10252018 BUSINESS

business@tribunemedia.net

THURSDAY, OCTOBER 25, 2018

$4.99

$5.03

Lucayan chairman targets $6-7m Hutchison ‘recovery’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Grand Lucayan’s chairman yesterday revealed he plans to “go after” Hutchison Whampoa to recover the $6-$7m Memories lease guarantee payment, as he hit back at the PLP’s leader.

Michael Scott, blasting Philip Davis’s criticisms over the upcoming $2-$3m staff severance payouts, told Tribune Business that the Cat Island MP was “lost in space” and suffering from “Trumpian hypocrisy of the worst kind”.

He branded the Official Opposition leader’s comments as a “reverse engineering of the historical record”, suggesting it

* Aims to ‘go after’ lease ‘overpayment’ * Blasts PLP leader as ‘lost in space’ * Accuses ex-govt of ‘appeasement’

MICHAEL SCOTT was hypocritical for him to attack the payouts given that it, too, assumed responsibility for severance payments to staff of the former Grand Lucayan

OECD’s permanent residency targeting ‘not really of concern’

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Deputy Prime Minister yesterday said the OECD’s targeting of the Bahamian economic permanent residency regime was “not really of concern” because it is not used for tax purposes.

K Peter Turnquest, pictured, while agreeing it was “unfortunate” that this nation’s major investment product had been singled out by the Organisation for Economic Co-Operation and Development (OECD) as potentially undermining the fight against global

tax evasion, said a strict regulatory regime prevented it being exploited by “undesirables”.

“It’s not an issue that is peculiar to us. It is a global issue,” Mr Turnquest said. “They [the OECD] have issues within the European Union with respect to this. They are sensitising

SEE PAGE 8

Judge dismisses Margaritaville war

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

MARGARITAVILLE’S Bahamian franchisee yesterday suffered a major reversal in its bid to block the brand’s $250m tie-up with The Pointe when a US judge dismissed its lawsuit.

Judge William Dimitrouleas, sitting in the south Florida federal court, ruled that Boss Investments, owner of the Margaritaville-flagged restaurant on Paradise Island, had failed to prove the court had

MARGARITAVILLE Paradise Isl jurisdiction over defendants that included several of the brand’s US companies.

He ordered that any imminent legal filings and motions be “denied as moot”, dealing a significant blow to Boss Investments and its principals, Peter Maury and

SEE PAGE 5

casino operator, Isle of Capri, when in government.

Pointing out that the Christie administration also used taxpayer dollars to pay casino workers their salaries and benefits under the subsequent operator, Treasure Bay, Mr Scott charged that such “financial appeasement” had led directly to the latest problems with Hutchison Whampoa.

With the Hong Kongbased conglomerate “used to getting its own way”, and “indifferent” to the Grand Lucayan’s plight and that of Freeport’s wider economy, the hotel’s chairman said

the Minnis administration simply could not afford “to play roulette with the welfare of the employees” by leaving the former owner to determine their fate.

“Having completed the sale, I’m looking at going back after them [Hutchison Whampoa] for recovery of that $6m-$7m overpayment on the Memories support or guarantee agreement,” Mr Scott disclosed to Tribune Business, hinting at the possibility of legal action.

This newspaper previously revealed that as part

SEE PAGE 9

$5.05

$5.05

Govt urged: Avoid ‘rapid fire tax increase’ with NHI

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government must avoid “rapid fire tax increases” that undermine economic growth, a top accountant warned yesterday, suggesting it may have to “phase-in” its two percent NHI payroll tax.

Gowon Bowe, pictured, the Bahamas Institute of Chartered Accountants (BICA) president, told Tribune Business that the Government cannot be “too aggressive” with the roll-out of its revised $100m National Health Insurance (NHI) model otherwise it will jeopardise still-fragile economic expansion.

With consumers and the private sector still adjusting to the 12 percent VAT hike, Mr Bowe warned the Government against over-burdening the economy with additional taxes to fund an NHI

scheme that aims to provide Universal Health Coverage (UHC) for all Bahamians.

He urged the Minnis administration not “take advantage” of improved GDP growth forecasts before they materialised, adding: “We want the tide to rise, not to open the door so the water flows out.”

Describing the restructured scheme’s unveiling, and 45-day consultation period, as “a weather balloon” designed to test the public’s “appetite” for NHI, Mr Bowe urged the private sector to provide evidencebased feedback on why the

SEE PAGE 6

PAGE 2, Thursday, October 25, 2018

THE TRIBUNE

Drawing the correct terms on picture use W

HAT is the difference between photos, pictures, images, drawings and clip art? Even designers describe them all as photos, while many others simply refer to them as pictures. This helpfully avoids the dilemma of deciding which term to use, but does little to draw a distinction between them.

Most people today consider an image, picture and photograph (photo) as synonyms (the same word) when talking about a visual representation of an object on a computer. However, for the sake of ambiguity, I will define each as follows: • Image - Any visual object that has been modified or altered by a computer, or an imaginary object has been created using a computer.

• Photo or photograph - Anything taken by a camera, digital camera or photocopier.

• Picture - A drawing, painting or other art work created on a computer.

A picture is also used to describe anything created using a camera or scanner. A picture is the most general term for any representation of a person, an object or a landscape. It can be a painting or a pencil

The Art of Graphix

BY DEIDRE M BASTIAN

drawing, etc.

However, differentiating between “image” and “picture” has its difficulties, as “image” has an overlapping area with “picture”, and it has uses of its own where “image” is preferred. For example: • God created Man in his own image. Here, the idea of “likeness” is expressed.

• Firms are concerned about the image the public has of them. And they try to create a positive image by public relations.

The difference between graphics such as clip art and pictures, and drawing objects including AutoShapes and

WordArt, lies mainly in what you can do to them after you have inserted them into your document.

When Clip art and pictures are imported from outside of Word, you do not have much control in modifying them. You can adjust the colours and brightness, and crop out parts you do not want, but you cannot change the actual colours. For example, if you import the clip art “red apple”, you cannot make it a green apple.

Whenever you create AutoShapes or WordArt yourself, you have more control over their

modification. The basic concept is that the more control you had in creating an image, the more control you will have in modifying it.

THUMBNAIL Here we expand a little more on Image and Thumbnail. The general difference between thumbnail and an image is simple. A thumbnail is a small version of a larger graphic that can be clicked to display a larger image.

IMAGE Digital image is the binary representation of any type of visual information such as drawings,

individual video frames, logos, pictures and graphs. You can save images electronically on any kind of storage device.

CLIP ART Clip art was frequently used in desktop publishing before the arrival of the Internet, and is designed for use in publications or web pages by artists or non-artists.

The use of clip art can save artists time, and make art both possible and economical for non-artists. Clip art includes both subjectrelated illustrations and visual elements such as horizontal lines, bullets and

text separators.

Clip art can be purchased on specialised subjects from Adobe, Corel and many smaller companies. If using it on public commercial pages, ensure that you understand any restrictions.

Some artwork requires written permission for use or a payment fee.

These particular visuals created on a computer fall into their own category, but it is good practice when referring to them to use their proper names and terms. In other words, if you are working with clip art, refer to it as clip art instead of as a picture.

Until we meet again, fill your life with memories as opposed to regrets. Enjoy life and stay on top of your game.

NB: The columnist welcomes feedback at deedee21bastian@gmail.com ABOUT THE COLUMNIST: Deidre Marie Bastian is a professionally trained graphic designer/ marketing co-ordinator with qualifications of MSc, BSc, ASc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova South Eastern University, Learning Tree International, Langevine International and Synergy Bahamas.

Development Bank exploring alternative funding mechanisms

FROM left: Justin Sturrup, deputy managing director/BDB; Christina Rolle, executive director/ Securities Commission; Dave Smith, managing director/BDB; and Sherinn Munnings, deputy manager/Securities Commission.

SENIOR Bahamas managing director, said Justin Sturrup, the BDB’s Development Bank Crowd Funding and prod- deputy managing direc(BDB) executives met ucts such as SMART Funds tor, said current financing with the Securities Com- could provide alternative options included term loans mission to discuss the ways for the institution to regulator’s Crowd Funding provide entrepreneurs with for small and medium-sized enterprises (SMEs), equity push and other capital mar- financing. kets instruments.

Mr Smith, who met the financing and executing Dave Smith, the BDB’s Securities Commission agency services.

THE TRIBUNE

Thursday, October 25, 2018, PAGE 3

BAHAMIAN INSURERS GAIN LEADING RATINGS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

TWO Bahamian insurance companies have been upgraded by the industry’s major ratings agency, which also maintained its high ranking of one of their competitors.

Atlantic Medical Insurance (Bahamas) and Security & General Insurance Company (Bahamas) saw AM Best upgrade their financial strength rating (FSR) to A (Excellent) from A- (Excellent), and long-term issuer credit ratings to “a” from “a-”, as part of a wider upward revision affecting all subsidiaries of their parent, Colonial Group International.

