10162019 BUSINESS

business@tribunemedia.net

WEDNESDAY, OCTOBER 16, 2019

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Fidelity ‘can be proud’ of return on affiliate sale

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net FIDELITY Bank (Bahamas) “can be proud” that it nearly doubled the value of its investment in exiting its former merchant bank affiliate, a top executive said yesterday.

Gowon Bowe, pictured, the BISX-listed institution’s chief financial officer, told Tribune Business it has also gained $3m in undistributed profits and dividends from the sale besides the $7.6m gain on the initial price paid for its 50 percent stake in RoyalFidelity Merchant Bank & Trust.

The $16.449m that Fidelity Bank (Bahamas) will receive from RoyalFidelity’s management-led buyout represents an 85.4 percent increase on the $8.9m that it originally paid for its ownership interest, and Mr Bowe said the difference between the two figures will be paid out to shareholders alongside the regular November dividend.

“Given that we would have earned our shareholders profits over the period, and closed at almost double the purchase price compared to what we originally paid for it, the return on investment for our shareholders is one we can be proud of,” Mr Bowe told this newspaper.

“There was $3m received on top of the sales price. We also got the accumulated profits in the entity [RoyalFidelity] up to the end of September, and got a dividend at the same time. Any profits were distributed to the original shareholders.”

Under the sale terms, any retained earnings (undistributed profits) and due dividends on RoyalFidelity’s books at the time of last Wednesday’s closing were to be split and paid out 50/50 to Fidelity Bank (Bahamas) and Royal Bank of Canada (RBC) to reflect their respective ownership stakes.

Mr Bowe, meanwhile, said the $7.6m “purchase/ sale price” gain will be paid out to Fidelity Bank (Bahamas) investors alongside their regular November dividend, which is due to be declared when the institution issues its 2019 third quarter results.

“There’s no great urgency to accelerate that,” he added of the upcoming shareholder payment. “As it stands we can do it all as part of the same process. It can go out with the November dividend distribution.”

However, Mr Bowe urged shareholders to use their extraordinary capital return to invest in other incomegenerating assets rather

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Tourism eyes New Year ‘bounce back’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Bahamas is on target for a New Year “bounce back” post-Dorian with first quarter stopover tourists up two to four percent compared to 2019’s record, a Cabinet minister revealed yesterday.

Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business he was “encouraged” by projections indicating that the fall-off in hotelbased arrivals to The Bahamas following the category five storm represents a temporary “dip” rather than the start of a long-term trend.

While stopover visitors, the higher-spending portion of The Bahamas’ tourism market, are currently forecast to be down nine percent for the 2019 fourth quarter, Mr D’Aguilar said the decline was less than Abaco

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Cruise line: 25% of passengers in Nassau overnight

By YOURI KEMP

the Fund’s revised estimates were not “unexpected” given the devastation inflicted by the category five storm, but expressed hope that several multi-million dollar investment projects will come to fruition and lead to improved projections within 18 months.

Krystelle RutherfordFerguson, the Bahamas Chamber of Commerce and Employers Confederation’s

A CRUISE line yesterday projected that up to one-quarter of its 250,000 annual passengers will “overnight” in Nassau hotels after making its first voyage to the Bahamian capital.

Francis Riley, Bahamas Paradise Cruise Lines’ senior vice-president of marketing, told Tribune Business it is targeting a “20 percent to 25 percent cruise and stay” among its Grand Classica passengers given that Nassau is larger and more modern than its previous Grand Bahama destination.

With the Grand Classica set to call on Nassau for the “foreseeable future”, Riley said its “cruise and stay” passengers will be a huge economic boost for Nassau. Bahamas Paradise Cruise Lines is now in talks with Atlantis on the mega resort’s potential participation in their programme.

However, Dionisio D’Aguilar, minister of tourism and aviation, describe the Grand Classica ‘s Nassau calls as “a zero sum game” because the capital is gaining at Freeport’s expense. Bahamas Paradise Cruise Lines has diverted the vessel here because of the damage inflicted upon Grand Bahama by Hurricane Dorian.

“It’s a zero sum game,” he told Tribune Business. “I don’t see any increase: It’s just a shifting temporarily of that book of business from Grand Bahama to Nassau.

I’m sure the people in Grand Bahama are anxious for it to come back.”

Oniel Khosa, Bahamas Paradise Cruise Lines’ chief executive, said the Grand Classica will dock in Nassau every two nights for at least 15 calls per month as it sails between the Bahamian capital and Palm Beach, Florida.

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DIONISIO D’AGUILAR

• Stopovers up 2-4% for Q1 2020 • But 9% fall projected for year-end • Airlift capacity in ‘double digit’ rise and Grand Bahama’s share of this market segment pre-Dorian.

Disclosing that landbased visitors were down eight percent year-over-year for September, the minister added that arrivals numbers had rebounded during the final weeks of the month following a 19 percent drop-off in the immediate aftermath of Dorian’s arrival in The Bahamas.

Mr D’Aguilar said the Ministry of Tourism had brought forward its marketing and public relations spending to help counter global perceptions that Dorian had devastated the entire Bahamas, and reinforce the message that 14 of its 16 islands remain open for visitors.

He added that there had

also been a “double digit” increase in incoming airlift to New Providence and the rest of The Bahamas, with both the Ministry and its private sector partners investing significantly to “drive load factors” and ensure there was sufficient visitor demand for the extra seats.

Speaking after the International Monetary Fund (IMF) slashed its growth forecast for The Bahamas by 50 percent in Dorian’s wake, Mr D’Aguilar told Tribune Business: “Certainly, as we enter the first quarter of next year, we see a decrease transforming into a small increase, which is encouraging.”

Based on data from Forward Keys, the Ministry of Tourism’s data partner,

which which tracks and reports inbound visitor data from key markets, the minister said stopover arrivals for the 2020 first quarter which includes much of the key winter season’s peak - are projected to “be up in the low single digits - two, three, four percent” despite facing stiff prior year comparatives.

“I’m quite encouraged by that because, first of all, the decrease has stopped, and second, remember 2018 was a record year, then 2019 was a record year in the first quarter, so to see a slight increase in the 2020 first quarter is quite encouraging.”

Mr D’Aguilar hailed this as a further sign of tourism’s

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IMF slashes Bahamas GDP growth by 50%

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE International Monetary Fund (IMF) yesterday slashed The Bahamas’ 2019 growth forecast by 50 percent, and projected the economy will contract next year, due to Hurricane Dorian.

