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Downtown resort ‘risks total failure and collapse’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net KENWOOD KERR

MICHAEL MAURA

‘RUNNING IN QUICKSAND’: BPL BOND NO CURE-ALL By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

BAHAMAS Power & Light’s (BPL) proposed $650 million refinancing is “not the panacea” for this nation’s energy woes, which the private sector likened to “running in quicksand”. Both Michael Maura, the Chamber of Commerce’s chairman, and Kenwood Kerr, Providence Advisors’ See PG B5

Chamber chair queries if investors will bite ‘Underlying problems’ must be fixed first 100% pensions: ‘Those days are gone’

A DOWNTOWN Nassau resort “risks total failure and collapse”, its owner fears, after a dispute with its management company saw it “frozen out” of the hotel’s accounting and reservation systems. Sunset Equities, owner of the 201-room Courtyard by Marriott on West Bay Street, is alleging in new legal filings that Donald J Urgo & Associates is “threatening to wreak havoc” on its plans to bring in a new management company, Trust Hospitality.

THE Government “wholeheartedly agrees” with the IMF’s National Health Insurance (NHI) warning, a Cabinet minister saying: “We can’t spend money we don’t have.” Dr Duane Sands, minister of health, told Tribune Business that the Bahamas would “absolutely” suffer a further credit rating downgrade had NHI continued without any specific funding identified for it. He said the Minnis administration’s strategy was to extract the significant savings it believes lie

BAHAMIAN companies will be “put out of business” if exchange controls and bank lending rates are not relaxed before this nation enters liberalised trade regimes. Robert Myers, a principal with the Organisation for Responsible Governance (ORG), told Tribune Business that local businesses will be “unable to compete” with foreign rivals unless the Government places them on a level playing field by removing such structural obstacles. With the Bahamas already having signed on to the European Partnership Agreement (EPA) with the European Union (EU), Mr Myers said both the Government and private sector had not been proactive See PG B6

Fears hit to winter tourism, refinance and flag The owner and its principal, New York-based developer Ron Hershco, last week took their case to

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Health Minister backs IMF’s NHI warning DPM scheme must be ‘re-engineered’ Govt seeking savings in public system within the existing public healthcare system before looking at new taxes to finance NHI, adding that the ‘value for money’ currently enjoyed by Bahamian See PG B7

Bahamians ‘put out of business’ if no lending, exchange control ease By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Cut off from financial, reservation system access

ORG chief: Must happen before WTO Otherwise locals ‘unable to compete’ Structural reform will ‘broaden horizons’

ROBERT MYERS

his home state by seeking an injunction and temporary restraining order (TRO) to prevent Urgo from blocking access to the property’s accounting and reservation systems, plus its historical financial data. Legal filings with the New York State Supreme Court on September 14, 2017, which have been seen by Tribune Business, claim that the dispute threatens the Courtyard by Marriott’s winter tourism season when it is expected “to be at or near full capacity”. And Sunset and Mr Hershco are also alleging that it will harm the property’s

relationship with Marriott, the operating flag; interfere with attempts to refinance the property; and create “reputational damage” for the business. The New York court filings are the latest episode in what appears to be an increasingly bitter legal battle between Sunset and Urgo, which was exclusively revealed by Tribune Business last month. Mr Hershco and his Bahamian attorney, Valentine Grimes, had previously told Tribune Business that Sunset’s various legal woes, which include separate See PG B4

New finance chief: ‘Do more with less’

DOWNGRADE CONSEQUENCES ‘TOO HARMFUL TO CONTEMPLATE’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Marriott Courtyard owner ‘frozen out’

MARLON JOHNSON

THE newly-appointed Financial Secretary sees the Bahamas’ strained finances as “an opportunity” rather than a challenge, as the Government borrowed a further US$250 million. Marlon Johnson told Tribune Business that the syndicated loan taken out on September 14, 2017,

was part of the total $722 million borrowing approved by Parliament to cover the forecast 2016-2017 and 2017-2018 deficits. He declined to comment further on what appears to be a 12-month ‘bridge financing’ facility, based on the Ministry of Finance’s press statement, or the remainder of the Minnis administration’s borrowing plans. See PG B4

Financial Secretary sees ‘opportunity, not challenge’ As Govt borrows US$250m in deficit financing Says external reserves remain ‘healthy’

PAGE 2, Monday, September 18, 2017

FINANCIAL SERVICES ‘CHALLENGED’ TO GROW By LLONELLA GILBERT Bahamas Information Services

GLOBAL pressures continue to impact the Bahamian financial services industry, the Deputy Prime Minister saying it remains” challenged to maintain and grow market share”.

K P Turnquest told a Securities Commission industry briefing that while wealth continued to grow globally, private banking institutions and wealth managers were struggling to maintain profit margins and/or stay in business. “As a case in point, the Financial Times reported in June this year that despite increasing assets

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under management (or AUMs), wealth managers’ profit margins had fallen by nearly a third over the past decade,” he said. The article references a Boston Consulting Group report, ‘Global Wealth 2017, Transforming the Client Experience.’ According to the report, global private financial wealth grew by more than 5 per cent in 2016 to an estimated $166.5 trillion. Meanwhile, the Scorpio Partnership 2017 Private Banking Benchmark reported that assets under management in private banks globally rose by almost 4 per cent in 2016, hitting $21 trillion. Over the same period, net new money decreased by 0.03 per cent. “While the report indicated increasing operating profits as private banks did better at containing expenses, the report also suggests that managing the revenue side of the profits equation will be the true challenge going forward,” Mr Turnquest said. “As a final point for your consideration, last year KPMG reported that 10 per cent of private banks in Switzerland did not survive 2015. The cry was that the institutions suffered reduced returns on equity

and no notable increases in net new money.” He said the impact of the contraction in private banking operations globally had affected the Bahamas since 2012. At the same time, smaller, independent, boutique firms appeared to be filling the niche created by this contraction. “The number of licensed securities firms, which were structured as bank and trust companies, declined from 47 in December 31, 2013, to 44 in June 30, 2017. Simultaneously, the number of ‘standalones’ – that is, licensed securities firms who were not bank and trust companies, increased from 89 to 110 over the same period,” Mr Turnquest said. “Similarly, the number of investment fund administrators who were also bank and trust licensees slightly declined over that period, from 25 to 23, while standalones again increased in number, from 38 to 42 over the same period.” Mr Turnquest added: “Each of you likely has a very intimate appreciation for some or all of these realities and trends. Increasing regulation, compliance costs, difficulty in bringing in new clients and new money, and clients who are increasingly wary

