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THURSDAY, OCTOBER 1, 2020

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COVID ‘worst time’ to eye dollarisation

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

C

OVID-19 is “the worst time” for The Bahamas to consider full dollarisation, an ex-finance minister said yesterday, arguing there were better options for attracting mass foreign currency inflows.

James Smith, also an exCentral Bank governor, told Tribune Business that the near-total drying up of tourism-related foreign exchange earnings over the past six-and-a-half months would make it “almost

• Bahamas must ‘first rack up serious US dollars’ • Economist, ex-finance minsiter against move • Says B$ bond sales to foreigners is alternative

JAMES SMITH

impossible” for The Bahamas to effect a one-to-one conversion of its financial system’s multi-billion dollar Bahamian liabilities into US dollars.

To address the urgent need to further bolster the external reserves, which stood at $2.128bn at endAugust 2020, Mr Smith instead called for The Bahamas to temporarily lift restrictions on foreign

investors acquiring Bahamian dollar government bonds from their local counterparts via the secondary market that is now listed on the Bahamas International Securities Exchange (BISX) To guard against market volatility, and limit the government’s exposure to foreign currency debt servicing, Mr Smith suggested

SEE PAGE 8

Superplex warns of ‘serious decisions’ on staff, finances

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Fusion Superplex will “have to make some serious decisions” on staff terminations and restructuring its finances if it is not permitted to open by early November, its chief executive warned yesterday.

Carlos Foulkes told Tribune Business that “patience has already worn thin” among the cinema and entertainment complex’s lenders even though they recognise its six-and-a-half month closure is due to a pandemic beyond the company’s control and is covered by a “force majeure” clause in the two sides’ agreements.

Acknowledging that Fusion Superplex’s debts were increasing for every day it remains closed with no revenue income, Mr Foulkes said this “creates a

• Unless permitted to re-open by early November • Reveals lenders ‘already at end of the line’ • Will cut cinema capacity to ‘30% maximum’

FUSION SUPERPLEX higher burden for the business to recover from and get back on its feet”.

He explained that the complex, which overlooks the JFK Drive and Gladstone Road roundabout, was pushing for permission to

Tour provider: COVID growth ‘unacceptable’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A MAJOR tour operator yesterday branded The Bahamas COVID-19 response as a “disaster” and voiced fears that the cruise ships may bypass Nassau even if they resume sailing in November.

Peter Rebmann, Pearl Island’s managing partner, told Tribune Business he was “very surprised” by media reports suggesting that the Trump White House overruled the Centres for Disease Control and Prevention (CDC) push for the

ban on cruise ship sailing to be extended until February 2021. Instead, the industry will be allowed to sail from November, although there has been no official confirmation.

“I’m not surprised that the cruise ships were all telling us a long time ago that before November there is nothing going on, so I don’t expect anything in 2020. It’s a complete write off. It’s certainly a disaster for every tour operator involved with the cruise lines. But I also understand all of the safety concerns,” said Mr Rebmann.

SEE PAGE 5

BOB takes $6.3m hit over govt downgrade

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BANK of The Bahamas’ was forced by the Moody’s ‘junk’ downgrade of the government’s sovereign creditworthiness to take a $6.3m provisioning hit, its managing director said yesterday.

Kenrick Brathwaite told Tribune Business the provisioning was required because the downgrade hit the value of the BISX-listed institution’s government debt holdings, as COVID-19’s economic fall-out

drove it to a $7.413m net loss for the financial year that closed on June 30.

“We had to create an additional sovereign debt position because of the downgrade,” Mr Brathwaite explained. This, together with $15.348m worth of loan loss provisions related to its credit portfolio, produced a more than $10m negative bottom line reversal compared to the $2.9m net profit that Bank of The Bahamas generated in 2019.

“The bank recorded net operating income of $14.3m

SEE PAGE 5

re-open between late October and early November so that it could adjust staffing levels to consumer demand and “know what the business is capable of” prior to the late 2020 round of Hollywood movie releases.

Revealing that cinema capacity will be “down to 30 percent maximum” upon Fusion Superplex’s re-opening to comply with COVID-19 social distancing requirements, Mr Foulkes said a comprehensive health and safety plan has been submitted to the competent authority (Prime Minister’s Office) and he was hopeful of receiving a “opening date” reply by the end of this week.

Noting that cinemas and theatres in jurisdictions such as Canada have begun to re-open, he told this newspaper: “Our market just has

SEE PAGE 4

ENTRANCE to the Port Lucaya Marketplace.

Lucaya Marketplace faces ‘nail biting’ wait

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PORT Lucaya Marketplace’s principal yesterday said he and his tenants were enduring “a nail biting” time with just 50 percent of stores having re-opened amid the wait for tourism’s post-COVID restart.

Peter Hunt told Tribune Business that tenants were receiving 40 percent discounts on their normal rental payments as he warned that Grand Bahama faced “a slow death” without the rebuilding of its international airport and reopening of its major resort.

Arguing that both are “key to the island’s survival”, he added that the government could not afford for Grand Bahama’s sake to “wait” forever for the ITM Group/Royal Caribbean joint venture to close the Grand Lucayan’s acquisition and begin their planned redevelopment of Freeport Harbour.

Sources familiar with developments, speaking on condition of anonymity, suggested the government was now hoping to avoid giving ITM Group/Royal Caribbean a further extension and instead close the deal next month.

However, a further complication is that the joint venture has yet to close the

arrangement with Hutchison Whampoa-controlled Freeport Harbour Company for the harbour, and does not want to commit to sealing the Grand Lucayan’s purchase until this is closed.

Mr Hunt, though, argued that the government will have to intervene to both acquire Grand Bahama International Airport from Hutchison/the Grand Bahama Port Authority (GBPA), and reinvest to re-open the Grand Lucayan itself, if both situations continue to drag on.

Port Lucaya Marketplace and its tenants have traditionally relied heavily on Grand Lucayan guests, and Mr Hunt: “The stores that have been allowed to open, we’re offering 40 percent off the rent and are currently undertaking a clean up of Port Lucaya with landscaping, painting and cleaning to give it a bit of a lift for when the cruise lines come back and the airlines start flying again.

“But a lot [of tenants] didn’t want to open because they’re saying there’s no business. There’s no cruise ships, no airlines and, more importantly, the Grand Lucayan is not off the ground. A lot of the businesses survive off tourists.”

