10142016 business

FRIDAY, OCTOBER 14, 2016

business@tribunemedia.net

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Sarkis’s new offer ‘too late to party’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Wayne Munroe QC, who represents the Gaming Board and other government agency creditors of Baha Mar, told Tribune Business that the original developer’s latest highly-publicised See pg b4

Estimates 90% of contractors now fully engaged

QC: Why no ‘knock out’ offer in earlier sales process?

Says Sarkis trying to impact Govt ‘political fortunes’

No signs yet of price gouging, material shortages

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Sarkis Izmirlian

Wayne Munroe QC

$150m Hurricane Bond not set yet

New PI resort: Matthew could ‘not have come at a worse time’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NATARIO McKENZIE

The structure and target number for the Government’s proposed Hurricane Reconstruction bond are still being “bandied about”, Tribune Business was told yesterday, although the current goal is to raise $150 million.

Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, told Tribune Business that discussions between the Government and private sector over the bond are still ongoing.

“That number is still being bandied about,” Mr Sumner said, when asked how much the Government was seeking to raise from the Hurricane Reconstruction Bond’s issue.

“We had discussions with the Financial Secretary [Simon Wilson] two days ago, and have discussions with the insurance industry.

“The Government is also hav-

Target figure, structure still being ‘bandied about’ Syndicated loan an option, as well as bond Govt, private sector ‘testing market’ ing discussions with the commercial banks to whet their appetite, and see the level of interest in a type of bond like this,” the Chamber chief executive added.

“The numbers are still being bandied about, and there’s nothing exact, but we’re looking at one or two different scenarios to see how we can get this done in partnership with the Government.”

Mr Sumner’s comments were backed by commercial banking industry sources, who told See pg b4

Matthew delivers ‘gut punch’ to GB

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Hurricane Matthew has delivered “a gut punch” to Grand Bahama’s economy, the island’s Chamber of Commerce president said yesterday, delaying its planned turnaround “quite significantly”.

Kevin Seymour told Tribune Business that the Category Four storm would force the island to place economic revival initiatives on the backburner, as activities focused on private sector and community restoration.

Acknowledging that it was “a bit of a dismal picture” in the immediate term, Mr Seymour said the “consensus” among Grand Bahama’s business community was that Matthew had been more severe that the combination of Hurricanes Frances and Jeanne in 2004 - both of which also devastated the island.

Citing Freeport Jetwash and Jiffy Cleaners as two businesses that had been hit-hard by Matthew, Mr Seymour said remarks earlier this week by Obie Wilchcombe, minister of tourism, suggested Grand Bahama’s hotel sector had also been “paralysed”.

He emphasised, however, that it was “not all doom and gloom” for Grand Bahama and Freeport, given that the island-wide need for property repairs had already stimulated the con-

‘Significantly delays’ economic turnaround plan Growth initiatives have to take ‘back seat’ Chamber chief: ‘Not all doom and gloom’

Kevin D. Seymour struction industry into near full employment.

This would receive a further boost once multi-million dollar sums from insurance claims were injected into the island’s economy, with Mr Seymour praising the “fighting spirit” of Grand Bahamians and their willingness to rebuild.

Still, he conceded to Tribune Business: “Obviously, this is a setback for Grand See pg b5

Matthew drives construction sector to fiveyear ‘peak’ Contractor chief: ‘Busiest’ we’ve been since 2011

Munroe: ‘Not a bona fide, serious bid’ for Baha Mar

A prominent QC yesterday dismissed Sarkis Izmirlian’s latest bid to reacquire the $3.5 billion Baha Mar project, saying: “He’s too late to the party.”

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Tribune Business Reporter

nmckenzie@tribunemedia.net

Warwick Hotels and Resorts yesterday said it was working feverishly to have its new Paradise Island resort open for business by the end of October, revealing that Hurricane Matthew “could not have come at a worse time”.

Paul LeBlanc, special assistant to Warwick International’s president, in an emailed response to Tribune Business queries, said: “Hurricane Matthew could not have come at a worse time.

“The resort suffered significant landscaping, roof and other rain and windrelated damages that we are quickly working with local contractors to rectify in order to re-open the resort for business by the end of this month.

“The entrance and landscaping of the grounds looked like a visitor from Jurassic Park had stopped by, and we

Warwick: ‘Like Jurassic Park visitor came by’ Suffered major landscaping, roof, water damage Now targeting endOctober opening took a direct hit from the winds and rain of the storm whipped from the south-east to the north-west.”

Mr Leblanc added: “Luckily, the main building is solid and strong, so all we have to deal with are the intrusions caused by such heavy winds and rain.

“Palm tree trunks broke in half, metal frames bent like cardboard and huge pine trees toppled. The newly-constructed boardwalk and terSee pg b3

The construction industry is the “busiest” it has been in five years as Hurricane Matthew rebuilding ramps up, the Bahamian Contractors Association’s (BCA) president yesterday estimating 90 per cent of the sector is now “fully engaged”.

Leonard Sands told Tribune Business: “It’s amazing the amount of work going on.

I don’t know the dollar value, but in terms of the number of contractors engaged, I would say that 90 per cent of all contractors have been hired.”

Describing this as “really robust”, Mr Sands said the level of construction activity on New Providence in the wake of Leonard Sands Hurricane Matthew’s devastation was the greatest he had seen for five years.

“The industry has not been this busy since 2011-2012,” the BCA president disclosed to this newspaper. “They’ve not seen this for probably five years.

“Baha Mar was then ready to ramp up a bit.

In terms of the construction industry, it was still dealing with project work at that time.

Baker’s Bay was hot, things were happening at Schooner Bay and on different islands.

“It really took a dive in the years since, but we’re now seeing a level of activity that we’ve not seen since the end of 2011. It’s not just on New Providence, but also Grand Bahama and the Family Islands. People have to get See pg b4

PAGE 2 , Friday, October 14, 2016

Storm connectivity ‘speaks volumes for the Bahamas’ A financial services provider said its ability to remain in contact with clients throughout Hurricane Matthew “speaks volumes for the Bahamas”.

Sterling Global Financial’s chairman said the company never lost a moment despite the 145 mile per hour (mph) winds that howled around its office during Hurricane Matthew.

“We came through the hurricane in excellent condition,” David Kosoy said of the financial services provider with $9 billion un-

der administration, and offices in the Cayman Islands and the Bahamas.

“The Internet was never down during a business day.

We had full generators so we had power. Most staff members elected to come in. BTC was phenomenal.

“But had we lost all services here, we were fully prepared with off-site secondary disaster support services, something we learned a long time ago,” added Mr Kosoy.

“There is no such thing in

today’s world as single site information management if you are serious about conducting business with clients from around the world, and I think that the fact that we never lost a moment of servicing our clients speaks well not just for us as a company but for the Bahamas as a dependable, well-prepared financial services jurisdiction.”

Mr Kosoy’s comments came days after the first hurricane to hit Nassau in 15 years struck, while also causing widespread dev-

astation in nearby Andros and further north in Grand Bahama.

“There was never a time when we could not be in touch with our clients or act on their behalf, and what’s important is not that it is about Sterling, but that it speaks volumes for the Bahamas as a financial services jurisdiction,” said Mr Kosoy who chairs a business that invests in the US, Europe, Canada and the Caribbean.

“That does not minimise the damage that was suf-

fered by so many smaller businesses, many of which may be a very long time recovering,” he added.

“Nor is it intended to ignore the horrendous suffering of individuals who lost everything. Some of the stories we have seen and heard are heartbreaking, and we are doing all we can to assist as efforts are organised.

If there is a lesson in this, it is to reinforce the value of being ready with secondary information management and work sites.”