THE TRIBUNE

DPM KP TURNQUEST of the costs associated with doing business are the new norm for many. “Once again, financial services practitioners in the Bahamas find themselves challenged to maintain and grow market share locally and internationally. We can see, also, that it is not a unique challenge

to this jurisdiction, however, as data suggests institutions around the world are struggling with the cost of compliance in an environment of increasing regulations and transparency, while trying to increase revenue and maintain or grow profit margins.”

THE TRIBUNE

Monday, September 18, 2017, PAGE 3

IRMA DEALS ‘BIG BLOW’ TO CRAWFISH SEASON By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

Fishermen fear ‘tough Christmas’

HURRICANE Irma has dealt a “big blow” to the crawfish season, the Bahamas Commercial Fishers Alliance’s (BCFA) president warning of a “very tough Christmas” if the industry cannot recover. “Hurricane Irma dealt a bit of a blow to us,” said Adrian LaRoda. “Quite

frankly, we can only hope we can do our our best to recover before Christmas. If we get any more bad whether before then we could be in trouble.” Mr LaRoda said Irma’s passage came just weeks into the 2017-2018 crawfish season. “That was a big

Nassau/PI resorts in booking rebound By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net BAHAMIAN resorts say they have already begun to see bookings rebound post Hurricane Irma, with one executive predicting an even bigger boost as travellers re-book. Ed Fields, Atlantis’s senior vice-president of public relations, told Tribune Business: “We have absolutely seen bookings rebound over the last few days as flights have resumed regular schedules.” With The Bahamas’ major resorts and tourism assets having escaped Hurricane Irma largely unscathed, tourism officials have moved to dispel the suggestion by some international media that the most of the

Bahamas had been devastated by the storm. Gary Williams, Sandals Royal Bahamian’s general manager, said that with the chain’s Beaches Turks and Caicos property having been impacted, along with the planned pre-Irma closure of its Antigua resort, its other hotels would naturally pickup the business. “We were at 40 per cent after the storm, but things have already started to rebound,” Mr Williams said. “We have a very good second half of September on the books. Monday, we are at 73 per cent, and by the weekend we are back to 88 per cent. I’m sure we get will get a bigger pick-up when people start to re-book, people who were at Turks and Caicos for instance.” Mr Williams said it was important for the

blow at the beginning of the season,” he reiterated. We can only hope we can see some turnaround before Christmas. “If not it will be a very tough Christmas. This is the nature of business; you have to deal with the weather, which we can’t obviously control. Across the country fishermen had to cut their trips short. Even though the storm has passed, conditions are still not really favourbale for harvesting. It will

Bahamas to get the message out that it is open for business. “Our chief executive has been on CNN, and he was telling them that the majority of the Caribbean is up and running, and only a few islands were impacted,” he said. “We are going to get an increase in business from folks who were scheduled for Antigua, and Beaches Turks and Caicos at our resort and Emerald Bay. Given what we had on the books before we should do even better with relocations. We are putting the word out to all our travel agents to say that we weren’t impacted in New Providence and Exuma. We dodged a bullet for sure.” The Beaches Turks & Caicos Resort is closed until December 14, due to damage from Hurricane Irma. Back in July, Sandals announced the temporary closure of Sandals Grande Antigua from September 20 for maintenance, with the resort expected to re-open on December 17.

DPM acknowledges tax exchange ‘fall-out’ By LLONELLA GILBERT Bahamas Information Services THE Bahamas has no choice but to comply with international tax information exchange standards if it is to avoid ‘blacklistings’ and other negative impacts for the financial services sector. K P Turnquest, the Deputy Prime Minister, told a Securities Commission industry briefing that the Bahamas had implemented numerous legislative reforms to ensure it kept pace with global standards. “We must protect our sector from the fall-out of blacklisting, and we want to be singled out for markers such as excellence in service, being business friendly, and product innovation - not for being a place to hide or launder illicit funds of any kind. Undoubtedly, this will impact reporting requirements and hence compliance costs in most, if not all,

financial institutions,”he acknowledged. As the Bahamas moves to comply with the multilateral approach to automatic tax information exchange under the Common Reporting Standard (CRS), Mr Turnquest added: “We simply cannot afford, nor do we wish to have, the reputation of being the ‘last tax haven standing’, as the head of the OECD’s Global Forum Secretariat on transparency and exchange of information for tax purposes, Monica Bhatia, referred to the jurisdiction prior to the Government’s commitment to the multilateral approach.” According to an OECD report in June 2017, some 101 jurisdictions have committed to implementing automatic tax information exchange by 2017 or 2018. The initial standard was exchange of information upon request, Mr Turnquest, which the Bahamas facilitated through Tax Information Exchange Agreements (TIEAs).