Unveiling its latest World Economic Outlook report, the Fund said this nation’s gross domestic product (GDP) expansion will fall from 1.8 percent to just 0.9 percent for 2019, with the brunt of the Category Five storm’s economic fall-out to be felt next year.

• Lowers 2019 forecast to 0.9% post-Dorian • And projects 0.6% contraction for 2020 • Chamber chair hopes revision in 18 months It forecast that the Bahamian economy will shrink by 0.6 percent, compared to previous forecasts for 1.7 percent growth, thereby giving the first insight into just how big a short-term setback Dorian has dealt to output and job creation.

Based on Department of Statistics data showing that The Bahamas had a $10.8bn economy at year-end 2018, the IMF’s revised forecasts suggest that some $97.2m

has been shaved off GDP growth estimates for 2019 - a significant sum for a nation this size.

And the 2.3 percent “reversal” for 2020, if it holds true, represents around a $232.4m “swing” on the IMF’s 1.7 percent growth projection that was released in early July together with its Article IV report on The Bahamas.

Cabinet ministers and private sector executives yesterday both agreed that

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Govt unveils ‘fundamental reset’ for public contracts

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government last night unveiled draft legislation representing a “fundamental reset” of its public procurement processes in a bid to save taxpayers millions and aid small businesses.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business the long-awaited Public Procurement Bill 2019 was designed to produce better “value for money” through improved transparency and accountability surrounding the award of government contracts.

Emphasising that it sought “to discourage any ad hoc approach” to the government’s sourcing of

• Long-awaited Procurement Bill released • Minimum 10% of bids must go to MSMEs • Aims to end ‘ad hoc approach’ to bidding

MARLON JOHNSON goods and services, Mr Johnson said the Bill also seeks to make bidding on such contracts more equitable for Bahamian companies and entrepreneurs.

Besides stipulating that

all government agencies must award a minimum 10 percent of their contracts to Bahamian micro, small and medium-sized (MSME) businesses, Mr Johnson said the proposed legislation sets out a process where any aggrieved bidder can appeal a contract award via a newly-created Procurement Award Tribunal.

The draft Bill, which has been released for a 30-day public consultation with interested parties, mandates that all government entities “promptly” publish details of all contract awards, including the name of the winning bidder, the price

and “the selection method” used to choose them.

“I think it’s a fundamental reset of the approach to procurement,” Mr Johnson said of the draft Bill. “Part of the research and development of this Procurement Bill was really to align it with international best practices.

“For us administratively, when you peruse the draft Bill, it involves the creation of a specific Public Procurement Department with the requisite expertise, and to have persons trained in procurement in the significant agencies - the ministries of works, health and education - that typically procure

a large volume of goods and services.

“It’s a significant administrative change for us to ensure we have people that understand what procurement’s about, and how to execute contracts at optimal value, analyse bids and get into the science of procurement. It’s a significant management change.... It tries to discourage any ad hoc approach to the procurement of goods and services.”

Mr Johnson said the Public Procurement Department, whose mission according to the Bill is to “enhance economy, efficiency, transparency and due process in public procurement and the management of government resources”, would be overseen by

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PAGE 2, Wednesday, October 16, 2019

THE TRIBUNE

Cruise industry ‘accelerates’ $455m projects post-Dorian THE cruise industry has pledged to help “broadcast the message that most of The Bahamas is open” after raising $8m for Hurricane Dorian relief and recovery efforts.

The Florida-Caribbean Cruise Association (FCCA), in a statement, said its member lines such as Carnival and Royal Caribbean - who together account for 95 percent of global industry capacity have invested “hundreds of thousands of marketing dollars focused on educating that most of The Bahamas is open”.

Echoing the Ministry of Tourism’s message that the best way to aid post-Dorian recovery is for travellers to visit The Bahamas, the FCCA added that the industry has provided more

than 10m pounds of food and supplies, and 20,000 meals a day, in relief as well as “hundreds of millions of dollars in accelerated investment plans”.

That likely refers to the $100m Carnival cruise port, for which the Government has now signed a Heads of Agreement, plus the ITM Group/Royal Caribbean negotiations to acquire the Grand Lucayan and redevelop Freeport Harbour in a $195m first phase project. Combined, the FCCA said the two projects represented $455m in investment.

“Though we still mourn for all those impacted in Abaco and Grand Bahama, it is humbling and heartwarming to see our member lines’ enormous effort to not only provide the

necessary relief, but also work with those in the destination toward sustainable recovery,” said Michele Paige the FCCA’s president.

“On behalf of FCCA, we are honoured to help support that recovery in any way we can, and currently one of the best things any of us can do is visit The Bahamas, as nearly half of its GDP relies on tourism, and broadcast the message that most of its islands are open and welcoming guests every day.”

The FCCA added that Carnival had filled more than 250 shipping containers with relief supplies, while Royal Caribbean has provided 20,000 meals per day in addition to water, medical supplies, generators and a team of

specially-trained employees and volunteers to assist with logistics and food and beverage efforts.

Bahamas Paradise Cruise Line, it said, has donated 400 pallets of humanitarian aid – along with 300 qualified volunteers and 150 Bahamians – on a single relief mission. Mediterranean Shipping Company (MSC) Group is using its cargo and cruise resources to help, with a focus on providing semi-permanent prefabricated modular housing. Disney Cruise Line and Norwegian Cruise Line Holdings have also been using their cruise ships to deliver supplies and support.

The FCCA added that its members have also moved to relaunch cruise tourism in Dorian’s wake,

noting that its previous research showed the industry had a $405.75m economic impact for The Bahamas during the 20172018 season.

Its economic impact assessment showed the sector generated 9,004 Bahamian jobs paying $155.71m in wage income, with an average cruise ship call producing more than $650,000 in economic benefits, The cruise lines also said they have included The Bahamas in their marketing campaign, Caribbean Is Open/Caribbean for Everyone, which launched in September 2017 following hurricanes Irma and Maria. It has generated more than 5.77bn impressions, while showing improvement in Caribbean

cruise bookings between October 2, 2017, to October 28, 2018.

For initiatives tied to The Bahamas, the FCCA said that as of October 11 these marketing efforts have already generated an audience of 78.656m; 490 media placements; and promoted content with 13,873 clicks, 17,987 engagements and 150,527 video views with 59,357 minutes viewed.

It added that the initiative is on track for more than 200,000 views by the end of October on social media. Other planned initiatives including the cover story in Travel & Cruise, the official magazine of the cruise industry, and sponsored e-mail content in partnership with Cruise Lines International Association (CLIA).

