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Gov’t turns down Ginn bid and plan By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government has rejected a bid to acquire the former Ginn sur mer project, which planned to construct a 28-storey “iconic tower” modelled on Alexandria’s ancient lighthouse, in its present form. Highly-placed sources, speaking on condition of anonymity because they were not authorised to talk publicly, told Tribune Business that the Davis administration had formally notified Kingwood International Resorts and its principals late last month that it was not currently prepared to approve their acquisition of the Grand Bahama-based project or give the existing development plans the go-ahead. Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, declined to comment when approached by Tribune Business last week. Gail Lockhart-Charles, the Bahamian
BAHAMIAN retailers have been left disappointed by Budget tariff cuts that were “not as broad-reaching as we’d have liked”, adding: “Ten percent of something is better than 45 percent of nothing.” Tara Morley, the Bahamas Federation of Retailers’ cochair, told Tribune Business that further duty reductions are “absolutely something retailers are looking for” to ensure price competitiveness with US and online rivals as well as ensure that a greater portion of
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE LIGHTHOUSE CONCEPT
Retailers: We wanted ‘broader’ Budget cuts By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
‘No Bahamas slowdown’ from crypto winter freeze
attorney representing Kingwood, also refused to speak to this newspaper, neither confirming or denying whether the Government had turned down her client’s proposal. However, Tribune Business was told by multiple contacts that the Government had become concerned that Kingwood was marketing the former Ginn project, which it has rebranded as Reunion Cay, as if it was a done deal both online and at events earlier this year such as the Fort Lauderdale International Boat Show - giving the impression that it owned the near-2,000 acre site already even though none of the necessary approvals have been granted. Kingwood has gone to the extent of setting up a dedicated website for the project, www.reunioncay.com, along with Facebook and Instagram pages. The Facebook page was promoting Grand Bahama’s West End as recently as yesterday and over the weekend, touting its “founders
SEE PAGE 7
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THE BAHAMAS’ top digital assets regulator says there has been no slowdown in applications to do business from this jurisdiction despite the collapse in global cryptocurrency valuations, and is predicting that interest will only increase. Christina Rolle, the Securities Commission’s executive director, told Tribune Business in a brief messaged reply that the Digital Assets and Registered Exchanges (DARE) Act and wider regulatory framework would continue to attract blue-chip companies wanting to conduct business from a properly supervised jurisdiction. Digital currencies collectively have lost two-thirds of their value over a sixmonth period, dropping from a peak of $3trn to under $1trn, but she indicated that this market correction does not signal the industry’s long-term demise or undermine The
CHRISTINA ROLLE Bahamas’ ambitions to establish itself as a hub for this financial services niche. “I think what we are seeing is mostly as a result of severe over-leveraging and a lack of management of counter-party risks,” Ms Rolle told this newspaper. “The Securities Commission is not seeing a slowdown in applications. It’s my view that in the medium and longterm we will see more and more firms seeking out regulation.
SEE PAGE 8
consumer spending stays in the economy to benefit local businesses. The Federation, its members and other retailers had submitted proposals for various Budget tariff cuts to the Davis administration via the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), but the Government ultimately elected to keep the reductions narrowly focused on food, construction materials, electrical goods and renewable energy in a bid to ease the cost of living crisis and boost policy priorities
SEE PAGE 10
Collateral Registry to ease 231% loan security burden By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank has unveiled plans for an Internet-based collateral registry that will ease Bahamian small business access to funding in a market where the security demanded is often more than three times’ the loan amount. The regulator, kickstarting public consultation on long-awaited efforts to transform secured lending in The Bahamas, said the proposed registry combined with legal reforms will enable entrepreneurs, startups and micro, small and medium-sized businesses to pledge mobile assets - such as vehicles and equipment
- to lenders as security for credit they extend. In addition, the Central Bank said the Movable Property Security Interest Bill 2022 will also provide the legal and regulatory framework for using socalled “intangible assets” - accounts receivables (factoring) and intellectual property rights - as loan collateral, securing the rights of both lenders and borrowers. Pointing out that small businesses already face significant obstacles to obtaining credit from traditional lenders, with a World Bank study in 2010 having found collateral equivalent to 231 percent of the
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PAGE 2, Monday, July 4, 2022
THE TRIBUNE
Minimum wage rise better than nothing C
onsidering the Government’s stated intention to increase the minimum wage from its present $210 to $250 per week, as per its general election manifesto, this article will explore what such a raise would mean for the economy, workers and employers. A minimum wage is the lowest wage that employers can pay workers by law. The topic has often been controversial, and has created something a divide between politicians and economists. Impact of increasing minimum wage The minimum wage’s purpose has always been to help stabilise society and protect workers in the labour force. The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees. It can also help to drive activity in the domestic economy and create new start-up opportunities. For instance, an increase in minimum wage can help families improve the quality of life for their household members something as simple as keeping the Internet on for online learning, or providing better school lunches on a consistent basis. However, some economists argue
that a minimum wage does not achieve a more stable society. The reason behind this thinking is linked to demand and supply. If the price for a good or service goes up, the demand begins to decrease. In the case of the minimum wage, if the cost of labour increases, then the demand for workers by employers begins to decrease, or so the theory goes. The reduced desire among employers to hire workers leads to unemployment. In a real world context, businesses want to remain profitable and sustainable. Therefore, an increase in the minimum wage might lead to a sharp increase in wages/salaries that some businesses are not willing to absorb. In response, companies can increase the selling price of their goods and services. But an increase in the minimum wage is not the only reason why businesses increase prices. Other factors include production cost increases, additional taxes and other macroeconomic conditions. Purpose of the minimum wage Supporters of the minimum wage, and workers in general, have always argued that increasing salaries would help manage the rising cost of living. The
cost of living is an index that is calculated by comparing the prices presently paid for a range of goods and services, on which consumers spend their money, with those paid in the past. However, the cost of living and the minimum wage do not change simultaneously. In fact, since the early 1990s, the minimum wage has only increased three times in the US. That is because increases in the minimum wage are not always linked to productivity or the inflation rate. So, will increasing the minimum wage help to offset the rising cost of living in a real world context? Some studies have found that increases in the minimum wage result in workers having to work more jobs, or more hours, to achieve a 40-week work schedule since businesses reduce the number of hours an employee can work, ensuring that just the minimum wage is met. This occurs because, when the minimum wage increases, lay-offs may also happen because companies cannot afford to pay the higher wage bill. Employers will also consider hiring less because they cannot afford to pay the extra staff. There is also the possibility that prices for a particular service/good may
increase to shore up salary costs. So, even though increasing the minimum wage will give those workers affected more money to spend, companies may also raise their prices to offset increased employee costs. However, raising the minimum wage could also boost the economy through extra spending by workers at this income level. Impact on Bahamian businesses A University of The Bahamas study asserted that a $350 to $500 weekly wage, or so-called livable wage, is better-suited to giving Bahamian families a decent standard of living than simply increasing the minimum wage by $40 per week - especially in today’s inflationary environment. The recent increase in inflation is driven by supply chain disruptions and pent-up consumer demand for goods following the reopening of the economy after COVID-19. To understand how Bahamian businesses will respond to a minimum wage rise, we should consider the following: 1. We should first know how many businesses are already paying their staff above the minimum wage. If businesses are forced to pay higher minimum wages, this might discourage them from hiring new workers because of the extra costs.