“These involved, among other things, ensuring reliable accounting records were maintained and accessible, and that the beneficial owners of entities, structures and legal arrangements were identified and properly maintained,” he added. “The legislative initiatives included the International Tax Cooperation Act 2010, which facilitated the implementation of international tax agreements and tax information sharing under those agreements. “The Government also implemented a series of legislative amendments, including amendments to the International Business Companies (IBC) Act, the Partnership Limited Liability Act and the Segregated Companies Act, amongst others, in 2011, and the IBC Accounting Records Order of 2016, to meet the information exchange standards. After having undergone the Global Forum’s most recent review – the Phase 2 review, the jurisdiction is assessed as largely compliant.”

take a while for seas to calm down and the waters clear. “I don’t see anything happening in September, and we’re probably looking at mid-October before guys get back into the swing of things. If we don’t get a break, it’s a rough Christmas.” Still, Mr LaRoda said it was not all ‘gloom and doom’. “We’re still going to be optimistic about things, but even if this season proves to be a loss, as long

as we keep poaching under control next season should be very good,” he added. Mr LaRoda said an assessment was still being done to determine Hurricane Irma’s impact on the Bahamian fishing fleet. “We are still doing an assessment. There will be loss of assets,” he said. “Right now it’s on a small scale. In Ragged Island and Inagua, there will be a loss of assets, but there have been no reports

of major losses for large vessels. “We have received no reports out of Long Island, Exuma nor Andros of any major loss. We don’t know about Bimini yet, but to date I haven’t heard anything.” Mr LaRoda said Bahamian fishermen were getting better at protecting their assets, having experienced Hurricanes Joaquin and Matthew in prior years before Hurricane Irma.

ATLANTIS PARADISE ISLAND RESORT NOTICE Re: Supreme Court Equity Action No. 00615 of 2017 The Petition of Grico Company Limited in respect of ALL THOSE lots of land known as and called lots Nos. 3, 5 and 11 of Conquest Subdivision immediately south of Sandilands Village Road and being a portion of a Crown Grant to the late Thomas Bertie Davis and being about 2,280 ft. west of Fox Hill Road which said lots are respectively 6,470 sg. ft., 6,663 sg. ft. and 6,818 sq. ft which said lots are fully described by the plan lodged at the Department of Lands and Surveys as No. 5077NP and filed in this action and are thereon coloured Pink. Grico Company Limited claims to be the legal and beneficial owner in fee simple in possession of the said lots hereinbefore described and Grico Co. Ltd. has made application to the Supreme Court under Section 3 of the Quieting Titles Act, 1959, to have its title to the said land investigated. Copies of the filed plan may be inspected during normal working hours at:a) The Registry of the Supreme Court, British American Building, Marlborough and George Streets, Nassau, N. P., Bahamas; or b) The Chambers of Martin, Martin and Co., Vet CF Place, Eight Terrace East, Nassau, Bahamas (ph:698-4708). NOTICE IS HEREBY GIVEN that any person having dower or right to dower or any adverse claim or claim not recognised in the Petition shall on or before the 24th. day of October, A. D. 2017, file in the Registry of the Supreme Court and serve on the Petitioner or the undersigned a statement of such claim in the prescribed form and verified by an affidavit to be filed therewith. Failure of any such person to file and serve a statement of such claim on or before the 24th. day of October, A. D. 2017, will operate as a bar to such claim. Martin, Martin And Co. Attorneys for the Petitioner

PAGE 4, Monday, September 18, 2017

New finance chief: ‘Do more with less’ From pg B1 While the Government is hoping its recently-announced austerity measures will slash the $722 million borrowing requirement, capital markets sources suggested last week’s loan would ultimately be replaced by longer-term financing. One financier, speaking on condition of anonymity, told Tribune Business that the Government was likely to go to the international capital markets for up to $500 million - or two-thirds - of its financing needs this fiscal year. They suggested the Government had approached Royal Bank of Canada (RBC), its bankers, to help arrange a large foreign currency bond issue - something Mr Johnson said he “cannot deny or confirm” when Tribune Business raised the matter with him. “The local market can only really support a small fraction of that,” the financier said of the

Government’s borrowing requirements, “so the decision was made to go to the international markets for the bulk of it. “The expectation was to raise up to $500 million on the international markets, and the balance - a couple hundred million - locally. There’s just not the capacity here, and the banks, insurance companies and NIB to some extent have been tapped out and have no ability for further exposure.” The National Insurance Board (NIB), together with the banks and insurance companies, already have significant holdings of Bahamas Government Registered Stock (BGRS) and other public sector debt instruments. There are regulations and prudential norms that limit such holdings, preventing them from acquiring more government paper. The US$250 million loan, which is priced at LIBOR (London Interbank Offer Rate) plus 3 per cent, was

Downtown resort ‘risks total failure and collapse’ From pg B1 court battles with its former lender and still-15 per cent equity partner, David Kosoy’s Sterling Global Financial, would not affect the Courtyard by Marriott’s operations or it 100-plus staff. However, the contents of its New York case cast doubt on that assertion. “Without a temporary restraining order and a preliminary injunction enjoining defendant [Urgo] from freezing plaintiff out of the hotel’s accounting system and reservation management system, the hotel, which has been successful to date, risks total

failure and collapse,” Sunset’s lawsuit alleged. “Plaintiff will suffer immeasurably in that it will not have access to any of its historical financial or reservation information. This is a critical time. Tourism to the Bahamas generally picks up after the summer, and plaintiff expects the hotel to be at or near full capacity for the near future. “Furthermore, plaintiff will suffer irreparable harm without the requested relief in that plaintiff’s relationship with Marriott Hotels will be negatively impacted, and plaintiff will suffer reputational harm that will similarly be impossible

THE TRIBUNE billed as helping “to meet capital and other budgetary requirements” of the Government during the 2017-2018 financial year. Interest payments are to be made every six months, with principal paid one year later. The financier agreed that using foreign currency borrowing to finance the Government’s deficits “is not ideal, but that kind of money is not available to them”. The proceeds from the $250 million loan will initially give a boost to the Bahamas’ external reserves, which the International Monetary Fund (IMF) last week described as “below traditional adequacy benchmarks” in providing 2.4 months’ worth of import coverage. But, medium and longterm, the extra foreign currency borrowing will increase the drain on the external reserves to finance interest and debt payments. Central Bank data showed that the Bahamas’ total foreign currency debt was already $2.645 billion, or 29.3 per cent, of the total $7 billion-plus national debt

at year-end 2016. This ratio is likely to increase as a result of the latest loan and the Government’s financing plans. Mr Johnson told Tribune Business that the Central Bank dealt primarily with the external reserves, but the Government’s latest information indicated there were no issues with their coverage level. “From all the information we have, there are no issues at all with the external reserve holdings,” he said. “They’re well within prudential norms. I can only confirm the reserves are healthy.” However, another financial analyst, also speaking on condition of anonymity, expressed concern about the Government’s increased foreign currency borrowing. “That’s not good,” they said. “They’ll have to manage that carefully. I’m not happy about that.” Kenwood Kerr, Providence Advisors’ chief executive, told Tribune Business that the $250 million facility’s interest rate was cheaper than the Government would obtain in the domestic debt market.