3,000-PASSENGER VESSEL MAKES FIRST NASSAU CALL THE Mein Schiff 1 has made its first voyage to Nassau, arriving on Friday, October 11. The

THE MEIN Schiff 1 docked at Nassau Cruise Port.

ship, which can carry nearly 3,000 passengers, departed from Hamburg, Germany.

Ministry of Tourism and

Aviation and Port Department officials welcomed the captain and crew during a brief ceremony.

CARLA STUART, senior director of cruise and maritime development with Todd Burgman, captain of Mein Schiff 1.

RT, CARLA STUA 2nd left, Todd e erni Burgman, B rt Wright, po d controller, aniff 1 ch S other Mein rs. crew membe

Tourism eyes New Year ‘bounce back’ FROM PAGE ONE

“resilience”, pointing to how quickly the sector had recovered from previous storms, and said: “In all instances we bounced back.

I’m very optimistic; yes, this is a little dip, but we will bounce back in the first quarter of next year.”

Given that tourism, directly and indirectly, accounts for around 50 percent of all Bahamian activity, the projected increase in early 2020 stopover arrivals provides some optimism that this nation may at least mitigate the 0.6 percent economic contraction that the IMF is projecting next year (see other article on Page 1B).

Higher-yielding stopover visitors typically spend around $1,500 per head in The Bahamas, compared to estimates of between $90-$140 for their cruise counterparts, and Mr D’Aguilar said the projected “dip in visitor arrivals” for the remainder of 2019 underscored why the IMF is forecasting a hit to GDP growth.

With the Dorian-ravaged islands of Grand Bahama and Abaco accounting for 11 percent of The Bahamas’ record stopover arrivals growth for the year

to end-August, the minister said it was simply impossible to replace that contribution in the short term.

“Having lost that inventory it’s very hard to replace that,” he told this newspaper. “Obviously, and as a result, this has translated into a reduction of around nine percent for stopover visitor arrivals for the last quarter of 2019; the more lucrative portion of the market.

“Forward Keys is suggesting we will be between eight to ten percent down for the fourth quarter of this year in stopover arrivals, which contrasts with the 13.2 percent increase in stopover arrivals for the first eight months of this year.”

Recalling Dorian’s immediate impact, Mr D’Aguilar added: “Stopover arrivals were down 19 percent for the first two weeks of September but, overall for the month, there was a bounce back in the last part of September.

“Overall, the month of September was down eight percent, which was understandable, as Abaco and Grand Bahama were providing 11 percent of the stopover arrivals. With those two destinations being impacted by the storm it’s reflecting itself in a decrease in stopover arrivals.

“September and October are comparatively slow months. We were expecting it [September] to be up in the high single digits, and in October, but because of the storm that’s resulted in this eight percent decrease.”

The 2019 fourth quarter includes the key Thanksgiving and Christmas holidays, but the nine percent stopover decrease cited by Mr D’Aguilar is likely to largely reflect business destined for Grand Bahama and Abaco rather than any major effect on the Nassau/Paradise Island resort industry and other Family Islands.

Still, to counter such trends, Mr D’Aguilar said: “The Ministry of Tourism has brought up its spending a little bit earlier than it typically would have done; some of its marketing and PR budget to get the word out there that the whole country has not been impacted by the storm.

“Right now, 14 out of 16 destinations are open, and as Abaco and Grand Bahama begin to get some inventory back, we will get the message out there...

There’s also been a double digit increase in air seat capacity, so a lot of marketing dollars are going into driving load factors on these planes. All that increases arrivals into the country.”

THE TRIBUNE

Wednesday, October 16, 2019, PAGE 3

TELETHON PLANNED TO Govt unveils ‘fundamental reset’ for public contracts ASSIST DORIAN RELIEF FROM PAGE ONE

By YOURI KEMP

THE Bahamas Chamber of Commerce is teaming with Rotary Bahamas to stage a November 30 telethon that will raise “an aggressive amount” for Hurricane Dorian relief.

Krystelle RutherfordFerguson, the Chamber’s chairman, said the effort part of the body’s Restore Bahamas initiative, and which it unveiled in the aftermath of Hurricane Joaquin in 2016 - was part of a drive to spread the recovery message more widely.

“The Restore Bahamas initiative is progressing rather well,” she said. “A number of corporate entities have pledged to donate. We are also looking at putting on a telethon in partnership with the Rotary of the Bahamas on November 30.

We are seeking to raise an aggressive amount. We have developed our key messaging points, and are ready to start spreading our Restore Bahamas mission more effectively.”

Mrs Rutherford-Ferguson, meanwhile, said the $10m made available by the government

YOUR

to aid micro, small and medium-sized businesses (MSMEs) recover from Hurricane Dorian can go far if done right.

“I think the question is more whether or not the $10m will be done right.

If you look at using $1m it could have an equal impact.

The more important thing is: Will this $10m be used to spur economic activity on the islands,” she explained.

“We also need to take into consideration the whole assessment process of how we determine who really needs the help or not. For example, we need to look at the insurance adjustment process and what amount of money will be paid by insurance to businesses looking for support from the hurricane relief fund.

“Insured businesses may not need the money from the relief fund, and they may have the money on hand to deal with their own repairs. If that $10m is done properly, and it can produce a trickle down effect, then it may be enough. We just need to choose wisely in what businesses we decide to help in this endeavour.”

the Ministry of Finance and “guide” other ministries/ agencies in developing their own procurement plans.

Besides setting uniform standards for public sector bidding processes and documents, the Bill also charges the Public Procurement Department with developing and managing the proposed electronic procurement system that the government intends to create.

This e-procurement system also involves establishing a supplier registry, and the government yesterday said some 1,500 firms were already registered on its e-tender platform.

The Public Procurement Department will also be in charge of “centralised” bidding for goods and services used throughout the public sector, although awards of $10m or must be approved by Cabinet.

Mr Johnson, meanwhile, told Tribune Business there were specific provisions in the Bill to enhance the public sector’s transparency and accountability to the Bahamian people by

CHOICE FOR THE FAMILY WWW.FACEBOOK.COM/JOYFM1019

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT

2013 COM/bnk/0088

COMMERCIAL DIVISION IN THE MATTER OF THE COMPANIES ACT Ch. 308 Statute Laws of The Bahamas, 2009 Edition AND IN THE MATTER OF THE BANKS AND TRUST COMPANIES REGULATION ACT Ch. 316 Statute Laws of The Bahamas, 2009 Edition AND IN THE MATTER OF RURAL INTERNATIONAL BANK LIMITED

NOTICE NOTICE is hereby given that a meeting of creditors in the liquidation of Rural International Bank Limited (In Liquidation) (“RIBL”) will be held at the law offices of McKinney, Bancroft & Hughes, Mareva House, 4 George Street, Nassau, Bahamas, on Wednesday, the 6th day of November, A.D., 2019, at 10:30 a.m.

