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THURSDAY, JANUARY 3, 2019
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‘Shocked’ if no fight over tax breaks end By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A TOP QC would be “very surprised” if the premature end to foreign investors’ preferential tax breaks is not challenged in the Bahamian courts within the next three years. Brian Moree QC, senior partner at McKinney, Bancroft & Hughes, told Tribune Business that the elimination of such preferences was likely to prove “more challenging” than the European Union’s (EU) other demand for
• Three-year transition ‘clearly’ not enough • Ring fencing ‘more difficult’ than substance • QC: EU will have to respect adverse ruling
BRIAN MOREE QC
Cruise line bid slams port rivals By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Nassau port bid allied with the cruise lines yesterday slammed its rivals for offering “unnecessary” extras that will undermine Prince George Wharf’s “long-term viability”. The Port of Nassau Partnership, the alliance between four cruise lines and the Bahamian investor group formerly known as Cultural Village (Bahamas), did not explain how
or why the offers from Global Ports Holding and Nassau Port Partners would have this effect. However, besides portraying their competitors’ bids as extravagant and going far beyond the Government’s requirements, the partnership’s statement also targeted the berth expansion plans submitted by one of their rivals - believed to be Global Ports Holding. Quoting Giora Israel, Carnival’s senior vicepresident of global port
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Activists to focus on GB Power ‘dilemma’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ADVOCATES for an end to Grand Bahama Power Company’s monopoly yesterday said they plan to “intensify” public focus on what they described as its regulatory “dilemma”. Pastor Eddie Victor, president of the Coalition of Concerned Citizens (CCC) group, told Tribune Business that the utility is fighting oversight by the Utilities Regulation and Competition Authority
(URCA) while at the same time seeking renewal of its East and West End electricity supply agreements. Both 25-year deals expired in summer 2018 and, while their language could be interpreted as giving GB Power a “right of first refusal” to obtain their renewal, Pastor Victor said recent electricity regulation reforms had created new problems for the company in achieving that goal. While it might be protected from URCA in
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Bahamian-domiciled corporate vehicles to have “economic substance”. Agreeing that existing investors had a legitimate expectation that they would enjoy tax breaks, such as the 20-year stamp duty exemption provided to International Business Companies (IBCs), for their full term, Mr Moree conceded that the three-year transition
period agreed with the EU was “clearly” not long enough. As a result, the early end to such preferences - which must be eliminated by 2021 - was likely to spark legal action by aggrieved investors on the basis that their legitimate entitlements and rights have been breached.
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DPM: ‘Serious concerns’ over Dutch blacklist By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas “will have some serious concerns” if its inclusion on a Dutch “blacklist” means European Union (EU) countries are going further than the bloc’s own anti-tax evasion offensive. KP Turnquest, deputy prime minister, yesterday told Tribune Business that the Government had already mobilised its diplomatic contacts in a bid to discover the rationale for the Netherlands “unusual” action.
KP TURNQUEST He added that its decision to include The Bahamas on a list of 21 “low-tax jurisdictions”, which were singled out on the basis that they have no or low corporate income tax rates below nine percent, was especially
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THE TRIBUNE
TECHNOLOGY DRIVES DESIGN’S EVOLUTION W
HAT will graphic designs look like years from now? I believe that graphic design will be much more immersive as a result of the passage of time. And perhaps this shift will be accompanied by more niche professional experts, instead of generalist designers. Technology is playing an ever-growing role in the way we communicate, and has also increased the designer’s reliance on computer-aided design, pushing it away from traditional tools and into a more virtual world. Gone are the days when graphic design was solely focused on the obvious elements of a product, such as its packaging and marketing materials. Technology has enabled brands to gain more exposure online, and permitted businesses to better interact with their clients and consumers, while also providing the ability to review and analyse real-time data that measures what sources are driving more traffic. It is no secret that graphic design is crucial to all businesses, especially those in the digital world, and it is evident that print’s usefulness as a medium of expression is declining. Paper will be obsolete, with every design being digital with a website feel. However, as the graphic design industry evolves, vintage flairs that existed a long time ago are making their way back on the scene. This style is seen more and more, mainly in logos and sometimes websites, and is becoming more popular. I can only look on in awe and recognise how computers and the Internet have changed so many aspects of life, and the digital revolution’s impact on how we communicate, work and even socialise. Graphic design is no exception to this change, as technology is playing a key role in digital work in many fields. Moreover, portfolio
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The Art of Graphix BY DEIDRE M BASTIAN
design, presentations, signage, logos, websites, animations and even architectural production have all travelled far since the dawn of the digital revolution. We can analyse digitally the type of content and
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graphics that are getting more media impressions, more likes, more saves and, ultimately, are more appealing and adapting to an audience. Likewise with the Internet, which has become the major source of marketing and exposure. Companies have invested so much in content creation for customer communication, analytics and real-time feedback from consumers. Content marketing, and the evolution of graphic design for digital marketing, are continuing to rise. One industry experiencing the powerful impact of this growth is the hotel industry. It is the amalgamation of creativity, technology and the right graphic and web design tools that make some businesses in the hospitality industry stand out from the rest. For example, hotel websites are no longer solely
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viewed for contacts and reservations, but also serve as a portfolio of the property’s interior design and amenities. Hospitality giants are constantly testing on its website home page. Their brands can effectively generate engagement by presenting eye-catching graphics in online media to gain a competitive edge over others. And just when we thought technology had reached its peak, we were made aware that more was going to unfold. The visual power of graphic design has inspired companies to develop an effective communications strategy that incorporates modern content marketing campaigns to expand their exposure to its target market. With the improvement of technology, graphic designers are no longer glued to their workstations. With software readily available on laptops
and mobile phones through apps, it has made it much easier to work anywhere in the world - to outsource talent without having to hire in-house. Designers can work anywhere and still be connected with their offices. This led to the rise of freelance designers now working in their respective creative spaces anywhere in the world, which is much more cost-efficient than hiring in-house. By the same token, technology and creativity may never take on a steady form. It is inevitable that graphic design will change as we move forward. The rise of content marketing and good design is going to continue to make an impact on businesses and their bottom line revenue. As a final point, graphic design will always be a necessary tool for artistic, economic, marketing and
architectural expression. As programmes, software and technology are released, graphic designers will create new trends of the future and increase visual content more than traditional elements. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game! NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre Bastian is a professionally-trained graphic designer/ marketing co-ordinator with qualifications of M.Sc., B.Sc., A.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.
