become even more exposed. Analysts also say that the shift to online shopping keeps accelerating, giving a big advantage to retailers like Target and Walmart who’ve been able to invest billions of dollars in online deliveries and in their stores. Some mall-based retailers are now looking at other ways to bring in shoppers, including subscription rental services and carving out areas to sell secondhand clothes. But for some, it may be a case of too little, too late. “In a world where consumers have more choices than ever, inferior brickand-mortar experiences will go away,” said John Mulligan, Target’s chief operating officer yesterday. Target’s comparable store sales, which include online sales, rose 3.4 % as customer traffic jumped 2.4%. Online sales soared 34%. The Minneapolis company raised profit expectations for the year, sending its shares up $17.47, or 20.4%, to close at $103. Shares in Lowe’s Co, which is based in Mooresville, North Carolina, ended up $10.13, or 10.4%, at $108. Still, it is an uncertain time for even surging

retailers like Target. The Trump administration has imposed a 25% tariff on $250bn in Chinese imports. A pending 10% tariff on another $300bn in goods would hit everything from toys to clothing and shoes that China ships to the United States. And it appears the retailers that have been winning all along will be the ones to better navigate the tariff storms. Target’s CEO Brian Cornell told analysts that while the trade wars present an additional layer of uncertainty and complexity, he pointed to the company’s diverse assortment, deep expertise in global sourcing and sophisticated set of manufacturing partners around the world. Meanwhile, Macy’s said last week that its shoppers don’t have an appetite for higher prices in a ballooning US trade war with China. The department store was forced to raise prices on some luggage, housewares and furniture to offset the costs of a 25% tariff implemented in May. Macy’s vowed not to increase prices as a result of the 10% tariff, but CEO Jeff Gennette said the company will be speaking with vendors about ways to offset rising costs if the trade war escalates.