CCA ‘stays’ $1.6bn Sarkis threat to two Nassau hotels
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHA Mar’s contractor yesterday obtained an “emergency stay” to protect “hundreds” of Bahamian jobs and block the potential “liquidation” of its two Nassau resorts from Sarkis Izmirlian enforcing his $1.642bn award.
The New York State Supreme Court’s appeal division granted the interim injunction, which for the moment prevents Baha Mar’s original developer from collecting on the fruits of his comprehensive legal win, after China
• Warns ‘hundreds’ of jobs in peril if verdict enforced
• Baha Mar developer can drive contractor ‘insolvent’
• British Colonial, Pointe no use for $1.98bn bond
Construction America (CCA) and its affiliates pleaded poverty and warned they would “suffer catastrophic and irreparable harm” absent such a stay.
Bahamas must ‘flirt’ with 3% growth to sustain jobless cut
By NEIL HARTNELL
THE BAHAMAS must “flirt” with sustained annual economic growth of up to 3 percent to further slash structural unemployment and prove external forecasters wrong, the Central Bank’s governor said yesterday.
John Rolle told Tribune Business that consistently expanding economic output, or gross domestic product (GDP), by between 2-3 percent annually would have a “very large dollar impact” compared to the International Monetary Fund’s (IMF) 2024 and nearterm projections for The Bahamas.
The Washington D.Cbased Fund, in its latest World Economic Outlook report released last month, cut The Bahamas’ 2024 GDP growth forecast to 1.9 percent and projected that it will fall even further to 1.7 percent in 2025
and 1.5 percent in 2029 as this nation places the rapid post-COVID rebound firmly behind it. Mr Rolle told this newspaper that the IMF’s growth forecasts were in line with those of the Central Bank, but pointed out that both this year’s and 2025’s projections remain above the 1.5 percent level that has long been considered The Bahamas’ historical average.
The Chinese state-owned contractor moved rapidly to secure this relief because it was unable to obtain the
Key CCA executive now Bahamas ‘special envoy’
By NEIL HARTNELL and FAY SIMMONS nhartnell@tribunemedia.net
A SENIOR China Construction America (CCA) executive who played a key role in the Baha Mar dispute appears to have further prospered through being appointed “a special envoy” by the Bahamian government.
Daniel Liu, CCA’s former senior vicepresident, who featured prominently in the section of the New York State Supreme Court ruling that found the Chinese stateowned contractor “actively worked to curry favour with the Bahamian government”, has disclosed in his
• Daniel Liu biography reveals 2023 appointment
• But foreign minister says not specific to China
• Sarkis ally: ‘One has to wonder what going on’
biography that the Davis administration last year made him a “special envoy to China”.
The revelation is made towards the back of a 16-page brochure for an entity named SilverStar Management Group Company, for which Mr Liu is named as the president and managing director. “In year 2023, Mr Liu has officially approved from Bahamas government as ‘special envoy to China’,” it proudly states.
However, Fred Mitchell, minister of foreign affairs, yesterday corrected this to confirm that while Mr Liu is indeed a “special envoy”
for the Bahamian government it is not specific to China. “No, he’s not the special envoy to China,” Mr Mitchell replied when contacted by this newspaper. “No, that’s not correct. “He may have a designation from time to time as a ‘special envoy’ but not special envoy to China. He’s a special envoy but not to China. I believe the way special envoy works is when a senior government
Vacation rental ‘dampening’ fears from pricing declines
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Central Bank’s governor yesterday voiced concern that declining vacation rental prices and occupancies could “dampen new investments” in the sector if this drop-off becomes a sustaining trend.
John Rolle, speaking at the regulator’s 2024 third quarter economic briefing, said that while the number of Bahamian vacation rental properties on the market continues to
increase there were “incremental declines” in key performance indicators compared to the first nine months of last year.
Acknowledging that the sector’s growth has helped to offset reduced hotel room accommodation, he added: “While, as a buffer, the vacation rental inventory continued to increase, in 2024 these properties experienced incremental declines in both average prices and average occupancy compared to the first three quarters of 2023.
“This shift, if it is maintained over an extended
period, could begin to dampen new investments targeted at this segment.”
Data unveiled by the Central Bank yesterday revealed that the average occupancy rate for ‘entire place listing’ vacation rentals fell from 32.7 percent during the first nine months in 2023 to 29.1 percent for the same period this year.
And, when it came to ‘hotel comparable’ listings, the average occupancy rate dropped year-over-year from 36 percent to 34 percent for the three quarters to end-September 2024.
There were some 3,808 vacation rental listings at the end of that period.
“Listings for Abaco, Grand Bahama and New Providence advanced by 21.3 percent, 23.4 percent and 9.7 percent, respectively, in September, relative to the comparative period last year. However, Exuma listings fell by 17.8 percent,” the Central Bank said.
Any slowdown in vacation rental popularity or demand would negatively impact hundreds of Bahamian entrepreneurs
Regulator to ‘tolerate’ larger bank dividends to ease fee pressures
By NEIL HARTNELL Tribune Business Editor
THE Central Bank’s governor yesterday said it will “tolerate” larger dividend payments to the Canadian parents of Bahamian commercial banks to ease the pressure for further fee increases.
John Rolle, addressing the regulator’s 2024 third quarter economic briefing, said it would permit larger “outflows” to both
regional and home country head offices to reduce excess capital in the Bahamian commercial banking industry and thereby prevent “overly accelerated” lending and credit growth. With surplus liquidity in the commercial banking industry standing at $3.051bn as at end-September 2024, he disclosed: “The Central Bank is also prepared to tolerate some larger net outflows on dividends, against excess capital in the domestic banks, so they can stay
ahead of potential future financial stability risks from any overly accelerated lending trends as well as to reduce some of the current pressures to generate earnings from fees.” Bank fees, and the transparency associated with any fee rises, have been a particular concern and sore point again with Bahamian consumers in recent months. Mr Rolle, meanwhile, revealed that The Bahamas’ foreign currency reserves which support the one:one peg with the US
dollar increased by more than $350m or more than 15 percent during the nine months to end-September 2024. Explaining that this was driven largely by the Government’s new foreign currency borrowings, the Governor added: “In the foreign exchange markets, the indications of moderating growth were revealed on both the supply and demand sides of transactions.
near-$2bn bond
JOHN ROLLE
BAHA MAR
BRITISH COLONIAL
DANIEL LIU
Entrepreneur launches platform to manage customer relationship
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
A BAHAMIAN entrepreneur yesterday said he has launched a customer relationship management platform targeting especially micro, small and mediumsized businesses in the Bahamian market.
Justin Cancino, Starboard Softworks’ president, told Tribune Business that the ConchCRM platform provides more features than rival products to help differentiate itself from the competition. “It kind of goes back to some of the smaller features like the personal touch,” he explained.
“So you know there’s nothing in there besides the spreadsheet, or they get some software from the US or Canada or wherever that isn’t really made or it’s bloated full of other features that we can’t really use here because, you know, you can’t connect things to your bank here.,” Mr Cancino continued.
“You can’t connect things to certain other systems like Salesforce and different things that we just can’t integrate with here. And so being able to have something that is very simple, has all the information for each and every island, each and every city in the islands, and being able to really customise the customer for your business or basically for the information, it’s just something we don’t have a lot of. And combining everything into one is also what kind of sets it apart, too.”
