THE Bahamas must “make the right moves” and seek new supply sources to counter the “doubleedged sword” of higher medicine prices and reduced availability stemming from threatened US tariffs.
Dr Marvin Smith, the Bahamas Pharmaceutical Association’s (BPA) president, told Tribune Business that Donald Trump’s proposed 100 percent tariffs on all branded and patented drugs imported into the US will “not be that big a deal” for this nation provided it prepares ahead of their impact by sourcing more quality medications from outside the US.
The US president has paused the planned October 1 implementation of border taxes that would have doubled the cost of imported pharmaceutical drugs as his administration tries to negotiate lower prices with manufacturers, and drive them to establish production facilities in North America, but Dr Smith said The Bahamas must realise “our neighbour to the north is not as neighbourly as we think”.
While a considerable amount of uncertainty, as always, surrounds Mr Trump’s tariff policies, and thus
the consequences for medication costs and availability in The Bahamas remain unclear, the Association president told this newspaper that Bahamians should also consult their doctor and/or pharmacist about switching from branded to generic drugs of the same quality to “save money”.
And, to assist with sourcing medicines from outside the US, he argued that The Bahamas - while monitoring
drugs and their effects when they arrive in-country - should speed up the regulatory process by relying on World Health Organisation (WHO) and home country approvals for the pharmaceutical producers supplying this nation.
Medicines transiting through the US are also likely to be caught by Mr Trump’s tariffs, if and when they take effect, and Dr Smith noted that The Bahamas typically sources products such as IV bags and solutions from its northern neighbour. “They are not manufactured a lot in the US; the base manufacturing is done elsewhere, so you may see a cost increase in those,” he warned.
BTC unions ‘standby’ on ‘credit card scam’ firings
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas Telecommunications Company’s (BTC) two trade unions have placed members “on stand-by” over the firings of five staff - three of whom they allege were unjustly blamed for a cell phone purchase scam.
Both Sherry Benjamin, the Bahamas Communications and Public Officers Union (BCPOU) president, and Kenny Knowles, the Bahamas Communications and Public Managers Union’s (BCPMU) chief, told Tribune Business the trio had been made scapegoats for what they asserted were failings in BTC’s own internal controls.
These deficiencies, they alleged, had permitted some unscrupulous contract workers to perpetrate a scam where stolen and false credit card numbers were used to buy cell phones at a particular BTC retail store which they did not identify. Those terminated were said
to have been the store manager, a BCPMU member, plus a cashier and “junior” employee in BTC’s finance department.
The union presidents said the trio were accused of being “derelict in their duties” for failing to detect the fraud, but Ms Benjamin said the finance department employee - one of her members - had spotted the suspicious activity and sought to alert superiors yet BTC failed to take prompt action against the real culprits.
BAHAMIAN commer-
cial banks will be taking “a keen interest” in whether “political and public pressure” forces a change in the balance size and activity limits for the proposed ‘basic bank account’.
Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business that the Central Bank and Clearing Banks Association (CBA) are largely “in agreement” that activity involving such accounts be capped at $33,800 worth of transactions per annum - a
Legal reform to boost depositor protections
By NEIL HARTNELL Tribune Business Editor
nhartnell@tribunemedia.net
THE Central Bank has unveiled a sweeping package of legal reforms designed to “strengthen our oversight” through an enhanced framework to deal with troubled licensees and boost depositor protections.
The banking regulator, launching a consultation on proposed changes to the Banks and Trust Companies Regulation Act, Central Bank of The Bahamas Act, Protection of Depositors Act and Payment Systems Act, along with their accompanying regulations, said the reforms were based on recommendations made by two previous International Monetary Fund (IMF) missions.
Besides introducing a new regulatory framework for dealing with bank liquidations, and troubled “pertinent financial institutions”, the reforms will also switch regulatory oversight for payments services
GOWON BOWE
STEPHEN COAKLEY-WELLS UNIONS
DR MARVIN SMITH DR DUANE SANDS
COCONUT INVESTORS EYE DOWNTOWN RETAIL MOVE
BAHAMIAN investors have spent $150,000 to-date on bringing an international franchise to these shores that is finding new uses for a long-time local staple.
Taran Mackey, president of Coconut Stock Bahamas, told Tribune Business that the franchise is seeking to further elevate the visitor experience through its creative and innovative coconut creations.
“We’re merging something that tourists expect when they come to an island destination with a very modern branding,” said Mr Mackey. “It’s bringing to life the shareable moments that this generation really thrives on. Even when they are on vacation guests are looking for that shareable, ‘Instagramable’ moment that allows us to deliver that.”
Mr Mackey is part of a group of Bahamian investors focused exclusively on building businesses in the tourism sector since 2018.
Their goal has been to build ownership-driven ventures that serve visitors while generating long-term economic value for Bahamians. He explained that the group’s strategy is rooted in a firm belief that Bahamians need to transition from participants in the tourism industry to owners. The tourism sector, which contributes more than 70 percent of the country’s gross domestic product (GDP), remains largely dominated by foreign ownership and foreign direct investment (FDI).
“Our holdings across our group include Coconut Stock Bahamas, Bimini Semi-Submarine, and we also have another attraction that we’re building in Bimini as well,” said Mr Mackey.
“Our investment focus is tourism; solely tourism. We see tourism as a gold mine. Think it’s kind of nuts that more Bahamians aren’t investing in tourism. It’s like being in Saudi Arabia and not being invested in oil. It’s our main industry, and typically, we work at it, but we don’t invest and
own it. We’ve been investing in tourism since 2018 so we’ve been in this for seven years.”
Since launching their first venture seven years ago, the group has expanded its footprint across multiple islands, targeting high-traffic visitor experiences and attractions that cater to a new generation of tourists seeking interactive, visually engaging and culturally relevant offerings.
Mr Mackey said Coconut Stock Bahamas has already established a presence in key tourist hotspots.
“We’re in the hotels, on the beaches, Junkanoo Beach, Rose Island, a couple of the private members clubs in West Nassau,” said Mr Mackey. “We’re also in the Family Islands, we’re in Exuma, mainland and cays, we’re in Eleuthera, Spanish Wells, Harbour Island and mainland, also in Abaco, Bimini and Long Island.” Looking ahead, Mr Mackey said Coconut Stock Bahamas is preparing to make key infrastructure investments aimed at supporting the company’s growth and strengthening
its operational capacity. “In the next couple months, before the year ends, we plan to make an investment in a warehouse, and we’re also about to make an investment in our retail space downtown,”said Mr Mackey. He explained that the warehouse facility will serve as a central hub for storing inventory, streamlining logistics and supporting distribution across the various islands where the company operates. The planned downtown retail space is expected to
OPPOSITION SAYS LATE SPENDING CHANGE 'PARTICULARLY TROUBLING'
By FAY SIMMONS Tribune Business Reporter
jsimmons@tribunemedia.net
THE Opposition's finance spokesman yesterday described the last-minute $37.3m in spending and deficit reductions by the Government as "particularly troubling".
Kwasi Thompson, the east Grand Bahama MP, said in a statement that the development raised fresh concerns over the Davis administration’s commitment to accountability and transparency as he challenged how reported spending was suddenly
lowered just enough to meet the Government's $69.8m deficit target.
“Over and again, this government has produced financial reports with sudden shifts - often in the tens of millions of dollars - without providing the Bahamian people with clear or timely explanations,” said Mr Thompson.
“The most recent example is particularly troubling. In the final fiscal report of the year, we see the Government slashing its reported spending numbers downward by some $30mjust enough to appear close to meeting Budget targets. This conveniently-timed
BPL pledges confidentiality on advanced metering data
By ANNELIA NIXON Tribune Business Reporter
BAHAMAS Power & Light (BPL) has promised Eleuthera customers that data obtained from its smart metering pilot initiative will remain confidential.
Donahue Ferguson, BPL’s director of customer service, told a Town Hall meeting last week: “The information is currently confidential, and the information sent from the meters to us is encrypted. So just like the relationship you have with us now, confidential information
revision raises serious concerns about transparency and accountability. Yet the Bahamian people were offered no proactive explanation.”
Michael Halkitis, minister of economic affairs, addressed the revision at last week’s Office of the Prime Minister press briefing. He said the revision was driven primarily by a $25m reclassification from expenditure to investment. According to Mr Halkitis, the $25m allocation related to The Bahamas becoming a shareholder in the Development Bank of Latin America and the Caribbean (CAF). It was initially
about your consumption and your usage comes to us, and we keep that between us. We're bound to that by policy."
Responding to concerns that anything ‘smart’ is capable of being hacked, Mr Ferguson said the information will be encrypted.
“These are the things we think about every time we open our cell phones,” he added.
“So that's why I say a certain level of technology
recorded as an expense, but following a review by the International Monetary Fund (IMF), the Government was advised to classify the transaction “below the line” as an investment.
Mr Halkitis said this adjustment accounted for the majority of the $37.2m revision, with the remaining amount attributed to smaller, miscellaneous changes. But Mr Thompson remained critical, accusing the Government of managing optics rather than addressing the country's pressing economic realities.
“While the Davis Administration continues to pat itself on the back for
and encryption is used to keep the information as confidential as possible. So, I can't speak to the IT perspective of it, but we do know that we can confirm information will be encrypted and kept confidential between the client and the business.”
Noting that smart metering technology is already in use by Grand Bahama Power Company, as well as Jamaica and throughout the US, Mr Ferguson said Eleuthera has been specifically identified for the programme.
Pedro Marcello, BPL’s Family Island regional manager, said the utility is looking to participation by 165 persons - 45 in Harbour Island, 40 in Governor’s Harbour, 40 in Palmetto Point and 40 in Rock Sound.
