business@tribunemedia.net
THURSDAY, NOVEMBER 4, 2021
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MICHAEL HALKITIS
Insurance VAT return ‘not even on the table’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday said making homeowners insurance VAT-able was “not even on the table”, with legislation to effect the rate cut to be tabled in Parliament by next Wednesday. Michael Halkitis, minister of economic affairs, yesterday reassured property and casualty insurers that residential coverage will remain “VAT-free” after warnings that it would be “totally asinine” for the Government to reverse course on this issue amid plans to cut the tax rate to 10 percent. “That matter was not even on the table. That wasn’t even considered in these amendments,” he told Tribune Business in response to the insurance industry’s concerns. “That will remain VAT-free. “As they [insurers] said, I remember some time ago that there was another discussion about difficulties with reinsurers. The short answer is that did not come on the table. It’s just the zero-rated goods that will be impacted.” Mr Halkitis spoke out after the insurance
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Hotels won’t rebound to pre-COVID employment • BHTA chief: ‘Very difficult’ to recall all in new norm • But hails VAT cut for vacationboosting cost slash • Industry’s ‘bull in china shop’ remains CDC warning
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A TOP hotelier yesterday conceded it will “be very difficult” for existing Bahamian resorts to fully return to 100 percent of preCOVID staffing levels due to the changed working environment. Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business that ongoing health protocols and the increased use of technology meant industry employment - while recovering to numbers “fairly close” to those enjoyed prior to the pandemic - was unlikely to fully rebound.
Voicing optimism that tourism and resort expansion will “absorb some of those displaced”, he expressed confidence that business volumes for The Bahamas’ main industry and economic driver will return to pre-COVID levels during the January-April peak winter season in 2022. With multiple factors dictating the sector’s outlook, Mr Sands said the Government’s planned VAT rate cut to 10 percent will provide a further boost to tourism demand by reducing the cost of a Bahamian vacation and giving potential visitors the impression they are getting “increased value for money”.
New auto chief eyes VAT cut sales bump By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Motor Dealers Association’s (BMDA) newly-elected president yesterday voiced optimism that the VAT rate cut could spark a 10-20 percent uptick in consumer auto purchases. Ben Albury, Bahamas Bus and Truck’s general manager, who has replaced his long-serving namesake, Fred, told Tribune Business that even a two percentage point cut in the VAT rate could spur increased sales activity given that the tax was felt more keenly on “big ticket items” such as vehicles. “I think it’s god for the industry because that’s where we feel it the most; on the high-ticket items,” he said of the planned VAT rate cut to 10 percent. “It’s one thing when you’re buying small, but
in buying large items that two percentage points can make a big difference literally. “I’ve realised a big percentage of our sales are commercial deals with businesses. In those cases it BEN ALBURY does not have any impact, as all businesses who are VAT registrants can claim the tax back as an input or credit. On the consumer side, they can’t do that, so I expect it to make a big difference.” When asked how big this difference would be in terms of stimulating vehicle purchases, Mr Albury replied: “I would
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ROBERT SANDS
BTC revenues up 7% to $48m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Telecommunications Company (BTC) generated a 7 percent year-over-over increase in 2021 third quarter revenues after adding 3,000 Internet and TV subscribers in the period. Liberty Latin America (LiLAC), its ultimate parent, revealed that the carrier’s top-line for the three months to endSeptember 2021 jumped by $3.2m year-over-year, expanding from $44.6m in 2020 to $47.8m this time around.
No figures were provided for BTC’s profits, with LiLAC’s filings only showing the Bahamian carrier’s revenues, but the third quarter helped to solidify a $5.6m or 4.2 percent yearover-year top-line increase for the nine months to endSeptember 2021. BTC’s revenues rose from $134.9m during the same period in 2020 to $140.5m this time around. BTC declined to comment when contacted by Tribune Business, and there was no explanation provided for the factors driving the revenue growth by LiLAC. However, much of this is likely to have been driven
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THE TRIBUNE
UNLOCKING THE CREATIVE SPIRIT C
By
DEIDRE
BastiaN
reative people are those who imagine the possibilities and wonders of the world. They can immerse themselves in imagination and fantasy, yet remain grounded enough to turn their dreams into reality. They are often described as dreamers, but that does not mean they live with their heads in the clouds. Art must be creative as it is a product of our imagination. We can use art as an expression of our feelings, emotions and selves.
Does creativity flow in a happy or stressed mood? Creativity does not happen when we are stressed and highly emotional. Amy Arnsten, a neuroscientist at Yale University School of Medicine, says brain science backs that up. To maintain optimal brain function for creativity, she says, mood management is key - not happiness or purposefullygenerated-stress How important is creativity to a graphic designer? A graphic designer is responsible for creating
visuals to either sell a product, service or promote a message. Creativity demands focus and it is hard for an artist to flow if they are experiencing creator’s block. What is creator block? Just like writer’s block, creator’s block happens when you cannot find new ideas. It is common among artists and other creative professionals. Nonetheless, there are times when you have a major project due, and you have neither the time nor the patience for creator’s block.
What causes a creative block? One of the most common reasons for creative block is the fear of imperfection, which can prevent the pursuing of ideas or completing projects. Some anxieties, such as an overwhelming sense of dissatisfaction, can interfere with creative thought. Sometimes a block comes from having too much, not too little. You have taken on too many commitments, or have too many great ideas, and feel paralysed by options and obligations that come simply from working too hard for too long. Sometimes you may just be working in a manner that is not compatible with your creative process. You work too early, too late or too long, or perhaps you are trying too hard or not hard enough. There is not enough downtime or enough stimulation, or maybe you have not set up systems to deal with mundane tasks. These, then, interfere with your real work. There are two ways to approach this challenge; either solve it or find ways of coping until it passes. What is the solution? Step back and take a good look at how you are working, and where the pain points are. If you do not have enough energy, are you working at the right time of day? If you feel paralysed by freedom, introduce more structure and order into your day. If you feel constrained
by routine, find room for improvisation. There are no hard-and-fast rules. Look for the right balance of routine, and the spontaneity for your creativity to thrive. How can I become highly creative? Know what stimulates your creativity. There are activities that stimulate your creative thinking. Be observant and look at your environment. Be around people who are creative thinkers. Generally, maintaining creativity allows us to view and solve problems more openly with innovation. Creativity opens the mind and nurtures ideas. Creative block is normal. It happens to all of us, and is part of the creative process. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game. NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre M. Bastian is a professionally-trained graphic designer/brand marketing analyst, author and certified life coach with qualifications of A.Sc. B.Sc. M.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.
PHILLIP KEMP
BAHAMAS REALTY GROWS STAFF AMID ‘RECORD SALES’ BAHAMAS Realty yesterday said it has added another sales associate as part of an expansion designed to cope with a “record sales volume” that shows no signs of slowing. With real estate demand across multiple Bahamian islands continuing to break records monthover-month, the realtor said it is responding with a plan to ensure clients continue receiving exceptional service. “We are thrilled to welcome back realtor Phillip Kemp to the Bahamas Realty family”, said Donald Martinborough, the company’s chief executive. “Phillip works hard for every client with an unwavering commitment to achieving the best outcome. Fortunately, real estate is booming, and we are carefully selecting sales associates, like Phillip, to grow our team.”