Florida relief drive generates 100,000 pounds for Bahamas Residents of Stuart, Florida, and its neighbouring cities have initiated a relief drive that has provided nearly 100,000 pounds of items to Hurricane Matthew victims in Grand Bahama and Andros over the past four days.

Private pilots have been using their time, fuel and planes to drop off relief items ranging from tarp and generators to food, water and basic personal items.

The massive operation, being run out of Stuart Jet Center, is the brainchild of Joseph Rieger, the owner of Blue Marlin Cove in Grand Bahama.

Mr Rieger orchestrated the outreach through his contacts in the area, and the owners/operators of the

Jet Center, Jeff Cappen and his brothers, donated one of their hangers for the staging of the relief efforts.

Obie Wilchcombe, minister of tourism, said: “It is with profound gratitude and appreciation, as the Member of Parliament of West Grand Bahama and Bimini, that I extend my appreciation and gratitude on behalf of the constituents of west Grand Bahama to Mr Joe Rieger of the Blue Marlin Cove in Bootle Bay. “Mr Rieger has tirelessly led a relief effort to assist the people by co-ordinating the collection of supplies, transportation and distribution to the community.

“Because of his efforts, a relief kitchen has been organised in West End. His

efforts have also resulted in the preparation and distribution of relief packages. I am most grateful to him and his staff who have diligently, and with integrity, managed the process.”

Patrick Aldrich, one of the lead organisers on the ground at the Jet Center, said that when the project began they thought they would only be sending out a few planes to assist.

Mr Aldrich said he never imagined that the operation would grow to such a large undertaking where planes are flying out throughout the day, with supplies and donations pouring in rapidly.

He added that efforts began on social media and went viral.

See pg b5

THE TRIBUNE

Caribbean hotel body urges Bahamas support The Caribbean Hotel and Tourism Association (CHTA) yesterday urged the sector to aid both immediate and sustained relief efforts in support of Haiti and the Bahamas, which have been devastated by Hurricane Mathew.

“Our neighbours in Haiti and the Bahamas have borne the brunt of this powerful storm, and the recovery and restoration process will be long and difficult,” said Karolin Troubetzkoy, the CHTA’s president.

Working with the national hotel and tourism associations in Haiti and the Bahamas, the CHTA is directing tourism industry stakeholders to local organisations that are co-ordinating on-theground relief, and accepting and directing donations of cash, equipment and supplies.

Ms Troubetzkoy added: “First, we must meet the immediate needs of people. Beyond that, we need to support long-term efforts which are essential to sustained recovery.”

To do this, the CHTA is developing a fund-raising initiative through the online auction channel, CharityBuzz.com, with which CHTA previously collaborated on a relief and recovery project for Dominica.

Regional hoteliers are invited to donate room nights for the auction to benefit residents in Haiti and the Bahamas who are struggling to put their lives back in order.

Room nights can be contributed by contacting CHTA’s dedicated auction e-mail at ch4haiti@gmail.com.

Airports and seaports in the Bahamas are operational, which will assist in the recovery operations and welcoming visitors to areas which were least impacted.

The majority of the hotels in The Bahamas are operating, while others expect to be fully operational over the next several weeks.

BTC now gaining network expansion Ericsson yesterday announced it had finished a complete network expansion for C&W (Cable & Wireless) Communications across its Caribbean and Panama operations, including for the Bahamas Telecommunications Company (BTC).

The expansion includes hardware, software, licensing and services for BTC, FLOW (the Caribbean) and CWP (Panama).

The network expansion will also provide all C&W markets across the Caribbean and Panama with access to software upgrades, and the opportunity to migrate to the Ericsson Software Model, which provides operators with a simple and transparent upgrade subscription.

“Ericsson is committed to providing C&W Communications with excellence in end-user satisfaction and delivering best-in-class results,” said ,” said Clayton Cruz, Ericsson’s vice-president for Latin America and the Caribbean.

“In the journey that we envision undertaking with C&W, Ericsson will provide solid guidance and support throughout all of the project’s critical phases, enabling C&W to provide its customers with the best in mobile connectivity solutions.”

“We are happy to once again partner with Ericsson in this network expansion project across all of our markets,” said Carlo Alloni, executive vice-president and chief information and

technology officer, C&W Communications.

“Considering the clear trend in the growth of subscribers, mobile data and smartphone usage, C&W’s key objective is to deploy a mobile network with worldclass quality, performance and operational convenience in order to exceed our customers’ expectations.”

C&W’s network expansion increases site capacity, improves the performance of the existing network through hardware and software upgrades, facilitates the implementation of carrier aggregation, and allows for the addition of small cells.

The expansion is currently underway and expected to be completed in November 2016.

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Qualified candidates may apply in confidence to: offshorebank17@gmail.com

THE TRIBUNE

Friday, October 14, 2016, PAGE 3

Arawak port back to 10 weekly calls

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Nassau Container Port yesterday said it was back to its regular 10 weekly cargo vessel calls, after Hurricane Matthew restricted the prior week to just 20 per cent of normal volume.

Michael Maura, chief executive of Arawak Port Development Company (APD), the port’s operator, told Tribune Business that it received just solitary calls from Tropical Shipping and Mediterranean Shipping Company (MSC) vessels prior to Matthew’s arrival.

“Ordinarily, we have approximately 10 calls per week,” he told Tribune Business. “Due to Matthew we missed two MSC calls, two Tropical calls, one Abaco Shipping call, one MailBoat Company call, and two Betty K calls.”

Mr Maura, though, said that today’s projected visits

by Tropical Shipping and MailBoat Company vessels would take the Nassau Container Port back to its regular 10 cargo vessel vis-

Just 20% of normal visits in Matthew week

From pg B1

‘Essential service’ restored quickly post-storm Had to operate manually until Tuesday, due to IT wait its per week.

He added that APD was open and operational last Sunday, so that Bahamian food stores could receive much-needed perishable goods from the MSC, Tropical and Mailboat vessels that were first to dock in Nassau following the storm.

“The ships have available capacity so there is no issue with cargo volumes,” Mr Maura said. “We were quick to receive vessels after the storm.

“Following Hurricane Matthew, we recognised that the port is an essential service, and we were out conducting the damage

Nassau Container Port assessments on Thursday evening, continuing into Friday, at Arawak Cay and the Gladstone Freight Terminal.”

Mr Maura said that both the Arawak Cay port itself and the inland freight terminal sustained minor damage from Matthew.

The former lost the metal panelling on the gates where trucks enter and exit, and two containers were blown over in the Category Three winds.

“The next big impact to us was on the IT front,” Mr Maura told Tribune Business. “We rely on IT ser-

vices from Cable Bahamas, and only got completely back up from an IT perspective on Tuesday morning. We had been operating on a manual basis up until then.”

Mr Maura said ships calling at the Nassau Container Port this week have been carrying a higher cargo volume than normal, with their sailings indicating that Florida’s ports - especially Miami and Jacksonville - were fully operational following Matthew’s passage.

“We only utilise one shift at the port, which gives us

an opportunity to add another shift if we have to, and volumes warrant it,” he told Tribune Business.

“We can easily handle the volumes coming into the Nassau Container Port, and we could easily double our business if we needed.”

Mr Maura said APD had also ensured office space at the Nassau Container Port had been made available to the National Emergency Management Agency (NEMA), while the Royal Bahamas Defence Force had also been offered use of facilities there.

Consumer Commission blasts price gouging as ‘shameful, ungodly’

and Employers Confederation’s (BCCEC) chairman, indicated the private sector organisation had received no specific complaints about merchants exploiting postMatthew demand and supply shortages to hike prices.

However, he urged all in the private sector to behave with “integrity and morality”, warning that any attempts at exploitation would cost businesses customers for life.

“The last thing we said is that businesses have to act with integrity,” Mr Bowe told Tribune Business of the Chamber’s position.