“The reason why we chose those persons, those areas, is because we need to have BTC towers that we're sure are at least 110 feet high,” Mr Marcello said.
“That's why we chose those areas. And right now we visited those sites. We recognise they're high enough so we could see.”
With the goal of enhancing accuracy and improving response times, Mr Ferguson said the metering programme would be at no extra cost to consumers.
“GIS, of course, stands for Geographical Information
allegedly meeting fiscal targets and impressing international agencies, the daily reality for Bahamians tells a very different story - one of rising hardship, insecurity and growing frustration,” said Mr Thompson
“Yet this government continues to speak in press conferences and spreadsheets, parading numbers that do not reflect the lived reality of Bahamians. This government continues to confuse fiscal public relations with economic reality.”
Mr Thompson argued that the administration has “turned a blind eye” to the worsening conditions many
Systems,” Mr Ferguson added.
“It begins this month, and our teams will be conducting this exercise throughout Eleuthera and Harbour Island simultaneously. So this is designed to create an accurate digital map of all meters on the island. So just like how it sounds, geographic information system, it is similar to what we usually talk about, Google Maps, GPS, that type of thing.
“So what does this mean for you? Improved accuracy of customer records, faster response times when repairs and maintenance are needed. Better plans for upgrades, such as new substations or network expansions.
"Of course, that's critical here in Eleuthera with all the development, and then a foundation for future initiatives like smart metering or advanced metering infrastructure. So what you can expect to see when this exercise takes place, we will be visiting each and every property in the Eleuthera market," Mr Ferguson said.
“And so you'll see us taking a photo of your meter face. You'll see your BTS, inspector or officer doing these things, recording the exact service location and then you'll be noticing our assigned, meter ID numbers, otherwise known as ERT, for the
CENTRAL BANK ALERT ON DEEPFAKE TECHNOLOGY
THE Central Bank has sounded the alarm about the increasing use of deepfake technology to commit financial frauds against unsuspecting Bahamian victims.
The banking regulator, in a statement, warned that scammers are increasingly creating realistic but falsified videos, audio recordings and images impersonating financial institutions, officials or well-known individuals. These, it added, are being used to deceive Bahamians into putting monies into fraudulent, non-existent
serve as both a flagship store and a brand experience centre, offering visitors the chance to purchase branded coconuts and merchandise, while also learning more about the company’s local roots and creative process.
These upcoming investments, he added, are part of a broader effort to increase brand visibility, and position Coconut Stock Bahamas as a leading name in local tourism products.
Bahamians face, particularly the tens of thousands under-employed or struggling with the rising cost of living.
“The Davis administration conveniently avoids talking about the crisis of 65,000 Bahamians who they have admitted are underemployed, forced to work part-time when they need full-time work,” said Mr Thompson
“Economic recovery means nothing if it doesn’t reach everyone, and this government has done nothing to ensure that it does. The wealth gap is growing. The cost of living is exploding. And this administration has forgotten the people who elected them. This government has failed to address the human crisis behind the numbers.”
first thing. And the main thing we want you guys to understand about this, this is not a disconnection exercise. So no need to get worried when you see two or three guys walking in the back to check out the meter. This is strictly to collect data.”
Mr Ferguson explained that with AMI smart meters, power usage is recorded in real time and allows for accurate billing plus quicker awareness of outages. “One of the things about smart meters is a pre-paid metering option,” he added. “And let me tell you some ways this can help you.
"You'll choose how much electricity you want to purchase in advance, more control over your monthly expenses, and it's particularly useful for those who may not need electricity year-round - second homeowners, vacation homes, Airbnbs.
"So if you're not going to be using electricity for an extended period, a smart meter will come in handy. So what we want to do, for those of you who would like to volunteer, who may be interested, contact your local BPL office, Rock Sound, Governor's Harbour Island.”
investment schemes or fake appeals for financial assistance. It added that these scams may appear as legitimate announcements, investment opportunities or urgent appeals, and use manipulated audio or video to mimic the voices and likenesses of trusted figures. They will also direct persons to fraudulent websites or request sensitive information, payments or transfers.
The Central Bank reiterated that it only issues official notices through its website and official
communication channels. It added that it does not solicit funds, investments or personal details via phone calls, social media or unverified online platforms, and urged that any suspicious communications should be reported immediately to the Royal Bahamas Police Force and social media platform(s) where they originated.
The Central Bank added that the only government securities issues that it handles are for Bahamas Registered Stock, the Bahamas Savings Bond, and Treasury Bills. "The Central Bank urges all residents to exercise caution, verify the authenticity of messages or videos before taking action, and remain vigilant against evolving digital fraud tactics," it added.
FURIOUS ELEUTHERA TELLS BPL: ‘NO ONE HERE BELIEVES
By ANNELIA NIXON
Eleuthera
FURIOUS
residents told Bahamas Power & Light (BPL) executives “nobody inside here believes nothing you say” as they promised improved energy reliability for the island by end-2026.
Business owners and residents, frustrated at years of lengthy outages and black-outs, combined with fried electrical equipment, voiced scepticism at a Thursday night meeting called by BPL as the stateowned energy monopoly admitted it had endured “a bad summer, a bad year” on Eleuthera yet again.
Anthony Christie, BPL’s chief operating officer, admitted that “he who feels it, knows it” and conceded that the utility must do better. He said Eleuthera has been BPL’s focus since February, and many persons have been added to its staff to bring relief and more reliable power. This, he added, includes
replacing rental generation and improving BPL-owned generation.
“And trying to accelerate these efforts, we set some hard target dates, a 90-day plan,” Mr Christie said. “Unfortunately, we didn’t hit some of these targets. But again, we know work would continue, and had to continue in order to get everything better.
“So today, Pedro [Marcello, BPL’s Family Island regional manager] mentioned a lot of the work that has been done on the generation side, and work that continues on the T&D (transmission and distribution) side. We know that we have to improve generation in Rock Sound, and in Hatchet Bay, of our own generation plants. Again, we have many units offline that need to be online. We know Harbour Island has the same challenge.
“We do have the support from the rental companies, but again, they also would have fallen down in their level of service, and we would have addressed that with them. Basically, if
you can’t give us what we pay for, then we don’t need you,” Mr Christie added.
“We’ll do what we have to do in order to replace you, and that’s what’s happening now. So, as you see us get our own generation plants back up, we’re going to get rid of these rental units and try and reinforce the quality of service that we have from our own generation plants in parallel to improving what we know we have to improve on the T&D system, on the grid.”
Mr Christie said BPL has taken the future of Eleuthera into consideration and has forecast growing energy demand on the island. He said BPL will be able to meet base load demand and future new developments as they come online.
He added that independent power producers (IPPs), offering renewable energy, should come online in October and November 2026. Mr Christie said Eleuthera residents will see solar panels being installed on the field and other works being undertaken to build
plants and connect to the grids.
“This was a bad summer for us,” Mr Christie said. “Indeed, Eleuthera, we had a bad summer, a bad year. But next year, I can assure you that it’ll be better. And I want to make sure that our team knows that we all agree next year will be better. So we’re going to work toward improving what we’ve done today. We’re going to work toward making sure we’re more reliable.
“How we address these issues, when we address them, we’re going to improve all of this and to ensure that we can be comfortable. I can sleep at night. I don’t have to see the Eleuthera group blowing up about outages here, outages there.
“We’re working toward that. And it’s a heavy lift, but it’s happening. We have the funding for it. We’re planning for it. We’re going to execute it. And so with all parties concerned, BPL as well as the vendors, the IPPs that are coming on board, we’re going to
address this problem in Eleuthera and on many different islands as well.”
Mr Christie said weekly meetings are held to ensure proper planning for Eleuthera. “We are all aware,” Mr Christie said. “No one is blind to what’s happening. I felt it personally, over the weekend. I have family that live in North Eleuthera and I said, ‘Man, this is how y’all live?’ And they say, ‘yeah.’ I said, ‘Wow.’ So it is frustrating. It is indeed frustrating, but we are working to improve this.”
However, an attendee who introduced herself as a business owner, and who rents apartments, was not convinced of Mr Christie or BPL’s promises. “I want you to know that this is not a pleasure,” she said. “I am not pleased to be here tonight, because in my 47 years of living when we had power and light, I’ve never experienced this. This has been the worst that I’ve seen BPL in the last few years. “Mr Marcello, nobody inside here believes nothing
CENTRAL BANK STRENGTHENS OVER ‘FAILED’ CREDIT UNIONS
By NEIL HARTNELL
THE Central Bank is seeking to “strengthen” its supervisory and enforcement powers over The Bahamas’ eight credit unions by developing a “resolution regime” to handle failing institutions.
The banking regulator, unveiling proposed reforms to the Bahamas Co-Operative Credit Unions Act 2015 and the accompanying regulations, said it plans to “place the crisis management framework” for distressed credit unions within both revisions to that law and the Central Bank of The Bahamas Act. It is also seeking to remove the VAT exemption that credit unions enjoy on payments.
“The Central Bank has conducted a review of the
Bahamas Co-Operative Credit Unions Act and regulations seeking to... expand and strengthen the supervisory powers of the Central Bank to carry out its supervisory objectives and to establish a resolution framework for the credit union sector,” the consultation paper asserted.
“It is worth noting that the Central Bank has also received recommendations from the International Monetary Fund (IMF) on the current legislative framework governing credit unions within The Bahamas. The IMF recommended that a resolution regime be established for failing credit unions, which would include a specified set of triggers for entry into resolution and authorisation for the Central Bank to exercise resolution powers in respect of failing credit unions.
STERLING UNIT BOUGHT
BY INDIAN CONGLOMERATE
“The Central Bank proposes to place the crisis management framework for credit unions in the Central Bank of The Bahamas Act 2020 and the Bahamas CoOperative Credit Unions Act through revisions to both pieces of legislation,” the Central Bank added.