Mr Kemp has been a licensed with the Bahamas Real Estate Association (BREA) for almost ten years, and possesses a Bahamas Realtors Institute (BRI) designation. He is also a Certified International Property Specialist (CIPS). “Helping people is what real estate is all about”, said Mr Kemp. “My goal is to satisfy my clients’ needs, ensuring they enjoy the process and look at it as more of an achievement than a transaction. I am very pleased to partner with a company that puts the client’s needs first.” “In terms of sales volume, it has been a record year for Bahamas Realty, and we see no indication of it slowing”, said Mr Martinborough. “Canada is open, flights from Canada are increasing and we are looking forward to an even greater winter season ahead.”
THE TRIBUNE
Thursday, November 4, 2021, PAGE 3
DELOITTE HIRED TO REVIEW $535M BPL REFINANCE By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Government has hired Deloitte & Touche to conduct a 30-day “rapid assessment” of Bahamas Power & Light’s (BPL) massive $535m refinancing, a Cabinet minister said yesterday. Alfred Sears QC, minister for works and utilities, told the House of Assembly that the Davis administration is “currently reviewing BPL” to determine if the proposed rate reduction bond (RRB) placement and other initiatives designed to restore the energy utility to financial and operational stability should proceed. “To carry out the restructuring, there was a Rate Reduction Bond to borrow, via private placement, about $523m [sic],” he said during his contribution to the Speech from the Throne debate. “That matter came before the Cabinet in June of this year. It was not approved and we are currently reviewing it.
“I would like to announce that the Government will be engaging Deloitte & Touche to do a rapid assessment over the next 30 days of the rate reduction bond, the hedge strategy and the operation of BPL so that the Government can get a very quick study in order to make decisions about the strategy going forward.” The “hedge strategy” refers to BPL’s fuel hedging strategy, which was put into place under the former Minnis administration and is due to end in June 2022 unless renewed. Still, Mr Sears’ announcement of the Deloitte & Touche review indicates that BPL’s $535m bond refinancing mechanism is not “dead in the water” as seemingly signalled by the Prime Minister last week. Philip Davis last week said the 20 percent increase in electricity costs that would have been imposed on BPL’s business and household customers, via an additional charge added to their bill that would be used to pay interest on the bonds to investors who
ALFRED SEARS QC purchased them, “cannot be justified”. However, cash-strapped BPL’s debt and operational woes are not going anywhere, and no alternative to the RRB has been announced by the Government for a financing mechanism that was viewed as the preferred option by both the last Christie administration and its Minnis successor. The Rate Reduction Bond Act 2015, which provided the legislative platform to facilitate the
COVID RULES TO SPARK BARBER PRICE INCREASE By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMIANS were yesterday warned to expect price increases at barbers, hair salons and spas due to capacity restrictions set to be impose under the Government’s new COVID-119 rules. Anton Minnis, the Bahamian Cosmetologists and Barbers Association (BCBA) vice-president, told Tribune Business that if the Health Services (COVID-19) Prevention and Management of Community Spread Rules 2021 are fully implemented it will increase operating costs for these sectors that have to be passed on to consumers via price hikes. He was speaking directly to provisions in the rules that mandate all barbers, hair salons and spas “shall ensure that the occupancy of the salon, barber shop or spa does not exceed one patron per service provider at any time”.
Mr Minnis said: “The difficulty is going to be that you take away from those that have the space to social distance. Now you’re asking them to have just one patron per service provider. It’s going to cause the cost of haircuts to go up, because you have to set up an appointment system.” While these appointments can be made online, he added: “Based on the protocols that they’re asking us to put in place, and that we’ve already been putting in place, they are now becoming more stringent. We are going to have to up our prices to be commensurate with all that needs to be in place on a constant basis.” Barbers and hair salons have been using the appointment system for at least eight months, but Mr Minnis said: “We do have walk-in’s as well. It’s minimal because you can have someone walk-in when there’s nothing happening in the store.” Further explaining why the cost of hair cuts
will have to rise due to the new protocols, Mr Minnis said: “You’re going to have to increase personal protection equipment, you’re going to have to increase the sanitisation department and ensure that your online presence is vibrant. That comes with a cost because someone has to monitor your Facebook or Instagram account.” The industry says there has been no contact with the Davis administration on the issue, which mirrors their concerns with the previous Hubert Minnis-led government over the implementation of COVID-19 health protocols. “We have not been in contact with them and they have not been in contact with us. We feel as though this could possibly be a continuation of what the prior administration probably was about to put in place. We don’t know. But it would have been good to have a conversation,” Mr Minnis said.
$535m refinancing, was passed by Parliament when Mr Davis was then-deputy prime minister and minister of works, with responsibility for BPL. Abandoning the bond now would waste years of work, and several sources yesterday suggested that Mr Sears’ announcement indicated the RRB will likely still proceed but be delayed until next year and possibly restructured in the hope better interest rates, and therefore lower costs for BPL consumers, can be obtained. And, if the bond does not proceed, the Government will be unable to pay out the $237m loan that the former administration transferred from BPL’s balance sheet to its own - a transaction that Mr Davis complained about as recently as last week. BPL’s outgoing Board has already pushed back against the Davis administration’s bid to kill-off the $535m refinancing by defending it as the “optimal solution”.
The departing directors, headed by chairman Dr Donovan Moxey, issued a statement reiterating that fuel price reductions and electricity generation efficiencies stemming from the proposed rate reduction bond’s (RRB) placement will - “within three years” - produce savings that outweigh the costs imposed on BPL customers from this refinancing. Suggesting that the bond’s debt servicing costs would initially increase energy bills by between 15 percent to 18 percent, slightly less than the 20 percent suggested by Prime Minister Philip Davis last week, the outgoing Board said this would amount to a rise of between $27 and $32 per month on the average consumer’s $180 bill. Pointing out that BPL’s $321m legacy debt is not going anywhere, and represents a “significant burden” to the utility’s cash flow worth $2m in monthly interest costs, the statement affirmed that the
Government (meaning Bahamian taxpayer) is having to pump cash into the state-owned monopoly to keep afloat because it is unable to borrow funds by itself. The outgoing Board argued that removing this debt by paying it back through the RRB proceeds, which will remain off BPL’s balance sheet, would leave the utility free to finance transmission and distribution and other key infrastructure developments while persisting with a hedging initiative said to have already reduced customer fuel costs by between 38-44 percent. Describing the RRB bond’s placement as critical to unlocking cheaper electricity prices and stable, more reliable, energy supply, the departing directors said the $535m raise was also a critical component in their plan for BPL to achieve “an annual operational profit of 5 percent to 7 percent of gross revenues”.
