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THURSDAY, OCTOBER 31, 2019

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KEITH Davies at Super Value.

Payment provider targets 50% of mobile consumers

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN digital payments provider yesterday said it is aiming to sign up 2,000 merchants and half the country’s mobile phone users when it goes “fully live” before year-end 2019.

Keith Davies, Kanoo’s chairman and chief executive, told Tribune Business that its app-based product will ultimately be adopted “in every corner store in this country - big, small and medium - if we have our way and do this well”.

Revealing that Kanoo is now in the final “beta testing” stages, after spending some two years in development, Mr Davies said the FinTech (financial technology) start-up had received “overwhelming” support from all businesses for a concept that aims to provide an electronic “bridge” to consumers via their cell phones.

He added that Kanoo’s

SEE PAGE 7

By NEIL HARTNELL and YOURI KEMP Tribune Business Reporters

T

ECHNOLOGY “glitches” and a surge in applications were yesterday blamed for the driver’s licence “backlog” that some sources yesterday suggested could last for another four weeks.

Antoinette Thompson, permanent secretary at the Ministry of Transport and Local Government, told Tribune Business that the issuance of new licences and renewals was “back on track” from Tuesday after issues with the printing of the documents were remedied.

However, multiple sources at the Road Traffic Department and the Ministry of Transport and Local Government, speaking on condition of anonymity, told Tribune Business that infuriated motorists will have to brace for difficulties in obtaining driver’s license cards for another four weeks.

If such a timeline holds true the problems will have lasted for seven weeks, given that they have been ongoing for the past three.

The woes could not have come at a worse time given the recent legal changes that require all motorists to

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

equipment to assist given that the scale of the devastation requires “mammoth resources that this country doesn’t possess”.

Warning that it was

SEE PAGE 8

Ease committee: Prioritise registrar general upgrades

By YOURI KEMP THE government’s ease of doing business committee yesterday warned The Bahamas will see minimal improvement in property registration until reforming the Registrar General’s Department becomes “a priority”.

The committee, in a statement issued in response to The Bahamas’ one-notch fall to 119th in the World Bank’s ease of doing business rankings, said the limit placed on the number of documents that can be recorded in one go made it difficult to improve this

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Driver’s licence woes could last four weeks

Dorian debris clear needs big ‘ramp up’ ABACO’S Chamber of Commerce president yesterday called for postDorian debris removal to be “ramped up significantly” given the huge obstacle it presents to the island’s reconstruction.

Ken Hutton, pictured, told Tribune Business that the authorities needed to speed the process up by “a factor of four to five”, and permit foreign contractors with the necessary

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LYNN HOLOWESKO nation’s 181st out of 190 countries rating on property registration.

As for the other area where The Bahamas fared poorly, its fall by eight spots to 152nd for access to credit, the committee said

SEE PAGE 6

• ‘Backlog’ blamed on technology ‘glitch’ • And application surge due to law change • Top official says system ‘back on track’

GLENYS HANNA-MARTIN possess a driver’s licence on their person and immediately present it to a police officer upon request.

“Admittedly there has been a challenge with drivers licenses being issued,” Ms Thompson told Tribune Business, “with the passage of the law on October 7, and the conversations around it over the last several months, leading up to the minister of transport delivering a communication and informed parliament on the changes of multiple road traffic laws.

“One of several things happened as a result of the

announcement of the new road traffic laws. There was an increase in the number of applications over the summer for driver’s licenses.

That was one of the reasons for the Road Traffic Department running short of license cards.

“Also, there was a slight increase since the passage of the law on October 7. The increase created a backlog. Further compounding the increase of applicants, there was a glitch with the printing of the driver’s licenses. When they were printed at that particular juncture of the increase in applicants, the signature was being super imposed over the face of the applicant.”

Ms Thompson added that the system “should be back on track”, saying: “Well, they should be able to get them as of yesterday [Tuesday]. The information I have gotten is that the glitch with the system has been remedied.”

Tribune Business was yesterday told that driver’s licence applicants were being told to retain payment slips as proof they have

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MARLON JOHNSON

Dorian to drive national debt to near $9bn

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

applied for a renewal in case of being stopped by the police. IN addition, persons were also being directed to apply for $50 international licences if they need to go abroad.

Rick Lowe, Nassau Motor Company’s (NMC) director/operations manager, told Tribune Business: “If you need to go to the US and your driver’s licence has expired they’re making you apply for an international licence. At least you can drive internationally, but it’s creating a bit of a dilemma and seems to be causing some havoc up there.

“Locally, you can show the police your renewal slip.

Apparently they’ve run out of the plastic cards to print the licences on and won’t have them until December is what we’ve heard unofficially. We’ve had a couple of clients that have applied, once since October 9 actually, and she was told to come back in two-three weeks. She went back and it was still not ready.”

Robert Myers, a principal

THE Ministry of Finance’s top official last night said Hurricane Dorian had reinforced “why fiscal discipline is so important” even though it is set to drive the national debt to almost $9bn.

Marlon Johnson, the acting financial secretary, told Tribune Business that the Minnis administration’s fiscal consolidation strategy had created the necessary “headroom” to enable the government to fund poststorm recovery without pushing its finances beyond the point of no return.

Affirming that the government will not be distracted from its fiscal goals by a “short-term blip” such as Dorian, Mr Johnson added that “the strategy doesn’t change with the event” even though Dorian is currently projected to blow out the 2019-2020 fiscal deficit to $573.4m.

Based on an $8.263bn national debt as at end-June

SEE PAGE 8

SEE PAGE 6

PAGE 2, Thursday, October 31, 2019

THE TRIBUNE

DPM: BOAT FEE RISES ‘STRIKE FAIR BALANCE’

By YOURI KEMP

THE deputy prime minister yesterday argued that the government had “struck a fair balance” on the increased boating and cruising permit fees revealed this week.

K Peter Turnquest said the prior fee structure had not been altered for some time, leading the government to believe what it views as an extremely lucrative market was under-taxed.

“We had extensive discussions with the Marina

Association to come up with a fair scale,” he added. “As you know the scale had not been changed in quite some time. Through collaborative consultations with the industry, and in consultations with charter companies, we believe we struck a fair balance for the new rate structure. So far the market appears to accept that it is reasonable.

“This is a very lucrative market we were unable to tap, and we knew we were missing tremendous revenue opportunities. So, putting in this fee structure,

we can capture some of that. We are going to be launching very soon an online registration process which would help us even more. These yachts can register online before they even come to the country, and hopefully we can collect that revenue we have been missing out on.”

Mr Turnquest’s comments came despite the disquiet voiced by Peter Maury, the Association Of Bahamas Marinas’ (ABM) president.

He told Tribune Business earlier this week that the industry felt negotiations

over up to near seven-fold fee increases - which were foreshadowed in last year’s budget - had never been completed due to the interruption from Hurricane Dorian.

He argued that the increases are still too high, even though the government had reduced those at the top-end by 50-60 percent from the initially proposed $4,000-$5,000 per annum, and the Marina Association was seeking further reductions. Mr Maury said the industry would also prefer a halfyear, rather than quarterly, fee to accompany the annual charge.

The Ministry of Tourism, though, has gone ahead and revealed the new fee schedule on its website - a development that is now being picked up by international boating and yachting media.

According to the Ministry’s website, the fees for boats entering The Bahamas will be increased from the current $150 for boats up to 35 feet in length and $300 for larger vessels.

• The new fees, to take effect from January 1, 2020, are: • Boats Up to 34 feet: $150 for three months; $300 annually; • Boats from 35 to 100 feet: $300 for three months; $600 annually; • Boats from 100 to 150 feet: $500 for three months; $1,000 annually • Boats from150 to 200 feet: $800 for three months; $2,000 annually • Boats over 200 feet: $1,000 for three months; $2,000 annually

K PETER TURNQUEST The ministry’s website added that the fees will cover a cruising permit, fishing permit, and the departure tax for up to three persons. “Each additional person above three will be charged a $20 departure tax. This fee is good for a second re-entry within a 90-day period,” it said, adding that special arrangements must be made with Bahamas Customs and Immigration for staying longer than 12 months.

Marina operators spoken to by Tribune Business yesterday gave mixed views on the changes. Harry Lee, general manager for the Albany Marina, said: “I knew the fee hike was coming. It was a very quiet season since the storm. We have very few boats coming in. But we won’t be really busy until mid-November.”

“I don’t think the fee rise will hurt the industry. It was a smart move, if anything.

If I was in the government’s position I would have done the same thing a long while ago.”

Addressing the threemonth and annual fee schedule, Mr Lee said: “There are a lot of boats that come to The Bahamas that like to stay longer. To be able to have a cruising permit for a year is a good thing.”

Responding to the Association’s preference for a six- month, rather than three-month, fee, he added: “It depends on the type of clients you have.

Some would like to stay longer, but the type of boaters we have that come into Albany, they can pay the fees.”

Raquel Dorsette, general manager of the Hurricane Hole Marina on Paradise Island, told Tribune Business: “The general consensus is that [the fees] is kind of high. But it was expected for a while. It was

a badly kept secret.

“Nobody likes to pay more fees. Our business won’t be affected in any way; most mariners already have their reservations planned out a year in advance. So we will see how it goes.”

But Anton Mackey, general manager of the Hawks Nest Resort and Marina in Cat Island, said: “The fee rise will impact us greatly. A lot of people will not come because they have to pay all of these fees, plus they have to pay value-added tax.

“We were looking forward to this upcoming season. I have a lot of new boats that have booked for the fishing tournament in February. We have to now make them aware of the new fees. There is nothing going on in Cat Island, and if you take the boating and fishing tournaments from us then it would be less than nothing.

“A lot of people are not going to come, I fear, as a result of these fee hikes.

We are booked at about 50 percent higher than normal over last year as a lot of people who used to go to Abaco are now booking in islands more towards the south, and we have been getting a lot of that transfer business earlier than normal ahead of the fishing season next year,” he continued.

