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YOUR MONEY

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conten ts YOUR MONEY • CONTENTS

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Editor’s Message

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Your Money in 60 Seconds

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Gustav leaves $10b repair bill

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Jamaica Producers’ banana export business ‘blown’ away

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The Born Entrepreneur

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The Links

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Message from the Editor

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take great pleasure in using this opportunity to thank you for taking time out read through our premier issue of Your Money eZine, Jamaica’s first business and financial electronic magazine.

This eZine is for sophisticated individuals like yourself who take pride in being informed, and also use the information as an advantage to seize opportunities and garner the necessary tools for success in life. The term that you will get familiar with when reading our issues is eZine – an electronically produced magazine. Your Money is product #1, and it is an eZine that is committed to providing you with a wide variety of business and financial news. The Internet Telecommunications Union (ITU) in the United Kingdom has recently conducted a research, and has announced that 55% of Jamaicans are using the internet; that amounts to 1.5 million Jamaicans who are accessing the internet. This eZine recognizes your needs for constant e-Products that are Jamaican based and Your Money eZine is nothing short of that.

Credits Publisher eZines Limited Managing Director Tyrone Wilson Your Money Reporters Wayne Thorpe Andre Black Alyssa Campbell-Tucker Cherryl Hanson Simpson Design and Layout Omar Phinn Subscription

Your Money is a weekly product that has articles from some of the best reporters Jamaica has to offer. In each issue you will find investment news, corporate news, financial updates on stocks, bonds and foreign exchange, personal finance and more.

subscription@yourmoneyezine.com

Continue to be intrigued by our product and be interactive by sending your comments to editor@yourmoneyezine.com

Your Money is a Product of eZines Limited, and is distributed weekly via e-mail. To subscribe FREE log on to www.yourmoneyezine.com today or

Editorial editor@yourmoneyezine.com

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YOUR MONEY • EDITOR’S MESSAGE


Your Money in

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seconds CARICOM receive €92 500 to teach students about the CSME experience His Excellency Edwin Carrington, Secretary-General of the Caribbean Community (CARICOM), officially launched a project entitled ‘Students Engaging the CSME through Field Promotions’ during a press conference in Barbados on Thursday 11 September 2008. Sixty young people selected from colleges and universities in three Caribbean Community (CARICOM) Member States will be the initial beneficiaries of the project and will be travelling to a fellow CARICOM Member State where they will learn more about the country and opportunities within the CARICOM Single Market and Economy (CSME).

Bank of America attains Merrill Lynch & Co. Bank of America Corporation today announced it has agreed to acquire Merrill Lynch & Co., Inc. in a $50 billion all-stock transaction that creates a company unrivalled in its breadth of financial services and global reach. “Acquiring one of the premier wealth management, capital markets, and advisory companies is a great opportunity for our shareholders,” Bank of America Chairman and Chief Executive Officer Ken Lewis said.

Jamaica Bankers Association honors Bill Clark Scotiabank Jamaica President, Bill Clark who is getting ready to retire this October was honoured by the Jamaica Bankers Association (JBA) on Friday September 12, 2008 for his invaluable contribution to the banking sector of Jamaica. Clarke acknowledged that there were trying times in his career as a banker, but the entire experience was great and he enjoyed the competitiveness of the industry. There has been no official announcement as to who will replace Bill Clarke as President of Scoita Bank Jamaica.

Lehman Brothers Holdings Inc. Filed Chapter 11 NEW YORK, September 15, 2008 – Lehman Brothers Holdings Inc. (“LBHI”) stated that it has filed a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York. None of the broker-dealer subsidiaries or other subsidiaries of LBHI was included in the Chapter 11 filing and all of the U.S. registered broker-dealers will continue to operate.

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YOUR MONEY • YOUR MONEY IN 60 SECONDS

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Gustav leaves $10b Repair Bill Alyssa Campbell-Tucker

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ropical Storm Gustav, which passed over the island recently, has left Jamaica with an estimated J$8-J$10 billion dollar repair bill. The bill is an estimate for road and bridge repairs and does not include any costs the government might incur giving assistance to individuals who sustained damages during the storm. It will cost the government J$2 billion to replace the Georgia Bridge in St. Mary and the Hope River Bridge (more commonly called the Harbour View Bridge). The latter’s collapse led to the parish of St. Thomas being completely cut off from the island’s capital and next door neighbour, Kingston…unless you decided to brave the murky waters on foot. A Bailey bridge (a temporary structure) has been constructed to facilitate some traffic, but this has also cost the government more money as more bailey bridges had to be ordered for those in stock were insufficient.