He added that the loan would help “shore up” the external reserves, pointing out: “Reserves are expected to be called on during the rebuilding as a result of Hurricane Irma, coupled with Christmas season shopping and inventory build-up “Also, while liquidity is generally available, credit criteria for the most part remains tight/rigid at the local commercial banks, and may impact consumers and, to some extent, Government’s borrowing ability in local currency.” Mr Kerr said the Central Bank was also moving to reduce its exposure to government bonds, and added: “The key is that the new administration must stick to the plan to be prudent, and address all necessary debt obligations and not over spend.” Mr Johnson, meanwhile, said he was focused on implementing the Government’s fiscal policy agenda, and providing mechanisms to help it achieve its objectives. He told Tribune Business that the Minnis administration was “so far on track”

with its bid to slash recurrent spending by 10 per cent ‘across-the-board’ this fiscal year, an initiative which Moody’s is projecting as delivering $100 million in extra savings. “We’re working hard to put that policy provision in place,” Mr Johnson said, “and we’re working with all the Ministries to do our best to control expenditure growth.” Conceding that it was “a challenging job to hold the line on spending”, the Financial Secretary said governments throughout the world were facing similar fiscal challenges to the Bahamas. “The way I look at is not to look at it as a challenge, but as an opportunity to see how we can do better and see how we can get more out of what happens,” he told this newspaper. “We all have to take this as an opportunity to do more with less, and make sure we maximise the resources we have. That’s the way to look at it positively; see what we can do better with what we have.”

to quantify with money damages.” Urgo, though, has initiated legal action of its own in the Bahamian Supreme Court, alleging that Sunset Equities owes it $556,000 in unpaid fees amid allegations of numerous contractual breaches. Its lawsuit cited 10 different management agreement violations allegedly committed by the Courtyard by Marriott’s owner, including that it had failed to make due payments to Marriott and the financiers that own the Junkanoo Beach property’s mortgage. Anticipating Urgo’s counter argument over the disputed fees, Sunset denied any funds were outstanding and argued that the issue could be resolved as part of the New York lawsuit. Describing its action as “both urgent and compelling”, the Courtyard by Marriott owner alleged: “Rather than effectuate a smooth transition of management of the hotel, defendant [Urgo] is threatening to wreak havoc on the hotel. “Defendant is threatening to curtail certain essential services to the hotel, and has refused to provide plaintiff and its new manager, Trust Hospitality, with access to its accounting system or provide the hotel’s historical financial information. “Plaintiff requires immediate access to the hotel’s

accounting system in order to determine its financial position, create monthly reports for audit, and to make adjustments. All of this information is based on servers located in the United States,” Sunset continued. “Plaintiff is in the midst of refinancing a loan on the hotel, and needs this accounting information to complete the transaction. Without this, plaintiff will suffer immediate and irreparable harm. Defendant has also threatened to terminate plaintiff’s access to the hotel’s reservation management system, which will throw the hotel into chaos if it is unable to access reservation information for its customers.” Sunset alleged that Urgo’s Don Urgo had written in a September 6, 2017, e-mail that it would cease providing management services to the Courtyard by Marriott property on Friday, September 8, and “terminate” all the resort’s EIDs. “The ‘EID’s’ are necessary for Plaintiff, or any manager of the hotel, to make reservations for customers,” Sunset alleged. “Without access to the EIDs, plaintiff will not have access to the reservations made by customers.” Following a letter from Sunset’s attorneys, Urgo wrote on September 13, 2017, that it would not terminate access to the ‘EIDs’ due to Hurricane Irma, “but

left open the threat it would do so imminently”. The Courtyard by Marriott owner then alleged that Urgo terminated its access to the resort’s Integrated Data Services (IDS) system, which tracks the accounting and finances, on September 11. Urgo is likely to point to the fact that Sunset allegedly terminated their management agreement in February 2017, and question why the resort owner has decided to litigate a dispute involving Bahamian-based assets in New York rather than Nassau. Recognising this, Sunset’s legal filings devoted significant space to why the action could not be heard in the Bahamas. An affidavit from its Bahamian attorney, Charles Mackay, of Mackay & Moxey, alleged that Urgo was not licensed to do business in this jurisdiction. As a result, Mr Mackay argued that Urgo had no legal standing in the Bahamas, while the blocking of access to financial and reservations data was taking place in the US. “As such, a Bahamian court would have no jurisdiction to prevent such actions as defendant [Urgo] is outside its territory,” Mr Mackay alleged. “The Bahamas does not have long-arm jurisdiction in the same fashion as in the United States.” Sunset again alleged that it had terminated Urgo’s

management agreement because it had violated obligations to obtain the necessary Bahamian government approvals, such as exchange control and hotel and Business Licenses, to enable it to operate the Courtyard By Marriott. However, Michael Scott, Urgo’s Bahamian attorney, previously alleged to Tribune Business that Sunset Equities’ “interference” had delayed his client’s efforts to obtain the necessary licenses and permits from the former Christie administration. And, pointing out that Urgo’s management agreement obligations only kicked-in once it possessed the necessary licenses, Mr Scott questioned why Sunset Equities had allowed the operator to continue providing accounting and other services at the Courtyard by Marriott after it had supposedly been ‘terminated’. “Why was Sunset accepting performance by my clients of accounting obligations and the rest of it?” Mr Scott asked. “The hotel could not function without my clients doing the accounting and running the place. “How could you terminate the agreement and be accepting accounting services? It makes no sense. It’s bizarre. It’s unreal.”

