11152019 BUSINESS

business@tribunemedia.net

FRIDAY, NOVEMBER 15TH, 2019

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BPL investing $30m to combat bad debts By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

B

AHAMAS Power & Light (BPL) will invest $30m in rolling-out Advanced Metering Infrastructure (AMI) that it sees as critical to slashing delinquent private sector debts, its chairman revealed yesterday.

Dr Donovan Moxey told Tribune Business that the funding has already been budgeted, and contractor selected, for an initiative that will “put the power to manage� energy consumption in the hands of BPL’s household

• Vendor selected for Advanced Metering roll-out • Says: See bond costs as ‘investment in future • Chair: ‘We’re creating a brand new company’

DR DONOVAN MOXEY

and business consumers.

The AMI initiative, which was on the drawing board under the previous Darnell Osborne-led Board, will introduce the concept of pre-paid metering to the Bahamian electricity industry for the first time. Much like pre-paid cell phones, consumers will be able to “top-up� their new meters as they go, with the technology-based platform also providing apps and mobile links.

Bahamians will thus be able to control their energy consumption as opposed to the present system where many Bahamians and households run-up huge bills they are unable to afford, but only become aware of this after the fact - much like a post-paid mobile phone customer.

BPL’s hope is that, besides preventing consumers from falling into a financial hole

SEE PAGE 4

Bahamas is ‘so far behind curve’ on renewable goal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas faces a “tall order� to meet the National Energy Policy’s 30 percent renewable energy penetration by 2030 goal because it is “so far behind the curve�, a local provider warned yesterday.

Guilden Gilbert, vicepresident of Alternative Power Solutions (APS) Bahamas, told Tribune Business that this nation was likely at two percent with just a decade to go as he backed an Inter-American Development Bank (IDB) paper detailing the “governance and regulatory� obstacles to increased renewable take-up.

The paper, which has been obtained by Tribune Business, indicates that the government’s interest in renewables has revived as

• Provider: Hitting 30% by 2030 ‘a tall order’ • IDB: 90% of Abaco ‘destroyed or damaged’ • Regulators ‘frustrating’ solar to help BPL a means to rebuild Abaco’s energy sector after Hurricane Dorian “damaged or destroyedâ€? 90 percent of that island’s housing and infrastructure.

Dr Hubert Minnis, speaking to ambassadors from the Africa, Caribbean and Pacific (ACP) Group of States during this week’s visit to Brussels, said initial damage assessments by the IDB and United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC) put the total damages inflicted by Dorian at $2.4bn.

Economic losses have been estimated at $700m, with an “additional cost� of $200m also thrown in,

and the Prime Minister confirmed that The Bahamas’ projected economic growth for 2019 had been cut in half to 1.1 percent.

The IDB paper reveals that some $50,000 of a $750,000 in funding being made available to The Bahamas to assist with renewable energy and institutional reform will be directed towards the “immediate rehabilitation� of Abaco’s electricity infrastructure.

Another component, though, is targeted at regulatory strengthening and reform, and Mr Gilbert backed the IDB’s assertion that continued flaws

and weaknesses in this area continue to hold back the renewable energy industry and wider private sector. “Market governance and regulatory-related challenges continue to be among the hindrances to the implementation of several energy projects, especially with respect to renewable energy and private sector participation,� the IDB said. “The Bahamas ranks lowest in the region for renewable energy penetration in its generation mix despite of possessing ample renewable energy resources.

Accelerating the transition

SEE PAGE 4

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Follow CIBC lead on BOB, ex-FNM chair tells govt

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A PROMINENT Bank of The Bahamas shareholder yesterday urged the government to follow CIBC’s lead and “be more aggressive� in seeking to exit its 82.6 percent majority ownership of the lender. Darron Cash, the former Free National Movement (FNM) chairman and senator, told Tribune Business that the government needed to “stop looking in the rear view mirror� and instead seek to facilitate the “progressive, smart and capable Bahamians interested� in entering commercial bank ownership.

Declining to identify who he was referring to, Mr Cash added that the government “should not be naive� and believe it can recover the $300m-plus of taxpayer monies pumped in to rescue Bank of The Bahamas through two bail-outs and a subsequent rights issue.

Applauding suggestions

by K Peter Turnquest, the deputy prime minister, that the BISX-listed bank is seeking strategic partners, he argued that it was “only when the government becomes a minority shareholder� that investors and the Bahamian public will gain confidence the possibility of political interference has been removed from its decision-making.

CIBC, the Canadian banking giant, has done just that by agreeing to see a two-thirds interest in its FirstCaribbean subsidiary to Colombia’s GNB Financial Group. It will become a minority partner with an ownership interest just below 25 percent, and Mr

DARRON CASH Cash said the deal provided an example for the government to follow with Bank of The Bahamas now that its financial position has “stabilised�. “In my view, the fact that CIBC FirstCaribbean has turned over a significant portion of its equity should be an indication to the Government of The Bahamas that it needs to be more aggressive in its efforts to find new, progressive owners for Bank of The Bahamas,� Mr Cash told Tribune Business. “The level of passion, concentration and focus that will come from an independent non-government owner you will not see from the Ministry of Finance, who will be less aggressive about exploring new means to generate new business or taking well-calculated risks. “That’s not their focus, and I daresay it is not going to be the focus of the Board of Directors who are going to be concerned as to what the Ministry of Finance may be thinking over the decisions they make. True autonomy means getting out of the business,� he continued. “The government will have a lot more information on the extent of interest

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Union seeking ‘seat at table’ on CIBC deal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

UNION leaders have written to the government seeking a “seat at the table� over the approval of CIBC FirstCaribbean’s majority sale to a Colombian-headquartered financial group.

Teresa Mortimer, the Bahamas Financial Services Union’s (BFSU) president, told Tribune Business it was seeking “a say in what happens� following confirmation that the Canadian bank is selling a two-thirds majority stake

in its Caribbean operation to GNB Financial Group, which is owned by the Gilinski family.

She added that the BFSU, which represents 300 Bahamian staff at CIBC FirstCaribbean, and unions from other countries had also requested to meet GNB in a bid to discover its plans and how they might impact existing industrial agreements and “job security�.

Ms Mortimer said union representatives had held a conference call with CIBC FirstCaribbean management

SEE PAGE 5

Long Island eyed by cruise ships By YOURI KEMP LONG Island is being eyed as “a preferred cruise ship destination� by two operators, its MP revealed yesterday, with vessels set to make four calls in 2020.

Adrian Gibson, also executive chairman of the Water and Sewerage Corporation (WSC), told the Long Island Business Outlook conference that The Silver Wind plans to make three stops in Long Island next year while the Silver Shadow will make one call.

Mr Gibson said: “I am pleased to confirm that our island is being considered as a preferred destination by at least two cruise ship operators. “I am advised that over the course of the next two years, a commitment has been made to Long Island for the Silver Wind to come in January 2020, February 2020 and March 2020, and then in December 2020, the Silver Shadow, and in March 2021, the Club Med 2.

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PAGE 2, Friday, November 15, 2019

THE TRIBUNE

Govt ‘won’t abandon’ LI airport upgrade as investors shy away

By YOURI KEMP THE government’s top aviation official yesterday pledged it “will not abandon” the planned revamp of Long Island’s Deadman’s Cay airport despite failing to attract private investors to the project.

Algernon Cargill, pictured, the Ministry of Tourism and Aviation’s director of aviation, told the Long Island Business Outlook conference that those approached by the government believed “the airport is too small” to generate a profitable return on their investment.

To overcome this reluctance, Mr Cargill said the government planned to market the Deadman’s Cay airport as part of a “package” deal with other Family Island airports set to undergo similar multimillion dollar upgrades.

He explained that, if private investors were interested in investing in Exuma’s (Georgetown) or north Eleuthera airports via a public-private partnership (PPP), then Long Island’s airport must be included as part of the deal.