Mr Hunt said that while cruise passengers typically

SEE PAGE 5

PAGE 2, Thursday, October 1, 2020

Capturing the brand message with logos

Y

OUR logo is your company’s first point of contact with the outside world. If people connect with your branding, the likelihood is they will be more susceptible to what you are offering. If your logo looks amateurish, so will your business.

Great logo designs require a complex mixture of skills, creative theory and skillful application.

Like any design, it must

share or impart a message that can be a story, an idea, an emotion or mood.

Most designers can create a fit-for-purpose logo, but mastering all aspects of the craft takes time. Thus logo design still remains the centrepiece of most branding schemes.

Competition Where there was once just a handful of companies operating within a particular market or niche, there are now thousands

THE TRIBUNE competing for attention, all wanting everyone to look at them first. This creates an increasing need for brands to visually differentiate themselves so that they are not confused with competitors.

Depending on the company, the identity can include uniforms, vehicle graphics, business cards, product packaging, photographic style, coffee mugs and billboard advertising, right down to the font choice on a website.

Symmetry Differentiation is achieved through brand identity design, a range of elements that all work together to form a distinctive picture in our minds.

In fact, the eye is naturally drawn to symmetrical images. Ultimately, when we look at something, we do not read first. We see shapes and colour, and if that is enough to hold our attention, then we will read thereafter.

Be guided that a logo is best designed in a vector graphics system such as

Adobe Illustrator. This ensures the logo can be scaled to any size. Do not use stock art. Too often, small businesses use such images due to lack of funds, but they forget the many pitfalls. When the right logo is aligned with an excellent product for a significant amount of time, it can eventually become priceless.

Relevant An argument can easily be made that designers not only design, but sell as well. The more appropriate the rationale behind a particular design, the easier it becomes to sell the idea to a client, which is sometimes the most challenging part of a project. Avoid designing for yourself, as the primary purpose of a logo is to convey a message to the target audience. It is OK to ask your client from the outset: What do you do? What makes you different? Who are you here for?

What you discover in this phase of a project will help to determine the strongest possible design direction.

Simplicity Complex logo designs are not essential. If there are too many visual elements in the design, the logo loses its effectiveness and the artwork can become a visual nightmare with myriad parts vying for attention.

A trademark has to be focused in concept. Have a

single “story” and, in most cases, be straightforward.

This is important as it needs to work at a variety of sizes and in a range of applications. Always strive to eliminate as many elements as possible until you are left with something basic but powerful. You may be surprised that your simplest idea is often your best.

Broader identity Do not blend in. Always aim to stand out. If your logo resembles another logo, it is time to start over.

The greatest logos are those that people can recall and reproduce easily.

Another important factor is that a logo does not have to show what a company does. In fact, it is better if it does not, as the more abstract the mark, the more enduring it can become.

To conclude, when someone has impacted your life, it is almost certain you will remember what he or she looks like. We can easily picture the logo just by thinking about our experiences with the product, company or service.

Successful branding is about telling a story that influences customers’ emotions, and your logo design plays a massive role in ensuring recognition of the company’s brand. It is the “most valuable” weapon for any company, so make every effort to get it right.

The Art of Graphix

BY DEIDRE M BASTIAN

Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game.

NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre Bastian is a professionally-trained graphic designer/brand marketing analyst and certified life coach with qualifications of M.Sc., B.Sc., A.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.

Work space provider expands to third site A BAHAMIAN shared work space provider yesterday said it is expanding to its third New Providence location with the launch of its Old Fort Bay facility before 2020 year-end.

Incudesk, which was founded in December 2017, said its latest complex marks the third work space it has opened in less than 36 months. Formed by William Bastian and Ericka Wilson, who are themselves small business owners, it started with a 12-office Chesapeake Road site before opening a second shared work space

at No 1 Bay Street in the British Colonial Hilton’s corporate centre.

The firm, in a statement, said its concept had attracted many companies to host their call centers at its facilities in a bid to reduce overhead costs.

Workspace solutions began to grow as a concept in mid2017 as companies such as Apple, Facebook, Alibaba and Samsung made workspaces their line staff hub, hosting call centres and non-customer facing employees within these areas.

The latest Incudesk location is designed to offer affordable office spaces and work hubs; 24-hours access; business class services; and all-inclusive amenities and utilities.

The Old Fort Bay site will pre-launch via an invitation-only open house towards the end of November. Its sales desk opens today for persons wanting to pre-lease the various inter-workspace solutions.

The company can be contacted via its website, www. incudesk.com, or by calling its sales office at 333-3333.

THE TRIBUNE

Thursday, October 1, 2020, PAGE 3

Goodman’s Bay project eyeing 100 extra hires

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A $120m development at Goodman’s Bay expects to hire up to 100 additional workers next year despite COVID-19 causing a three-month delay to its construction schedule.

Randy Hart, the Wynn Group’s vice-president, told Tribune Business that the Residences at Goldwynn project will be completed in two phases. The residential section is being targeted for a December 2021 completion, with the hotel portion of the 160-unit development set to close three months later in March 2022.

“The main contractor is Bahamas High Rise Construction; that’s one of the Mosko Group of Companies,” Mr Hart said, “and they are responsible for the super structure, in other words, putting up the basic bones of the building. The balance of the work we are self-performing through our hiring locally with our construction management team, so we have another 80 or so employees.

“By and large, the vast majority of them are Bahamians who are carrying out the balance of the work, and that would include the mechanical, electrical and plumbing, and all of the interiors with window, doors and installation - everything that goes inside of it aside from the concrete work.”

Mr Hart added that the Wynn Group expects to “ramp up significantly once the super structure is completed by the end of this year”. He added: “In 2021, we will be moving into the second phase, which is going to be all of the interior and guts of the building, and we will be looking at at least another 75 or 100 employees.”

Wynn Group, in materials released this week, said construction work has

THE GOLDWYNN project making progress. now reached the sixth and top floor of the Residences despite the delays caused by the COVID-19 pandemic and associated lockdowns/ restrictions imposed earlier this year.

Mr Hart said this caused Wynn Group to “adjust our schedule by approximately three months” after six weeks’ worth of construction time was lost. He added: “We had supply chain issues. Our windows and doors were coming from northern Italy, so we had some panic there, but they are now actually delivered to the site and are being installed.

“That’s in the rear view mirror at this point, but we certainly had some challenges that resulted in delays. More recently we have accelerated our construction, and we have received permission from the Prime Minister’s Office to work extended hours.