2. There may be economic opportunities for new market entrants, such as college graduates, who want to have experience. Businesses could just shift or consolidate resources to ensure that higher paid workers cover business needs instead of hiring new workers. 3. The quality of services and goods may decline because productivity does not show continuous improvement. If workers are already making more than the minimum wage, they will be confident and secure in their jobs, especially in hard economic times. On the other hand, businesses may have to spend more on training and wages for new employees coming in as a minimum wage worker. Productivity and Minimum Wage At an enterprise level, increasing the minimum wage may make workers more motivated and incentivised to work. This new motivation could translate into increased productivity. However, it may also make minimum wage earners comfortable to the extent that no new skillsets are applied to the business. Increasing the minimum wage, and not reducing the cost of living, may only encourage low-skilled workers to become comfortable with earning more while doing less. This also makes it
SIMMS RODERICK A.
AN ADVOCATE FOR SUSTAINABLE FAMILY ISLANDS
more difficult for employers, since the asking price for skilled workers can also increase. Conclusion In closing, an increase in minimum wage should be a standalone move in hopes of achieving economic growth or stability. It is only a patch on the bigger issues we face as a country. There is still a lot we need to do to diversify the economy, which largely requires making our workforce more competitive. It will not hurt to have more money in our pockets but, as the cost of living continues to increase, giving handouts is not a real and feasible solution. We need to focus on how to reduce the cost of living by using the resources we currently have and building on them. Until then, $250 is better than zero.
Making ethics more than paper pledge I
n today’s business environment, brands must deliver first-class services in an agile and flexible manner that is relevant to all consumer demographics, regardless of the threat of disruptions. However, during this pursuit, corporate greed, employee exploitation and ethical violations can become commonplace. Classic examples include Enron and several of the financial firms that played leading roles in the 2008 sub-prime mortgage lending debacle. Just last month, it was reported that one of the so-called ‘Big Four’ accounting firms, EY (Ernst & Young), was fined $100m by US regulators after some of its employees cheated on ethics tests they were required to take to get or maintain their professional licences. In this article, I will discuss two points: The ‘top down’ promotion of an ethical and transparent culture, and the collaboration of human resources and a company’s risk and compliance functions. Top-down promotion of an ethical and transparent culture The creation of a strong culture by a company’s executive team will translate into long-term value creation and risk mitigation. The Board of Directors and top executives must lead by example. Leadership, for instance, should exhibit courteous and respectful behaviour towards employees to demonstrate what type of conduct is expected. You may do this by showing genuine interest in the team’s achievements or by gaining insight on upcoming company
operations. During meetings, for example, leaders should behave in a courteous and respectful way towards workers to show what kind of professional behaviour is expected. This can include anything from showing genuine interest in employee accomplishments and milestones to gaining staff input on existing and future company operations. As a result of adopting this level of respect and transparency, employees are motivated to follow suit in their roles and responsibilities. This assists in preventing inappropriate behaviour and reduces potential risk in the long run.
Human resources, risk and compliance collaboration Compliance and human resources should work together, as both are integral to ensuring a compliant, safe and inclusive workplace. It is true that having an ethical culture on paper allows a business to comply with regulations, but companies should move one step further and create an environment where people behave ethically since they desire to - not because they are required to. A significant difference exists between these motivations; a difference that workers feel throughout the company. It is in this context that human resources and compliance teams can strategically collaborate to educate the business on the benefits of a more diverse workforce, while ensuring compliance with relevant laws. This helps the human resources team source more “fit over form” qualified candidates.
By
Derek
Smith Conclusion Leaders today require a higher degree of ethical guidance than they did in the past. It is imperative that you rethink the way you do business in a strategic and holistic manner. When leaders set an example versus simply being compliant on paper, and encourage functional strategic collaborations, they will not only benefit their company, their team and their profitability, but will also benefit the public. Jr
NB: About Derek Smith
Derek Smith Jr. has been a governance, risk and compliance professional for more than 20 years. He has held positions at a TerraLex member law firm, a Wolfsburg Group member bank and a ‘big four’ accounting firm. Mr Smith is a certified anti-money laundering specialist (CAMS), and the compliance officer and money laundering reporting officer (MLRO) for CG Atlantic’s family of companies (member of Coralisle Group) for The Bahamas and Turks & Caicos.
THE TRIBUNE
Monday, July 4, 2022, PAGE 3
DPM UNVEILS ‘AUTHENTIC PRODUCT INCUBATION’ PLAN By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE deputy prime minister has unveiled plans to create a “Bahamian product incubation centre” for downtown Nassau by yearend in a bid to address the “shockingly” low number of entrepreneurs selling local, authentic product. Chester Cooper, also minister for tourism, investments and aviation, pledged that the Government will “bring some life” to East Bay
Street and ensure more Bahamian entrepreneurs have a chance to develop. Hinting at the Davis administration’s strategy for reviving downtown Nassau, he hinted that it includes attracting persons to live in the city once again and help create a customer base for its businesses. “One of the things that we are going to do is to ensure that, on Bay Street, there is an authenticallyBahamian incubation centre, tentatively a Bahamian-product Incubation Centre,” Mr Cooper said. This is to be developed by the Tourism Development
Corporation, using one of the dilapidated buildings on East Bay Street for its home. The Government has already been in discussion with some potential landlords. The deputy prime minister added that the Tourism Development Corporation wants to ensure entrepreneurs “have more opportunities”, and provide them with technical assistance and connections to New Providence’s visitor traffic. “The Downtown Partnership has been working on this for decades. What the Government is doing is bringing support
BAHAMAS TO TACKLE CORPORATE TAX DEMANDS ‘IN NEAR FUTURE’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister has pledged that The Bahamas will address demands for a 15 percent minimum global corporate tax and greater transparency “in the near future”. Michael Halkitis, minister of economic affairs, addressing a London-based event to market the Bahamian financial services sector, also affirmed that this nation has begun the process of reforming its Digital Assets and Registered Exchanges (DARE) Act and other legislation to ensure regulation keeps pace with emerging trends in this niche. Asserting that The Bahamas “embraces change as an opportunity for growth”, he added: “Greater transparency measures for mandatory disclosures and the arrival of global minimum corporate taxes
are issues that we are prepared to address in the near future. You can be sure that our response to these looming issues will be swift and maintain clearly articulated, balanced policy positions.” Pointing to how The Bahamas met European Union (EU) demands for all entities operating in this nation to have a physical, or commercial presence, as well as eliminating socalled ‘ring fencing’ and preferential tax exemptions for corporate vehicles conducting business in the international economy, Mr Halkitis argued that no other nation can match this nation for its number of financial services professionals on “a per capita basis”. “Investors in The Bahamas can be assured that we will never rest on our laurels. We are always scanning the horizon for opportunities to strengthen existing offerings and tap into emerging niches,” the minister said. “This
is why leaders in the Fintech (financial technology) industry are now making moves to establish a foothold in The Bahamas. “In our Digital Assets and Registered Exchanges legislation, we have a world-leading regime for the regulation and facilitation of the exchange of digital assets, digital payments, digital ledger technologies and the sale of digital assets. Our financial services sector has now been launched into a digital landscape that will open the door to a range of new service offerings as the world continues to embrace the Fintech revolution. “True to our reputation for measured innovation, we have already begun the process of drafting amendments to the existing legislation in recognition of emerging trends, such as stable coins, non-fungible tokens (NFTs) and provisions for greater consumer protections in decentralised finance.”