“February through May is when we have our fishing tournaments, and people are booking in advance for all of them because they want to make sure they have a slot in the Marina.

These are new customers for us, too, but those new fees are going to impact us greatly because boaters now are not going to want to come to Cat Island but go to the Dominican Republic instead.”

THE TRIBUNE

Thursday, October 31, 2019, PAGE 3

Dorian ‘recovery zones’ ready by November 11

By YOURI KEMP

THE deputy prime minister yesterday said the post-Dorian Economic Recovery Zones should be “completely up and running” by November 11 following a declaration by the Prime Minister.

K Peter Turnquest said: “We hope to be in position to have the Prime Minister make his declaration next week, with the full effect of the Order coming into effect in the week after. So we are hoping by 11 November we will be in a position to have those zones completely up and running.”

He added that one of the implementation obstacles in making these zones tax-free is the adjustments merchants will have to make to their systems and processes, which are currently set-up to levy Value-Added Tax on

PRIME Minister Dr Hubert Minnis addressing crowd in Green Turtle Cay. consumer sales.

“One of the challenges we have to address is with respect to the vendors themselves to ensure they are able to adjust their systems in time to be able to give effect to the Order,” Mr Turnquest explained.

“So we will be talking to the Chambers of Commerce in Nassau and on the

affected islands to see what kind of lead time they need in order to be prepared to take advantage of the opportunity that exists.”

Mr Turnquest had previously said thegovernment also plans to amend the VAT Act “to give a full effect to the long-term plan with respect to” the creation of the Economic Recovery

Zones, as the law currently provides limited exemptions from the 12 percent levy. The Prime Minister’s proposed Order will, in the meantime, extend the exemptions covered in the initial Dorian exigency.

The deputy prime minister spoke as Dr Hubert Minnis yesterday pledged that Abaco and

Grand Bahama will be VAT-free until June 2020 during a town meeting on Abaco’s Green Turtle Cay. While details and a start date for this initiative have yet to be announced, the government said individuals and businesses on the two impacted islands will be exempt from the payment of VAT on a range of items, including unprepared food of all types, water, fruit and vegetable juice, clothes, shoes, hats, belts, stockings, gloves, scarves, cleaning supplies, beds and bedding material.

Other products designated as VAT-free are hardware supplies, building materials, landscaping supplies, pest control supplies, electrical fixtures and materials, electrical generators, farming equipment and supplies, fishing equipment and supplies, manufacturing

equipment, cots, protective and safety gear, household furniture, furnishings and appliances, solar panels, mosquito netting, plumbing fixtures and materials, office supplies and equipment, tents, air-conditioning units and other equipment.

“We want your economy to get going as quickly as possible. We want to get you back into your homes as soon as possible,” the Prime Minister told residents.

Dr Minnis also announced plans to establish The Bahamas National Recovery and Reconstruction Trust Fund, an independent nonpolitical body to help fund home and building repairs.

The Fund is included in the Disaster Reconstruction Authority Bill 2019, which was tabled in the House of Assembly this Tuesday.

First firms receive Dorian grant funds

By YOURI KEMP EIGHT Bahamian companies yesterday received grants from the Small Business Development Centre (SBDC) to help kickstart their post-Hurricane Dorian rebuilding efforts.

Fowlco Ltd; Painters Touch (Bahamas); Continuum Financial Holdings; ETP Industrial Outfitters; Last Mile Communications; K & O Landscaping; J C Management & Accounting Services; and Arma Import/ Export Seafood were approved to receive the funding as the Government plans to create “one-stop shops” in Abaco and Grand

Bahama to aid business restoration efforts.

K Peter Turnquest, deputy prime minister, said these initiatives will concentrate all the government’s entrepreneurship-related services under one roof in a bid to streamline approvals processes and make getting into - or re-establishing - a business more efficient.

He said: “The Government of The Bahamas pledged $10m to assist with various entrepreneurs in their rebuilding efforts to get them back on their feet and back in operation, not only to provide opportunities for themselves but to get people back to work and back to a normal as quickly

as possible.”

Geoffrey Andrews, chairman of the SBDC, said: “We are happy to present the first government grants to small businesses so they can start their rebuilding efforts. There are several more businesses that have been approved and are in the pipeline. We understand that these funds are critical to the redevelopment of these communities as it is to the people.”

Nicholas Higgs, the SBDC’s lead analyst, said each of yesterday’s recipient companies received a different amount up to the $5,000 maximum under the government’s post-Dorian special assistance programme.

He added that can also apply to the general SBDC programme and obtain up to $20,000 in grant funding, along with a maximum $100,000 in equity financing and loan facilities up to $500,000.

“Certain ventures that are larger and need more assistance, as soon as we leave this room today we are going back at it to get them in front of financial institutions to get them the full amount they need to accomplish their goals with both loans or equity investments, which would represent a portion of their company and with an exit clause between five to seven years,” Mr Higgs added.

Conggtuuuons to this brilliant young man,14 year old Jayden Preston Rolle on attaining a passing grade of A in The BJC and BGCSE 2019 Spanish Examinations.

From Your Spanish Tutor - Senorita Shavon Smith I am so proud of you.

PAGE 4, Thursday, October 31, 2019

SEBAS TO ADDRESS BTC SMALL BUSINESS FORUM

THE Bahamas Telecommunications Company (BTC) will close its small business month with today’s first annual small business conference.

Titled BTC InKnowVation, powerful real-world business solutions, it will feature a number of local and international speakers and serve as a networking opportunity for small business customers to share insights and best practices.

Conference speakers include Island Luck chief executive, Sebas Bastian; music industry professional, Darryl Payne; celebrity hairstylist, Derreck J; digital marketing expert, Rasheed Girvan; president of the American Advertising Federation for the Caribbean region, Arnold Foote; founder of the Nichole Makeup Brush Line, Toria Nicole Fanakos; reality show personality and businesswoman, Tanya Sam; and chief executive of iSuccess Consulting, T Renee Smith.

Andre Knowles, BTC’s director of B2B, said: “We are proud to present the BTC InKnowVation Conference to our local small business community. This is just one of the ways we are continuing to add value for our customers, and to demonstrate the importance of this ever-growing segment.

“We are looking forward to networking with our customers and collaborating with them to design solutions that

meet the needs of their businesses. We encourage anyone that has a small business, or is interested in starting one, to attend this conference. We promise that you won’t be disappointed.”

Globally more than 6.5m new small businesses are started each year. Industries such as technology, health and energy are the main breeding grounds. Small business customers has evolved over the years and in many instances, they are employees with full-time job commitments, developing a commercial strategy as a secondary stream of income.

BTC has held a number of activities over the past month, including the Share our Space initiative that has allowed small businesses including those affected by Hurricane Dorian - to use the company’s Mall at Marathon flagship store to showcase its products and services.

“Our teams wanted to find a way to help our small business customers that had been displaced by the storm.

We came up with what we thought was a great initiative to provide office space for some of the small businesses, and to provide them with exposure via the BTC footprint. We are currently seeking ways to expand this offer,” Mr Knowles said.

The BTC InKnowVation conference is free to the public, and will be held in the Grand Hyatt Baha Mar ballroom.

THE TRIBUNE

BTVI names consultants to oversee transformation THE Bahamas Technical and Vocational Institute (BTVI) has named consultants to oversee the multi-million dollar upgrades being partfinanced by the Caribbean Development Bank (CDB).

Dr Robert W Robertson, its president, announced LaToya Johnson as project co-ordinator, while the project manager for institutional strengthening is Gabriella Fraser. The pair will oversee improvements that are expected to transform BTVI over a two-year period. The CBD’s loan, and the Government’s contribution, are about $4.7m each.

Ms Fraser is an economist by profession, who is also a researcher and analyst. Her career has been in administration, policy and regulation across key sectors of the Bahamian economy, including higher education, tourism, financial services and the electronic communications sector.

Noting that BTVI is critical to the country’s socio-economic development, Ms Fraser said its role often seems under-appreciated.

“Over the life of the project and following the project’s conclusion, I hope to see a changing narrative that helps strengthen

BTVI’s consultants for the Caribbean Development Bank-financed project are project co-ordinator, LaToya Johnson, left, and project manager for institutional strengthening, Gabriella Fraser, right. this appreciation - not only through greater awareness, but also through strategic partnerships that add important value to the BTVI brand,” she added.

Ms Johnson has been a project consultant for more than ten years, providing

technical and business consulting services to engineering, business firms and non-profit organisations.

Prior to consulting, she was a network engineering specialist at a major telecommunications company in the US where she provided support to over 100 network operations centres on the east coast and technical expertise for large capital management projects.

Ms Johnson’s role is to monitor the day-to-day operations of the multimillion dollar CDB project, co-ordinate the selection of consultants needed to execute the project and provide regular updates to all stakeholders on its progress.

The project will over the next 24 months seek to rehabilitate and upgrade existing classrooms and laboratories to provide better working spaces, deliver an improved governance

and management system, enhance BTVI’s capacity for quality technical and vocational education and training delivery (TVET), and a skills enhancement programme in the Family Islands.

Ms Fraser said her role will examine the institutional framework at BTVI, and its overall capacity to meet its education and training mandate, in a bid to seek out greater effectiveness and efficiencies.

She added that under the improving governance and management systems component, strategic planning - including development of a business plan for BTVI and a corresponding implementation plan - will be a priority.

A campus master plan, and enhancement of student services to strengthen inclusion and responsiveness to student needs is another key area, along with crime prevention and campus security. Enhancing human resources and financial management systems is also on the agenda, along with a tracer study system.

“This will be critical to assessing the transition of BTVI graduates and former students into employment, and how well they would have been prepared for the labour market,” said Ms Fraser. “It should be an important tool for continued strengthening of the institution’s connectedness to industry and ongoing industry developments.

“As a data source for students’ post-BTVI achievement, the information compiled through the tracer study system will be important to national discourse and policy.”