That was about a week ago we received permission to work on Sunday’s and Saturday afternoons, so that is going to give us a little more impetus to progress on construction. “‘Time is money’ is all I can say. When you have fixed overheads and construction management teams and other general conditions, the longer you extend those, that comes out of your bottom line. So any delays are costly.”

Mr Hart added that COVID-19 has posed “significant challenges” to unit

sales due to the difficulties prospective international buyers currently have in accessing The Bahamas to see the property. He added: “We have had a fairly impressive number of sales in the local market, but that is obviously insufficient to sustain a project of this size.

“We are heavily dependent on the foreign, international market. What we have been able to do is get people to commit to purchasing units subject to inspections, as we have had to give them a considerable amount of time to get here.

“We are very eager to find out when the country will be re-opened for business so that our intending purchasers can come down and see the property and proceed. It’s imperative to us that the re-opening happens in a timely fashion, obviously having regard to safety, but this is a challenge most other countries are dealing with as well. I think the realisation is that we have to learn to live with COVID-19 until the vaccines are readily available.”

Mr Hart continued: “We have seen heightened interest and inquiries since COVID-19 [started], which may sound counter-intuitive, but what we have discovered is that with all of the turmoil going on, affluent people are looking for exit strategies from the country of origin.

“The Bahamas still has a

SEE PAGE 4

Tourism restart ‘more important’ than jobless benefits extension

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE hotel union’s president yesterday said the industry’s re-opening, and easing of the 14-day mandatory quarantine, are “more important” to workers than the unemployment benefits extension.

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s president, told Tribune Business that while furloughed resort workers were “grateful” for the government’s decision to extend welfare assistance beyond yesterday’s planned expiry they preferred to return to work so they can provide for themselves.

Emphasising that workers across the Bahamian hospitality industry, not just the hotel sector, “don’t want to be seen as ungrateful”, Mr Woods said the extension was creating “mixed feelings” given the continued welfare dependency of many in the tourism industry.

“What they’re wanting to know is what kind of plans are there to open up the industry so that business can flourish and they can take care of themselves. That’s what has not been heard,” the hotel chief told this newspaper.

“Speaking with a couple of resorts, that’s what they’re waiting for. Their concern is the Vacation in Place (VIP) 14-day quarantine rule because that is hindering guests wanting to come back since it restricts their freedom of movement.

“While we’re grateful for the extension in unemployment assistance, what’s more important going forward is to have a full re-opening of the industry and economy at large. That’s really what we’d like to hear,” Mr Woods added.

“As opposed to the extension of unemployment benefit, we need a plan in place for the full re-opening of the industry so that

DARRIN WOODS

PETER GOUDIE

more people can be gainfully employed. That’s what people want; to go back to work safely and be able to provide for themselves, because this is assistance and not full income replacement.

We need to know what’s happening because there ain’t nobody coming with VIP.” Dionisio D’Aguilar, minister of tourism and aviation, told this newspaper earlier this week that discussions between his ministry, the Prime Minister’s Office and the Ministry of Health had settled on an acceptable plan for easing the 14-day quarantine requirements but without endangering COVID-19 related health and safety.

Hinting that this would involve testing of tourists both upon their arrival and during their stay, Mr D’Aguilar said an announcement could come as early as this week, but nothing has occurred so far. He added that the government was still determining the mechanisms and procedures for how the quarantine alternative will be rolled-out.

In the meantime, a number of Atlantis employees have begun to push for full severance packages as frustration grows over the absence of an opening date for the mega resort. However, Atlantis says it has no plans at the moment to offer these, while the Employment Act provision that says employers must either recall or pay severance to workers furloughed for 90 days has been suspended until

end-November under the COVID emergency powers orders.

Mr Woods said the union’s last industrial agreement with resort employers, the terms of which they are following despite its expiration, permit members to seek severance pay from employers if they have been furloughed for ten weeks or more. He acknowledged, though, that the COVID orders may cut across this even though Baha Mar and the British Colonial Hilton have terminated staff during this time.

The government plans to allocate $45m to the continuation of its COVID-19 support initiatives after the move was approved by the Minnis Cabinet. K Peter Turnquest, deputy prime minister, said both the government-funded unemployment benefit and various private sector assistance initiatives will be further extended beyond today’s intended expiry.

Acknowledging that the tourism industry’s delayed return meant the extension was inevitable, Mr Turnquest said the unemployment benefits scheme “will feature adjustments” and be vetted to ensure Bahamians who have returned to work are excluded from welfare support.

Peter Goudie, The Bahamas Chamber of Commerce and Employers Confederation’s director responsible for labour matters, yesterday hailed the latest unemployment benefits extension as

SEE PAGE 4

PAGE 4, Thursday, October 1, 2020

THE TRIBUNE

Superplex warns of ‘serious decisions’ on staff, finances Tourism restart ‘more important’ than jobless benefits extension FROM PAGE ONE

FROM PAGE THREE “great news”, adding that it would have been disastrous if companies had to make staff redundant.

He told Tribune Business: “I can’t say anything other than it’s great. To me, we’re just facing disaster if we have to make everybody redundant. I have to think that at the moment this ties into what minister D’Aguilar said about reopening the tourism economy. I’m glad they did it and I can’t say anything other than this I great.

“With everything that has happened thus far, this

is just positive, but if this thing extends it will come down to whether or not the government can support it.

We are in trouble, just like everybody else. I noticed in Canada they extended free programmes for people that don’t qualify for unemployment any more, so this is just great news.”

The government’s latest unemployment benefit extension will likely run through to either the beginning or end of November, which will coincide with the furlough period’s present expiry and when major hotels will have taken decisions on when to re-open.

Goodman’s Bay project eyeing 100 extra hires FROM PAGE THREE good brand out there, and we are still a sanctuary jurisdiction for people looking for residency and the tax advantages of being in The Bahamas. So that is something that has continued to drive interest; in fact, even more interest now that with the spectre of higher

taxes in a lot of OECD countries.

“Prospective wealth taxes and things like that are spooking a lot of wealthy people, and they are looking at alternative jurisdictions. It is not all doom and gloom; we just need to get people back here and the market will rebound in a very significant way once we are able to re-open.”

to be allowed to open. We want to take advantage of some of the films coming out in November and December.

“I hope that we can get open by the third week in October or first week in November. That’s my hope.

After that point we will have to make some serious decisions as a business.

We’ll definitely have to be talking to our lenders about refinancing and certainly have to look at what to do with our staff.