“We are packaging this airport along with other airports, so that if we have investors that are interested in the Exuma airport - and if they want a public private partnership with the Exuma airport - we will say to them: ‘Yes, that is possible, but the Deadman’s Cay airport must be a part of the package’. We will not abandon this airport,” Mr Cargill said.

Deadman’s Cay is one of 28 Family Island airports that the Government wants to upgrade to international standards set by the International Civil Aviation Organisation (ICAO) and other regulatory bodies, so that they can receive international flights and improve the location’s

accessibility to both tourists and Bahamians.

Consultants have placed at $180m-$200m total price tag on overhauling all these locations and, given that the cash-strapped Public Treasury’s issues have only worsened since Hurricane Dorian, the government has little choice but to seek private capital and investors to meet these costs.

Long Island residents and businesses have long viewed the Deadman’s Cay airport as a critical infrastructure upgrade, believing the absence of a facility that can receive direct international flights has deprived the island of its rightful tourism market share.

Promising that the new airport will be designed “20 years into the future”, Mr Cargill said its planning would seek “to avoid this flooding of the runway in Deadman’s Cay” as occurred when Hurricane Joaquin struck the island in 2015.

“The plan is to extend the runway from 4,400 feet to 6,500 feet to accommodate large jets that can bring up to 100 passengers,” he explained. “The 6,500 foot runway will equate what we have in most of our islands. The proposed runway will be able to accommodate the American Airlines regional jets and similar planes.... so international flights can fly into Long Island.”

Mr Cargill continued: “A 10,000 square foot

terminal will be designed to accept both international and domestic flights. The design is now 50 percent completed and expected to break ground early 2020.

“We have to build capacity for the future. We are building for 20 years into the future, and will work on securing the required land we need to extend the runway and build a new terminal.”

Mr Cargill said the airport’s terminal and runway expansion will be achieved by the government’s compulsory acquisition of the necessary land from private owners. He promised: “There will be compensation for the owners of the land. The government does not want to have the land for free, but [seeks] co-operation with the proposed owners who also wish to see the airport being developed.”

Looking to the future, Mr Cargill said: “Now is the time to prepare for when the airport comes and, certainly, if Long Island is going to capitalise on the fate of what happened to the islands of Abaco and Grand Bahama.

“We are planning to focus on the actual impact of aviation’s contribution directly to tourism but, unfortunately, The Bahamas does not produce consistently aviation-related data and aviation’s direct contribution to tourism or the GDP of The Bahamas. But we are working with the Department of Statistics and outside sources to be able to track aviation contribution to GDP and the subsequent spin-offs in The Bahamas.”

The architect for the Deadman’s Cay airport is Gus Ferguson of Ferguson’s Architects, and the runway engineer is Lambert Knowles of Engineering & Technical Services Bahamas.

Pirate attraction sails into cruise conference

FROM left: Chris Lightbourne of Pirates Revenge; Carla Stuar, senior director of cruise and maritime in the Ministry of Tourism and Aviation; Anthony Knowles, proprietor of Pirates Revenge; Christina Manjencic, vice-president of destination services, Norwegian Cruise Lines; and Clay Saunders, office of the minister.

THE Bahamian investors behind the Blackbeard’s Revenge attraction generated significant interest at the Florida-Caribbean Cruise Association’s (FCCA) recent 26th annual conference.

Blackbeard’s Revenge, a ship that mirrors the design of pirate vessels from the 1700s, launched its day and evening tours of Nassau Harbour earlier this year complete with a cast of colourful pirates.

Its parent company, Pirate’s Revenge, is now aiming to secure its bounty from attending the FCCA conference through discussions with several cruise lines that have expressed interest in selling the tour to their customers.

Those cruise lines include Norwegian Cruise Lines, Mediterranean Shipping Company (MSC), Royal Caribbean Cruise Lines, Disney Cruise Lines and Carnival Cruise Lines.

Anthony Knowles, Pirate’s Revenge’s founder, who travelled with tourism officials to the FCCA conference said he feels business is about to significantly increase.

“It was a very successful trip and I am happy that we did it. I feel that the business is about to turn around in the right direction,” he said. “It was very encouraging, and the ships really warmed up to us. I think the trip was a defining point for the future of Blackbeard’s Revenge.”

Mr Knowles said he hopes his success will lead to a rebranding of pirate tours in Nassau.

“We are hoping to have a tour where visitors can follow the footsteps of where pirates walked.

There really is growth in that area. We want to hire more people and build another boat to stage a war at sea,” he said.

“We have to adapt to the demand that we are looking to come our way.”

The FCCA Conference is a four-day event designed to improve understanding of how the cruise industry works, and to help attendees improve the business they attract from the industry.

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THE TRIBUNE

Friday, November 15, 2019, PAGE 3

Dorian-hit islands seeking $5.7m in business finance

By YOURI KEMP THE Small Business Development Centre (SBDC) has received $5.7m in total financing requests from the two Doriandevastated islands in the storm’s aftermath, a senior advisor said yesterday.

Winston Rolle, also a former Bahamas Chamber of Commerce president, said the centre has received requests for $1.7m from Abaco-based entrepreneurs and $4m from Grand Bahama-based businesses, and has already begun to process the necessary approvals.

He added that the

centre has also opened an office in the Bahamas Agricultural and Industrial Corporation’s (BAIC) Abaco premises as of this week, and its staff have been seeing ten to 15 entrepreneurs per day - along with the 25 already in the system - who are eager to obtain financing to restore their ventures in Dorian’s wake.

Highlighting the demand for services from an entity created by the government, working with the University of The Bahamas and the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), to solve the problems

micro, small and mediumsized enterprises (MSMEs) have endured in accessing capital, Mr Rolle said the centre to-date has secured access to $2.5m for 78 companies.

Some $1.7m of this sum is loans, and another $800,000 grants. Mr Rolle explained that the centre did not lend money itself, but instead helped entrepreneurs qualify for financing and then provided a guarantee to underwrite it with either the commercial banks or Bahamas Development Bank.

Arguing that the centre’s involvement has already

LONG ISLAND UNDERGOES INFRASTRUCTURE OVERHAUL

By YOURI KEMP

A CABINET minister yesterday updated Long Island residents on multiple infrastructure investments designed to improve the island’s capital stock, economy and resilience against climate change.

Desmond Bannister, minister for works, told the Long Island Business Outlook conference that “The Bahamas’ risk resilient Integrated Coastal Zone Management programme” was now underway between the Deadman’s Cay and Mangrove Bush settlements.

He explained that the pilot test-area and project includes identifying “the key flood risk areas, and providing infrastructure for increased resilience to flooding - both from overtopping, storm surges/hurricanes and from sea level rise”.

“The overall focus on this pilot site is therefore to provide increased resilience through a thorough assessment of disaster risk management and climate change adaptation techniques,” Mr Bannister said. “There will be a core focus on providing sustainable solutions incorporating ecosystem-based adaptation methods.

“The study site is an example of an area that is very vulnerable to flooding and storm damage, and although the overall impacts from these can be managed, they will never be completely mitigated.

Therefore, innovative and adaptive techniques are required alongside the more traditional hard engineering structures to provide a more sustainable and effective solution.”

Mr Bannister added that Long Island’s Newton Cay Bridge will be completed by Valentines Day 2020 , and pledged “an iconic bridge providing access to Newton’s Cay, with a concrete seawall and adjacent car parking area; reinforced concrete approach slabs to both sides of the bridge; parapets to bridge headwalls; road resurfacing in the vicinity of the site; and provision of solar street lighting to the site.

“The bridge itself is being built at a factory in Oregon, and is expected to take six to eight weeks, so the bridge should be delivered to Long Island in January 2020,” he said. “As the

DESMOND BANNISTER bridge components are all pre-fabricated, the erection of the structure happens quickly and, hopefully, we can celebrate the grand opening around Valentine’s Day of 2020.”