Mr Cancino said that, with cyber security becoming a major issue due to
“Because here everything’s so small and you kind of know everybody, and so being able to remember a lot of information about your customer and manage it a lot better because we don’t have a lot of systems built for us,” Mr Cancino said. “A lot of businesses, they’ll use a spreadsheet for their customers.
CCA
an uptick in more realistic phishing schemes and the growing popularity of artificial intelligence AI, protecting companies against data breaches is important. He said two-factor authenticators and other measures are implemented to protect client’s data.
“We host the platform, and what every client of ours would have is they have their own instance of the software. So, you know, you’re not using a copy of somebody else’s. You have your own logo and your own server and everything,” he added.
“And on the server side, everything is encrypted and secure. So even if there was a breach, the information is encrypted and very, very difficult to access. But we don’t even want to get to that point. We have the servers, very secure.
“But on the customer side, which is where I feel like the main vulnerabilities would be because most people, especially people running a small business,
they’re not cyber security experts. Their passwords are usually not that complex. You try to encourage that. So even if they don’t do it, it becomes very difficult,” Mr Cancino said.
“So what we’ve done is we’ve added in two-factor authentication for every user that uses the system. So even if their password is quite simple, they have something like Google Authenticator or some other form of two-factor authentication, so that if they lose their password or the password gets hacked, they still have their phone or text message as that additional line of defence to protect that data.
“That is important because with cloud-based software you can try to log-in from multiple places. But, again, we do things like we restrict it to that company’s IP internally and stuff like that, so it’s not accessible from outside and all these little tiny things that help a lot.
‘STAYS’ $1.6BN SARKIS THREAT TO TWO NASSAU HOTELS
required by New York State Supreme Court rules to gain an “automatic stay” of any judgment it issues. Branding the sum awarded against it as “breathtaking”, CCA alleged that the damages handed to Mr Izmirlian are “several times’ the combined value” of itself and its affiliates.
Their most valuable assets were described as “two hotels in Nassau, Bahamas” which, although not specifically named in CCA’s November 1, 2024, legal filings are clearly downtown’s British Colonial property as well as the Margaritaville Beach Resort that sits at the heart of the adjacent Pointe complex. However, as “illiquid” real estate assets, neither could be pledged as collateral to secure the required bond.
The Chinese contractor warned that, unless it obtained a stay, any bid by Mr Izmirlian to enforce the fraud and breach of contract damages awarded to him over his ousting from Baha Mar would drive it into insolvency and, subsequently, either bankruptcy in the US or “liquidation proceedings” in The Bahamas - the latter of which would inevitably hurt the two resorts.
A surety bond broker, used by CCA as an expert witness, besides asserting that there is “no ability” to use the resorts as collateral for the security demanded by the New York court also argued that financiers will shy away from Bahamas-based assets due to perceived challenges with enforcing agreements and potentially having to deal with this nation’s court system.
Mark Goodman, an attorney with CCA’s US attorneys, Debevoise & Plimpton, in a November 1, 2024, affidavit alleged: “Defendants are ongoing businesses facing a judgment that is several times their combined value even under the most optimistic assumptions. The judgment is far more than any defendant could possibly satisfy.”
Describing CCA as a New Jersey-based construction company whose primary asset is the equity ownership stakes it holds in its subsidiaries, Mr Goodman sought to portray the contractor and its affiliates as having minimal worth.
He added that China State Construction and Engineering Corporation (Bahamas) was merely a Bahamian special purpose vehicle (SPV) “that has no meaningful assets” after it lost its $150m preference share investment when Baha Mar was liquidated, while its $248m counterclaim against Mr Izmirlian was last month dismissed by the New York court.
As for CCA’s own Bahamian subsidiary, CCA Bahamas, he added that its “principal assets are its ownership interests in two subsidiaries, which together own and operate two hotels in Nassau, Bahamas, and no surety firm would accept its assets as a form of collateral on a supersedeas bond”.
“Absent a stay of enforcement, some or all of the defendants may be forced to file for bankruptcy in the US or initiate liquidation proceedings in The Bahamas,” Mr Goodman added. “In this case, bankruptcy or insolvency proceedings would harm not only defendants but non-parties as well.
“The two hotels CCA Bahamas owns employ hundreds of people. And CCA provides shared services, including communications, accounting, information technology and other general administration services, to non-party affiliates engaged in ongoing construction projects.
“Defendants have diligently sought to avoid this outcome. They approached several bonding companies, but none were willing to provide a bond in any amount. A discretionary stay of enforcement is the only means by which defendants can preserve their assets while pursuing their right to appeal.”
Mr Izmirlian is opposing CCA’s efforts to at the very least delay his collection of the damages awarded to him. And the New York State Supreme Court’s appeal division yesterday said it will hold an “expedited” full hearing on the issue to determine whether the “stay” should endure until the contractor’s full appeal is determined - a process that could take between one to two years.
Neil Pedersen, president of Pedersen & Sons Surety Bond Agency, which was hired by CCA and its affiliates to procure the security demanded by the New York
court, alleged that in this case some $1.98bn would be required given the scale of Mr Izmirlian’s legal success.
Noting that the court’s rules also require that the bond cover appeal costs, Mr Pedersen alleged:
“New York State statutory post-judgment interest will continue to accrue at 9 percent per year. The time to appeal varies. Additionally, in New York state, an appellate court can award a greater sum than the judgment. The bond itself cannot be issued in an unlimited sum.
“My office generally suggests using a bond in the amount of 120 percent of the judgment, which takes into account a little over two years’ post-judgment interest. Here, considering the $845m judgment, pre-judgment interest and post-judgment interest, a bond of a $1.98bn could, in my opinion, be reasonably expected to be sufficient to obtain the automatic stay.”
Besides the $845m awarded to Mr Izmirlian as compensation for his lost Baha Mar equity investment, the original developer also gained $68.56m from 9 percent interest covering the period May 1, 2014, to March 31, 2015. And a further $729.038m in interest, also at a 9 percent rate, was awarded for the period April 1, 2015, to the date of last month’s judgment and continues to accrue.
Mr Pedersen described the $1.98bn bond needed by CCA as “exceptionally large”, and would have to be underwritten by a consortium or syndicate of financiers with several “anchors” contributing $500m each. However, he alleged that obtaining it is “impossible under the circumstances in this case” as the funders would require liquid cash - via instruments such as letters of credit - as protection in the event of a payout.
“I have been provided valuation reports for certain hotels and assets owned by one of the defendants and located in The Bahamas,” Mr Pedersen added, referring to the British Colonial and Margaritaville Beach Resort. “I was asked to provide information about the ability to use the assets as collateral to secure a bond. As far as I am aware, there is no ability to use the hotels as collateral.
“Surety is not asset-based lending. Real estate, along with other non-liquid forms of collateral, are not preferred types of collateral especially for a matter of this large. Few companies take real estate as collateral. Real estate is not easily liquidated.
“The foreclosure process for real estate can be a multi-year proceeding. Once an appeal is decided, a surety has a short window to satisfy a judgment while it could take years to foreclose on an asset and ultimately sell the real estate.”
Pointing to further issues with using the two downtown Nassau resorts as security, Mr Pedersen added: “From the perspective of a surety bond provider, another issue with taking the indemnity of an entity whose assets are located in The Bahamas is that it is difficult to enforce an indemnity agreement in that jurisdiction.