E J Bowe, the Price Control Commission’s chairman, told Tribune Business that its inspectors had been probing complaints received from consumers.

The Consumer Protection Commission (CPC) is warning the private sector not to take unfair advantage of consumers following the devastation by Hurricane Matthew.

It said in a statement: “Due to the many reports/ rumours of price gouging, the Consumer Protection Commission (CPC) cautions businesses not to take unfair advantage of consumers following the devastation left behind by Hurricane Matthew.

“The CPC appeals to all businesses, particular those

in the food, ice, water, hardware and lumber sectors, to maintain their current prices for these and other items, and to be mindful of the fact that in this tough economy, Bahamians are already struggling to make every dollar count.

“We wish to bring to these businesses’ attention that any unfair price increases, at such a time of crisis, hurts a wide crosssection of persons, primarily the poor, single parents and the elderly. Therefore, we encourage a spirit of fair play and social responsibil-

ity during this stressful and trying time.”

The CPC warned that should reports of price gouging be proven, it would “take whatever action available” under its Act, alert the Government and bring the “full brunt of the law” to bear upon businesses and/or persons engaging in price gouging.

“Taking advantage of consumers when they are down and out is indeed a most shameful, ungodly act,” said the CPC. Its statement came after the Democratic National

BTC works ‘feverishly’ on network restoration The Bahamas Telecommunications Company (BTC) said yesterday that it continues to work “feverishly” towards 100 per cent network restoration following Hurricane Matthew.

In a statement released yesterday, Leon Williams, its chief executive, said: “This is the second time in 12 months that we are working to restore services as a result of a natural disaster.

“However, continued upgrades and advancements mitigated against the potentially catastrophic impact that we could have received. Our teams have been fully mobilised since Friday and we are committed to restoring services to every customer as soon as possible.”

He added: “We are pleased with the performance of the network during the storm. Since the last storm, we focused our efforts on building not just a network that covers every island, rock and cay, but we wanted a more resilient network”.

BTC’s statement said: “Since the storm, BTC can report the mobile networks in Acklins, San Salvador, Mayaguana, Ragged Island and Rum Cay are at 100 per cent performance levels.

“While BTC was able to provide customers with service through the storm in all islands, post the storm, efforts are focused on optimising the networks in islands like New Providence, Exuma, Abaco and Long Island.

“BTC can report that since its last update, basic mobile and fixed-line services have been restored in North Andros. As a result of the repairs to the Nicholls Town site that was damaged in the storm, customers in Lowe Sound can use their mobile phones to make contact with their loved ones.

“The BTC cell sites in the Berry Islands also received massive damage during the

BTC CEO LEON WILLIAMS

storm. However, as of this morning, we were able to restore services in Bullocks Harbour. Due to the extent of the damages, in Chub Cay and Stirrup Cay, parts had to be sourced and

New PI resort: Matthew could ‘not have come at a worse time’

shipped. The BTC first responder teams are on island and will be working vigorously through the weekend to restore services,” the statement continued.

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Alliance’s (DNA) leader earlier this week urged the Government to enact antiprice gouging laws “with teeth” to protect Bahamian against unscrupulous merchants in Hurricane Matthew’s wake.

Branville McCartney told Tribune Business he had heard of some businesses charging “three times’” the normal price for essential supplies post-Matthew, although he did not name the companies or products involved.

Gowon Bowe, the Bahamas Chamber of Commerce

race remained unscathed.

“We had no broken glass or injuries, which we are grateful for. We are now prepared to open by the end of October and assess the decision and situation daily as works are completed. We will be sending out a press release for a special targeted opening to the Bahamian residents.”

Mr Leblanc said that due to the effects of Hurricane Matthew, not all four restaurants at the 244-room, adults-only, all-inclusive resort will be open simultaneously during the remainder of 2016.

“Due to the effects of Hurricane Matthew, not all four of our restaurants will be open simultaneously at all times during the remainder of 2016,” he explained.

“We will be serving breakfast, lunch and dinner each day, along with snacks and our full menu from Chickcharnies every day.

All other services and facilities of the Warwick Paradise Island Bahamas are available with the exception of the previously announced spa that will open later in the fall, along with the seaside terrace restaurant.”

The resort, in a notice on its website, said: “Due to damages caused by Hurricane Matthew, Warwick Paradise Island Bahamas has been forced to interrupt the soft opening until a later date to be announced shortly.

“Reservations may be made as of today from 18 November, 2016, onward with availability updated as soon as confirmed dates are available for repairs.”

Warwick International Hotels and Resorts purchased the former Paradise Island Harbour Resort in 2012 via a reported $6.8 million deal from Lehman Brothers Holdings and Driftwood Hospitality Management (via Gemwood Paradise Ltd), during an auction.

PAGE 4 , Friday, October 14, 2016

$150m Hurricane Bond not set yet From pg B1 Tribune Business that the sector and the Government were exploring the possibility of a syndicated loan, as well as a bond, as options for raising the necessary financing.

The banking industry is talking internally to determine each institution’s appetite, and how much each is prepared to lend the Government, either through a bond or syndicated loan.

The former option would operate in a similar fashion to a Bahamas Government Registered Stock (BGRS) offering, where investors are issued with promissory notes (bonds) promising to

pay them interest dividends at set intervals, until they get their money back at the maturity date.

A syndicated loan is one where various commercial banks/lending institutions pitch in to lend part of the total sum sought by the borrower (in this case, the Government), thereby sharing the risk.

One banking industry source, speaking on condition of anonymity, told Tribune Business that $150 million was the figure “they’re trying to get to” in terms of the total sum raised by the Government.

This figure, which is said to be subject to change, gives an idea of the scale

Sarkis’s new offer ‘too late to party’ From pg B1 offer “should not be taken seriously”.

Questioning why Mr Izmirlian had not made such a bid through the formal Baha Mar sales process run by the resort’s Deloitte & Touche receivers, Mr Munroe suggested the latest offer was too late to affect the resolution agreed by the Government and China for the stalled development.

“He was invited to the party and came after it was over,” the QC told Tribune Business. “I don’t think anyone is really taking him seriously. Talk is cheap; money buys land.”

Pointing out that the Supreme Court had approved the sales process run by the China Export-Import Bank’s receiver agents, Mr Munroe said the time for

Mr Izmirlian to submit the ‘knock out’ offer he unveiled this week was then.

“He had an opportunity to it do it then; to submit an offer that was higher than anyone else’s, and he didn’t,” Mr Munroe said of Mr Izmirlian, implying that his fresh bid was too little, too late by several months.

“I don’t get how he’s coming so late to a party that he was invited to.... I don’t regard this as a bona fide, serious offer. I regard it as more talk.”

Tribune Business, though, previously reported Mr Izmirlian’s complaints that the terms and conditions set for the sales process seemed designed to discourage, and even prevent, a bid by himself.

There were restrictions on speaking to former Baha

THE TRIBUNE

of destruction wrought by Hurricane Matthew, given that the funds raised will likely be used to bring immediate relief to stormravaged areas, and for the rebuilding of uninsured homes and Government infrastructure.

“It’s exploratory, and they’re trying to figure out how to structure it,” the source said of the ongoing discussions.

“At the moment, they’re testing the market to see what interest there will be in this arrangement, whether it’s a bond or not, and to see what they can get in terms of rates.”

Tribune Business was told that the initial bond proposal was for a note that would carry a 10-year maturity, and pay investors an interest coupon of between 1.5-3 per cent.

However, one source said such terms were likely to prove relatively unattractive to institutional investors, such as banks and insurance companies, given that the returns are far below what is offered on typical BGRS issues.