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Thursday, January 3, 2019, PAGE 3
Retail group: Xmas sales ‘up slightly’ against 2017
GAVIN WATCHORN By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net A BISX-LISTED retail group yesterday said samestore sales for most of its stores were “up slightly” over the Christmas seasom compared to the same period in 2017. Gavin Watchorn, AML Foods’ chief executive, told Trib-
une Business: “I would say that things were OK this year. All things considered, it was OK. “We were actually up slightly this Christmas period. Most of our locations were. Given everything that’s been going on, I’d say we were OK.” AML Foods, the BISXlisted food retail and franchise group, operates the Solomon’s and Cost
it. During Christmas you could see sales go up 50 per cent because consumers are doing a lot of their shopping in preparation for the holidays. “You see that big rush, and then the next week you can go down 50 per cent. I’m still trying to get some final numbers to see how things really shaped up for us this past Christmas.”
Cruise line bid slams port rivals FROM PAGE ONE and destination development, the Partnership argued that its rival’s plans could potentially prevent larger cruise ships from coming to Nassau because its expanded berths would interfere with the vessel turning basin. It also alleged that its competitor’s additional berths would be outside the area specified by the Government in the Nassau cruise port Request for Proposal (RFP), although no evidence was supplied to back-up this assertion. Global Ports Holding did not respond to the claims before press time last night, but Colin Murphy,
NASSAU Cruise Port. its business development head for the Americas, previously told Tribune Business that it aimed to add two new berths at Prince George Wharf to accommodate both the increasing number and size of cruise ships, giving the port the ability to handle up to an extra 12,000 passengers daily.
Kenwood Kerr, principal of Providence Advisors, the Bahamian investment house heading the Nassau Port Partners bid, responded simply: “The adjudicators of that will be the government.” While Dionisio D’Aguilar, minister of tourism, has pledged that the government will “maintain
By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net TAXI drivers yesterday doubled down on their strike threat, with a union leader warning: “It’s going into full effect.” Doubling down on earlier statements to Tribune Business, Wesley Ferguson, the Bahamas Taxi Cab Union’s (BTU) president, said drivers would begin to “systematically” withdraw their services from locations such as the airport, Baha Mar, the Prince George Wharf and Paradise Island as early as next Thursday. Mr Ferguson told this newspaper: “It’s going into full effect. I think we are going to start withdrawing services as early as next week Thursday or Friday. We’re going to systematically start shutting down our operations.
RUPERT ROBERTS Right brands as well as the Domino’s Pizza franchise. Rupert Roberts, Super Value’s president, told Tribune Business that he was still awaiting final numbers on the supermarket chain’s Christmas performance. He said: “Christmas is really no different than what we would see during other peak periods when you really look at
Taxi drivers: Strike to take ‘full effect’
radio silence” on its deliberations now that all bids are in, the three bidders are doing anything but. The Port of Nassau Partnership statement indicates that, if anything, the competition between them is intensifying with efforts going to far as to badmouth and discredit rivals. “The Port of Nassau Partnership is confident that it can develop an efficient port with $125m, and fears that competing bids - of $250m and $225m – which are partly unnecessary and cover areas and issues not addressed in the RFP, will likely negatively impact the long-term viability of the port,” it said.
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“We might start at the airport, Baha Mar, then the dock and Paradise Island. Between Monday and Tuesday of next week we will look to have a general meeting with all taxi drivers in Nassau.” Tribune Business was unable to reach Renward Wells, minister of transport and local government, for comment up to press time yesterday. Taxi drivers last year urged the Government to end the two-decade old moratorium on new plates during a Town Hall meeting with Mr Wells. They cited its removal as a key issue, with numerous complaints being raised over the leasing of taxi plates. Another concern highlighted by Mr Ferguson is the issue of unlicensed operators, which also featured in a recent travel advisory issued by the Canadian government.