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to their initiatives,” Mr Cooper added of efforts to revive downtown Nassau and Bay Street. “Support with me as minister of tourism, along with the minister of works and the Attorney General’s Office, to have to create an enabling framework for the revitalisation of downtown. There has to be some legislative changes, there has to be some will to be able to make some of the necessary adjustments.” Support from Bay Street and downtown property owners will be critical. Mr
Cooper added: “In the meantime, we’re going to do whatever we can to ensure that we contribute to entrepreneurship and, therefore, I’ve asked the Tourism Development Corporation to begin the process of an incubation centre for Bahamian products. “We have already begun the process of identifying a space. There have already been discussions with potential landlords and we hope that we will find a favourable opportunity to
begin this process in earnest this year.” Hinting that the Government wants to make Nassau a living city, Mr Cooper added: “If we are able to get people living on Bay Street, we will be able to generate even more traffic for entrepreneurs and businesses on Bay Street. So we are very clear in terms of what we wish to do. We’ve begun discussing actively with the stakeholders and I hope that people will see tangible results.”
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PAGE 4, Monday, July 4, 2022
THE TRIBUNE
Digital asset regulation ‘spurs’ Bahamas interest PICTURED L to R: Jacy Whittaker, vice-president, Bahamas Bar Association; Tanya McCartney, chief executive and executive director, BFSB; Mr Halkitis; Kelli Ingraham, Bahamas Bar Association; Khalil Parker, president, Bahamas Bar Association Bahamian panellists.
THE Bahamas Financial Services Board’s (BFSB) chief executive says this nation’s regulatory framework for digital assets “spurred new interest” in this nation during a recent promotional tour to the UK. Tanya McCartney, also its executive director, speaking after the BFSB last week teamed with Hedgeweek to host a Bahamas Spotlight event marketing this nation’s financial services offering, said: ““We are very pleased with the response that we received from attendees. “There is tremendous interest in The Bahamas as a financial centre. Certainly the work that we have done to regulate digital assets business has spurred new interest in the jurisdiction. There was a clear indication that our wealth management offerings remain attractive. In addition, people are looking for stability and certainty in the current global economic environment and we can provide this in the context of financial services.” The Bahamas Spotlight briefing was held at Prince Philip House in Mayfair. It was designed to showcase the Bahamian financial services sector as the UK seeks to strengthen its linkages with Commonwealth nations and explore opportunities for trade in goods and services. The event was facilitated by Ms McCartney and attended by the Bahamas Bar Association’s president, Khalil Parker, and other members of the Bar Council, plus Khrystle Rutherford-Ferguson, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chairman. Bahamian financial services executives and regulators described the country’s product and service offerings. Victoria Younghusband, a partner at the UK-based Charles Russell Speechlys law firm, provided an update
MICHAEL Halkitis, minister of economic affairs, addresses attendees at the Bahamas Spotlight UK Event. on developments in the UK financial services sector and opportunities for international financial centres (IFCs) such as The Bahamas. Valdez Russell, FTX Digital Markets’ vice-president of communications and corporate social responsibility, explained why the cryptocurrency exchange had selected The Bahamas as its domicile of choice. And Christina Rolle, the Securities Commission’s executive director, spoke on the topic of Balancing innovation with regulation. A roundtable discussion was held on the range of wealth management services offered in The Bahamas, its new regulatory regime for investment funds and digital assets and registered exchanges, and the regulation of the insurance sector. The panel featured Christel SandsFeaste, partner, Higgs & Johnson; Christina Rolle, executive director, Securities Commission; Michele Fields, superintendent, Insurance Commission of the Bahamas; Ricardo Evangelista, director, ActivTrades; Valdez K. Russell, FTX Digital Markets; and Wendy Warren, founder and managing member, Caystone. The BFSB and the Securities Commission also sponsored the Hedge Fund European Digital Assets Summit, designed for European hedge fund managers and product specialists to discuss key developments, trends and issues driving
the growth of digital asset strategies and funds. Ms Rolle spoke on The road from Bitcoin to Defi and the opportunities (and pitfalls) for the hedge fund space. Throughout their London mission, the BFSB and Michael Halkitis, minister of economic affairs, reaffirmed that the Bahamas is open for business and is actively seeking to strengthen its relationship with the UK. This effort included meetings with The Caribbean Council, a long-established trade and investment membership organisation that supports responsible and sustainable privatesector-led investment and development in the Caribbean, Cuba and Central America. The delegation was also briefed on developments in the private wealth space by Edward Hall, partner at Wiggin Osborne Fullerlove, a UK-based specialist international private client law firm providing services to high-net-worth clients. A meeting was also held with the organizers of Forum for Impact, which recently hosted a dialogue in The Bahamas under the theme Building bridges for impact across the Americas. It brought together high net worth individuals, family office principals and investors to “engage the unengaged”, which attracted some 60 to 80 attendees. The organisers wish to make this an annual event in The Bahamas.
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THE TRIBUNE
Monday, July 4, 2022, PAGE 5
Contradictory Futures By Chris ILLING Business developer ActivTrades Corp
O
n the futures markets, metal prices have recently fallen sharply. This is not an all-clear for inflation, because if you look at longer-term price development, the problem becomes more than clear. When it comes to inflation, energy and food prices are receiving special attention. Natural gas in Europe costs five times’ the average of the past six years, while the prices of corn, wheat or soybeans are one-anda-half times the average of the past 60 years. But the prices of industrial products are also rising, partly due to high energy prices. According to the US Federal Statistical Office, prices for intermediate goods rose by a quarter in May compared to the previous year. Metals, in particular, have become significantly more
expensive with an increase of 38 percent – iron and steel cost 50 percent more than in the previous year, rebar steel 70 percent, and raw aluminum 42 percent more. Futures market developments seem to have recently been completely contrary to this. On the London Metal Exchange, prices have fallen by an average of around a third over the past three months, and the price of nickel, which is mainly needed for steel production, by more than half. However, looking at the longer-term price development in perspective, starting from the lows that metal prices had reached in
March 2020, they had initially more than doubled. The price of tin rose by a factor of 2.7, and that of nickel by a factor of 3.4. It is no surprise, then, when the prices of these metals have recently fallen the most. The bottom line, however, is that the prices of industrial metals are currently more than 20 percent above the average of the past 15 years. This contradictory development involving the prices paid by consumers, producers and commodity exchanges can be attributed to the interruptions in the supply chains. Manufacturers repeatedly lack the raw materials they need.