Meanwhile, Colina Insurance, the BISX-listed life and health insurer, enjoyed an affirmation of its own current A- (Excellent) financial strength rating and “A-” long-term issuer credit rating by AM Best.

Explaining the rationale for upgrading its ratings on Colonial Group’s two Bahamian affiliates and all other subsidiaries, AM Best said continued growth in its medical insurance business outside the Bermuda home market - and diversification through expansion into the rest of the Caribbean - justified the move.

“The rating upgrades reflect improved market position and geographic diversification compared with its peers, as the medical products business continues to grow outside the core market of Bermuda,” AM Best said.

“The group’s property and casualty segment (including Security & General) has shown limited growth due to rate compression over the last few years, and decreased activity in areas heavily affected by hurricanes in 2017.

“Management is focused on expanding into the southeastern Caribbean markets, which include Barbados, Trinidad & Tobago, Grenada, St Lucia, Dominica, St Kitts

* ATLANTIC MEDICAL, SECURITY & GENERAL UPGRADED * AND COLINA EXTENDS 14 YEARS OF TOP RANKING

& Nevis and St Vincent & The Grenadines, through its 2018 acquisition of a minority interest in The Beacon Insurance Company Trinidad and Tobago, pending regulatory approval,” the rating agency continued.

“While execution and market risks exist, the expansion will complete jurisdiction coverage in 12 markets for Colonial Group, which furthers expands its business profile through geographic diversification.”

Naz Farrow, Colonial Group’s chief executive, said in a statement: “We will use this endorsement to continue building the business for the benefit of our policyholders and new customers in all markets. Our management teams are committed and focused on making this happen.”

AM Best added that the new ratings “reflect Colonial Group’s balance sheet strength”, which it described as “strongest”, along with “its adequate operating performance, neutral business profile and appropriate enterprise risk management”.

“Colonial Group’s balance sheet strength is derived from its long-term operating results, which have resulted in an accumulation of capital that drives its solid risk-adjusted capitalisation levels,” AM Best added.

“Colonial Group has a significant dependence on its reinsurance programmes.

However, these treaties added the necessary protective layers of coverage during the Caribbean’s heavily active 2017 hurricane season.

“Colonial Group’s earnings are driven primarily by consistently strong underwriting results in its medical business. In addition, the group’s

operating performance is indicative of more than adequate risk protection against the catastrophic losses realised last year.”

As for Colina Insurance, AM Best said its rating similarly reflected the life and health underwriter’s “very strong” balance sheet, coupled with its “strong operating performance, neutral business profile and appropriate enterprise risk management”.

“Colina’s balance sheet strength assessment is supported by its strongest level risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its favourable liquidity position,” the ratings agency said.

“Partially offsetting the strongest risk-adjusted capital level is limited investment diversification.

Exchange control restrictions in The Bahamas have limited the company’s ability to significantly diversify its investment portfolio, resulting in the company holding a high proportion of sovereign securities.

“The company’s operating performance is considered to be strong based on its long-standing trend of profitability combined with a lack of volatility, which drives the company’s capital growth.

A.M. Best expects a continuation of a normalised level of profitability based on recent performance measures, including favourable return metrics. However, given the mature nature of the market, Colina’s top line growth has been relatively flat in recent years.”

On the downside, AM Best added: “While Colina continues to generate positive earnings and enjoys a leading market share in The Bahamas, it operates almost exclusively in The Bahamas, limiting its ability to achieve meaningful growth.

“Growth is further impacted by the health of The Bahamas’ economy, which relies heavily on tourism and can be impacted by individual weather events such as hurricanes. AM Best

considers Colina’s enterprise risk management programme to be appropriate for the company’s risk profile. The company has a good risk management oversight and structure, as well as a developed framework with clear risk appetite and tolerance levels in place.”

Colina Insurance, in a

statement issued yesterday, said it had maintained an A- (Excellent) financial strength rating ever since it was first assessed by AM Best in 2004.

Pointing to total assets worth $755.8m at mid-2018, Colina Insurance’s executive vicechairman, Emanuel Alexiou, said: “Our strength lies not

only in our strong financials but also our ability to make sound investment decisions that benefit all of our stakeholders, including our shareholders and policy owners.

“We are very proud of this rating as it crystalises our commitment to remain the leading life and health insurer in The Bahamas.”

PAGE 4, Thursday, October 25, 2018

THE TRIBUNE

Officials visit Estonia for e-government training

LEFT: KWASI THOMPSON, minister of state for Grand Bahama, and Estonia’s minister of entrepreneurship and information technology, Rene Tammist. RIGHT: Mr Thompson with Kay McConney, minister for innovation and technology in Barbados, and Theresa Turner-Jones, general manager for the IDB’s Caribbean division.

By DENISE MAYCOCK Tribune Freeport Reporter dmaycock@tribunemedia.net SENIOR officials travelled to Estonia for a training exercise designed to further the introduction of e-government, and paperless, more efficient services, in Grand Bahama.

Kwasi Thompson, minister of state for Grand Bahama, and Elise Delancy, permanent secretary in the Office of the Prime Minister in Freeport, travelled the Baltic state where they participated in training for Caribbean policymakers and managers.

The trip, from October 15-19, was sponsored by the Inter-American Development Bank (IDB) and equipped participants with the knowledge to develop and strengthen their nation’s digital government capacity and promote information technology (IT) use in the public sector.

Estonia is regarded as a world leader in e-government.

About 99 percent of government services in Estonia are online services available 24 hours per day, seven days a week. Citizens have access to e-services such as e-school, e-banking, e-police, e-health, e-tax, e-business, I-voting and e-Cabinet.

Mr Thompson said the training will strengthen the Government’s institutional capacity, and identify best practices and knowledge to improve the quality of government services.

“We have embarked on making Grand Bahama a tech hub,” said Mr Thompson. “If we truly want to see real results we must begin to make giant leaps to catch up with the rest of the world on how we provide government services for our people.

“We should begin to take steps to make government offices paperless and integrated, which means all of

our offices and ministries are connected online and all can be accessed online.”

Mr Thompson added that all ministries have made progress - to varying degrees - on digitising their services.

“We must begin to integrate those services online to make it easier for Bahamians,” he said. If we move towards a system of integration, Bahamians would not have to bring a paper birth certificate or passport to every government office they do business with.

“If the service is online, they can access these services from their homes. It would forever change the way we do business and, finally, give our Family Island communities the same access to service.

“In Grand Bahama, it will be a necessary factor to attract international technology companies to invest in Grand Bahama and improve our economy.”

THE TRIBUNE

Thursday, October 25, 2018, PAGE 5

SMALL BUSINESS CENTRE IN FAMILY ISLAND ROLL-OUT THE Small Business Development Centre (SBDC) has kicked-off its Family Island roll-out on Exuma, meeting with the island’s Chamber of Commerce and holding a Town Hall meeting in Georgetown.

Davinia Blair, the SBDC’s executive director, acknowledged the feeling among attendees that micro, small and medium-sized enterprise (MSMEs) development did not appear to have kept pace with Exuma’s overall growth, even though by some measures the sector was outperforming larger businesses.

She reiterated the Government’s commitment that 20 percent of public procurement contracts will be reserved for MSMEs. In addition, Ms Blair said there was a need to include Bahamian MSMEs in the supply chain for foreign direct investment (FDI) opportunities.

“Bahamian MSMEs – and, for Exuma projects, Exuma MSMEs – must be at the table as Heads of Agreements are being negotiated,” Ms Blair asserted.

The SBDC’s Family Island roll-out, which will is taking place under the Access Accelerator brand, will target Abaco through a meeting with the island’s Chamber and the staging of a town hall meeting.

In November, Ms Blair is expected to speak at the Long Island Business Outlook, and other islands to which Access Accelerator is bound pre-Christmas season are Andros and Eleuthera.

The SBDC is the product of a tripartite arrangement between the Government, through the Ministry of Finance; University of The Bahamas (UB); and the Bahamas Chamber of Commerce and Employers Confederation (BCCEC).

It has an initial three-year

mandate to guide the development, funding, growth and evolution of MSMEs in The Bahamas.

Ms Blair said the SBDC has now hired a senior business development specialist, an associate director of operations, and contracted another person to design and build the Access Accelerator website.

Nicholas Higgs, as senior business development specialist, is tasked with providing business development advisory services to MSMEs and assisting Ms Blair with overall operations.

He will be responsible for providing counseling on all aspects of small business operations, including management, financing, operations, marketing and personnel. He will have a special focus on capital advising for small businesses.