PAGE 4, Thursday, November 4, 2021
THE TRIBUNE
HOUSE DISPUTE ERUPTS OVER CONTROVERSIAL WATER PLANT By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A DISPUTE erupted in the House of Assembly yesterday over a troubled New Providence wastewater treatment plant that the new administration is pledging to finish “in the shortest possible time”. Bacchus Rolle, the Ministry of Works parliamentary secretary with responsibility for the Water & Sewerage Corporation, provoked several responses from its former executive chairman, Adrian Gibson, after asserting that the former Minnis administration did nothing to bring the Gladstone Road plant to completion during its four-and-a-half years in office. “In 2015, a New Providence sewerage master plan was prepared inclusive of an implementation plan up to the year 2030. In our briefing with officials of the Water and Sewerage Corporation, the minister [Alfred Sears QC] and I found that a water and sewage waste treatment plant began construction. I think, if I if I remember correctly, in about 2015,” Mr Rolle said. “This is a waste treatment plan that was designed, or the intent was, to be around $10m. Of course cost overruns pushed the plant to somewhere around $16m.” Mr Rolle was then interrupted by Mr Gibson, MP for Long Island, who said the cost was actually $18m. “Eighteen million? $18m. Thank you,” Mr Rolle replied. “Of course, the plant today is 95% completed, and as I understand it nothing has been done with regards to the plant since 2017.” That provoked a further intervention from Mr Gibson, who said: “He’s referring to the Gladstone Road wastewater treatment plant. He would note
that the previous government......” He was then interrupted by House of Assembly speaker Patricia Deveaux, who told him to obey House of Assembly protocols when referring to Mr Rolle. “The honourable member for South Beach is referring to a plant that began and ran into complications under the previous PLP administration,” Mr Gibson resumed. “The Government in 2017 entered into an agreement and undertaking with Baha Mar, and that agreement with Baha Mar included the Gladstone Road wastewater treatment plant in the Heads of Agreement with Baha Mar.” The Gladstone Road plant was vital to the Government meeting its Baha Mar obligations as it was supposed to treat the mega resort’s wastewater and return it to irrigate the $4.2bn project. Yet it was highlighted by a 2018 Ernst & Young (EY) forensic audit as an example of how politicallymotivated interference and mismanagement have cost the Water & Sewerage Corporation and Bahamian taxpayers millions of dollars. Despite a 91 per cent overrun on the original $9.6m budget, which had cost the Corporation some $18.3 million at that point, the EY report said further capital expenditure is required to complete the still-unfinished facility. Besides the capital loss on the wastewater plant’s construction, every day it remained unfinished cost the Water & Sewerage Corporation significant revenue and operating losses. This was because the Corporation was paying a non-completion ‘penalty’ to Baha Mar by supplying it with heavily discounted
BACCHUS ROLLE water to irrigate the Cable Beach development. “The Gladstone Road Waste Water Treatment Plant is capable of receiving waste water from Baha Mar, but is non-operational in the sense that the waste water is not being treated and returned for irrigation,” the EY report said. “Instead, the waste water is simply disposed of in the well. “Because the Gladstone Road Waste Water Treatment Plant is nonoperational, Water & Sewerage Corporation is currently providing Baha Mar with potable water at a substantial discount for irrigation purposes, further increasing the losses to the Corporation. “As a result of the substantial budget overruns and inoperable facility, Water & Sewerage Corporation management believes that the facility will result in substantial losses to the Corporation, both with respect to the recovery of capital as well as operationally going forward.” The Water & Sewerage Corporation’s mismanagement of the Gladstone Road project also created further potential liabilities for the Government and Bahamian taxpayer, given that its completion was among the ‘infrastructure improvements’ the last Christie administration committed
ADRIAN GIBSON
to with Baha Mar’s new owners, Chow Tai Fook Enterprises (CTFE). The project’s Heads of Agreement required the Government to “take measures to address the completion of a waste treatment facility to be operated by the Water & Sewerage Corporation that can provide useable brown water to the project”. The Heads of Agreement gave the Government until December 31, 2017, to achieve this - a deadline that has long passed. This effectively relieves CTFE/ Baha Mar of their obligations under the agreement, according to the document, although there has been no indication that the developer has invoked or acted upon this clause. The EY report also detailed where “an unidentified government official” directed the Ministry of Finance to make a $1m payment to the Gladstone Road plant’s contractor, Nassau Island Development Company, against the objections of the Corporation’s Board, Water & Sewerage Corporation management and then-Ministry of Works’ permanent secretary, Colin Higgs. “This payment circumvented all internal controls of the Corporation and severely handicapped Water & Sewerage Corporation’s ability to adequately
manage Nassau Island Development Company,” EY found. “Further, because this $1m payment was made directly from the Ministry of Finance, it is not included in the $17.3m spend allocated to Gladstone Road Waste Water Treatment Plant on Water & Sewerage Corporation’s books and records, suggesting that the true cost to-date of the Gladstone Road Waste Water Treatment Plant is $18.3m. This would result in a budget overrun of approximately 91 per cent for a non-operational asset.” Mr Rolle, though, yesterday pledged: “It is the intent of this administration to complete the Gladstone Road wastewater treatment plant in the shortest possible time.” And Mr Sears later intervened by confirming the debacle had placed the Government in breach of its Baha Mar Heads of Agreement. “I’m advised by the attorney general that the Government breached the MoU (memorandum of understanding), and has been in breach for the past three years. The facility was in the hands of Water & Sewerage, and for whatever reason.........” Mr Rolle, meanwhile, provoked a further intervention by Mr Gibson when he accused the former Water & Sewerage
Corporation Board, which was headed by the Long Island MP, of failing to consult management over the decision to end a contract responsible for slashing its non-revenue water losses by two-thirds. “The outgoing Board, with no reference to the Corporation’s management, and no feasible alternative plan, has decided that the contract with Miya Bahamas will expire in April 2022 and not be extended,” he added. Mr Gibson, though, branded this “absolutely untrue”. He added: “The outgoing Board did not advance such a position without speaking to management.” The Long Island MP said management had over the past two-three years identified Water & Sewerage Corporation staff to go on training courses run by Miya so they can take over the project when the contractor leaves. However, Mr Rolle replied: “This is rather strange. The same general manager [Elwood Donaldson] the member for Long Island had is the same general manager providing me with this information, but I continue.” He and Mr Gibson also clashed when Mr Rolle suggested that the Water & Sewerage Corporation had suffered from “an inequitable distribution of capital works across all islands” under the Minnis administration, implying that these were concentrated in the Long Island MP’s constituency. Mr Gibson vehemently denied this, asserting that works occurred in all islands, while acknowledging that Long Island did receive “attention”.