“We had committed to keeping as much of the staff as possible, but one of the first things a business in trouble has to do is cut labour costs to survive.”

Fusion Superplex placed some 350 staff on furlough, or temporary lay-off, when COVID-19 first hit in midMarch and the government forced it and other businesses to close.

Fusion Superplex, whose construction budget grew from an initial $42m to $50m, was financed by a combination of Bahamasbased equity investors and overseas debt funding but Mr Foulkes has not identified any of them. He yesterday revealed that the patience of the company’s financial backers was starting to wear thin even though the company was another victim of events beyond its control.

“They are already at the

end of the line,” he told Tribune Business. “Their patience has worn thin.

We don’t have a date, are working with them on the extension, and have a force majeure condition.

“They understand that as long as the emergency powers exist and we don’t have a date, that places the contract on hold, but at the end of the day it makes it more difficult for us as a business with this strangulation. The lenders are flexible, but it creates a higher burden for the business to recover from having missed the entire summer and with the film studios shut down.”

Mr Foulkes said Fusion Superplex would “if the government has any assistance programmes” it could exploit “to give the business an easier time to get back on its feet”, such as relief on its Bahamas Power & Light (BPL) bill and tax breaks. BPL relief previously ended, although the Ministry of Finance’s tax credit and deferral initiative is continuing as a means of payment support.

“We’re anxious to get back,” the Fusion Superplex chief said yesterday.

“We believe people want to come back to the theatres and we have a safety plan....

It will be a slightly different experience until a vaccine arrives, but we can offer a reasonable entertainment product with safety. We just need the OK. “The reason we want those [October to November] dates is that we need time to get back into business and see how the COVID-19 restrictions

impact employment levels, attendance levels so that once the Hollywood studios come back we can respond and know what the business is capable of under these present circumstances.

“We are actually following up with the competent authority this week. We submitted a request for an update yesterday [Tuesday].

We are waiting for them to respond. We hope to have an answer by tomorrow but, right now, the answer is still unknown and we don’t have a date. We don’t know if it will be October or if the emergency period has to end.”

Besides reducing cinema capacity to 30 percent maximum, a level that will undoubtedly hit Fusion Superplex’s revenues and profits, Mr Foulkes said it had submitted a plan to the government detailing its sanitisation protocols and strategies for enforcing social distancing in its other facilities such as the lobby, arcade and restaurants.

Touting the complex’s air filtration system and outdoor dining as further benefits amid COVID-19, he added: “We would like to get back into business as quickly as possible, but we are in the negative because just keeping on the lights is a cost.

“The longer we stay closed, the greater the debt.

That’s the case of all businesses in our circumstance.

I think our industry has been hit the hardest. We are the least needed to open, we understand that, but life has to go on and the economy needs to re-open.”

Mr Foulkes declined to

detail Fusion Superplex’s COVID-19 losses, although he told this newspaper in July that revenue losses then were “north of $6m”.

Fusion Superplex, together with the likes of Mario’s Bowling and Entertainment Centre, Galleria Cinemas and bars and nightclubs, are among the final categories of businesses yet to re-open following the COVID-19 lockdown due to government fears that their confined spaces - together with the large crowds they attract - will lead to the virus re-emerging and spreading.

Some Fusion employees have previously voiced doubts as to whether the cinema and entertainment complex would re-open given the extent of the revenue and bottom-line losses produced by the company’s continuing COVID-19 lockdown.

This newspaper also reported that Fusion Superplex was unable to meet the last $500,000 monthly staff payroll before the lockdown, which Mr Foulkes blamed on the inability/ refusal of the company’s debtors to pay the $1.2m in accounts receivables that they owed.

And it then emerged that the entertainment complex had not been paying National Insurance Board (NIB) contributions on behalf of staff, which had left furloughed workers unable to receive unemployment benefits when they applied. Mr Foulkes conceded then that the company was on a payment plan with NIB.

Work space provider targets May opening

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A BAHAMIAN shared workspace provider yesterday said it is aiming to exploit the law requiring all businesses to have a physical presence through an office complex that will open by May 2021.

Leon Blaileuiess, Access Cowork Suites’ managing director, told Tribune Business: “Right now we have got an advertisement in the newspaper testing the market. We have gotten a

few inquiries but not too many yet.

“We feel that a lot of people might be downsizing, or might be looking for offices that might have a base somewhere. Out-ofthe-country companies may need a presence here and just need a small office or something.”

Access Cowork Suites, which is based at the One West Business Park on Windsor Field Road in western New Providence, near Old Fort Bay, feel confident there is sufficient demand for the shared and private work space it will offer.

“The other companies seem to have some open spaces and they are opening others, so they seem to be doing okay,” Mr Blaileuiess added of rivals. “We are looking to offer 100 square feet to 1,000 square feet spaces. It is all about how we structure those spaces.

“We have a foundation already and we are trying to put up a building, but we are seeking feedback on what people actually want so we don’t have to go back and re-do things again and, by next year May, we plan to be open.”

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Thursday, October 1, 2020, PAGE 5

Tour provider: COVID growth ‘unacceptable’ FROM PAGE ONE “Certainly nobody wants to be stuck on a cruise ship in a situation where their home port changed suddenly, or you have a COVID outbreak on the ship and you are suddenly under quarantine again. It’s a very, very tricky situation right now and we have to see.

“I expect an official statement from the CDC today

or tomorrow because the ‘no-sail’ order was running out yesterday, so in hindsight there should be an official statement as of yesterday or maybe today and then we go from there.”

Mr Rebmann added: “We had 119 cases of COVID19 on Tuesday. I remember three weeks ago the lady from the Ministry of Health had said we are seeing a flattening of the curve, but I would like to hear

explanations from the government on how on God’s earth can you say we are flattening the curve and our numbers are a nightmare?

“That’s exactly what the CDC is seeing, it is exactly what the hotels are seeing, and it is exactly what the cruise line industry is seeing right now. Who the hell wants to come to The Bahamas right now? This is an absolute hot-spot, and it drives me crazy that people in The Bahamas are still denying the COVID, or coming with crazy conspiracy stories.

“It doesn’t matter what you think, reality is what the world thinking about us, and

what is the tourism sector thinking about us? Right now we can dream all day long about a big opening on October 15, but nobody will come with our COVID numbers. Nobody will come,” he continued.