Instructor training and upgrades will be another focus, while the Family Island component is intended to enhance BTVI’s outreach and support targeted skills development needs, driven by industry demand.

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Thursday, October 31, 2019, PAGE 5

Compliance chief ‘stays step ahead’ THE founder and president of the Bahamas Association of Compliance Officers (BACO) has armed herself for a more rigorous regulatory climate by attaining another degree.

Cheryl Bazard said it was critical for compliance professionals to “stay a step ahead” in an ever-changing world after obtaining a Master of Laws degree in financial compliance and risk management from the Thomas Jefferson School of Law (TJSL) in San Diego.

“Global policies like the General Data Protection Regulation (GDPR), anti-money laundering and combating the financing of terrorism (AML/CFT) protocols and procedures have changed the paradigm as it relates to the way we evaluate financial services institutions, jurisdictions and their overall approach to compliance,” said Mrs Bazard.

“Changing regulatory obligations and shifting expectations make for an increasingly challenging environment. To stay a step ahead, it’s crucial compliance professionals embrace educational and learning opportunities.

At BACO, we lead by example.”

CHERYL BAZARD Mrs Bazard believes her investment in learning will yield real benefits now and into the future.

An online graduate programme, TJSL’s financial compliance and risk management Master’s degree trains compliance attorneys, government officials, senior risk advisors and others on how to keep financial institutions in compliance, and how to identify and implement successful risk management initiatives.

The degree takes a minimum of one year to complete with a commitment of 15 to 20 hours required per week.

Designed for working professionals, most courses run around eight weeks in duration.

Mrs Bazard was

supervised by Dr Robert Munro, the director of the Centre for International Financial Crimes Studies, who found Mrs Bazard’s thesis “simply outstanding” and suggested she should have it published.

The thesis focused on the US PATRIOT Act and its effects on The Bahamas. It explored not only the basic impact of that law on the financial services industry, but also the rippling effects on the middle class and the subsequent domino effect on the country.

“Given the low risk rating for The Bahamas in the area of terrorist financing, the thesis examined whether The Bahamas was sufficient in its legislative regime and whether any further expansion of the same would be to the detriment of the industry,” explained Mrs. Bazard.

A graduate of the College of the Bahamas and the University of Buckingham, Mrs Bazard was called to the Bar of England and Wales in July 1991, and to the Bahamas Bar a month later.

She began her career as a counsel in the Office of the Attorney General before receiving an appointment to the stipendiary and circuit magistrate

court in 1996.

Mrs Bazard entered the financial services sector as the compliance officer for CIBC Bahamas in 1998.

Upon the merger of CIBC and Barclays she was made regional director of compliance, responsible for

creating policies and overseeing 16 countries in the region.

She left the financial services sector in 2006 to establish Bazard & Company, her own law firm. A 2003 recipient of the Bahamas Financial Services

Board (BFSB) Professional Excellence Award, Mrs Bazard has chaired two boards, the Port Authority and the Consumer Protection Board, in addition to serving as deputy chairman of the Public Defenders Committee.

The Most Honourable Dr. Hubert A. Minnis

PROCLAMATION

PAGE 6, Thursday, October 31, 2019

Dorian to drive national debt to near $9bn

FROM PAGE ONE

2019, the category five storm’s impact seems likely to drive this to $8.836bn by the time the current fiscal year closes - a position just shy of $9bn.

Mr Johnson conceded that Tribune Business’ analysis was “probably correct, yes”, but voiced optimism that the government would eventually be able to return to the “very, very positive trajectory” its finances were on prior to Dorian’s arrival.

Its fiscal performance for the three months to end-September 2019 incorporates little of the hurricane’s impact, which will be felt in full during the 2019-2020 second quarter and subsequent periods, and therefore is not the best indicator of trends for the remainder of the fiscal year.

Still, the government managed to cut its fiscal deficit, which measures the amount by which its spending exceeds revenues, from $64.9m to $41.8m - a decline of 35.6 percent year-over-year.

“July and August would

have been the significant drivers of performance in the first quarter, so it doesn’t materially reflect the Dorian fall-out,” Mr Johnson explained. “There was some fall-out in September from the exigency Order coming into play, but we managed to net out a better performance before we saw the effects of Dorian.

“It won’t be indicative of the rest of the year as the impact of Dorian works its way through. Going forward, the deficit position will be expected to widen considerably.”

Acknowledging the near$9bn national debt that The Bahamas will likely face as a result, Mr Johnson said the government would not be distracted from its long-term fiscal consolidation plan despite the scale of Dorian’s devastation.

“The government is committed that any shortterm blip will be just that,” he told Tribune Business.

“Because of Dorian and the need to rebuild, and the collective impact of that on the economy, we will see some deviation from the fiscal targets.

“The strategy doesn’t change with the event, and the government - as it has done - will exercise fiscal discipline to ensure it brings the deficit-to-GDP and debt-to-GDP ratios down.

THE TRIBUNE “The other key point is the fact we have been on this fiscal consolidation trajectory gives us the headroom to go out and secure the funding to finance this deficit with relative ease,” Mr Johnson continued.

“The fact the Government has been on this fiscal consolidation path has enabled us to go to the markets and raise financing for what we need. It reinforces the message of why fiscal discipline is so important.”

The deficit narrowing during the 2019-2020 fiscal year’s first quarter was driven by a 7.6 percent year-over-year increase in total revenues, which jumped from $513.8m to $552.7m. Tax receipts, accounting for 90 percent of total income, rose by $26.8m or 5.7 percent to $498.6m due largely to higher VAT intakes.

The Government’s total spending also increased, but at a slower 2.7 percent pace, rising to $594.5m from $578.7m a year ago.

“Capital transfers, at 34.3 percent of the budget, more than doubled to $17.6m, as developments were boosted by Hurricane Dorian-related outlays to commence the restoration of water ($6.1m) and electricity ($10m) supplies on Abaco and Grand Bahama,” its first quarter

fiscal snapshot said.

“Recurrent expenditure - comprising 90.7 percent of total spending - was marginally lower by $0.9m (0.2 percent) at $539m, as the $13.3m (33 percent) hike in other payments, inclusive of transfers and insurance premiums, offset the $26.1m (19.7 percent) decline in payments for the use of goods and services.”

On the revenue side, gaming taxes for the 20192020 first quarter increased by $2.2m or 35.9 percent to $4.8m or 23.2 percent of the sum budgeted for the full year. This was partially attributed to “the new tax regime for gaming operators following the court settlement in February 2019”.

The government’s “snapshot” added: “VAT receipts grew by $66.8m (33.5 percent) to $266.2m, representing 24.2 percent of the budget. This was due largely to the shift in the basis for assessment of taxes on several realty transactions to VAT from stamp duties.

“Correspondingly, revenue from stamp taxes on financial and realty transactions contracted by $43.8m (80.5 percent) to $10.6m, which equated to 10.4 percent of the budget.

“Taxes on international trade contracted by $3.6m (3.2 percent) to $110.3m, which represented 22.5 percent of the budget allocation,” it continued. “Key drivers of this development include the $15.1m (18.3 percent) decline in customs and other import duties in the context of the recent removal of duty on certain household items as announced in the 2019/20 Budget.

“A monthly analysis also revealed a steeper than usual fall-off in Customs revenue between August and September—largely attributed to the Exigency Order declared in the aftermath of Hurricane Dorian, which allowed for the importation of certain relief items duty and VAT free.”

Ease committee: Prioritise registrar general upgrades FROM PAGE ONE the commercial banking sector had blamed this on “constraints” imposed by regional and head offices.

Still, the committee chaired by Lynn Holowesko said it was “difficult to accept” The Bahamas decline in the World Bank rankings given that it had improved in five of the categories assessed by a combined 77 spots.

Given that it only dropped a collective 22 places in the three areas where it ranked worse, the committee argued that the net 55 ranking improvement deserved a better fate than The Bahamas received.

The biggest decline occurred in the “registering property” category, but the committee’s statement echoed K Peter Turnquest, deputy prime minister, in arguing that the World Banmk had misunderstood the real estate transfer tax structure as a result of multiple switches between VAT and Stamp Duty.

“Despite The Bahamas improving its country rankings by a net 55 places, its overall ranking fell by one place, primarily due to the fact that the World Bank’s data indicates that the cost of registering property increased from four percent to 12 percent between years, when in fact there has been no change in the combined rates of stamp duty and VAT associated with registering property,” the committee said.

“Had the World Bank’s data reflected that there had been no change in the cost of registering property, The Bahamas’ overall ranking would have improved by 11 places relative to last year, instead of declining by one place.”

Acknowledging that property registration and access to credit had been “of great concern” to the committee and its members since they were appointed, it urged that greater focus be placed

on the Registrar General’s Department given that it is the hub around which all real estate transactions, company returns and incorporations occur.

“The national ease of doing business committee met with the Registrar General in the fall of 2017, leading to numerous recommendations being made to government to improve the registry,” the committee said. “Several of those recommendations were implemented, particularly as regards company formation and online access to corporate documents.

“However, as long as a limit remains in place on the number of documents that can be presented for recording at one time, it is difficult to see how significant improvement can be seen in registering property.

“As well, the time lapse between submitting a deed to be recorded and collecting the recorded deed involves several weeks, and sometimes many months, before a recorded deed can be collected by a law firm or a member of the public.

“In 2017 the committee noted that the Registrar is critically understaffed and required more qualified personnel. Government has many priorities, and its timelines for improvement in all areas of doing business have, at times, been undermined by external pressures.

“However, the committee is of the view that the needs of the Registrar General’s Department must be a priority if we are to improve doing business in The Bahamas.”

Mr Turnquest, in response, said yesterday: “We are going through a whole process of land reform and a digitisation of our records.

All of that we anticipate will result in the modernisation of the land registry and how land is conveyed and titles are transferred. I know that software has been sourced but, as of the timing of it, I will defer to the Attorney General’s Office.”