THE TRIBUNE
Thursday, November 4, 2021, PAGE 5
GB UTILITY COMPLETES WATER SUPPLY RESTORE GRAND Bahama Utility Company (GBUC) says it has restored full water potability by completing the $5m construction of its three-million gallon reverse osmosis (RO) plant. The water provider, in a statement, said work on the solution to its post-Dorian challenges began in January 2021 after months of surveying, studies, design and engineering. Despite having to contend with COVID-19 and supply chain issues, GB Utility said its contractor, Bahamas Hot Mix (BHM), and other local partners worked together to ensure Grand Bahama residents will have a reliable, potable water supply for years to come. Ebbe Saidi, BHM’s general manager, said, “From the outset of our engagement with GB Utility, our strategy was to develop a customised reverse osmosis system that would return 100 percent potability to the island of Grand Bahama. “We worked with the utility to develop an engineering design, which includes resiliency and ease of mobility. From there, our collaboration continued with project management, implementation and
product delivery, and now testing and commissioning.” GB Utility’s investment in the reverse osmosis plant was sparked by Hurricane Dorian’s devastating impact. The Category Five storm inflicted $3m in damage to the utility’s infrastructure, including four feet of flood water that contaminated two of its wellfields. Some 21 feet of flooding, which occurred over 36-hour period, impacted GB Utility’s fresh water aquifer at Wellfield 6, which supplied over 60 percent of Grand Bahama’s potable water pre-Dorian. The storm also resulted in the destruction of utility poles, wires, electrical components, control and monitoring systems. “Now that the reverse osmosis facility construction is complete, we will test and monitor the quality of the water for 30 days as required by regulatory protocols,” said Remington Wilchcombe, GB Utility’s operations manager. “Following Hurricane Dorian, our system was inundated with salt, so our team has to ensure that the old water is completely flushed out and only fresh water is provided. After
any major storm event, GB Utility is required to conduct testing and have our results validated by an independent source for a consistent 30-day period, in order to meet regulatory standards. “Customers may notice the higher quality of the water during this time. However, our testing will continue until we have fulfilled the regulatory requirement and received approval to officially declare full potability. During this period, the 25 percent discount will remain in place and we will still be providing free drinking water via the depots.” Since Dorian’s passage, GB Utility said it has spent more than $500,000 to provide water depots for residents to access free, potable water. And the 25 percent discount on water bills has resulted in a significant loss of revenue. To ensure a resilient utility with storm-hardened infrastructure, GB Utility funded $5m for the reverse osmosis investment and will see incur higher operating costs going forward as a result. The water supplier has also absorbed $2m in post-Dorian recovery costs.
Philcher Grant, GB Utility’s director of operations, said: “We truly understand how difficult and taxing this ordeal has been for residents, and the same is certainly true for our team. We not only work here, but we also live here as well and
understand fully the burden and challenges that have been borne by all. “We are pleased to have achieved this very important milestone not only for GB Utility, but also for the residents of our island. We would like to thank all
of our customers, big and small, for their patience. This has been quite a journey, but we are grateful that the utility is able to provide all residents with the service they need and deserve.”
PAGE 6, Thursday, November 4, 2021
PM TOURS CARNIVAL’S ‘FLAGSHIP’ IN NASSAU THE Prime Minister and members of his Cabinet were invited to tour Carnival Cruise Line’s Mardi Gras vessel when it last week docked in Nassau on its maiden voyage. Christine Duffy, Carnival’s president, and Captain Vincenzo Alcaras welcomed the Bahamian delegation for a tour and luncheon meeting. The ship, flying the Bahamian flag, was carrying more than 4,300 guests who participated in shore excursions and activities during the day-long visit. “We are thrilled to be visiting Nassau with our flagship Mardi Gras and welcoming Prime Minister Davis and his leadership team aboard,” said Ms Duffy. “Carnival has a longstanding relationship with The Bahamas, and we look forward to working closely with the Prime Minister and his Cabinet as we continue to restart ships in our fleet, bring more guests to The Bahamas, and demonstrate our commitment to the health, safety and wellbeing of our guests, crew and the destinations we visit.” Carnival said it has also reflagged two additional vessels, Carnival Legend and Carnival Spirit, on The Bahamas shipping registry, bringing the total number of the cruise line’s vessels registered in the country to six.
THE TRIBUNE
DOMENICO ROGNONI, senior vice-president of compliance for Carnival Cruise Line; Christine Duffy, president of Carnival Cruise Line; Philip Davis, Prime Minister; Micky Arison, chairman of Carnival Corporation
MICKY ARISON, chairman of Carnival Corporation, and Philip Davis, Prime Minister.
“We value our business relationships across The Bahamas, whether it is our investments in destinations and facilities such as the Grand Bahama
Shipyard, the local tourism and excursion partners that employ many Bahamian citizens, or the Bahamas Maritime Authority that shares our commitment to
safety and environmental protection,” said Domenico Rognoni, Carnival’s senior vice-president of compliance. “We’re proud and honoured to continue to expand the number of ships we have registered here. The Bahamas’ insight, co-operation and professionalism in all aspects of our business play a key role in our maritime operations.”
Carnival Legend is scheduled to replace Carnival Pride in Baltimore before resuming year-round operations on November 14, while Carnival Spirit, based in Australia, is on a pause in guest operations through February 2022. Mardi Gras, Carnival Sunrise, Carnival Sensation and Carnival Sunshine are the other
Carnival ships registered in The Bahamas. Mardi Gras is the first cruise ship in the Americas to be powered by liquefied natural gas (LNG) and features BOLT, the first roller-coaster at sea. Mardi Gras is sailing year-round from Port Canaveral, offering seven-day itineraries to the eastern and western Caribbean, and stopping in Nassau every other week.
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BTC REVENUES UP 7% TO $48M FROM PAGE ONE by the economy’s re-opening and tourism industry rebound. Such activity was largely depressed for the last nine months in 2020, including six months’ comparison with this year’s results to-date, and BTC is likely earning increased roaming revenues as visitor numbers to this nation grow and more Bahamians travel themselves. Data provided by LiLAC showed that BTC added 2,900 fixed-line subscribers, broken down into 2,100 broadband Internet additions and 800 new TV customers, during the 2021 third quarter. However, it continues to experience attrition in its mobile customer base due to fierce competition with Aliv, with subscribers in this area falling by 2,600 during the period. BTC lost 200 post-paid customers, and another 2,400 pre-paid mobile subscribers, during the quarter. This left it with 175,100 total mobile subscribers at endSeptember 2021, broken down into 32,900 post-paid clients and 142,200 who are pre-paid. On the fixed-line side, it has some 75,300 subscribers divided into 34,600 telephone customers; 31,200 Internet clients; and 9,500 TV takers. The total number of homes passed by BTC’s fibre-to-the-home network now stands at 120,900. The Bahamian carrier’s third quarter performance was less impressive than the previous three-month period, when it enjoyed a
16.3 percent year-over-year increase in 2021 second quarter revenues despite losing close to 3,000 prepaid mobile subscribers. BTC’s top-line for the three months to endJune rose by almost $7m compared to prior year numbers, jumping from $41m to $47.7m. This, in turn, helped propel the Bahamian carrier to a modest 2.6 percent increase in 2021 half-year revenues, more than offsetting the first quarter decline to produce a $92.7m topline compared to the prior year’s $90.3m. BTC’s 2021 second quarter numbers were up against weak comparatives from the prior year, as that was the period which endured the bulk of COVID-19 lockdowns and associated restrictions. Yet it also increased its postpaid mobile subscriber numbers by 400 during the 2021 second quarter, increasing the total to 33,100. This is the more lucrative, stable segment of the market representing higher margin customers on long-term contracts. Andre Foster, BTC’s chief executive, earlier this year admitted to Tribune Business that the carrier faces “a real day-by-day fight” to reclaim mobile market share lost to Aliv. However, he said the carrier is “pretty confident” that the erosion of its mobile subscriber base has “bottomed out”, adding that BTC believes new products it plans to launch will “help us reclaim some of our mobile subscriber base”.