The uncompromising zero-COVID policy of the Chinese leadership seems to be responsible for it. The closure of ports and the widespread, and sometimes sudden, imposition of curfews leads to a lack of raw materials elsewhere. In this situation, companies reduce orders and use falling futures prices to hedge. The fundamental situation is quite different, but this will only come into play when China moves away from its COVID policy. Since China’s demand for raw material is lagging at the moment, recession worries are currently dominating the commodity markets. The turnaround
in price developments on Western stock markets also began at the beginning of March, when the US Federal Reserve began to tighten its monetary policy. The rising prices of end products are primarily the result of continued strong demand. The motor vehicle market is a good example of this. Tesla has already raised prices several times this year. And the German used car market is more expensive than it has been since reunification in 1990. In particular, the prices of new electric vehicles have risen significantly. This is due to higher prices for battery raw materials such as lithium, nickel and
cobalt. Due to the high battery costs, the profit margins for electric cars were already comparatively low in the past. Ford announced the company had earned nothing more on the model Mach-E. But there is extremely robust demand, and we have the opportunity to set prices, said Ford chief executive, Jim Farley, in April. “We live in a world in which there seem to be almost no limits to the willingness to pay,” said Robert Scaringe, head of the e-car manufacturer Rivian, even if this will not remain so in the long run.
PAGE 6, Monday, July 4, 2022
THE TRIBUNE
COLLATERAL REGISTRY TO EASE 231% LOAN SECURITY BURDEN FROM PAGE ONE
loan value was typically demanded, the Central Bank said the post-COVID fall-out was likely to make risk averse banks even more skittish when it came to financing SMEs with minimal track record. And the regulator, in its consultation paper, said advisors it had hired to study The Bahamas’ existing secured lending framework had found multiple gaps, weaknesses and deficiencies that were inconsistent with international best practice. Besides the absence of any legal basis for accounts receivables factoring, electronic transactions involving lending security cannot be perfected or recorded because the Companies Registry accepts only paper-based documents. “In The Bahamas, private sector credit has been on the decline during the past decade, and collateral requirements remain high, hampering access to credit and collateral. According to the 2010 World Bank Enterprise Survey, collateral requirements were estimated at 231 percent of the loan value, which was higher compared to its Latin American and Caribbean and high-income (non-OECD) peers,” the Central Bank said, as it moved to justify the reforms. “In addition, there is a serious mismatch between the assets that lending institutions will accept as collateral and the assets held by SMEs. In The Bahamas, the preferred form of collateral is immovable property (real estate and land), and the movable property accepted by most commercial banks and credit unions is extremely limited, but SMEs typically do not own immovables. “In developing countries, most assets held by SMEs are movable property, which include vehicles, machinery, equipment and accounts receivables, with an average holding of a mere 22 percent in land. This means that SMEs are often either denied credit outright or cannot afford to borrow due to the high lending rates. Often, the legal framework fails to facilitate the use of movable property as collateral.” Warning that the inability of Bahamian SMEs, which are thought to account for 90 percent or more of all companies in this nation, to access credit will likely only worsen, the Central Bank said: “The economic crisis caused by the COVID-19 pandemic is likely to increase market risk, liquidity risk and credit risk, resulting in a lending decrease, particularly to SMEs, a sector likely to be more harshly hit by the pandemic.” It added, though, that the introduction of secured lending systems such as it is now proposing for The Bahamas had been shown to increase access to loans by 7 percent. Countries who had made the change also saw a reduction of 3 percent on interest rates paid on loans, and an increase in the maturity of bank loans by six months. Turning to the analysis performed on its behalf by a consultant, the Central Bank said of the findings: “The existing legal framework is incomplete and fails to address all the principles highlighted by best practices, including important rules for the operation of modern lending products, such as receivables financing and acquisition finance.
“Currently, the rules required to structure effective receivables’ financing do not exist under The Bahamas’ legal framework, limiting the capacity of SMEs to access immediate finance using their accounts receivable as collateral. As such, creditors rely on high collateral requirements, mainly immovable property, and lack the incentive to create new lending products secured with movable property.” Pointing out that The Bahamas’ existing legal regime was fragmented, with multiple laws dealing with secured lending, the Central Bank said the review also showed much legislation was “old and fails to address the needs of modern markets”. The reliance on common law, as opposed to statute, also increased the security risk. “The existing laws are limited in scope and give advantages to certain creditors over others,” it added. “For example, even though companies may enter transactions electronically, secured transactions are expressly excluded because they are usually recorded in the Deeds and Documents section of the Registrar General’s Department which does not have the capability to process electronic data. “A review of the laws that govern electronic transactions in The Bahamas indicates that the existing framework is generally adequate to enable the implementation of an electronic Collateral Registry. There are, however, certain shortcomings derived from the need to register secured transactions in the Registry, such as the impediment to execute secured transactions electronically.” Going through the Bahamian judicial system to enforce liens and loan security is viewed as expensive and time-consuming, and the Central Bank said: “The system for registering documents at the Registry is obsolete, expensive and does not provide the transparency required to eliminate secret liens. “Similarly, the rules governing priorities fail to address business transactions involving movable property. The current framework recognises the general rule of ‘first in time to register’ but does not address important exceptions that serve to promote credit to sectors and the funding of specific types of assets - acquisition finance, buyers in the ordinary course of business, agricultural financing etc.” Unveiling the Bill’s provisions, the Central Bank said the central reform will involve “the establishment of a modern Collateral Registry system and the appointment of a registrar in charge of running the Collateral Registry. The Collateral Registry system would operate using a webbased electronic database and most functions would be performed automatically. “Therefore the registrar would be tasked with maintaining and ensuring the adequate operations of the Collateral Registry with minimum intervention. Secured creditors, and their agents, will have access through the registry’s website 24/7 to search the database and register notices of security interests in real-time. This will allow persons conducting searches to find the information on security interests in real-time, eliminating invisibility periods and increasing transparency.”