THE TRIBUNE

Thursday, October 31, 2019, PAGE 7

Payment provider targets 50% of mobile consumers FROM PAGE ONE platform, which will first be rolled-out through Super Value’s 13 stores, aims to provide the Bahamian private sector with instant payment certainty while also eliminating the costs and risk associated with handling large amounts of cash.

Mr Davies said it will also provide “analytics” and data on how and when their consumers shop, and how much they spend, as well as allowing companies to communicate directly with them and offer incentives such as gift/loyalty cards.

From the consumer’s standpoint, he added that Kanoo will offer improved convenience, choice and access to financial services through the ability to instantly load money into an electronic wallet and conduct transactions.

Further benefits cited

by Mr Davies were better inclusion, and a reduction in the number of persons who are “unbanked or underbanked”, with Kanoo tailored to the “pace” at which each user and merchant wants to conduct electronic transactions.

And, keenly aware of complaints about the Know Your Customer (KYC) bureaucracy, he revealed that Kanoo will be able to complete this process electronically within minutes once the necessary identification documents are provided.

Successful applicants will then be able to load up to $15,000 to their electronic wallets, and participate in transactions worth up to $2,500 per day.

Herbert Cash, Kanoo’s chief financial officer, told Tribune Business that the number of merchants targeted as initial participants in its “ecosystem” had more than doubled based on the positive private sector reaction to-date.

“Our initial target list for the number of merchants in the ecosystem was 300,” he said. “I think we’re going to hit that relatively easily based on the number of terminals we’ve ordered and merchants we’ve got in, and that’s expanded to 780 merchants.

“There are roughly 300,000 mobile users in the local market. Our goal is we want to be on no less than 150,000 phones and in 2,000 merchants as consumers, inclusive of government, and being a payment leader... Wherever electronic payments are received today we want to sit there and be one of those payment options.”

Kanoo, whose parent company is CaribPay Bahamas Ltd, has been designed as a “closed loop” community that brings consumers and merchants together in a single space to interact, incentivise and transact through digital payments.

Nicholas Rees, Kanoo’s chief operating officer, told Tribune Business that the company’s app products were akin to having “a bank in the palm of your hand”. He explained: “The whole vision behind Kanoo is really a digital ecosystem or world where users interact, communicate and be incentivised by merchants in a social mobile environment.

“Kanoo is like a bank in the palm of your hand. One of our taglines is: ‘Handling your finances at the speed of light’. Whatever speed you’re at, Kanoo is there for you at the level of transactions you want to engage in. The core of our philosophy is to drive this home and offer services to the unbanked in The Bahamas and cashless services for merchants.

“It allows businesses at their own pace to create apps to target customers, know their customers, communicate with their customers, transact with their customers and incentivise their customers.

Mr Rees said Kanoo’s digital payments system is based on user and merchant apps, which can be downloaded from the Apple and Google play store once it goes live,

and an online relationship manager. Key features include digital wallets, mobile shopping malls, and the ability to benefit from exclusive deals, discounts and coupons/gift cards issued by specific merchants.

Mr Davies, who remains the Bahamas International Securities Exchange’s (BISX) chief executive, added that Kanoo had been in development for “the better part of two years” prior to reaching its current late testing stage with select merchants and interested consumers invited to participate upon request.

“This has been a long time coming,” he told Tribune Business. “It’s a bridge that covers all users and merchants. As a merchant, I will know who my customers are. You are going to put power in the merchant’s hands to monetise their customer base.

“We will give merchants the tools to attract more spending to their store at minimal cost and with minimal effort.”

Mr Davies said Kanoo was now seeking to place its units at all of Super Value’s 165 store terminals, having trained all of the supermarket chain’s 200plus cashiers in how to use them.

He added that Super Value would effectively become a “bank” once conventional locations closed, as consumers will be able to upload/download money into their electronic wallets and use this to shop and pay for groceries.

Revealing that Kanoo is licensed by both the Central Bank and Grand Bahama Port Authority (GBPA), Mr Davies told this newspaper that Kanoo has also partnered with one of The Bahamas’ largest mobile top-up distributors.

He explained that the company plans to leverage its partner’s 100 locations “to be able to load money as easily as you top-up” and conduct transactions/ send money to relatives, enabling Bahamians to enjoy payment services after normal business hours.

“If we have our way, and do well, we expect to see Kanoo in every corner store in this country - big, small and medium,” Mr Davies told Tribune Business.

“Why do I make that statement? Our app is designed for dealing with cash intensive businesses, which the majority of Bahamian businesses are.

“The vast majority of businesses don’t accept electronic payments. Kanoo is its own closed loop payment. What that means is a merchant is able to receive cashless digital payments either directly through their phone, Android or iphone, or place one of our units on the counter to receive payments as well.

“Individuals are able to transact digitally without the need to physically take out cash. Handling cash has a very high cost. There is a cost in terms of handling, and a cost in terms of theft and criminality. If we remove the need for cash handling we remove the overhead for business and the cost of doing business.”

Mr Davies said Kanoo currently has five full-time employees, and operates via a “partnership” model where it uses other entities to supply it with necessary services and products. “We are driving towards this year; before the end of the year is our target to be live fully,” he added.

“We have brought together a collection of young Bahamian professionals to put this company together. Everyone on the ground in this company is 100 percent Bahamian. We have three international partners with skin in the game, and two persons out of Atlanta that are technology partners.

“The technology we are using is our technology.

Our partners are part of, and owners, of this company. They have skin and money in the game. This is basically a symbiotic relationship where they work with us, we work with them.”

PAGE 8, Thursday, October 31, 2019

Dorian debris clear needs big ‘ramp up’ FROM PAGE ONE

impossible for businesses and homeowners to rebuild “in the middle of debris field”, given the obvious dangers this posed, Mr Hutton said a non-governmental organisation’s (NGO) recent revelation that it was taking 180 loads to the Abaco landfill per day “needs to be closer to 1,000” if reconstruction is to soon begin in earnest.

He added that the debris and waste created by the category five storm, which a Cabinet minister previously estimated to weigh 1.5bn pounds, also needed to be properly separated rather than simply dumped en masse into the island’s landfill due to the heightened risk this posed for fires as well as long-term environmental and health hazards.

“Clean-up is starting, debris removal is continuing, but it needs to be ramped up significantly,” Mr Hutton told Tribune Business. “All the local companies are at full capacity but in order to get this done as quickly as possible we need additional capacity here, and if that means bringing in foreign contractors that’s what we

need to do.

“We need to increase what is going on by a factor of four to five. It’s a little difficult, and be hazardous and dangerous, to rebuild something in the middle of a debris field. It needs to quicken a lot at the current pace. It’s a mammoth task, and it needs mammoth resources that this country doesn’t possess.

“A non-governmental organisation, I can’t remember which one, said it was taking 180 loads a day to the landfill. That needs to be closer to 1,000.”

Mr Hutton added that the 1.5bn pounds of stormrelated waste, as estimated by the minister of the environment and housing, Romauld Ferreira, needed to be properly sorted so that any hazardous materials or those that can be recycled were removed from the debris stream.

“That debris cannot just be dumped in the dump,” the chamber chief told Tribune Business. “It has to be sorted, picked apart and recycled. We can’t just put it in the landfill as that creates irreversible environmental hazards for the future.

“It doesn’t have the capacity, and when you have that

THE TRIBUNE stuff mixed together and not sorted the first thing that happens is the landfill catches fire. You have toxins mixed in there and the ground becomes poisoned. It’s an environmental hazard waiting to happen.”

Mr Hutton, though, said yesterday’s docking of Tropical Shipping’s first commercial sailing to Abaco since Dorian had provided the island with a welcome boost. While the Marsh Harbour port was “still not up to” global security standards, he added that “at least it’s a secured operating zone to be able to move towards that.

“Now the sea port is open, our next project will be getting the airport up and running,” the chamber president said. “I’m aware that the main issue at the airport is the external and perimeter fencing that needs to be repaired and put back in place, and I understand there may be an issue with the fire fighting equipment that may have been damaged during the storm.”

While welcoming Dr Hubert Minnis’ pledge yesterday to make Abaco and Grand Bahama “VAT free zones” until June 2020 in a bid to aid Dorian recovery, Mr Hutton cautioned that “the extent to which it will be helpful will be seen in the details”.

He added: “I think it’s great. It’ll definitely be helpful. I don’t know the details.

I don’t know if it will be VAT

free on everything from food to building materials to automobiles. Every bit of relief, though, is welcome.”

The government yesterday said individuals and businesses on the two Dorian-impacted islands will be exempt from the payment of VAT on a range of items, including unprepared food of all types, water, fruit and vegetable juice, clothes, shoes, hats, belts, stockings, gloves, scarves, cleaning supplies, beds and bedding material.

Other products designated as VAT-free are hardware supplies, building materials, landscaping supplies, pest control supplies, electrical fixtures and materials, electrical generators, farming equipment and supplies, fishing equipment and supplies, manufacturing equipment, cots, protective and safety gear, household furniture, furnishings and appliances, solar panels, mosquito netting, plumbing fixtures and materials, office supplies and equipment, tents, airconditioning units and other equipment.

Mr Hutton, meanwhile, described the planned openings of Maxwell’s Supermarket and Commonwealth Bank in early and midNovember, respectively, as “a game changer” given that this would also restore the island’s main food store and financial/ banking services - two essentials if reconstruction is to begin.

“It’s a game changer, and we will start to see things getting back to some sense of normalcy,” he said. “The key thing is getting people back into their homes, and getting schools and churches fixed to get a real sense of community back here. Schools are critical.

“There has been no update on the water supply. It’s off in some places and on in some places. We know they’re conducting testing in Marsh Harbour and identifying leaks. I know they’re starting to run electricity poles into Marsh Harbour, but from what I understand that’s focused on the government complex, clinic, airport and port. That’s the priority right now.”