“I view my role as one of the most important in fostering and growing start-ups, small and medium companies in the country. My role specifically is to assist companies with sharpening their financial swords to fulfill their goals of raising funds, expanding their companies or to simply become a more efficiently-run company,” said Mr. Higgs.

Bianca Lee is associate director of operations, tasked with oversight, supervision and administration of the SBDC’s business operations.

“I am very excited, because we will be able to focus on a section of the market that I believe has been untouched,” she said. “Entrepreneurship is a big thing, especially among young people; even in passing you can hear people talking about their entrepreneurial dreams. Being able to provide support and guidance to those persons will be amazing, especially to assist

Judge dismisses Margaritaville war FROM PAGE ONE Mike Grandonico, over their claim that Margaritaville’s partnership with the downtown Nassau resort violates their exclusive right to use the brand’s trademarks and intellectual property within Bahamian territory.

The Bahamian franchisee’s lawsuit, filed earlier this month, also alleged that Margaritaville executives deterred it from opening a second restaurant location near Nassau’s cruise port to protect their “grander plans” at The Pointe.

Accusing Margaritaville, the lifestyle brand founded by US singer, Jimmy Buffett, of “deceitful” conduct by concealing its partnership with China Construction America (CCA), the Bahamian franchisee expressed fears that the larger, resort-centred location will “obliterate” its current cruise passenger customer base and “destroy” its business.

Mr Maury, who operates the Bay Street Marina located just behind Luciano’s Restaurant, and his business partner said their expansion plans had been “completely shattered”, with staff morale undermined because “they “now believe their jobs are in jeopardy” due to the competitive threat posed by The Pointe’s Margaritaville brand.

Adam Steinberg, Boss Investments’ US attorney, in a letter to Margaritaville Bahamas chief executive, John Cohlan, said it had only learned of The Pointe plans when they were released to the media on January 21, 2018.

“The discovery of the aforementioned Margaritaville project was shocking to say the least,” Mr Steinberg wrote, pointing to Boss Investments’ exclusive sublicence to use the brand’s trademarks within Bahamian territory.

“Indeed, the ‘signature Margaritaville food and beverage concepts’ at Margaritaville at The Pointe will directly compete with Boss’s first venue, a Margaritaville concept located only two miles away from downtown Nassau,” he added.

“Moreover, Margaritaville at The Pointe, with the water park and massive amenities, will always win the customer... and are nearly certain to drive the sublicensee out of business. [It] has already caused a significant impact on its business due to employee concerns and the likely loss of key employees...

“We further understand that Margaritaville has discussed the opening of Margaritaville at The Pointe with Boss’ employees, and that such discussions are impacting the employees’ morale as they now believe that their jobs are in jeopardy due to the fact that Margaritaville at The Pointe will undoubtedly negatively affect Boss’ business at [Paradise Island].”

A further exchange of letters resulted in Mr Steinberg writing to the franchisor on February 26, 2018, suggesting that the dispute could have been avoided if Margaritaville had negotiated with Boss Investments to amend the terms of its contract. The latter had agreed to such a change on August 7, 2014, to allow the opening of a Margaritaville-themed restaurant on Great Stirrup Cay, the private island used

by Norwegian Cruise Line (NCL).

“Margaritaville owed a good faith obligation and fiduciary duty not to destroy the value of Boss’ exclusive licence,” Mr Steinberg wrote. “Clearly the resort, with its food, beverage and retail concepts operated under the Jimmy Buffett name, image and likeness (a strikingly similar product) will destroy Boss’ venue two miles away.

“Additionally, the construction and development of the resort will usurp the goodwill associated with Boss’ exclusive licence, and Boss has invested significant time, energy and money (many millions of dollars) to develop the goodwill associated with its venue.”

With plans for a second downtown Nassau restaurant “completely shattered”, Mr Steinberg added that Margaritaville’s tie-up with The Pointe had come as “a huge shock” to Mr Maury and Mr Grandonico.

THE SMALL Business Development Centre’s executive director, Davinia Blair, discusses the entity’s plans with entrepreneurs in Exuma, where she led a panel including Exuma Chamber of Commerce president, Pedro Rolle, and the Department of Inland Revenue.

that process from start to finish,” she said.

Travis Miller, of Thought & Method, has been hired to develop the SBDC website, which is expected to be launched for public use in mid-December 2018.

He said: “I’m excited about the SBDC because the initiative will allow entrepreneurs more opportunities to get their ideas out there and develop or refine their businesses, and likely get access to funding to help make their dreams a reality.

I believe what SBDC will provide will impact the landscape for entrepreneurs for years to come.”

The new hires come after the appointment of the SBDC’s Board of Directors, chaired by Geoffrey Andrews and deputy chair, Dr Olivia Saunders, two weeks ago. The new board includes Merrit Storr, Ellison Delva, Clifford Johnson, Hank Ferguson, Tyrina Neely, Gina McKenzie, Remelda Moxey, Kristie Powell, Christopher Sawyer and Pedro Rolle.

PAGE 6, Thursday, October 25, 2018

THE TRIBUNE

Govt urged: Avoid ‘rapid fire tax increase’ with NHI FROM PAGE ONE scheme may need to be modified rather than react emotionally.

“We have to be very careful about rapid-fire tax increases,” the BICA president told Tribune Business.

“I’m sure the Government is seeing predictions of 2.22.5 percent GDP growth, but we have to be very careful we’re not taking advantage of that before the chickens come home to roost.

“There are positive signs, especially with the increased tourism numbers, and when we see a positive uptick it’s viewed as a good time to increase taxes. We have to be careful, as that economic growth is coming from 0-2.5 percent, not 2.5-5 percent.”

The Government’s proposed NHI financing mechanism has raised fears that it will further overload consumers and businesses with increased taxation, especially since it follows so swiftly behind the Budget’s 60 percent VAT hike and rising living costs.

While the NHI consultation paper was careful to avoid the word “tax”, it proposes a payroll tax whose structure replicates the National Insurance Board (NIB) scheme - with contributions split between employer and employee.

Ending the notion that “healthcare is free”, the NHI policy paper calls for all working Bahamians to contribute two percent of their salary or 50 percent of the premium - whichever is lower - to purchase the scheme’s Standard Health Benefit (SHB) or minimum

level of coverage.

Unveiling a similar funding mechanism to NIB contributions, the paper says the balance of SHB costs will be met by the employer, meaning the latter “will be responsible for at least 50 percent of the premium cost”.

The SHB package’s initial “regulated premium cost” is expected to be $1,000 per year, or $83 per month, meaning that employee contributions will be effectively “capped” at $500 per month. Its introduction is currently scheduled to begin in April-July 2019, with the wider NHI scheme phasedin over a period lasting until 2021, and containing various exemptions for specific categories of companies and workers.

Mick Holding, the Grand Bahama Chamber of Commerce’s president, told Tribune Business that the proposed NHI payroll tax as with NIB - represents a further potential increase in labour costs for employers that could deter some companies from hiring.

He added that the employee component would reduce workers’ purchasing power and take-home pay, which could lead to pressure for compensating salary increases, further raising labour costs.

“I don’t think any of us would argue with the need to do something, and we appreciate the need to finance it,” Mr Holding said of NHI. “If we want to get where we want to be, there’s a cost to it and we have to pay for it.

“Coming in the wake of VAT, some people are going

to find it difficult, no doubt about it. It may result in increased wage demands from employees to be compensated for their share of it all. Who knows where it will all end up?

“Employers may be less inclined to recruit people or even feel they’re in a position where they can no longer maintain their staffing levels. Again, these are possible consequences of this. But, having said that, one has to recognise there’s a [healthcare] problem.”

Mr Bowe, meanwhile, said the Government must be prepared to delay implementation of parts of its revised NHI scheme, or shrink the services and benefits package, to ensure costs remain manageable and do not depress economic activity.

“The Government has to balance ‘you get what you pay for’, meaning there necessarily has to be funding for NHI, versus when we get these benefits and services,” he explained.

“It is saying that effectively a four percent tax, split between employer and employee, is to come.

In reality, if that is going to dampen economic growth and slow economic activity, they have to defer this level of services or the implementation of certain aspects of NHI.” Mr Bowe suggested the planned payroll tax may have to be introduced in phases, starting at 0.5 percent in 2019 before increasing this to one percent in 2020 and, finally, to the full two percent in 2021

SEE PAGE 7

THE TRIBUNE

Thursday, October 25, 2018, PAGE 7

Govt urged: Avoid ‘rapid fire tax increase’ with NHI FROM PAGE SIX “to balance economic growth with the provision of services”.

“There’s no one that argues against the need for a national UHC scheme, and I don’t think anyone would argue against there being contributions for revenue to fund it,” he told Tribune Business.

“We have to understand where we are in our growth trajectory, and not do anything to disturb it. There was concern that VAT, moving from 7.5 percent to 12 percent, would create a shattering blow to economic growth.