THE TRIBUNE
Monday, July 4, 2022, PAGE 7
GOV’T TURNS DOWN GINN BID AND PLAN FROM PAGE ONE
programme”, which is a tool commonly used by developers to entice high net worth individuals to be the first persons to buy real estate in a new project. The Reunion Cay Facebook page spoke of “a limited investment opportunity that secures the first right to property selection” in relation to its Founders programme. It is unclear why the Government turned down Kingwood’s purchase, and its initial development plans, but the latest marketing activity suggests the developer may not have given up on its West End ambitions and that its plans may come back in a revised format. However, Tribune Business was told that the Government’s stance may pave the way for other potential buyers to emerge, with several said to have been waiting for the verdict on Kingwood’s bid before making their move. Jeff Woolson, of the US-based CBRE real estate firm, who is leading efforts to secure a purchaser for the former Ginn sur mer project, did not respond to this newspaper’s phone calls and messages seeking comment before press time. One source, though, said of Kingwood’s activities: “They are out there, promoting sales of the property. How can you be doing this and haven’t closed? The history of this West End property has been one of a complete mess up. If there’s a case study of what we have to avoid, this is it. “You have an asset there that requires a lot of maintenance and that is just not happening. The infrastructure, that is just sitting there, and hurricanes sure don’t help. A lot of people are afraid of West End. The bottom line is we need to get it sorted out. We need it to happen.” Tribune Business reported last December that Kingwood International Resorts, which owns two properties in Florida and another two in Georgia, was working to raise the necessary financing after signing a sales agreement for Ginn sur mer’s purchase and paying the deposit customary in all real estate-based transactions. Details were revealed in a letter sent out to condominium owners at the Old Bahama Bay resort, which would have been involved in - and impacted by - a successful Kingwood acquisition of the former Ginn project components held now held by Lubert Adler, the Philadelphia-based investment bank that was its financing partner and provided West End’s seed capital. Confirming that Kingwood has Lubert Adler’s West End assets “under contract”, and was hoping to complete the purchase in “the first part of 2022” once its due diligence was completed, representatives of the condo owners referred to two meetings with the potential buyer and its executives. “On June 17, members of the IVRC board met with representatives of Kingwood International Resorts and their principal, Farbod ‘Fred’ Zohouri, at Kingwood’s recently acquired Reunion Resort in the Orlando/Kissimmee area,” the update said. “Kingwood and LRAOBB (Lubert-Adler-Old Bahama Bay) advised that Kingwood had the Lubert Adler West End property under contract, and were in the process of their due diligence review of the site. Recall that LRA-OBB owns the common areas around the Old Bahama Bay condominiums, the pool, beach, marina, shops, restaurants undeveloped golf course, and much of the property previously owned by the Ginn company. “Kingwood has plans for a large casino, resort hotel,
mega yacht marina, golf course and for-sale residential products on the Lubert Adler property. The name of their planned resort is Reunion Cay...... Due diligence review by Kingwood is still underway and their stated goal is to have a closing with Lubert Adler the first part of 2022.” IVRC stands for Island Ventures Resort and Club (IVRC), the entity formed by Old Bahama Bay’s 73 condo owners to keep the Grand Bahama resort open following Ginn’s 2011 default. It has been operating Old Bahama Bay’s marina, retail and restaurant facilities, and other amenities, under the terms of a June 2012 lease with Lubert Adler. Attached to the letter were plans for the tower, to be called The Lighthouse, which was to stand almost 400 feet high and feature “a five-star luxury hotel” with 102 rooms; 40 two-bedroom condominiums and penthouse suites on the top four floors, according to Kingwood documents. The Ginn sur mer project, and West End in general, have been at a standstill for more than a decade since the original developer, Bobby Ginn and his Ginn Clubs & Resorts, defaulted on their project financing in 2011 in the wake of the 2008-2009 recession. Efforts to find a new developer have resulted in several misses. Skyline Investments, a Toronto-based real estate investor/developer listed on the Israeli stock exchange, with $500m in assets and a focus on hotel and resort development, broke cover to unveil its plans for the 2,012-acre property in the early years of the Minnis administration although no deal ever ultimately materialised. Tribune Business sources previously suggested that resolving West End’s fate has the added complication of dealing with two vendors. What would have been the core project is owned by Lubert-Adler, which holds 280 acres that were earmarked as the site for the hotels and casino. Its landholdings also include key amenities such as the airport, marina and utilities. Kingwood acquired Ginn’s former Reunion property in Orlando from Lubert Adler, which gave the latter confidence it may be able to take West End off its hands, too. But a Credit Suisse-led lending syndicate took possession of the remaining 1,476 acres at the former Ginn sur mer project after Ginn Development Company defaulted on its $276m loan. It effectively inherited the real estate component of the Ginn project, and hired Replay Resorts to master plan that property. Lubert Adler and Credit Suisse have, though, worked together in the belief this is the best way to maximise their exit price - and potential recovery - by selling the former Ginn sur mer as one. It is unclear, though, if Kingwood was to acquire both pieces. Hundreds of millions of dollars were invested in developing West End’s infrastructure prior to Ginn’s collapse, so any purchaser will inherit a foundation on which to build. Tribune Business understood this amounted to $200m in infrastructure spend, but was told by a source familiar with the project that the actual spend was closer to $523m. They added that the former Ginn project’s core, featuring amenities such as the casino and marina, has to be developed all at once rather than in phases - something that will cost at least $200m-plus. And they suggested that “the money in that project” is to be made from the marina, which has the ability - at full build-out - to host up to 35 350-400 foot mega yachts at any one time.
PAGE 8, Monday, July 4, 2022
THE TRIBUNE
‘NO BAHAMAS SLOWDOWN’ FROM CRYPTO WINTER FREEZE FROM PAGE ONE
“They will want to be in jurisdictions with a well thought-out and robust regulatory framework, particularly as they are seeking to court institutional investors.” Other Bahamian financial services providers also confirmed that the valuation crash appears not to disrupting this jurisdiction’s digital asset plans as they, too, have seen no slowdown in interest from entities wanting to either establish physical operations here or conduct business from, or with, the country. Accountant John Bain, who previously told Tribune Business that The Bahamas’ entry into the digital assets space prompted him to reunite with Philip Galanis under the HLB Galanis name some ten years after they went their separate ways, said he had witnessed no slowdown in such inquiries with crypto players viewing the current turbulence as a temporary
corrective cycle that all markets go through. “I don’t see any interruption from my perspective,” he said. “I know there’s talk about a crypto winter and reduction in valuations, but there’s still inquiries from people wanting to do business and set up here, and wanting to find out how to establish themselves here. “I think the people involved in the crypto industry see the so-called crypto winter as a temporary thing. They don’t see it being long-term or permanent. They are planning for the long-haul. There will be dips. I still see The Bahamas as being a place of interest for crypto inquiries. “Yes, we see the crypto winter, but that has not stopped people from calling me, e-mailing me, about operating in The Bahamas, the regulations and the requirements for setting up in The Bahamas. They’re all bullish. The people involved in it see it as a dip and, like the stock market
goes down, they don’t see this as terminal.” However, Kendrick Christie, the Crowe (Bahamas) accountant, told Tribune Business that he had seen digital assetsrelated inquiries “start to level off” and “certainly slow down” with market participants electing to adopt a “wait and see” attitude as a result of the recent plunge in crypto-related valuations. Suggesting that The Bahamas cannot rely on the digital assets space as a solitary cure for all that ails its economy and financial services industry, he nevertheless backed efforts to make inroads into this niche given that the country needs “beef up” its financial services industry - the second largest contributor to gross domestic product (GDP) behind tourism following two decades of attritional decline due to ‘blacklistings’ and other regulatory pressures.