“The possibility of dealing with a foreign court related to a possible future claim proceeding is not a favourable underwriting factor when underwriting an appeal bond. In addition, jurisdictions like The Bahamas can make it difficult for a surety to enforce its indemnity agreement....
“In my career, I have been involved in the issuance of thousands of bonds. I have never seen, nor heard of, an appeal bond of this size, for a company -or companies- in the financial position of the defendants. For the foregoing reasons, and after the efforts made, obtaining an appeal bond is not possible under these circumstances.”
CCA’s legal filings seemingly contradict assertions by Fred Mitchell, minister of foreign affairs and PLP chairman, that the Chinese contractor’s dispute with Mr Izmirlian is a private legal battle with no other consequences given the potential negative fall-out for the British Colonial, Margaritaville Beach Resort and their hundreds of employees should a bankruptcy or liquidation ultimately result.
James McMahon, another member of CCA’s legal team, warned bluntly in a November 1, 2024, legal filing: “Enforcement proceedings could jeopardise CCA’s ability to pay its employees and fund its ongoing businesses, creating a substantial risk that CCA
“But really, the two-factor authentication I think is really helpful. It’s not foolproof because nothing is really foolproof, but it’s a very big step in helping prevent access to that. Because this is important data. You know, it’s all customer information, like name, phone number, e-mail, stuff like that. So this is important information you want to keep secure.”
ConchCRM aids in client engagement and management, including grouping and adding customers plus access to pre-built templates that allow for effective communication with customers and leads. “For example, when it is a customer’s birthday, or a lead has not been contacted recently, ConchCRM will email you a daily digest with these details in an easy to read format so you are always on top of your client relationships without taking you away from your day to day responsibilities,” the company added.
would be forced into bankruptcy proceedings.”
And Xin Fu, China State Construction and Engineering Corporation (Bahamas) president, added: “If enforcement of the judgment is not stayed pending appeal, China State Construction and Engineering Corporation (Bahamas) will be rendered insolvent.”
Observers will likely see a certain irony in CCA’s predicament given that Judge Andrew Borrok ruled it used $54m, which it urged Mr Izmirlian to procure from Baha Mar’s lender to settle debts owed to subcontractors, to instead fund its British Colonial acquisition in late 2014. Now that same resort is allegedly threatened with liquidation if Mr Izmirlian moves to collect on a verdict stemming from those very same CCA actions. However, it is unlikely that Beijing will want to endure the embarrassment of a Chinese state-owned company being forced into bankruptcy or liquidationespecially in the US. CCA’s ultimate parent, China State Construction and Engineering Corporation, was said as recently as 2019 to have generated $205.8bn in annual revenues and reached 18th in the Fortune Global 500.
Therefore, it should have sufficient assets to cover the damages awarded to Mr Izmirlian should he prevail on appeal. The latest developments also bear an uncanny resemblance to the plot laid out last week by Dionisio D’Aguilar, one of Mr Izmirlian’s key allies, who both suggested CCA could file for bankruptcy and would likely face a near$2bn damages bill if their appeal fails.
Mr D’Aguilar, who sat on Baha Mar’s Board as a director prior to the original developer’s ousting and his own later appointment as minister of tourism and aviation, simply said yesterday of CCA: “They should settle.”
He had argued last week:
“Another alternative that they have is to simply declare bankruptcy, but I cannot imagine a Chinese subsidiary of China State Construction and Engineering Corporation (CSCEC) would take that route.
“It would be hugely embarrassing for the parent company that, when found wrong, this is the route they decide to take to protect themselves from the risk. I’m sure it’s an option. I don’t know of any Chinese company ever doing that.
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
THE Small Business Development Centre (SBDC) will tonight name the 39 ‘orange economy’ entrepreneurs who are set to receive a collective $162,538 in grant funding. The awards, which will be made under the 2024 Creative Entrepreneur Initiative, will be unveiled between 6.30pm and 9pm at The Gallery & Wine Bar at the Nassau Cruise Port. Some $49,549 will be collectively awarded to entrepreneurs in the Family Islands, bringing the 2024 Creative Entrepreneurs Initiative to a close. Samantha Rolle, executive director of the Small Business Development Centre, and Rashard Ritchie, assistant director of youth in the Ministry of Youth, Sports & Culture, will speak at the event.
Declaring bankruptcy to protect yourself from the award, no Chinese stateowned company has ever done that.”
CCA, in its legal filings, asserted that the “stay” is required “to prevent gross injustice”. It added: “The decision imposes $1/6bn in liabilities on companies worth nowhere close to that. The decision is egregiously wrong. But if it does into effect the defendants will be insolvent.”
Mr Goodman, on the Chinese state-owned contractor’s behalf, added: “The decision, which saddles defendants with a breathtaking $1.6bn in liability, rests on numerous errors of law and fact. The Decision also erroneously treats all three defendants as a single entity when only one (CSCEC Bahamas) signed the contract alleged to be breached and another (CCA) was not involved at all in the construction project at issue.
“Without a stay of enforcement, defendants may never be able to exercise their rights to appeal the decision and clear their names.... At the same time, the judgment’s size means that if plaintiff is allowed to commence enforcement proceedings, defendants will be forced into insolvency.
“Defendants plan to perfect their appeal within eight weeks of filing their notice, far earlier than the sixmonth time frame provided for in the [New York court rules], and the appeal may be resolved within several months. Plaintiff’s potential recovery would be protected in the meantime,” Mr Goodman added.
“Defendants intend to perfect by December 30, 2024, so this court may hear the appeals in the March term.
“A stay would allow defendants to continue to generate value while the appeal is pending, and postjudgment interest would continue to accrue. Defendants would not, and could not, dispose of or transfer their assets while this appeal is pending. And, as defendants already disclosed to plaintiff, the vast bulk of defendants’ value are in its ownership of two well-known hotels in The Bahamas.”
PINTARD: LIVEABLE WAGE WILL GROW BAHAMAS MIDDLE CLASS
By FAY SIMMONS Tribune Business
THE Opposition’s leader yesterday said implementing an as-yet undefined and undetermined liveable wage could help more Bahamians gain middle class status.
Michael Pintard, speaking to Tribune Business, said many households are struggling due to rising costs and a move towards a liveable wage would ease their burden.
“The Bahamians who are presently making minimum wage are struggling, and not just them but persons who are even above minimum wage are struggling. It has been the position of the FNM, certainly been my position, that we have to move towards a liveable wage,” said Mr Pintard.
“Clearly Bahamians are under tremendous pressure because, in part, of increases in taxation by this administration, the escalating cost of utilities - in particular electricity - and
the rising cost of food in stores. We’ve not made any appreciable improvement in the food security initiatives that the Government has been bragging about introducing.”
Mr Pintard argued that while a transition to a liveable wage may be required, it must be done in a way that will not negatively affect businesses. “In all cases where one is considering the move to the minimum wage, you need to engage all stakeholders to have a discussion,” he added.
“You must also have the requisite studies to look at the impact of any mandatory move, whether it’s in National Insurance, whether it’s in minimum wage, whether it’s the introduction of taxation.
“The challenge right now is: How do we assist Bahamians in moving towards a liveable wage while guarding it from negatively impacting small and micro enterprises and middlesized companies? We need to ensure they can continue to hire more Bahamians
ENERGY FORUM TO PROMOTE RENEWABLES AND REFORMS
By FAY SIMMONS Tribune Business Reporter
A CABINET minister
yesterday announced that
The Bahamas will host an energy forum in a bid to promote energy efficiency and support the increased use of renewable sources.