Mr Bannister said the contract for engineering work on the upgraded Deadman’s Cay airport had been given to a Bahamian joint venture team of Gus Ferguson, of Ferguson’s Architects, and Lambert Knowles, of Engineering & Technical Services Bahamas, for a fixed fee of $670,000.

“The scope of the design is to provide Deadman’s Cay International Airport with a new airport terminal design, redeveloped and extended runway and apron design, and a crash, fire and rescue building that can provide limited but comprehensive services to the Long Island community as well as visitors who travel to the island by air,” Mr Bannister said.

“The new design must take into consideration the needs of the operational activities of the airport and fit the local environment, space constraints and estimated budgets that will likely be invested in this project. The design will include standardised airport rescue fire fighter safety facilities.”

Mr Bannister added that while there have been some delays with the Deadman’s Cay airport project, particularly the issuing of the construction contract that had been scheduled for March 2020, he said the revised timeline would see the new facility’s design developed by March 2020 and approved by May next year.

The tender/bidding process for the construction work will take place from June to August 2020, with the contract issued by September 2020.

Mr Bannister added that the Monument Road’s “road base work is

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50 percent completed, and the reinforced concrete steps are 80 percent completed.

Barring any unforeseen circumstances it is anticipated that work will be completed by the end of December 2019”.

He said Long Island residents will “likely see tender documents issued to qualified contractors in January” for further road works and repairs with the aim of works starting in April next year.

improved MSME access to financing, particularly through its main commercial banking partner, Royal Bank of Canada (RBC), Mr Rolle said the bank’s small business development loan facility had already been “exhausted” within eight months with the second cycle set to be similarly depleted before the end of the year.

He added that three businesses in Long Island were approved for funding last Friday by the centre’s credit committee out of 40 firms registered.

The centre’s ratio of advisors to applicants currently stands at one for every 75.

Mr Rolle said: “We want to get MSMEs into the formal economy because those that are not are also not paying taxes and are not contributing to the development of the country.

“Ninety percent of all registered companies are considered MSMEs. They employ 47 percent of the people but have less than 25 percent of the turnover.

We took a group to an expo in Atlanta for them to look at opportunities to export their goods throughout the United States.

“We are also putting in plans to participate at Dubai 2020, where the SBDC will have storefront at Dubai

WINSTON ROLLE 2020 for a whole month with the expectation to showcase Bahamian products and services in Dubai in 2020.”

Mr Rolle said the centre is meeting and creating linkages with international firms investing in The Bahamas so MSMEs can take advantage of the opportunities provided by the likes of Disney and Carnival Cruise Lines.

The government’s Heads of Agreement with such investors stipulate that they are “supposed to engage local companies” in a number of areas.

NIB SMART CARD SET FOR DEBIT UPGRADE

By YOURI KEMP THE National Insurance Board (NIB) is aiming to upgrade its smart card to a “debit card” through a tender process that will be launched shortly, its director said yesterday.

Nicola Virgill-Rolle told the Long Island Business Outlook conference that the national social security system’s latest digital proposal sought to improve beneficiaries’ access to its various benefits - especially given how Hurricane Dorian impacted Abaco’s banking system.

“Hurricane Dorian showed us that we need more methods for payments, because often-times the automated teller machine (ATM) will still be standing,” she said. “Right now we pay our clients through direct deposit to their bank account, and also by cheque.

“But we want to keep up with the moves being made through the Central Bank with regard to digital payments, and a Request for

Proposal (RFP) is coming out shortly for an electronic payment system where NIB will be upgrading your NIB smart card to a ‘debit type of card’ where we can pre-load benefits on the card and then you withdraw money from an ATM.” Turning to NIB’s newlylaunched Employer Self-Service (ESS) portal, Mrs Virgill-Rolle said it would “validate immediately” all contributions all information submitted. She added that if details such as names, date of birth or insurance number sere incorrect it would be rejected by the system, forcing employers to make adjustments before their filing is accepted.

“Similarly, with the claims process we want to make sure everything is validated,” Mrs Virgill-Rolle said, “so whatever you need to have is there and the process won’t let you go any further until you have all of your information in.” She said this often caused delays, with documents being stuck in the “queue” at specific NIB departments, because they may be missing certain pieces of information.

Mrs Virgill-Rolle said NIB fields 22,000 calls per month on New Providence alone, and revealed that it plans to create a call centre to handle this load. “We have been investing in a new telephone system to do a whole lot of innovative things, along with structuring a call centre so someone who can answer the phone can give you the answer you need,” she added.

Mrs Virgill-Rolle said NIB is launching customer service kiosks and public wi-fi for clients.

PAGE 4, Friday, November 15, 2019

BPL investing $30m to combat bad debts FROM PAGE ONE

that ultimately ends in their disconnection from the electricity grid, its AMI plans will also prevent the buildup of more than $66m in delinquent debt owed by households and businesses that it is carrying as a receivable on its balance sheet.

And, although Dr Moxey did not directly say so, the AMI initiative will likely form a key element in BPL’s strategy to ensure it collects all the debt servicing fees that will be levied upon consumers to pay the interest owed to investors from its $650m bond refinancing.

Tribune Business reported earlier this week that the greatest weakness, or “Achilles heel”, of the National Utility Investment Bond is BPL’s legacy woes in collecting all sums due from customers. Failure to improve in this area could potentially result in insufficient income as the bond debt falls due, and lead to compliant consumers bearing an increasing burden on behalf of their bill-ducking counterparts.

“One of the things we’re looking at doing, and it’s something that we’ve talked about before, is implement AMI,” Dr Moxey told Tribune Business. “We’ve allocated $30m in the budget for AMI implementation. We’ve also approved the vendor for that. AMI is definitely one of the tools that is going to help us.”

The BPL chair described the AMI roll-out as “a very powerful platform” that will provide the stateowned utility monopoly

and its consumers “with the infrastructure to improve customers having more flexibility in managing electricity and paying their bills”.

While unable to specify how much consumers will pay to service the National Utility Investment Bond, or the potential impact on total electricity bill amounts, Dr Moxey urged Bahamians to view this as “making a small investment that is going to secure the future of the country”.

He added that their contribution to BPL’s refinancing would ultimately pay significant dividends via lower electricity costs that will more than offset the bond servicing costs, with the utility able to provide a more stable, cheaper power supply via the Wartsila engines and partnership with Shell for the new multifuel power plant.

Disclosing that BPL was “hitting the reset button”, Dr Moxey said its transformation strategy will result in “the creation of a brand new company” as part of the government’s mandate that it “fix the energy problems in this country once and for all”.

“People have to understand what BPL is going through now. We’re looking to hit the reset button,” he told Tribune Business.

“We’re creating a brand new company. Folks need to understand that is the goal here. It’s not easy to turn the ship, but when we do it will be a game changer for the economy.

“Bahamians have to recognise that if we’re doing this kind of change it will

help everybody. Everyone will have to contribute in some small way. What’s being asked of Bahamians is to make an investment in the future of the country.”

Dr Moxey said the bond issue’s price (interest rate) and consumer debt servicing charge had yet to be determined as the process of placing the $650m issue was “still in flux”. BPL, the special purpose vehicle (SPV) that will issue the bonds, and their advisers are now waiting for the issue to be given a credit rating - something that will signal to the capital markets the price investors should pay for the bonds based on the risk the borrower may be unable to repay.

He pledged, though, that BPL would seek to minimise the financial pain for consumers. “There will be a change in the structure of the bill with respect to the fee, but our goal is to make sure the overall cost is not a significant impact to the overall bill,” Dr Moxey said.

“We’re working to make the impact neutral, and when we bring in liquefied natural gas (LNG) and new generation we’ll be looking to reduce the cost of electricity. We want to do this with minimal impact to the Bahamian people, our customer.”

Describing the upcoming changes at BPL as “transformational”, Dr Moxey said he was “very confident” that the 132 megawatts of (MW) of new generation capacity being supplied by Wartsila will be online by the midDecember deadline.