Driver’s licence woes could last four weeks FROM PAGE ONE with the Organisation for Responsible Governance (ORG), said of his experience: “I had to go down there two to three times to hear the same thing: That they don’t have any cards.

“I had to go get a receipt to show I’d paid for a driver’s licence. Why should we go to that hassle. Why should anyone be put to that hassle?”

Glenys Hanna-Martin, former minister for transport, yesterday called for the Government to show greater accountability over the driver’s licence woes at the Road Traffic Department.

“The government and the people of The Bahamas made a substantial investment to take road traffic from a manual system to a full-automated system, which should have provided greater checks and balances to go to a greater accountable system,” she argued.

“I asked the minister about it last night; the

government has been in charge for two-and-a-half years. They should know more about it. I think that he should be accountable to the Bahamian people for not knowing, or not being able to give, adequate details about the situation.

“The minister needs to explain why the people can’t get a national identification card, particularly in light of the fact of the importance of the document. He himself moved legislation to criminalise this not having a driver’s licence in your vehicle not that long ago.

“He should have known that it would have put people in an uncomfortable position, and he should move to ensure that this would not occur. He should have known he was putting people in jeopardy by criminalising this. Now for the Road Traffic Department to be out of cards at this time is just unacceptable.”

Tribune Business tried to get comment from minister for transport, Renward Wells, but was unsuccessful in doing so.

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THE TRIBUNE

Thursday, October 31, 2019, PAGE 9

TWITTER BANS POLITICAL ADS AHEAD OF 2020 ELECTION

SAN FRANCISCO Associated Press

TWITTER, reacting to growing concern about misinformation spread on social media, is banning all political advertising from its service.

Its move strikes a sharp contrast with Facebook, which continues to defend running paid political ads, even false ones, as a free speech priority.

“While internet advertising is incredibly powerful and very effective for commercial advertisers, that power brings significant risks to politics, where it can be used to influence votes to affect the lives of millions,” Twitter CEO Jack Dorsey said yesterday in a series of tweets announcing the new policy.

Facebook has taken fire since it reiterated in September that it will not fact-check ads by politicians or their campaigns, which could allow them to lie freely. CEO Mark Zuckerberg told Congress in October that politicians have the right to free speech on Facebook.

Zuckerberg wasted no time responding to Twitter’s move.

During Facebook’s conference call for earnings, which began less than an hour after Dorsey’s tweet, the Facebook chief offered an impassioned monologue about what he called his company’s deep belief “that political speech is important”.

Zuckerberg stood by the company’s decision to run unchecked political ads and denied that the choice is

JACK DORSEY financially motivated, saying such ads make up less than half of a percent of Facebook revenue.

Facebook’s recent $5bn fine from the Federal Trade Commission for privacy violations was more than ten times what it makes from political ads, he said.

“This is complex stuff.

Anyone who says the answer is simple hasn’t thought about the nuances and downstream challenges,” he said. “I don’t think anyone can say that we are not doing what we believe or we haven’t thought hard about these issues.”

Google did not have an immediate comment on Twitter’s policy change.

Trump’s campaign manager called Twitter’s change a “very dumb decision” in a statement yesterday.

“This is yet another attempt to silence conservatives, since Twitter knows President Trump has the most sophisticated online program ever,” campaign manager Brad Parscale said.

The presidential campaign

for former Vice President Joe Biden said it was “unfortunate” that companies would think the only option was to completely ban political ads.

“When faced with a choice between ad dollars and the integrity of our democracy, it is encouraging that, for once, revenue did not win out,” Bill Russo, the deputy communications director for Biden’s campaign said in a statement.

Political advertising makes up a small sliver of Twitter’s overall revenue. The company does not break out specific figures each quarter, but said political ad spending for the 2018 midterm election was less than $3m.

It reported $824m in thirdquarter revenue.

Candidates spend significantly more purchasing ads on Facebook than on Twitter, company records show.

The issue suddenly arose in September when Twitter, along with Facebook and Google, refused to remove a misleading video ad from President Donald Trump’s campaign that targeted Biden.

In response, Democratic Sen Elizabeth Warren, another presidential hopeful, ran her own ad on Facebook taking aim at Zuckerberg.

The ad falsely claimed that Zuckerberg endorsed President Donald Trump for re-election, acknowledging the deliberate falsehood as necessary to make a point.

Critics have called on Facebook to ban all political ads. These include CNN chief Jeff Zucker, who recently

called the company’s policy of allowing lies “absolutely ludicrous” and advised the social media giant to sit out the 2020 election until it can figure out something better.

Misleading political ads on social media played a major role in Russian disinformation efforts during the 2016 presidential election.

Dorsey said the company is recognising that advertising on social media offers an unfair level of targeting compared to other mediums. It is not about free expression, he asserted.

“This is about paying for reach. And paying to increase the reach of political speech has significant ramifications that today’s democratic infrastructure may not be prepared to handle,” he

tweeted. “It’s worth stepping back in order to address.”

Twitter currently only allows certified campaigns and organisations to run political ads for candidates and issues. The latter tend to advocate on broader issues such as climate change, abortion rights and immigration.

The company said it will make some exceptions, such as allowing ads that encourage voter turnout. It will describe those in a detailed policy it plans to release on Nov 15.

It will also still allow politicians to freely tweet their thoughts and opinions, which can then be shared and spread. Trump’s Twitter feed in particular is known for his often bombastic and controversial tweets that

are shared widely.

Matt Shupe, a Republican political strategist whose public relations firm has won awards for its use of ads on Facebook, called Twitter’s decision “incredibly dumb”.

He said there’s no reason to eliminate all political advertising just to stop the relatively small number of bogus or misleading ads.

“You can’t abolish television advertising because cigarette makers bought ads once,” he said.

The decision will hurt political challengers the most, Shupe said, as they don’t have the name recognition or wide reach of incumbents and need ads to get their message out.

PAGE 10, Thursday, October 31, 2019

THE TRIBUNE

FED CUTS RATES FOR A 3RD TIME BUT SIGNALS IT WILL NOW PAUSE WASHINGTON Assoicated Press THE Federal Reserve cut short-term interest rates yesterday for a third

time this year to try to support the economy. But it signaled that it plans no further cuts unless it sees clear evidence that the economic outlook has worsened.

For now, Chairman Jerome Powell, pictured, sounded a bullish note about the economy in a news conference after the Fed’s latest policy meeting.

Despite some signs of weakness, the Fed expects growth to continue and the job market to remain strong.

Since spring, manufacturing output has stumbled amid trade tensions and slower global growth, while businesses have cut spending on large equipment. But Powell stressed that the Fed doesn’t see those trends weakening the broader economy. Instead, steady hiring is keeping unemployment very low, boosting consumer confidence, and encouraging more spending.

“Monetary policy is in a good place,” Powell said.

“If developments emerge that cause a material reassessment of our outlook we would respond accordingly.

Policy is not on a pre-set course.”

Some of the global and trade threats that have been bedeviling the economy have receded, Powell said, thereby reducing the need for future rate cuts.

The US and China have reached a tentative truce that has cooled their trade war. And the European Union has agreed to extend the deadline for the United Kingdom’s exit from Oct 31 to Jan 31, lowering the likelihood of an economically disorderly “no deal” Brexit.

“On both, the risks appear to have subsided,” he said. “That could bode well for business confidence and activity over time.”

Investors appeared pleased with Powell’s positive take on the economy.

The Dow Jones Industrial Average closed up 115 points, or 0.4%. Analysts also noted that the year’s third rate cut had been widely expected and that expectations for another cut at the Fed’s next meeting, in December, were already dim.

“He clearly set the bar high for rate cuts in December and January,” said Kathy Bostjancic, chief US financial economist at Oxford Economics.

But Bostjancic and some other economists say they expect growth to keep slowing and to eventually force the Fed’s hand. Bostjancic expects growth to decline to just 1.6% in 2020, below the Fed’s forecast of 2%, and that the policymakers will cut rates sometime next spring.

Powell may be too optimistic about a defusing of the China trade and Brexit threats, Bostjancic said.

While President Donald Trump and China’s President Xi Jinping are seeking to agree to an initial pact next month, it would likely leave many significant areas of dispute between the two countries unresolved.

“He was wearing a little bit of rosy glasses with the trade talks and Brexit,” she said. “Trade tensions are still going to remain.”

The Fed’s move yesterday reduces the short-term rate it controls — which influences many consumer and business loans — to a range between 1.5% and 1.75%.

The policymakers dropped from their statement a key phrase they had used since June to indicate that a future rate cut was likely. That phrase said they would “act as appropriate to sustain the expansion”.

The Fed’s new statement says instead that it will review the latest economic data as “it assesses the appropriate path” for its benchmark interest rate.

Two of the Fed’s policymakers dissented from the decision: Boston Fed President Eric Rosengren and Kansas City Fed President Esther George said they preferred to leave rates alone. Both have dissented from all three rate cuts this year.

The economy is in its 11th year of expansion, fueled by consumer spending and a solid if slightly weakened job market. By cutting rates, the Fed has tried to counter uncertainties heightened

by Trump’s trade conflicts, a weaker global economy and a decline in US manufacturing.

The third rate cut of the year has partly reversed the four hikes that the Fed made last year in response to a strengthening economy. That was before rising global risks led the Fed to change course and begin easing credit. Lower rates are intended to encourage more borrowing and spending.

Powell has said that the central bank’s rate reductions were intended as a kind of insurance against threats to the economy.

Powell has pointed to similar rate cuts in 1995 and 1998 as precedents; in both those cases, the Fed cut rates three times. He and most other Fed officials credit their rate cuts with lowering mortgage rates, boosting home sales and generally keeping the economy on track.

The Fed is also weighing the consequences of a decline in expectations for inflation. Lower inflation expectations can be self-fulfilling.

This can pose a problem for the Fed because its preferred inflation gauge has been stuck below its 2% target for most of the past seven years.