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 46 of 2000)

ANTAR ALGORITHM TECHNOLOGIES FUND LTD IBC No. 169606 B (In Voluntary Liquidation) NOTICE is hereby given that as follows: (a)

That ANTAR ALGORITHM TECHNOLOGIES FUND LTD is in Dissolution under the provisions of The International Business Companies Act 2000.

(b)

The Dissolution of the said Company commenced on the 14th day of September, 2017 when the Articles of Dissolution were submitted and registered by the Registrar General.

(c)

The Liquidator of the Company is Sterling (Bahamas) Limited 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 13th day of October, 2017 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

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 46 of 2000)

ALPHA CENTAURI QUANTUM FUND LTD IBC No. 169607 B (In Voluntary Liquidation) NOTICE is hereby given that as follows: (a)

That ALPHA CENTAURI QUANTUM FUND LTD is in Dissolution under the provisions of The International Business Companies Act 2000.

(b)

The Dissolution of the said Company commenced on the 14th day of September, 2017 when the Articles of Dissolution were submitted and registered by the Registrar General.

(c)

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

(d)

THE TRIBUNE

Monday, September 18, 2017, PAGE 5

‘Running in quicksand’: BPL bond no cure-all From pg B1

chief executive, are warning that the Rate Reduction Bond (RRB) refinancing will not cure the energy monopoly’s underlying problems. And Mr Maura, in particular, suggested that the Government and BPL will likely have trouble in placing the RRB with financial investors simply because the utility is not a going concern. The two spoke out after the International Monetary Fund (IMF), in its statement on the Article IV consultation with the Bahamas, described moving ahead with the RRB as “a critical step” to energy sector reform and cheaper, more reliable power. However, Mr Maura told Tribune Business: “The mention of the rate reduction bond, I believe, is quite a bit more involved than they indicate. BPL is bankrupt, and if you don’t agree why is over 30 per cent of the permanent power generation off-line? Why are we spending approximately $20 million a year on temporary power in New Providence alone? “To complete a rate reduction bond, BPL must be a going concern, not propped up. It must be professionally managed, and equipped with efficient, modern cost, effective generation. The finance community will want to see evidence that BPL will have no difficulty in meeting financial targets, and this means BPL must be fixed before the rate reduction bond is secured. “Who in their right mind would lend $600 million to a company that can’t pay

its bills today?” Mr Maura added. “And the other issue is that the Government is not in a position to guarantee the debt. “Furthermore, the rate reduction bond will need to be paid by the utility’s consumers, and that is you and me. We cannot afford to pay more, so this means that BPL will need to produce less expensive, reliable power so that we do not realise an increase in our individual electricity costs. Energy is - and has been - killing our growth. It’s comparable to running in quicksand; eventually you stop and die.” Mr Maura’s sentiments were echoed by Mr Kerr, who told Tribune Business: “While they [the IMF] mention the RRB, is is not the panacea for BPL. “You’re raising the money without fixing the underlying problems. The underlying problem at BPL is to fix the generation at BPL, which will lead to reliable, lower cost electricity.” Refinancing the Bahamas Electricity Corporation’s (BEC) legacy $350 million debt, together with unfunded pension and other environmental liabilities, was initially seen as key to freeing up the balance sheet of its newlycreated subsidiary, BPL. An RRB would have been issued to investors by a special purpose vehicle (SPV), raising between $600-$650 million in new capital to pay out these liabilities, while keeping the new debt off both the Government’s and BPL’s balance sheets. In theory, this would have freed the latter to raise fresh capital essential

to upgrading its generation and transmission and distribution infrastructure, leading to more reliable, lower cost energy. However, despite passing legislation for the RRB’s creation, both the former Christie administration and current Government have been reluctant to move ahead with the refinancing vehicle. The previous government is understood to have run into the problems identified by Messrs Maura and Kerr, namely a cool attitude towards the RRB from potential investors - Bahamian and foreign - who were reluctant to part with their capital until BPL’s underlying technical and financial problems were on the way to resolution. Desmond Bannister, minister of works, who is responsible for BPL, recently told Tribune Business that the Government would support no refinancing solution that increases the energy costs for Bahamian businesses and households. Given that a portion of consumer tariffs would have to go towards servicing principal and interest payments to RRB investors, this is exactly what the proposed bond may do. This is also understood to have given the Christie administration pause for thought prior to the general election, but the Bahamas may have not choice but to increase costs short-term for longer term gain. Mr Maura, meanwhile, backed the IMF’s call for civil service pension reform. Agreeing that public servants should contribute to their retirement income, he said: “Yes, why not.

“The Government is a business and must run as a business. That means having a fair and balanced relationship with labour. The days are gone where pensions are 100 per cent company funded. The $1.5 billion pension liability is unmanageable.” Agreeing that the Government needed to balance fiscal controls with the flexibility to respond to hurricane-related disasters, the Chamber chairman added: “The discussion surrounding fiscal responsibility legislation seems reasonable recognising that mechanisms must exist to address unforeseen exceptional circumstances. “That said, the Government’s fiscal policy should consider curtailing expenditure, restructuring operations and investing in growth. We need GDP growth, which will undoubtedly be supported by public debt and expense reductions, but it is dependent on capital investments which directly result in job creation, productivity, innovation and economic activity.”