With these engines set

to produce around twothirds of New Providence’s 200 MW-210 MW winter demand, he voiced optimism that the summer-long nightmare of three-to-four hour outages and blackouts will now be past history.

“Myself and the chief executive visited the plant on Monday gone, and everybody we spoke to - including the project managers - indicated they are well on schedule and have no issues they can foresee that will delay the December 15 date,” Dr Moxey added.

“The 132 MW is the largest single plant ever installed

by BPL. It will definitely improve supply reliability, no question about it, and because of the higher efficiency engines there will be a lower cost of fuel to produce power, so customers will see those savings.”

The BPL chairman, though, confirmed that “no decision” had been made on the proposal for the utility to become Shell’s joint venture partner in the new 222 MW power plant it will construct in southwestern New Providence.

“We’ve put some ideas, thinking forward, but there’s nothing on paper, nothing signed as yet,” Dr Moxey told Tribune Business.

Describing the negotiations on a final agreement with Shell as “progressing well”, he added that year-end 2021 was still the target date for completing the power plant and nothing had emerged to suggest there will be delays in that timeline.

THE TRIBUNE

Bahamas is ‘so far behind curve’ on renewable goal FROM PAGE ONE to a renewables-based energy system represents a unique opportunity for The Bahamas and other Caribbean countries to meet climate change mitigation goals while fueling economic growth, creating new employment opportunities and enhancing human welfare.”

While the IDB noted the National Energy Policy’s goal of renewables accounting for 30 percent of this country’s generation mix by 2030, Mr Gilbert told Tribune Business: “I don’t see The Bahamas getting there because it’s so far behind the curve.

“I think the penetration is still probably less than five percent in total. I don’t think we’ve reached ten percent as yet. We’re going into 2020, so that gives us ten years to do another 25-27 percent. That’s a fairly tall order. I would definitely say The Bahamas is way behind where it should be.

“I believe BPL’s generation capacity for New Providence was 270 MW. Thirty percent of 270 MW is 81 MW. To get 81 MW in ten years will be a fairly tall order, especially if it is less than ten percent now.

Ten percent is 27 MW and I don’t think we’re anywhere near that in the renewable industry. I guess we’re maybe at five MW, six MW at the top end. That puts us at two percent.”

The IDB paper highlighted the main risk to its proposed energy intervention as “the lack of expertise” in the key agencies responsible for regulating/facilitating renewable energy in The Bahamas, namely BPL, the Ministry of Works and the Ministry of the Environment.

“A potential risk... is related to the lack of expertise to support key interventions required by energy actors in a timely fashion,” the IDB said. “The designation of a full-time technical expert dedicated to advising the Ministry of Finance and BPL on energy planning, governance and renewable energy co-ordination to move forward the agenda will help mitigate this risk.

Another general risk is the lack of understanding of renewable energy issues, which causes delays and a lack of buy-in on key energy activities.”

Backing this aspect of the IDB’s findings, Mr Gilbert said the unfriendly regulatory environment had been

further exposed by the ongoing Utilities Regulation and Competition Authority (URCA) consultation over the proposed “buy all, sell all” approach for compensating renewable energy self-generation (RESG) systems that want to tie-in and sell excess power to BPL. This approach, according to URCA, means that homeowners and businesses will not be able to consume any electricity generated by their renewable systems. They will instead have to export all energy they generate to BPL, and consume all the electricity they need from the state-owned monopoly at the standard retail tariff levied on all its customers, receiving the equivalent of the utility’s fuel charge as compensation.

“The latest URCA consultation makes it abundantly clear there’s no real interest in commercial scale solar,” Mr Gilbert told Tribune Business. “It’s even looking to frustrate residential solar. Why am I going to invest $30,000$40,000 to put solar systems in my house when I can’t get access to it. It makes no sense.

“Our view on what is being proposed by URCA is it’s really a way for the utility to have solar input but they don’t have to pay for it.

They don’t have to come up with the capital expense of installation. They’ll put it on residential and commercial customers to install the systems and get full access to the power without having to pay the cost of installation.

“The entire document seeks to protect BPL rather than force them to become efficient. It allows the status quo. It’s protecting BPL. Everywhere else in the world utilities are open to receiving power and paying a fair rate. I agree with the IDB that the regulatory and institutional support is not in place. Not by a long way.”

Comparing The Bahamas to its Caribbean rivals, Mr Gilbert said Jamaica was in the process of finishing or had even completed - a 30 MW solar photovoltaic plant. He argued that The Bahamas needed to follow suit by executing rather than just talking.

Mr Gilbert said he had several clients exploring the possibility of developing “fairly sizeable” utility-scale plants in The Bahamas, but these were all in the early stages and no decision on whether to proceed had been taken.

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THE TRIBUNE

Friday, November 15, 2019, PAGE 5

Follow CIBC lead Long Island eyed on BOB, ex-FNM by cruise ships chair tells govt FROM PAGE ONE

FROM PAGE ONE Bahamians have about going into opening a bank, and they ought to invite those Bahamians to seriously consider taking majority ownership of Bank of The Bahamas at the right price.

“There are progressive, smart, capable Bahamians who are interested in getting into the banking business and providing effective competition among the dinosaurs that exist presently. Government ought to be bending over backwards to accommodate them. That ought to be where they look.”

The government owns Bank of The Bahamas through the Public Treasury and National Insurance Board (NIB), and Mr Cash accused it of “looking in the rear view mirror and thinking naively of means to recoup what they’ve spent” on rescuing the BISX-listed institution since 2014.

Warning that this is “not going to happen”, the former FNM chairman added that the government could argue its actions have prevented Bank of The Bahamas from being formally wound-up and liquidated - a development that would have threatened $80m in losses for large depositors, as well as potentially undermining the wider banking system’s integrity and consumer confidence in it.

“Now that’s done and there’s a degree of stability, it’s time for them to get out the business,” Mr Cash told Tribune Business. “Bank of The Bahamas ought not to be a sacred cow. There’s nothing special about it. It’s time to move on and turn it over to people who are able to provide better competition to the dinosaurs.

“My caution from a valuation standpoint is that the government should not be naive in thinking it will be able to fully recoup what it’s pumped into the bank to save it. Those are sunk costs that are not going to come back.

“I confess to you that the more significant concern I have is the kind of money the Bahamian people have put into Bank of The Bahamas that they are not going to get a meaningful return on. I am most concerned that we need to get to a point where the government says this far and no further when it comes to putting money into Bank of The Bahamas,” he continued.

“The safest way to go no further is for the government to get out of that business. If the government stays in as owner there will be a repeat. There will be a repeat. It’s time to cut our losses.”

Bank of The Bahamas has been profitable since its 2018 financial year, although those earnings have been dwarfed by the $140m-plus losses it accumulated over the five prior years. Net income for the 2020 first quarter was down 75 percent year-over-year, although this was blamed on provisions taken to cover a $6m default judgment claim against it.

Mr Cash, meanwhile, said he was “encouraged” by Mr Turnquest’s comment that Bank of The Bahamas was open to seeking strategic partners, even though the deputy prime minister did not fully explain what he meant and the term has multiple meanings.

“I think that would be a positive step in the right direction,” he added. “In order for Bank of The Bahamas to get to a position of stability it really needs to increase its loan book a lot more substantially than it has been doing over the last few years.

“The inherent weakness the bank has had is that there will continue to be concerns as to whether or not we’ve seen the bottom of the non-performing loan portfolio.... Until such time as the government gets out of the majority ownership there will continue to be the concern that there’s a general sense that folks are not as obligated to settle debts to the government.

“It will only be when the government is a minority shareholder that people will have stronger confidence that government intervention, and the possibility of government intervention, will have been removed.”

Mr Cash said exiting the Bank of The Bahamas would be consistent with the government’s policy thrust to get out of business, as he expressed concern that the institution’s management may only feel the need to be accountable to its majority shareholder rather than all.