All three spoke out after a crypto market crash that resulted in Bitcoin, the oldest such currency, falling below the $20,000 mark at one point last month – a level well below its peak of nearly $69,000, which it reached in November 2021. Collectively, the fall has wiped some $2trn from the crypto market’s total value. The total value of all cryptocurrencies is about $1tn currently, with Bitcoin accounting for about 40 percent of the total. The decline has coincided with problems for the world economy, including the post-COVID fall-out and supply chain woes, surging global inflation and the war in Ukraine. Central bank interest rate increases have also made these investments much riskier. The Bahamas, though, is continuing to strengthen its supervisory regime for digital assets. Michael Halkitis, minister of economic affairs, last addressing a London-based event to
market the Bahamian financial services sector, affirmed that this nation has begun the process of reforming its Digital Assets and Registered Exchanges (DARE) Act and other legislation to ensure regulation keeps pace with emerging trends in this niche. “Investors in The Bahamas can be assured that we will never rest on our laurels. We are always scanning the horizon for opportunities to strengthen existing offerings and tap into emerging niches,” the minister said. “This is why leaders in the Fintech (financial technology) industry are now making moves to establish a foothold in The Bahamas. “In our Digital Assets and Registered Exchanges legislation, we have a
world-leading regime for the regulation and facilitation of the exchange of digital assets, digital payments, digital ledger technologies and the sale of digital assets. Our financial services sector has now been launched into a digital landscape that will open the door to a range of new service offerings as the world continues to embrace the Fintech revolution. “True to our reputation for measured innovation, we have already begun the process of drafting amendments to the existing legislation in recognition of emerging trends, such as stable coins, non-fungible tokens (NFTs) and provisions for greater consumer protections in decentralised finance.”
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, Latisa Neely of Cowpen Road, Nassau, Bahamas, the parent of LATERRO RAHEEM NEELY intend to change my child name to LATERRO RAHEEM YOUNG. 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, New Providence, Bahamas no later than thirty (30) days after the date of publication of this notice.
MARKET REPORT www.bisxbahamas.com
FRIDAY, 01 JULY 2022
BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 53.00 2.47 2.61 2.60 6.10 10.05 4.15 9.90 3.63 8.00 17.50 2.65 10.75 11.25 10.85 17.26 4.00 11.00 16.50
52WK LOW 5.30 33.80 1.60 2.20 1.30 5.75 6.96 2.82 4.75 2.27 5.95 9.80 1.99 7.05 10.02 10.00 13.10 3.50 8.20 15.50
SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank (Bahamas) Limited Focol Finco J. S. Johnson
PREFERENCE SHARES 1.00
1.00
1000.00 1000.00
1000.00 1000.00
1.00 10.00 1.00
1.00 10.00 1.00
Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 9 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00
52WK LOW 100.00 100.00
SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited
CLOSE
CHANGE
%CHANGE
YTD
YTD%
2588.57
4.44
0.17
360.33
16.17
SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB9 CHLA FBBA FCLB SYMBOL FBB22 BFHB
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.33 100.00 100.67 100.43 100.34 100.23 100.00 100.00 100.98 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 96.71 94.12 100.67 100.43 100.04 100.00 89.62 89.00 90.24 90.73
MUTUAL FUNDS 52WK HI 2.52 4.69 2.22 207.86 212.41 1.74 1.84 1.83 1.03 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89
52WK LOW 2.11 3.30 1.68 164.74 116.70 1.69 1.75 1.76 0.97 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR109036 BGRS FX BGR118037 BGRS FL BGRS71024 BGRS FL BGRS75022 BGRS FL BGRS81037 BGRS FL BGRS88028 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150
BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1090368 BSBGR1180375 BSBGRS710245 BSBGRS750225 BSBGRS810375 BSBGRS880287 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504
LAST CLOSE 5.90 39.95 2.44 2.35 2.51 6.10 9.75 3.95 9.00 3.60 8.00 16.00 2.90 10.26 11.46 10.85 17.26 3.98 10.00 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.15 100.00 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00
CLOSE 5.90 39.95 2.44 2.35 2.51 6.10 9.75 3.95 9.33 3.60 8.00 16.00 2.98 10.26 11.42 10.85 17.26 3.98 10.10 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00
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
4,500
300
0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00
CHANGE 0.00 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 97.15 100.00 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00
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 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 Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F
MARKET TERMS
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00 0.08 0.00 (0.04) 0.00 0.00 0.00 0.10 0.00
(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000
VOLUME
DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000
INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.40% 5.22% 4.56% 4.43% 4.87% 4.33% 5.55% 5.60% 5.65% 5.69%
NAV 2.52 4.69 2.21 197.44 202.39 1.74 1.84 1.83 0.97 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89
YTD% 12 MTH% 0.99% 4.22% 0.36% 5.78% 0.67% 2.74% -2.97% -2.35% -4.72% 6.04% 1.37% 3.03% 1.19% 5.23% 1.62% 4.13% -5.25% -6.07% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%
P/E 24.7 42.9 N/M 16.8 N/M N/M 26.4 -9.0 66.6 19.6 17.8 22.2 29.2 22.0 17.7 14.9 21.2 19.6 10.8 24.6 0.000 0.000 0.000 0.000 0.000 0.000
YIELD 2.88% 3.15% 0.82% 3.40% 0.00% 0.00% 2.67% 0.00% 0.00% 3.33% 2.75% 4.50% 14.56% 0.58% 2.87% 2.21% 3.13% 3.02% 1.98% 3.94% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%
MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 3-Oct-2036 13-Oct-2037 22-Oct-2024 7-Sep-2022 26-Jul-2037 26-Jul-2028 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050
NAV Date 31-Mar-2022 31-Mar-2022 25-Mar-2022 31-Mar-2022 31-Mar-2022 31-May-2022 31-May-2022 31-May-2022 31-May-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021
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 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
NOTICE
NOTICE is hereby given that DANIEL FRIAS of Pinewood Gardens, New Providence, 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 27th day of June, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that ZADIA TANESHA MCLEAN of #5 St Albans Drive, P.O. Box N-7509, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of July, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau,
NOTICE