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‘Shocked’ if no fight over tax breaks end FROM PAGE ONE Should the Bahamian judicial system rule in favour of such legal challenges, Mr Moree argued that the EU - as well as the government - would have to respect this even though it would likely extend the life of such preferential benefits. “This whole elimination of tax preferences is a major challenge. I think that may well prove to be more challenging than the economic substance legislation; we’ll have to wait and see,” Mr
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Moree told Tribune Business. “I think there’s a very good prospect of that being challenged in the courts, especially when you end up with tax concessions that give rise to vested interests. I would be surprised if, at some point in the next three years, this is not challenged in the courts. “This is going to be an area where we have to see how it works out. The challenge may not come until we get to the end of that period. But I’d be surprised if the three-year period expires without a major challenge
hiring a
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in the courts.” The need to comply with the European Union’s (EU) anti-tax evasion/avoidance drive means that The Bahamas has to eliminate all “ring fencing”, or preferential tax regimes for non-resident entities and foreign investors that are not offered to their Bahamian counterparts operating in the domestic economy. Despite the government’s efforts to secure a longer transition period, the Removal of Preferential Exemptions Bill 2018 only allows existing IBCs, Investment Condominiums (ICONs) and Exempted Limited Partnerships (ELPs) to maintain their special investment incentives - such as the stamp duty break and flat $300 business licence fee for a further three years until 2021. This effectively means that all IBCs incorporated from 2002 onwards will not enjoy the 20-year stamp duty waiver their beneficial owners will have anticipated, creating the grounds for legal action that have been flagged up by Mr Moree and others. KP Turnquest, deputy prime minister, conceded when introducing the Removal of Preferential Exemptions Bill 2018 for parliamentary debate that the early end to these incentives would create issues that The Bahamas needed to “carefully negotiate” to avoid sparking mass litigation. He previously told Tribune Business that the government initially sought a 20-year transition period so that existing preferences could run their full course but, not surprisingly, this proved a non-starter with the EU. The 28-nation bloc instead
demanded that all such incentives be eliminated within six months of 2018’s year-end, with the government moderating its stance to seek a five-year transition - a timeframe many in the Bahamian financial services industry believed could be acceptable. The EU again refused, though, and eventually settled with The Bahamas on a three-year changeover that takes effect from end-2021. Asked whether the threeyear transition was sufficient for this nation’s investor clients, Mr Moree replied: “I think the answer is clearly no. We would have preferred longer. The government was trying to secure at least five years, but what they ended up with was the best deal they could do. “We didn’t end up with what was needed and necessary. We ended up with the best deal the government could get.” And the EU, while acknowledging the likelihood that its demands could ignite a litigation frenzy against the government, has adopted the attitude that this is The Bahamas’ problem and not its own. Mr Moree, though, said the EU - just as much as the government - would have to accept the outcome of any Bahamian court verdict over the premature end to preferential tax breaks even if it went against its desires. “If that happens the government will have to comply with whatever decision the court makes,” he told Tribune Business. “If the court says no, you can’t do it, one would expect the EU to respect that position as you cannot expect to have a democratic country ignore the rulings of the court. We’ll
have to wait and see how that Tribune Business. “What’s works out.” important is that we mainThe elimination of prefer- tain a level playing field in ential tax breaks will impact the international community most, if not all, corporate across the board so countries and private wealth managecan’t arbitrage their regime ment business domiciled in against others.” The Bahamas since Mr Moree many employ added that IBCs, ICONs The EU - just it would and ELPs as much as the in their be “prostructures. foundly government - would As a disaphave to accept the result, it pointis likely outcome of any Bahamian ing”, to have and “very court verdict over the a greater difficult”, premature end to effect that for the EU the EU’s tax breaks. to “blacklist” other key The Bahamas demand - that all entities which are when its finance part of corporate networks, ministers meet next Friday especially those controlled given this nation’s efforts to by multinational entities, comply with its demands. conduct real, substantive “I think in the current cirbusiness in The Bahamas cumstances it will be very or otherwise their revenues and profits be reported - via difficult, and profoundly the Ministry of Finance - to disappointing, if there were home country tax authorities. any further threats to blackGiven that The Bahamas list The Bahamas because has traditionally focused we certainly seem to be fully on private wealth manage- compliant with the requirement as its core business, as ments and we were on time opposed to the corporate in delivering the new legislatype, it is likely to have fewer tion,” he said. entities impacted by the EU’s “It would seem that the “substance” as opposed to government has delivered “end ring fencing” demands. John Riva, head of tax for on its commitments to the KPMG’s “Islands Group”, OECD and EU with regard said as much at a Bahamas to the legislation, which it seminar early last year. And agreed to pass before the end Mr Moree, in his recent inter- of the year. It was an aggresview with Tribune Business, sive legislative agenda, and said he “intuitively tends to a very significant and imporagree with that” despite the tant one which involved absence of data to back such fairly complex provisions, assertions. “The impact depends on particularly with regard to how many companies are economic substance and caught by this legislation,” physical presence and the the senior McKinney, Ban- BEPS legislation for the croft & Hughes partner told OECD.”