Indeed, a $50 million bond issue, carrying a 5.4 per cent interest coupon and 20-year maturity, was fully placed by the Central Bank on the Government’s behalf just before Matthew’s arrival.

The source said potential Hurricane Reconstruction Bond investors would be comparing the proposed returns offered to that 5.4 per cent, suggesting they would find it unattractive.

They added that some lending institutions had already “maxed out” or gone above their exposure lim-

its to the Government, via BGRS issues and loans, which could further complicate efforts to raise hurricane relief financing.

“It’s not an easy sell to the banks,” the source added, “as they may not want the exposure. And it’s not the time to ask investors to dig deep for a hurricane reconstruction bond when they may need to help themselves.

“There’s only so much money in this market, and you can’t keep going to a stone and beating blood out of it. To get the commercial banks to participate, they’ve got some headwinds blowing against them in that regard.”

It is also unclear whether the Bahamas will be able to access financing from the regional disaster selfinsurance fund, the Carib-

bean Catastrophe Risk Insurance Fund or (CCRIF), now CCRIF SPC, which has released $20 million to Haiti to aid with Matthew rebuilding.

Some insurance sources have told Tribune Business that the Bahamas may not be eligible to receive funding, as it did not contribute to CCRIF SPC’s financing in the last round.

Mr Sumner, meanwhile, said the Chamber’s Board would meet today to “crystallise the policies and procedures” governing how businesses will be able to access incentives and relief post-Matthew.

These will include access to credit for small and medium-sized enterprises (SMEs), either through the Government’s agencies or processes that the Chamber is working on.

Mar executives and others intimately involved with the project that he felt it was impossible for him to comply with, while the sales process may also have compromised the $192 million claim against the project’s general contractor.

And Mr Izmirlian’s October 10, 2016, letter to the China Export-Import Bank’s vice-chairman implied that he felt he had been subject to ‘double standards’ treatment in the sales process.

At the heart of his complaint is the contents of a recent judgment by Justice Ian Winder, which disclosed that Baha Mar’s proposed purchaser - believed to be a Chinese group or consortium - came from ‘outside’ the formal sales process.

This, Mr Izmirlian hinted, was contrary to the rejections his previous ‘outside the process’ bids received, and the insistence

by the Deloitte & Touche receivers that he had to participate in the court-approved structure to be considered a player.

Mr Munroe, though, said the receivers, especially Raymond Winder, Deloitte & Touche (Bahamas) managing partner, had publicly encouraged Mr Izmirlian to participate, saying he was “welcome to bid”.

And Prime Minister Perry Christie also encouraged Mr Izmirlian to bid, and the receivers to accommodate him. Mr Munroe said yesterday that he disagreed with these comments from the Prime Minister, as he “had no ability to tell the receivers to do such a thing”.

The QC added: “He [Mr Izmirlian] was entitled to participate, and if he was serious he would have bid then.”

“No one was keeping him from any party. In the very beginning the bank was willing to lend him $600 million, and all he had to do was give a personal guarantee for $150-$175 million.

He said the Bahamian government should do that. He can’t be taken seriously.”

Baha Mar’s original developer, in his October 10 letter to the secured creditor, promised that his offer would beat the price sub-

mitted by any rival bidder, including the proposed purchaser.

Apart from pledging to defeat all-comers in terms of price, Mr Izmirlian promised to make ‘bona fide’ Bahamian creditors ‘whole’, and pay all former Bahamian and expatriate Baha Mar staff ‘whole’.

Mr Izmirlian said the necessary financing for his offer was already in place, although he did not specify the source(s), and promised to drop all legal actions over Baha Mar in the Bahamian courts if a deal could be struck.

However, Mr Munroe argued that Mr Izmirlian’s latest gambit would have little to no impact, as the China Export-Import Bank and its receivers, together with the Government, were too far down the road with their Baha Mar solution.

“The receivers have, pursuant to the sales process, agreed to sell to a buyer,” he said. “The receiver/managers got the sale, and had the sale approved by the court.

There’s a sale.”

The Government and China Export-Import Bank have also agreed to a ‘Heads of Terms’ for Baha Mar’s construction completion, something that is required before any buyer will con-

summate a purchase.

“The Government agreement has to do with its approval of the buyer, and the condition that Bahamian creditors be paid for it to be approved,” Mr Munroe added.

Suggesting that Mr Izmirlian would make further announcements in the run-up to Baha Mar’s completion and opening, Mr Munroe said the developer was playing to Bahamian public opinion.

He even suggested Mr Izmirlian was “trying to affect the political fortunes” of the Government in the upcoming election, adding: “Rich men do things like that.”

However, with the former Baha Mar companies now placed into full liquidation, Mr Izmirlian and his family now face the loss of their $800-$900 million equity investment in a project they have been involved with for 13 years.

“I understand it clearly, having been involved in it [Baha Mar] for a while, why he has taken this position,” Mr Munroe told Tribune Business of Mr Izmirlian.

“He overplayed his hand, and got into a position he couldn’t recover from. I suspect a lot of it now is spite.”

Matthew drives construction sector to five-year ‘peak’ From pg B1 their homes back into condition to live in; they have to get it done.”

Many Bahamians are drawing on savings and other financial resources in their immediate possession to finance home, and business, repairs following the damage created by Matthew’s Category Three/Four winds and storm surges.

Mr Sands, though, suggested that the pace of construction industry activity would likely further increase once insurance claims were processed, and payouts were made to impacted Bahamian policyholders.

The Bahamas Insurance Association (BIA), and its property and casualty underwriter members, estimated earlier this week that total insured losses from Matthew could “exceed $400 million”, with associated payouts potentially representing a massive capital injection into the economy.

“At this point in time, I’ve bumped into a number of persons in the industry,

and the talk essentially was: ‘Everywhere there’s work, work, work’,” Mr Sands told Tribune Business.

“Everyone is going out to do this work as well, and as quickly, as they can. Everyone is engaged.”

Mr Sands said he and the BCA had received no reports of any building materials supply shortages, or complaints of ‘price gouging’ by either merchants or contractors, following Matthew’s passage.

Some building materials suppliers warned earlier this week that the storm’s impact on the south-eastern US coastline, stretching from Florida to the Carolinas, could cause shortages in the Bahamas as Americans look to rebuild their own homes and businesses.

Mr Sands, though, said the BCA and its members “haven’t seen that at the present time”, adding: “We’ll certainly know if a materials shortage comes into being.”

The BCA, too, had yet to receive any complaints of ‘price gouging’ when it came to construction work

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and the cost of supplies.

“We have our website wide open, and anyone can contact us and write in,” Mr Sands said. “We’re the first people they call if they are experiencing it [price gouging], and we haven’t had anything yet.”

Given that the construction industry ‘soaks up’ much of the Bahamas’ semi-literate and illiterate workforce, post-Matthew repairs and restoration could provide unexpected employment for many who were previously idle or unemployed.

The sector’s increased work volume might also help to ‘net off’, or cancel out, the temporary unemployment suffered in other industries, such as the hotels, as a result of Matthew.

Patrick Ward, Bahamas First’s president and chief executive, told Tribune Business yesterday there was “very little question” that Matthew would be the greatest single loss event in Bahamian history for the insurance industry.

This falls into line with the BIA’s earlier $400 million insured loss estimate, and Mr Ward said: “We’ve been getting quite a lot of claims.

“We’ve had a full office of people since Monday, and clients coming in on a continual basis in New Providence to report claims.

Claims are being filed on a continual basis.”

Mr Ward said this was not occurring just on New Providence, but on Grand Bahama as well. Agents and brokers that were not among its affiliates are also handling claims inquiries and processing.

“I know the numbers are creeping up beyond the numbers seen in previous events, both in terms of quantity of claims and the ultimate loss numbers,” he added.