NEW AUTO CHIEF EYES VAT CUT SALES BUMP FROM PAGE ONE say maybe 10-20 percent. I think it’s [the cut] going to alleviate a lot of the other expenses that people have to deal with day to day, including with their vehicle, such as when they buy tyres, when they buy gas. Any type of relief will be welcome.” Given the high unemployment and under-employment levels associated with COVID-19, as well as the reductions in salaries and working hours for many, some observers are likely to view Mr Albury’s forecast of a rise in vehicle sales as somewhat optimistic. Consumer confidence remains low, and it is unclear whether this can be restored solely by cutting the VAT rate. However, the newlyelected BMDA president added: “I just did some work on my house, and a two percentage point difference on that larger scale restoration, that would make a big difference especially for week-to-week cash flow. “If you purchase big ticket items that’s where you feel VAT the most. I sold a vehicle to a gentleman last week and VAT was just under $10,000. It’s a big ticket item but all relative to scale. It’s adding up. “I’ve heard people talk about the breadbasket items, but I’m hoping the cut encourages people to spend more as the economy continues to open and hopefully that results in the Government collecting more revenue as people go back to work. I was happy to see the removal of the curfew. It’s a step in the right direction.” Mr Albury also described the imposition of price controls on the Bahamian auto industry’s vehicles and parts as “always the white elephant in the room”. He told Tribune Business: “It’s been discussed with successive governments, and more and more in this age I don’t see the need for price control in the automobile industry. “It’s a very, very competitive industry as it is, especially with consumers able to shop offshore. We have to regulate ourselves
to some degree to remain competitive in the market. If I out-price on vehicles and parts, people go elsewhere. We make far less on new and used cars than the Government allows, and far less on parts. “Where it’s removal comes in handy is that I may get a deal on parts. I may get a deal on filters. Let’s say I’m selling them for $8 and get a deal for $7, which means I can sell them at a higher profit. But right now I’m tied to a price-controlled mark-up and cannot do that.” Describing price controls as more suited to a “socialist” economy rather than the free market system that The Bahamas professes to be, Mr Albury said that while he “understood” the need for such regulations on food and other essentials there was sufficient competition in the auto sector to keep prices keen. Disclosing that there were no pressing “hot topics” for the BMDA to discuss with the Government, he added: “A lot of the issues we are facing are from external sources we don’t have any control over. The number one priority is finding inventory. “Number two priority is shipping and logistics, and number three priority is getting what we want when we need it. A lot of dealerships cannot get any inventory.” Both Fred Albury and Rick Lowe have stepped down as the BMDA’s long-serving president and treasurer, respectively. Ben Albury said the duo had “decided to let the younger blood take the reins”, although both will be available to offer support and advice. Besides Ben Albury as president, the new Board features LJ Albury, of Omega Motors/Auto Mall, as vicepresident; Dwayne Higgs, Whim Automotive, as secretary; and Jason Watson, Automotive Industrial Distributors (AID), as treasurer.
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PAGE 8, Thursday, November 4, 2021
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HOTELS WON’T REBOUND TO PRE-COVID EMPLOYMENT FROM PAGE ONE Hopeful that 50 percent of Bahamian citizens and residents will be fully vaccinated by Christmas this year, he warned that “the bull in the china shop” for tourism is The Bahamas’ continued ‘Level 4’ or ‘do not travel’ status with the US federal health authorities due to the recent surge in COVID-19 infections and cases. Improving this ranking “in the shortest possible time” would “be a major, major plus” for tourism’s ongoing recovery prospects, Mr Sands added, given that the present Centres for Disease Control and Prevention (CDC) ranking is a major deterrent to both
leisure and, particularly, group travel. Asked about the hotel industry’s prospects of returning to pre-COVID employment levels, the BHTA chief told this newspaper: “I don’t think it will be right back to preCOVID levels, but it will be fairly close, would be the honest answer. “I think COVID has introduced certain conditions that have resulted in the reduction of some manpower needs, and the use of technology, and it will be very difficult to get back to pre-COVID manpower levels but the expansion of the industry will absorb some of those displaced individuals.”
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Mr Sands said he did not possess exact figures for how many staff have been recalled to work by Bahamian resorts and other tourism-related businesses, but added that “opportunities are being created for people to be re-engaged in other areas”. He added: “I can tell you the overwhelming majority have been recalled, and as some of these emergency orders fall away and curfews are lifted etc, there will be greater opportunities for more opening of facilities in hotel, which will cause for more and more people to be re-employed.” With the COVID emergency powers set to expire on November 13 and not be renewed, employers and employees will have to brace for the end to the furlough period some 30 days later in mid-November. The non-renewal means that previously suspended Employment Act provisions, which required employers to recall furloughed workers after 90 days or pay due severance, kick back in. Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s president, recently estimated to this newspaper
that between 35-45 percent of his members and resort workers in general were still on furlough, although he did not possess exact numbers. Based on Mr Sands’ comments, a minority will not be recalled and will have to seek employment elsewhere. However, opportunities do exist, as indicated by the recent Sandals job fair where it is seeking 300 new recruits - 200 for the Royal Bahamian property, and 100 for Emerald Bay. The hotel chain is also recalling hundreds on furlough for Royal Bahamian’s end-January 2022 opening. The BHTA president, meanwhile, said the upcoming VAT rate reduction from 12 percent to 10 percent would benefit the hotels and wider tourism sector given that the tax is levied on virtually all aspects of their business and the services/amenities provided to guests. Room rates, food and beverage, spas, and even golf and other visitor attractions all attract VAT, Mr Sands added, noting that even a two percentage point could provide tourists with significant savings given that a Bahamas vacation is a high cost, big ticket item. “The VAT reduction will help the cost of vacations,” he told Tribune Business. “Where you make the vacation where the visitor feels there’s tremendous value for money, and you are able to provide savings for the
traveller, that’s a very significant motivator for people to travel.” But, while bookings and reservations continue to increase, Mr Sands warned that the pace had tapered off - which he attributed, at least in part, to the CDC’s ‘Level 4’ “don’t travel” warning against The Bahamas due to the recent spike in COVID-19 cases. “The bull in the China shop that remains for us is a reduction in the CDC’s ‘Level 4’ for The Bahamas to something better than that,” Mr Sands revealed. “That would make a tremendous difference.” The impact was acknowledged by Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, during his House of Assembly presentation earlier this week, and the BHTA chief voiced optimism that his advocacy efforts, as well as those of the Prime Minister and Fred Mitchell, minister of foreign affairs, would bear fruit “in the shortest possible time”. “The sooner that happens it will be a major, major plus for the tourism sector,” Mr Sands said of an improvement in the CDC assessment. “It hurts both travel segments, but certainly hurts the group sector more and delays decision-making for future groups. It’s an opportunity lost in the short-term but also applies to the medium and long-term.” Still holding to his prediction that the hotel and
tourism industry will have recovered 85 percent of pre-COVID business volumes by year-end, with the Thanksgiving and Christmas holiday seasons fast approaching, he added: “Business continues to trend in an upwards direction. It has slowed, possibly as a result of the ‘Level 4’ advisory, but I’m confident we will get to that level. “Things have slowed, but we’re still seeing a weekon-week increase in the numbers. The removal of ‘Level 4’ would make a significant difference, but they are trending positively.” Mr Sands also voiced optimism that improving Bahamian vaccination rates, and the increased availability of vaccines with more than 125,000 Pfizer shots arriving yesterday, would further aid tourism by giving potential visitors the impression this nation is relatively safe and sticking to health protocols. “We’re certainly not where we want to be for vaccines, but soon we will be close to 40 percent fully vaccinated and hopefully by Christmas we will be at 50 percent, so that is an important motivator for people to travel,” he added. “At this point in time we have to live with it, and just manage the situation in such a way that we continue to create a safe environment not only for the people that want to come and stay with us but also work for us.”