JoBeth Coleby-Davis, minister of energy and transport, speaking at the Office of the Prime Minister’s weekly briefing yesterday, said that in honour of CARICOM Energy Month her ministry will host a two-day energy summit from November 7-8.
“The focus of CARICOM energy month 2024 is sustainable energy,” said Mrs Coleby-Davis. “Investing in sustainable energy is key to reducing our dependence on fossil fuels, stabilising costs and improving energy security while lowering carbon emissions and combating climate change.
“As a member of CARICOM, The Bahamas will do its part to support sustainable energy efforts in the Caribbean. The Davis administration firmly believes that energy services must be accessible, reliable, affordable and sustainable for all citizens.”
Mrs Coleby-Davis said events will be open to the public on November
7 and will include panel discussions, plus provide an update on the ongoing energy reforms and the National Energy Policy.
“The summit is being held under the theme ‘Accelerating The Bahamas’ energy transition through innovation and strategic partnerships,” said Mrs Coleby-Davis. “The purpose of the summit is to mobilise and engage energy project partners, to update the Bahamian public on energy reform plans and progress, and to promote energy efficiency and to encourage a deeper understanding of the energy sector.”
The panel discussions will focus on the transformation of Bahamas Power & Light (BPL); integrating renewable energy and microgrids in New Providence and the Family Islands; and economic growth through energy and the regulatory framework.
Mrs Coleby-Davis said panellists will include representatives from BPL, Nassau Airport Development Company (NAD), the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), the Utilities Regulation and Competition Authority (URCA) and the Attorney General’s Office.
and not lay-off existing staff.”
Mr Pintard said through collaborating with businesses, and not implementing policies that “strangle” the private sector, the Government and companies can move towards a liveable wage that, thus far, has been more of an aspirational goal.
“I believe through dialogue we are able to accomplish both things - to move towards a liveable wage and for the Government not to strangle businesses, but work with them so that they are able to become increasingly productive,” said Mr Pintard.
“Ensure that you don’t increase their costs by introducing a whole bunch of new regulations, which is what this government has done by requiring these businesses to now have audited financials, requiring them to report VAT receipts at an earlier period of time, and asking them to estimate essentially what they will be earning.”
Mr Pintard’s comments came after a recent report
asserted a Bahamian family where both adults are earning the minimum wage would have to increase their income four-and-ahalf times to reach “middle class living standards” on New Providence.
Lesvie Archer, a University of The Bahamas (UoB) researcher, in a 14-page paper published in the International Journal of Bahamian Studies, disclosed that the total $27,040 annual income for such a family is far removed from the estimated $122,400 annual earnings needed to enjoy “a decent middle class life on New Providence”. For Grand Bahama, the figure was pegged at $121,200.
The study, which did not seem to define what ‘middle class’ is in the Bahamian context, said it focused only on “determining the cost of acquiring and maintaining certain middle class status symbols in The Bahamas” such as food, housing (rental), clothing and footware, recreation, communications, household needs and other items.
VACATION RENTAL ‘DAMPENING’ FEARS FROM PRICING DECLINES
FROM PAGE B1
who have invested in a sector viewed as critical in enhancing local ownership of the country’s largest industry as well as spreading the wealth from tourism.
“As it relates to the short-term vacation rental market, data provided by AirDNA showed that in September, total room nights sold fell by 1.3 percent to 24,921 when compared to the same period last year,” the Central Bank said.
“Correspondingly, occupancy rates for entire place listings decreased to 29.1 percent from 32.7 percent in the comparative period last year, and for hotel comparable listings to 34 percent from 36 percent in 2023. Meanwhile, price indicators revealed that the average daily room rate (ADR) for entire place listings declined by 5.1 percent to $588.53, and for hotel comparable listings by 9.2 percent to $157.17.
“On a year-to-date basis, total room nights sold rose by 6.2 percent, supported by gains in both entire place bookings (5.8 percent) and hotel comparable bookings (7.3 percent). Meanwhile, occupancy levels for entire place and hotel comparable listings moderated by 5.5 percent and by 3.2 percent, respectively. Despite lower occupancy levels, the ADR for entire place listings
Inflation was also factored into the calculations.
“The study reveals that, as of March 2024, a middle class family of four requires an income of $10,200 monthly if living in New Providence, and $10,100 monthly if living in Grand Bahama. These estimates are higher than the updated estimates generated for lower-income families by 104 percent in New Providence and by 53 percent in Grand Bahama,” Ms Archer wrote.
Multiplying these figures by 12 gave the annual earnings required by such families to attain middle class status on both islands. And, given that working class families were “assumed” to be minimum wage earners, the study said persons in this income group would need to more than quadruple their earnings to achieve middle class status - a goal that, for many, may be well out of reach.
“This means that a reference-sized family where both adults are employed full-time earning minimum
than 1 percent over the first three quarters of the year compared to a recoverydriven expansion of just exceeding 20 percent in the same period last year.
edged up by 1.2 percent and for hotel comparable listings by 1 percent.”
Mr Rolle, meanwhile, reiterated that the 16.3 percent growth in The Bahamas’ total tourism arrivals for the first nine months of 2024 was driven almost entirely by lowerspending cruise passengers with stopover or air arrivals up be less than 1 percent compared to 2023. And he also acknowledged that the arrivals growth rate for the period to end-September was “less than half” that of the prior year.
“As to tourism’s impact, over the first nine months of the year visitor arrivals rose by a healthy 16.3 percent, but it was less than half of the rate of growth experienced in 2023 and very closely anchored on a nearly 20 percent boost in sea arrivals,” the Governor said.
“Air arrivals, which capture high-yielding stopover visitors, increased by less
“Since the recovery to pre-pandemic volumes, the sector has experienced constrained hotel room capacity, with the average pricing of accommodation, which contributed to some of the more recent period gains, only marginally appreciated in 2024.”
Mr Rolle said the outlook for stopover tourism “remains stable to positive on balance” given that “the extreme likelihood of a recession has been avoided for now, which would have been even more damaging for consumer confidence and travel spending”.
However, to fully exploit this momentum, Mr Rolle said The Bahamas needs to invest in expanding its hotel room capacity and enticing more passengers off the cruise ships through providing them with innovative attractions and experiences.
A recent Florida-Caribbean Cruise Association (FCCA) survey said 19 percent of passengers, almost one in five, remain on board when
wage ($260 per week per person, or $27,040 per family per year) would have to increase their income by an estimated 350 percent to meet the living standards that characterise the New Providence middle-income household profile determined in this study,” Ms Archer wrote.
“A family of four should earn an estimated $122,400 per year to afford a decent middle class life on New Providence, and $121,200 if desiring to have a middle class life on Grand Bahama..... This brief report may be a starting point for informing policies related to living costs and standards in The Bahamas. It also offers insight into economic loss associated with quality of life debates.” The report is likely to revive debate about income inequalities in Bahamian society as well as renew calls, in some quarters at least, for greater progress towards the so-called ‘liveable wage’ promised by the Davis administration although such a concept has yet to be clearly defined.
the ship is docked in Nassau and Freeport.
“This highlights the importance of efforts from within The Bahamas around marketing, strengthening airlift and increasing hotel rooms, which could contribute to more supplyside industry growth,” Mr Rolle added.