The former FNM chairman also backed the BISX-listed institution’s decision to sell its $103m trust portfolio to Leno Corporate Services in a $561,000 deal that has finally closed. He argued that this will enable management to better focus on its core lending business.

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Mr Gibson also highlighted the 50 jobs created on Long Island by contractor Bahamas Hot Mix as he addressed the WSC’s ongoing Bahamas water supply improvement project, which is being funded by a $28.33m loan from the Caribbean Development Bank (CDB. The government is providing $13.3m in counterpart funding.

“Thus far, projects have been completed in Pinewood Gardens Phase ‘B’, Coral Lakes Subdivision and Boatswain Hill in New Providence; San Salvador; we’re nearing substantial completion in South Andros; a ground breaking will be held for works in Crooked Island on November 25; and we anticipate issuing

a tender for works for Cat Island in the coming weeks,” Mr Gibson said.

Speaking about the works being done on Long Island, he added: “The extension of the Central Long Island water supply system northward to Thompson Bay, Lot 1, and southward to Lochabar, Lot 2, is nearing completion.”

“Lot 2, the southern leg to Lochabar, which is just south of Clarence Town, is now fully operational and the corporation anticipates commencing the provision of metered water supply to residents who have completed the application process in the coming weeks.

“Lot 1, the northern leg to Thompson Bay, which is just north of Salt Pond, is approximately 95 percent complete.”

Mr Gibson said the

ADRIAN GIBSON extension of the Central Long Island water supply system, which includes 94,000 feet or 17.8 miles of new water mains, will provide piped potable water to over 300 homes and businesses for the “first time” at a total cost of around $5m.

He added that beyond the works funded by the CDB, “WSC in-house teams have also already completed - and are in the process of completing - several projects to

improve the reliability and availability of potable water on Long island” Mr Gibson said: “For example, the supply and installation of community water storage tanks for the communities of Dunmore, Berry’s, Roses, Mortimers and Wood Hill at an estimated cost of $175,00, and the supply and installation of a stand-by generator at our Simms Desalination Plant at a cost of $60,000.

Union seeking ‘seat at table’ on CIBC deal FROM PAGE ONE

two days before the sale was formally announced, during which they were told that no deal had been signed, the Canadian parent was still talking to the buyer and it was “all talk”.

She added that it did “not go well” when she pointed out that K Peter Turnquest, the deputy prime minister, had told Tribune Business that same day that the purchaser had already been “introduced” to him.

The BFSU president revealed that she was then summoned early on Friday morning, with little notice, to attend another conference call during which CIBC FirstCaribbean executives admitted the sale to GNB had been signed the night before - just over 24 hours after the first conference call.

Questioning the bank’s transparency, given that the two sides are partners, Ms Mortimer told this newspaper: ‘‘We said to them we’d like to meet the buyer. We all have agreements that, sale or no sale, are binding.

“We want to meet the buyer and find out what they have in mind and where we go from here. With a sale it’s new ideas and everybody is looking for ways and means to cut costs.

We don’t want persons to lose their jobs. For us, job security is everything. What are we looking at? That’s what we need to ask the buyer.

“What are our members going to be faced with? What’s in it for our employees and members? That’s why we want to meet the buyer. That’s what we need to know. It’s job security and we need to know how it’s going to affect the employees and workers, not only in The Bahamas but the Caribbean.”

Tribune Business understands that the regulatory approvals required to consummate the deal could take up to a year to come through given that they are needed in 16 separate jurisdictions.

GNB is to acquire a 66.73 percent equity stake in FirstCaribbean, taking majority control from CIBC to enable the Canadian bank to begin its long-awaited Caribbean exit. The latter will retain a 24.9 percent minority position in its former regional affiliate once all necessary regulatory approvals in The Bahamas and other jurisdictions are received.

Colette Delaney, CIBC FirstCaribbean’s chief executive, told employees in an internal e-mail confirming the deal that the bank will have to rebrand - likely through dropping the CIBC portion of its name at the very least.

Its reliance on its former Canadian parent for back office and technology systems

support will also end, she added, with such services likely transitioning to independent services providers.

GNB’s plans for the business will only become fully known in time, yet it will be heavily reliant on The Bahamas and Turks & Caicos to produce the bulk of its profits - at least in the near-term.

While the Bahamian unit produced 32.3 percent, nearly one-third or just over $188m, of CIBC FirstCaribbean’s $581m top-line in 2018, its $85m in net income generated 84 percent of the bank’s regional $101m bottom line.

The Gilinski Group has banking operations in Colombia, Peru, Paraguay, Panama and the Cayman Islands with approximately $15bn in

combined assets.

“FirstCaribbean will remain the strong entity it is today, committed to servicing its clients in the region,” said Jaime Gilinski, chairman of GNB Financial Group. “I have been impressed by the strength and stability of FirstCaribbean, and am excited about its prospects for the future.”

“FirstCaribbean is a strong, well-performing business that continues to grow across the region. FirstCaribbean remains laser focused on delivering on its strategy – providing its clients with first-class service through a modern, every day banking experience and providing its employees with the best possible work experience,” said Ms Delaney, its chief executive.

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

PAGE 6, Friday, November 15, 2019

THE TRIBUNE

Pelosi says Trump’s Ukraine actions amount to ‘bribery’

HOUSE SPEAKER NANCY PELOSI WASHINGTON Associated Press

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HOUSE Democrats are refining part of their impeachment case against the president to a simple allegation: Bribery.

House Speaker Nancy Pelosi yesterday brushed aside the Latin phrase “quid pro quo” that Democrats have been using to describe President Donald Trump’s actions toward Ukraine. As the impeachment hearings go public, they’re going for a more colloquial term that may resonate with more Americans.

“Quid pro quo: Bribery,” Pelosi said about Trump’s July 25 phone call in which he asked Ukrainian President Volodymyr Zelenskiy for a favour.

Trump says the call was perfect. Pelosi said: “It’s perfectly wrong. It’s bribery.”

The House has opened its historic hearings to remove America’s 45th president, with more to come Friday, launching a political battle for public opinion that will further test the nation in one of the most polarising eras of modern times.

Democrats and Republicans are hardening their messages to voters, who are deeply entrenched in two camps.

Trump continued to assail the proceedings as “a hoax” yesterday, and House GOP Leader Kevin McCarthy dismissed the witness testimony as hearsay, at best second-hand information.

The president, who said he was too busy to watch the initial hearing as it was televised, caught up in the White House residence on Wednesday evening and tweeted along with a Fox News morning recap yesterday.

The president flatly denied the latest revelations. During Wednesday’s hearing a diplomat testified that another State Department witness overheard

Trump asking about Ukraine investigations the day after his phone call with Kyiv.

“First I’ve heard of it,” he said, brushing off the question at the White House.

The Associated Press reported yesterday that a second US Embassy official also overheard Trump’s conversation.

While Trump applauded the aggression of some of his GOP defenders, he felt that many of the lawmakers could have done more to support him and he pressed that case with congressional allies ahead of the next hearing, according to Republicans who were not authorised to speak publicly about private conversations and were granted anonymity.

Today, Americans will hear from Marie Yovanovitch, the career foreign service officer whom Trump recalled as the US ambassador to Ukraine after what one State Department official has called a “campaign of lies” against her by the president’s personal lawyer, Rudy Giuliani.

At its core, the impeachment inquiry concerns Trump’s July phone call with Zelenskiy that first came to attention when an anonymous government whistleblower filed a complaint.

In the phone conversation, Trump asked for a “favour”, according to an account provided by the White House. He wanted an investigation of Democrats and 2020 rival Joe Biden. Later it was revealed that at the time the administration was withholding military aid from Ukraine.

“The bribe is to grant or withhold military assistance in return for a public statement of a fake investigation into the elections,” Pelosi said. “That’s bribery.”

It’s also spelled out in the Constitution as one of the possible grounds for impeachment -- “treason, bribery or other and high crimes and misdemeanors”.