The Bahamas First chief added that the Government’s infrastructure replacement costs were also “going to be pretty significant”, as assets such as public buildings and roads were often not insured for catastrophic events such as hurricanes.

THE TRIBUNE

Friday, October 14, 2016, PAGE 5

Matthew delivers ‘gut punch’ to GB From pg B1 Bahama. We were poised to do certain things which are probably now going to have to take a back seat to the restoration. It is definitely a gut punch for Grand Bahama.”

The Memorandum of Understanding (MoU) agreed between the Government and Grand Bahama Port Authority (GBPA) earlier this year was designed to provide investors and businesses, both Bahamian and foreign, with greater clarity and certainty regarding Freeport’s investment regime.

Reforms to the city’s governance were also contained in the MoU, and the Government brought legislation to Parliament to enshrine Freeport’s investment regime in statute law.

This was intended to pro-

vide the springboard for Freeport’s, and Grand Bahama’s economic revitalisation, together with a proposed $300 million Phase V expansion at the Container Port and Carnival’s planned cruise port in eastern Grand Bahama.

It is unclear whether these two projects, and their timelines, will be impacted by the Matthew fall-out, but the widespread destruction caused by the storm will likely move Grand Bahama from revitalisation to restoration, pushing the former back by a year or two.

“I’ve been doing an informal survey of members and businesses, and the consensus was that this particular storm was more severe than both Frances and Jeanne,” Mr Seymour said.

The damage inflicted by those two storms in 2004,

and subsequent closure of the Royal Oasis and loss of 1,200 jobs, propelled Grand Bahama’s economy into a moribund decade from which it has yet to fully escape.

Mr Seymour and the business communities are blaming the various tornados spawned by Hurricane Matthew’s 140 mile per hour winds for the extent of Grand Bahama’s property damage, particularly to roofs such as that on the Castaways hotel.

The Grand Bahama Chamber held an “emergency meeting” to assess the damage to the private sector on Wednesday, and Mr Seymour said: “I think it’s fair to say that most businesses have been affected by the storm in some form or fashion, the extent of the damage more severe for some than others.”

He cited Freeport Jetwash, the auto dealer and service/parts supplier, as one business that “sustained significant damage to their

building”, particularly the roof and windows on the parts department.

“I suspect it will be a while before they get up and going,” Mr Seymour said, adding that Jiffy Cleaners had also suffered property damage during Matthew.

Hotels such as Memories and the Grand Lucayan have temporarily closed for repairs, while other properties such as Pelican Bay are still open, reducing the available accommodation for technicians flown in to assist Grand Bahama Power Company with restoration.

With electricity starting to be restored, Mr Seymour said: “There might be some glimmer of hope in getting hotel operations up and running, but in my view it’s not going to be something occurring overnight. It’s going to be a few weeks before the hotels are fully operational.”

He added that Port Lucaya Marketplace, the main shopping and restaurant destination for cruise and

stopover tourists, was “expected to be out of commission for some time” as a result of Matthew.

“It is a bit of a dismal picture, but it is what it is,” Mr Seymour told Tribune Business. “It’s going to be a bit of a slog going forward.

“Grand Bahama residents have shown a level of resilience before, and I have no doubt we will come back from this as well, but it does change the timeline quite significantly for any turnaround.”

However, Mr Seymour said the arrival of insurance claim payouts would provide a major boost for the construction industry, with the repair and restoration effort helping to create jobs and compensate for lay-offs in other areas.

“It’s not all doom and gloom,” he told Tribune Business. “There are some openings in construction and other fields. With repairs and the replacement of infrastructure in Grand Bahama, and Freeport in

Florida relief drive generates 100,000 pounds for Bahamas From pg B2 “It just got blown up,” Mr Aldrich said. “People just kept sharing the information, and even the media found out about it.”

Dozens of volunteers are being used to assist in the efforts, from school children to church organisations and others who want to lend a hand.

The volunteers include persons from as far north as St Augustine, which was also hit by Hurricane Matthew last week.

When asked why he was able to assist with the relief to the Bahamas when his

Returned boxes of Samsung Electronics’ Galaxy Note 7 smartphones are placed at a shop of South Korean mobile carrier in Seoul, South Korea, yesterday. Samsung Electronics says it has expanded its recall of Galaxy Note 7 smartphones in the U.S. to include all replacement devices the company offered as a presumed safe alternative after the original Note 7s were found prone to catch fire. (AP Photo)

Samsung Note 7 recall to cost at least $5.3 billion SEOUL, South Korea (AP) — Samsung Electronics said Friday that the discontinuation of the Galaxy Note 7 would cost the company about $3 billion during the current and next quarters, bringing the total cost of the recall to at least $5.3 billion.

The Note 7 discontinuation will cost in the mid-2 trillion won range during the October-December period and another 1 trillion won ($884 million) during the January-March quarter, the company said in a statement.

Samsung has already slashed its third-quarter profit forecast by $2.3 billion earlier this week, an amount that could wipe out its entire mobile business profit. That did not include the cost of Samsung’s first round of recall, which analysts estimated at between 1 trillion won and 2 trillion won.

Samsung has enough cash and other businesses to absorb the shock from the phone recall. It said it expected to generate 5.2 trillion won ($4.6 billion) in operating income during the third quarter after the recall cost. Analysts said most of the income will be generated by its businesses in advanced displays and semiconductors.

Samsung added that it will make significant changes in its quality assurance processes.

Due to mysterious fires and overheating problems, more than 2.5 million Galaxy Note 7 smartphones were recalled twice, before it was discontinued earlier this week just two months since its launch in August.

In the United States, 1.9 million Note 7 phones were subject to the two recalls. Samsung also recalled about 200,000 phones in China and about half a million phones in South Korea.

The U.S. Consumer Product Safety Commission said there were 96 reports of batteries in Note 7 phones overheating in the country, including 23 new reports since the first recall announcement last month.

The company received 13 reports of burns and 47 reports of property damages associated with the phones.

“Consumers should immediately stop using and power down all Galaxy Note 7 devices, including Note 7 devices received as replacements in the previous recall,” the agency said.

The botched recall raised questions about Samsung’s initial analysis of the Note 7 phone’s problems. At first, Samsung said a minor manufacturing error in the batteries for the Note 7 was

causing the phones to overheat.

The problem with the replacements is still unclear.

Experts say Samsung may have rushed to conclude the Note 7’s problem was a battery issue and it may take a long time to find the real cause.

Seeking to retain customers, Samsung is giving an incentive of a $100 credit to Note 7 owners who switch to another Samsung phone.

The Note 7 device was one of the most expensive smartphones in the market with all the latest technologies from Samsung, including the ability to unlock the phone by scanning a user’s iris. It was sold for between $850 and $890.

town was also hit by the hurricane, a donor from St. Augustine said: “Because we have Home Depot, and in the Bahamas they do not.”

Jeff Capen said: “I travel to the Bahamas and vacation there. I have friends there, and I wanted to help as soon as possible, because I wanted to be sure that the people who were affected by the storm were taken care of.”

The volunteers have included students from Treasure Coast High School Junior Air Force ROTC and Empowered Masters Commission, a bible college in

particular, they will get a much-needed facelift similar to what happened in 2005.”

The Chamber chief said it was already “very hard to find skilled persons to work on roofs”, and contractors were having to place some homeowners on waiting lists.

“That’s the kind of thing we see ensuring that small businesses, entrepreneurs, get some work that up until now they’ve been challenged with,” Mr Seymour added.

“One of the intangibles here is the fighting spirit of Grand Bahama’s people. Because we’ve been through this before, a lot of people are circumspect about it, the fact they got away with their lives, and they know they can rebuild.

“Nobody has given up.

Everyone I’ve spoken to is prepared to roll up their sleeves and do what is necessary to get the island back on its feet.”