“Meanwhile, The Bahamas’ cruise market outlook remains favoured by the significant investment in private destinations throughout the archipelago. This segment also has a significant captive market from which earnings can be boosted, if a larger share of existing passengers were enticed to disembark and if more local products and experiences were supplied to these visitors....
“Though positive, on balance, a range of factors affect tourism. Cruise capacity has the potential to expand further if local supply side conditions continue to strengthen. Meanwhile, demand side forecasts are less uncertain for stopover visitors given the averted risk of a recession in the United States and other major economies.”
BAHAMAS MUST ‘FLIRT’ WITH 3% GROWTH TO SUSTAIN JOBLESS CUT
And he reiterated his belief that the country “has great potential” to increase tourism’s economic impact by capturing more visitor spending, and ensuring a greater share of this remains within its borders, by providing increased “local inputs” to replace the imported goods and services long relied upon by The Bahamas’ leading industry.
“I would say that, with the conversations and dialogue I see out there, the expectation is that you’re above 2 percent and maybe flirting with the 3 percent range,” Mr Rolle replied, when asked by Tribune Business about the level of sustained economic growth required to make persistent cuts in the 8.7 percent national unemployment rate.
“In an economy this size that’s very large in terms of the dollar impact and potential employment; between 2
percent and 3 percent,” the Governor added. “Definitely above 2 percent. When your rate is there, what it is saying is there’s a certain level of growth based on investment activity, and you’re typically seeing that, for example, when you have major resort development.
“I think we’ve also seen some of that growth when the residential real estate sector has a very large construction element in it.” Mr Rolle then confirmed that the IMF’s recently-unveiled growth estimates for 2024 and 2025 were aligned with the Central Bank’s given that the Bahamian economy’s rebound from COVID-19’s ravages is now complete.
“I think we’re in the same; our ranges overlap,” he said of the Central Bank and IMF. “We tend to have very detailed conversations with them. We compare notes very extensively, and try to reconcile where we can. Usually, the long-term
In Cyprus, officials from Algeria to Iraq train to keep WMD from crossing their borders
By MENELAOS HADJICOSTIS Associated Press
FROM as far as Algeria, Iraq and Georgia, an assortment of senior government officials converge on this small facility for training by top U.S. experts to prevent the kinds of materials used to build weapons of mass destruction from crossing their borders.
In just its third year of operation, the U.S.-funded Cyprus Centre for Land, Open Seas and Port Security (CYCLOPS) has far exceeded expectations. From the dozen courses that officials were initially hoping to hold annually, demand has skyrocketed, with scheduled training sessions for next year expected to surpass 50, says the center's director Chrysilios Chrysiliou.
So far, over 2,000 officials from 20 countries including Yemen, Libya, Armenia and Ukraine, have received training on radiological and nuclear detection for customs officers, methods of smuggling weapons of mass destruction, and chemical terrorism investigations among a host of other topics.
On Monday, a group of Cypriot and Egyptian officials started a two-day seminar on maritime cybersecurity led by the U.S.-based Sandia National Laboratories.
"This uniqueness has actually brought ... a lot of success which could not had been foreseen when Cyclops was initially being created," Chrysiliou told the Associated Press.
According to Chrysiliou, key to the center's success has been the top-notch level of instruction participants receive from U.S.-based experts, including from the Pacific Northwest National Laboratory and the Lawrence Livermore National Laboratory, that specialize in counter-proliferation programs.
The center also boasts an array of the latest in cuttingedge detectors able to sniff out radiological, chemical and biological agents and explosives that countries in the wider region don't possess or have access to.
"Here, the participants have the opportunity to see the latest technology in in detecting all of the range of the threats," said Chrysiliou. "It's like a showcase of what exists out in the market."
For instance, trainees are taught on how to detect and properly dispose of the radiological elements of discarded medical equipment that militants could use to fashion a weapon.
Another emerging threat is the possible use of off-the-shelf drones to disperse chemical or biological agents over populated centers.
[growth] potential for The Bahamas is still by some measures 1.5 percent. We’re still averaging above the average; we still have some field in front.”
With the Bahamian economy seemingly reverting to the historical growth rates it enjoyed between the 2008-2009 global recession and Hurricane Dorian/ COVID-19, Mr Rolle said this nation must “at least be very attentive to what kind of activity has to be happening to give you a higher rate of return” as he called for a focus in extracting even greater earnings and economic impact from tourism.
“Tourism has great potential,” he added. “To fully capitalise on what we get out of tourism, it speaks to how we get those coming to do more and leave more in the economy, and also from the point of view of what they are presently doing. How do we get more of that to be local inputs; more local inputs?
“It means more labour resources are engaged, which is not the case for what we have to import for the industry. I’m not talking about the physical goods, but the service elements and other things people have utilised here.”
Mr Rolle, earlier addressing the 2024 third quarter briefing on the Bahamian economy’s performance and outlook, said workforce productivity and skills as well as more-targeted investment policies are key to driving the higher growth rates this country requires.
“I think if you want to have a sustained reduction in the unemployment rate, meaning not just reducing the rate from where we were in the pandemic, then on a sustained basis we have to expect that the rate at which the economy is generating jobs looks different, and we are growing at a faster rate,” he reiterated.
“But that also means we have to look at how to get
the economy to grow faster, which ties into the skill sets we are developing and putting to use in the economy, as well as how we continue to scrutinise our policies around investment and the like to help facilitate growth.”
Confirming that the Bahamian economy will continue to expand through the end of 2025, albeit at a “more subdued pace” compared to the rates achieved post-COVID as the country regained output levels lost to the pandemic, Mr Rolle added that 2024’s growth will come in lower than the 2.6 percent recorded for 2023 by the Bahamas National Statistical Institute (BNSI).
“The Bahamian economy continued to expand over the first three quarters of 2024,” the Governor said.
‘However, the available indicators of growth slowed in comparison to 2023. These trends are further in line with the expected levelling off in gains since
KEY CCA EXECUTIVE NOW BAHAMAS ‘SPECIAL ENVOY’
FROM PAGE B1
official requires someone to be utilised from time to time that happens, so he can call himself that but not to China. That’s the issue.”
However, a key ally of Sarkis Izmirlian, Baha Mar’s original developer, says Mr Liu’s biography details and appointment raise questions over whether he has been rewarded by the Government for his role in the dispute despite the recent New York court ruling which found CCA committed multiple frauds and breaches of contracts.
Dionisio D’Aguilar, who sat on Baha Mar’s Board prior to Mr Izmirlian’s ouster, raised multiple questions as he hit back at Mr Mitchell’s demands that he choose whether to support The Bahamas, and the thenChristie administration’s stance on the multi-billion dollar Cable Beach project, or the original developer.
“Mr Mitchell has a job to do as protector of the PLP brand, and clearly the PLP sided with the party that was found out in court to have committed a fraudulent activity, and found wanting and liable for its behaviour during Baha Mar’s construction,” the Minnis administration’s former minister of tourism and aviation blasted.
“I find it odd that one of the parties mentioned in the ruling as trying to curry favour with the Bahamian government, Daniel Liu, was appointed as special envoy of the Government of The Bahamas. Obviously there’s a relationship there. He’s [Mr Mitchell]
asking me to pick country over commercial interests, and he’s obviously already picked his side.