During Day One of the

House hearings, career diplomats William Taylor and George Kent delivered somber testimony about recent months.

They testified how an ambassador was fired, the new Ukraine government was confused and they discovered an “irregular channel” — a shadow US foreign policy orchestrated

by Giuliani that raised alarms in diplomatic and national security circles.

It’s a dramatic, complicated story, and the Democrats’ challenge is to capture voter attention about the significance of Trump’s interactions with a distant country.

With a hostile Russia its border, Ukraine is a young democracy relying on the US as it reaches to the West.

Trump’s reelection effort raised more than $3m on the first day of public impeachment hearings, and campaign manager Brad Parscale announced it now hopes to raise $5m within a 24-hour span.

A spokesman for the national Republican Party, Rick Gorka, said there’s been a surge of volunteers and the response “we’re receiving from the field has been tremendous”.

Trump, who was set to headline a rally Thursday night in Louisiana, remained out of sight for most of the day and was monitoring a mass school shooting in California, according to aides.

Behind closed doors this week Pelosi reminded Democratic lawmakers of the importance of presenting a “common narrative” to the public as the proceedings push forward, according to a Democratic aide.

“We’re in Chapter One of a process,” said Rep. Raja Krishnamoorthi, D-Ill, a member of the Intelligence Committee conducting the inquiry. The challenge, he said, is educating Americans about what happened “and then explaining why it matters”.

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Friday, November 15, 2019, PAGE 7

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THE TRIBUNE

Sizing up the 2019 holiday shopping season for retailers NEW YORK Associated Press WITH two weeks until the official start of the holiday shopping season, the nation’s retailers are

gearing up for what should be another brutally competitive shopping period.

The good news? Many retail CEOs say the US consumer is financially healthy given the economy

Request For Proposals EXTERNAL AUDIT SERVICES YEARS ENDING 30 JUNE 2016, 2017, 2018, 2019 AND 2020 This request for proposal invites proposal from suitably qualified firms to conduct the annual audit of the financial statement of the Straw Market Authority for the years ending 30 June 2016, 2017, 2018, 2019, and 2020.

remains strong and the unemployment rate is near a 50-year low. But keeping up with shoppers’ behavior has been challenging for retailers, whether it’s the yearslong shift to shopping online or the more recent desire to rent or buy second-hand clothes and other items. Retailers also face increasing pressure from online leader Amazon, which has been raising the stakes in speedier shipping.

Here are some key trends and milestones to watch: THE FORECASTS The National Retail Federation, the nation’s largest retail trade group, forecasts that holiday sales will rise between 3.8% and 4.2% even as the ongoing USChina trade war creates some uncertainty around pricing and supplies. Sales growth at the top of that

range would double the disappointing 2.1% growth seen in November and December of 2018, which fell well short of the group’s prediction of 4.3 % and 4.8 %. Last year’s holiday sales were hurt by turmoil over President Donald Trump’s trade policy regarding China and a delay in data collection by nearly a month that NRF said made the data slightly less reliable. The group expects online and other non-store sales, which are included in the total, to increase between 11% and 14%, for the holiday 2019 period.

The NRF forecast, which considers economic indicators such as consumer credit, disposable personal income and monthly retail sales, excludes sales from autos, gas, and restaurants.

Other groups are more

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

Prospective firms may obtain and review the prior Audited Financial Statements of the Straw Market Authority prior to submitting their proposals.

The Public is hereby advised that I, CONRAD MONTELL BOWE of Moore Avenue situated in the Southern District of the Island of New Providence, Bahamas intend to change my name to CONRAD MONTELL NEYMOUR. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

Proposals are to be submitted in a sealed envelope on or before Friday 30 November 2019 to the following address:

NOTICE

PROPOSAL FOR AUDIT SERVICES Managing Director Straw Market Authority Woods Rodgers Wharf New Providence Bahamas

NOTICE is hereby given that STANLY FRANCOIS of Chippingham, 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 15th day of November, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

SHOPPERS browse Holiday Lane at Macy’s in New York. optimistic: Deloitte expects holiday retail sales to rise 4.5 % to 5%, and AlixPartners predicts growth of 4.4% to 5.3%.

WHAT MAKES THIS HOLIDAY SEASON DIFFERENT? For one, this holiday season is the shortest since 2013 and six days shorter than the 2018 season because Thanksgiving falls on Nov 28. Retailers say such a compressed season will put more pressure on them to make every day count. Walmart and others are trying to get into the minds of shoppers sooner, with earlier deals and advertising. This season is also different because more retailers like Walmart and Amazon are offering nextday delivery, raising the pressure for them to satisfy shoppers without any glitches. Amazon has said that more than ten million items now qualify for nextday delivery for its Prime members, who pay $119 a year.

KEY MILESTONES FOR DATA Analysts will be sifting through key data throughout the season. The first big milestone comes after the five-day Thanksgiving weekend, when the NRF releases the results of its survey that offers insights into shoppers’ intentions on that first big weekend of the holiday season. The weekend, which includes Cyber Monday, isn’t necessarily a good predictor of how the

whole season will go, but it can reveal some trends.

MasterCard SpendingPulse, which tracks all types of payment including cash and check, historically offers holiday sales insights and trends during key periods including right after the Thanksgiving weekend and after Christmas. Adobe Analytics offers online sales updates including for Cyber Monday — Dec 2 this year — and it typically does a recap of the holiday season in mid-January.

Shipping company FedEx might comment on the holiday season when it releases fiscal second-quarter earnings on Dec 17.

It won’t be known how overall November and December holiday sales fared until the government releases its December retail sales figures in mid-January.

The NRF extrapolates that data and comes out with the two-month holiday sales results. Meanwhile, retailers will be releasing fiscal fourth-quarter results in February — that will offer more colour on the holiday season including how much discounting affected profits.

WINNERS AND LOSERS Heading into the official start of the holiday season, big discounters like Target and Walmart and others that have consistently won over shoppers with their low prices and expedited shipping should be among the clear winners. Off-price discounters like TJ Maxx, which have fared well by offering customers a treasure hunt experience should also do well. Meanwhile, it’s a mixed bag regarding department stores. Macy’s is touting its interactive experience called Story in 36 stores, while Kohl’s is offering a slew of exclusive partnerships like the Elizabeth and James brand founded by Mary-Kate and Ashley Olsen.

But JC Penney’s is expected to struggle as it has yet to figure out a reinvention strategy that revives sales. And investors will be watching Sears, which continues to close stores. Many mall-based clothing chains like Gap are also expected to continue to flounder as they’ve had a hard time differentiating themselves from their rivals.

Given this climate, brands like Banana Republic and Urban Outfitters are launching for the first time rental subscription services.

Meanwhile, Macy’s and JC Penney’s have teamed up with online resale site ThredUP to carve out dedicated areas in select stores to sell used clothes. Investors will be watching to see how these initiatives fare.

THE TRIBUNE

Friday, November 15, 2019, PAGE 9

New Jersey seeks $640M from Uber for misclassifying workers TRENTON Associated Press NEW Jersey is seeking more than $640m from Uber in taxes and penalties, saying the ride-hailing company misclassified its drivers as independent contractors.

The decision is the latest setback for Uber and other companies in the so-called “gig economy” that rely heavily on contract labour to deliver the services at the heart of their popular apps.

Worker advocates say that job classification hurts the labourers and the states where they live, which miss out on tax revenues.

New Jersey’s labour department told Uber it, along with its subsidiary Rasier, owes $523m in overdue taxes form the last four years and is also facing fines and interest of $119m, according to letters from the department that were first reported yesterday by Bloomberg Law. Uber disputed the state’s findings. “We are challenging this preliminary but incorrect determination, because drivers are independent contractors in New Jersey and elsewhere,” the San Francisco-based company said in a statement.