“That’s why the hotels are not opening because they are not buying it from the government. These numbers are a catastrophe, and this is our biggest problem right now, not the hotels and not the CDC. We need to focus on our own stuff here in this country and our numbers are outrageous. This is a nightmare, ten percent plus every three or four days? That is simply unacceptable.”

BOB takes $6.3m hit over govt downgrade FROM PAGE ONE for the 12 months ended June 30, 2020, compared to $4.6m in June 30, 2019,” Mr Brathwaite said in his message to shareholders.

“However, this net operating income has been offset by the provision for impairment losses of $6.3m and credit loss expense of $15.3m, resulting in an overall net loss of $7.4m for the year ended June 30, 2020....

“Net credit loss expense for the quarter ended June 30, 2020, increased by $6.7m compared to the quarter ended June 30, 2019; and a $13.6m increase for the year ended June 30, 2020, versus June 30, 2019, due

to the pandemic. The bank also recorded a $6.3m provision for impairment losses on sovereign and corporate financial asset exposures due to the pandemic.”

The timing of the Moody’s downgrade, which occurred just before its June 30 yearend, was especially hurtful for Bank of The Bahamas.

Mr Brathwaite added: “Comparing the current period ended June 30, 2020, to the prior period ended June 30, 2019, the bank’s total operating income increased by $2m or 18.25 percent for the current quarter and $6m or 14.64 percent for the current fiscal year.”

He added that this was “explained largely by the

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$2.8m and $6.5m increases in net interest income for the current quarter and for the year, respectively. The positive variance in net interest income for the year was due to the increase in interest revenue by $5.3m, primarily from interest on consumer loans and deferred loan fee change in accounting estimate”.

Interest expense fell by $1.3m, but “the impact of the pandemic was immediately felt by the bank on its non-interest income, resulting in an overall decline of $0.8m and $0.5m recorded for the current quarter and year-to-date, respectively”.

Mr Brathwaite continued: “The bank’s operating

Lucaya Marketplace faces ‘nail biting’ wait FROM PAGE ONE provided the volume and numbers, it was stopover arrivals that typically gave the Port Lucaya Marketplace the bulk of its spending, making it critical to address the airport and its postDorian rebuilding before The Bahamas’ borders reopen to tourists.

“My personal suggestion to the government is that they should buy the airport, open it and manage it,” the Port Lucaya Marketplace chief added. “They should also reinvest in the Grand Lucayan and re-open it. The longer that stays closed, that is the slow death of Grand Bahama and the island goes slowly down.

“I think the government should re-open that resort and re-open the airport. I do think that’s key to the island’s survival. My tenants are saying to me that the airport and Grand Lucayan has dropped their revenue by 50 percent even though COVID-19 closed us down.

That’s why I’m hoping the government will say we can’t wait on ITM/Royal Caribbean for ever.”

Emphasising that he was not blaming the government, and acknowledging it has multiple competing priorities as a result of COVID-19 and Dorian, Mr Hunt nevertheless warned: “We’re biting our nails here. How long can local businesses and Bahamian companies survive?”

expenses increased by $1.9m or 25.99 percent for the quarter due to increased bank licence fees imposed by the Central Bank, higher cleaning and sanitation expenses per the existing pandemic protocol, additional insurance and ITrelated costs.

“The bank’s liquidity position remained strong as its cash and cash equivalents stood at $180.7m, a $23.3m or 14.77 percent increase since prior year. The bank’s key capital ratio is in compliance with regulatory requirements, with Tier One of 37.5 percent, well above the Central Bank’s minimum requirement of 9.6 percent.”

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CHIEF FINANCIAL OFFICER A conglomerate is seeking a highly motivated, outcome driven Chief Financial Officer (CFO).

The CFO will be primarily responsible for the planning, implementation, management and operation of all the finance activities of the conglomerate with a view to maximizing resources and profit, including: strategic business and financial planning, budgeting, forecasting, increasing efficiencies and implementation of proper internal controls, preparing financial statements and related reports, providing leadership, direction and management of the accounting team (including appropriate training), developing and sustaining effective relationships with management and stakeholders, and providing valuable analytical advice and strategic support to the organization’s leadership to achieve its short, medium, and long-term objectives. The successful applicant is expected to be innovative, consultative, resilient and personally accountable for the quality of advice and the delivery of results. In addition, he/she is also expected to maintain a high level of professionalism and integrity, display a positive attitude and a team focus, and demonstrate advanced computer literacy related to the position, excellent leadership, management, problem-solving, communication (both orally and written) and relationship skills.

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PAGE 8, Thursday, October 1, 2020

THE TRIBUNE

COVID ‘worst time’ to eye dollarisation FROM PAGE ONE

the government impose a two-year lock-in to prevent foreign investors from being able to sell or redeem these investments.

The lock-in period’s end would likely coincide with the tourism industry’s return to near-normality, he projected, while the government could set a cap or upper limit on how much Bahamian dollar bonds foreign investors are allowed to buy to minimise its - and the reserves’ exposure - to foreign currency debt servicing.

Mr Smith’s stance on full dollarisation was backed

by Rupert Pinder, the Bahamian economist and University of The Bahamas (UoB) lecturer, who argued that “The Bahamas is not a

candidate” for replacing its own currency with that of its northern neighbour.

Arguing that The Bahamas should instead be focused on the post-COVID “fundamentals” of growing its economy and creating jobs, Mr Pinder echoed Mr Smith in suggesting that The Bahamas will “have to rack up some serious US dollars” to effect full conversion of Bahamian dollar bank deposits and notes/coins in circulation without risking a devaluation.

Both men, responding to former attorney general, Alfred Sears, call earlier this week for dollarisation to be “put on the table” as an option for getting The Bahamas’ out of its COVID-19 economic meltdown, said the issues involved are “far more complex than people

give weight to”.

Mr Smith, in particular, said “the amount of liabilities is three times’ what the actual reserves are, meaning The Bahamas simply lacks the US dollars required for a one-to-one conversion of all existing Bahamian dollar deposits and notes/coins in circulation.

Present Central Bank data supports his case, as at end-August there were just $2.128bn worth of external reserves to match up with $7.595bn in Bahamian dollar liabilities. These included demand, saving and fixed deposits.

“A country going down this road needs sufficient reserves to back its own currency. You can’t just convert Bahamian dollars to US dollar assets,” Mr Smith told this newspaper, adding that

the US Federal Reserve had no obligation to provide The Bahamas with the supply of US dollars required.