“One has to ask what is the relationship between the Government of The Bahamas and someone mentioned in the ruling as attempting to curry favour with the Government of The Bahamas. Now that same person is ending up with a position from the Government of The Bahamas. What’s going on?”
Mr D’Aguilar said he was unaware whether Mr Liu’s position as ‘special envoy’ was a paid post or not as he also raised questions over whether the former CCA executive is now a Bahamian citizen or has attained permanent residency in this nation. He pointed out, though, that the former CCA executive’s biography also states he provides “construction management services for the University of The Bahamas”.
“This gentleman is getting a lot of contracts from the Government of The Bahamas and a lot of appointments from the Government of The Bahamas,” Mr D’Aguilar blasted. “One has to wonder. We obviously know where their [the then-government’s] loyalties lie. They already sided with CCA, and those elements have been rewarded with government positions.”
Judge Andrew Borrok, in awarding Mr Izmirlian some $1.6bn in damages over his fraud and breach of contract claim, said the “evidence establishes” that some $2.3m in payments by CCA were designed to “gain access” to Sir Baltron Bethel, then-prime minister Perry Christie’ senior policy adviser, and the administration’s decision-making core.
Sir Baltron previously denied any impropriety when Tribune Business first
exclusively revealed on November 8, 2022, that CCA had paid $2.3m to Notarc Management Group, where his son, Leslie Bethel, was chief executive. The payments were made between December 2014 and January 2016, when the dispute between Mr Izmirlian and CCA was at its peak. But, pointing out that Sir Baltron and the Christie administration “co-ordinated” with CCA during the unsuccessful negotiations to resolve the Baha Mar dispute, Judge Borrok said: “While CCA Bahamas was in negotiations with the Bahamian government over a Heads of Agreement in relation to the British Colonial development, Mr Liu forwarded an e-mail communication from Sir Baltron Bethel to his son, Leslie Bethel.
“Mr Liu confirmed in his deposition testimony that he did so because he was ‘looking for help’ from Leslie Bethel, and wanted Leslie Bethel to speak with his father, Sir Baltron Bethel, about proposed edits made by Sir Baltron Bethel to the Heads of Agreement.
“Leslie Bethel reassured Mr Liu that ‘Sir B is one of CCA’s biggest supporters’ and promised to provide further help with the defendants’ interactions with the Bahamian government. Mr Liu reciprocated the sentiment, saying: ‘I am sure about Sir Baltron and yourself as our best friend’.” Judge Borrok also picked up on e-mail exchanges between Mr Liu and Sir Baltron over how Baha Mar’s financier, the Chinese state-owned China ExportImport Bank, could push for a new “equity partner” to be brought into the project. Sir Baltron urged that this idea come from the bank as the Government did not
the economy completed its recovery from the pandemic.
“The indicators reflect slower growth in tourism earnings, due to constrained capacity in the stopover segment, and also moderation in the otherwise healthy cruise trends.” With foreign direct investment (FDI) continuing to support both construction and tourism activity, Mr Rolle added that The Bahamas was also starting to feel the benefit of lower inflation in the cost of imported goods and services.
Nevertheless, he confirmed: “For 2024, the real GDP growth rate in The Bahamas is expected to slow further below the estimated 2.6 percent recorded by the Bahamas National Statistical Institute (BNSI) for 2023.
want to be seen as forcing Mr Izmirlian out.
“Later on, after the March 27, 2015 deadline had been missed and in advance of a planned negotiation meeting with Baha Mar, Sir Baltron Bethel asked Mr Liu for advice as to the ‘[m]anner in which you would wish negotiations to proceed’,” the judge said.
“Later, in a July 22, 2015, e-mail, apparently inadvertently copying representatives of Mr Izmirlian, Sir Baltron Bethel proposed ‘[o]ne way of making up the equity shortfall of Baha Mar would be for the bank to advance the idea of an additional equity partner with hotel and casino experience being brought in within say 90 days’.
“He was careful to add that ‘[s]uch a suggestion should preferably come from bank and not Gov’t to prevent Baha Mar taking the position Gov’t is trying to push lzmirlian out’.” Tom Dunlap, Baha Mar’s former president, told the twoweek New York trial over Mr Izmirlian’s claim that he found Sir Baltron’s e-mail “ghastly” when he inadvertently received it.
And probing further, Judge Borrok noted how Mr Liu recommended to his CCA colleagues that the Chinese contractor ‘take advantage of The Bahamas government. If the Government, the Export-Import Bank of China and CCA join forces, that can turn passive into active’.
“This e-mail chain also references apparently bilateral meetings between the defendants and the ‘Prime Minister’s Senior Advisor’,” Judge Borrok said. “This e-mail chain is a clear endorsement of the strategy of pushing BML Properties and Baha Mar out of the project, and contemplates having the Bahamian government’s assistance in doing so.”
REGULATOR TO ‘TOLERATE’ LARGER BANK DIVIDENDS TO EASE FEE PRESSURES
“The inflows, measured from commercial banks’ purchases of foreign exchange, increased only incrementally by 1.8 percent over the first nine months of 2024, which is even slower than the rise of 2.4 percent in 2023.
“In the meantime, private sector demand for foreign exchange also rose at a much slower pace of 1.5 percent for the same nine months period, still large enough to moderately reduce the net sale of foreign exchange that commercial banks subsequently passed on to the Central Bank,” Mr Rolle continued.
“Nevertheless, the yearto-date trends in external
reserves were reversed to a buildup just exceeding $350m or 15.3 percent over the first nine months of the year as opposed to a slight reduction over the comparative period in 2023. “This was because the Central Bank’s foreign exchange transactions with the Government switched from net sales, which helped fund a sizeable debt repayment last year, to net purchases this year which were driven by the foreign currency borrowings of the Government. At the beginning of November, the external reserves were estimated at about $2.68bn compared to approximately $2.51bn at the same point in 2023.”
STOCK MARKET TODAY
Looking to the projected external reserves position at year-end, Mr Rolle added: “The Central Bank forecasts that external reserves could still decrease overall in 2024, relative to the opening balance at the beginning of the year, and this will be due to stronger private sector spending on imports. This continues to be in line with the Central Bank’s posture to encourage accelerated lending to the private sector.
“Moreover, there has also been increased capital raising efforts in the private sector that are stimulating investmentrelated imports. Even still, the coverage provided by the external reserves is expected to remain more
Wall Street drifts ahead of Election Day and a manic week for markets
By STAN CHOE AP Business Writer
U.S. stocks drifted lower Monday ahead of a momentous week full of potential flashpoints in Washington, D.C., and around the world.
The S&P 500 slipped 0.3%, though it remains near its record set last month. The Dow Jones Industrial Average fell 257 points, or 0.6%, while the Nasdaq composite slipped 0.3%. Intel fell 2.9%, and chemical producer Dow sank 2.1% in their first trading since getting notified they'll no longer be included in the Dow Jones Industrial Average. Warren Buffett's Berkshire Hathaway dropped 2.2% and was one of the heaviest weights on the market after reporting a drop in operating profit for the latest quarter. But the majority of stocks within the S&P 500 rose, including a 2.8% gain for Fox after it reported a stronger profit than expected. That was despite increases in some costs, including for newsgathering at Fox News to cover this election cycle. Election Day will arrive Tuesday, though its result may not be known for some
time as officials count all the votes. That's raised fears about the possibility of sharp swings around the world because markets infamously hate uncertainty. History may be less foreboding. The broad U.S. stock market has historically gone on to rise regardless of which party wins the White House. And in 2020, U.S. stocks climbed immediately after Election Day and kept going even after former President Donald Trump refused to concede and challenged the results, creating plenty of uncertainty. A large part of that rally was due to excitement about the potential for a vaccine for COVID19, which had just shut down the global economy.