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Thursday, January 3, 2019, PAGE 5
ACTIVISTS TO FOCUS ON GB POWER ‘DILEMMA’ FROM PAGE ONE Freeport by the Hawksbill Creek Agreement, Pastor Victor pointed out that both East and West End lie outside the Port area and that treaty’s reach. He argued that the Electricity Act 2015 mandates that all electricity suppliers be licensed by URCA, meaning that GB Power would - in the event of its supply deals being renewed - need to obtain approval from the very regulator it has rejected. Speaking after Carl Bethel QC, the attorney general, confirmed to Tribune Business that his ministry was “reviewing� GB Power’s expired agreements, Pastor Victor told Tribune Business: “I think we’re hopeful that they’re going to have to maker a decision based on the interests of the people. “When you look at those agreements they were written 25 years ago but don’t address changes in the law since then. There were changes in the law in 2015 with the Electricity Act and, if you look at it, it says no one can get approval to supply electricity to the public without being licensed by URCA. “It means you must be regulated by URCA. On the one hand GB Power is saying they want to renew these agreements, but they’ve put in a challenge in the courts. You have a dilemma there and we’re going to put more emphasis on that. You say you want to continue supplying, yet you’ve filed a Judicial Review.� GB Power’s Supreme Court action, filed in 2016, is founded on the notion that it is regulated under Freeport’s founding treaty, not the Electricity Act 2015,
meaning that the Grand Bahama Port Authority (GBPA) - not URCA - is responsible for its supervision and oversight. The action remains live, with no resolution to-date despite talks between GB Power, URCA and their respective attorneys. Several observers have suggested to Tribune Business that it could be used as a bargaining chip, with GB Power offering to end it and accept URCA’s oversight in return for a renewal of its East and West End deals. West End, in particular, could be lucrative if the $2.8bn revival of the former Ginn project takes off, but any GB Power acceptance of URCA’s oversight could open up another proverbial “can of worms� where the GBPA, Hawksbill Creek Agreement and other utilities are concerned. For GB Power is not the first to challenge national regulatory oversight. Cable Bahamas’ Freeport subsidiary, Cable Freeport, has also fought URCA and its Public Utilities Commission (PUC) predecessor over its ability to regulate it within the Port area. A concession by GB Power could thus expose other Freeportbased utilities to oversight by URCA rather than the GBPA. Pastor Victor, though, expressed doubts that GB Power would ever submit willingly to URCA regulation even if it cost it the renewal of the East and West End agreements. “I don’t believe GB Power will follow through with letting URCA regulate them,� he told Tribune Business. “That’s why I believe in anything we can do in terms of bringing more attention to it, bringing to the public the need for URCA to regulate - not just in West End and east Grand Bahama but
on any renewal. GB Power, then Freeport Power, agreed to expand beyond the port area in 1993 to meet the thenIngraham administration’s desire for the electrification of East and West End. Tribune Business has obtained copies of the two 25-year agreements, one dated June 23, 1993, and the other August 31, 1993, that effectively gave it a 25-year monopoly on Grand Bahama’s energy market. Using virtually identical terms, the agreements gave GB Power “the sole right� to supply electricity outside the port area. And it was granted similar tax breaks as those enjoyed within Freeport, including exemptions from customs duty, PASTOR EDDIE VICTOR Freeport also. You’re going to see more push from us to deal with Freeport. We’re going to put in a push for Grand Bahama, and to take regulation out of the hands of the GBPA.� Pastor Victor and the CCC have been backing Northern Bahamas Utilities’ $30m proposal to build two utility-scale solar plants in East and West End, billed as bringing down electricity costs by up to 40 percent, as a means to end GB Power’s monopoly. He said yesterday that it would be “a sad testament� to the Government if it ultimately decided to renew with GB Power rather than give Northern Bahamas Utilities, a 100 percent Bahamian-owned group, the opportunity to invest in and develop the energy sector while keeping all profits in The Bahamas. “The mere fact they have not made a decision means what we’re doing has brought attention to it, and they really have to carefully
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decide what they’re going to do,� Pastor Victor said of the Government. “We’re prepared to intensify our campaign no matter what decision they make. We really have to fight for the customer, both residents and businesses. We have to fight for them.� Pastor Victor added that the CCC planned to deliver a further batch of letters from Bahamians supporting the break-up of GB Power’s energy monopoly to the respective MPs for West and East End, Pakeisha Parker-Edgecombe and KP Turnquest, deputy prime minister, this coming Monday. As previously revealed by Tribune Business, the expired East and West End supply agreements contain a potential obstacle for rival electricity suppliers seeking to breakup GB Power’s island-wide monopoly as they contain language that could be interpreted as giving it a “right of first refusal�
stamp duty and business licence fees, along with the use of so-called “bonded� goods without penalty. And both agreements give GB Power an option to renew for a further 25 years, “upon the same terms and conditions�, provided it gives notice of its intention to do so some 60 days before the existing deals expire. The review by the Attorney General’s Office is likely to be focusing on whether both agreements give GB Power a legally watertight “right of first refusal� that excludes the possibility of any rival operator, Bahamian or foreign, from taking over the contract.