The meeting is being convened pursuant to Order 8, rule 4 of the Companies Liquidation Rules, 2012 for the purpose of reporting on the status of the liquidation and dealing with such other matters or resolutions as the Joint Official Liquidators think fit. A copy of the Agenda may be requested from the Joint Official Liquidators.

To entitle a creditor to attend such meeting, he/she/it must (i) have submitted a proof of debt which has not been rejected or (ii) otherwise appear to the Joint Official Liquidators to be a creditor of RIBL. To entitle a creditor to vote at such meeting, he/she/it must have submitted a proof of debt which has been admitted. At the meeting, creditors will be entitled to vote on the basis of one vote for each dollar of their admitted creditor claim.

A form of proxy may be requested from the Joint Official Liquidators. It is essential that the proxy is signed by the person (or, if a company, by its authorized representatives) who is the admitted creditor of RIBL. Confirmation of attendance and/or proxies to be used at the meeting must be lodged with the Joint Official Liquidators by email or facsimile not later than 4:00 p.m. on the 4th day of November, A.D., 2019.

Dated the 9th day of October, A.D., 2019

Maria M. Férère Alison J. Treco Joint Official Liquidators FT Consultants Ltd., Goodman’s Bay Corporate Centre, 1st Floor, West Bay Street, P.O. Box N-3932, Nassau, Bahamas, Telephone: (242) 328-7131; Facsimile: (242) 328-7129, Email addresses: mferere@ftconsultants.net and atreco@ftconsultants.net.

mandating the publication of regular reports on its procurement activities.

“Throughout all of this is the need to keep pristine records,” he said. “There are requirements for the publication of awards and the publication of annual reports. It will be incumbent on us as public servants to ensure records are kept to allow for periodic reports and annual reports to keep the public informed of our procurement activities.”

While procurement officers were already in place at several ministries, the acting financial secretary said several may need to be “upskilled and retrained” to meet the demands of the new legislation. He added that it represented an opportunity for civil servants to gain promotion as the government targets “a model approach to procurement”.

Government contracts account for a significant percentage of economic activity in small states such as The Bahamas, and can be a valuable tool in encouraging the development and growth of small and mediumsized Bahamian businesses and local ownership

if used correctly.

However, public procurement has increasingly become perceived as a murky, closed process that is often subject to arbitrary influences such as the awarding of contracts to family members, political cronies, friends, constituents and such like.

In many instances, under both PLP and FNM governments, this has resulted in contracts failing to be awarded to the best-qualified bidder.

The consequences for the Bahamian people are poor value-for-money, inefficiencies and frequent cost overruns that have been a major contributing factor in building the nine-figure annual deficits and $8bnplus national debt this nation now faces.

While the Public Procurement Bill 2019 is not a cure-all by itself, it seeks to address several concerns and potential flaws in the current set-up, such as setting out the situations in which processes such as selective bidding, restrictive bidding and limited bidding techniques can be used.

It sets out how bids are to be solicited and the criteria for evaluating them, as well as how offers are to be opened - electronically or otherwise - in the presence of all bidders. Bids from multiple entities with the same ownership are barred, and the Bill sets out the process for disqualifying bidders and how to deal with “unsatisfactory bids”.

Mr Johnson told Tribune Business that the use of e-tendering, and the electronic supplier registry, would enable the government to “cast a wide net” in its search for goods and services suppliers.

Arguing that this system will be more equitable, and create a level playing field for all potential bidders on a contract, he added that companies will be able obtain all necessary tender details online.

“It opens up the field to make people aware that

these bids are on offer,” Mr Johnson said of the e-procurement system. “That alone will help to drive competition and allow more opportunity. It allows better value for money, as there is more potential competition to bid on jobs, and that will optimise price and value.”

The Public Procurement Bill’s section 42 also mandates that “every procuring entity allocate not less than ten percent of its overall procurements to MSMEs in accordance with rules issued by” the Public Procurement Department - something that Mr Johnson said was in line with international best practices.

The government, in a statement, said its planned modernisation of public procurement will enable Bahamians to know who the winners of all contracts are “in a timely and transparent manner”.

“The reform of public procurement represents a sea-change in how government conducts business, and the country will benefit as a result, said K Peter Turnquest, deputy prime minister and minister of finance.

“Once again, this government is keeping its promise to ensure greater transparency and accountability in public affairs. Unlike others who only promised procurement reform in the past, the Minnis-led government is actually delivering.”

He added: “We already have over 1,500 vendors registered on the e-tender platform. Registration is open and free for all interested vendors. On this platform, all vendors are alerted automatically when there are new opportunities to bid on projects.

“This has already brought an unprecedented level of transparency, for in the past it could be difficult for potential bidders to access information about opportunities. The process will be further strengthened once the final Bill is enacted.”

PAGE 4, Wednesday, October 16, 2019 LEGAL NOTICE

NOTICE In the Estate of CARL ERRINGTON KNOWLES late of Golden Gates Subdivision #1 in the Southern District of the Island of New Providence, deceased.

NOTICE is hereby given that all persons having any claim or demand against or interest in the above Estate should send same duly certified in writing to the undersigned on or before 16th November, 2019 after which date the Executors will proceed to distribute the assets of the Estate having regard only to the claims, demands or interests of which they shall then have had notice.

McKINNEY BANCROFT & HUGHES Attorneys for Executors P.O. Box N-3937 Nassau, The Bahamas

THE TRIBUNE

IMF slashes Bahamas GDP growth by 50% FROM PAGE ONE (BCCEC) chairman, told Tribune Business: “While we understand the difference in projections, we also understand its based on the fall-out in the tourism sector as a result of Hurricane Dorian.

“We also appreciate there are numerous multi-million dollar investment projects in the works in The Bahamas, which will impact GDP in the medium term. We expect an improvement in the projections in the next 12-18 months.

“There’s a lot of restoration work to be done and we remain optimistic the projections will improve as the country goes about restoring the second and third largest economies in The Bahamas.”

Mrs Rutherford-Ferguson was likely referring to the $100m Carnival cruise port in Grand Bahama, for which a Heads of Agreement was signed recently, and the ITM Group/Royal Caribbean joint venture that plans to acquire the Grand Lucayan and transform Freeport Harbour in a $195m first phase development.