In the meantime, Trump, via Twitter, has renewed his attacks on the Fed for not lowering its benchmark rate closer to zero. The president has contrasted the Fed’s actions unfavorably with central banks in Europe and Japan, which have slashed their rates into negative territory. Though Trump has argued that this puts the United States at a competitive disadvantage, most economists regard negative rates as a sign of weakness.

The US economy is still growing, and hiring remains steady, though there have been signs of a slowdown in recent data. Americans cut back on spending at retailers and restaurants last month, a worrisome sign because consumer spending is the leading engine of economic growth.

Still, consumer confidence remains high, and shoppers could easily rebound in the coming months.

Earlier yesterday, the government estimated that the economy grew at a tepid but steady 1.9% annual rate during the July-September quarter. That report showed that businesses cut back on their investment in new equipment and buildings by the most in nearly four years.

But it also showed that the housing market helped drive growth for the first time in seven quarters, as home purchases and renovations have increased.

Powell credited the Fed’s interest rate cuts for spurring those gains, along with greater spending on cars and appliances.

THE TRIBUNE

Thursday, October 31, 2019, PAGE 11

AT&T SAYS HBO MAX STREAMING SERVICE TO LAUNCH IN MAY FOR $15

By TALI ARBEL Associated Press AT&T said on Tuesday that its HBO Max streaming service will launch in May for $15 a month, joining a crowded field of emerging rivals to Netflix.

The company has said HBO Max will become the “workhorse” for its video business as cord-cutting of traditional TV expands. It hopes to migrate people who pay for HBO in different ways today to the new platform. The service grew out of AT&T’s $81bn purchase of Time Warner, which AT&T overhauled and rechristened WarnerMedia.

HBO Max will challenge Netflix alongside Disney , Comcast and Apple . It will be the most expensive of the new services that have announced prices, which could make it challenging to expand its customer base.

It is also the same price as HBO Now, the current HBO streaming service for people who don’t get the cable channel. Company officials expect existing HBO customers — those subscribing either via cable or HBO Now — to switch to HBO Max, which will offer far more to watch.

Some existing subscribers to HBO’s cable channel or HBO Now will get free access to HBO Max, AT&T said.

The company said it will launch a version of HBO Max with ads in 2021, a new twist for a brand known for being ad-free. The company wants to reach 50 million subscribers in the US by 2025, and 75 to 90 million worldwide. It expects HBO Max to be profitable starting in 2025.

The service will offer movies and programs from HBO and the WarnerMedia

library, including “Friends”, which it will pull back from Netflix. Other hits like “The Big Bang Theory” and “South Park” will also be available.

It’s aiming for kids with “Sesame Street” and an Elmo talk show. And it will have superhero movies from DC. The service will also launch 50 original series in the first year, half targeted to younger adults and the remainder split between shows for kids and for adults. The service won’t release a season’s worth of episodes all at once, as Netflix typically does.

AT&T will bundle HBO Max with some unlimited wireless plans as well as certain “premium” home TV and internet plans to promote the streaming service. It will work with other cable and satellite companies to get them to offer the HBO Max service for their customers too.

It plans to spend about $19.5bn through 2025 for HBO Max in the US (Netflix will spend $15bn this year alone on shows and movies.) AT&T executives stressed their focus on quality.

AT&T is looking to future-proof its video business, which has been shrinking as cord-cutting accelerates.

Customers are departing its previous attempt at a new-TV tack, the online-cable substitute today known as AT&T TV Now, as AT&T sought to make it profitable and raised prices.

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PAGE 14, Thursday, October 31, 2019

THE TRIBUNE

After calorie counts go on fastfood menus, orders dip a bit NEW YORK Associated Press SOON after calories were posted on fast-food menus, people cut back a little bit on what they ordered. But it didn’t last.

Customers at fast-food chains in Louisiana, Mississippi and Texas ordered an average of 60 fewer calories per transaction in the weeks

after the figures were displayed, according to a study published yesterday in the medical journal, BMJ. That amounted to a 4% drop, and declines came largely from extras such as fries and desserts.

After about a year, the drop was down to 23 calories.

Since orders likely included food for multiple people, the impact

per person might be even smaller. But the decreases are averages and some people may have made bigger cuts while others didn’t make any, said study co-author Joshua Petimar of Harvard’s School of Public Health.

“The strongest impact might be felt in the short term, whereas the long-term effects are still a little bit up in the air,” he said.

PICTURE shows calorie counts on drive-through menu items of a fast food restaurant in Ridgeland, Miss. According to a study published yesterday in the medical journal, BMJ, customers at fast-food chains in Louisiana, Mississippi and Texas ordered an average of 60 fewer calories per transaction soon after the figures were displayed on menu boards.

Photo: Rogelio V Solis/AP

Vacancy Announcement The American Embassy in Nassau is accepting applications for the following position:

Mechanical Engineer Salary $51,114 - $76,672 Duties: The Mechanical Engineer shall be directly responsible to the OBO Project Director in the performance of their duties. Services shall generally consist of eight (8) hours a day, 40 hours a week from Monday through Friday or as otherwise directed. The mechanical engineer shall be available for compensated overtime work as directed by the OBO Project Director. The Mechanical Engineer will observe, inspect, and report on the construction of the New Embassy Compound (NEC) in Nassau as directed by the OBO Project Director.

Interested candidates are required to possess the following skills and qualifications: • Education: Bachelor of Science degree in Mechanical Engineering from an accredited institution is required.

• Experience: Five years of progressively responsible experience in Mechanical Engineering with at least three years of experience in the field of building construction.

• Language: English level IV (Fluent) Written/Speaking/Reading is required.

The complete Vacancy Announcement and Application forms are available online at: https://bs.usembassy.gov/embassy/jobs Application forms must be submitted electronically to the following email for consideration: NassauHR@state.gov.

Applications will not be accepted at the Security Gate of the Embassy or by mail or other means of delivery.

Deadline for applications is November 8, 2019.

Due to the high volume of applications, unsuccessful candidates will not be contacted.

It’s the latest effort at sizing up how calorie counts influence what people order.

A national law that went into effect last year requires chains with 20 or more locations to post calories. Some places, including New York City and California, imposed similar rules years ago to combat obesity. The idea is to give people information to make better choices.

Past research has suggested calorie counts lead to modest or no changes, and yesterday’s study suggests that also seems to be the case in the South,

where obesity rates tend to be higher. Still, the authors say more research is needed to understand the effects of the practice, especially over the long run and in other settings, like sit-down restaurants.

It could be that people don’t notice the numbers on crowded fast-food menus, or know what they mean, said Bonnie Liebman of the Center for Science in the Public Interest, which has pushed for calorie counts on menus.

“Like, is 600 a lot? Is 800 a lot?” she said.

Calorie needs vary , but a 40-year-old moderately active man is estimated to need around 2,600. Liebman said requiring restaurants to post calories is also a way to pressure them to make dishes less fattening.

The findings were based on sales data from 104 fastfood locations over three years. The owner provided the information but did not allow researchers to identify the chains.

The locations posted calories counts in 2017, when the law was supposed to go into effect. The authors noted the study ended before the law’s postponed implementation last year, when awareness might have been greater.

And they said people may have made changes the study didn’t capture, such as requesting no mayo or cheese, or deciding to stop going to the restaurant. The initial average drop in calories was driven by people buying fewer items rather than switching to lower-calorie options, the study found.

Even if the study didn’t find a big drop, it shows calorie counts can have an impact, said Brian Elbel, who researches calorie posting at NYU’s School of Medicine.

THE TRIBUNE

Thursday, October 31, 2019, PAGE 15

Lyft loses money again but eyes profits in about two years NEW YORK Associated Press LYFT is still losing staggering sums of money as it barrels ahead with impressive revenue growth, but its executives said they believe the company will turn a corner and reach profitability in about two years.

The ride-hailing heavyweight brought in $955.6m in revenue in the third quarter, up 63% from the same time last year, the company said yesterday.

That beat expectations of analysts polled by FactSet. But San Francisco company lost $463.5m in the quarter compared with a $249.2m loss a year ago.

More than half of the loss came from stock-based compensation and payroll tax expenses related to its initial public offering.

On the bright side, Lyft’s executives emphasised they believe the company will turn a profit in the fourth quarter of 2021, a year earlier than they had previously projected.

One reason for optimism: Lyft is providing far fewer discounted rides than it did a year ago, according to Brian Roberts, the company’s chief financial officer.

“More people are paying full price for rides,” Roberts said in an interview with The Associated Press.

Lyft is also focusing on more profitable rides, such as airport or business

LYFT scooters are seen along Mission Beach boardwalk in San Diego. Lyft, Inc reported financial earns yesterday.

trips, he said.

“We are very focused on profitable growth, not growth at all costs,” Roberts said.

Despite higher average prices, Lyft’s number of active riders grew 28% to surpass 22 million.

The money-losing company has struggled to demonstrate a path to profitability, just like its larger rival Uber.

Its share price, which hovered around $44 yesterday afternoon, has lost about 39% of its value since its stock market

debut in March.

But Roberts sought to differentiate Lyft from Uber. “We’re not doing food. We’re not doing trucking. We are 100% focused on our transportation network,” he said.

To boost its revenue with higher-value rides, Lyft is pursuing more partnerships with businesses, universities and medical organisations to provide rides for their customers and employees, said John Zimmer, the company’s president and co-founder, in a conference call with investors.

The revenue growth was solid, but the cost of generating that revenue — expenses such as paying drivers — reached $580.7m, meaning the cost as a percentage of revenue grew compared to the same time last year, said Dan Morgan, vice president and senior portfolio manager for Synovus Trust Company.

“Not to pick at a good report, but obviously the goal is to get costs and expenses down as much as possible so they can drive a profit,” Morgan said. “You want those numbers to be

going the other way.”

Lyft’s quarterly losses included $86.6m in insurance costs to cover potential liability for past claims.

That took some of the shine off its new outlook for profitability, said Tom White, senior vice president at DA Davidson.