“If you’re looking for a solution to help us out of this crisis brought on by the pandemic you need more reserves than the outstanding liabilities. Because you’re not currently earning foreign currency, you are running down the reserves for normal debt servicing and imports, so at a time when you would need an additional buffer of reserves to dollarise it’s almost impossible.

“I didn’t see us in our history building up more than a few months of import cover, and you’d need more than a year for this and probably more. I don’t see it when you have more than $9bn in debt and $2bn in reserves, and try and convert the Bahamian dollar debt,” he continued.

“This would be the worst time to do it when you have high unemployment, no foreign currency inflows coming in because of the shrinking of the economy, and continuing outflows.”

Mr Pinder, meanwhile, argued that if dollarisation “was that simple you would have had countries in the region like Jamaica

and Guyana following that path”. He added that countries that typically took this path were racked by hyperinflation that made their currencies worthless in the eyes of their population, with dollarisation seen as a route to achieve some economic stability.

“In my view, I don’t see how this whole discussion of dollarisation helps in terms of changing the fundamentals,” Mr Pinder argued.

“The fundamentals remain the same, and are how to increase our capacity in terms of growth in the economy and how to increase foreign exchange earnings.

“To be hones with you, I think the peg has done us well, and semi-dollarisation of the economy. The focus really needs to be on how we address the fundamentals.

Dollarisation is not something you just run into. You need to be more measured.”

Advocates for dollarisation acknowledge giving up the Bahamian dollar would effectively cede control of Bahamian monetary policy to the US Federal Reserve and its setting of interest rates.

However, they argue that The Bahamas currently enjoys little monetary policy

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flexibility anyway because this is geared solely towards the balance of payments, and preserving the one:one peg with the US dollar via always ensuring the foreign currency reserves are maintained at sufficient levels.

As a result, they suggest dollarisation would effectively remove the hook, or strait-jacket, on which Bahamian monetary policy is hung. However, Mr Pinder countered that The Bahamas still retains other monetary policy options such as credit controls and moral suasion, while adding that dollarisation would also restrict the Ministry of Finance’s fiscal flexibility.

Mr Smith, though, suggested that easing the restrictions on foreigners acquiring already-issued Bahamian dollar bonds from local investors represented a better alternative to solving the country’s need for immediate US dollar inflows to bolster the reserves and currency peg.

“You’ll have inflows of foreign currency to increase the reserves and, at the same time, not increase the debt levels,” he added.

The former finance minister added that the higher interest returns available on Bahamian domestic bonds compared to US Treasuries could prove attractive to investors and more than compensate for any perceived currency risk.

To eliminate “volatility” and foreign investors “dumping” local currency government debt, Mr Smith proposed a lock-in timed to coincide with tourism’s recovery where they would be unable to sell their holdings.

And, depending on the government’s debt servicing “appetite”, the amount of Bahamian dollar bond debt that foreigners could acquire would be capped at a certain level. While these holdings would eventually be redeemed, Mr Smith suggested that this could be minimised by enticing foreign retail investors to switch their portfolio investments for Bahamian real estate.

“I agree that everything should be on the table,” Mr Smith said, “but you need to find things in the short-term, and the biggest issue going forward for the next 12-18 months is how do we attract inflows to support imports.

If we can do that without increasing the debt, better still.”

PUBLIC HOSPITALS AUTHORITY

NOTICE TENDER FOR THE PROVISION OF FURNITURE AND EQUIPMENT FOR THE URGENT AND EMERGENCY CARE PROJECT OF THE PRINCESS MARGARET HOSPITAL TENDERS ARE INVITED FROM QUALIFIED COMPANIES FOR THE PROVISION OF FURNITURE AND EQUIPMENT FOR THE URGENT & EMERGENCY CARE PROJECT OF THE PRINCESS MARGARET HOSPITAL OF THE PUBLIC HOSPITALS AUTHORITY. TENDER DOCUMENTS, WHICH INCLUDE INSTRUCTIONS TO TENDERERS, SPECIFICATIONS AND OTHER RELEVANT INFORMATION, CAN BE COLLECTED FROM THE PHA’s WEBSITE AT www.phabahamas.org.

TO REGISTER FOR PARTICIPATION IN THIS TENDER EXERCISE, TENDERERS ARE REQUESTED TO EMAILaward@phabahamas.org; abcadman@phabahmas.org; & mcartwright@phabahmas.org.

TENDERS ARE TO BE RETURNED TO THE PUBLIC HOSPITALS AUTHORITY AT Tendersubmission@phabahamas.org IN A PASSWORD PROTECTED FILE (TO BE OPENED BY TENDERER AT PUBLIC OPENING) NO LATER THAN 12:00 P.M. on Monday November 2nd, 2020.

All submissions must be accompanied by (i) a current Business License that states your company is Licensed to provide medical equipment; (ii) three (3) references from current or previous clients; (iii) Value Added Tax (V.A.T) Registration Certificate; (iv) An up-to-date (not less than one (1) month old) V.A.T Compliance Certificate; (v) a copy of Insurance Policy Certificate indicating that your company is insured against loss of life, injury or damages; and (vi) a letter from the National Insurance Board (NIB) stating that your company is up to date (not less than one (1) month old) and in good standing in the payment of its NIB contributions on behalf of those persons employed in your company and (vii) a signed copy of the Public Hospitals Authority Disclosure statement.

The Public Hospitals Authority reserves the right to accept or reject any or all Tender(s).

THE TRIBUNE

Thursday, October 1, 2020, PAGE 9

31.4% spring slide for a US economy likely to shrink in 2020 WASHINGTON Associated Press THE US economy plunged at an unprecedented rate this spring and even with a record rebound expected in the just-ended third quarter, the US economy will likely shrink this year, the first time that has happened since the Great Recession.

The gross domestic product, the economy’s total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago, the Commerce Department reported yesterday.

The government’s last look at the second quarter showed a decline that was more than three times larger than the fall of 10% in the first quarter of 1958 when Dwight Eisenhower was president, which had been the largest decline in US history.

Economists believe the

economy will expand at an annual rate of 30% in the current quarter as businesses have re-opened and millions of people have gone back to work.

That would shatter the old record for a quarterly GDP increase, a 16.7% surge in the first quarter of 1950 when Harry Truman was president.

The government will not release its July-September GDP report until Oct 29, just five days before the presidential election.

While President Donald Trump is counting on an economic rebound to convince voters to give him a second term, economists said any such bounce back this year is a longshot.