K Peter Turnquest, deputy prime minister, added that reinsurance inflows and construction activities associated with post-Dorian restoration may also mitigate some of the impact the IMF is projecting for GDP growth.

“Some contraction is

Cruise line: 25% of passengers in Nassau overnight FROM PAGE ONE

He added that it was too early to determine the economic and financial impact from changing the port of call, but said coming to Nassau would bring more of a city experience

Fidelity ‘can be proud’ of return on affiliate sale FROM PAGE ONE than treat it as a Christmas “bonus or windfall” and spend it.

“What is important is the shareholders appreciate this is the present value of future profits that they have now foregone,” he explained of the dividend payout. “The strong recommendation is to seek appropriate investment opportunities so that money can be deployed into income generating assets.

“Yes, it’s a windfall, but it’s

not unexpected given the severity of the destruction to Abaco tourism and business infrastructure, as well as Grand Bahama to a lesser extent, save that the rendering of the US terminal [at the airport] as useless leaves that sector also seriously crippled,” he told Tribune Business.

“Fortunately, the cruise business to Grand Bahama has been restored and they are now receiving cruise passengers at new sites, which based upon feedback has been well received. The return of this business, as well as the day cruise passengers, bodes well for the recovery there.

“Add to that the reconfirmation of the investment projects at the new cruise port and hotels, we should see some stabilisation by year-end,” Mr Turnquest continued. “Abaco may be a bit more of a challenge due to the severity of damage to the economic infrastructure.

“That said, the reinvestment in these businesses from insurance provisions and private sector investments will provide some boost. The fall-off from Nassau arrivals has already stabilised.”

John Rolle, the Central Bank governor, last week told Tribune Business that the IMF’s revised GDP growth projections were likely to be “conservative”, indicating that The Bahamas could outperform its estimates for both 2019 and 2020.

The Fund’s projections match almost exactly the Central Bank’s own forecast, which also suggested the possibility of a small Bahamian economic contraction next year as reconstruction began in earnest. However, the Bahamian institution said this could be mitigated - and the country even enjoy modest growth - if Abaco’s vacation rental market could be directed to other islands.

The Central Bank, in a report released a fortnight ago, forecast that The Bahamas will “resume healthy economic growth” in 2021 following a potential Dorian-induced contraction next year as rebuilding gathers pace.

In line with the IMF it suggested that this nation’s gross domestic product (GDP) would still expand in 2019 - albeit a much lower pace than the previous 1.8 percent - as winter season tourism gains had already been locked-in prior to the category five storm’s arrival.

With its analysis suggesting Dorian’s impact will likely be a short-term blip if any further hurricanes are avoided, the Central Bank said expectations of an earlier return for Grand Bahama’s economy underpinned its 2021 assessment - especially given the “lengthier absence of commerce” on Abaco and the surrounding cays. However, tourism’s recovery may go beyond 2020.

Abaco’s loss will be felt most dearly in the vacation rental market, as the island accounted for 17.5 percent - or almost one in five - listed bookings during the eight months to end-August 2019. Together with Grand Bahama, the two islands have received more than one-quarter or 25.6 percent of all bookings in that market segment prior to Dorian’s arrival.

Yet the Central Bank added: “Two factors that could mitigate the depth and duration of the economic slowdown are the size of the available pool of construction labour to expedite the rebuilding process, and the degree of substitutability of tourism capacity elsewhere in The Bahamas for the facilities taken offline in Abaco and Grand Bahama.

“Available construction skills speak to the speed at which the housing and commercial plant will be returned to use.

In the meantime, underused tourism capacity in New Providence and other Family Islands could provide some offsetting relief to displaced visitor demand.

“For vacation rentals, in particular, the current average occupancy rates approaching 50 percent provides space for nearterm business expansion without required growth in the physical plant, providing the marketing and other support infrastructure are aligned.”

for passengers as opposed to Grand Bahama’s beaches.

Asked how long he expects the Grand Classica to call on Nassau, Mr Khosa replied: “We don’t know how much longer it will take for Grand Bahama to reach a situation where they can sustain two cruise ships, so we don’t have a sense of timing as yet, but certainly I see us coming into Nassau for the foreseeable future.”

He added that the cruise line wanted its passengers to stay at at all the major hotels that are part of the Nassau/Paradise Island Promotion Board, and said it has started marketing the Melia, Comfort Suites, and Baha Mar’s SLS Lux and the Grand Hyatt so visitors can “choose their destination”.

Fred Lounsberry, the Nassau/Paradise Island Promotion Board’s chief executive, said

this latest cruise option will have a big impact for Nassau given that it will bring about 250,000 passengers per year.

He said: “I think it, for the most part, will be incremental business. They are looking at about 250,000 passengers a year and they cruise out of Palm Beach. I think the very unique thing is that you can cruise over and stay for two, four or six nights and cruise back.”

windfall representing future profits [from RoyalFidelity], so the best way to maintain those future profits is to invest the windfall in equallysuccessful income generating assets.

“That would be our fiduciary recommendation.

As good stewards, we’ve returned the money to you, and while you’re happy don’t let Christmas distract you from your investment goals.

While you may treat it as a Christmas bonus, you should look at it as profits from the future that you want to reinvest.”

Mr Bowe said Fidelity Bank (Bahamas) would “love to hit that target” of $1bn in assets on its balance sheet, having grown to $700m to-date, but had set “no timeline” for doing so as it prioritised sustainable growth.

“It’s about keeping your shoulder to the wheel, working on the things you do well and want to improve on, and balancing risk with reward,” he told Tribune Business.

“It’s all engines go, and we will continue to do the things we’re doing.

“We believe we have started on the path leading

to prosperity, and will continue on that path to grow the bank organically into a much larger institution. It’s not growth for the sake of growth.

It’s sustainable growth that’s palatable.

“Sometimes that means a reduction in the balance sheet, sometimes that leads to an expansion in the balance sheet. It’s more about earning a return on assets, and a return on equity in the mid-20 percents is what we want to continue doing. The primary focus is a sustainable return on equity and positive return on assets.”

THE TRIBUNE

Wednesday, October 16, 2019, PAGE 5

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

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Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

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• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115

PAGE 6, Wednesday, October 16, 2019

THE TRIBUNE

Solid company earnings power United Airlines posts $1bn profit broad rally for US stocks

By ALEX VEIGA AND DAMIAN J TROISE Associated Press STOCKS notched solid gains on Wall Street yesterday as investors welcomed surprisingly good quarterly results from some of the nation’s biggest companies.

Strong earnings from UnitedHealth Group, JPMorgan Chase and other companies helped power the market’s broad gains, erasing modest losses from a day earlier.