Lake Wales, Florida.

The operation at the Jet Center in Florida will be continuing through today, when remaining items will be taken down to South Florida to Seacor Island Lines, where vessels will ship the relief to the Bahamas.

Seacor Island Lines is a shipping company that runs cargo to all of the Bahamas.

Mike LaFleur, its chief executive, said they were working with private enterprises, foundations and individuals to ship relief cargo to Andros and Freeport.

Of the massive operation in Stuart, Florida, he said: “We are really hoping to replicate this effort down south.”

He added that his company would be assisting in relief efforts as long as needed because it has been operating in the Bahamas for years.

PAGE 6 , Friday, October 14, 2016

THE TRIBUNE

EU-Canada trade deal at mercy of Belgian region NAMUR, Belgium (AP) — Wallonia, which is not even a country, is proving how difficult it is for the European Union to set policy for its 28 nations. A landmark trade deal with Canada is at the mercy this week of a decision in the regional parliament of this sub-region of Belgium.

The agreement has already been backed by an overwhelming majority of the member nations in the bloc of half a billion people and is earmarked to be officially signed at an EUCanada summit in Brussels in two weeks.

Not so fast, says Wallonia, the Francophone region of this multilingual nation of 11 million. Under Belgium’s byzantine constitutional arrangements to appease their French and Dutch-speaking populations, all national and regional bodies need to back such trade deals for them to go ahead. With the rest of the EU, and Canada, looking on, it heaps enormous pressure on the Walloon legislature in southern Namur, which should decide on Friday.

That pressure only grew on Thursday, when Germany’s constitutional court rejected calls from opponents of a trade deal they claim is undemocratic for a legal injunction that had the potential to spell an end to the pact.

EU ministers are to decide whether to give their full backing at a meeting in Luxembourg next Tuesday, leaving all eyes centered on the 3.5 million people of Wallonia, a region of rolling pastures and woods as well as a string of poor rust-belt towns looking at an uncertain future.

“There is a lot of fear involved because we don’t know where we are going,” said local cow farmer Marc Decoster, who is scared a deal with Canada will leave the farm sector too exposed to cheaper imports from industrial Canadian farms.

Environmental activists and trade unions have all warned such international deals could worsen local standards for food, work and industry.

“We arrived at the conclusion in April this year that we could not sign this

treaty and we named a certain number of concerns that were not met,” Wallonia parliament president Andre Antoine told The Associated Press on the eve of the decision.

The EU says the Comprehensive Economic and Trade Agreement deal with Canada will improve trade, create jobs, will remove just about all tariffs and custom duties while at the same time guaranteeing European standards on anything from food and health quality to labor rights.

“This treaty has, in a number of issues of market access and investment, reached a stage that is infinitively better that in any other trade treaty so far, without in any way, directly or indirectly, threatening the level of safety health and environment protection that we already have,” said Jacques Pelkmans, senior research fellow at the Center for European Policy Studies.

Like so many others, he is frustrated that rejection by part of one nation, however small, could destroy the deal, and said it would un-

a protestor holds a sign during a demonstration against international trade agreements in Brussels. The Belgian provide of Wallonia is proving how difficult it is for the European Union to set policy for its 28 nations. A landmark trade deal with Canada is at the mercy this week of a decision in Belgium’s sub-region of a few million. (AP Photo)

Goldman Sachs launches personal loan service NEW YORK (AP) — Goldman Sachs unveiled a long-awaited online consumer lending service Thursday, the investment bank’s latest push to retail banking.

Eligible customers will be able borrow up to $30,000 as fixed-rate, no-fee, unsecured personal loans, with terms from two to six years. The service will be called Marcus, after one of the firm’s founders, Marcus Goldman.

It’s only the second foray into consumer finance for the venerable investment bank, which is better known as a power-player on Wall Street catering to wealthy investors, corporations and institutions. Earlier this year, it began offering online savings accounts and CDs. Goldman Sachs is entering into a crowded industry.

Online lenders like Prosper, Lending Club, Sofi and Avant are among the bigger names in the online lending market.

And there are plenty of personal loan offerings from traditional retail banks like JPMorgan Chase, Bank of America, or U.S. Bank. Most of these loans are aimed at customers with high credit scores looking to refinance credit card debt.

“Marcus offers an option for consumers who

are searching for a simpler alternative to credit card borrowing, where rates can change and multiple fees can be charged,” Harit Talwar, head of Marcus, said in a prepared statement.

Initially, potential Marcus customers will be limited to those who receive mailers with a code to invite them to apply for a loan. Goldman said it plans on expanding the potential audience for personal loans in the coming months. The bank plans to offer loans with flexible payment dates and amounts, features that companies like Prosper and SoFi do not offer.

Goldman Sachs has seen consumer banking as a way to expand its business without large amounts of risk. It bought the online deposits of GE Capital earlier this year and used that to launch GSBank, its own online savings platform. Its online lending service was long expected. Goldman had said it was exploring getting into the service and announced key hires to help launch it.

Unlike Prosper or Lending Club, Goldman will be using its own deposits to fund the loans, which will give the bank an advantage because it will not have to meet the whims of outside investors.

dermine the credibility of the whole EU. Because the EU consists of independent nations, often wary of giving up powers to Brussels, there are many checks and balances that give national capitals veto rights on a slew of issues.

If Wallonia can scuttle the deal, said Pelkmans, it would finish off EU trade policy “because now it is the Walloon parliament, tomorrow it is the Brussels parliament, tomorrow it is Malta... There is no end to this.”

For many, the CETA is only a prelude to the even bigger free trade deal, called TTIP, that is being negotiated with the United States, and which has given rise already to massive protests in several member states, including Belgium — and Wallonia.

“We know well that after CETA there will be TTIP and we have a model of society that it is not the same as the Americans or the Canadians, so we propose another treaty in which the features that do not please us are corrected,” Antoine said. a screen at a trading post on the floor of the New York Stock Exchange is juxtaposed with the Goldman Sachs booth. Goldman Sachs unveiled its long-awaited online consumer lending service called “Marcus” yesterday, the investment bank’s latest push to traditional retail banking products.

Eligible customers will be able borrow up to $30,000 from Marcus as fixedrate, no-fee, unsecured personal loans, with terms from two to six years. (AP Photo)

Clinton says she can’t recall key details about email server WASHINGTON (AP) — Hillary Clinton said under oath in a court filing Thursday that she can’t recall key details about her use of a private email server or she refused to answer questions about it posed by a conservative legal group.

Clinton lawyer David Kendall provided the Democratic presidential nominee’s sworn responses to 25 written questions submitted by Judicial Watch. The group has filed multiple lawsuits seeking copies of govern-

ment documents from Clinton’s tenure as secretary of state.

Clinton’s answers provided no new information beyond what she told FBI agents during the recently closed investigation into whether she and her staff mishandled classified information.

In her responses, Clinton used some variation of “does not recall” at least 21 times.

For example, Clinton was asked when she decided to use her private email account

to conduct government business and whom she consulted in making that decision.

Clinton said she recalled making the decision in early 2009, but she “does not recall any specific consultations regarding the decision.”

Asked whether she was warned that using a private email account conflicted with federal record-keeping rules, Clinton responded

that “she does not recall being advised, cautioned, or warned, she does not recall that it was ever suggested to her, and she does not recall participating in any communication, conversation, or meeting in which it was discussed.”

Judicial Watch had sought to depose Clinton in person about the creation of the private server located in the basement of her New York home. In August U.S. District Court Judge Emmet G. Sullivan instead ordered the Democratic presidential nominee to respond to the group’s questions in writing.