It will cost the government $J2Billion to replace the Georgia Bridge in St. Mary and the Hope River Bridge (more commonly called the Harbour View Bridge).

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category one hurricane when it hit the island. Repairs to gullies and drain cleaning are also estimated to cost a huge sum, as the Minister noted in a September 2nd Jamaica Observer article that Minister Andrew Holness had indicated that he needed J$30 million and this was just for two gullies. The Bog Walk Gorge was also severely damaged and estimates are still being done to determine its repair cost. Ironically, the bridge which would appear to be more fragile than the roadway itself was not as severely damaged. Sections of the roadway however, are now virtually non-existent as the pavement crumbled under the weight of the rushing waters, to reveal hidden water mains. The gorge, which links Kingston to the north coast, has been a hot spot for flooding for years and this most recent episode has led to more calls for the abandonment of the gorge route. Arguments in support of this view contend that it is way too expensive to keep repairing the roadway after the mighty Rio Cobre River overflows her banks. It can also become a death trap for motorists who are unfortunate enough to be traversing the gorge while the river is in spate; just last year the Jamaica Defense Force (JDF) had to rescue some fifty such motorists. The river’s raging has been known to rise above 10 feet, however there is a marker in the gorge that displays the water level has once risen as high as 25 feet over the bridge back in 1933.

Cabinet is reportedly now mulling over a variety of sources where funds can be obtained. However, Minister of Transport, Mike Henry was very skeptical as to the likelihood of the island getting an international loan, due to the fact that Gustav was not classified as even a 5

YOUR MONEY • GUSTAV LEAVE $10b REPAIR BILL

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Jamaica Producers’

banana export business

‘Blown’ Away Andre Black

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amaica Producers Group Limited (JP), having only recently resumed its banana export production after Hurricane Dean devastated the industry last year, has once again seen a wrench thrown in that segment of its operation – this time by Tropical storm Gustav. Gustav passed over the island two weeks ago, ravaging the island’s banana sector. While assessments are still ongoing, damages are expected to be well into hundreds of millions of dollars, which will be heavily absorbed by JP, which controls over 80 per cent of the local market.

“We have not yet assessed the implications of the damages caused by Gustav as yet,” said JP financial controller, Paul Samuels, to Your Money. “When we do, we will put a statement out.”

and sale of banana chips, recorded a loss of $136.9 million, significantly more than the $15.7 million it lost last year. Revenues of $538.2 million over the period under review represented a 55 per cent decline. While JP, after a string of active hurricane seasons, has spread its operations regionally to minimize risk (The firm has operating plants in Dominican Republic and Honduras), much thought will be given to assess the future viability of the business and whether it is worthwhile to even continue banana export production. Not only has the local industry been ravaged by adverse weather conditions and diseases that has trimmed its output significantly over the last three decades to 30,000 tonnes in 2007, but the loss of preferential market access to Europe has added to the crisis as well. Under a European domestic market reform, the EU is gradually cutting the prices that it pays for the commodity from Caricom nations as it moves towards a more free trade environment. The preferential agreement that governed Caricom-EU trade for over 30 years was halted after large-scale South American farmers, who enjoy significant economies of scale to the Caribbean, cried foul.

Indeed, the damages will undoubtedly erode the bottom line of JP’s Banana Division, which is already in the red. For the six months ended June 14, 2008, the segment which is comprised of banana production and sales in Jamaica and Honduras, plus the manufacturing 6

YOUR MONEY • BANANA EXPORT BUSINESS

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The Born Entrepreneur Cherryl Hanson Simpson

“The entrepreneur is our visionary, the creator in each of us. We’re born with that quality and it defines our lives as we respond to what we see, hear, feel, and experience.”-Michael Gerber Are entrepreneurs born or bred? Are they gifted with fearless minds which permit them to take on certain financial risk to seek uncertain financial rewards? Or do their hearts beat with a fervent passion for creating something of their own? Could there possibly even be a special gene that differentiates them from the passive nine-to-fiver? In his book, Instinct: Tapping Your Entrepreneurial DNA to Achieve Your Business Goals, former cell biologist Thomas Harrison argues that genetics plays a large part in business success. Through scientific studies he demonstrates that entrepreneurial traits are hereditary, but he also shows that you can develop a successful business mentality by using specific techniques. There are many cases where the entrepreneurial spirit seems to be genetically linked. From mega-rich moguls like Donald Trump and Butch Stewart, to neighbourhood Chinese grocery store owners, we see where business success can be transferred through the generations. But is it really genetics at work, or are they just very skilled at teaching their children the attitudes and behaviours necessary to become great entrepreneurs? The case for entrepreneurial DNA may be strengthened when we observe self-made business success stories such as Oprah Winfrey. How did a black female, born in rural Mississippi poverty, overcome childhood traumas and setbacks to become the first black woman billionaire and according to CNN, “arguably the world’s most powerful woman?” Could it be that Oprah was born with a genetic predisposition for making money? 7