“The Bahamas Cooperative Credit Unions (Amendment) Bill 2025 seeks to provide for the appointment of a statutory administrator of a failing credit union and for the compulsory liquidation of credit unions following statutory administration.
“The Bahamas Co-Operative Credit Unions Bill also seeks to strengthen the Bank’s enforcement powers by authorising the Bank to issue directives to credit unions that contravene the Bahamas Co-Operative Credit Unions Act, the regulations or the uniform
branches and a deposit base worth over $44bn, had previously acquired majority 51 percent ownership in Sterling in September 2022. Sterling Bank & Trust’s name will now be changed to ‘IIHL Bank & Trust Ltd’. M/s IIHL (Capital), which is based in Mauritius, had a net worth of $1.26bn at August 31, 2025, and has interests in banking, finance, securities and insurance.
CONSTRUCTION PROJECT MANAGERS
• Responsibilities include: overall project execution, scheduling, materials ordering, and producing weekly site reports.
• Must have at least 10 years of experience and a relevant Bachelor’s Degree.
SITE FOREMEN
• Must have at least 10 years of experience in the construction industry
• Valid references required
Interested persons should email resumes and a cover letter to careers@cgtbahamas.com.
you say,” she added in response to Pedro Marcello, BPL’s Family Island regional manager’s outline of investments and future plans for Eleuthera. “And I’m not going to lie to you - nothing.
“People come out because they want to come out to really hear if you have got something new to say. But we done hear this song and dance over and over and over, and we don’t believe that, you, BPL, nor the Board could do nothing to fix the problem.
“And I can tell you one thing, it ain’t gone be a good thing in Eleuthera if the power don’t get fixed. Because if the power don’t get fixed, the water ain’t fixed, the phone’s off. Anything could happen to anybody’s parent, grandparent in the middle of the night, and there’s no emergency contact because the phones ain’t working, the regular house phones ain’t working, nothing working,” they added.
committee” at each of the eight credit unions, while also converting existing sub-committees to Board sub-committees.
by-laws or which engage in unsafe or unsound practices.”
Other elements in the proposed legislation also seek “to make the treatment of dormant accounts under the Bahamas CoOperative Credit Unions Act consistent with the treatment of dormant bank accounts and facilities under the Banks and Trust Companies Regulation Act 2020 and the Central Bank of the Bahamas Act 2020.
“It is proposed that the period following which an inactive account at a credit union would be considered dormant be extended from five to seven years, and that the same definitions
of ‘dormant account’ and ‘transaction’ as are used in the Banks and Trust Companies Regulation Act be adopted under the Bahamas Co-Operative Credit Unions Act,” the Central Bank added.
“The Bill seeks to introduce new factors to be considered when determining whether an account must be deemed dormant, reporting and record retention requirements for credit unions and the procedure for claiming dormant funds.”
The Central Bank said it is also proposing to “strengthen Board-level operations by establishing a board-appointed audit
“It is proposed that the Central Bank may issue directives which would require a co-operative credit union to cease and desist from any contravention of the Bahamas Co-Operative Credit Unions Act, the regulations or the bye-laws, and to remediate any issues identified, to suspend, alter, reduce or terminate any business activity for a period of time, which has been detrimental to the interest of members, or, presents excessive risk to the credit union, or to take any action that the bank considers necessary,” the Central Bank added.
“You all don’t realise that what’s happening at BPL is a domino effect to the life of people here, and for Mr Christie to be, ‘Oh my, my family said... and I said, this is what you go through?’ Yeah, we go through worse, actually, because you ain’t never spent 14 hours without power, and many of us have.”
She complained about having to replace appliances damaged in her rental homes with BPL not
providing refunds. While Mr Marcello sought to explain the process of BPL’s refund policy, he noted that her experience might have been different.
“I don’t understand why y’all can’t just get a new power plant, get new everything,” she said. “Because guess what, y’all don’t hesitate... Disconnections, they don’t hesitate. If your bill over $300, you get cut off quick, fast and in a hurry.
“So we pay monies every month for a service. We are only asking for you to provide a service, and if
you can’t provide a service, we’re asking you to go to Cabinet and ask them to reverse the laws that are on the books and allow us to just go completely off-thegrid and not be reliant on BPL at all. That would be a great thing for plenty of us.”
Mr Marcello explained that BPL’s main transmission and distribution network is around 110 miles long and supplies 6,691 consumers. The network extends from Bannerman Town located in the south to Genes Bay in the north, with Eleuthera’s overall consumer demand peaking between 11 and 13 mega watts (MW).
The Hatchet Bay power station, acting as the main
‘Trial and error’ likely on verifying qualifiers
PRESSURE - from page B1
the annual minimum wage of $13,200, and the Fidelity Bank (Bahamas) chief said there was widespread industry “recognition” that no Bahamian or person residing in this nation legally should lack access to a banking facility. The ‘basic bank account’ is to be launched no later than the 2026 first half.
However, he told this newspaper that there will likely have to be some “trial and error” involved in determining who qualifies for the ‘basic bank account’ - a facility targeted primarily at low and minimum wage earners, plus the unemployed and those on social assistance and others who presently lack a facility of their own.
Mr Bowe said commercial banks will likely face a choice between accepting the information that ‘basic bank account’ applicants provide to them, or conducting what he described as “light touch” Know Your Customer (KYC) due diligence, with the preference likely to be for the former on condition that anyone found in breach of activity or balance limits will be
switched to a standard savings account product.
The Central Bank, kickstarting public consultation on the long-awaited ‘basic savings account’ product, said it would be exempt from ongoing maintenance fees and not subject to minimum opening or maintaining minimum balances. There will also be no transactions charges related to electronic funds transfers; debits and credits made via the banking system’s Automated Clearing House (ACH) and Real Time Gross Settlement system (RTGS); digital wallets and any other Bahamian dollar payments platform.
The Central Bank added that ‘basic bank account’ holders will be permitted two over-the-counter transactions per months, while there will be no charges for using the automated teller machine (ATM) network at the institution where the account is maintained provided cumulative transactions remain below a monthly $2,817 limit.
“To improve the efficiency and affordability of access to financial services, the Central Bank proposes to introduce a basic bank or payments account
for unbanked and underbanked individuals, tackling cost barriers associated with maintaining transactional accounts,” the Central Bank asserted in its consultation paper.
“For The Bahamas, it is proposed that means-testing for basic accounts would be scaled to limit the sum of all credits and debits across the accounts to 2.5 times the annual minimum wage level currently - equivalent to 2.5 times $13,520 or B$33,800 per annum.”
Mr Bowe, asserting that the ‘basic bank account’ as a concept had its origins in public criticisms and concerns over the level of bank fees, told Tribune Business:
“We’ve had a lot of emotional criticism about bank fees, and there’s still the viewpoint that bank fees are excluding people from the system.
“The overall intent is to ensure everyone has access to a bank account, and when we speak of the level of activity and balances the basic bank account is targeting, the expectation is that most of the persons that are complaining about bank fees will not qualify.
“That’s not to say it’s a bit of a mirage because we
plant and supplying con-
sumers from Genes Bay to Bannerman Town, excluding Rock Sound, has a combined generation capacity of 22 MW - 16 MW that is BPL-owned and six MW of rental. The Rock Sound power station has a combined generation capacity of 15.4 MW - 13.6 MW that is BPL-owned and 1.8 MW of rental supply. With some generators offline, they need to be overhauled.
Mr Marcello said millions of dollars has been invested over the past 18 months to address Eleuthera’s power woes, including staff training. He said some staff have received training in Dallas from AVO Training Institute, and a supervisor had
know many of the individuals targeted only use it for payroll and are limited in the complexity of transactions, so there’s an understanding that we do not want fee to decimate their earnings,” Mr Bowe added.
“For a person on minimum wage, earning around $1,040 per month, the average maintenance fee is $15 per month plus VAT. That’s fairly significant. The basic account is saying there are no fees to maintain such an account for persons with relatively low income.”
Mr Bowe said that, while there was broad support for the ‘basic bank account’ under the current terms and conditions, “what’s going to be observed by the banks with keen interest is the intent to change the existing criteria should there be political and public pressure to allow increased activity” beyond the existing limits.
However, the Fidelity Bank (Bahamas) chief said of the industry’s current position: “The reality is that the banks are in agreement with the Central Bank as it currently stands. There’s recognition that we don’t want any person without a facility, and the reality is - based on the existing criteria - these are accounts that do not contribute significantly to the operating costs of the banks.”
Mr Bowe, though, said both the Bahamian commercial banking industry and credit union sector will likely have to go through a process of “trial and error” when it comes to determining who qualifies for a basic bank account. “There’s going to have to be agreement on how the eligibility assessment is performed,” he added.
“I think there’s going to have to be willingness for trial and error. We’ll qualify you based on the report, but any breach of the flows and activity and we’ll revert you to a standard savings account.” The Fidelity chief also said commercial banks do not want to incur significant KYC costs associated with conducting enhanced
been flown to Chicago for one week of training on new equipment. He said BPL has also invested in more trucks, including large and small bucket trucks, mid-sized vehicles and pressure diggers, along with repairs and renovations to BPL buildings, power stations and compounds. Mr Marcello added that BPL “should be close to what’s called a purchase order status that they must secure before they come in and affect the necessary repairs to those units there by Hatchet Bay”. Pointing to the Aggreko rental units at that location, he noted that one has an issue which leads to generation shortfalls.
due diligence on low-value accounts.
The Central Bank said revisions to the Payments Act 2012 will mandate that banks and credit unions offer the ‘basic bank account’ to customers.