US RETAIL SALES DIPPED 0.2 PCT. IN AUGUST AS AUTO SALES FELL By MARTIN CRUTSINGER Associated Press WASHINGTON (AP) — Consumers cut back on their shopping in August by the largest amount in six months as declining auto sales offset gains in other areas. Retail sales dropped 0.2 percent last month after a 0.3 percent gain in July, the Commerce Department said Friday. It was the biggest one-month decline since a 0.2 percent decline in February. Auto sales sank 1.6 percent in August, the most in seven months. Excluding autos and gas, which tend to be volatile from month to month, sales dipped 0.1 percent in August after having risen 0.5 percent in July. Still, thanks to a still-solid job market, economists generally remain upbeat about retail sales in coming months, with many saying they expect consumer spending to grow at a solid

2.5 percent rate in the JulySeptember quarter. Sales rose last month at general merchandise stores, a category that includes bigbox retailers such as Target. Rising gasoline prices also boosted sales. The overall economy, as measured by the gross domestic product, grew at a robust 3 percent annual rate in the April-June quarter, more than double the lackluster 1.2 percent rate in the first quarter. Analysts generally predict that growth in the current July-September quarter will remain in a solid range of 2.5 percent to 3 percent, with a key boost coming from consumer spending. The consumer sector, which contributes to 70 percent of economic activity, is benefiting from the lowest unemployment rates in 16 years and continued strong job gains. For August, gasoline sales were up 2.5 percent, the biggest jump since last December.

PAGE 6, Monday, September 18, 2017

THE TRIBUNE

Bahamians ‘put out of business’ if no lending, exchange control ease From pg B1 enough in positioning the economy to grow and compete under rules-based trading regimes. He argued that Bahamian companies must have a chance to “expand into foreign markets” ahead of more local industries being opened up to foreign rivals, especially if this nation proceeds with accession to full

World Trade Organisation (WTO) membership. Speaking after the International Monetary Fund (IMF) last week suggested that the Bahamas implement a low-rate income tax “over the medium term”, to compensate for revenues lost as result of EPA and WTO-related tariff reductions, Mr Myers reiterated that tax reform should not be dictated by one factor.

Instead, he argued that any reforms should be geared towards improving the Bahamian economy’s competitiveness and that of local businesses. “We’ve got to look at our tax structure, but not just to increase government revenues,” Mr Myers told Tribune Business. “We’ve been very reactive towards the EPA and WTO, and not getting out ahead of it to provide opportunities for the private sector and citizens. “There is no doubt that there is a need to carefully examine our tax structure and monetary policies ahead of the nation’s full

integration into WTO and EPA. Both ORG and the CRT (the Chamber of Commerce’s Coalition for Responsible Taxation) have been encouraging the Government to be far more proactive in meeting these demands, so as to allow Bahamians an opportunity to expand their businesses into foreign markets ahead of foreigners being permitted to unfairly compete with Bahamians in the Bahamas.” Mr Myers specifically added that “exchange controls and the high cost of debt are two significant hurdles that the Government

must address as it examines its tax options”. He said the relatively high cost of capital for Bahamian companies, compared to their foreign and regional counterparts, placed them at an immediate competitive disadvantage when bidding for work and projects in this nation and outside. “If the cost of debt [interest rate] here is 8.5 per cent, and that guy is going out to compete in the Bahamas and regionally, and some guy in Jamaica or Europe is borrowing at 2 per cent, how is that guy going to compete in the WTO and EPA era,” Mr Myers asked. “They (foreigners) can transact internationally, but exchange controls eat up more of our time, slow us down and cost us more of our money. The Government should be looking at ways to get Bahamians to expand our horizons and grow our economy; not just locally, but regionally. “Let’s take advantage of these agreements, and start being proactive, not reactive. I’ve said to the Government on numerous occasions over the last eight years that they’ve got to relax exchange controls and improve bank lending rates before that [WTO] happens, otherwise we will not be able to compete and they will put Bahamian businesses out of business. Give us a chance to compete before foreigners come in here.” The Central Bank of the Bahamas has been moving to gradually relax exchange controls, and provide

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Bahamian businesses with access to foreign currency financing, especially those in sectors seen as having particular development and exchange earning potential. The Government in April approved measures that will enable Bahamian businesses to access up to $5 million in foreign currency financing every five years, a measure designed to aid small and mediumsized businesses and the “upper end” of the real estate market. The reforms are targeted at 11 sectors seen as supporting the Bahamas’ medium to long-term national development goals, and having a positive impact on the country’s foreign exchange earning capability. Those industries are: Agriculture and fisheries; manufacturing; transport (land, sea and air); tourism (hotels and restaurants); construction and real estate for residential tourism; energy and energy conservation; education; health; telecommunications; ICT; and infrastructure. “The focus has got to be on the ways to stimulate growth of the private sector, and improve opportunities for citizens to earn more through greater knowledge, productivity and efficiency,” Mr Myers told Tribune Business. “Commercial banks should be aggressively encouraged to reduce interest rates, as this will improve the cost of doing business and stimulate business development. At the same time they must avoid further lending to unqualified borrowers as current bank default rates are too high.”

NOTICE Pursuant to the provisions of Section 138(2) of the International Business Companies Act, 2000, (As Amended) NOTICE is hereby given that, NYGARD BAHAMAS LIMITED has been dissolved and that the name has been struck from the Register of Companies with effect from the 24th day of August, 2017.