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INSURANCE VAT RETURN ‘NOT EVEN ON THE TABLE’ FROM PAGE ONE industry warned via this newspaper earlier in the week that reintroducing VAT on residential homeowner premiums would create a multi-million dollar hurricane liability for the Government. Anton Saunders, RoyalStar Assurance’s managing director, warned that if the exemption was removed it would potentially expose the Government to multimillion dollar VAT refunds payable to insurers on hurricane-related claims, something that the cashstrapped Public Treasury can ill-afford at this time. However, the minister’s clarification should address any confusion in the insurance industry. Mr Halkitis confirmed to Tribune Business that the final decision on what VAT ‘zero ratings’ and ‘exemptions’ will remain, and which will go, was taken at Tuesday’s Cabinet meeting. He added that “very few” items would remain in these categories, with educational and “certain medical” services retaining their VAT-free status. Electricity and water bills will also be exempt from the tax below their existing thresholds. Mr Halkitis said an “adjustment” had also been made for the Bahamian financial services industry, where it had asked the Government to “clarify some items”, although he provided no specifics on this. With the Prime Minister having pledged that the VAT rate cut, from 12 percent to 10 percent, will take effect from January 1 at latest, Mr Halkitis said the enabling legislation will be tabled in the House of
Assembly “most definitely by Wednesday of next week”. He confirmed that the Davis administration is “going back to the status quo” that existed before 2018, when the former Minnis administration introduced multiple VAT exemptions and zero ratings on the basis that this would alleviate the burden that the tax imposes on lower income families. So-called breadbasket foods that are presently VAT-free include baby foods and cereals; rice; butter; corn beef; flour; and fresh milk. And current VAT-free medicines also include those for heartburn and indigestion; aspirin; cough, cold and allergy medications; and those that deal with pain and fever. Confirming that these products will now be VATable again at 10 percent, Mr Halkitis said: “We’re going back to the low-rate, broadbased mode and that’s the best advice we have received.... “Simplify it, close the loopholes, reduce the opportunity for fraud, reduce the administrative burden, we expect that to contribute to increased revenue collections. That’s what the model is telling us.” He added that the VAT rate cut, and elimination of zero-rating and exempt treatments, would work with the revival of the Government’s Revenue Enhancement Unit (REU) to grow the Public Treasury’s income beyond what it currently earns at a 12 percent rate. Tourism’s ongoing recovery will also provide “more
buoyancy”, Mr Halkitis added, with the increased economic activity generated boosting consumer spending and the consumption-based activity that VAT thrives upon. Acknowledging the concerns about the impact on lower income Bahamian families, he said: “It’s a sensitive topic, but all the research and our experience shows that it would be best to keep a low rate with few exemptions and target assistance to those most vulnerable. “All the studies tell you to keep it simple, and if the most vulnerable are in need of benefits, give it to them directly.” Mr Halkitis said targeting such persons with social assistance benefits, via the reinstated Conditional Cash Transfer (CCT) programme, will be a more effective and efficient means of doing this than the breadbasket and medicine zero ratings. While these would have benefited “the housekeeper and mother on East Street”, high income earners and businesses who could afford to pay more also enjoyed the benefits flowing from these tax breaks. “Any time you’re talking about taxation and dealing with these issues, they are very sensitive and very emotive,” Mr Halkitis told Tribune Business. “We understand that. They can be politically explosive and we have to defend it. “But, in the long run, we think it’s the right thing to do. We think we can have the direct cash system in place in time for when we put this in, so we do away with long lines and that sort of thing.”
A recent University of The Bahamas study found that cutting the VAT rate to 10 percent will cause “only slight improvement” in job creation and economic growth, but advocated it still “be pursued’. The report, prepared by the university’s Public Policy Institute for the Ministry of Finance, also warned that the two percentage point cut planned by the Davis administration would worsen key fiscal indicators such as the fiscal deficit and debt-to-GDP ratio. Adding that the tax cut would have no impact on
Thursday, November 4, 2021, PAGE 9 reducing income inequality in Bahamian society, it called for “compensating tax revenue initiatives” to offset the reduction in VAT revenue caused by slashing the rate from the existing 12 percent to 10 percent. “It was found that reducing the VAT rate by two percentage points, from 12 percent to 10 percent, shows only slight improvements in the real GDP, unemployment rates, prices and poverty levels,” the study said. “There is, however, a worsening of the current account, the fiscal deficit and the debt-to-GDP ratio..... If the priority is to benefit the economy, if only slightly, the VAT reduction should be pursued.
“However, and at the same time, there must be compensating tax revenue initiatives to address the rise in the deficit and debtto-GDP ratio.” While the UoB study thus gives cautious backing for a VAT rate cut that will likely be welcomed by many Bahamian businesses and consumers, it indicates that the economic impact will largely be modest - and negative for the Government’s finances. However, it is unclear whether the UoB study’s VAT cut modelling accounts for the multiple exemption and zero-rating eliminations planned by the Davis administration, making it impossible to judge whether the exact 10 percent structure was assessed.