“It does not appear to have done any significant retardation because of the tourism numbers,

and growth may be higher than what we’re seeing.

But, while VAT may not have been as significant as anticipated, we have to be careful about repeated tax increases under different scenarios.”

Coming on top of VAT, Mr Bowe said the proposed NIB payroll tax would further shrink consumers’ disposable income, and “purchasing power is what stimulates GDP growth”.

“While we want to take advantage of a rising tide, we don’t want to be too aggressive and open the door so the water flows out. We want the tide to rise,” he told Tribune Business.

The BICA chief expressed hope that the policy paper, and 45-day

consultation period, was the start of efforts by the Government to find “a middle ground” rather than simply telling the Bahamian people and private sector what it is going to do.

“I looked at the press conference and announcement of the changed position almost as a weather balloon; sending up a balloon to test the appetite,” he said. “I’m hoping this is a weather balloon to test the temperature, test the appetite.”

Mr Bowe called on the Government to conduct “real consultation”, and account for all feedback, while urging the private sector to provide empirical, fact-based analyses rather than an emotive response that said it “can’t afford it”.

Govts Post Office rent 87% off peak

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Government is paying up to $90 per square foot for rental space, a Cabinet Minister said yesterday, describing the 87 percent reduction offered to the Post Office as “unprecedented”.

Brensil Rolle, minister of public service, seeking to justify the selection of the Town Centre Mall as the Post Office’s new home, told Parliament yesterday: “I have a list of rents and leases we pay now in the public service ranging from $90 per square foot.

“That is what happens in the public service today. It doesn’t matter whether you are white or black, it doesn’t matter what the situation is. The Government needs the space, and the space is negotiated at a reasonable rate and we go forward.

Twelve dollars per square foot [at Town Centre Mall] is unprecedented.”

The Minnis administration previously announced it had acquired the former Phil’s Food Services building on Gladstone Road to house the General Post Office, but it was ultimately forced back to the drawing board on those plans because Cabinet discovered it would cost more to renovate the building than it had budgeted, having been stripped of electrical wiring, plumbing and air conditioning components.

The Christie administration had also looked at relocating the General Post Office to the Town Centre Mall during its last term, but ultimately decided to enter into a public-private partnership (PPP) to construct a new building at the Independence Drive Shopping Centre across the roundabout. The project was halted after public outcry from Garden Hills residents, who claimed the location would have negatively impacted their quality of life.

Businessman Scott Godet, who agreed that PPP, this

week told Tribune Business he has been left exposed to a near-$4m loss, having had to endure an 18-month wait for the Government to clarify how it intends to proceed with the deal.

Mr Godet said the Minnis administration has yet to respond to the four options he presented it with on September 4, adding that he had been “unable to do anything with my property” during that period for fear he would breach the PPP’s terms.

Besides sinking $3m into constructing a facility the Government has now seemingly abandoned, the Bahamian businessman said he had also lost about $800,000 in rental income up to end-August 2018 as a result of evicting other tenants to make way for the Post Office.

The Town Centre Mall, at 203,000 square feet, was once listed for sale at a cost of $16m. It is part owned by Minister of Immigration, Trade & Industry and Financial Services, Brent Symonette.

A growing company with more than eleven years of operations invites qualified and experienced applicants for the following vacant position:

ASSISTANT FINANCIAL CONTROLLER POSITION SUMMARY The Assistant Financial Controller (AFC) supports the Financial Controller (FC) assuring that the company’s financial reporting is accurate, complete, and timely. The AFC assists with ensuring internal controls are in place, enforced, and reviewed periodically for conformance to accounting and financial standards and applicable regulations. The AFC assumes the role and responsibilities of the FC in their absence.

ESSENTIAL DUTIES AND RESPONSIBILITIES • Supports the FC in the day-to-day leadership of designated ac counting and finance activities; encompassing daily accounting functions in accounts receivables, payables, banking, general ledger maintenance, and other related duties, such as reconciling account balances and other transactions.

• Execute accounting policies, coordination of systems and procedures, and the preparation of operating data and special

reports as required, including interim and year-end financial

statements (consolidated as well as stand-alone statements).

Maintain company’s system of accounts; safeguards books and records company transactions • Administer tax policies and procedures (inclusive of VAT reporting and communicating directly with the Department of Inland Revenue) • Maintains an effective cash flow management system • Coordinates month-end close procedures of financial records for

reporting to Executive Management • Coordinates weekly processing of payroll in conjunction with Human Resources • When instructed to, liaison between the company and external stakeholders (banks, government agencies, special vendors, etc.)

• Assists the FC with any other duties as assigned QUALIFICATIONS AND REQUIREMENTS • Qualified Accountant (CPA, CA or ACCA) with 2 or more years of experience in an accounting and finance managerial role or at least 4 years of audit experience in reputable accounting firm • Member of the Bahamas Institute of Chartered Accountants is encouraged • Proficiency in computer applications Microsoft Word, Excel, Outlook, etc. is required • Ability to communicate with all members of the staff on financial matters • Results oriented, with an attention to detail and accuracy • Flexibility and adaptability to work under pressure • Team player with high level of enthusiasm • Professional in demeanor and communication skills • Experience of the retail sales and inventory management is a plus The Company offers a competitive remuneration package. Compensation will be aligned with relative experience and qualifications.

Interested

candidates

should

submit

resumes

via

email

only

to

companyvacancynp@gmail.com, no later than Thursday October 31, 2018. Only candidates shortlisted for an interview will be contacted.

PAGE 8, Thursday, October 25, 2018

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

OECD’s permanent residency targeting ‘not really of concern’ FROM PAGE ONE each other, and financial institutions, to do a bit more checking with respect to people who may have multiple citizenships or residences just to ensure that none of them are being used for the purpose of avoiding tax.

“For us it doesn’t matter because we don’t give residency for tax purposes. We give residency for legitimate investment, and we do not absolve people from their reporting requirements to their home country because we do not have any double taxation agreements or things of that nature for second homes.

“It is not really of concern to us because we do not use residency for tax purposes, and we do not absolve people from their obligation to report to their home country. We have a very robust due diligence procedure to ensure that we do not have undesirables come to reside in the jurisdiction.”

The OECD recently listed this nation’s economic permanent residency offering among 21 incentive regimes it says jeopardise “the integrity” of automatic tax information exchange. Bahamian financial services executives, though, believe the

ramifications are more serious than Mr Turnquest indicated, as the move is “not positive no matter how you spin it”.

The Bahamas’ inclusion on the OECD list, at the very least, will plant “seeds of doubt” and uncertainty in the minds of investors as to the benefits of holding/seeking economic permanent residency given that they will likely be subjected to greater scrutiny.

This will be especially unwelcome for investors who have legitimate privacy concerns, such as those from high-crime and politically unstable countries in Latin America, increasingly a key source of business for The Bahamas, who may fear that information extracted by greater CRS scrutiny could fall into the wrong hands.

As a result, the OECD listing threatens to negatively impact a wide cross-section of the Bahamian economy, not just the hard-pressed financial services industry. Besides attracting high net worth clients and their assets to this nation, economic permanent residency drives lucrative business for real estate developers, realtors and attorneys, and produces spin-offs affecting virtually all industries.

The OECD, in unveiling its listing, said all the

Career Opportunity For a General Accounting Clerk

Qualifications: Computer Literacy, Office Practice Skills, High School Diploma, BGCSE: English Language and Mathematics (Grade C or above).

Detailed-oriented, honest, reliable.

Knowledge and skills in collection a plus.

Offerings: Competitive earnings, benefits, good working conditions.

Send resume and standard supporting documents to: jacw1961@gmail.com

regimes - including The Bahamas’ economic permanent residency - “potentially pose a high-risk to the integrity of CRS”. That refers to the Common Reporting Standard (CRS), the OECD’s global reporting standard for automatic tax information exchange, which The Bahamas began implementing last month.

It added that all the investment-related residency/citizenship products identified “can be potentially misused” to enable individuals to “hide their assets offshore by escaping reporting” requirements under the CRS. “Potentially high-risk CBI/RBI (citizenship by investment/residency by investment) schemes are those that give access to a low personal income tax rate on offshore financial assets, and do not require an individual to spend a significant amount of time in the location offering the scheme,” the OECD, which represents the world’s most powerful economies, added.

“Financial institutions are required to take the outcome of the OECD’s analysis of high-risk CBI/ RBI schemes into account when performing their CRS due diligence obligations.”

The OECD said data obtained from the CRS’s automatic tax information exchange initiative had shown these regimes were open to “abuse”, describing those posing the greatest risk as levying less than a 10 percent income tax on beneficiaries. There was also no requirement for persons to remain in the jurisdiction offering the incentive regime for a minimum of 90 days per year.