"Bottom line – the US election is incredibly important, but the process is likely to be incredibly noisy," according to Michael Zezas, a strategist at Morgan Stanley. For markets, Zezas also points to how prices may have already moved ahead of expected outcomes from the election. A win for Trump this election could mean U.S. tariffs on Mexican imports, for example, which could hurt the value of the Mexican peso. But
the peso has already fallen against the U.S. dollar in recent months, which could limit further moves if a Trump win were actually to happen.
A Trump victory would be less of a surprise to markets this time around than in 2016, when Treasury yields soared on expectations for tax cuts that could further inflate the nation's debt or fuel a stronger U.S economy. Treasury yields have already climbed in recent weeks, in part due to rising expectations in some market corners for a Trump win, along with a spate of data showing the U.S. economy has remained stronger than feared.
On Monday, Treasury yields gave back a chunk of those gains. The yield on the 10-year Treasury fell to 4.29% from 4.38% late Friday.
Another investment that's become a barometer in the market for Trump's perceived chances of victory swung sharply through the day. After veering between losses and gains through the morning, Trump Media & Technology Group ended up rising 12.4%. The stock of the company behind Trump's Truth Social platform had
MANY RETAILERS OFFER 'RETURNLESS REFUNDS.' JUST DON'T EXPECT THEM TO TALK MUCH ABOUT IT
By HALELUYA HADERO AP Business Writer
IT'S one of the most under-publicized policies of some of the biggest U.S. retailers: sometimes they give customers full refunds and let them keep unwanted items too.
Returnless refunds are a tool that more retailers are using to keep online shoppers happy and to reduce shipping fees, processing time and other ballooning costs from returned products. Companies such as Amazon, Walmart and Target have decided some items are not worth the cost or hassle of getting back. Think a $20 T-shirt that might cost $30 in shipping and handling to recover. There are also single-use items, such as a package of plastic straws, that might be difficult to resell or medicines that could be unsafe to market again.
Analysts say the companies offering returnless refunds do it somewhat sporadically, typically reserving the option for low-cost objects or ones with limited resale value. But some online shoppers said they've also been allowed to keep more pricey products.
Dalya Harel, 48, received a return-free refund recently after ordering a desk from Amazon that cost roughly $300. When the desk arrived, she noticed it was missing some key pieces and would be impossible to put together, Harel
said. She couldn't request a replacement and have it within a reasonable time for the office of her New York lice detection removal service because the item was out of stock.
Harel, who routinely buys towels and other products from Amazon for her business, said her team reached out to the company's customer service line. She was pleasantly surprised to hear she would get a refund without having to send back the desk.
"That's one less headache to deal with," Harel said. "It was really nice for us to not have to make an extra trip up to the post office." She used the desk pieces to create makeshift shelves in her office in Brooklyn. A mysterious process While the retail practice of letting customers keep merchandise and get their money back is not exactly a trade secret, the way it works is shrouded in mystery. Companies are not keen to publicize the circumstances in which they issue returnless refunds due to concerns over the potential for return fraud.
Even if brands don't provide details about such policies on their websites, returnless refunds are expanding in at least some retail corners.
Amazon, which industry experts say has engaged in the practice for years, announced in August that it would extend the option to the third-party sellers who drive most of the
than adequate to support the fixed exchange rate.”
The Governor, noting that private sector loan delinquencies continue to fall, said: “Bank credit to the private sector is growing at a faster pace than in 2023, which is across residential mortgages, consumer loans and business lending. Based on the most recent lending conditions survey, commercial banks are also receiving and successfully approving a higher overall volume of loan applications.
“At the same time, the average delinquency rate for borrowers who are three months or more behind in payments continues to decrease. As at September 2024, this corresponded to just under 6
percent of private sector loan balances, which are even further below where the system was before the great recession of 2008.
“While being spurred on by better economic conditions, indications are that the lending climate has also improved modestly because banks are now using the credit bureau to help assess applications.... In the Central Bank’s monetary policy assessment, the Central Bank will continue to accommodate and encourage increased lending to the private sector and, with this, tolerate some diminished holdings of the external reserves over the near term.”
Mr Rolle said the forecast further reductions in
US interest rates could help boost foreign direct investment (FDI) in The Bahamas by lowering developers’ funding costs while also reducing debt servicing (interest) expenses for the Government on its variable-rate US dollar and foreign currency debt.
“The projected reduction in major central banks’ interest rates, as inflation comes under control, increases the ease of funding for potential foreign investments and reduces the expected cost of servicing the Government’s existing foreign currency debt, once other factors are taken into account,” the Governor added.
been ripping higher from a bottom in September, until it hit a wall last week and dropped at least 11% in three straight days.
In the oil market, the price for a barrel of U.S. crude rose 2.8% to $71.03 after Saudi Arabia and other oil producers said they would delay plans to increase the amount of crude they produced. Brent crude, the international standard, rose 2.7% to $75.08 for a barrel.
The price of Brent is still down for the year so far, in part because of worries about how much demand will come from China given its economic challenges.
The Standing Committee of China's National People's Congress is meeting this week, and analysts say the government may endorse major
spending initiatives to boost economic growth amid troubles for the country's real-estate industry. Beyond that meeting and Election Day in the United States, this week will also feature the latest meeting of the Federal Reserve, where the widespread expectation is for it to cut its main interest rate for a second straight time. The hope that's propelled U.S. stock indexes to records recently is that the U.S. economy can remain resilient and avoid a longfeared recession, in part because of the coming cuts to rates expected from the Fed.
On Wall Street, Nvidia rose 0.5%, and SherwinWilliams jumped 4.6% after learning they'll be replacing Intel and the parent of the Dow chemical company in
Stocks fell in the nuclear power industry after U.S. regulators denied a request that would have sent more electricity to an Amazon data center from a Pennsylvania nuclear plant run by Talen Energy. Companies across the power industry have been making deals with data center operators to feed their growing need for more electricity, and Talen fell 2.2%. All told, the S&P 500 fell 16.11 points to 5,712.69. The Dow dropped 257.59 to 41,794.60, and the Nasdaq composite lost 59.93 to 18,179.98.
In stock markets abroad, indexes were mostly lower in Europe after rising in much of Asia.
sales on the e-commerce giant's platform. Under the program, sellers who use the company's fulfillment services in the U.S. could choose to offer customers a traditional refund for purchases under $75 along with no obligation to return what they ordered.
Amazon did not immediately respond to questions about how the program works. But publicly, it has pitched returnless refunds more directly to international sellers and those who offer cheaper goods. Items sold in an upcoming section of Amazon's website, which will allow U.S. shoppers to buy low-cost goods shipped directly from China, will also be eligible for returnless refunds, according to documents seen by The Associated Press.
In January, Walmart gave a similar option to merchants who sell products on its growing online marketplace, leaving it up to sellers to set price limits and determine if or how they want to participate.
China-founded e-commerce companies Shein and Temu say they also offer returnless refunds on a small number of orders, as does Target, the online shopping site Overstock and pet products e-tailer Chewy, which some customer said had encouraged them to donate unwanted items to local animal shelters.