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THE TRIBUNE

Coal company shifts to Canadian port to reach Asia markets BILLINGS, Mont. (AP) — A coal company with mines in Montana and Wyoming said Thursday that it’s begun exporting fuel to Asia through a Canadian shipping terminal, after its yearslong effort to secure port access in the U.S. Pacific Northwest has come up short.

The announcement from Lighthouse Resources, Inc. offered a rare bit of positive news for the coal mining industry, which has been in a prolonged tailspin amid falling demand due to climate concerns and competition from cheap natural gas.

But industry opponents said the move signals that coal exports through Oregon and Washington are doomed to failure, while a regional trade group warned it heralds a loss of U.S. jobs to Canada.

Details on the announcement were obtained in advance by The Associated Press.

Lighthouse, which is headquartered in Utah, had been seeking approval since 2011 for a coal export terminal in Oregon and since 2010 for a terminal in Washington. It’s faced strong opposition from environmentalists, American

Indian tribes and some state officials concerned over coal dust pollution and potential damage to fisheries on the Columbia River.

With the company’s coal now going through British Columbia’s Westshore Terminals, Lighthouse Chief Executive Officer Everett King said it was pulling out of the proposed coal terminal at Port of Morrow in Boardman, Oregon after that project stalled.

‘Though we are disappointed for our Morrow Pacific Project supporters, we are very excited to commence delivery of products to our customers,’ King

Friday, October 14, 2016, PAGE 7 said.

The exported fuel is destined for coal-burning power plants in South Korea, the company said. It declined to give shipment volumes.

The Washington state project, known as Millennium Bulk Terminals and located near the town of Longview, continues to move forward. It received a favorable review in a preliminary environmental assessment last month by the U.S. Army Corps of Engineers.

Overseas exports of U.S. coal have been touted as a lifeline for an industry wracked by a wave of bankruptcies and declining domestic demand. Yet shipments to foreign nations peaked in 2012 and have since fallen sharply, as China and other countries have reduced their imports of the fuel, according to the Energy Information Administration.

Lighthouse Resources

operates the Decker Mine in Montana and the Black Butte Mine in Wyoming.

Combined, the mines employ more than 300 people and extracted roughly 6 million tons of fuel last year, according to data submitted to the U.S. Labor Department.

Black Butte is co-owned with Anadarko Petroleum.

An organizer for a group that’s fought against the Lighthouse proposals said she was not surprised the company was dropping its efforts at the Port of Morrow, after the Oregon Department of State Lands last year denied a permit for the project.

‘I imagine Lighthouse doesn’t see a future for coal exports on the Columbia,’ said Jasmine Zimmer-Stucky with Columbia Riverkeepers. She said the company’s agreement with Westshore appeared to be a ‘backdoor way’ to avoid more stringent environmental rules in Oregon and

Washington.

Kathryn Stenger, a spokeswoman for the Alliance for Northwest Jobs & Exports, said fears that the region would lose business to Canada or other regions of the U.S. were now becoming reality.

‘Canada is all too happy to take these jobs,’ she said.

Port of Morrow General Manager Gary Neal said the shift by Lighthouse to Canada was disappointing.

It will mean the loss of $200 million in potential capital investment in the port and 25 anticipated jobs, he said.

The port will try to make up the difference by increasing shipments of grains, potash and other commodities.

The port will continue with its appeal of the state’s permit denial in order to preserve future options at the facility, he said. A hearing before an administrative law judge is scheduled for November.

Greece’s Tsipras demands debt relief deal by Christmas ATHENS, Greece (AP) — Greek Prime Minister Alexis Tsipras vowed to impose a new round of austerity measures in the next few weeks, but said the country would demand a debt relief deal from bailout lenders by Christmas.

“We are not coming as beggars or as the poor relative, but with our heads held high and with dignity, as representatives of a people that suffered so much,” Tsipras said Thursday, speaking at a congress of his left-wing Syriza party.

Greece has been surviving on bailout loans from other eurozone countries and the International Monetary Fund since 2010. But with a battered economy, its national debt is set to reach a whopping 315 billion euro ($347.5 billion) this year, or 179 percent of gross domestic product.

Athens wants swift action on lenders’ promises to provide longer maturities and a smoother repayment schedule.

“Telling us to get on with our homework and ‘we’ll see’ is no longer acceptable to us,” Tsipras said. “This delay in specifying measures needed for debt relief ... has no, absolutely no, justification.”

Creditors are committed to improving terms for Greece, but the IMF and lead eurozone lender Germany are at odds over the urgency. Several eurozone members argue that Greece already has generous repayment terms and has delayed instituting vital structural reforms.

IMF and European debt inspectors are due back in Athens this month to press Greece on slashing government protection for dis-

tressed mortgage holders and workers at unprofitable companies — measures they argue are crucial to restart the economy after years of decline and stagnation.

Tsipras’ government argues that implementing more tough measures without debt relief would stifle the country’s recovery.

In a letter Thursday to EU Finance Commissioner Pierre Moscovici, 36 lawmakers from Greece’s Syriza party and allied European parties urged the European Union to press eurozone lenders on the debt issue.

“Any further delays regarding the beginning of a concrete and conclusive dialogue on debt relief could have devastating results on the Greek economy and counteract even the modest decrease of unemployment

Greece’ Prime Minister Alexis Tsipras delivers his speech during his party congress in Athens, yesterday. European lawmakers supportive of Greece’s left-wing government are urging the European Commission to act swiftly on debt relief for the bailed out eurozone member, warning that delays would produce “devastating results” for its economy. (AP Photo) and poverty levels,” the letter said.

In Athens, Greek Economy Minister George Stathakis told parliament that

without relief the national debt would be “not viable” in 2017 even if the government meets ambitious budget targets.

“We are at a key moment,

because the debt sustainability calculation depends on strong assumptions,” Stathakis said. “It needs to be sorted out by Christmas.

Otherwise it won’t work.”

MARKET REPORT THURSDAY, 13 OCTOBER 2016

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

BISX ALL SHARE INDEX: CLOSE 1,947.34 | CHG 0.00 | %CHG 0.00 | YTD 123.39 | YTD% 6.76 BISX LISTED & TRADED SECURITIES

the Amazon logo in Santa Monica, Calif. Amazon.com will add about 120,000 seasonal workers in an effort to meet an expected spike in demand during the holidays, announced yesterday. (AP Photo)

Amazon adding 120,000 workers to meet holiday demand NEW YORK (AP) — The holidays are coming and Amazon plans to add 120,000 seasonal workers in an effort to meet an expected spike in demand as more and more people trade bricks for clicks.

The seasonal positions will be created at fulfillment centers, sorting centers and customer service sites in 27 states. The move marks a 20 percent boost from the 100,000 seasonal hires a year ago.

The move comes as online shopping growth continues to eclipse shopping at traditional stores. The National Retail Federation, based in Washington, D.C., is forecasting holiday sales for the November and December period to rise 3.6 percent to $655.8 billion, much better than the 3 percent growth seen in the year-ago period.

Online shopping is expected to rise 7 to 10 percent over last year to as much as $117 billion.

Ever since capacity problems in 2013 caused some

people to get packages after the holidays, Amazon has been pouring money into its distribution centers and logistics chain, opening new distribution centers and leasing its own planes and trucks to speed up delivery.

At the end of July, the company said it has 123 distribution centers globally and more than 23 sorting center, with plans to have add 21 new global fulfillment centers by the end of September; at the same point in 2015, it had added only 10.

Last year, the company said it transitioned 14,000 seasonal positions to regular, full-time jobs and it expects to boost that figure this year.

By contrast, brick-andmortar stores holiday hiring has been relatively flat from the prior year.

Macy’s plans to hire about 83,000, Kohl’s Corp. plans to hire 69,000 additional workers and Target Corp. says it will hire more than 70,000, all about even from a year ago.