The Bahamas, since the International Persons Landholding Act (IPLA) was passed in 1993, has used economic permanent residency as a tool to help entice high net worth individuals to make a financial investment in this nation - primarily through property purchases.

THE TRIBUNE

Thursday, October 25, 2018, PAGE 9

Lucayan chairman targets $6-7m Hutchison ‘recovery’ FROM PAGE ONE of the three-way agreement between the former Christie administration, Hutchison and Sunwing for the latter’s Memories brand to operate one of the three Grand Lucayan properties, the then-government agreed to guarantee the latter’s $300,000 monthly lease payments.

Mr Scott yesterday argued that the guarantee was “contingent on the survival of the lease”, which was terminated

by Memories/Sunwing in January 2017 after Hutchison Whampoa failed to repair damage caused to the property by Hurricane Matthew.

“Hutchison was asked to repair it, but they left with the insurance proceeds, and Sunwing said we’re terminating the lease on the grounds of force majeure,” he said.

“A technical, or policy decision, was taken in the Office of the Prime Minister at the time to continue making those payments.”

This was continued under the Minnis administration, but Mr Scott is arguing there was no legal justification to do so given the lease termination, and that the Government should now seek to reclaim the taxpayer monies paid to Hutchison Whampoa.

The attorney, who chairs Lucayan Renewal Holdings, the Government-owned special purpose vehicle (SPV) that now owns the Freeport resort, struck back at Mr Davis’s concerns by playing up the multi-million dollar taxpayer support given to Hutchison Whampoa by the former PLP government.

“It’s reverse engineering of the historical record,” Mr Scott told Tribune Business.

“I don’t know what his criticisms are. He’s lost in space as far as I’m concerned. We were laughing about it earlier.

This is Trumpian hypocrisy of the worst kind. That’s my answer to his criticisms.

“Before Treasure Bay there was Isle of Capri. They [the previous government] let them go and they walked off the casino property. They left about $2m in unpaid

severance, which the thengovernment had to assume responsibility for. That’s what happened then.

“For a while, they paid the salaries, wages and emoluments of the Treasure Bay workers to keep them there; to keep them operating.

This was some misconceived strategy; it was totally misconceived. It amounted, in my respectful view, and having looked at the record, to financial appeasement of Hutchison Whampoa.”

Mr Scott said this emboldened the Hong Kong-based conglomerate to believe that the Government would always jump to grant its financial demands, and that it could act with impunity, which manifested in the problems encountered over the Grand Lucayan’s recent $65m purchase.

“Part of the problem with Hutchison was they were always making these inordinate demands without any thought to master plan what happens in the tourism industry in Grand Bahama, and what role Hutchison was going to play in that arena,” he explained.

“There’s a litany of fallouts along the way, and I’ll tell you why this becomes relevant and why the Government had to assume responsibility for the employees. When we took control on September 11, Hutchison had the keys in one hand and the phone in the other to the security people, telling them to remove the golf carts from the golf course.

“That would have completely paralysed that operation, and they were also going to remove computers, lap tops and other hardware.

They were under the misconception that they could do whatever they wanted, because they were continually being appeased.”

Mr Scott reiterated that the Prime Minister’s personal intervention, and his own efforts, had resolved the situation, but said it showed that Hutchison Whampoa could not be trusted.

“We could not play roulette with the welfare of the employees of a hotel in a situation where the economy

of Grand Bahama is already depressed,” he told Tribune Business. “We were dealing with an owner used to getting their own way, and was completely indifferent to the welfare of Grand Bahama.

Mr Scott accused the Christie administration of squandering its leverage over Hutchison Whampoa through the 2016 Memorandum of Understanding (MoU) that granted a 20-year renewal of real property tax breaks for all its Grand Bahama-based subsidiaries.

There was nothing that made Hutchison Whampoa’s “tax-free status contingent” on commitments to find a buyer for the Grand Lucayan, and he added: “This is the historical backdrop against which we find ourselves.

“It’s not like we’re on a policy of throwing away taxpayer money. This is a fait accompli we met, and are trying to achieve a couple of key objectives. One of those is for those people not wanting to stay, and want to leave and take voluntary packages, that has to be treated in accordance with the law.”

Mr Scott said neither himself nor any Lucayan Renewal Holdings Board member was involved in negotiating the terms of the Grand Lucayan’s $65m purchase agreement with Hutchison Whampoa, as this was concluded before they were appointed.

“We were very active after in the transfer, making sure everything was accounted for,” he added.

Mr Davis had blasted the Government for using taxpayer dollars to finance the separation packages for around 150 Grand Lucayan staff who wish to leave the resort voluntarily.

This will slash the workforce from more than 450 to around 303, or by roughly one-third, “more closely aligning” staff with the demands of the 196-room Lighthouse Pointe property - the only one of the three Grand Lucayan hotels that is currently open. The separations will start towards the end of this month or the beginning of November.

PAGE 12, Thursday, October 25, 2018

THE TRIBUNE

UK’s May faces down critics but ‘no deal’ Brexit chaos looms LONDON Associated Press BRITISH Prime Minister Theresa May faced down her Conservative Party critics and got roars of approval yesterday even as warnings mounted about the disruption that could be unleashed if Britain leaves the European Union without a divorce deal.

May tried to shore up her besieged leadership with a speech to her party’s “1922 Committee” of backbench lawmakers. Many of them oppose her attempts to

strike a Brexit agreement with the EU, and some Conservatives have called for her to be replaced.

May made a call for unity to the dozens of legislators who packed a wood-paneled room at Parliament in London.

Lawmaker Michael Fabricant said May had urged the party to “hang together” as negotiations with the EU reached their endgame, and many in the room had responded with approval. Journalists in the corridor outside could hear loud table-thumping at regular intervals

during May’s speech.

Rather than the lion’s den that some had predicted, “it was a petting zoo,” Fabricant said.

The meeting came as Britain’s spending watchdog, the National Audit Office, said smugglers and other organised criminals were likely to exploit gaps in border enforcement in the event of a “no-deal” Brexit.

The International Air Transport Association also warned there could be “chaos for travellers” if backup aviation plans weren’t put in place quickly.

Britain is due to leave the EU on March 29, but London and Brussels have not reached an agreement on their divorce terms and a smooth transition to a new relationship. The stalemate has heightened fears that the UK might leave without a deal in place, leading to chaos at ports and economic turmoil.

In its report, the National Audit Office said that political uncertainty and delays in negotiations with the EU have hampered preparations for new border arrangements, and the government is now racing to

BRITISH Prime Minister Theresa May leaves 10 Downing Street in London, to attend Prime Minister’s Questions at the Houses of Parliament yesterday.

Photo: Matt Dunham/AP

GN-2122

bolster computer systems, increase staffing and build new infrastructure to track goods.

The office said 11 of 12 major projects may not be delivered on time or at “acceptable quality”.

“Organised criminals and others are likely to be quick to exploit any perceived weaknesses or gaps in the enforcement regime,” it added.

IATA, the international airline trade body, called for urgent planning by Britain and the EU to ensure “the uninterrupted continuation of air connectivity” — in other words, to keep planes flying — and to maintain safety and manage border controls.

Director General Alexandre de Juniac said failure to put such measures in place “could mean chaos for travelers and interrupted supply chains”.

“A backstop contingency plan to keep planes flying after March must be published, and quickly,” he said.

Meanwhile, the Financial Times reported that British Transport Secretary Chris Grayling raised at a Cabinet meeting on Tuesday the idea of chartering ships to bring in food and medicines through alternative ports if new customs checks led to gridlock on the main shipping route between Dover in England and Calais in France.

“We remain confident of reaching an agreement with the EU, but it is only sensible for government and industry to prepare for a range of scenarios,” the Department for Transport said in a statement.

Scottish First Minister Nicola Sturgeon, a Brexit opponent, said the government’s “staggering incompetence” made Britain leaving the EU without a deal in place “the most likely outcome”.

May said this week that a divorce deal was “95 percent” done, but the two sides still have a “considerable” gap over the issue of the border between the UK’s Northern Ireland and EU member Ireland.

Britain and the EU agree there must be no barriers that could disrupt businesses and residents on both sides of the border and undermine Northern Ireland’s hard-won peace process. But so far, each side has rejected the other’s solution.

May has attempted to break the impasse by suggesting that a post-Brexit transition period, currently due to end in December 2020, could be extended to give more time for new trade and customs arrangements.

The EU has said it is open to the proposal, but the idea has infuriated May’s political opponents on both sides of Britain’s Brexit divide.

Pro-Brexit politicians see it as an attempt to bind the country to the bloc indefinitely, while pro-EU politicians say it is a sign of May’s weak bargaining hand and an attempt to stall for time.

May’s rousing performance before the 1922 Committee — which plays a key role in deciding who leads the Conservatives — may have brought a temporary reprieve.