“Such accounts would be available for access no later than the first half of 2026,” it added.
“With financial inclusion in mind, basic accounts would facilitate transactions of a payment nature - deposit, withdrawals and holding of funds - and be interoperable with the domestic payments infrastructure, at a minimum, for electronic funds transfers, digital wallet usage including Sand Dollar and debit cards.
“It would be mandatory for any commercial bank that offer retail servicesthat is, payments services to individuals through savings and current accounts - to provide the facility. The public consultation process will help to determine how binding this requirement should be for credit unions, although the cooperatives would be able to impose eligibility criteria, according to the common bond rules that define their respective membership.”
The Central Bank said all legal residents in The Bahamas will be able to apply to open a ‘basic bank account’. “Further, the process of applying would be based on simplified due diligence, with customers being granted approval or rejection within five business days of submitting a completed application,” it added.
“In cases where applicants are rejected, they should retain the right to appeal through the Office of the Financial Services Ombudsman and be eligible for a restricted tier account.” Banks, though, will “have flexibility” to add additional features for the account.
“Given their intent, the accounts would not attract or earn mandatory interest,” the Central Bank said. “Using the current minimum wage in the public
He said BPL is working to correct the problem through a contracted vendor, BWSC, which will replace radiators for BPLowned generators which “must operate in restricted load settings to avoid overheating”. Three of the four Rock Sound units are receiving repairs to their alternator back-ends at a vendor in Miami. While the back-end for the alternators is being repaired, BPL will perform the mechanical repairs. Mr Marcello said they are looking to accomplish the repairs within four of five months.
sector as the means tested criteria, maintaining access to a basic account would be conditional on being able to maintain the total value of debits and credits through the account at a maximum of $33,800 per annum or $2,817 per month.
“This is 2.5 times the current annualised minimum wage, indexed to adjust with any subsequent variation in the minimum wage. The maximum amount of funds that could be held on basic transactional accounts would be indexed at the annualised minimum wage of $13,520. Once these thresholds are exceeded, within an annual review cycle, the account holder would be required to upgrade to a regular deposit or payments account.”
Existing bank customers will be allowed to convert to a ‘basic bank account’, and the Central Bank said restrictions - rather than a ban - will be imposed in situations where financial crime has occurred, or some other form of misconduct or abuse.
“Outright disqualification of access to basic accounts would undermine the rationale digital financial inclusion and payments system resilience is expected to provide for The Bahamas. Therefore, in cases where risk of potential criminal or fraudulent abuse are suspected or elevated, it is proposed that the functionality of the account would be further constrained to a restricted tier or narrowed range of permitted transactions,” the Central Bank added.
This would include “employer-sourced wages, benefits and social assistance payments; and for outflows, payments for essential goods and services. An inclusive digital infrastructure would be expected to boost the resilience of payments, particularly in the case of potential disruption from natural disasters, and equally empower all to manage costly logistics of cash handling”.
‘Robust business’ for US visitors may revive
DRUGS - from page B1
Suggesting that there are also likely to be “some significant price increases” in US-branded drugs, the Association president added that The Bahamas’ population and market size makes it difficult to purchase medicines in bulk and obtain price discounts and better terms from suppliers.
“It’s very rare for us to buy in bulk to get better prices,” Dr Smith said, adding that for specialist drugs “our population size drops even lower” in the eyes of pharmaceutical producers. “This is one of the things that, from the Association’s standpoint, we had written to the Government about this before Trump started putting tariffs on,” he added.
“Because that price comparison alone was not enough to support National Health Insurance (NHI), we have to look at other sources outside the US to secure products. We had written to the minister about this a couple of months ago. We are strongly encouraging the
ability of countries other than the US to supply our needs. The more sources, the more competition, the lower the prices.”
As for Mr Trump’s proposed tariffs, Dr Smith said: “If they are imposing 100 percent tariffs to get into the US, they are going to pass at least that amount on to consumers. It essentially means more for us.
“But the biggest problem we’re going to have is not prices going up, but an availability shift because people will not buy as much with the higher costs, so manufacturers will only produce enough to serve their domestic market and not worry about us.
“We’re going to have a two-edged sword; higher cost, lower availability with some drugs,” he told Tribune Business. “We have to look at new sources. We have to realise our neighbour to the north is not as neighbourly as we think, and we have to look at other suppliers to support some of these things...
“If we make the right moves, and look for alternative sources, I don’t think
it’s [Trump’s tariffs] going to be that big of a deal. But we have to look at adjusting our regulations and being faster in our approach to bring them in.”
A significant portion of the world’s pharmaceutical supplies originate from Asia, and particularly India, where manufacturing costs are much cheaper than in nations such as the US.
Dr Smith estimated that between 30-40 percent of this nation’s pharmaceutical drug needs are supplied by the US, again urged The Bahamas to break with efforts to source medicines through a sole pan-Caribbean registry system.
While the Pan-American Health Organisation (PAHO) has been advocating for the Caribbean Public Health Agency (CARPHA) to fulfill this role for all regional states, and their collective $310m pharmaceuticals market, the Association president said it is only dealing with US and UK manufacturers which “slows everything down”.
And, while the likes of Jamaica have their own
BTC: Firings justified by ‘thorough investigation’
UNIONS - from page B1
The BCPOU chief added that, in a separate incident, another of her members working at a BTC retail store in the Family Islands was terminated for making a police complaint alleging an “irate” customer threw a cell phone at her. Video footage, which captured the incident, showed thatwhile a phone was thrown - it was not aimed at her.
Mr Knowles, meanwhile, said the last of his two members to be terminated was fired over “hyperbole” in an e-mail they wrote after being unable to obtain an answer on why they had not received an increment.
The middle management union president said senior BTC executives were offended by the contents which were e-mailed to multiple managerial staff. He added that he thought the matter had been resolved when the manager and union representatives met with BTC’s human resources executives, where the e-mail’s meaning and contents were explained, only for termination papers to be served subsequently.
BTC, though, is not backing down and, in a statement, said it was justified in terminating the five staff members “with cause” following what it described as a “thorough investigation”. While declining to provide details on what led to the firings, it voiced confidence “in the integrity of the process” that led to the termination, adding that it had complied with all labour laws and the two industrial agreements.
Stephen Coakley-Wells, director of legal and government affairs, said: “BTC can confirm that, after a thorough investigation, five employees were terminated with cause. The terminated employees comprised members of both the BCPOU and the BCPMU. Both unions were aware of the issue, including the decision to terminate the employees.
“BTC wishes to emphasise that this decision was
made in accordance with our established policies, the terms of our industrial agreements and in alignment with our commitment to fairness and compliance with the labour laws of The Bahamas. Due to privacy considerations and respect for all parties involved, BTC is limited in what it can share regarding the specifics of personnel matters.
“BTC values its positive and collaborative relationship with its union partners, and remains open to communication with the unions on this and any other issue affecting union members. BTC understands that situations like this can be challenging and is confident in the integrity of the process followed.”
The unions, though, are unlikely to let the matter rest there. Ms Benjamin pledged that not only her members, but those of affiliated unions, are also on “stand-by” for potential industrial actions with the employees’ appeals against their dismissals set to be heard on Wednesday and Thursday this week.
Mr Knowles added that his union “will go wherever it takes us”.
Speaking to the store manager’s dismissal, he added that the charges against his member were “completely false” and the responsibility for both failing to detect and crack down on the alleged fraud sooner rested with BTC as a company and not its employees.
“The company put in place a process without supporting policies and procedures that allowed for credit card fraud to take place with the purchase of cell phones,” Mr Knowles told Tribune Business. “A few contract workers were the ones involved with it.
“The fraud was actually allowed to take place because the company allowed for the taking of credit card information over the phone. That was allowed from COVID. They allowed sales persons to facilitate the sale of cell phones by taking credit
pharmaceutical registries, he argued that it sometimes took four to five years to get drugs approved. Such delays and narrow supply bases are not what The Bahamas needs, Dr Smith argued, adding that the Association has addressed this issue with both the Government and KPMG accounting firm, the consultants for the NHI scheme.
He revealed the Association had argued that, if a drug manufacturer was approved by the WHO and registered in its home country, there was no need for The Bahamas to have its own registry but simply monitor these medications as they entered the country. In so doing, using global standards would pave the way for The Bahamas to safely source more medicines from Asia, Europe and Latin America.
Dr Smith also urged Bahamian consumers to further insulate themselves from the impact of potential price hikes and reduced availability by switching from branded to generic medicines that offer the same quality at reduced cost.
“What I would advise the consumer to do is talk to their pharmacist about providing generic options for any drug they may have,” he added. “There’s no real
particular matter, the door was left open to fraud, and they are passing the blame on to the manager who has no capacity or skills to detect that.
card information over the phone without putting in place the proper policies and procedures.
“A few egregious contract workers saw the loophole and took advantage of it, and were using credit cards that were not part of any sale. They were able to get their hands on stolen credit cards.” The lack of internal control mechanisms and safeguards to ensure such credit card purchases were legitimate was the primary reason why the fraud was not detected earlier, Mr Knowles said, not the employees.
The BCPMU president asserted that a commercial bank had reported suspicious activity related to the fraud to BTC, but the latter’s finance department “never passed it on to the sales person at the store”. Both he and Ms Benjamin described BTC’s finance department as “understaffed and crying out for additional resources” to deal with these types of issues.
Mr Knowles added that BTC “no longer has an internal audit department”, and that key components in the carrier “do not have the money to be as effective as they need to be in the business”. He said: “This
“The fraud was detected, passed on to the business and they held it for a year before it was passed to the store manager... The company needs to take responsibility for the lack of policies and procedures put in place, and the open door they left for fraud to take place for so long. There were no controls put in place by the company and that led to fraudulent activity.”