NOTICE is hereby given that DEMARI NATHANIEL DAVIS of #5 St Albans Drive, P.O. Box N-7509, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 4th day of July, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
PAGE 10, Monday, July 4, 2022
THE TRIBUNE
RETAILERS: WE WANTED ‘BROADER’ BUDGET CUTS FROM PAGE ONE such as expanding home ownership. Ms Morley, while acknowledging the difficult and complex choices faced by the Government, told this newspaper of prevailing tariff rates and the 2022-2023 Budget: “Unfortunately it was not as broad-reaching as we would have liked. The thing is, at the end of the day, if people shop abroad instead of here, smuggling items in their suitcases or however they bring them in,10 percent of something is better than 45 percent of nothing. “It just acts as such a deterrent when things are much more expensive here than they are abroad. Anything we can do to bring down prices locally
encourages consumers to shop at home, and we get more VAT out of it. It reduces the cost to retailers, and reduces the cost of operating a business, and encourages growth with potentially more people getting into the retail industry as it reduces overheads so substantially. “It helps with the cost of business,” she added. “You pay taxes when you make a sale versus paying duty, which you do not necessarily recover, at the border. It’s a continual discussion. It’s absolutely something we’re looking for. It’s absolutely something retailers are looking for. “I appreciate that the Government has some hard decisions to make with the Budget. When you take it [taxes] away, you have to
get it from somewhere else. I do think that by encouraging more sales, the volume of sales at home, we are just broadening the tax base.” Ms Morley, who voiced hope that the Government will consider tariff cuts for product categories not touched this time in future Budget preparations, argued that high duty rates - which deter local sales in favour of foreign purchases in Florida and elsewhere generate little revenue gain for the Public Treasury. Her belief is that cutting tariffs, and encouraging local sales, will aid the private sector while generating taxes that the Government currently does not collect. Among those product categories where retailers pushed for tariff cuts in 2022-2023 were
still going up with the cost of inflation,” she added. “It’s unavoidable here, and same story in the rest of the world. Unfortunately The Bahamas is getting hit harder than other parts of the world because we have to ship everything in. “It’s a knock-on effect when you live on an island. The higher gas prices at the pump are concerning for everybody globally. The Europeans are screaming about it, the Americans are screaming about it and Bahamians are screaming about it. It’s going to be a tough period for sure... “It’s a really crazy time to be trying to run a business. It’s hard to manage the timeline. We’re still getting shipments that were due from November. It’s hard to plan for your seasonal upticks in business and makes it more difficult to manage cash flow. You
furniture and gift wares, as many home goods are priced very highly. “Also there’s a lot of things in beauty,” Ms Morley said. “The Bahamas is making zero dollars off it because everybody is wanting to buy abroad instead of at home because it is twice the price here with 45 percent import duty. “I don’t blame the consumer. It’s just this is really the type of thing we need to look at when we’re making government tax policy - how much we are losing when we have such a high tax rate on certain products.” Meanwhile, the Federation co-chair said supply chain backlogs and inflation continue to take a toll on all businesses with little sign of easing in sight. “Prices are
THE WEATHER REPORT
5-Day Forecast
TODAY
ORLANDO
High: 91° F/33° C Low: 75° F/24° C
TAMPA
WEDNESDAY
THURSDAY
FRIDAY
An afternoon thunder‑ storm
Patchy clouds with a t‑storm or two
Cloudy and breezy with a t‑storm
A stray t‑storm; breezy in the a.m.
Breezy with sun and some clouds
A t‑storm in spots in the morning
High: 87°
Low: 79°
High: 89° Low: 79°
High: 87° Low: 79°
High: 88° Low: 77°
High: 87° Low: 79°
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
AccuWeather RealFeel
97° F
86° F
96°-86° F
97°-86° F
97°-84° F
97°-86° F
The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.
almanac
E
W
ABACO
S
N
High: 82° F/28° C Low: 80° F/27° C
8‑16 knots
S
High: 90° F/32° C Low: 80° F/27° C
8‑16 knots
FT. LAUDERDALE
FREEPORT
High: 90° F/32° C Low: 81° F/27° C
E S
E
W
WEST PALM BEACH
W
uV inDex toDay
TUESDAY
N
N
| Go to AccuWeather.com
TONIGHT
High: 92° F/33° C Low: 79° F/26° C
High: 88° F/31° C Low: 78° F/26° C
MIAMI
High: 91° F/33° C Low: 80° F/27° C
8‑16 knots
KEY WEST
High: 89° F/32° C Low: 81° F/27° C
ELEUTHERA
NASSAU
High: 87° F/31° C Low: 79° F/26° C
Forecasts and graphics provided by AccuWeather, Inc. ©2022
N
The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.
tiDes For nassau Low
Ht.(ft.)
Today
12:12 p.m. ‑‑‑‑‑
High
Ht.(ft.) 2.3 ‑‑‑‑‑
6:15 a.m. 6:12 p.m.
0.5 0.7
Tuesday
12:24 a.m. 12:59 p.m.
2.7 2.4
6:54 a.m. 7:03 p.m.
0.5 0.8
Wednesday 1:09 a.m. 1:50 p.m.
2.6 2.5
7:37 a.m. 8:00 p.m.
0.4 0.8
Thursday
1:59 a.m. 2:45 p.m.
2.5 2.7
8:24 a.m. 9:02 p.m.
0.3 0.8
Friday
2:54 a.m. 3:43 p.m.
2.5 2.9
9:15 a.m. 0.2 10:07 p.m. 0.6
Saturday
3:54 a.m. 4:42 p.m.
2.4 3.1
10:10 a.m. 0.0 11:10 p.m. 0.4
Sunday
4:54 a.m. 5:40 p.m.
2.5 3.3
11:06 a.m. ‑0.1 ‑‑‑‑‑ ‑‑‑‑‑
sun anD moon Sunrise Sunset
6:25 a.m. 8:04 p.m.
Moonrise Moonset
11:06 a.m. none
First
Full
Last
New
Jul. 6
Jul. 13
Jul. 20
Jul. 28
CAT ISLAND
E
W
High: 87° F/31° C Low: 79° F/26° C
N
S
E
W
8‑16 knots
S
10‑20 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 86° F/30° C Low .................................................... 81° F/27° C Normal high ....................................... 88° F/31° C Normal low ........................................ 75° F/24° C Last year’s high ................................. 93° F/34° C Last year’s low ................................... 73° F/23° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ............................................... 27.98” Normal year to date ................................... 14.25”
High: 86° F/30° C Low: 79° F/26° C
cannot rely on the supply chain to deliver in a timely manner, not to mention the loss of sales because you have no inventory as it did not get in on time,” Ms Morley continued. “It just seems to be certain categories of items that have an issue with the production. It’s all over the board. It’s definitely going to get worse before it gets better because we’re hearing predictions of a recession, and when the US gets a cold The Bahamas catches pneumonia. “There’s just a lot of uncertainty. It’s hard to plan. I’m coming to the end of the buying period for the festive period, November to December, and have no clue what it will look like in six months. Usually I can gauge where the economy is going but the fact it’s topsy turvy makes it so unpredictable these days.”