The move was hailed as a victory by those pushing for better working conditions for Uber’s drivers. Many of Uber’s workers are parttime, but others work long hours and rely on ride-hailing as their sole source of income.

“I have clients who are Uber drivers that are sleeping in their cars because they cannot afford the basic necessities, they can’t afford a place to live,” said Shannon Liss-Riordan, partner at Lichten & Liss-Riordan, who has represented drivers in the employment classification cases. “That’s not acceptable.”

New Jersey has among the strictest tests for determining whether a worker qualifies as an independent contractor. To be considered an independent contractor requires meeting all three prongs of a test set up under state law, including that the services performed fall outside the employer’s usual course of business.

Worker classification is important because taxpayers foot the bill for unemployment or disability insurance when independent contractors file for benefits, said Robert Asaro-Angelo, New Jersey’s labor commissioner, in a statement. “This defiance of the law puts honest business owners at an unfair disadvantage,” he said.

The New Jersey Department of Labor and Workforce Development declined to discuss the case or say whether it is seeking similar restitution from

Lyft or other gig economy companies. Lyft, which is also based in San Francisco, declined to comment.

But Wall Street reacted, with stocks extending their downward spiral.

Uber’s shares closed yesterday at down 72 cents, or 2.7%, at $25.99. Lyft shed $1.38, or 3.2%, to $41.92.

Both stocks are 42% below their initial public offering prices from earlier this year.

The threat of classifying workers as employees is the single biggest worry among investors in companies such as Uber and Lyft, said Dan Ives, managing director at Wedbush Securities. Many thought the threat could materialise eventually but weren’t expecting it within months of the companies’ IPO. “It adds the black clouds over Uber, Lyft and the overall gig economy, as their business models were built on contractors,” Ives said. “It’s an absolute nightmare scenario that continues to plague the gig economy stocks.”

California, which represents Uber and Lyft’s largest source of revenue, passed a law requiring companies such as Uber and Lyft to classify drivers as employees instead of independent contractors, which would give them protections such as minimum wage, health benefits and the ability to unionise. That law is set to go into effect Jan 1, but Uber and Lyft have been pushing for a carve-out.

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Walmart offers holiday cheer as traditional peers struggle NEW YORK Associated Press WALMART is offering some holiday cheer heading into the crucial Christmas shopping season even as many of its traditional peers struggle.

The nation’s largest retailer raised its annual profit expectations yesterday after reporting strong

third-quarter results helped by its grocery business.

The results offer the latest evidence that Walmart’s efforts to expand online grocery services are widening the gap between itself and traditional rivals. At the same time, it’s holding its own against Amazon despite the online leader’s increasing dominance.

Walmart, based in

Bentonville, Arkansas, is also benefiting from overall healthy consumer spending and a strong economy.

Walmart is the first major retailer to report third-quarter results and underscores how retailers that offer low prices and convenient shopping options are holding strong with consumers.

Target, TJ Maxx’s parent and Best Buy are among

the winners expected to report solid results as well.

But many department store chains and mall-based clothing chains are still struggling to respond to shoppers’ increasing shift to online.

Walmart said that sales at stores opened at least a year rose 3.2%, marking the 21st straight quarter of gains. US online sales rose 41% helped by its expansion of grocery delivery service. Walmart now has more than 3,000 locations for grocery pickup and more than 1,400 locations that offer grocery delivery. This fall, it launched “Delivery Unlimited”, which costs $98 annually and $12.95 monthly for unlimited grocery delivery.

It also launched a delivery service in three cities, giving customers the option to let its own delivery person put purchases directly into the refrigerator when they’re not home.

Still, delivery wars are expected to be intensified this holiday season.

Walmart and Amazon are locked in an arms race to bring packages faster and faster to customers’ homes.

Amazon offers a similar in-home service in certain cities, dropping off packages inside homes, garages or trunks. But its service doesn’t deliver groceries.

And both will be fighting it out with a new offering — next-day delivery services.

Walmart has rolled out nextday delivery on its most popular items. Amazon has said that more than ten million items now qualify for next-day delivery for Prime members who pay $119 a year. But Walmart may have to reconsider its new unlimited grocery delivery service — late last month, Amazon dropped its $15 monthly fee for its Amazon Fresh service, which delivers raw

SHOPPERS look at televisions at a Walmart Supercenter in Houston. Walmart Inc reported earnings yesterday. meat, vegetables and other groceries to customers’ doorsteps. The service is only for its Prime members.

Walmart has a lot of work to do to better compete with Amazon. Its online US sales reached $15.7bn in the latest fiscal year. That’s still a fraction of Amazon’s online global merchandise empire, which reached $122.98bn last year. Walmart has even acknowledged that it needs to improve its general merchandise offerings online, which carries higher profit margins than food.

“Our strength is being driven by food, which is good but we need even more progress on Walmart. com with general merchandise,” said Doug McMillon, Walmart’s CEO in a transcript of a prerecorded call following the earnings results.

That acknowledgement comes as Walmart’s strategy of binge buying niche online brands has faltered.

Last month, Walmart sold ModCloth, an online native women’s clothing brand after buying it two years ago. During a media call yesterday, Marc Lore, head of Walmart’s US online division, said the company is moving away from acquisitions to building its own

brands, citing the success of Allwell, an online mattress brand aimed at affluent customers.

As a result of the continuing extra investments in online delivery, Walmart said that operating income declined 5.4% to $4.72bn during the fiscal third quarter.

Still, overall results were solid. It posted net income of $3.29bn, or $1.15 per share, for the fiscal third quarter. Per-share earnings were $1.16 when adjusted, easily topping Wall Street projections of $1.09, according to a survey by Zacks Investment Research.

Revenue rose to $127.99bn in the period.

Walmart Inc. said that it now expects adjusted earnings per share for the current fiscal year to increase “slightly”, including Flipkart, and to increase in the high single percentage range when excluding it. It had previously said its adjusted earnings per share would decrease slightly.

Last year, Walmart bought a 77% stake in Flipkart, India’s leading online retailer.

Shares were up more than 2%, or $2.53, to $123.58 in morning trading.

THE TRIBUNE

Friday, November 15, 2019, PAGE 15

S&P 500 ekes out record high after listless day of trading

By ALEX VEIGA Associated Press A DAY of listless trading on Wall Street ended yesterday with another record high for the S&P 500.

The benchmark index notched its third consecutive gain after spending most of the day wavering between small gains and losses. The Dow Jones Industrial Average and Nasdaq composite also budged little, capping the day with miniscule drops.

The market’s lethargic turn came on a day with little market-moving news.

Investors were still awaiting more details on the status of trade talks between the US and China.

Published reports have suggested this week that negotiations between the world’s two largest economies have hit some snags.

Beijing is pressing Washington to roll back tariffs as part of a potential deal that the nations are trying to hammer out.

While the market has been sensitive to the swings in the trade talks, the latest speculation did not put most investors in a selling mood.

“We’ve had headlines like this before and the market is doing a little bit better job of looking through them,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “Until something is announced, yay or nay, it probably doesn’t make much sense to trade on it, especially when President Trump himself has tweeted out that talks are going well.”

The S&P 500 rose 2.59 points, or 0.1%, to 3,096.63.

The Dow slipped 1.63 points, or less than 0.1%, to 27,781.96. The index had briefly been down around 100 points.

The Nasdaq fell 3.08 points, or less than 0.1%, to 8,479.02. The Russell 2000 index of smaller company stocks dropped 0.39 points, or less than 0.1%, to 1,588.79.

The broader market has been gaining ground for weeks on hopes that the US and China can make progress in their latest push for a deal. Investors have also been encouraged by

surprisingly good corporate earnings and data showing the economy is still growing solidly. And the Federal Reserve has helped, lowering interest rates three times this year. The central bank has signaled that it’s done lowering rates, for now, unless the US economy shows any major signs of trouble.

“We’ve been going up, and the path of least resistance is probably higher, but the question is what’s going to take us there?” Samana said. “The Fed’s on hold.