Ms Benjamin, speaking to the fate of her two members blamed over the same fraud, described one as a “very junior staff member”. She added: “In carrying out her functions, she noticed some fraud was going on in the retail store. She brought it to her manager’s attention, they did an investigation and realised several of the contract workers were doing fraudulent activity.
“What they did is that they turned around and fired the girl who brought it to their attention; they said it had been going on because she was derelict in her duties.... The finance girl was terminated because they said she should have detected it earlier, but that’s not her responsibility. A lot of that pre-dated her being in that space but they held her responsible as a senior
harm in asking about gener-
ics as long as you speak to the pharmacist and say ‘I’ve been on this US-branded drug, I’d like a generic option’. In some cases you may save money.”
Meanwhile Dr Duane Sands, former minister of health, told Tribune Business that The Bahamas could even enjoy “some strategic advantages” if the Trump administration proceeds with its 100 percent tariffs on imported and patented medications. These, he explained, would make some drug prices in this nation significantly lower than in the US, thus helping to drive medical tourism.
“Once we find out what impact this is likely to have, there may be some strategic advantages that may be experienced from the prices of certain goods and services,” Dr Sands said. “There was a fairly robust pharmaceutical business for the provision of high-cost medications in The Bahamas where US patients travelled to The Bahamas, saw a doctor or pharmacist and save tens of thousands of dollars on their medications.”
While this had been ended by the former Biden administration reducing drug prices in the US, Dr Sands said “there’s the possibility that advantage may now present itself again” for
member of staff when she was not.
“The Finance Department is responsible for sharing information with the store so they could pick it up, and because finance was under-staffed no one was looking at those things but they blamed the junior member of staff and said she should be looking at it. It’s not her responsibility. She brought it to their attention when it was discovered that something untoward was going on,”
Ms Benjamin added.
“The other line staff they terminated there, she was a cashier, and they felt some of the fraudulent activity done by the contract workers she should have picked up on.” Ms Benjamin then detailed the separate circumstances involved in the firing of the other BCPOU member who was employed at one of BTC’s Family Island retail stores.
“One of them was terminated because the customer came into purchase a phone, and the phone did not come with a charging block,” Ms Benjamin said.
“The customer thought someone had tampered with the box and taken the charging block. The customer service representative explained that new phones did not come with a charging block but he did not want to hear that.
“It was an elderly customer. They came to the office, took the phone and threw the phone into the
products such as immuno therapy agents which could cost between $50,000 to $200,000 per year but were “drastically less expensive in The Bahamas”.
“Patients could fly into The Bahamas, see a physician, have a legitimate prescription written, purchase their medications and continue with their vacation,” he added. “That medicine was less than you could access the same prescription for in the US.
“There was a similar advantage in Canada for many years. That advantage dissipated in the last 12 months as there was a dedicated move to make prescription drugs in the US less expensive. Now, potentially, that has been reversed because many of those prescription drugs are not manufactured in the US.
“While we wait and see what impact this will have, there is the possibility there are some entrepreneurial opportunities,” Dr Sands said. “I think we all have to pay attention to the expected and unexpected consequences of rapidly changing policy. Some of these changes happen without any warning whatsoever, and change often as quickly as they are implemented.”
office area, the cage where she was working. She made a complaint to the police because she was in fear because of how aggressive he was and how he threw the phone.
“In her statement she said he threw the phone at her, but when you look at the video footage he threw it in there but not directly at her. At that moment, when she was going through a stressful situation, she was working in a building with no air conditioning, he was irate, she had several other irate customers, and in that mind she felt he threw it at her,” Ms Benjamin added.
“She was terminated because she made a police complaint on an island where the customer is known for bad behaviour. She was terminated for that.” Mr Knowles, meanwhile, said the termination of his other member over the e-mail went against BTC’s pledge to foster an open corporate culture where managerial staff can speak their views on issues affecting the business.
Asked what will happen now, Ms Benjamin replied: “Our members are on stand-by. We are asking the Government and leadership of Cable & Wireless Communications (CWC) to get involved and intervene because it is not fair what has been done to these workers. We will not only have our members on stand-by but the affiliates [unions] on stand-by.”
Money service providers to see regulatory regime switch
providers and money transmission businesses to a new Payment Services Act and away from the Banks and Trust Companies Regulation Act.
“The Central Bank remains committed to maintaining a regulatory framework that is both robust and aligned with international standards and best practices,” the regulator said in its consultation paper. “In line with these [IMF] recommendations, the Central Bank proposes to enshrine the resolution framework for both banks and co-operative credit unions in the Central Bank of The Bahamas Act 2020.
“These legislative proposals are designed to assist the Central Bank in operationalising the bank recovery, resolution and amended depositor protection regimes and strengthen the resolution frameworks
for banks and co-operative credit unions.
“The proposed amendments are also intended to strengthen the framework and operational capacity of the Deposit Insurance Corporation (DIC) by ensuring that Bahamian depositors are always protected, irrespective of the financial balance in the Corporation’s fund,” the Central Bank added.
“This will facilitate confidence in financial institutions, the absence of which may lead to preemptive runs from weak but otherwise solvent institutions. To achieve this, the draft legislation would make provision for the Corporation to have access to a dedicated, pre-arranged back-up funding arrangement with the Central Bank that is sufficient to meet liquidity needs.
“These emergency funds would be supported by government guarantees and repaid to the Central Bank.” The
consultation paper reveals that section 15 in the Protection of Depositors Act is to be changed to establish an emergency back-up funding facility financed by funds borrowed from the Central Bank and guaranteed by the Government”.
These provisions will also “expand the powers of the Corporation to include... the power to withdraw monies from the Fund to support a resolution measure undertaken in relation to a member institution”. New proposed sections will also “expand the powers of the Central Bank to make loans to the Deposit Insurance Corporation”.
These sections will also “explain the permitted purposes in which the Deposit Insurance Corporation is allowed to apply the proceeds of that loan. Any use of this emergency funding facility should be repaid from asset recoveries or levies on members”.
The legal amendments will also enable the Central
Apple and Google block apps that crowdsource ICE sightings. Some warn
of chilling effects
By WYATTE GRANTHAM-PHILIPS, MATT O'BRIEN and KELVIN CHAN AP Business Writers
APPLE and Google blocked downloads of phone apps that flag sightings of U.S. immigration agents, just hours after the Trump administration demanded that one particularly popular iPhone app be taken down.
U.S. Attorney General Pam Bondi said such tracking puts Immigration and Customs Enforcement officers at risk. But users
and developers of the apps say it's their First Amendment right to capture what ICE is doing in their neighborhoods — and maintain that most users turn to these platforms in an effort to protect their own safety as President Donald Trump steps up aggressive immigration enforcement across the country.
ICEBlock, the most widely used of the ICEtracking apps in Apple's app store, is among the apps that have been taken down. Bondi said her office reached out to Apple on Thursday "demanding that
they remove ICEBlock" and claiming that it "is designed to put ICE agents at risk just for doing their jobs."
Apple soon complied, sending an email Thursday to the app's creator, Joshua Aaron, that said it would block further downloads of the app because new information "provided to Apple by law enforcement" showed the app broke the app store rules. According to the email, which Aaron shared with The Associated Press, Apple said the app violated the company's policies
Bank to conduct inspec-
tions on behalf of the Deposit Insurance Corporation “to assess.... risks to the financial system”, while the process by which the “Corporation may impose penalties on member institutions if the bank is satisfied that a violation has occurred” is set to be clarified.
As for the Central Bank of The Bahamas Act, new sections to address struggling licensees are proposed to be added. “The amendments seek to consolidate, under the Act, the provisions of the Banks and Trust Companies Regulation Act that define the resolution and recovery framework for banks and the liquidation process, with the aim of improving clarity and coherence in the resolution regime,” the Central Bank said.
“Under the Banks and Trust Companies Regulation Act, the statutory administrator is required to prepare a report for the Central Bank on the bank to which the administrator has been appointed to determine appropriate remedial or resolution actions. This may create
delays in the resolution process as the statutory administrator is unable to take immediate action to implement the selected strategy.”
The proposed changes will also empower the Central Bank “to appoint a statutory administrator of a holding company of a bank as well as an affiliated operational entity that performs critical functions or services for the bank. The statutory administrator may apply any resolution measures in the same way, and to the same extent that it could, to a bank under statutory administration”.
And, explaining the rationale for moving money service providers to a different legislative and regulatory regime, the Central Bank consultation paper said: “Money transmission service providers are currently licensed and supervised by the Central Bank pursuant to the Banks and Trust Companies Regulation Act 2020 and the Banks and Trust Companies (Money Transmission Business) Regulations 2008.
“The Central Bank proposes amendments to the Banks and Trust Companies
Act, the Payment Systems Act 2012 and the Payment Instruments Oversight Regulations 2017 to bring money transmission service providers under the broader legislative framework for payment service providers. The Central Bank also intends to repeal the Money Transmission Business regulations.
“Since money transmission service providers already offer payment services and instruments, the draft Bills and regulations would formally place them within the existing framework that governs payment instruments and electronic money,” the Central Bank added.
“This alignment will ensure that the Central Bank can regulate and supervise money transmission service businesses in a manner that is consistent with other payment services providers. The Central Bank also intends to make other amendments to relevant legislation to strengthen its regulation and oversight of payment systems and payment instruments.”
"because its purpose is to provide location information about law enforcement officers that can be used to harm such officers individually or as a group."
In a Friday interview, Aaron decried the
company for bending to what he described as "an authoritarian regime." And immigration rights advocates like Kica Matos, president of the National Immigration Law Center, added that these actions marked "a disturbing example of how tech companies are capitulating to Trump."