Investors are looking to the wave of quarterly report cards due out over the next few weeks to give them a clearer picture of what impact the trade war between the US and China is having on corporate profits and the broader economy.

The encouraging earnings reports came with a spate of surprisingly good forecasts for the rest of the year, which helped ease concerns about a slowdown due to the costly trade conflict.

“That was what everybody was afraid of,” said JJ Kinahan, chief market strategist for TD Ameritrade.

“Instead, we got ‘no, the future looks good.’”

The S&P 500 index climbed 29.53 points, or 1%, to 2,995.68. The benchmark index is now 1% below its all-time high set in July.

The Dow Jones Industrial Average rose 237.44

points, or 0.9%, to 27,024.80.

The Nasdaq gained 100.06 points, or 1.2%, to 8,148.71.

Small-company stocks also bounced back after leading the decline a day earlier. The Russell 2000 index picked up 17.87 points, or 1.2%, to 1,523.30.

Bond prices fell. The yield on the ten-year Treasury rose to 1.77% from 1.75% late Friday. Bond markets were closed on Monday for Columbus Day. Technology, health care, financial and communication services stocks drove much of yesterday’s broad rally, which gave the market its fourth gain in five days.

Utilities and makers of consumer goods fell as investors regained an appetite for more risk. The sectors are considered safe-play holdings and usually lag the market when investors are more confident.

The latest batch of company earnings reports gave investors a confidence boost that, for the moment, sidelined concerns about whether Washington and Beijing will be able to work out a trade deal.

On Friday, the US agreed to suspend a planned hike in tariffs on $250bn of Chinese goods that had been set to kick in yesterday. Beijing, meanwhile, agreed to buy $40bn to $50bn in US farm products.

The US did not, however,

cancel plans for more tariffs in December and the sticking points of intellectual property and trade secrets still hang over the dispute.

“There really isn’t any pen to paper, it’s just people talking and nothing definite,” Kinahan said. “The earnings are definite.”

UnitedHealth Group jumped 8.2%, leading all S&P 500 stocks, after the company hiked its 2019 profit forecast following third-quarter results that beat Wall Street’s expectations.

Traders also bid up shares in other health insurers.

Anthem gained 6%, Cigna added 5.7% and Humana rose 4.8%.

Johnson & Johnson gained 1.6% after it raised its profit forecast for the year following solid third quarter results.

JPMorgan Chase rose 3% after the bank beat Wall Street’s third quarter profit forecasts. Citigroup also delivered solid results, lifting its shares 1.4%.

Other major banks, including Goldman Sachs, Wells Fargo reported mixed results, but their shares still rose. Goldman Sachs added 0.3%, while Wells Fargo gained 1.7%.

Investors have been worried that corporate profits could be hampered by the US trade disputes with China and growing

economic uncertainty. Corporate earnings are expected to contract by nearly 5% during the third quarter, according to FactSet. That forecast could soften as more companies report results for the third quarter. Similar forecasts were made ahead of both the first and second quarter reporting periods and companies in the S&P 500 managed to deliver only a modest contraction each time.

Investors are in for a busy few days for corporate earnings, including Bank of America, railroad giant CSX, Netflix and IBM on Wednesday.

Benchmark crude oil fell 78 cents to settle at $52.81 a barrel. Brent crude oil, the international standard, dropped 61 cents to close at $58.74 a barrel. Wholesale gasoline was unchanged at $1.61 per gallon. Heating oil declined one cent to $1.91 per gallon. Natural gas rose six cents to $2.34 per 1,000 cubic feet.

Gold fell $14.10 to $1,477.60 per ounce, silver fell 32 cents to $17.31 per ounce and copper fell two cents to $2.60 per pound.

The dollar rose to 108.84 Japanese yen from 108.37 yen on Monday. The euro strengthened to $1.1035 from $1.1031.

Major stock indexes in Europe closed mostly higher.

NOTICE

NOTICE

NOTICE is hereby given that GINA GUSTAVE of Cordeau Ave, Off East Street South, P.O.Box SS19058 Nassau, 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 9th day of October, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE is hereby given that CARLOS PHILIUS of Spanish Wells, Eleuthera, 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 9th day of October, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

TUESDAY, 15 OCTOBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,171.73 | CHG: 0.87 | %CHG: 0.04 | YTD: 62.28 | YTD%: 2.95 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.40 2.81 3.50 10.18 7.51 16.50 9.30 3.64 14.20

52WK LOW 3.50 20.91 4.90 4.46 1.01 0.22 2.00 9.25 6.15 3.60 6.75 2.35 1.76 7.51 6.10 12.10 6.20 3.01 13.00

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

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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

52WK HI 2.26 4.31 2.07 191.61 158.55 1.65 1.82 1.74 1.21 8.01 9.60 6.83 11.39 12.30 10.68 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.58 1.69 1.66 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.51 11.06 6.16 3.98 7.26 3.25 3.50 10.65 7.51 16.50 9.27 3.54 14.20

CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 4.51 11.06 6.16 3.98 7.26 3.16 3.50 10.50 7.51 16.50 9.27 3.54 14.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.09 0.00 -0.15 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

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

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

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

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

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

VOLUME

27,500

VOLUME

NAV 2.26 4.29 2.07 191.61 158.33 1.65 1.82 1.74 1.19 8.01 9.60 6.83 11.30 12.30 10.68 9.92 8.68 11.38

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

DIV$ 0.170 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 17.2 18.7 N/M 16.0 N/M N/M -10.3 15.3 13.7 21.6 51.9 31.0 7.5 16.3 10.3 20.2 9.9 17.4 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.15% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 3.02% 0.00% 13.73% 1.71% 3.12% 3.20% 3.27% 2.16% 3.39% 4.30% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

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

YTD% 12 MTH% 2.46% 3.85% 1.61% 3.28% 1.78% 2.75% 3.85% 6.28% 7.12% 2.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-Aug-2019 31-Aug-2019 30-Aug-2019 30-Jun-2019 30-Jun-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 31-Aug-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

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

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

on summer travel DALLAS Associated Press

CHEAPER jet fuel and slightly higher fares helped United Airlines boost third-quarter profit 23% to $1bn.

The results released yesterday were better than Wall Street expected, and United raised its forecast of full-year profit.

United indicated that demand for leisure and business travel is holding up well despite concern about the slowing global economy, although there are pockets of weakness such as China.

The worldwide grounding of the Boeing 737 Max after two fatal crashes led to thousands of canceled flights and lost revenue for United, although the company did not provide figures. The airline has removed the Max from its schedule until Jan 6 and dropped nearly 8,300 flights between October and early January.