Wayfair, another online retailer cited by some customers as offering
returnless refunds, did not reply to a request for comment on its policies.
Deciding who is eligibleand when Overall, retailers and brands tend to be careful about how often they let customers keep items for free. Many of them are deploying algorithms to determine who should be given the option and who should not.
To make the decision, the algorithms assess multiple factors, including the extent to which a shopper should be trusted based on prior purchasing – and returning – patterns, shipping costs and the demand for the product in the customer's hands, according to Sender Shamiss, CEO of goTRG, a reverse logistics company that works with retailers like Walmart. Optoro, a company that helps streamline returns for Best Buy, Staples and Gap Inc., has observed retailers
assessing the lifetime value of a customer and extending returnless refunds as a type of unofficial, discreet loyalty benefit, according to CEO Amena Ali.
The king of online retail appeared to verify the process works that way.
In a statement, Amazon said it offers returnless refunds on a "very small number" of items as a "convenience to customers."
The company also said it's hearing positive feedback from sellers about its new program that authorized them to tell customers they could keep some products and still be reimbursed. Amazon said it was monitoring for signs of fraud and setting eligibility criteria for sellers and customers. It didn't provide additional details on what that encompassed. The Public is hereby advised that I, KASHA ABIGAIL FOX, of Hamster Road, Nassau, The Bahamas, intend to change my name to KASHA ABIGAIL SEYMOUR If there are any objections to this change of
the Dow Jones Industrial Average.
A SCREEN on the floor of the New York Stock Exchange, Monday, Nov. 4, 2024 shows a broadcast talking about Kamala Harris and Donald Trump. Photo:Richard Drew/AP
PEOPLE return items purchased online at an Amazon counter inside a Kohl’s department store in Clifton, New Jersey, on September 3, 2021.
Photo:Ted Shaffrey/AP
BOEING MACHINISTS HOLD CONTRACT VOTE THAT COULD END THEIR 7-WEEK STRIKE
By DAVID KOENIG and LINDSEY WASSON Associated Press
UNIONIZED factory workers at Boeing were voting Monday whether to accept a contract offer or to extend their strike, which has lasted more than seven weeks and shut down production of most Boeing passenger planes.
A vote to ratify the contract on the eve of Election Day would clear the way for a major U.S. manufacturer and government contractor to resume airplane production. If members of the International Association of Machinists and Aerospace Workers vote for a third time to reject Boeing's offer, it would plunge the aerospace giant into further financial peril and uncertainty.
In its latest proposed contract, Boeing is offering pay raises of 38% over four years plus ratification and productivity bonuses. IAM District 751, which represents Boeing workers in the Pacific Northwest, endorsed the proposal, which is slightly more generous than one the machinists voted down nearly two weeks ago.
Union officials said they achieved all they could though bargaining and the strike, and that if the current proposal is rejected, future offers from Boeing might be worse. They expect to announce the result of the vote late Monday.
Boeing says average annual pay for machinists is $75,608 and would rise to $119,309 in four years under the current offer.
Pensions were a key issue for workers who rejected the company's previous offers in September and October. In its new offer, Boeing did not meet their demand to restore a pension plan that was frozen nearly a decade ago. If machinists ratify the contract now on the table, they would return to work by Nov. 12, according to the union. The workers got their last paychecks in midSeptember, a few days after the strike started, and are likely facing more pressure on their personal financial well-being.
Bernadeth Jimenez, who has worked in quality assurance at the Boeing plant in Everett, Washington, since 2022, said she voted "yes" on Monday after voting
NOTICE
NOTICE is hereby given that HILARY SHEEHAN of #2 Governor’s Cay, Sandyport, 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 5th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
against previous company offers. She was satisfied with the proposed wage increases, and said she never expected a pension anyway — she's putting money her 401(k) plan.
"This (offer) is good, and I really want to go back to work," she said. "This time we're ready."
Theresa Pound isn't ready. The 16-year company veteran said she voted "no" just as she did on the two earlier offers that went to a vote.
"Adding 3% (to the previous offer) doesn't change anything for my future. It still doesn't solidify that when I retire I'm going to have a comfortable living, and that's the bottom line," she said. "Instant gratification is not going to save me."
Both Jimenez and Pound have husbands who also work at Boeing, and both couples anticipated the strike and worked overtime before it started. Still, money is getting tight.
"We're making it by the best we can," Pound said. "We're going to run out soon, but it's not going to be a stopping point for me to say, 'Well, I'm out of money. I need to go back.'
I'm going to find other ways to make it work."
The strike began Sept. 13 with an overwhelming 94.6% rejection of Boeing's offer to raise pay by 25% over four years — far less than the union's original demand for 40% wage increases over three years.
Machinists voted down another offer — 35% raises over four years, and still no revival of pensions — on Oct. 23, the same day that Boeing reported a thirdquarter loss of more than $6 billion. However, the offer received 36% support, up from 5% for the mid-September proposal, making Boeing leaders believe they were close to a deal.
The contract rejections reflected bitterness that
NOTICE
NOTICE is hereby given that ALEX BRENDEN LOUISSAINT, Lazzertto, Nassau, Bahamas, 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 5th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
built up after union concessions and small pay increases over the past decade.
The new proposal that Boeing made last week offered slightly larger pay increases plus a $12,000 contract-ratification bonus, up from $7,000 in the previous offer, and larger company contributions to employees' 401(k) retirement accounts.
Boeing also promises to build its next airline plane in the Seattle area. Union officials fear the company might withdraw the pledge if workers reject the new offer. The strike drew the attention of the Biden administration. Acting Labor Secretary Julie Su intervened in the talks several times, including last week.
The labor standoff — the first strike by Boeing machinists since an eightweek walkout in 2008 — is the latest setback in a volatile year for the company.
Boeing came under several federal investigations after a door plug blew off a 737 Max plane during an Alaska Airlines flight in January. Federal regulators
put limits on Boeing airplane production that they said would last until they felt confident about manufacturing safety at the company.
The door-plug incident renewed concerns about the safety of the 737 Max. Two of the plane's crashed less than five months apart in 2018 and 2019, killing 346 people. The CEO whose effort to fix the company failed announced in March that he would step down. In July, Boeing agreed to plead guilty to conspiracy to commit fraud for deceiving regulators who approved the 737 Max. As the strike dragged on, new CEO Kelly Ortberg announced about 17,000 layoffs and a stock sale to prevent the company's credit rating from being cut to junk status. S&P and Fitch Ratings said last week that the $24.3 billion in stock and other securities will cover upcoming debt payments and reduce the risk of a credit downgrade. The strike has created a cash crunch by depriving Boeing of money it gets when delivering new planes to airlines.
N O T I C E RONGCHENG LIMITED
N O T I C E IS HEREBY GIVEN as follows:
(a) RONGCHENG LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said company commenced on the 31st October, 2024 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas
Dated this 5th day of November, A. D. 2024. Bukit Merah Limited Liquidator
N O T I C E
NEW SILVER INTERNATIONAL LIMITED
N O T I C E IS HEREBY GIVEN as follows:
(a) NEW SILVER INTERNATIONAL LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said company commenced on the 31st October, 2024 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas
Dated this 5th day of November, A. D. 2024. Bukit Merah Limited Liquidator
A BOEING employee holds up flyers encouraging others to vote no on a new contract offer from the company, Monday, Nov. 4, 2024, in Everett, Wash.