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FED PULLS BACK ECONOMIC AID IN FACE OF RISING UNCERTAINTIES By CHRISTOPHER RUGABER AP Economics Reporter WASHINGTON (AP) — If you find the current economy a bit confusing, don't worry: So does the nation's top economic official, Federal Reserve Chair Jerome Powell. At a highly anticipated news conference Wednesday, Powell said the Fed was sticking by its bedrock economic forecast: COVID-19 will eventually
fade, which, in turn, will enable supply chain bottlenecks to unsnarl. More people will return to the workforce, the economy will strengthen and inflation pressures will ease. And yet the nation's leading economic figure acknowledged that it isn't at all clear when or even whether things will play out the way he and other Fed officials hope. And so far, they haven't. The Fed won't likely gain a clear view of inflation and the job
market, Powell suggested, until COVID-19 and its economic consequences — reduced travel, diminished spending, supply and labor shortages — further ease. "We hope to achieve significantly greater clarity about where this economy's going and what the characteristics of the post pandemic economy are over the first half of next year," he said. It's a view Powell has maintained even as inflation has jumped to a IN this Sept. 30, 2021, file photo, Federal Reserve Chairman Jerome Powell testifies during a House Financial Services Committee hearing on Capitol Hill in Washington. Powell says the tangled supply chains and shortages that have bedeviled the U.S. economy since this summer have gotten worse and will likely keep inflation elevated well into next year. Photo:Sarah Silbiger/AP three-decade high, imposing a burden on households that are paying more for food, rent, heating oil and other necessities. In his remarks Wednesday after the Fed ended its latest policy meeting, Powell acknowledged the hardships that higher prices have inflicted on many families. "People who are living paycheck to paycheck or seeing higher grocery costs, higher gasoline costs ... we understand completely what they're going through," he said. In the meantime, the Fed said, it will begin to try to counter those inflation
pressures by reducing its $120 billion in monthly bond purchases by $15 billion a month, starting this month. Those purchases, launched last summer, have been intended to hold down long-term interest rates to spur borrowing and spending. With the economy recovering, they aren't needed, Powell suggested. The Fed could alter the pace of its tapering, it said in a statement. It might, for example, accelerate the reductions, if inflation worsened. But if it sticks with that pace, the bond buys would end by June. That would allow the Fed to possibly raise its benchmark
short-term rate, which affects a broad range of consumer and business loans and is now pegged at zero, as soon as that month. Some economists and investors expect the Fed to do just that. Raising rates in June would be much earlier than was expected as recently as this summer, when Fed policymakers forecast that they wouldn't do so until late 2023. At his news conference, though, Powell downplayed the likelihood of a rate hike anytime soon. He said unemployment is still too high, with 5 million fewer people working than before the pandemic.
JOB POSTING
Customer Service Representative Job Reference: #02/2021 Date Posted: November 3, 2021
Date Posting Ends: November 8, 2021
General Accountability: The Customer Service Representative is directly responsible for providing a high level of professional and personalized customer service. The incumbent responds to inquiries and instructions in a responsive and courteous manner; Prepares and files correspondence, invoices and reports for external and internal persons. This position interfaces with external and internal customers to process their requests and responds to queries; and in so doing create exceptional customer experiences to build long lasting customer relationships for the company. Key Responsibilities: • Provides excellent customer service to internal and external customers • Responsible for responding to all customer emails and queries • Responsible for forwarding invoices to the Warehouse • Records Tracking details for customers for incoming shipments • Responsible for scheduling of US Package Pickups • Responsible for monitoring delivery app/scheduling deliveries • Responsible for receiving and processing of customer payments in QuickBooks. • Assists with customer billings • Organizes and maintains a filing system, correspondence and confidential records. • Provides support to the General Manager, to ensure all administrative tasks are achieved; Other sundry duties may be assigned by the General Manager Minimum Requirements: • 5 BGCSE’s (inclusive of Math & English) • High School Diploma • Strong administrative and organization skills. • Working knowledge of Quick Books • Strong knowledge of Microsoft Office suite of products • Excellent oral and written communication skills • Sound judgment required to handle high level office matters and treat information with confidentiality • High energy and ability to work collaboratively as part of a team All applications must be submitted by Monday, November 8, 2021 to hroperations2k21@gmail.com. Applicants must submit an updated cover letter, resume. Applicants must also possess a clean Police Record and Driver’s License.
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Thursday, November 4, 2021, PAGE 11
FRANCE FREES UK TRAWLER CAUGHT UP IN CHANNEL FISHING DISPUTE
By JILL LAWLESS AND ANGELA CHARLTON Associated Press LONDON (AP) — A British-registered scallop boat caught up in a postBrexit spat between the U.K. and France over fishing licenses has been released by French authorities, its owner said Wednesday. Andrew Brown, head of public affairs for Macduff Shellfish, which owns the scallop dredger, said the Cornelis Gert Jan had departed Le Havre in northern France. French maritime police seized the vessel off the Normandy coast last week and detained its skipper and crew. The boat, which was detained over a paperwork infraction, has become a symbol of a bigger feud between the U.K. and France over fishing rights in the English Channel since the U.K. withdrew from the European Union.. "We are pleased to have this matter resolved and delighted that our crew and vessel are now able to return home," Brown said. "The crew have acted with calmness and professionalism throughout the entire incident. They are in good
spirits, looking forward to return to their loved ones and are grateful for all the messages of support received from the British public." The French and British governments have traded threats and allegations for weeks over French demands for licenses to fish in U.K. waters. France complained that dozens of its boats were denied licenses to fish in waters around Britain and the Channel Islands of Jersey and Guernsey, which are selfgoverning British Crown dependencies close to the coast of northern France. Fishing is a tiny industry economically for both countries but with outsized political importance, and the dispute has mushroomed into an important test for Britain's relations with the European Union after Brexit. France has threatened to close its ports to some British boats and to impose strict checks on boats and trucks carrying U.K. goods, if more licenses are not granted. Paris also at one point suggested it might restrict energy supplies to the Channel Islands, which are heavily dependent on French electricity.
BOXES of scallops in the port of Granville, France, Nov. 2, 2021. A British-registered scallop boat caught up in a post-Brexit spat between the U.K. and France over fishing licenses has been released by French authorities, its owner said Wednesday Nov. 3, 2021. Photo:Jeremias Gonzalez/AP
The French government originally said it would impose the sanctions if no resolution on the license dispute emerged by Tuesday. It pushed back the deadline, and then said Wednesday that the measures were on hold at least through Friday, while talks involving French, British and EU officials continue. Britain says a blockade would breach the Brexit withdrawal agreement and that the issue behind the dispute is is a technical one related to some French
boats' lack of paperwork to prove they have traditionally fished in the areas where they want to keep working. But France sees it as a matter of principle, and has accused Britain of breaching its legally binding divorce deal with the
European Union, which sets the rules for fishing in the post-Brexit era.. French President Emmanuel Macron and British Prime Minister Boris Johnson were peppered with questions about the diplomatic dustup as they attended a Group of 20
summit in Rome and the COP26 climate conference in Glasgow over the past week. The impounded trawler is not one of the vessels involved in the licensing dispute, according to the captain's lawyer. Mathieu Croix, the lawyer for skipper Jondy Ward, said a French court on Wednesday ordered the boat's release. The court in Rouen annulled last week's seizure, Croix told The Associated Press. French maritime authorities, who seized the boat in the Le Havre port last week, did not immediately respond to the ruling.