YOUR MONEY • THE BORN ENTREPRENEUR

I’m not exactly sure how I got my entrepreneurial spirit. My mother and father worked all their lives in the government service and never had the desire to earn money any other way, so I definitely wasn’t influenced by them. In fact, as many well-thinking parents do, they encouraged me to study and work hard to get a good job. Not exactly the best recipe for nurturing an entrepreneur! I have no inspiring stories of using my business skills to wheel and deal through my early years of school. The dormant entrepreneur in me first revealed itself while I was at university, when my natural ability to make things that people wanted led me into business by default. Leather jewelry designs created for my personal use became a hit with my friends, and instinctively I began sourcing raw material and working all night to fashion pieces for my new-found customer base. The thrill of getting paid for something I created has stayed with me throughout the years. Although I juggled between self-employment and a standard pay cheque for over 15 years, the desire to be my own boss was always predominant. I’ve used those years to learn more about what it takes to become successful in business. Some lessons have been gained the hard way- from trial and error and hits and misses. Valuable insights have also come from observing other people’s business achievements and failures. What I have discovered is that whether you have genes that give you an entrepreneurial head start, or you have studied all the book knowledge about business success, there are some non-negotiable attributes that you must have in order to play and win at this game. Determination, enthusiasm, perseverance, courage, vision, and a never-say-die attitude are essential to help you overcome the obstacles and keep going to the finish line. So, are you a born entrepreneur? Take the personality test at Forbes.com: http://www.forbes.com/2005/11/15/ entrepreneur-personality-quiz_cx_bn_1116quiz.html and find out! For the record- my test revealed “What are you waiting for? Start raising capital!” Cherryl is a financial columnist, consultant and coach. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Send questions and comments to info@financiallyfreenetwork.com.

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Young and Wealthy - Achieving that Status

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Your Money Online

Some yearn for it, others crave it, and some just have it. Wealth is one of the most desired, most highly sought-after statuses in life, and though the outlook varies with lifestyle and personal aspirations, almost everyone hopes for it. Young professionals aspire to be wealthy and will do almost anything possible to gain this status. In today’s society wealth is almost a must; so the question therefore is: How does a young professional gain wealth? Read More

Commonwealth to discuss fuel and food prices in St. Lucia

Commonwealth Finance Ministers will discuss the implications of rising food and fuel prices on their economies at their Annual Meeting,which this year will be held in Castries, Saint Lucia, from October 6th – 8th, 2008. The Meeting will bring together Ministers, senior finance officials and delegates from the 53 member countries. It traditionally takes place just before Annual Meetings of the International Monetary Fund and World Bank in Washington, allowing Commonwealth Ministers to take joint concerns and positions into those meetings. Read More

Microsoft and Nikon Enter Into Patent Cross-Licensing Agreement

REDMOND, Wash. and TOKYO, Aug. 27 / PRNewswire-FirstCall/ -- Microsoft Corp. and Nikon Corp. have signed a patent cross-licensing agreement to further the development of each company’s current and future product lines. The agreement covers digital cameras made by Nikon as well as a broad range of other consumer products each company manufactures and sells. Read More

J.P. Morgan Prepaid Debit Cards Help Brooklyn, Chicago Buy Back 7,500 Guns

NEW YORK, August 27, 2008 — Brooklyn and Chicago recently used J.P. Morgan prepaid debit cards in successful campaigns to take firearms off the streets. The gun buy back programs were sponsored by local law enforcement officials who offered citizens prepaid debit cards for working guns, no questions asked. More than 7,500 firearms were collected at community churches and other turn-in sites in the two cities. Read More

Jamaica to reap financial gains of Sport Tourism If there was any doubt, then the myths have now been dispelled and it is official. Jamaica is indeed the sprint factory of the world! Our local athletes took centre stage in Beijing, China recently and stunned the world with dazzling Olympic and world record performances. The stage is now set, for significant benefits to be derived from the untapped industry known as Sports Tourism. Read More

Manning Rallies For Unification Prime Minister of Trinidad and Tobago, Patrick Manning, made a pit stop in Jamaica recently to hold discussions and seek support on a proposed political and economic unification between the twin island and the three Eastern Caribbean states of St. Vincent and the Grenadines, Grenada and St. Lucia. Manning is on what some Trinidadian newspapers described as a ‘whirlwind tour’ with stops in five countries. Read More

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