PAGE 8, Thursday, January 3, 2019
THE TRIBUNE
DPM: ‘Serious concerns’ over Dutch blacklist FROM PAGE ONE
troubling given this nation’s efforts to comply with the anti-tax evasion demands of the 28-nation EU - of which the Netherlands is a prominent member. Mr Turnquest said The Bahamas’ passage of legislation to remove preferential tax breaks for foreign investors, and require entities that are part of multinational corporate networks to have “substance” behind their presence here, would effectively be rendered meaningless and worthless if individual members went beyond the bloc’s own
standards like the Dutch. Questioning whether it was a sign of EU “disunity”, he said the Netherlands’ action could prove particularly problematic if it paved the way for other individual European nations to follow suit with their own national “blacklists” - something that would undermine the value, and will for The Bahamas and others, in meeting the wider bloc’s demands. “We are looking at this at the moment using diplomatic channels as well as other contacts,” the deputy prime minister told Tribune Business. “This is unusual,
and we have to figure out what it means. “It is an interesting position they have taken considering they are members of the EU. We believe we have complied, and are working towards full compliance, with all the EU initiatives.” He added: “One has to ask: Is this a matter of taxation and concerns with jurisdictions such as ours, or is this a sign of EU disunity?’ In which case those of us subject to this blacklist will have some serious concerns. “We can’t be subject to unified rules for tax policies
which are then circumvented or extended on by individual members. The whole idea behind the EU common standard is just that: A common standard. “If we’re going to be held individual standards, each individual country might as well go back to the bilateral approach we started out with before.” Besides the five jurisdictions currently “blacklisted” by the EU, the Netherlands’ own list includes The Bahamas and 15 other states. Most are international financial centres (IFCs), such as Bermuda, the Cayman Islands, British Virgin Islands and Turks & Caicos, plus this likes of Jersey, Guernsey, Isle of Man, Saudi Arabia, Kuwait, Qatar and the United Arab Emirates. Mr Turnquest, though, said The Bahamas’ would have to reassess its strategy and focus on complying with standards set by countries that were most important to it should the use of “national blacklists” become more widespread. He told Tribune Business: “If each member country starts off in its own
direction, we will have to re-evaluate where we are and look at countries we have a strategic interest in to make sure we meet their standards as opposed to the standard currently. “At the end of the day, we need to know on what basis they [the Netherlands] consider The Bahamas to be a harmful state, and whether they’ve been in contact with the Government of The Bahamas and what agency. “I’m not aware of them expressing any concerns to my office. We will be addressing this matter from a diplomatic point of view, see what is discussed and then determine how to deal with it.” So-called “national blacklists” are not a new invention, as they have been employed previously by other countries - Mexico being one - to target jurisdictions they believe are helping to facilitate tax evasion and avoidance by their citizens and companies. The Netherlands’ listing, though, includes three punitive or sanctionsrelated measures it has implemented against The Bahamas and the other
nations - some of which took effect from New Year’s Day. Prominent among them is a 20.5 percent withholding tax that will be imposed on Dutch-source interest and royalties income, due to Bahamian and other corporate entities, from 2021 onwards. “By drawing up its own stringent blacklist, the Netherlands is once again showing that it is serious in its fight against tax avoidance,” its state secretary for finance, Menno Snel, was quoted as saying. “And that’s just one of the steps we’re taking.” While the Netherlands is unlikely to be a major market for the Bahamian financial services industry, its “blacklisting” tactic raises major questions as to the value and worth of meeting the EU’s demands if its members keep on shifting the standards. It may also further shake already-fragile sector confidence as The Bahamas prepares to implement, and adjust to, the legislation passed by Parliament preChristmas to meet the EU’s demands.
THE TRIBUNE
Thursday, January 3, 2019, PAGE 9
The stock market starts off 2019 with more turbulence NEW YORK Associated Press THE roller-coaster ride on Wall Street resumed yesterday, the first trading day of the new year, as stocks plunged early on, then slowly recovered and finished with a slight gain. The Dow Jones Industrial Average dropped as much as 398 points in the first few minutes of trading after more shaky economic news from China. But it gradually recouped those losses, and a small rally over the last 15 minutes of trading left major indexes a bit higher than where they started. A Chinese government survey and one by a major business magazine showed manufacturing in China weakened in December as global and domestic demand cooled. That weighed on big exporters, with tech companies like Microsoft and industrials like Boeing taking sharp losses early on, only to bounce back. That kind of whiplash was typical during the last three months of 2018, and many strategists think it is likely to continue. After trading ended, Apple gave a quarterly sales forecast that was far worse than analysts expected. It said its revenue will be lower than previously believed because of China’s slowing economy. In aftermarket trading, Apple fell seven percent. Other tech companies, especially chipmakers, sank as well. Some of last year’s worst performers, including energy and internet companies, led the gains yesterday. After gliding gently higher for years, propelled