"These apps are a lifeline for communities living in uncertainty and fear of when ICE might show up to tear their families apart," Matos said in a statement.
Downloads of apps like ICEBlock have surged since Trump took office for his second term earlier this year. Aaron said he launched the app in April as a way to help immigrant communities protect themselves from surprise raids or potential harassment. It had more than 1 million users, he said.
While not specifying details on the total number of platforms removed, Apple confirmed to the AP on Friday that they removed "similar apps" due to potential safety risks that were raised by law enforcement. Google followed their move, saying that several similar apps violated their policies for Android platforms.
While some advocates don't find all of these apps particularly useful — pointing to potential misinformation and false alarms — they echoed criticism of moves to suppress them.
"What really worries me is the kind of precedent that
this sets" where the government can "basically dictate what kinds of apps people have on their phones," said civil rights attorney Alejandra Caraballo, who works at Harvard University's Cyberlaw Clinic. Caraballo said outside the U.S., government pressure to block apps has been "kind of a hallmark of an authoritarian regime," such as when Chinese pressure in 2019 led Apple to remove an app that enabled Hong Kong protesters to track police. Bondi warned over the summer against apps that allow people to communicate about the location of law enforcement officers and specifically called out ICEBlock's Aaron.
"We are looking at him and he better watch out because that's not a protected speech," Bondi said in a July interview on Fox News.
Those warnings escalated last month after a gunman opened fire on an ICE facility in Dallas. Officials including FBI Director Kash Patel said the gunman had searched for apps that tracked the presence of ICE agents, though they haven't said if he actually used one of the apps or whether any of them played a role in the attack.
Aaron said tying the gunman to the apps made little sense because the app only works if somebody else is reporting ICE activity within a 5-mile radius of another iPhone user.
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act 2000, the abovenamed Company is in dissolution, which commenced on the 2nd day of October, 2025. Te Liquidator is Windermere Corporate Management Limited, 200 Sterling Commons East, Paradise Island, Bahamas.
BUILDINGS are reflected behind the logo at an Apple Store, in downtown Chicago, Oct. 19, 2017.
Photo:Kiichiro Sato/AP
Newsom signs bill giving 800,000 Uber and Lyft drivers in California the right to unionize
By TRÂN NGUYỄN Associated Press
MORE than 800,000 drivers for ride-hailing companies in California will soon be able to join a union and bargain collectively for better wages and benefits under a measure signed Friday by Gov. Gavin Newsom.
Supporters said the new law will open a path for the largest expansion of private sector collective bargaining rights in the state's history. The legislation is a significant compromise in the yearslong battle between labor unions and tech companies.
California is the second state where Uber and Lyft drivers can unionize as independent contractors. Massachusetts voters passed a ballot referendum in November allowing unionization, while drivers in Illinois and Minnesota are pushing for similar rights.
Newsom announced the signing at an unrelated news conference at University of California, Berkeley. The new law will give drivers "dignity and a say about their future," he said.
The new law is part of an agreement made in September between Newsom, state lawmakers and the Service Employees International
Union, along with rideshare companies Uber and Lyft. In exchange, Newsom also signed a measure supported by Uber and Lyft to significantly cut the companies' insurance requirements for accidents caused by underinsured drivers.
Lyft CEO David Risher said in September that the new insurance rates are expected to save the company $200 million and could help reduce fares.
Uber and Lyft fares in California are consistently higher than in other parts of the U.S. because of insurance requirements, the companies say. Uber has said that nearly one-third of every ride fare in the state
goes toward paying for state-mandated insurance.
Labor unions and tech companies have fought for years over drivers' rights. In July of last year, the California Supreme Court ruled that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors not entitled to benefits like overtime pay, paid sick leave and unemployment insurance. A 2019 law mandated that Uber and Lyft provide drivers with benefits, but voters reversed it at the ballot in 2020.
The collective bargaining measure now allows rideshare workers in California
Journalists work in dire conditions to tell Gaza's story, knowing that could make them targets
By BASSEM MROUE and ADAM GELLER Associated Press
MINUTES after journalists gathered outside a Gaza hospital to survey the damage of an Israeli strike, Ibrahim Qannan pointed his camera up at the battered building as the others climbed its external stairs. Then Qannan watched in horror — while broadcasting live — as a second strike killed the friends and colleagues he knew so well.
"We live side by side with death," Qannan, a correspondent for the Cairo-based Al-Ghad TV said in an interview.
"I still cannot believe that five of our colleagues were struck in front of me on camera and I try to hold up and look strong to carry the message. May no one feel such feelings. They are painful feelings."
The deaths of the five journalists in the Aug. 25 strikes on Nasser Hospital
add to a toll of nearly 200 news workers killed by Israeli forces while working to bring Gaza's story to the world. Those killed in the attack, which left a total of 22 people dead, included Mariam Dagga, 33, a visual journalist who freelanced for The Associated Press and other outlets. Like the vast majority of Gaza's population, most of its journalists have seen their homes destroyed or damaged during the war and have been repeatedly displaced after evacuation orders by Israel's military. Many have mourned the deaths of family members. But journalists and advocates say the trials go well beyond. Every workday, they say, is shadowed by an awareness that covering the news in Gaza makes them singularly visible in the conflict, putting them at extraordinary risk.
For journalists in Gaza, "it's about dying or living, escaping violence or not.
It's something we cannot compare (to other wartime journalism) at any level," said Mohamed Salama, a former reporter in Egypt who is now an academic, researching the life of news workers in the Strip. Israel calls strikes 'a tragic mishap' but also levels accusations
After the August strikes, Israeli Prime Minister Benjamin Netanyahu insisted that the military was not deliberately targeting journalists and called the killings a "tragic mishap."
After a preliminary review, the military said the attack had targeted what it believed to be a Hamas surveillance camera and that six of the people killed were militants, but offered no evidence.
Late last month, the AP and Reuters — which lost a cameraman and a freelancer in the attack on the hospital — demanded that Israel provide a full account of what happened
and "take every step to protect those who continue to cover this conflict." The news organizations issued their statement on the onemonth anniversary of the strikes.
Israeli officials have previously accused some journalists in Gaza of being current or former militants. They include Anas al-Sharif, a well-known correspondent for Al Jazeera who was killed in an early August strike on a media tent outside another Gaza hospital. Four other journalists were also killed in the attack.
The Israeli military, citing documents it purportedly found in Gaza, as well as other intelligence, had long claimed that al-Sharif was a member of Hamas. He was killed after what press advocates said was an Israeli "smear campaign" stepped up when al-Sharif cried on air over starvation in the territory.
Rideshare Drivers United, a Los Angeles-based advocacy group of 20,000 drivers, said the collective bargaining law isn't strong enough to give workers a fair contract. The group wanted to require the companies to report its data on pay to the state.
New York City drivers' pay increased after the city started requiring the companies to report how much an average driver earns, the group said.
to join a union while still being classified as independent contractors and requires gig companies to bargain in good faith. The new law doesn't apply to drivers for delivery apps like DoorDash. The insurance measure will reduce the coverage requirement for accidents caused by uninsured or underinsured drivers from $1 million to $60,000 per individual and $300,000 per accident. The two measures "together represent a compromise that lowers costs for riders while creating stronger voices for drivers —demonstrating how industry, labor, and lawmakers can work together to deliver real solutions," Ramona Prieto, head of public policy for California at Uber, said in a statement.
There is a long, sometimes tragic history of journalists risking personal safety to cover conflicts. But the risks, trials and toll of doing so have never been higher than they are in Gaza right now, experts say. Since the war was ignited by the Hamas attack on Israel nearly two years ago, 195 Palestinian media workers have been killed by Israeli forces in Gaza, according to the Committee to Protect Journalists.
The toll recently prompted Brown University's Costs of War project to label Gaza a "news graveyard." Journalist deaths in Gaza have now surpassed the combined number killed during the U.S. Civil War, World Wars I and II, the Vietnam and Korean wars, the war in Yugoslavia that ended in 2001 and the Afghanistan War, the project said in a report issued earlier this year.
FREELANCE journalist Mariam Dagga, 33, who had been working with the Associated Press and other outlets during the Gaza war, poses for a portrait in Khan Younis, southern Gaza Strip, on June 14, 2024.
Photo:Jehad Alshrafi/AP
Trump plans aid package for US soybean farmers while seeking trade deal with China
By DIDI TANG and JOSH FUNK Associated Press
PRESIDENT Donald Trump is planning a significant aid package to U.S. soybean farmers to help them survive China's boycott of American beans in response to his trade war even as the president says he is still seeking a soybean deal with Beijing.
But farmers are worried that time is quickly running out to reach a deal in time to sell any of this year's crop to their biggest customer.
Treasury Secretary Scott Bessent on Thursday said on CNBC that the public could expect news of "substantial support for our farmers, especially the soybean farmers" as soon as Tuesday.
Details of the aid package are unknown, but it would come as the world's two largest economies have been unable to reach a trade deal and China has halted purchases of U.S. beans. China, the biggest foreign buyer of American soybeans for many years, last bought American beans in May and has not bought any for this harvest season, which began in September.
"The Soybean Farmers of our Country are being hurt because China is, for 'negotiating' reasons only, not buying," Trump wrote in a Truth Social post on Wednesday. "We've made so much money on Tariffs, that we are going to take a small portion of that money, and help our Farmers."
"I'll be meeting with President Xi, of China, in four weeks, and Soybeans will be a major topic of discussion," Trump wrote.
The soybeans that China imports largely for oil extraction and animal feed are an important crop for U.S. agriculture because they are the top U.S. food export, accounting for about 14% of all farm goods sent overseas and China has been buying 25% of all American soybeans in recent years.