“That’s one things investors are scratching their heads on a little bit,” White said.

To reduce the frequency of car accidents and related insurance costs, Lyft is increasing its investment in systems for monitoring

risky driving behaviour such as speeding and hard breaking, Roberts said. It is also using predictive analytics to reduce fraudulent insurance claims.

In addition, Lyft is exploring selling its legacy insurance claims to a third party, and if a sale goes through, fees associated with the sale could impact next quarter’s results, Roberts said.

After accounting for insurance costs and other expenses such as those related to the IPO, Lyft’s adjusted net loss was $121.6m in the third quarter, compared with $245.3m a year ago.

Lyft is committed to hitting its new profitability timeline despite California’s recent passage of a law that requires ride-hailing companies to treat drivers as employees, Roberts said. That costly change could entitle its drivers to minimum wage, benefits and workers compensation, among other things. Uber and Lyft proposed a ballot initiative on Tuesday to exempt ride-hailing companies from the new law.

Lyft also rolled out a membership programme called “Lyft Pink”, which for $19.99 a month gets riders 15% off all rides and surprise upgrades, preferred pickups at the airport and free bike and scooter rides, CEO Logan Green said.

PAGE 16, Thursday, October 31, 2019

THE TRIBUNE

Fiat Chrysler merger with PSA appears headed for approval DETROIT Associated Press IN A merger deal that appears to be heading for approval, Fiat Chrysler stands to gain electric vehicle technology while PSA Peugeot Citroen could benefit from a badly needed dealership network to reach its goal of selling vehicles in the US. The Wall Street Journal, citing sources it did not identify, reported yesterday that the boards of Fiat Chrysler and Peugeot approved the deal. The board of Exor NV, the Agnelli family holding company that controls Fiat Chrysler, also affirmed the deal, the newspaper said.

The merger would create the world’s fourth-largest automaker with a combined market value of around $50bn. Neither company would comment.

Experts say the two automakers would be able to share car, SUV and commercial vehicle designs, helping each other fill weaknesses and share costs that will make them a strong global player.

“We view the combination of these two companies as reasonable given global competition, high capital intensity, and industry disruption from electrified powertrain as well as autonomous technologies,”

A FIAT logo pictured on a car in Milan, Italy. Italian-American carmaker Fiat Chrysler Automobiles yesterday confirmed that it is in talks with French rival PSA Peugeot, its second bid this year to reshape the global auto industry facing huge challenges with the transition to electric and autonomous vehicles.

Morningstar analyst Richard Hilgert wrote in a note to investors.

Fiat Chrysler Automobiles confirmed Wednesday that it’s in talks with French rival PSA in its second try this year to reshape the global auto industry at a time of heightened uncertainty for the business. The talks started after a merger with France’s Renault collapsed earlier this year. FCA for years has been looking for a partner to share huge capital costs to develop future technologies.

The timing of any deal

is unclear, but the Peugeot board was meeting yesterday, said a person close to the discussions on condition of anonymity.

Here are four areas that could be crucial to the two automakers’ success: TECHNOLOGY For years, Fiat Chrysler has lagged its rivals in electric vehicle technology, with its former CEO once trying to discourage people from buying its only fully electric car in the United States, the Fiat 500E, because he lost money on each sale. The

Vacancy Announcement The American Embassy in Nassau is accepting applications for the following position:

Electrical Engineer Salary $51,114 - $76,672 Duties: The Electrical Engineer shall be directly responsible to the OBO Project Director in the performance of their duties. Services shall generally consist of eight (8) hours a day, 40 hours a week from Monday through Friday or as Otherwise directed. The electrical engineer shall be available for compensated overtime work as directed by the OBO Project Director. The Electrical Engineer will observe, inspect, and report on the construction of the New Embassy Compound (NEC) in Nassau as directed by the OBO Project Director.

Interested candidates are required to possess the following skills and qualifications: •

Education: Bachelor of Science degree in Electrical Engineering from an accredited institution is required.

•

Experience: Five years of progressively responsible experience in Electrical Engineering with at least three years of experience in the field of building construction.

•

Language: English level IV (Fluent) Written/Speaking/Reading is required.

The complete Vacancy Announcement and Application forms are available online at: https://bs.usembassy.gov/embassy/jobs Application forms must be submitted electronically to the following email for consideration: NassauHR@state.gov.

Applications will not be accepted at the Security Gate of the Embassy or by mail or other means of delivery.

Deadline for applications is November 8, 2019.

Due to the high volume of applications, unsuccessful candidates will not be contacted.

company has made progress on gas-electric hybrids and may have plans for more fully electric vehicles, but PSA has valuable technology that FCA can use, said Navigant Research analyst Sam Abuelsamid.

Peugeot was relatively late to the electric vehicle game but is now working fast to catch up, notably with fellow French rival Renault.

CEO Carlos Tavares has made a point of stressing the company’s need to adapt to changing technology at car shows and earnings calls. Last year he announced plans to offer 40 electric models across its lineup by 2025.

“Electrification hasn’t been a huge part of their play up until now,” Abuelsamid said.

“Between the two of them, I think they could generate some scale for whatever they’re doing, sharing component costs, development costs across electrical platforms,” he said.

More electric vehicles also would help FCA meet pollution and fuel economy regulations in Europe.

As far as autonomous vehicles, neither company is

among the leaders, Abuelsamid said. But that’s a technology that’s years into the future, giving them time to share the huge expenses and catch up together. FCA also has alliances with other companies such as Google spinoff Waymo that could bring autonomous vehicle technology to the market when ready, Abuelsamid said.

UNITED STATES At an appearance in Detroit last year, Tavares said PSA would be selling vehicles in the US within the next decade.

“If you want to be a global player, you have to be there,” he said.

The company has since been working on ride-hailing services and talking to dealerships, but little progress has been revealed. A deal with FCA could accelerate that goal greatly.

With 2,640 dealers across the US, Fiat Chrysler would be a ready distribution network for Peugeot and other PSA vehicles. PSA even could remain separate from Fiat Chrysler brands by selling in underutilised Fiat and Alfa Romeo dealerships.

PSA specialises in small and medium-sized cars, which have fallen out of favor with US and even some international buyers who prefer SUVs and trucks. PSA could build its own vehicles off the underpinnings of FCA’s hot selling Jeep SUVs and Ram trucks, Abuelsamid said.

EUROPE Fiat Chrysler and PSA are likely to have an easier time completing a merger due to decades of cooperation in both Italy and France on building commercial vehicles.

But Europe will also pose one of the bigger problems. There is a large overlap in the types of smaller cars and sedans built under the Fiat, Peugeot, Citroen and Opel marquees.

That raises the specter of factory closures to deal with

overproduction as European car sales lag. France and Italy will fight to protect jobs; Italian plants are already working under capacity despite plans to repurpose them for highermargin premium brands Alfa Romeo and Maserati.

Analysts say that Opel, purchased by PSA from General Motors in 2017, could face the most drastic cuts, as it is now part of a French company even though most of its plants are in Germany.

The merger is expected to help Fiat Chrysler get closer to meeting strict emissions standards with analysts expecting PSA’s electric and hybrid powertrains to help speed the transition. But Italian unions say that there needs to also be political involvement in the admittedly painful transition to electrified powertrains.

ASIA The merger is expected to do very little to help the two carmakers in the world’s largest market: China.

Despite a 2014 investment in Peugeot by the Chinese carmaker Dongfeng, there has been no real push to expand the French carmaker’s sales in the Chinese market. This seems to indicate that the two carmakers are not as intertwined in China as expected.

PSA Peugeot last year reported its sales in China down 34% in a market that slipped just 2%, with the Dongfeng joint venture posting losses last year of 234 million euros.

Fiat Chrysler, which produces four Jeep models in a joint venture with the Chinese company GAC, saw sales dropped 24% to 163,000 in 2018. It cited higher competition the SUV segment.

Fiat had just a 0.8% market share in China last year.

While China sales are off again this year, they are projected to keep growing in future years.

THE TRIBUNE

Thursday, October 31, 2019, PAGE 17 “My thoughts are with the people of Chile,” tweeted teen climate activist Greta Thunberg. “I’ve been making my way through the North American continent towards Santiago, but as #COP25 will be moved I will now wait until I have more information...”

The Santiago climate

AN ANTI-government protester dressed as the Joker holding a Mapuche flag, strikes a pose in front of police near La Moneda presidential palace in Santiago, Chile yesterday. Chilean President Sebastián Pinera cancelled two major international summits after nearly two weeks of nationwide protests over economic inequality that have left at least 20 dead and damaged businesses and infrastructure around the country.

Photo: Rodrigo Abd/AP

Chile cancels climate, trade summits amid protest chaos SANTIAGO Associated Press CHILEAN President Sebastián Piñera said yesterday that he is canceling two major international summits so he can respond to protracted nationwide protests over economic inequality that have left more than a dozen people dead, hundreds injured and businesses and infrastructure damaged.

The decision to call off the Asia-Pacific Economic Co-operation and UN global climate gatherings, planned for November and December, respectively, dealt a major blow to Chile’s image as a regional oasis of stability and economic development.

Piñera said he was forced to cancel both events due to the chaos unleashed by 12 days of protests. Demonstrators are demanding greater economic equality and better public services in a country long seen as an economic success story.

Shops have been vandalised and buildings set on fire, shutting down numerous subway stations.

The situation had stabilised somewhat by midday yesterday, Except for the presence of a few hundred protesters, the streets of the capital, Santiago, were mostly quiet, with no reports of vandalism.

“This has been a very difficult decision that causes us great pain,” Piñera said in a televised address. “A president always has to put the needs of his countrymen first.”

Opposition and pro-government parties in Chile generally welcomed the president’s decision, saying that having the summits was unrealistic given the circumstances.

Trade and climate negotiators scrambled to find new locations for their summits, aimed at resolving tariff-related conflicts between China and the US and finalising countries’ climate rules in advance of a bigger summit next year during which governments will be asked to commit to new emissions limits.