by rising corporate profits and extremely low interest rates from the Federal Reserve, stocks have been heaving up and down in recent months as a host of fears weigh on investors, including threats to global economic growth. Stocks are coming off their worst year in a decade, and many Americans could be in for a shock when they open their monthly and end-of-the-year 401(k) statements. The benchmark S&P 500 fell six percent in 2018, its first substantial loss since 2008, and dropped 14 percent since late September. Many other stock indexes around the world fared even worse last year. The US economy has been expanding for almost a decade, and stocks have risen steadily over that time. From September through the end of December, however, investors became more and more worried that challenges such as USChina trade tensions, rising interest rates and political uncertainty could slow the economy and company profits, and possibly tip the US economy and the global one into a recession. Many Wall Street banks are forecasting a year of modest gains for stocks. But most also say they expect these sharp reversals to continue as investors try to handicap so many unknowns. Vinay Pande, head of trading strategies for UBS Global Wealth Management, said company earnings jumped in 2018 and are likely to keep improving. The S&P 500 index finished with a gain of 3.18 points, or 0.1 percent, at 2,510.03, while the Dow
Cruise line bid slams port rivals FROM PAGE THREE Those values are the base investment sums projected by Global Ports Holding and Nassau Port Partners, respectively, but the Port of Nassau Partnership did not stop there in its criticisms of the rival bids. Mr Israel, who was also described as a spokesman for the four-strong cruise line group participating in its bid, said adding additional berths was no guarantee that more ships and passengers would call on Nassau. “Larger ships are able to offer our passengers more features, while at the same time considering the economies of scale. Indeed, more of those ships are coming, and over time they will replace smaller ships,” said Mr Israel. “So, berth needs are staying stable or could even decline over time, while the number of passengers could grow. Our Port of Nassau Partnership proposal offers a solution to berths that is by far more rational and efficient than what others are proposing. “The current port is far from full capacity in terms of berths, but with our new and improved berths the port could facilitate double in passenger capacity – from the current 3.6m to about 7m. So in order to facilitate peak demand days and address other concerns, our bid calls for increased capacity at the port in a better, smarter way.” Mr Israel was then quoted as saying that a rival bidder’s berth expansion plans will “infringe on the turning basin”, and “create instability for large ships”. He added: “The area that this bidder is proposing their pier expansion on, their plans partly overlap the turning basin in the harbour, possibly preventing the arrival of large ships to Nassau. And if that isn’t enough, the area they are designating for the additional berths is outside the area clearly stipulated by the Government’s request for proposal.” “The cruise lines are supporting CPI (Cruise Port International, the Bahamian group) in responding to the
Government’s RFP because we need the port and the destination of Nassau to work. Who can have a better motivation to support this port than a group of companies that facilitate the arrival of more than 90 percent of the port’s customers?” The Port of Nassau Partnership statement sought to drive home the message that the involvement of the four cruise lines - Carnival, Royal Caribbean, Disney and Norwegian - meant that its bid was best placed to deliver the needed infrastructure upgrades because it had inside knowledge of what the industry requires. “We have leaned heavily on this decades-long experience that our cruise line partners have in The Bahamas, as well as the experience they have in the region,” said Gerald Strachan, CPI’s president. “They know the customer and what it will take to bring more passengers to The Bahamas and get them off of the ships. “They know the cruise industry and how to construct a port that is logistical. They know our port and show us what needs to be improved. They are a huge asset for informing what we will and will not implement at the Nassau Cruise Port should our bid be successful.” Other observers, though, believe that any cruise line involvement in the ownership, management and operation of Nassau’s port represents a clear conflict of interest, not least because they will be its major customers. The Port of Nassau Partnership said its plan involves adding one 3,0004,000 passenger ship berth for vessels still considered a “workhorse” of the cruise industry. Its four cruise lines are forecasting that, by the end of 2020, 90 percent of the global cruise ship fleet will comprise 3,000 to 4,000-passenger ships or larger. The offer also includes improvements to an existing mid-size berth so that a second 5,000 passenger ship can be accommodated at the Nassau port. The four cruise companies involved in the bid operate 18 different cruise lines.
rose 18.78 points, or 0.1 percent, to 23,346.24. The Nasdaq composite climbed 30.66 points, or 0.5 percent, to 6,665.94. Most markets were closed on Tuesday for New Year’s Day. Prices on long-term government bonds rose, a sign investors were looking for safer options. The yield on the ten-year Treasury note fell to 2.63 percent from 2.69 percent. After sharp losses at the start of trading, benchmark US crude jumped 2.5 percent to $46.54 per
barrel in New York. Brent crude, used to price international oils, rose 2.1 percent to $54.91 per barrel in London. Those gains helped send energy stocks higher. Oil prices have fallen about 40 percent since early October 2018 as investors reacted to the possibility of weaker demand for energy as economic growth slowed. That led to sharp drops in energy companies. Julian Emanuel, chief equity and derivatives strategist for BTIG, said investors often start a new
year by buying shares of the companies that did the worst the year before. Meanwhile, health care companies, the best-performing part of the market in 2018, fell yesterday as drugmakers and insurers lost ground. In other trading: • The dollar fell to 109.21 yen from 109.61 yen. The euro fell to $1.1344 from $1.1445. The British pound slid to $1.2609 from $1.2752. • France’s CAC 40 fell 0.9 percent and the British FTSE 100 added 0.1 percent. Germany’s DAX rose
0.2 percent. Hong Kong’s Hang Seng tumbled 2.8 percent and Seoul’s Kospi gave up 1.5 percent. Tokyo’s markets were closed. • Wholesale gasoline rose 1.8 percent to $1.33 a gallon. Heating oil gained 1.3 percent to $1.70 a gallon. Natural gas rose 0.6 percent to $2.96 per 1,000 cubic feet. • Gold rose 0.2 percent to $1,284.10 an ounce and silver added 0.7 percent to $15.65 an ounce. Copper fell 0.3 percent to $2.62 a pound.