U.S. farmers grew $60.7 billion worth of soybeans, or nearly 4.3 billion bushels, in the 2022-2023 marketing year, according to the American Soybean Association. Just over half were exported. Illinois is the top soybean growing state, but Iowa, Nebraska and Minnesota are also large producers.
Trump and Chinese President Xi Jinping are expected to meet on the sidelines of the annual summit of the Asia Pacific Economic Cooperation grouping, to be held at the
end of October in South Korea.
In Trump's first trade war with China, he gave American farmers more than $22 billion in aid payments in 2019 and nearly $46 billion in 2020, though the latter also included aid related to the COVID pandemic.
Time is running out
Caleb Ragland, a Kentucky farmer who serves as president of the American Soybean Association, welcomed Trump acknowledging the difficulties faced by farmers. He said actions are needed to prevent many farmers from going out of business.
Before the trade war, farmers were already pinched by high costs and low crop prices, he said. Then, their biggest customer vanished.
"It's just unfortunate that we're being used as a bargaining chip in this trade
war that's not of our own doing," Ragland said.
He said time is running low for the two governments to strike a deal, because China has already ordered soybeans from countries such as Brazil and Argentina for deliveries through December and, if there's no soybean deal soon, China could skip the U.S. entirely.
"If they get another couple months, they're into new crop soybeans in Brazil and Argentina. And they're going to bypass us altogether if we're not careful," Ragland said.
Deal is still likely
China has slapped 20% tariffs on U.S. soybeans since Trump announced his tariffs on the world in the spring, making U.S. beans uncompetitive in price.
The retaliatory tariffs are in response to Trump's new import taxes on Chinese goods over allegations that
GEORGIA'S POLICE USE WATER CANNONS TO PUSH BACK PROTESTERS TRYING TO STORM PRESIDENTIAL PALACE
TBILISI, Georgia
Associated Press
POLICE in Georgia used water cannons and pepper spray on Saturday to push back protesters who tried to storm the presidential palace, as the South Caucasus country held a municipal election boycotted by the main opposition blocs amid a sweeping crackdown on dissent.
Tens of thousands rallied in the capital, Tbilisi, to protest repressive policies by the governing party, Georgian Dream, which they see as trying to pull Georgia away from its democratic aspirations and into Russia's orbit.
They carried Georgian flags and placards supporting membership in the European Union, a cherished goal for many that has
been enshrined in the country's constitution.
Georgian Dream halted talks about joining the bloc last year, triggering waves of protests that have been met with mass arrests and police violence. The move came after the longtime ruling party declared victory in an election the opposition said was rigged.
The rallies, big and small, have continued despite a multipronged crackdown by the government through laws that target demonstrators, rights groups, nongovernmental organizations and independent media. Critics say some have been modeled on legislation passed in Russia, where President Vladimir Putin has harshly stifled dissent.
"We fight for our rights, for independence,"
NOTICE
NOTICE is hereby given that ULRICK JEAN BAPTISTE Charles Vincent Street, Nassau, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 29th day of September 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that IVANIUSKA DREKE SALGADO of Apartment #4 Chelsea Court House, Freeport, Grand Bahama, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 6th day of October, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
protester Sophio Asatiani told The Associated Press on Saturday. She said that she didn't want to see a return to the Soviet era, when Georgia was ruled from Moscow.
The rally's organizers, including veteran opera singer Paata Burchuladze, called on protesters to "take power back into the hands of the people," channelling widespread frustration with a government that has jailed key opposition figures, attempted to shut down critical media and used mass arrest and steep fines against largely peaceful demonstrators.
Some then tried to force entry into the presidential palace in central Tbilisi, smashing the gate before being driven away by riot police.
The opposition had promised a "peaceful revolution" before Saturday's municipal election, boycotted by most parties critical of Georgian Dream. Preliminary data from the Central Election Commission pointed to less than 30% turnout in the first half of the day. Giorgi Rukhadze, a political analyst in Tbilisi who was one of the protesters marching on Saturday, dismissed the vote as a "mock election."
"The only way to put (Georgian Dream) out of power peacefully is non-obedience, noncompliance," he said, arguing that people should join any forms of peaceful protests available to them.
Beijing has failed to stem the flow of chemicals used to make fentanyl as well as Trump's across-the-board "Liberation Day" tariffs, which have been reduced to the 10% baseline rate.
Observers say China could ease tariffs on U.S. farm goods should the White House walk back on fentanyl-related tariffs. That has yet to happen.
The White House "has not prioritized fentanyl" since this spring, said Sun Yun, director of the China program at the Washington-based think tank Stimson Center. She said Wang Xiaohong, China's public security minister, showed up in Geneva in May but met no counterpart from the U.S. to negotiate with.
But it is not time yet to write off a soybean deal, she said. "China still needs to have something to show for at the leadership meeting in South Korea," Sun said.
Gabriel Wildau, managing director of the consultancy Teneo, said a soybean deal is "the lowest-hanging fruit" for both governments.
"China needs beans, and the U.S. has them to sell. It costs China basically nothing to shift towards U.S. beans and away from Brazil and Argentina," Wildau said. "If Washington and Beijing can't reach a deal on soybeans, then they don't have much hope of reaching a deal on thornier issues like export controls."
Argentina is a sore subject for U.S. farmers right now because on September
24, Beijing took advantage of a tax holiday in Argentina and ordered nearly 2 million tons of Argentine soybean and soy products. The tax holiday came after the U.S. signaled it would provide a $20 billion support package to help stabilize the Latin American country's economy.
"That situation was angering to many farmers," Ragland said. "And while I don't think the specific intent was just to give a big chunk, give $20 billion to Argentina so that they could send China soybeans. That was the result. And the optics of it look absolutely terrible."
Farmers prefer trade over aid
Government aid might be necessary to help farmers get through this year if they cannot sell to China, but farmers say they would rather sell their crops on the market.
"All farmers are proud of what they do and they don't like handouts. We'd rather make it with our own two hands than have it handed to us," Iowa farmer Robb Ewoldt said.
Meanwhile, farmers like Ryan Mackenthun, a fifth-generation farmer in south-central Minnesota, say they will do everything they can to survive.
"It's definitely tighten the belt, to look at the inputs, look at the previous investments I made in fertilizer and see if I can stretch another year or two out of them to reduce costs but maintain the same yield projections, run equipment longer," Mackenthun said.
Georgian police on Saturday said the ongoing rally violated Georgian laws that regulate public assemblies and protest. It didn't provide specifics.
NOTICE
NOTICE is hereby given that DONACIEN JOEL of Carmichael Road, Nassau, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 6th day of October, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
Shortly after polls closed on Saturday evening, Georgia's Central Election Commission said that the vote had passed with no major disturbances. It added results would be announced within hours.
More than 50 international and local groups were registered to observe the municipal vote. But none of the major international watchdogs that monitored the previous local vote in 2021 — including delegations from the European Parliament, the Organization for Security and Cooperation in Europe and major U.S. nonprofits — were present this time.
NOTICE
NOTICE is hereby given that GREGORY EMMANUEL DORILAS of Soldier Road, St Michael Street, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 6th day of October, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
is
given that ADELINE BAZILE of Pyfrom Road, Nassau, The Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of September 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
SOYBEANS are harvested on the Warpup Farm in Warren, Ind., Wednesday, Sept. 17, 2025. Photo:Michael Conroy/AP
OPPOSITION supporters with Georgian national flags gather in the city center of Tbilisi, Georgia, on Saturday, Oct. 4, 2025, boycotting the municipal elections and call for the release of political opponents.
Photo:Zurab Tsertsvadze/AP
FRANCE'S NEW PRIME MINISTER NAMES A GOVERNMENT THAT MIGHT NOT LAST LONG
By JOHN LEICESTER Associated Press
FRANCE'S new prime minister named a government Sunday, bringing back former finance minister Bruno Le Maire to serve at the defense ministry, where he'll help oversee French military support for Ukraine and address threats to European security posed by Russia.
Other key positions in the new cabinet, announced by President Emmanuel Macron 's office, remain largely unchanged, with conservative Bruno Retailleau staying on as interior minister, in charge of policing and internal security, Jean-Noël Barrot remaining as foreign minister, and Gérald Darmanin keeping the justice ministry.
But the life span of Prime Minister Sébastien
Lecornu's new minority government risks being short, facing hostility in Parliament where it lacks a stable majority. Macron's opponents on the left of the National Assembly are mustering efforts to bring down Lecornu with a noconfidence vote, and the far-right National Rally party of Marine Le Pen is pushing for snap legislative elections.
The immediate priority for 39-year-old Lecornu, a centrist and close ally of Macron, is to keep his job.
Macron promoted Lecornu — previously the defense minister — last month as France's fourth prime minister in a year, after his predecessor was ousted by the deeply divided parliament amid turmoil over spending cuts.
The prolonged political instability is complicating
French government efforts to tackle the country's budget difficulties and weakening Macron's position domestically as he wrestles with pressing international challenges, including wars in Ukraine and Gaza and the shifting priorities of U.S. President Donald Trump. Le Maire — a former government heavyweight as finance minister until last year — takes over as defense minister from Lecornu, whose promotion to prime minister put him in the hot seat of the political turmoil that has gripped France for more than a year, with minority governments lurching from crisis to crisis, collapsing in short order one after the other.
The political deadlock is rooted in Macron's stunning decision to dissolve the National Assembly,
FRENCH Prime Minister Sebastien Lecornu delivers a statement at the Hotel Matignon in Paris, Friday Oct. 3, 2025, before a round of consultations with political parties ahead of the announcement of the new government. Photo:Alain Jocard/AP
parliament's powerful lower house, in June 2024. That triggered a legislative election that the French leader hoped would strengthen the hand of his pro-European centrist alliance. But the gamble backfired, producing a splintered legislature with no dominant political bloc
in power for the first time in France's modern republic.