Under Conservative rules, a no-confidence vote in the leader is triggered if 15 percent of party lawmakers write to the 1922 Committee requesting one. The required number currently stands at 48 lawmakers; only committee chief Graham Brady knows how many have been submitted.

Former Home Secretary Amber Rudd said May had addressed the meeting with “passion and emotion”, and her job was probably safe for now.

THE TRIBUNE

Thursday, October 25, 2018, PAGE 13

TESLA DELIVERS ON ELON MUSK’S 3Q PROFIT PLEDGE SAN FRANCISCO Associated Press TESLA Motors delivered on CEO Elon Musk’s promise to make money during its latest quarter after fulfilling his pledge to boost production of its first electric car designed for the mass market.

The company earned $311.5m during the three months ending in September, swinging from a loss of $619m at the same time last year. It’s only the third time that Tesla has posted a quarterly profit in its eightyear history as a public company and the first time in two years.

A big jump in Tesla’s output of its mass-market Model 3 car powered the breakthrough. The manufacturing increase and moneymaking quarter are two things that Musk promised would happen in early August.

Revenue more than doubled from last year to $6.8bn to easily top analyst estimates, just as the profit did.

Tesla’s stock soared 13 percent to $326.12 after the numbers came out.

The third-quarter performance should help restore some of the credibility that Musk lost after he followed up the bold performance with a startling tweet informing the world that he had secured financing to pull off a buyout of Tesla.

Musk later abandoned his plan and the Securities and Exchange Commission subsequently filed a lawsuit alleging that he had misled investors because

TESLA CEO ELON MUSK

he was never close to lining up the estimated $25bn to $50bn that it would have taken to pull of the deal he envisioned.

After initially denying the SEC’s accusations, Musk and Tesla agreed to pay a combined $40m fine to resolve the case without acknowledging or denying wrongdoing.

Musk also must step down as Tesla’s chairman for at least three years as part of the settlement, though he can remain as CEO of the company that has become synonymous with him.

Making money is something Tesla needs to do to stay afloat because it has taken on more than $10bn in debt as Musk has pursued his ambition to create a viable automaker that makes cars running on something besides gasoline. About $1.3bn of that debt comes due by March, intensifying the pressure on Musk to stop the steady losses.

Meanwhile, Ford Motor Co reported a net profit decline of 37 percent in the third quarter as sales slowed in the US and China. Investors have been calling on Ford to detail a promised $11bn worth of

LEGAL NOTICE International Business Companies Act (No. 45 of 2000) Advantage Alpha VI Fund Ltd. (the “Company”) Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of Advantage Alpha VI Fund Ltd. has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the Dissolution was the 10th day of October, 2018.

Domingos Carlos Howorth Barbosa da Cruz Liquidator

cuts that were promised during the next five years as the company tries to rightsize itself to better compete globally.

For Tesla, turning a profit

was not its only notable achievement in the third quarter; it also stopped burning through its cash.

The company generated positive cash flow of $1.4bn in the third quarter, compared to a negative $301m at the same time last year.

Tesla ended September with $2.9bn in cash, up from $2.2bn in June.

Despite the strong showing, doubts will still hang over Tesla until Musk can prove that the company can consistently make money and realise its production goals.

“The results will boost Tesla’s stock price, at least for a while, but investors will examine the results to (see) if they are sustainable or another rabbit Musk has pulled out of a hat using extreme measures that won’t work as the company tries to grow,” predicted Erik Gordon, a business professor at the University of Michigan.

But at least one-time Tesla skeptic converted into a believer, even before the company released its results.

Citron Research, which

GN-2123

had bet against Tesla stock for years, wrote in a note posted on its website that the company is destroying the competition. It produced charts showing that the mass-market Model 3 was the top-selling US luxury car during the first half of the year, more than doubling its closest competitor, the Mercedes C Class.

It also maintained Tesla is siphoning sales from Toyota and Honda, too.

“As much as you can’t believe you are reading this, we can’t believe we are writing this,” Citron wrote.

THE TRIBUNE

Thursday, October 25, 2018, PAGE 15

MICROSOFT’S FISCAL 1Q SHINES WITH HELP FROM NEW BRIGHT SPOTS REDMOND, WASHINGTON Associated Press Microsoft Corp’s expansion beyond its empire in personal computer software paid off again in its fiscal first quarter as it mined new revenue sources in online subscriptions, gaming and its LinkedIn professional networking service.

The Redmond, Washington, maker of Windows and Office software said yesterday that it earned $8.8bn during the three months ending in September, a 34 percent increase from last year.

Earnings per share came in at $1.14 to top the average estimate of 96 cents per share among analysts surveyed by Zacks Investment Research.

Revenue rose 19 percent from last year to $29.1bn, also easily topping the average analyst prediction of $27.7bn, according to Zacks.

The results announced

late yesterday lifted Microsoft’s stock by 2.3 percent to $104.70 in extended trading, setting up the company to regain a chunk of what it lost earlier in the day in a broad sell-off of technology stocks.

Although Microsoft still brings in most of its money from sales and licensing of its Windows operating system and Office suite of programs installed on PCs, the company has been diversifying into lucrative new areas since Satya Nadella replaced Steve Ballmer as CEO 4-1/2 years ago.

Most significantly, Microsoft has been selling subscriptions that provide access to its software programmes over internet connections so customers can use the software on any device, including smartphones and tablets. It also is hosting websites for other companies in competition against Amazon and Google. Revenue from its

website-hosting operations, Azure, increased 76 percent from last year in the latest quarter, more than any other line of business.

Nadella also engineered a $26bn acquisition of LinkedIn in 2016 to give it a foothold in employment services and business networking — two niches that appeal to the corporate customers that Microsoft increasingly is focusing on.

Revenue from LinkedIn climbed 33 percent in the last quarter.

Microsoft also is hoping to get a boost after it completes another recent deal to buy computer coding hangout GitHub. That $7.5bn acquisition is expected to close before the end of this year.

Video games also are lifting Microsoft, thanks largely to its Xbox console and popular titles such as Minecraft. The company’s gaming revenue during the fiscal first quarter increased 44 percent from last year.

GN-2115

GOVERNMENT NOTICE Ministry of Finance

PAGE 16, Thursday, October 25, 2018

THE TRIBUNE

To advertise in The Tribune, contact 502-2394

GN-2124

Visa 4Q results climb 33 percent, beat estimates NEW YORK Associated Press PAYMENT processing giant Visa Inc said yesterday that its fiscal fourth quarter profits rose by 33 percent from a year earlier, helped by a lower tax rate and more payments processed on its signature network.

The San Franciscobased company said yesterday it earned a profit of $2.85bn, or $1.23 a share, up from $2.14bn, or 90 cents a share, from a year earlier. The results beat the expectations of analysts, who were looking for $1.20 per share, according to FactSet. Visa processed $2.086tn on its payment network in the last quarter, up 11 percent from a year earlier.

Visa earns a small fee from every transaction run on

its network. Its payment volumes in the US, Visa’s largest market, climbed 10.5 percent from a year earlier.

Like other large companies, Visa’s profit was boosted by a lower tax bill because of the Republican-passed tax law. The company paid $693m in income taxes in the quarter, down from $959m in taxes in the same period last year. That’s despite the company growing pretax profits by 14 percent from a year earlier.

Revenues for the quarter were $5.43bn, up from $4.86bn a year earlier.

Analysts had been expecting revenue of $5.44bn from Visa, according to FactSet. Visa’s stock rose about two percent in after-hours trading to $136.70 following the release of the earnings report.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, FRANKLYN ROLLE of Lincoln Boulevard, Nassau, The Bahamas, intend to change my name to FRANK ROLLE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE MARKET REPORT WEDNESDAY, 24 OCTOBER 2018

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

BISX ALL SHARE INDEX: CLOSE 1,990.90 | CHG -0.59 | %CHG -0.03 | YTD -72.67 | YTD% -3.52 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 4.46 1.26 0.22 3.92 9.26 6.60 5.30 12.50 2.74 1.77 8.21 6.30 13.20 7.00 4.50 13.50

52WK LOW 3.50 19.17 7.50 3.32 0.90 0.16 2.30 8.60 6.09 3.54 9.00 2.30 1.40 7.25 6.00 10.00 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

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 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

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 ##########

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

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

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)

LAST CLOSE 3.85 17.43 9.09 4.46 1.01 0.19 2.30 9.25 6.16 3.92 12.42 2.52 1.75 7.44 6.29 13.20 6.35 3.63 13.01

CLOSE 3.85 17.43 9.09 4.46 1.01 0.22 2.30 9.25 6.16 3.92 12.42 2.50 1.75 7.59 6.29 13.14 6.35 3.63 13.01

CHANGE 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.00 0.00 0.00 0.00 -0.02 0.00 0.15 0.00 -0.06 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