Economists are forecasting that growth will slow significantly in the final three months of this year to a rate of around 4% and the US could actually topple back into a recession if Congress fails to pass another stimulus measure or if there is a resurgence

of COVID-19. There are upticks in infections occurring right now in some regions of the country, including New York.

“There are a lot of potential pitfalls out there,” said Gus Faucher, chief economist at PNC Financial Services. “We are still dealing with a number of significant reductions because of the pandemic.”

In 2020, economists expect GDP to fall by around 4%, which would mark the first annual decline in GDP since a drop of 2.5% in 2009 during the recession triggered by the 2008 financial crisis.

“With economic momentum cooling, fiscal stimulus expiring, flu season approaching and election uncertainty rising, the main question is how strong the labor market will be going into the fourth quarter,” said Gregory Daco, chief US economist at Oxford Economics.

“With the prospect of additinal fiscal aid

dwindling, consumers, businesses and local governments will have to fend for themselves in the coming months,” Daco said.

The Trump administration is forecasting solid growth in coming quarters that will restore all of the output lost to the pandemic. Yet most economists believe it could take some time for all the lost output to be restored and they don’t rule out a

return to shrinking GDP if no further government support is forthcoming.

So far this year, the economy fell at a 5% rate in the first quarter, signaling an end to a nearly 11-year-long economic expansion, the longest in US history. That drop was followed by the second quarter decline of 31.4%, which was initially estimated two months ago as a drop of 32.9%, and then

revised to a decline of 31.7% last month.

The slight upward revision in this report reflected less of a plunge in consumer spending than had been estimated. It was still a record fall at a rate of 33.2%, but last month projections were for a decline of 34.1%. This improvement was offset somewhat by downward revisions to exports and to business investment.

UK economy slump not as bad as feared but still a record LONDON Associated Press THE British economy did not contract as much as originally thought during the second quarter of the year when coronavirus lockdown measures were at their most intense — though the slump remained the worst on record.

The Office for National Statistics said yesterday that the British economy contracted by 19.8% in the April to June quarter from the previous three-month period, slightly less than its previous estimate of 20.4%.

However, it said the British economy contracted by more than previously thought during the first quarter, when the virus started to affect business activity before the full restrictions on businesses were introduced on March 23. It now estimates that the economy shrank by 2.5% in the first quarter, against 2.2% previously.

“It is clear that the UK is in the largest recession on record,” the statistics agency said. “The latest estimates show that the UK economy is now 21.8% smaller than it was at the end of 2019, highlighting the unprecedented size of this contraction.”

That contraction is greater than those recorded by the other Group of Seven major advanced economies and more or less double the contractions seen in the United States

and Germany, though statistical methods can vary between countries.

Since May, when lockdown measures started to be eased, the British economy has managed to eke out three months of growth, which has helped it recoup around half of the output lost.

Andy Haldane, the Bank of England’s chief economist, said the economy has recovered more strongly than expected and estimates that it will only be around three to four percent smaller than it’s pre-COVID level by the end of the third quarter, largely thanks to consumer spending.

“In other words, the economy has already recovered just under 90% of its earlier losses,” he said in a speech.

“Against a backdrop of more than 40,000 COVIDrelated deaths, an extra 1 million people unemployed and perhaps a quarter of the workforce having faced a cut in their incomes, the speed and scale of this recovery in consumption is, I think, fairly remarkable,” he added.

With the virus spreading in the community once again and some lockdown measures re-imposed, there are worries that the recovery may start to stall this winter.

Further risks come from the lack of progress in postBrexit trade discussions

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, DARLINE JEAN CHARLES of Central District P.O.Box N7060, Nassau, The Bahamas, Parent of JAQUAN JAMARI JEAN-BAPTISTE A minor intend to change my child’s name to JAQUAN JA’MARI JOLUMAU If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

LEGAL NOTICE

NOTICE PURSUANT TO SECTION 218(1)(e) COMPANIES ACT, 1992 EQUITY BAHAMAS LIMITED (the “Company”) (IN VOLUNTARY LIQUIDATION) NOTICE IS HEREBY GIVEN that on September 9, 2020 the Company was placed into voluntary liquidation.

The Liquidator is Kim D. Thompson of Equity Trust House, Caves Village, P.O. Box N-10697, West Bay Street, Nassau, Bahamas and can be contacted via kthompson@ equitybahamas.com .

with the European Union.

Though the UK left the bloc on Jan 31, it is benefiting from tariff-free trade until the end of this year.

The discussions are about agreeing on the outlines of the trading relationship from the start of 2021.

“We expect the UK to avoid a national lockdown and exit the single market in an orderly or at least semi-orderly fashion that involves the UK and the EU agreeing to some modest stopgap measures to prevent serious short-term disruption or with a full or partial deal,” said Kallum Pickering, senior economist at Berenberg Bank.

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 30 SEPTEMBER 2020

BISX ALL SHARE INDEX:

CLOSE

CHANGE

2093.55

2.22

%CHANGE

YTD

YTD%

0.11 -138.05

-6.19

(242) 323-2330 (242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 4.08 22.65 2.00 1.79 2.46 6.00 6.75 4.80 8.59 4.50 6.16 12.77 3.64 5.50 10.88 8.44 16.99 4.25 9.40 15.21

52WK LOW 3.13 20.91 0.67 1.65 1.67 5.40 5.39 2.70 5.05 3.62 5.60 11.05 2.71 3.19 9.60 7.50 13.04 3.20 8.00 13.90

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 0.90

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

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

Bahamas First Holdings Preference 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

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

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

52WK LOW 100.00 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 102.00

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

52WK HI 2.35 4.43 2.12 198.39 168.29 1.69 1.85 1.77 1.24 8.34 10.26 7.08 12.15 12.71 10.81 10.00 8.98 11.79

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.64 1.79 1.73 1.06 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) + Bahamas First Holdings Limited

SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

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: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-7Y

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

LAST CLOSE 3.90 17.43 1.62 1.65 1.67 6.00 6.75 2.98 5.10 3.76 6.00 11.26 2.12 5.50 10.07 8.44 14.30 3.96 8.97 15.20

CLOSE 3.95 17.43 1.62 1.79 1.67 6.00 6.75 2.98 5.10 3.76 6.00 11.26 2.08 5.50 10.05 8.44 14.30 3.96 8.97 15.20

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 0.95

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 0.95

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 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

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

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 Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno 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