Investors worry that when the grounded planes return to United, Southwest and American, there will be more seats for sale and fares will drop. Cowen analyst Helane Becker said rising capacity — not all of it from the Max — will cause United’s revenue per mile to decline next year.

United didn’t forecast that far ahead, but it said revenue per seat will be flat to up 2% in the fourth quarter.

A few years ago, United lagged its closest competitors by many financial and operational measures. It has since reduced delays and cancellations and boosted margins above those at American Airlines, although it’s still behind Delta Air Lines.

Since early last year, United has grown aggressively in Chicago, Denver and other places, adding flights between hub airports and smaller cities.

Rapid growth often spooks investors. Analysts at Fitch Ratings were worried about United’s strategy, but now they say the results have been positive, leading

to above-average increases in revenue per mile and several quarters of improving margins.

United’s third-quarter profit compared with $833m a year earlier.

Excluding one-time gains and losses, the company said adjusted profit was $4.07 per share, compared with an average forecast of $3.94 from 17 analysts surveyed by Zacks Investment Research.

Revenue was slightly below expectations, at $11.38bn.

The airline blamed a drop in travel to Hong Kong, where antigovernment protests have at times disrupted operations at the airport.

United doesn’t provide a figure for the average fare, but passenger revenue for each seat flown one mile — a gauge of fares and fees — rose 1.7%.

Meanwhile, the company saved $276m, or 11%, on its fuel bill thanks to a modest decline in average prices since the same period last year.

United said it now expects to earn between $11.25 and $12.25 a share for all of 2019. At the midpoint, that is an increase of 50 cents from United’s last estimate in July.

Last week, Delta Air Lines reported record traffic and revenue for the summer but tripped over a forecast of sharply rising costs due to hiring and pay raises.

United’s third-quarter costs per seat rose at a slower pace than Delta’s but were still higher than the 1%-2% range that United had predicted. United is talking to pilots about a new contract, which could further increase spending when they reach a deal.

Shares of United Airlines Holdings Inc. closed at $87.88, up 91 cents. In late trading shortly after the release of financial results, the shares were up another 51 cents to $88.39.

At the closing price, they had gained 5% in 2019 and about 8% in the last 12 months.

NOTICE

NOTICE is hereby given that WILGENPS JEAN LOUIS of Palm Breeze Drive, P.O.Box CR55469 Nassau, 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 9th day of October, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that CHARLENE NIVONE of Village Alley off Hospital Lane, P.O.Box N10326 Nassau, 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 9th day of October, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that TIGEDEON GEDEON of, Cherokee Road, Abaco, 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 the16thday of October, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Wednesday, October 16, 2019, PAGE 7

Trump’s sanctions won’t bite a vulnerable Turkish economy FRANKFURT Associated Press THE sanctions the US announced against Turkey this week over its offensive in Syria fall well short of doing serious damage to an economy still healing from a recession and currency collapse.

President Donald Trump could take far tougher action that would deter foreign investment and credit that Turkey badly needs.

But doing so could backfire in a number of ways, and it’s not clear he really wants to.

Trump has said he could “destroy and obliterate” the economy of Turkey and called on the country to rein in its Syria offensive.

His warning came after both Democrats and Republicans questioned Trump’s decision to give Turkey a green light for a military incursion against Kurdish fighters who were US allies in Syria.

However, the US sanctions announced on Monday did not match the rhetoric; analysts and financial investors saw them as minimal.

The measures were limited to the Turkish defense and energy ministries and three Turkish officials, the ministers of defense, energy and interior security. They block transactions involving any assets they may have in the US financial system and bar US residents and businesses from dealing with them. The US also raised tariffs on Turkish steel exports from 25% back to 50%, where they were in May, and suspended talks over a US-Turkey trade deal.

Given the dominant role that US financial institutions and the dollar play in world commerce, such measures fall far short of what the US could do by targeting Turkey’s banks

TURKEY’s President Recep Tayyip Erdogan attends the VII Summit of The Cooperation Council of Turkic Speaking States, in Baku, Azerbaijan, yesterday. and their links to the global financial system. Turkey’s currency and stock market both rose yesterday as investors breathed a sigh of relief that harsher measures were not imposed.

Timothy Ash, emerging market strategist at Bluebay Asset Management, called the sanctions “minimal” and “window dressing”, noting that the trade deal was years off in any case.

The muted initial response from investors “flies in the face of President Trump’s threat,” said Jason Tuvey, senior emerging markets economist at Capital Economics in London.

One risk from the current sanctions, Tuvey said, is that they may be a prelude to tougher ones, given support in Congress for action against Turkey.

And even though the direct impact on the economy may remain slight,

the bigger risk could be on investor and financial market confidence in the country. The imposition of sanctions has re-started talk of Turkey possibly putting limits on the flow of money to prevent it from being taken out of the country. That could support the country’s currency but deter foreign investors.

“If Turkish financial markets do come under fresh downward pressure, the resulting tightening of financial conditions will stifle the recovery from last year’s recession. The impact would probably be a lot more severe if sanctions are expanded to include Turkey’s financial sector,” Tuvey wrote in a research note.

Trump’s move against Turkey does not come close to sanctions against Iran, where the US persuaded the international financial messaging system SWIFT to

cut off Iranian banks. The US re-imposed the sanctions as it withdrew from a deal limiting Iran’s nuclear programs.

That said, Turkey’s economy remains vulnerable despite returning to economic growth after a recession and currency plunge in 2018. Its currency, the lira, has stabilised and a strong tourism season this summer helped reduce the net outflow of money and investment.

The country is still plagued by double-digit inflation and the International Monetary Fund said last month that economic stabilisation “remains fragile”. Many companies owe money in foreign currency, leaving them vulnerable to another drop in the lira.

German automaker Volkswagen said yesterday it was postponing a decision on where to locate a new production plant. German

media have reported that Izmir in western Turkey was the leading candidate over sites in Bulgaria and Serbia.

Josef Braml, head of the Americas program at the German Council on Foreign Relations, said that Trump appears to be trying to get ahead of calls for sanctions from Congress amid resentment among security officials over Trump’s decision to let Turkey invade a strip of northern Syria to create a buffer zone. The military action is aimed at Kurdish fighters whom Turkey considers terrorists but who have been US allies fighting Islamic State.

Braml said that much may depend on what kind of understanding Trump reached with President Recep Tayyip Erdogan before announcing he would withdraw US troops from the area, giving Erdogan a free hand. “He didn’t sell the Kurds for nothing,” Braml said.