GN 2158
PAGE 10, Thursday, January 3, 2019
THE TRIBUNE
MARYLAND BOARD VOTES AGAINST NATURAL GAS PIPELINE PROJECT
ANNAPOLIS Associated Press
A BOARD of highranking Maryland officials yesterday rejected a proposed pipeline across the western part of the state that would carry natural gas produced in Pennsylvania to West Virginia. The Board of Public Works voted 3-0 against an easement for TransCanada’s pipeline. It would run under the Potomac River near Hancock, Maryland, and extend about three miles from Columbia Gas’ network in Pennsylvania to Mountaineer Gas’ distribution system in West Virginia. Comptroller Peter Franchot, a Democrat, cited testimony that the pipeline could bring Maryland environmental problems without economic benefits. The board also includes Maryland Gov Larry Hogan, a Republican, and Treasurer Nancy Kopp, a Democrat. Environmentalists and residents have been vocal in opposing the pipeline. “Marylanders and many of their leaders have consistently opposed the threats fracked gas pipelines pose to our health, water, climate, and
communities,” said Josh Tulkin, Sierra Club Maryland chapter director. Scott Castleman, a spokesman for TransCanada, said the company will consider its options over the coming days to keep the project on track. “For nearly two years, our project has been studied and scrutinised by groups including the Federal Energy Regulatory Commission, the Maryland Department of the Environment and the Maryland Department of Natural Resources,” Castleman said. “This extensive process has confirmed that through proper design and construction our project can be completed in an environmentally responsible and safe manner.” The board’s vote came after more than 60 lawmakers sent a letter urging board members to reject the proposal. The lawmakers noted that Maryland approved a law, which Hogan signed in 2017, to ban the hydraulic fracturing drilling process known as fracking in Maryland. The process is used to extract natural gas. Maryland was the first state where a legislature voted to bar the practice that actually has
natural gas reserves. “Given that Maryland has banned fracking, it defies our state’s existing energy policy to bring the same public health risks to our residents by way of a pipeline,” the letter said. “Moreover, enabling fossil fuel production runs counter to our state’s goals
of increasing renewable energy production.” The letter, which was sent this week, also noted that the pipeline would affect at least ten wetlands and 19 streams, in addition to the Potomac River. While the board delayed a vote on the easement at its last meeting, Hogan said
Clivedale Holdings Ltd. NOTICE IS HEREBY GIVEN as follows:
Pursuant to the provisions of Section 138 (4) (a), (b) and (c) of the International Business Companies Act, 2000, notice is hereby given that:-
(a) Clivedale Holdings Ltd. is in dissolution under the provisions of the International Business Companies Act 2000.
(a) TEAGREEN MARKETING LTD. is in dissolution;
(b) The dissolution of the said Company commenced on the 28th day of December, 2018 when its Articles of Dissolution were submitted to and registered by the Registrar General.
(b) The date of commencement of the dissolution is the 19th day of December A.D. 2018 and
(c) The Liquidator of the said Company is Mr. Delano Aranha of Ocean Centre, Montagu Foreshore, East Bay Street, P.O. Box N-3247, Nassau, Bahamas
(c) the Liquidator is C.B. Strategy Ltd., of Sassoon House, Shirley & Victoria Streets.
H & J CORPORATE SERVICES LTD. Registered Agent for the above-named Company
C.B. Strategy Ltd. LIQUIDATOR
NOTICE
MARKET REPORT WEDNESDAY, 2 JANUARY 2018
TIVOLI INVEST LTD. t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 2,109.41 | CHG -0.04 | %CHG 0.00 | YTD -0.04 | YTD% 0.00 52WK HI 4.50 20.91 7.50 4.90 1.48 0.56 3.92 10.20 6.60 4.92 12.50 2.74 1.78 8.21 6.30 13.20 6.98 4.48 13.50
52WK LOW 3.50 19.17 4.90 3.32 0.90 0.18 2.10 8.70 6.10 3.54 9.00 2.30 1.50 7.25 6.00 10.10 5.85 3.25 12.51
1050.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
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
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
SYMBOL LAST CLOSE AML 4.43 APD 17.43 BPF 7.00 BWL 4.90 BOB 1.46 BBL 0.56 CAB 2.29 CIB 10.20 CHL 6.16 CBL 4.50 CBB 11.25 CWCB 2.33 DHS 1.78 EMAB 7.84 FAM 6.30 FBB 12.85 FIN 6.98 FCL 3.62 JSJ 13.01 CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
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) 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
MUTUAL FUNDS 52WK HI 2.19 4.18 2.02 182.41 158.55 1.59 1.71 1.67 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.52 1.68 1.61 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00 LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.43 17.43 7.00 4.90 1.46 0.56 2.29 10.20 6.16 4.50 11.25 2.28 1.78 7.85 6.30 12.85 6.98 3.62 13.01
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.05 0.00 0.01 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
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
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
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial 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
VOLUME 90
65
500
VOLUME
EPS$ 0.214 0.932 -0.306 0.317 0.059 0.000 -0.588 0.700 0.441 0.154 0.627 0.102 0.209 0.000 0.670 0.701 0.578 0.277 0.631
DIV$ 0.120 1.260 0.000 0.240 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.280 0.500 0.150 0.130 0.600
P/E 20.7 18.7 N/M 15.5 N/M N/M -3.9 14.6 14.0 29.2 17.9 22.4 8.5 N/M 9.4 18.3 12.1 13.1 20.6
YIELD 2.71% 7.23% 0.00% 4.90% 0.00% 3.57% 0.00% 6.96% 3.57% 2.67% 5.51% 2.63% 3.37% 1.07% 4.44% 3.89% 2.15% 3.59% 4.61%
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 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75% 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%
NAV 2.19 4.18 2.02 182.41 158.55 1.59 1.71 1.67 1.09 7.41 8.57 6.55 10.68 11.65 10.62 9.92 8.69 11.79
YTD% 12 MTH% 3.23% 4.04% 1.03% 1.38% 1.92% 2.39% 2.08% 3.47% 3.35% 5.94% 3.67% 4.43% 0.73% 0.96% 2.88% 3.53% -0.53% 0.27% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 3.96% 7.75% 8.34% 14.88
MARKET TERMS 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
vote marks an end to the proposal. “We’ll see if (the Federal Energy Regulatory Commission) gets involved or the courts get involved, but for now it’s a welcome delay and we hope a permanent end to this pipeline,” Havemann said shortly after the vote.