President Donald Trump and Chinese President Xi Jinping had hoped to sign a modest trade agreement at the APEC summit, formerly scheduled to take place in Santiago on Nov. 16-17. Under the tentative deal, the US had agreed to suspend plans to raise tariffs on $250bn in Chinese imports, and Beijing had agreed to step up purchases of US farm products.

White House spokesman Hogan Gidley said US officials were “awaiting potential information regarding another location”, but it was unclear if any had been proposed.

Gidley added that Trump wanted to sign the deal with China “within the same time frame”, hinting that a separate event could occur outside a summit.

The so-called Phase One trade agreement did little to address the underlying US grievances against China, including its alleged practice of forcing foreign firms to hand over trade secrets;

NOTICE NOTICE is hereby given that ANSON PETIT, of Palm Breeze Drive, Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24nd day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

stealing technology, and unfairly subsidising Chinese firms. China’s leaders have been reluctant to make the kind of policy reforms that would satisfy Washington, worrying such concessions would mean scaling back their aspirations to become a world leader in advanced technologies such as artificial intelligence and driverless cars.

Still, the apparent cancellation of the summit “removes a hard deadline for action toward a comprehensive agreement in the trade war,” said Jeff Moon, a former US diplomat and trade official specialising in China who is now president of the China Moon Strategies consultancy. “That hard deadline and the relatively short period of time available allowed Trump and Xi to give themselves permission to do only easy things and delay indefinitely resolving tough issues.”

Now, Moon said, “there is no excuse for not pressing forward with the full US agenda of concerns.”

Climate advocates said they were disappointed but expected to relocate their talks.

conference was meant to work out some of the remaining unresolved rules for countries on climate efforts, smoothing the way for the bigger effort in the 2020 summit: encouraging countries to up their commitments to cutting climate-changing emissions.

“The absence of rules does not stop countries from acting either alone or together” to cut emissions, said Nigel Purvis, a climate and environment negotiator in the administrations of Presidents Bill Clinton and George W Bush. “It really shouldn’t slow down climate action.”

PAGE 18, Thursday, October 31, 2019

THE TRIBUNE

S&P 500 hits new high as traders welcome latest Fed rate cut

By ALEX VEIGA Associated Press STOCKS closed broadly higher on Wall Street yesterday, sending the S&P 500 to a record high for the second time this week, as investors welcomed the Federal Reserve’s decision to lower interest rates for the third time this year.

The central bank also indicated that it won’t cut

rates again in the coming months unless the economic outlook worsens. The Fed has been using its power to cut short-term interest rates in a bid to shore up the economy amid the costly impact from the US-China trade war.

With its latest rate cut, the Fed has nearly reversed the four rate hikes that it made in 2018.

Stocks wobbled shortly

ENGAGEMENT OF AN AUDITOR AND CONSULTANTS FOR THE VARIOUS PROJECT REPORTS: PROJECT MANAGERS

after the Fed’s midafternoon announcement, which had been widely anticipated by traders. The market then rallied into the close, led by gains in technology and health care stocks. Bond yields fell.

“The rate cut was expected and also the market had been expecting a change in the language regarding another rate cut this year,” said Quincy Krosby, chief market strategist at Prudential Financial.

“The Fed just basically upped the bar for another rate cut by suggesting that the economy is in a good place.”

The S&P 500 index rose 9.88 points, or 0.3%, to 3,046.77. The benchmark index also hit record high on Monday.

The Dow Jones Industrial Average gained 115.27, or 0.4%, to 27,186.69. The

The Bahamas Environment, Science and Technology (BEST) Commission is seeking qualified individuals to provide consultancy services for Project Manager of Biodiversity and Climate Change Projects.

Nasdaq composite added 27.12 points, or 0.3%, to 8,303.98.

The Russell 2000 index of smaller company stocks fell 4.23 points, or 0.3%, to 1,572.85.

Major stock indexes in Europe closed mostly higher.

US stock indexes were mostly flat ahead of the Fed’s announcement yesterday.

The central bank’s latest move reduces the short-term rate it controls — which influences many consumer and business loan rates — to a range between 1.5% and 1.75%.

Lower rates are intended to encourage more borrowing and spending. Rising global risks have led the Fed to change course after hiking rates four times last year.

The market was expecting

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CERTIFIED FINANCIAL AUDITOR NEEDED The Bahamas Environment, Science and Technology (BEST) Commission of the Ministry of the Environment & Housing requires auditing of financial statements for internationally funded projects.

The complete Terms of References and process for responding to employment opportunities are available at The BEST Commission website www.best. gov.bs/projects/ Submissions can be directed to inquiries@best.gov.bs or call 322-4546

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, JEAN DATUS of Central Pine, Abaco, Bahamas, Parent of ADRIAN KIEVON PETITDE intend to change my child’s name from ADRIAN KIEVON PETIT-DE to ADRIAN KIEVON DATUS. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

SUBMISSION DEADLINE: November 29, 2019

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

WEDNESDAY, 30 OCTOBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,204.22 | CHG: -0.11 | %CHG: 0.00 | YTD: 94.77 | YTD%: 4.49 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 3.85 10.21 7.51 16.50 9.40 3.64 14.20

52WK LOW 3.65 20.91 4.90 4.46 1.01 0.22 2.00 9.25 6.15 3.95 6.75 2.35 1.76 7.51 6.10 12.10 6.20 3.01 13.01

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 2.27 4.31 2.07 194.86 158.57 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 3.70 17.43 6.00 5.92 2.46 1.80 4.70 11.06 6.16 4.12 8.01 3.43 3.85 10.21 7.51 16.50 9.33 3.54 14.20

CLOSE 3.67 17.43 6.00 5.92 2.46 1.80 4.70 11.06 6.16 4.12 8.01 3.49 3.85 10.18 7.51 16.50 9.33 3.54 14.20

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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 7,000

10

VOLUME

NAV 2.27 4.30 2.07 193.72 158.42 1.65 1.82 1.74 1.19 8.23 10.10 6.85 11.24 12.28 10.74 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

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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 15.4 18.7 N/M 16.0 N/M N/M -10.7 15.3 13.7 22.4 57.2 34.2 8.2 15.8 10.3 20.2 9.9 17.4 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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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% 2.77% 3.84% 1.38% 3.46% 2.03% 2.76% 4.99% 6.20% 7.18% -0.08% 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 30-Sep-2019 30-Sep-2019 27-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-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

another cut this month, which shifted investors’ focus to what the Fed might say about the prospects of further rate reductions.

During a news conference, Federal Reserve Chairman Jerome Powell signaled that the central bank will likely forgo additional cuts to its benchmark rates while economic growth and inflation matches the Fed’s outlook.

“A few weeks back, the shift in language suggesting at least a pause would have been a disappointment,” said Craig Birk, chief investment officer at Personal Capital. “But whether by design or not, we’ve seen a steady flow in expectations toward exactly what happened. So, it is not surprising the reaction is muted or moderately positive.”

The central bank’s rate reductions are intended as a kind of insurance against threats to the economy, which is in its 11th year of expansion, fueled by consumer spending and a solid if slightly weakened job market.

Yesterday, the Commerce Department said the US economy slowed to a modest growth rate of 1.9% in the July-September quarter. That surpassed economists’ forecasts for even weaker growth, however.

The report indicated that consumer spending downshifted and businesses continued to trim their investments in response to trade war uncertainty and a weakening global economy.

Technology and health care companies drove much of the market’s broad gains yesterday. Microsoft rose 1.3%, while Johnson & Johnson climbed 2.9%.

Those sectors helped offset losses in energy and financial stocks.

Energy stocks took the heaviest losses. Chevron slid 1.5% and Helmerich & Payne fell 4.3%. The sector dropped 2.1%, lowering its gains for the year to just 1.1%. That’s the smallest gain of all the sectors in the S&P 500.

Several big banks helped pull financial sector stocks lower as bond yields declined. The yield on the ten-year Treasury note dropped to 1.77% from 1.83% late Tuesday. The yield is a benchmark for interest rates that bank charge for mortgages and

other loans. JPMorgan dropped 0.6% and Bank of America slid 1.4%.

Investors continued to focus on a steady flow of corporate earnings.

Apple, Facebook and Lyft climbed in after-hours trading after reporting quarterly results that topped Wall Street’s forecasts. Twitter slumped after the social media company announced it is banning political ads from its service. CEO Jack Dorsey said advertising on social media offers an unfair level of targeting compared to other mediums that brings significant risks to politics.

Mattel surged 13.8% after the toy maker breezed past Wall Street’s third-quarter profit forecasts on strong sales of its Barbie and Hot Wheels brands. The company also put investors at ease when it said that it hasn’t seen any impact from tariff increases on toys imported from China ahead of the Dec 15 deadline.

General Electric jumped 11.5% after the industrial conglomerate raised its projections for a key measure of profitability despite a damaging trade fight and ongoing problems with Boeing’s 737 Max, which GE helps make engines for.

Molson Coors Brewing, which trades under the symbol “TAP”, fell 3.1% after announcing a restructuring plan as it faces declining beer sales. The company is laying off 500 workers worldwide as it streamlines operations in a bid to bring new products to market more quickly, like the canned wine and hard coffee it introduced this year.

Benchmark crude oil fell 48 cents to settle at $55.06 a barrel. Brent crude oil, the international standard, dropped 98 cents to close at $60.61 a barrel.

In other commodities trading, wholesale gasoline fell three cents to $1.66 per gallon. Heating oil declined five cents to $1.91 per gallon. Natural gas rose five cents to $2.69 per 1,000 cubic feet.

Gold rose $5.80 to $1,493.20 per ounce, silver rose four cents to $17.82 per ounce and copper fell one cent to $2.68 per pound.

The dollar rose to 108.97 Japanese yen from 108.81 yen on Tuesday. The euro strengthened to $1.1125 from $1.1110.