PAGE 12, Thursday, November 4, 2021
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STOCKS RISE AFTER FED SAYS IT WILL DIAL BACK AID FOR ECONOMY TRADERS GREGORY ROWE, left, and Michael Milano work on the floor of the New York Stock Exchange, Wednesday, Nov. 3, 2021. Stocks are opening slightly lower on Wall Street as investors look over another big batch of earnings reports from U.S. companies, which contained some disappointments. Photo:Richard Drew/ AP
By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers STOCK indexes on Wall Street shrugged off a downbeat start and notched more record highs Wednesday after the Federal Reserve announced plans to begin reducing the extraordinary aid for the economy it has been providing since the early days of the pandemic. The S&P 500 rose 0.6% and the Dow Jones Industrial Average added 0.3%, both marking their fifth straight gain. The Nasdaq climbed 1%, extending its winning streak to an eighth day. All three indexes set their latest record closing highs a day earlier. In a statement released at 2 p.m. Eastern, the Fed said it will begin reducing its $120 billion in monthly bond purchases in the coming weeks by $15 billion a month. If that pace is maintained, the Fed could be done winding down its bond purchases as early as June. At that point, the Fed could decide to begin raising its key short-term interest rate, which affects many consumer and business loans. The central bank reserved the right to change the rate at which it reduces the bond purchases, which have been intended to hold down long-term rates and spur borrowing and spending. The Fed’s announcement was in line with what economists and markets expected as the central bank moves to combat inflation that now looks likely to persist longer than it did just a few months ago. “Much of the bond tapering announcement was already priced into markets and shouldn’t have come as a surprise to anyone that was paying attention to what the Fed has been indicating for most of this year,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. “But the markets are already turning their attention to how soon the Fed will begin raising interest rates and how quickly they will raise them.” The S&P 500 rose 29.92 points to 4,660.57. The Dow gained 104.95 points to 36,157.58. The Nasdaq added 161.98 points to 15,811.58. Bond yields rose broadly after the Fed’s statement. The yield on the 10-year Treasury note rose to 1.59% from 1.54% late Tuesday. It was trading at 1.57% shortly before the Fed released its policy statement.
The Fed’s latest statement and policy shift comes amid persistent rising inflation that has cut into corporate operations and raised prices on raw materials. It is also making finished goods more expensive, raising concerns about whether consumers will cut back on spending as prices rise. At a news conference Wednesday, Fed Chair Jerome Powell stressed that the outlook for inflation looks highly uncertain, limiting the ability of the Fed to tailor its policies in response. He suggested that inflation should slow sometime next year as supply bottlenecks ease, but that the Fed cannot be certain that it will. The central bank and investors have also been closely monitoring the recovery in the employment market, which has been lagging the broader economic recovery. The Labor Department will release its jobs report for October on Friday. Stocks mostly wobbled in the early going Wednesday ahead of the Fed statement as investors looked over another big batch of earnings reports from U.S. companies. Technology stocks and a mix of companies that rely directly on consumer spending accounted for a big slice of the S&P 500’s gains. Adobe rose 2.3% and Tesla rose 3.6% to a record high. Energy stocks fell as U.S. crude oil prices slid 3.6%. Chevron dropped 0.7%. Smaller-company stocks outpaced the broader market in a sign that investors were feeling confident about economic growth. The Russell 2000 climbed 42.42 points, or 1.8%, to 2,404.28, its second straight all-time high. Agricultural equipment maker Deere fell 3.4%. Workers at the company rejected a contract offer Tuesday that would have given them 10% raises and decided to remain on strike in the hopes of securing a better deal. Investors were handed a mixed bag of corporate report cards. Activision Blizzard slumped 14.1% for the biggest slide in the S&P 500 after the maker of video games like “World of Warcraft” gave investors a disappointing profit forecast. Zillow Group sank 23% in heavy trading a day after the real estate website operator reported disappointing financial results and said it is shutting down its home-flipping business.
NOTICE
NOTICE is hereby given that JACQUELIN BANES of Coral Harbour, P.O. Box SS-6488, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of November 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE IN THE ESTATE OF IDA TURNQUEST, late of the settlement of Deadman’s Cay of the Island of Long Island, one of the Islands of the Commonwealth of The Bahamas. Deceased. NOTICE is hereby given that all persons having any claims against the above-named Estate are required, on or before the 5th day of December, A.D. 2021 to send their names and addresses, and particulars of their debts or claims, to the undersigned, and if so required by notice in writing from the undersigned, to come in and prove such debts or claims, or in default thereof they will be excluded from the benefit of any distribution AND all persons indebted to the said Estate are asked to pay their respective debts to the undersigned at once. AND NOTICE is hereby also given that at the expiration of the mentioned above, the assets of the late IDA TURNQUEST will be distributed among the persons entitled thereto having regard only to the claims of which the Executrices shall then have had notice. AND NOTICE is hereby given that all persons indebted to the said Estate are requested to make full settlement on or before the date hereinbefore mentioned. Dated this 1st day of November, A.D., 2021. c/o PYFROM & CO Attorneys for the Executrices, No.259 Shirley Street, P.O. Box N 8958, Nassau, N.P., Bahamas.
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Thursday, November 4, 2021, PAGE 13
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Thursday, November 4, 2021, PAGE 15
POLISH CENTRAL BANK RAISES INTEREST RATE AS PRICES SURGE By VANESSA GERA Associated Press WARSAW, Poland (AP) — Poland’s central bank on Wednesday made its second interest rate hike in as many months as consumer prices surge. The National Bank of Poland raised the rate to 1.25%, indicating that it intends to move more forcefully against rising prices after facing criticism for not acting soon enough. The move “suggests to us that it is taking the fight against inflation much more seriously than we had thought,” Capital
Economics said in a note. It comes after Eurostat, the European Union’s statistics agency, said Friday that Poland’s yearly inflation rate hit 6.8% in October. That’s among the highest in the 27-member European Union. Inflation has been spiking worldwide in recent months because of soaring energy prices and pent-up demand during the pandemic recovery. Consumer prices in Poland are at their highest in two decades — and appear set to rise even further. The country’s deputy finance minister, Piotr
Patkowski, said Tuesday that he expected inflation to reach 8% by the end of the year. But the head of the National Bank of Poland, Adam Glapinski, said at a news conference after the interest rate announcement that he foresees inflation peaking at 7% in January and then declining. Glapinski described the price surge in Poland and beyond as part of the “global” price being paid for actions taken by governments and central banks to avoid “large-scale economic disaster” during the pandemic.
A MAN carries a heater into an apartment building in Warsaw, Poland, Oct. 27, 2021. Gas prices are soaring, leading some people to turn down their radiators and only heat individual rooms. Poland's central bank made its second interest rate hike in as many months on Wednesday as consumer prices surge. Photo:Czarek Sokolowski/AP