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

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

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 5,498 1,000 3,000

10,000

VOLUME

EPS$ 0.214 0.932 -0.306 0.317 0.059 0.000 -0.996 0.700 0.441 0.154 0.627 0.102 0.209 0.000 0.670 0.701 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.280 0.500 0.150 0.130 0.590

P/E 18.0 18.7 N/M 14.1 N/M N/M -2.3 13.2 14.0 25.5 19.8 24.5 8.4 N/M 9.4 18.7 8.8 13.1 20.6

YIELD 2.60% 6.48% 0.00% 5.16% 0.00% 4.55% 0.00% 7.68% 3.57% 3.06% 4.99% 2.40% 4.00% 1.11% 4.45% 3.81% 2.36% 3.58% 4.53%

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 Prime + 1.75% 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%

MATURITY 19-Oct-2022 ############### 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

MUTUAL FUNDS 52WK HI 2.17 4.16 2.01 180.30 157.58 1.58 1.70 1.66 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.52 1.68 1.61 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.17 4.15 2.01 180.30 155.10 1.58 1.69 1.66 1.09 7.36 8.47 6.53 11.32 11.67 10.54 9.93 8.45 11.20

YTD% 12 MTH% 2.58% 4.11% 0.39% 5.07% 1.47% 2.34% 0.90% 3.44% 1.11% 6.05% 3.22% 4.22% -0.38% 3.34% 2.39% 4.01% -0.38% 0.53% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 31-Aug-2018 31-Aug-2018 31-Aug-2018 30-Jun-2018 30-Jun-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

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

Notice is hereby given that DERICKA SHIRLEY CLEARE of Carmichael Rd., Nassau, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 25th October, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

NOTICE HOUSE OF GOLD LIMITED N O T I C E IS HEREBY GIVEN as follows: a) HOUSE OF GOLD LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. b) The dissolution of the said company commenced on the 22nd October, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 25th day of October, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator NOTICE AMPIO INTERNATIONAL LIMITED N O T I C E IS HEREBY GIVEN as follows: a) AMPIO INTERNAIONAL LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. b) The dissolution of the said company commenced on the 22nd October, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas.

Dated this 25th day of October, A. D. 2018

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

_________________________________ Bukit Merah Limited Liquidator

THE TRIBUNE

Thursday, October 25, 2018, PAGE 17

Retired US general says war with China likely in 15 years WARSAW, POLAND Associated Press THE former commander of the US Army in Europe warned yesterday that it’s very likely the United States will be at war with China in 15 years.

Retired Lt Gen Ben Hodges said that European allies will have to do more to ensure their own defenses in face of a resurgent Russia because America will need to focus more attention on defending its interests in the Pacific.

“The United States needs a very strong European pillar. I think in 15 years — it’s not inevitable — but it is a very strong likelihood that we will be at war with China,” Hodges told a packed room at the Warsaw Security Forum, a two-day gathering of leaders and military and political experts from central Europe.

“The United States does not have the capacity to do everything it has to do in Europe and in the Pacific to deal with the Chinese threat,” Hodges said.

Hodges was US Army commander in Europe from 2014 until last year. He now is a strategic expert with the

Trump has sometimes questioned the Western military alliance’s usefulness.

“So you’re going to see us continue to invest here in Europe, continue to train, to practice rotational forces, as well as permanently assign forces for the eventuality that in ten or 15 years we’re going to be having to fight in the Pacific,” Hodges said.

Hodges told The Associated Press that a recent near-miss between a US Navy destroyer and a Chinese warship in the disputed South China Sea was only one of the signs pointing to “an increasingly tense relationship and increasing competition in all the different domains”.

Others, he said, are China’s “constant stealing of technology” and how China is gaining control of infrastructure by funding projects in Africa and Europe. He said that in Europe, China owns more than ten percent of the ports.

RETIRED Lt Gen Ben Hodges speaks to reporters on the sideline of the Warsaw Security Forum in Warsaw, Poland, yesterday. Hodges, who was US Army commander in Europe from 2014-17, told the forum that it’s likely but not inevitable that the United States will be at war with China in 15-years.

Photo: Vanessa Gera/AP Center for European Policy Analysis, a Washingtonbased research institute.

Despite shifting geopolitical priorities, Hodges said the US’ commitment to NATO remains “unshakable.” He said he is certain the Trump administration views Europe’s security as a key US interest even though President Donald

To advertise in The Tribune, contact 502-2394

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 84° F/29° C Low: 72° F/22° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

MONDAY

Clouds and sun with a shower or two

Patchy clouds

Clouds and sun, a t‑storm in spots

A t‑storm in spots in the afternoon

A t‑storm in spots in the afternoon

Mostly cloudy with a shower

High: 86°

Low: 77°

High: 86° Low: 77°

High: 88° Low: 75°

High: 86° Low: 74°

High: 84° Low: 73°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

92° F

82° F

95°-84° F

99°-83° F

95°-78° F

91°-74° F

High: 87° F/31° C Low: 76° F/24° C

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

tiDes For nassau High

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

N

almanac

E

W

ABACO

S

N

High: 82° F/28° C Low: 78° F/26° C

8‑16 knots

S

High: 85° F/29° C Low: 74° F/23° C

8‑16 knots

FT. LAUDERDALE

FREEPORT

High: 85° F/29° C Low: 76° F/24° C

N E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 85° F/29° C Low: 76° F/24° C

MIAMI

High: 86° F/30° C Low: 76° F/24° C

4‑8 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 84° F/29° C Low .................................................... 73° F/23° C Normal high ....................................... 84° F/29° C Normal low ........................................ 72° F/22° C Last year’s high ................................. 89° F/32° C Last year’s low ................................... 74° F/23° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ............................................... 43.78” Normal year to date ................................... 34.06”

ELEUTHERA

NASSAU

High: 86° F/30° C Low: 77° F/25° C

Forecasts and graphics provided by AccuWeather, Inc. ©2018

High: 83° F/28° C Low: 78° F/26° C

N

KEY WEST

High: 86° F/30° C Low: 78° F/26° C

Ht.(ft.)

3.5 3.0

2:34 a.m.

3:11 p.m.

0.1 0.2

Friday

9:30 a.m.

9:48 p.m.

3.5 2.9

3:13 a.m.

3:55 p.m.

0.1 0.2

Saturday

10:14 a.m.

10:34 p.m.

3.5 2.8

3:55 a.m.

4:42 p.m.

0.1 0.2

Sunday

11:02 a.m.

11:24 p.m.

3.5 2.8

4:40 a.m.

5:32 p.m.

0.1 0.3

Monday

11:55 a.m. ‑‑‑‑‑

3.4 ‑‑‑‑‑

5:30 a.m.

6:27 p.m.

0.2 0.4

Tuesday

12:20 a.m.

12:53 p.m.

2.7 3.3

6:27 a.m.

7:27 p.m.

0.4 0.5

Wednesday 1:24 a.m.

1:56 p.m.

2.7 3.2

7:31 a.m.

8:31 p.m.

0.5 0.5

sun anD moon Sunrise Sunset

High: 83° F/28° C Low: 79° F/26° C

N

S

E

W

4‑8 knots

S

4‑8 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Low

8:48 a.m.

9:05 p.m.

7:13 a.m.

6:34 p.m.

Moonrise Moonset

7:38 p.m.

7:58 a.m.

Last

New

First

Full

Oct. 31

Nov. 7

Nov. 15

Nov. 23

CAT ISLAND

E

W

Ht.(ft.)

Today

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 83° F/28° C Low: 78° F/26° C

High: 83° F/28° C Low: 79° F/26° C

N

High: 85° F/29° C Low: 78° F/26° C

S

LONG ISLAND

insurance management tracking map

High: 83° F/28° C Low: 79° F/26° C

H

E

W

8‑16 knots

MAYAGUANA High: 84° F/29° C Low: 79° F/26° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 82° F/28° C Low: 79° F/26° C

High: 83° F/28° C Low: 79° F/26° C

GREAT INAGUA High: 85° F/29° C Low: 79° F/26° C

N E

W

N E

W

S

S

3‑6 knots

4‑8 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS E at 8‑16 Knots S at 7‑14 Knots NE at 4‑8 Knots SW at 6‑12 Knots E at 8‑16 Knots SSW at 6‑12 Knots SE at 4‑8 Knots SE at 6‑12 Knots E at 8‑16 Knots SSW at 7‑14 Knots E at 8‑16 Knots SW at 7‑14 Knots NE at 4‑8 Knots SSW at 4‑8 Knots E at 4‑8 Knots SE at 6‑12 Knots E at 4‑8 Knots S at 4‑8 Knots E at 6‑12 Knots ESE at 7‑14 Knots E at 6‑12 Knots SE at 6‑12 Knots SE at 3‑6 Knots SSW at 4‑8 Knots E at 8‑16 Knots SSW at 6‑12 Knots

WAVES 3‑5 Feet 3‑6 Feet 0‑1 Feet 0‑1 Feet 2‑4 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 3‑5 Feet 2‑4 Feet 2‑4 Feet 0‑1 Feet 0‑1 Feet 1‑3 Feet 1‑3 Feet 0‑1 Feet 0‑1 Feet 3‑5 Feet 3‑5 Feet 1‑2 Feet 1‑2 Feet 0‑1 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles

WATER TEMPS. 80° F 80° F 84° F 84° F 83° F 83° F 84° F 84° F 82° F 82° F 81° F 81° F 84° F 84° F 84° F 84° F 84° F 84° F 84° F 84° F 82° F 82° F 83° F 83° F 83° F 83° F

Covering The Bahamas for over 40 years.