NOTICE
NOTICE
BISX LISTED & TRADED SECURITIES
the unanimous vote would have happened without the letter from lawmakers. “It had nothing to do with any letter from the legislature,” Hogan said at yesterday’s board meeting. Anne Havemann, an attorney for Chesapeake Climate Action Network, said she hopes the board’s
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
MATURITY 19-Oct-2022 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 NAV Date 31-Oct-2018 31-Oct-2018 26-Oct-2018 30-Sep-2018 30-Sep-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 31-Oct-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018
NOTICE is hereby given as follows: (a) Tivoli Invest Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000. (b) The Dissolution of the said Company commenced when the Articles of Dissolution were submitted to and registered by the Registrar General of the Commonwealth of The Bahamas. (c) The Liquidator of the said Company is Beatus Limited, P.O. Box N7776-348, N.P., Bahamas. Dated 2nd day of January, 2019. Beatus Limited Liquidator
NOTICE Notice is hereby given that Geranie Pierre of #83 Sunset Subdivision, Freeport, Grand Bahama 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 signed statement of the facts within twentyeight days from the 27th December, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.
NOTICE Notice is hereby given that Delano Boots Fenelus of Lazaretto Rd. 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 signed statement of the facts within twenty-eight days from the 27th December, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.
PAGE 12, Thursday, January 3, 2019
THE TRIBUNE
APPLE DROPS IPHONE BOMBSHELL ON ALREADY REELING STOCK MARKET SAN FRANCISCO Associated Press APPLE acknowledged that demand for iPhones is waning, confirming investor fears that the company’s most profitable product has lost some of its luster. The reckoning came in a letter from Apple CEO Tim Cook to the company’s shareholders released after the stock market closed yesterday. Cook said Apple’s revenue for the October-December quarter — including the crucial holiday shopping season — will fall well below the company’s earlier projections and those of analysts, whose estimates sway the stock market. Apple now expects revenue of $84bn for the period. Analysts polled by FactSet had expected Apple’s revenue to be about nine percent higher — $91.3bn. The official results are scheduled to be released Jan 29. Cook traced most of the revenue drop to China, where the economy has been slowing and Apple has faced
THE IPHONE XS, from left, iPhone XR, and the iPhone XS Max in New York. Apple warns that disappointing iPhone sales will cause a significant drop in its revenue over the crucial holiday season compared to earlier projections. CEO Tim Cook made the announcement after the market closed yesterday. tougher competition from home-team smartphone makers such as Huawei and Xiaomi. President Donald Trump has also raised new tensions between the US
and China by imposing tariffs on more than $200bn in goods, although so far the iPhone hasn’t been affected directly. China’s “economy began
to slow there for the second half,” Cook said during an interview with CNBC yesterday afternoon. “The trade tensions between the United States and China put
additional pressure on their economy.” Cook also acknowledged that consumers in other markets aren’t buying as many of the latest iPhones, released last fall, as Apple had anticipated — a factor that could stem from a starting price of $1,000 for Apple’s top-ofthe-line iPhones. Apple’s stock plunged seven percent to $146.40 in yesterday’s extended trading. The shares had already fallen 32 percent from their peak in early October when investors still had high hopes for the new iPhone models. Apple’s troubles may have ripple effects on other technology companies, given investors have been bailing on the industry in recent months. The tech-driven Nasdaq composite index now stands 18 percent down from its record closing high reached in August. Now, Apple must try to find a way to win back Wall Street’s confidence and reverse a steep decline that has erased $350bn in shareholder wealth in just three months. “This is Apple’s darkest day during the Cook era,”
Wedbush Securities analyst Daniel Ives said. “No one expected China to just fall off a cliff like this.” While President Donald Trump’s trade war with China isn’t helping Apple and other US technology companies, Ives believes Apple miscalculated by continuing to roll out highpriced phones in China, creating an opening for rivals with less costly alternatives that still worked well. The price gap is one reason Huawei surpassed Apple in smartphone sales from April through September last year to seize the number two spot behind industry leader Samsung, according to the research firm International Data Corp. “The question now is will Apple change its strategy or stick to its hubris,” Ives said. To help boost iPhone sales, Cook said Apple will expand its financing plans and build upon its recent efforts to make it easier to trade in older models at its stores. But outsiders will find it harder to see how that’s working out. In November, Apple unexpectedly announced that it would no longer disclose how many iPhones it ships each quarter, ending a long-running practice. Wall Street immediately interpreted the move as an attempt to mask a slow but steady downturn in sales. Apple said at the time that it wanted to reduce investor focus on its iPhone division and instead highlight other promising areas of its business, including its services division that sells subscriptions for music streaming, collects app-related commissions and repairs malfunctioning devices. But the company now expects its annual revenue to fall five percent from the previous year’s level. That reversal of fortune could reinforce fears of a global economic slowdown.
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