MARKET REPORT THURSDAY, 14 SEPTEMBER 2017

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

BISX ALL SHARE INDEX: CLOSE 1,867.88 | CHG 0.05 | %CHG 0.00 | YTD -70.33 | YTD% -3.63 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 2.41 0.15 6.47 8.60 6.30 10.60 14.49 2.52 1.60 6.00 10.00 11.00 3.75 7.25 12.51 11.00

52WK LOW 4.05 17.43 8.19 3.50 1.39 0.12 3.80 8.40 5.83 9.46 10.00 2.18 1.50 5.80 8.75 7.01 3.06 6.60 11.93 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 105.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.01

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00

52WK LOW 100.00 100.00 100.00

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

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

MUTUAL FUNDS 52WK HI 2.08 3.96 1.96 170.77 146.34 1.50 1.67 1.58 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.44 1.63 1.55 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.28 17.43 9.09 3.70 1.39 0.14 3.92 8.60 6.10 10.60 10.01 2.44 1.55 6.00 9.75 7.08 3.41 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 109.37 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.65 1.39 0.14 3.92 8.60 6.10 10.60 10.01 2.50 1.55 6.00 9.75 7.08 3.41 7.01 12.50 10.00

CHANGE 0.00 0.00 0.00 -0.05 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 0.00 0.00 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 1.01

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

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

109.56 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

VOLUME

1,000

VOLUME

NAV 2.08 3.96 1.96 174.30 146.25 1.50 1.63 1.58 1.08 6.92 8.03 6.15 10.52 11.46 10.01

EPS$ 0.467 0.932 -0.230 0.540 -0.340 0.000 -0.857 0.574 0.681 0.540 0.559 0.102 0.455 1.212 0.768 0.575 0.929 -0.602 0.697 0.000

DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.000 0.300 0.220 0.360 0.570 0.060 0.060 0.290 0.450 0.000 0.340 0.140 0.620 0.000

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

P/E 9.2 18.7 N/M 6.8 N/M N/M -4.6 15.0 9.0 19.6 17.9 24.5 3.4 5.0 12.7 12.3 3.7 -11.6 17.9 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 0.0

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

INTEREST 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

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

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 2.55% 4.51% 1.07% 1.53% 1.38% 2.48% 3.48% 4.01% 3.17% 7.00% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Jul-2017 31-Jul-2017 28-Jul-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 31-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017

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

YIELD 1.87% 5.74% 0.00% 5.75% 0.00% 0.00% 0.00% 3.49% 3.61% 3.40% 5.69% 2.40% 3.87% 4.83% 4.62% 0.00% 9.97% 2.00% 4.96% 0.00%

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

Enervo Admisitration Limited Liquidator Montague Sterling Centre East Bay Street Nassau, The Bahamas

Legal Notice

NOTICE

NOTICE IS HEREBY GIVEN as follows: (a) BLUE WOOD SERVICES LTD. is in dissolution under the provisions of the International Business Companies Act 2000. (b) The Dissolution of said Company commenced on September 15, 2017 when its Articles of Dissolution were submitted and registered by the Registrar General. (c) The Liquidator of the said company is Zakrit Services Ltd. of 2nd Terrace West, Centreville, Nassau, Bahamas. (d) All persons having Claims against the above-named Company are required on or before October 16, 2017 to send their names and addresses and particulars of their debts or claims to the Liquidator of the company or, in default thereof, they may be excluded from the benefit of any distribution made before such debts are proved. September 15, 2017 ZAKRIT SERVICES LTD. LIQUIDATOR OF THE ABOVE-NAMED COMPANY

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

THE TRIBUNE

Monday, September 18, 2017, PAGE 7

Downgrade consequences ‘too harmful to contemplate’ From pg B1 taxpayers “leaves a lot to be desired.” Dr Sands was speaking after the International Monetary Fund (IMF) warned that any expansion of the NHI scheme launched by the Christie administration was unaffordable without new tax revenues to finance it. “We agree wholeheartedly with that position,” he told Tribune Business of the IMF. “The decision to cut the Budget for NHI reflected a degree of fiscal conservatism or prudence in that we could not see the wisdom of extending benefits that we don’t have

the financial headroom to pay for. “We have a very elaborate scheme that lacked one minor component, which was how to pay for it. The decision we have made is that every decision we make as an administration, as wonderful and progressive as they may be, has to reflect a level of financial responsibility.” K P Turnquest, deputy prime minister and minister of finance, added that the IMF was merely the latest in a long line of Bahamian and international observers to point out that the NHI scheme left by the Christie administration was “unsustainable”.

“It was introduced by the last government with no plan as to how it would be funded,” he told Tribune Business. “It’s safe to say that the IMF has commented, as well as Moody’s and others, that the plan brought forward by the previous government was unsustainable in the current design, and needs to be re-engineered if it is to go forward.” Pointing to the Government’s targeted 10 per cent recurrent spending cut across the entire 20172018 Budget, meanwhile, Dr Sands said it was vital that all initiatives “eliminate the shortfall between expenditure and revenue”. “There’s no way we’re going to pursue a $100 million, $200 million, $400 million programme; a ‘whatever’ programme that

does not have a palatable means of financing,” he added. “Everyone could use an extra $1 million there, an extra $2 million here or $5 million for somewhere else. If we continue to walk down that road, a downgrade is not only likely, but is absolutely going to happen and the consequences of that are too harmful to consider.” Dr Sands indicated that the Government is planning to take action many in the medical industry have called for, namely to strengthen and improve the existing public healthcare system before it looks to implement NHI and ways to finance the scheme. “There are so many things that have to be corrected in healthcare,” he told Tribune Business,

“that I have made a public statement that before we go to the public and ask them to bear another tax, our product as to be even better, and improve efficiency, service and the public perception of value.” Dr Sands said there was “a tremendous amount of internal introspection” currently going on within the public healthcare system. As an example, he disclosed that Princess Margaret Hospital (PMH) was “critically” assessing its pharmaceutical procurement and administrative processes. “We realise we need to make some fundamental changes in the way we procure medicines,” he added, making sure that the process delivered value for patients and taxpayers, and eliminated waste.

Dr Sands said the assessments went beyond just medicine procurement, and added: “Built into the healthcare system already is a significant amount of savings that can impact NHI before we ask the Bahamian people to bear an additional tax. I don’t think the public needs to be concerned that this administration is planning to implement a tax to pay for NHI.” Pointing out that the $2,500 per person, per year that Bahamians spent on healthcare was more than for most countries, the Minister said: “What we get from that leaves a lot to be desired. “This is not about spending more money. This system has evolved to what it is. It is pretty good, but it can be better.”

S&P 500 TOPS 2,500 MARK AS TECH AND BANK STOCKS CLIMB By MARLEY JAY Associated Press

points, or 0.5 percent, to 1,431.71.