CHANGE 0.05 0.00 0.00 0.14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.04) 0.00 (0.02) 0.00 0.00 0.00 0.00 0.00

VOLUME

15,000

6,000

6,000

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EPS$ 0.239 0.932 0.000 0.000 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

NAV 2.35 4.43 2.12 196.40 163.60 1.68 1.81 1.76 1.07 8.30 9.90 7.08 11.27 12.71 10.23 N/A 8.93 11.27

DIV$ 0.170 1.260 0.020 0.000 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 16.5 18.7 N/M N/M N/M N/M 18.3 -6.8 36.4 20.4 13.4 15.6 20.4 11.8 15.6 11.6 17.5 19.5 9.6 24.1

YIELD 4.30% 7.23% 1.23% 0.00% 0.00% 0.00% 3.85% 0.00% 0.00% 3.19% 3.67% 6.39% 20.87% 1.09% 3.26% 2.84% 3.78% 3.03% 2.23% 4.01%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

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

INTEREST Prime + 1.75% 6.25%

19-Oct-2022 30-Sep-2025

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.50% 6.25% 3.50% 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-2022 26-Jun-2045 15-Oct-2018 15-Oct-2022

YTD% 12 MTH% 2.95% 4.23% 1.39% 3.17% 1.60% 2.52% 0.65% 2.50% -1.88% 3.33% 1.10% 2.34% -2.43% 1.49% 0.34% 2.43% -11.07% -9.92% -0.45% 8.36% -3.20% 11.46% 2.10% 5.15% -6.17% 3.54% 2.92% 5.55% -4.66% -3.81% N/A N/A -4.20% 0.20% -8.60% -2.90%

MATURITY

NAV Date

31-Aug-2020 31-Aug-2020 28-Aug-2020 30-Jun-2020 30-Jun-2020 31-Jul-2020 31-Jul-2020 31-Jul-2020 31-Jul-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 31-May-2020 30-Jun-2020 30-Jun-2020 30-Jun-2020

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

Dated: September 30, 2020 Signed: Kim D. Thompson (Liquidator)

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

PAGE 12, Thursday, October 1, 2020

THE TRIBUNE

WALL STREET RALLIES TO CLOSE OUT STRONG, BUT WILD QUARTER NEW YORK Associated Press US stocks rallied yesterday, but only after zooming up, down and back up again in a fitting end to what was a wild month and quarter for Wall Street.

Prospects for additional support from Congress for the economy helped drive the day’s trading, as they have for weeks. The S&P 500 shot to a gain of as much as 1.7% after Treasury Secretary Steven Mnuchin told CNBC that he would talk with House Speaker Nancy Pelosi

about a potential deal in the afternoon, “and I hope we can get something done”.

But the gains nearly vanished as pessimism rose about Washington’s ability to get past its partisanship and send economic aid that investors say is crucial. The S&P 500 hit its low for the day just after Pelosi said she and Mnuchin “found areas where we are seeking further clarification”, though she said talks will continue.

By the end of trading, momentum had returned, and the S&P 500 rose 27.53 points, or 0.8%, to 3,363.00.

The Dow Jones Industrial Average gained 329.04, or

1.2%, to 27,781.70, and the Nasdaq composite added 82.26, or 0.7%, to 11,167.51.

It was the last day of a strong quarter for the market, where the S&P 500 rallied 8.5% to follow up on its 20% surge in the spring. Continued support from the Federal Reserve helped drive the gains, as the central bank leaned further into the whateverit-takes approach taken to support markets and the economy. After already cutting interest rates to nearly zero, the Fed said during the quarter that it may keep interest rates low even after inflation runs above

its target level.

But momentum slowed sharply at the end of the quarter, and the S&P 500 lost 3.9% in September for its first monthly loss since the market was selling off in March. A long list of worries dogged Wall Street, headlined by concerns that the Big Tech stocks dominating the market simply got too expensive following their tremendous run to records.

Other worries include rising tensions between the United States and China, as well as the uncertainties swirling around the upcoming US elections.

Trading has also been notably erratic recently, with momentum veering sharply in several different directions during a single day.

Yesterday, the S&P 500 careened between a gain of 0.1% and 1.7% for a total spread of 1.6 percentage points. That was typical for the month, marking the median for September.

It’s also twice as wide as the median over the last ten years, 0.8 percentage points.

The tumult has come as the economy’s strong rebound earlier this year following the easing-up of lockdowns has slowed.

The number of layoffs has remained stubbornly high, for example, and The Walt Disney Co said late on Tuesday that it plans to lay off 28,000 workers because of government restrictions due to the pandemic that are hurting its theme parks.

Other areas of the economy have also seen growth slow since the expiration of extra unemployment benefits and other economic aid that Congress approved earlier. .

“We all knew that the small businessman or restaurant owner was getting hurt, but this takes it to a different level of just how serious it is,” said JJ Kinahan, chief strategist with TD Ameritrade. “It maybe changes the narrative a bit.”

A report from payroll processor ADP yesterday gave some encouragement, though. It said hiring by private employers accelerated this month, with 749,000 jobs added versus economists’ expectations for 605,000. Other economic reports yesterday also came in stronger than expected, including one on business activity in the Chicago area.

That raises hopes for the federal government’s more comprehensive jobs report, which arrives tomorrow.

For that, economists had been expecting to see hiring slowed to 850,000 from 1.4 million in August.

This month’s jobs report will take on even more importance than usual because it will be the final one released before Election Day in November.

Tuesday night’s debate between President Donald Trump and the Democratic nominee, Joe Biden, was the first of this election season, and it amplified some of the market’s concerns. Trump said it may take months to learn the election’s results, and such a long period of uncertainty could make an already shaky market even more volatile.

But several analysts said they didn’t see the debate having a big effect on the stock market, whose path depends much more on what happens with corporate profits, interest rates and the coronavirus pandemic than who sits in the White House.

“Last night was pretty much a nothing burger from a market perspective, other than perhaps suggesting more uncertainty in the weeks ahead, which could continue to drive volatility,” said Mike Loewengart, managing director of investment strategy at E-Trade Financial.

Shares of data-mining company Palantir jumped 31% to $9.50 on their first day of trading. The company was born 17 years ago with the help of CIA seed money. Palantir isn’t selling new shares to raise money.

Instead, it’s listing existing shares for public trading.

European markets closed lower, and Asian markets ended mixed.

The yield on the tenyear Treasury rose to 0.68% from 0.66% late on Tuesday.