Other than Le Maire, the most notable new cabinet appointment is Roland Lescure as finance minister. France's economy is one of the world's biggest and the second-largest in the European Union. But France's ballooning deficit and debts are worrying investors and
dividing political opinion.
Lescure previously held more junior roles under the finance ministry until last year.
Lecornu will face a key test on Tuesday when he gives a speech to the National Assembly, outlining his government's direction and his plans for crafting next year's budget — a pressing but divisive national priority.
He announced Friday that he will not use a special constitutional power to force a budget through parliament without a vote — as predecessors have done — and will instead seek a compromise with lawmakers from the left and the right.
Unions and activists have staged three days of nationwide protests since Lecornu's appointment, including one that shut down the Eiffel Tower on Thursday, protesting expected spending cuts to public services.
Government shutdown enters fifth day as Democrats and Republicans remain at an impasse
By JOSH BOAK Associated Press
REPUBLICAN and Democratic lawmakers at an impasse on reopening the federal government provided few public signs Sunday of meaningful negotiations talking place to end what has so far been a five-day shutdown.
Leaders in both parties are betting that public sentiment has swung their way, putting pressure on the other side to cave. Democrats are insisting on renewing subsidies to cover health insurance costs for millions of households, while President Donald Trump wants to preserve existing spending levels and threatening to permanently fire federal workers if the government remains closed.
The squabble comes at a moment of troubling economic uncertainty. While the U.S. economy has continued to grow this year, hiring has slowed and inflation remains elevated as Trump's import taxes have created a series of disruptions for businesses and employers have hurt confidence in his leadership. At the same time, there is a recognition that the nearly $2 trillion annual budget deficit is financially unsustainable yet there has to be a coalition around the potential tax increases and spending cuts to reduce borrowing levels.
House Democratic leader Hakeem Jeffries, among those appearing on the Sunday news shows, said there have been no talks with Republican leaders since their White House meeting Monday.
"And unfortunately, since that point in time, Republicans, including Donald Trump, have gone radio silent," Jeffries said. "And what we've seen is negotiation through deepfake videos, the House canceling votes, and of course President Trump spending yesterday on the golf course. That's not responsible behavior."
Trump was asked via text message by CNN's Jake Tapper about shutdown talks. The Republican president responded with confidence but no details.
"We are winning and cutting costs big time," Trump said in a text message, according to CNN.
His administration sees the shutdown as an opening to wield greater power over the budget, with multiple officials saying they will save money as workers are furloughed by imposing permanent job cuts on thousands of government workers, a tactic that has never been used before.
Even though it would Trump's choice, he believes he can put the blame on the Democrats for the layoffs because of the shutdown.
"It's up to them," Trump told reporters on Sunday morning before boarding the presidential helicopter. "Anybody laid off that's because of the Democrats."
While Trump rose to fame on the TV show "The Apprentice" with is catchphrase of "You're fired,"
Republicans on Sunday claimed that the administration would take no pleasure in letting go of federal workers, even though they have put funding on hold for infrastructure and energy projects in Democratic areas.
"We haven't seen the details yet about what's happening" with layoffs, House Speaker Mike Johnson said on NBC. "But it is a regrettable situation that the president does not want."
Kevin Hassett, director of the White House National Economic Council, said that the administration wants to avoid the layoffs it had indicated could start on Friday, a deadline that came and went without any decisions being announced.
"We want the Democrats to come forward and to make a deal that's a clean, continuing resolution that gives us seven more weeks to talk about these things," Hassett said on CNN. "But the bottom line is that with Republicans in control, the Republicans have a lot more power over the outcome than the Democrats."
Democratic Sen. Adam Schiff of California defended his party's stance on the shutdown, saying on NBC that the possible increase in health care costs for "millions of Americans" would make insurance unaffordable in what he called a "crisis."
But Schiff also noted that the Trump administration has withheld congressionally approved spending from being used, essentially undermining the value of Democrats' seeking compromises on the budgets as the White House could decline to not honor Congress' wishes. The Trump administration sent Congress roughly $4.9 billion in " pocket rescissions " on foreign aid, a process that meant the spending was withheld without time for Congress to weigh in before the previous fiscal year ended last month.
"We need both to address the health care crisis and we need some written assurance in the law, I won't take a promise, that they're not going to renege on any deal we make," Schiff said. The television appearances indicated that Democrats and Republicans are busy talking,
deploying internet memes against each other that have raised concerns about whether it's possible to negotiate in good faith.
Vice President JD Vance said that a video putting Jeffries in a sombrero and thick mustache was simply a joke, even though it came across as mocking
people of Mexican descent as Republicans insist that the Democratic demands would lead to health care spending on immigrants in the country illegally, a claim that Democrats dispute.
Immigrants in the U.S. illegally are not eligible for any federal health care programs, including insurance provided through the Affordable Care Act and Medicaid. Still, hospitals do receive Medicaid reimbursements for emergency care that they are obligated to provide to people who meet other Medicaid eligibility requirements but do not have an eligible immigration status. The challenge, however, is that the two parties do not appear to be having productive conversations
with each other in private, even as Republicans insist they are in conversation with their Democratic colleagues.
On Friday, a Senate vote to advance a Republican bill that would reopen the government failed to notch the necessary 60 votes to end a filibuster. Johnson said the House would close for legislative business next week, a strategy that could obligate the Senate to work with the government funding bill that was passed by House Republicans.
"Johnson's not serious about this," Senate Democratic leader Chuck Schumer said on CBS. "He sent his all his congressman home last week and home this week. How are you going to negotiate?"
HOUSE Minority Leader Hakeem Jeffries, D-N.Y., speaks during a news conference during day 3 of the government shutdown on Capitol Hill, Friday, Oct. 3, 2025, in Washington.
Photo:Mariam Zuhaib/AP
DC’S SHUTDOWN HASN’T
THE STOCK MARKET. HERE’S WHAT MAY
By STAN CHOE AP Business Writer
IF THE U.S. government's latest shutdown can't stop the stock market, what can?
Stock prices keep rising, even as the shutdown delays important economic reports that usually steer trading. The S&P 500 and Dow Jones Industrial Average set all-time highs Friday.
It's not just Big Tech driving the market, which has often been the case in recent years. Sure, Nvidia and other darlings of the artificial-intelligence frenzy are still climbing, but almost everything on Wall Street is coming up a winner. The Russell 2000 index of smaller stocks has set a record after taking nearly four years to get back to its prior all-time high. Gold also hit a record in an unusual confluence, while the most popular U.S.
bond fund is on track for its best year in at least five. Past shutdowns have had minimal effect on the stock market or on the economy, and the bet on Wall Street is that something similar will happen again. Many professional investors expect the market to climb still more, even after a 35% surge from its low in April. That's not to say there aren't risks. Much of the optimism is built on expectations for certain things to happen. If they don't, the pretty picture on Wall Street could become much uglier. Among the potential concerns:
Stocks are expensive
This is the easiest criticism to make about the stock market following its nearly relentless rally since April. Stock prices tend to follow the path of corporate profits over the long term, but stock prices have surged much faster than profits lately.
One measure popularized by Nobel-winning economist Robert Shiller, which looks at profits over the preceding 10 years, shows the S&P 500 near its most expensive level since the 2000 dot-com bubble. Some critics have made parallels between that bubble, which saw the S&P 500 eventually halve in value, and the recent AI bonanza.
It's not just the big household names in the S&P 500 index raising concern. Ann Miletti, head of equity investments for Allspring Global Investments, has been struck by how much stock prices have shot up for speculative kinds of stocks, such as smaller, money-losing companies. They've done much better than their profitable counterparts in recent months.
She said she's feeling relatively optimistic about conditions for stocks going into 2026, but "it's these little bubbles that are concerning to me. When you
see things like this, it's generally not a good thing."
To be sure, signals suggesting a too-expensive stock market are famously bad at predicting turning points in the market. Stocks can stay expensive for a while, as long as investors stay willing to pay the high prices.
Profits need to climb
For stocks to look more typical in valuation, either stock prices need to drop, or corporate profits need to rise. That's raising stakes for the upcoming profit reporting season.
Companies are lining up to tell investors how much profit they made during the summer, with PepsiCo and Delta Air Lines scheduled to lead off on Thursday.
JPMorgan Chase and other big banks will follow quickly afterward.
Analysts are looking for S&P 500 companies to report collective growth of 8% in earnings per share from a year earlier, according to FactSet. They'll need not only to hit that target, but also to forecast continued growth for the rest of this year into next.
That's even though companies are still trying to figure out how to deal with tariffs, stubbornly high inflation and other shifts in an uncertain economy.
The Federal Reserve needs to cut interest rates
One of the main reasons the stock market has boomed is the expectation that the Fed will deliver
a string of cuts to interest rates.
Lower rates give the economy a boost by making it cheaper for U.S. households and companies to borrow and spend. They can also make investors willing to pay higher prices for stocks, bonds and other investments.
Traders on Wall Street are largely expecting the Fed to cut interest rates at least three more times by the middle of next summer, according to data from CME Group. Fed officials themselves have indicated they're likely to cut because the job market is slowing.
But Chair Jerome Powell has insisted they may have to change plans quickly. That's because inflation has remained stubbornly above the Fed's 2% target, and lower interest rates can give inflation more fuel.
"I feel like interest rates and expectations of what the Fed is going to do are driving everything right now," Miletti said.
"If the Fed doesn't cut as much as people are expecting, any of these areas that look a little speculative, because they're not based on fundamentals, those areas will have some real problems."
"This is the question of the decade," said YungYu Ma, chief investment strategist at PNC Asset Management Group.