NEW PROVIDENCE | GRAND BAHAMA | ABACO | ELEUTHERA | EXUMA

INSURANCE MANAGEMENT

(BAHAMAS) LIMITED. INSURANCE BROKERS & AGENTS

HOME INSURANCE

LIFE INSURANCE

AUTO INSURANCE

MARINE INSURANCE

www.InsuranceManagementBahamas.com

THE TRIBUNE

Thursday, October 25, 2018, PAGE 19

Tech companies lead another steep sell-off in US stocks

BAHAMAS POWER AND LIGHT COMPANY LTD. VACANCY NOTICE

STATION DIESEL MECHANIC MATE A vacancy exists in the Company for a Station Diesel Mechanic Mate, San Salvador.

The incumbent will achieve Company objectives by: • •

• HEWLETT Packard Enterprise President & CEO Antonio Neri, right, rings the New York Stock Exchange opening bell yesterday.

Photo: Richard Drew/AP

By ALEX VEIGA Associated Press ANOTHER torrent of selling gripped Wall Street yesterday, sending the Dow Jones Industrial Average plummeting more than 600 points and erasing its gains for the year.

The Nasdaq composite, with a hefty roster of tech stocks, bore the brunt of the sell-off, leaving it more than ten percent below its August peak, what Wall Street calls a “correction”.

Disappointing quarterly results and outlooks continued to weigh on the market, stoking investors’ jitters over future growth in corporate profits. Bond prices continued to rise, sending yields lower, as traders sought safe-haven investments.

“Investors are on pins and needles,” said Erik Davidson, chief investment officer at Wells Fargo Private Bank. “There has definitely been a change in sentiment for investors starting with the volatility we had last week. The sentiment and the outlook seems to be turning more negative, or at the very least, less rosy.”

Investors have grown concerned in recent weeks that Corporate America’s tax cut-fueled earnings growth this year will be arrested in coming months amid rising inflation, uncertainty over the escalating trade conflict between the US and China and the likelihood of higher interest rates. Recent data showing the housing market is slowing have also fueled speculation that US economic growth will start to slow next year.

The outlooks from some of the companies that reported third-quarter results this week, including Caterpillar, 3M and United Parcel Service, only stoked those worries.

“You’ve seen more discouraging (company) commentary this quarter than you have the last two,” said Tom Martin, senior portfolio manager with Globalt Investments.

“You’re really starting to get more of a groundswell of caution. There’s some concern about the fourth quarter and what that’s going to look like.”

The S&P 500 lost 84.59 points, or 3.1 percent, to 2,656.10. The index is now off about 9.4 percent from its Sept 20 peak.

The Dow tumbled 608.01 points, or 2.4 percent, to 24,583.42. The Nasdaq slid 329.14 points, or 4.4 percent, to 7,108.40. That’s the Nasdaq’s biggest drop since August 2011, but it’s still up three percent for the year.

The Russell 2000 index of smaller-company stocks gave up 57.89 points, or 3.8 percent, to 1,468.70, and is down 4.4 percent for the year.

Bond prices rose, sending the yield on the ten-year Treasury note down to 3.12 percent from 3.16 percent late Tuesday. The slide in bond yields came as traders sought out lower-risk assets.

Technology stocks and media and communications companies accounted for much of the selling. Banks, health care and industrial companies also took heavy losses, outweighing gains by utilities and other

high-dividend stocks.

Most companies that missed earnings expectations or issued cautionary outlooks were punished.

AT&T sank after reporting weak subscriber numbers, and chipmaker Texas Instruments fell sharply after reporting slumping demand.

Shares in iRobot plunged 12.3 percent to $80.49 after the robotics technology company said tariffs will reduce its profitability in the fourth quarter.

Texas Instruments fell 8.2 percent to $92.01 after the chipmaker delivered quarterly results that fell short of Wall Street’s forecasts, noting that demand across most markets is slowing.

United Parcel Service slid 5.5 percent to $107.93 after the shipping company reported weak international revenue, while the strong dollar and high fuel prices also hurt its results.

S&P 500 companies are expected to deliver 22 percent earnings growth for the third quarter, with every sector except communications services, which includes Walt Disney, AT&T, Netflix and Google parent Alphabet, expected to show earnings growth, according to S&P Global Market Intelligence.

About 24 percent of the companies in the S&P 500 had reported third-quarter results as of yesterday. Of those, 57 percent delivered earnings and revenue results that topped Wall Street’s forecasts.

High-flying companies like Netflix and Amazon took some of the biggest losses yesterday. Netflix gave back 9.4 percent to $301.83 and Amazon dropped 5.9 percent to $1,664.20.

AT&T was among the big decliners in the media and communications sector, dropping 8.1 percent to $30.36 after the communication giant’s latest quarterly results fell short of Wall Street’s expectations.

The Commerce Department said sales of new US homes plunged 5.5 percent in September, the fourth monthly drop. The report is the latest sign that the housing market is cooling amid rising mortgage rates. Several homebuilders declined following the release of the report. Beazer Homes USA slumped 8.4 percent to $8.44.

Boeing was one of the few gainers yesterday. It rose 1.3 percent to $354.65 after the defense contractor’s latest quarterly results topped analysts’ forecasts.

The company also raised its estimates for the year, citing faster orders for aircraft.

Despite the tumbling stock prices, the US economy looks solid. Helped by tax cuts, the economy expanded at a 4.2 percent annual pace from April through June, fastest in nearly four years. When the Commerce Department report on third-quarter growth comes out on Friday, it’s expected to show another solid pickup of 3.3 percent.

Unemployment has dropped to a 49-yearlow 3.7 percent.

Responding to the healthy growth, the Federal Reserve has raised interest rates three times this year and is expected to hike them again in December. “The economy is on

solid footing,” analysts at BNP Paribas wrote yesterday. “We think the Fed will continue its gradual pace of rate hikes, for now.”

Benchmark US crude edged up 0.6 percent to settle at $66.82 a barrel in New York. Brent crude, used to price international oils, slid 0.4 percent to $76.17 a barrel in London.

Heating oil was little changed at $2.25 a gallon.

Wholesale gasoline slipped 0.8 percent to $1.82 a gallon. Natural gas declined 1.4 percent to $3.17 per 1,000 cubic feet.

The dollar weakened to 112.44 yen from 112.47 yen on Tuesday. The euro fell to $1.1387 from $1.1467.

Gold fell 0.5 percent to $1,231.10 an ounce. Silver dropped 0.8 percent to $14.68 an ounce. Copper was little changed at $2.76 a pound.

Germany’s DAX fell 0.7 percent, while the CAC 40 in France lost 0.3 percent.

Britain’s FTSE 100 inched up 0.1 percent. Japan’s Nikkei 225 index rose 0.4 percent, Hong Kong’s Hang Seng index dropped 0.4 percent and the Kospi in South Korea gave up 0.4 percent.

• • • •

Performing switching operations in the Power Stations; Monitoring system stability by recording hourly readings e.g., pressure, temperature, oil/water levels and kwh meter onto log sheets, reporting abnormalities and adjusting voltage and frequency output of generators; Performing system restorations by diagnosing system shutdown, reviewing system stability readings and liaising with distribution staff; Assisting with engine maintenance e.g., parts replacement and engine overhaul; Cleaning work areas and assisting with station landscaping; Assisting with consumer complaints by answering telephone and recording such complaints; Preparing station reports (weekly/monthly) by recording fuel received and used and all engine maintenance carried out.

Job requirements include but not limited to: • • •

Successful completion of Formal Apprenticeship Program or equivalent; 1-2 years of experience; Knowledge of diesel engine and associated auxiliaries operations and basic principles of electricity.

Interested persons should apply to Afuture@bplco.com on or before: October 30th, 2018.

Only candidates meeting the criteria will be contacted.

Blue Hill and Tucker Roads, P.O. Box N-7509, Nassau, Bahamas | T: 242.302.1000 | F: 242.323.6852 |www.bplco.com

Bahamas Power and Light Company Ltd.

BUILDING FOR BETTER