Earnings are out of the way, so probably the next thing the market will look to is this trade issue that’s still outstanding.”

Investors hope that Washington and Beijing can come to some sort of an agreement to avert new and potentially more damaging tariffs that are scheduled to take effect in the middle of next month. Those new tariffs would hit some popular consumer products, such as electronic devices, as well as everyday goods.

President Donald Trump has been dismissive about any change to tariffs while negotiations continue.

China did make a goodwill gesture of sorts yesterday when it moved to lift a four-year ban on US poultry products. The move sent shares in processed food companies higher. Tyson Foods rose 1.7%, Sanderson Farms gained 3.7% and Pilgrim’s Pride added 1.1%.

The U.S. is the world’s second largest poultry exporter, with global exports of poultry meat and products of $4.3bn last year. The US Department of Agriculture estimates that more than $1bn in poultry could be exported to China annually.

Consumer-focused stocks, including Target and Lowe’s, were the best performers yesterday, offsetting declines in technology and energy companies.

Technology stocks were the biggest losers. Cisco Systems fell 7.3% after giving investors a surprisingly weak revenue forecast.

Banks also moved broadly lower. The yield on the ten-year Treasury fell to 1.82% from 1.87% late on Wednesday. Lower bond yields hurt banks’ ability

to charge more lucrative interest rates on mortgages and other loans.

Retailers and other companies that rely on consumer spending held up best. Lowe’s rose 1.5% and Target added 2.3%.

Walmart, which had been solidly higher earlier after reporting strong thirdquarter results and raising its annual profit expectations, fell 0.3%.

Dillard’s jumped 14.2% after the department store operator surprised Wall Street with a fiscal thirdquarter profit and solid sales.

Industrial and communication services stocks also notched gains. Boeing rose 1.4% and Netflix climbed 2.3%.

Benchmark crude oil fell 35 cents to settle at $56.77 a barrel. Brent crude oil, the international standard, dropped nine cents to close at $62.28 a barrel. Wholesale gasoline fell two cents to $1.62 per gallon. Heating oil climbed one cent to

$1.92 per gallon. Natural gas rose five cents to $2.65 per 1,000 cubic feet.

Gold rose $10.10 to $1,471.80 per ounce, silver rose 11 cents to $17.01 per ounce and copper fell two cents to $2.62 per pound.

The dollar fell to 108.37 Japanese yen from 108.79 yen on Wednesday. The euro strengthened to $1.1022 from $1.1002.

European markets closed broadly lower.

To advertise in The Tribune, contact 502-2394

NOTICE RBVV Limited (Voluntary Liquidation) Notice is hereby given that, in accordance with Section 138 (4) of The International Business Companies Act 2000 the above-named Company is in dissolution, which commenced on the 9th, day of August 2019. The Liquidator is Kim Thompson of Nassau Bahamas.

Kim Thompson (Liquidator)

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

THURSDAY, 14 NOVEMBER 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,196.81 | CHG: -3.61 | %CHG: -0.16 | YTD: 87.36 | YTD%: 4.14 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.10 2.60 2.00 5.47 11.75 6.17 4.64 11.25 2.81 3.85 10.21 7.51 16.90 9.40 3.63 14.20

52WK LOW 3.52 20.91 4.90 4.46 1.01 0.22 2.00 9.30 6.15 3.95 6.75 2.35 1.76 7.51 6.10 12.10 6.41 3.01 13.01

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

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

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

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

52WK HI 2.27 4.31 2.07 194.86 158.57 1.65 1.82 1.74 1.21 8.01 9.60 6.83 11.39 12.30 10.68 10.00 8.69 11.79

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

LAST CLOSE 3.64 17.43 6.00 6.10 2.46 1.80 4.70 11.06 6.16 4.12 8.57 3.21 3.85 9.82 7.51 16.90 9.33 3.20 14.00

CLOSE 3.64 17.43 6.00 6.10 2.46 1.80 4.50 11.06 6.16 4.12 8.57 3.18 3.85 9.91 7.51 16.90 9.33 3.20 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 -0.20 0.00 0.00 0.00 0.00 -0.03 0.00 0.09 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00

CLOSE 100.00

CHANGE 0.00

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

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

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

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

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

VOLUME

1,000 15,400

500

VOLUME

NAV 2.27 4.30 2.07 193.72 158.42 1.65 1.82 1.74 1.19 8.23 10.10 6.85 11.24 12.28 10.74 9.92 8.68 11.38

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

DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 15.2 18.7 N/M 16.5 N/M N/M -10.3 15.3 13.7 22.4 61.2 31.2 8.2 15.3 10.3 20.7 9.9 15.8 22.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.67% 7.23% 0.00% 4.26% 0.00% 1.11% 0.00% 6.51% 3.57% 2.91% 0.00% 13.65% 1.56% 3.31% 3.20% 3.20% 2.14% 3.75% 4.36% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

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

YTD% 12 MTH% 2.77% 3.84% 1.38% 3.46% 2.03% 2.76% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 30-Sep-2019 30-Sep-2019 27-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

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

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

PAGE 16, Friday, November 15, 2019

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THE TRIBUNE

Powell urges Congress to tackle growing budget deficit WASHINGTON Associated Press FEDERAL Reserve Chairman Jerome Powell yesterday urged Congress to tackle the growing budget deficit but also underscored the current health of the nation’s economy.

Powell’s testimony before the House Budget Committee came a day after he told Congress’ Joint Economic Committee that the Fed was likely to keep rates unchanged in the coming months, unless there were a “material” shift in the economic outlook.

Powell is one of the few leading public figures urging Congress to reduce the federal government’s annual deficit, which is nearing $1tn.

A large deficit will make it harder for Congress to cut taxes or boost spending when the next recession hits, Powell noted. That is a concern because, with the Fed’s benchmark interest rate already low, the Fed also has a limited ability to respond to downturns.

“It’s very important that Congress be able to support the economy because we won’t have as much room to cut,” he said.

Powell’s remarks came two weeks after the Fed cut its short-term rate to a range of just 1.5% to 1.75%, its third cut this year. The Fed took those steps to offset slowing global growth and the drag created by the USChina trade war. Both have caused businesses to cut back on investment spending and have driven down factory output. Historically, the Fed has cut its rate by about five percentage points in recessions.

Still, Powell also emphasized his view that the economy is likely to keep

FEDERAL Reserve Board Chair Jerome Powell testifies to the House Budget Committee yesterday on Capitol Hill in Washington.

Photo: Jacquelyn Martin/AP growing, with little sign of a bubble in stocks or other assets that could later burst.

“There is no reason to believe that the probability of a recession is elevated at this time,” Powell said.

“We don’t see the warning signs that appeared in other cycles, yet.” The downturn in manufacturing is being offset by strong consumer spending, he added.

Some Democratic members of the committee defended Powell from attacks leveled by President Donald Trump, who criticised the Fed on Tuesday in a speech for not cutting rates further. Trump has also called Fed officials “boneheads” and questioned whether Powell or China’s President Xi Jinping is a bigger enemy.

“The president’s repeated attacks on this institution are unacceptable and dangerous,” Rep John Yarmouth, Democrat from Kentucky and Chairman of the House Budget Committee, said.

Rep Dan Kildee, a Democrat from Michigan, said

Trump’s attacks reflected a “deranged view”. Previous presidents have publicly acknowledged the Fed’s independence, but many have pressured Fed officials privately.

Under questioning about the budget deficit, Powell acknowledged that the federal government still had some room to boost the economy through tax cuts or more spending, should a downturn arrive.

He also said that US national debt was unlikely to create a financial crisis for decades. The United States has advantages, he said, such as a productive, growing economy and the fact that the dollar is the world’s reserve currency.

“The day of reckoning could be quite far off,” he added. But as long as the debt is growing faster than the US economy, he said, it means that future generations may have to spend more on interest than on productive investments such as infrastructure or education.