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CHANGE 0.00 0.00 0.00

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

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

115.33 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

115.05 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

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

52WK LOW 100.00 100.00 100.00

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

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

38,075

VOLUME

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 13.4 11.7 8.4 15.9 N/M N/M 35.0 15.4 11.5 19.3 26.5 23.3 9.2 11.4 14.3 11.4 12.7 9.4 15.8 0.0

YIELD 2.22% 6.31% 0.00% 4.57% 0.00% 0.00% 2.89% 3.06% 3.43% 3.45% 4.36% 2.74% 2.61% 4.14% 3.13% 0.00% 3.39% 1.82% 5.36% 0.00%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 7.00% 6.00% Prime + 1.75%

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

6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25%

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

MUTUAL FUNDS 52WK HI 1.99 3.90 1.92 167.58 138.35 1.45 1.67 1.55 1.09 6.94 8.65 5.92 9.94 11.15 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.39 1.60 1.50 1.03 6.41 7.62 5.66 8.65 10.54 9.57

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

NAV 1.99 3.90 1.92 167.58 136.68 1.45 1.67 1.55 1.09 6.94 8.65 5.92 9.59 11.15 9.57

YTD% 12 MTH% 2.33% 4.05% 3.34% 6.09% 1.63% 2.99% 3.41% 5.18% 2.95% -0.58% 2.51% 3.84% 2.48% 4.47% 2.20% 3.79% 5.03% 3.89% 4.05% 8.28% 5.93% 13.53% 2.73% 4.73% 3.97% -3.53% 2.96% 4.33% -4.26% -6.22%

NAV Date 31-Jul-2016 31-Jul-2016 27-Jul-2016 30-Jun-2016 30-Jun-2016 31-Aug-2016 31-Aug-2016 31-Aug-2016 31-Aug-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016

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

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

PAGE 8 , Friday, October 14, 2016

THE TRIBUNE

Stocks shaken by China report, but recover from early plunge Financial firms took the largest losses as investors feared the latest reports on China mean banks won't lend as much money to consumers and businesses around the world. Bank of America fell 20 cents, or 1.2 percent, to $15.83 and Bank of New York Mellon skidded $1.03, or 2.6 percent, to $39.09.

‘They need U.S. growth and they need global growth to really grow earnings,’ said Chalupnik said.

Wells Fargo lost 57 cents, or 1.3 percent, to $44.75 after it said Chairman and CEO John Stumpf retired as it deals with a scandal over its sales practices. Last month regulators said Wells Fargo opened bank and credit card accounts without telling customers and also moved money between accounts and created fake email addresses to sign customers up for online banking. The second largest U.S. bank has been fined $185 million for its actions, and its stock is down 11 percent since early September.

Longtime executive Tim Sloan is replacing Stumpf as CEO and Stephen Sanger

becomes chairman.

Stocks that pay big dividends did better than the rest of the market, and utility companies and real estate investment trusts traded higher. Dominion Resources added $1.15, or 1.6 percent, to $73.31 and Duke Energy picked up $1.29, or 1.7 percent, to $77.94.

Investors also bought government bonds, which sent yields sharply lower.

The yield on the 10-year Treasury note slid to 1.74 percent from 1.77 percent.

Energy companies also declined even though energy prices moved higher.

Chevron slipped $1.36, or 1.3 percent, to $100.79 and Cabot Oil & Gas shed $1.11, or 4.7 percent, to $22.75.

Companies that rely heavily on sales to China fell. Chipmaking equipment company Applied Materials shed 78 cents, or 2.7 percent, to $27.86 and security software maker Symantec gave up 66 cents, or 2.6 percent, to $24.28.

Copper and gold producer Freeport-McMoRan gave up 41 cents, or 4.1 percent, to $9.64.

Likely impact of Thai king's death on economy unclear

been relatively calm since the last coup in 2014. Another spate of protests could hurt the tourism sector, which accounts for a tenth of the GDP. In the longer term, past upheavals already have damaged the country’s competitiveness as infrastructure projects stalled and investors held back, wary of uncertainty. "The lack of investment is undermining the economy’s future productive capacity," Krystal Tan and Gareth Leather of Capital Economics wrote in a recent report. "The bottom line is that it is difficult to be upbeat about Thailand’s medium-term outlook until the political picture becomes clearer."

NEW YORK (AP) — Bank stocks were shaken Thursday after a steep drop in China's exports made investors worry again about the health of the world's second-largest economy.

U.S. stocks gradually recovered most of their losses as safer investments like utilities traded higher.

Indexes took big losses early on after major Asian markets skidded overnight.

The Dow Jones industrial average dropped as much as 184 points. Industries that depend heavily on China and global economic growth, like technology and energy companies, also fell. As the day wore on, though, investors bought utilities, real estate investment trusts, and other stocks that tend to pay big dividends.

And they seemed to reconsider how well China's economy is doing. Over the last few months it appeared to be getting stronger, said David Chalupnik, head of equities for Nuveen Asset Management.

‘We've had three months of good data out of China,’ he said. ‘The question is, is

BANGKOK (AP) — Thailand’s stock market and currency were shaken as long-ailing King Bhumibol Adulyadej’s health worsened this week.

Now, after his death Thursday at age 88, the outlook remains murky. Here are a few of the key factors and indicators to watch for: SHARE PRICES: Thai stocks slid after the Royal Palace announced that Bhumibol’s condition was unstable, the first time it had used that phrase regarding the

American flags fly in front of the New York Stock Exchange. U.S. stocks are falling early yesterday, and following global markets lower after a steep drop in China’s exports, a troubling sign for the second-largest economy in the world. Banks and mining companies are taking some of the largest losses. (AP Photo) it just one number or is this the start of a new trend?’

The Dow dipped 45.26 points, or 0.2 percent, to 18,098.94. The Standard & Poor's 500 index fell 6.63 points, or 0.3 percent, to 2,132.55. The Nasdaq com-

king’s health. On Wednesday the benchmark fell nearly 7 percent but ended down 4.1 percent. The market could be roiled by a sell-off of assets by palace officials or other members of the political elite.

THAI BAHT: Thailand’s currency was trading at 35.69 baht to the U.S. dollar on Thursday. It fell 1.1 percent on Wednesday and 0.2 percent on Thursday.

But such gyrations do not compare with the loss in the baht’s value caused by spec-

posite sank 25.69 points, or 0.5 percent, 5,213.33.

China's exports fell 10 percent in September compared with a year ago. That was worse than analysts expected, and it was also a much bigger drop than

in August. China has been critical to global economic growth for a quarter century, and since the summer of 2015, stocks have periodically been roiled by worries that China's economy was weakening.

ulative attacks that triggered a region-wide financial crisis in 1997.

Prince Vajiralongkorn, has not earned the same respect as his father.

ECONOMY ON EDGE: Bhumibol was a constitutional monarch with no formal political role, but was regarded as a unifying figure amid Thailand’s perennial political turmoil. Many analysts expect the country to remain calm, as Thais focus on mourning. Few are likely to want trouble with the military junta. But there is concern over the succession, since the king’s son, Crown

POLITICS: Concern over the royal succession has been entwined with Thailand’s political turmoil in the past decade, as royalists sought to ensure that they control the process instead of certain politicians whose fealty to the monarchy they doubt. In a report, the Eurasia Group said his passing would lead a general election scheduled for 2017 to be pushed back to 2018. The overall impact on

the business environment, it said, would likely be limited to a 100-day period of mourning that would follow his death.

UNCERTAINTIES: While most analysts expect Thailand’s transition to be a stable one, the country remains prone to political upheavals, with affluent urban centers and poorer rural areas. The military has overthrown civilian, democratically elected governments twice in the past decade, though the situation has