NEW YORK (AP) — U.S. stocks edged higher Friday as technology companies and banks rose. The Standard & Poor’s 500 index closed above 2,500 for the first time as stocks had one of their best weeks this year.

Industrial production in the U.S. fell 0.9 percent in August, the biggest drop in eight years, as Harvey knocked numerous oil refining, plastics and chemicals factories out of business for a time. Many of those factories are based in the Gulf Coast region that Harvey hit. The Federal Reserve said the weather and flooding was responsible for almost all of the loss. Apple picked up $1.60, or 1 percent, to $159.88 after three days of declines. Chipmaker Nvidia jumped $10.71, or 6.3 percent, to $180.11 and hard drive maker Western Digital gained $2.73, or 3.2 percent, to $88.52. However shares of software maker Oracle absorbed their biggest loss in four years. The company’s first-quarter profit and sales were better than investors expected, but analysts were concerned about forecasts for its cloud computing business. Oracle lost $4.05, or 7.7 percent, to $48.74.

Stocks wobbled in early trading after the Commerce Department said retail sales slipped in August and the Federal Reserve said industrial production dropped last month, mostly because of Hurricane Harvey. But big names like Apple and Boeing took the market higher. Stocks made big gains Monday and as Hurricane Irma weakened, and they didn’t do too much after that, but still wound up with their biggest weekly gain since the beginning of January. Rick Rieder, the chief investment officer for BlackRock’s global fixed income business, said retail sales and inflation have been weak because technological changes keep reducing the prices

A SIGN for Wall Street carved into the side of a building in New York. U.S. stock indexes are inching mostly higher in early trading on Wall Street, Friday, Sept. 15, 2017, as more gains for Boeing send the Dow Jones industrial average above the record high it reached a day earlier. (AP Photo/Mark Lennihan, File) of clothes, food, travel, and phone plans. That lowers measurements of sales revenue, like the one the government released Friday, but Rieder said they keep people buying — even though the same technological changes can also lower people’s wages.

“We get everything cheaper than we used to because of the internet and delivery mechanisms,” he said. “The price is coming down so quickly that it’s helping demand.” The Standard & Poor’s 500 index gained 4.61 points, or 0.2 percent, to a

record 2,500.23. The Dow Jones industrial average rose 64.86 points, or 0.3 percent, to 22,268.34, its fourth record close in a row. The Nasdaq composite added 19.38 points, or 0.3 percent, to 6,448.47. The Russell 2000 index of smaller-company stocks picked up 6.69

Boeing rose $3.77, or 1.5 percent, to $249 as the aerospace company continued to set record highs. Its stock is up 60 percent in 2017. Stocks in the U.K. slumped to a four-month low and the pound rose to its highest level since mid2016, after Bank of England officials confirmed they are close to raising interest rates for the first time in a decade. The first step could happen as soon as November. Many companies on the British FTSE 100 are multinationals whose overseas earnings are diminished in value when the pound appreciates against other currencies. The pound surged to $1.3571 from $1.3398, its highest since mid-2016. The FTSE 100 fell 1.1 percent after a 1.1-percent loss Thursday. U.K. stocks did not appear to be affected by a bomb attack on a London subway train. Police said an improvised explosive device hurt more than 20 people, but none of the injuries appeared to be life-threatening.

PAGE 8, Monday, September 18, 2017

THE TRIBUNE

A HOUSE rests on the beach after collapsing off a cliff from Hurricane Irma in Vilano Beach, Fla., Friday, Sept. 15, 2017. Florida’s economy has long thrived on one major import: people. Irma raised concerns about just how sustainable the allure of Florida’s year-round warmth and lifestyle are. The wind, rain and flooding inflicted an estimated $50 billion in damage. (AP Photo/David Goldman)

IRMA’S DAMAGE A REMINDER OF FLORIDA ECONOMY’S VULNERABILITY By JOSH BOAK Associated Press WASHINGTON (AP) — Florida’s economy has long thrived on one import above all: People. Until Irma struck this month, the state was adding nearly 1,000 residents a day — 333,471 in the past year, akin to absorbing a city the size of St. Louis or Pittsburgh. Every jobseeker, retiree or new birth, along with billions spent by tourists, helped fuel Florida’s propulsive growth and economic gains. Yet Hurricane Irma’s destructive floodwaters renewed fears about how to manage the state’s population boom as the risks of climate change intensify. Rising sea levels and spreading flood plains have magnified the vulnerabilities for the legions of people who continue to move to Florida and the state economy they have sustained. Florida faces an urgent need to adapt to the environmental changes, said

Jesse Keenan, a lecturer at Harvard University who researches the effects of rising sea levels on cities. “A lot is going to change in the next 30 years — this is just the beginning,” Keenan said. People might need to live further inland, Keenan said, and employers might have to relocate to higher ground, with the resulting competition between offices and housing driving up land prices. It would become harder to adequately insure houses built along canals. Traffic delays could worsen across parts of Florida as more roads flood. Developers might shift away from sprawling suburban tracts toward denser urban pockets that are better equipped to manage floods. At the same time, the belief remains firm among some developers and economists that for all the threats from rising water levels, the state’s population influx will continue with scarcely any interruption. The allure of lower taxes and easier

living, the thinking goes, should keep drawing a flow of residents and vacationers. “Irma doesn’t change the fact that there is no state income tax,” said Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness. “In a few months, when the first Alberta Clipper starts blowing down cold weather across the United States and it’s 80 degrees and sunny down here, the memories of Irma will be blown away.” Certainly, the influx of people has been testament to that appeal. After slowing when the housing bubble burst in 2007, the population has marched steadily upward. The number of Floridians, now above 20 million, is projected to hit 24 million by 2030, with more than half the increase coming from retiring baby boomers. Many of them first experienced Florida as tourists. More than 112 million people visited the state last year — a 33 percent increase over the past decade.