Tougher sanctions risk unintended consequences, such as pushing Turkey closer to China. Trump did not impose sanctions on Turkey even after Erdogan last month defied the US over buying oil and gas from Iran.

Trump appears to want to appear tough on Turkey to pre-empt questions from Congress and the US security services over the implications of his decision to let Turkey attack the Kurds in Syria, Braml said.

“It’s always better, if you have a revolt against you, to get ahead of it,” he said.

“You appear as the strong man who is doing sanctions, otherwise Congress would force him to do something.”

The open question, Braml added, is “whether he’s really serious about using the full arsenal - if it’s just window dressing or is he more serious.”

JUSTICES SEEM LIKELY TO UPHOLD PUERTO RICO OVERSIGHT BOARD WASHINGTON Associated Press THE Supreme Court seems likely to leave in place the oversight board established by Congress to help Puerto Rico out of a devastating financial crisis that was deepened by Hurricane Maria in 2017.

The justices voiced skepticism yesterday about a constitutional challenge to the oversight board’s composition that could affect more than $100bn in debt and the island’s economic future. Hedge funds that invested in Puerto Rican bonds are leading the case against the board.

A lower court ruled in February that board members were appointed in violation of the Constitution because they were not confirmed by the Senate.

The president selects the board’s seven voting members. They and one other non-voting member chosen

by Puerto Rico’s governor approve budgets and fiscal plans drawn up by the island’s government. The board also handles bankruptcy-like cases that allow the island to restructure its debts.

Justice Samuel Alito asked facetiously if it’s “excessively cynical” to think that the hedge funds were more interested in the money at stake than the constitutional challenge they are mounting.

The oversight board and the Trump administration appealed the ruling by the 1st US Circuit Court of Appeals in Boston. There appeared to be substantial support for their arguments that the board’s makeup is not controlled by the Constitution’s provision on appointments, but by a different provision giving Congress significant control over US territories, of which Puerto Rico is one.

PAGE 8, Wednesday, October 16, 2019

THE TRIBUNE

EU: Brexit deal in sight but UK must still do more LUXEMBOURG Associated Press EUROPEAN Union officials were hoping yesterday that — after more than three years of false starts and sudden reversals — a Brexit deal with Britain might be sketched out within hours.

The bloc said that it might be possible to strike a divorce deal by tomorrow’s EU leaders’ summit, which comes just two weeks before the UK’s scheduled departure date of Oct 31. One major proviso: The British government must make more compromises to seal an agreement in the coming hours.

Britain and the EU have been here before — within sight of a deal only to see it dashed — but a surge in the British pound yesterday indicated hope that this time could be different. The currency rose against the dollar to its highest level in months.

Even though many questions remain, diplomats made it clear that both sides were within touching distance of a deal for the first time since a UK withdrawal plan fell apart in the British House of Commons in March.

Martin Schirdewan, a German member of the European Parliament’s Brexit Steering Group, said an agreement is “now within our grasp” following a breakthrough in negotiations.

This week’s EU leaders’ meeting — the last scheduled summit before the Brexit deadline — was long considered the last opportunity to approve a divorce agreement. British Prime Minister Boris Johnson insists his country will leave at the end of the month with or without an agreement, although UK lawmakers

are determined to push for another delay rather than risk a chaotic no-deal Brexit.

Michel Barnier, the EU’s chief Brexit negotiator, said at a meeting of the bloc’s ministers in Luxembourg yesterday that the main challenge now is to turn the new British proposals on the complex Irish border issue into something legally binding. EU member Ireland has a land border with the UK’s Northern Ireland, and both want to keep goods and people flowing freely across the currently invisible frontier.

A frictionless border underpins both the local economy and the 1998 peace accord that ended decades of Catholic-Protestant violence in Northern Ireland.

But once Britain exits, that border will turn into an external EU frontier that the bloc wants to keep secure.

Barnier wants a clear answer by this morning, so EU capitals can prepare for the bloc’s two-day summit that begins tomorrow. “It is still possible this week,” said Barnier.

The big question is how far Johnson’s government is prepared to budge on its insistence that the UK, including Northern Ireland, must leave the European Union’s customs union — something that would require checks on goods passing between the UK and the EU, including on the island of Ireland.

The British government has given away little detail of the proposals it has made on the issue; even government ministers have not been told specifics. In broad terms, the UK is proposing that Northern Ireland — but not the rest of the UK — continue to follow EU customs rules and tariffs after Brexit in order to remove the need for

EUROPEAN Union chief Brexit negotiator Michel Barnier, right, shakes hands with Irish Foreign Minister Simon Coveney during a meeting of EU General Affairs ministers, Article 50, at the European Convention Center in Luxembourg yesterday. European Union chief Brexit negotiator Michel Barnier is in Luxembourg yesterday to brief ministers on the state of play for Brexit. Photo: Virginia Mayo/AP border checks.

But that sounds like a customs union in all but name — and would mean new checks or tariffs on some goods moving between Northern Ireland and the rest of the UK. An EU official said Barnier told a teleconference of some lawmakers that the Irish Sea would largely become the customs border between the EU and the UK. That would avoid having a visible land border on the island of Ireland between the two. The official spoke on condition of anonymity because the negotiations were ongoing.

But Northern Ireland’s Democratic Unionist Party, the party that props up Johnson’s minority government, strongly opposes any measures that could loosen the bonds between Northern Ireland and the rest of the UK. After DUP leaders met with Johnson late yesterday at the prime minister’s office, the party said negotiations continued but “it would be fair to indicate gaps remain and further work is required”.

Brexit supporters are also wary that maintaining any kind of customs union with the EU will tie the UK to

the bloc’s regulations and limit its ability to strike new trade deals around the world — undermining what were supposed to be some of the key benefits of a withdrawal.

The customs proposals on the table also appear similar to those put forward by former Prime Minister Theresa May. Opposition from pro-Brexit lawmakers, including Johnson, led to those being rejected by Parliament three times.

In public, Johnson has not changed his tune. But the British leader was working hard behind the scenes to secure a deal that would allow him to fulfil his vow to

take the UK out of the bloc.

And some of the staunchest Brexit-backers appeared willing to give him a chance.

“I am optimistic that it is possible for us to reach a tolerable deal that I will be able to vote for,” said pro-Brexit Conservative lawmaker Steve Baker.

Yesterday, Johnson called French President Emmanuel Macron — one of the EU leaders most skeptical about Britain’s intentions — to discuss where elements of a compromise could be found.

Johnson’s spokesman, James Slack, called the conversation “constructive”.