ANDROS
SAN SALVADOR
GREAT EXUMA
High: 86° F/30° C Low: 78° F/26° C
High: 85° F/29° C Low: 80° F/27° C
N
High: 86° F/30° C Low: 77° F/25° C
E
W S
LONG ISLAND
tracking map
High: 86° F/30° C Low: 79° F/26° C
10‑20 knots
MAYAGUANA High: 88° F/31° C Low: 81° F/27° C
Shown is today’s weather. Temperatures are today’s highs and
CROOKED ISLAND / ACKLINS
tonight’s lows.
RAGGED ISLAND High: 86° F/30° C Low: 80° F/27° C
High: 86° F/30° C Low: 79° F/26° C
GREAT INAGUA High: 87° F/31° C Low: 80° F/27° C
N E
W
N E
W
S
S
8‑16 knots
12‑25 knots
marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR
Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday:
WINDS E at 8‑16 Knots ESE at 8‑16 Knots E at 8‑16 Knots ESE at 10‑20 Knots ESE at 12‑25 Knots ESE at 10‑20 Knots ESE at 12‑25 Knots E at 12‑25 Knots ESE at 10‑20 Knots ESE at 8‑16 Knots E at 7‑14 Knots ESE at 8‑16 Knots SE at 10‑20 Knots ESE at 10‑20 Knots SE at 12‑25 Knots E at 10‑20 Knots ESE at 10‑20 Knots E at 10‑20 Knots ESE at 12‑25 Knots E at 10‑20 Knots ESE at 10‑20 Knots ESE at 10‑20 Knots SE at 8‑16 Knots E at 12‑25 Knots SE at 10‑20 Knots ESE at 10‑20 Knots
WAVES 3‑5 Feet 3‑5 Feet 1‑2 Feet 1‑2 Feet 3‑6 Feet 3‑5 Feet 3‑5 Feet 3‑5 Feet 3‑6 Feet 3‑5 Feet 1‑2 Feet 1‑3 Feet 1‑2 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 3‑5 Feet 2‑4 Feet 4‑7 Feet 3‑6 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 3‑5 Feet 2‑4 Feet 1‑3 Feet
VISIBILITY 10 Miles 10 Miles 10 Miles 5 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 3 Miles 10 Miles 10 Miles 5 Miles 6 Miles 4 Miles 10 Miles 10 Miles 4 Miles 6 Miles 7 Miles 10 Miles 6 Miles
WATER TEMPS. 83° F 83° F 85° F 85° F 83° F 83° F 83° F 83° F 83° F 83° F 84° F 84° F 84° F 83° F 83° F 83° F 83° F 83° F 83° F 83° F 84° F 83° F 83° F 84° F 83° F 83° F
THE TRIBUNE
Monday, July 4, 2022, PAGE 11
WALL STREET CLOSES HIGHER BUT STILL ENDS WEEK IN THE RED By DAMIAN J. TROISE AND ALEX VEIGA AP Business Writers
Stocks on Wall Street shook off a downbeat start and ended broadly higher Friday, though the rebound was not enough to erase their losses for the week. The S&P 500 rose 1.1% after having been down 0.9% in the early going. The gain snapped a fourday losing streak for the benchmark index, which still posted its fourth losing week in the last five. The Dow Jones Industrial Average rose 1%, while the tech-heavy Nasdaq gained 0.9% after a sell-off in technology stocks eased. The latest choppy trading comes a day after the S&P 500 closed out its worst quarter since the onset of the pandemic in early 2020. Its performance in the first half of 2022 was the worst since the first six months of 1970. The S&P 500 has been in a bear market since last month, meaning an extended decline of 20% or more from its most recent peak. It’s now down 20.2%
from the peak it set at the beginning of this year. Bond yields fell significantly. The yield on the 10-year Treasury, which helps set mortgage rates, fell to 2.89% from 2.97% Thursday. The yield on the 2-year Treasury slipped to 2.83% from 2.92%. The market’s deep slump this year reflects investors’ anxiety over surging inflation and the possibility that higher interest rates could bring on a recession. “What we’re seeing today is reflective of really what we’re going to see here in July, which is continued pressure on the markets, unless we see outsized economic reports on jobs or inflation, or some more meaningful change in Fed policy,” said Greg Bassuk, CEO at AXS Investments. The S&P 500 rose 39.95 to 3,825.33. Roughly 85% of the stocks in the index finished higher. The Dow gained 321.83 points to 31,097.26, while the Nasdaq rose 99.11 points to 11,127.85. The Russell 2000 index of smaller companies rose
19.77 points, or 1.2%, to 1,727.76. The market’s latest gyrations precede a long holiday weekend. Financial markets in the U.S. will be closed on Monday for Independence Day. Wall Street remains concerned about the risk of a recession as economic growth slows and the Federal Reserve aggressively hikes interest rates. The Fed is raising rates to purposefully slow economic growth to help cool inflation, but could potentially go too far and bring on a recession. Economic data over the last few weeks has shown that inflation remains hot and the economy is slowing. The latter has raised hopes on Wall Street that the Fed will eventually ease off its aggressive push to raise rates, which have been weighing on stocks, especially pricier sectors like technology. Analysts don’t expect much of a rally for stocks until there are solid signs that inflation is cooling. The latest economic update on Friday for the manufacturing sector shows
TRADERS work on the floor at the New York Stock Exchange in New York, Friday, July 1, 2022. Stocks are off to a weak start on Friday, continuing a dismal streak that pushed Wall Street into a bear market last month as traders worry that inflation will be tough to beat and that a recession could be on the way as well. Photo:Seth Wenig/AP
a continued slowdown in growth in June that was sharper than economists expected. On Thursday, a report showed that a measure of inflation that is closely tracked by the Fed rose 6.3% in May from a year earlier, unchanged from its level in April. Earlier this week, a worrisome report showed that consumer confidence slipped to its lowest level in
16 months. The government has also reported that the U.S. economy shrank at an annual rate of 1.6% in the first quarter and weak consumer spending was a key part of that contraction. Kohl’s dove 19.6% after the department store’s potential sale fell apart amid the shaky retail environment as consumers lose confidence and cut spending. Kohl’s had entered
exclusive talks with Franchise Group, the owner of Vitamin Shop and other retail outlets, for a deal that was potentially worth about $8 billion. Other retailers, restaurant chains and companies that rely on direct consumer spending helped lead the market rally. Amazon rose 3.2%, Home Depot gained 1.8% and Starbucks rose 3.8%.
PAGE 12, Monday, July 4, 2022
THE TRIBUNE
TESLA’S 2Q SALES DROP AMID SUPPLY CHAIN, PANDEMIC PROBLEMS By TOM KRISHER AP Auto Writer DETROIT (AP) — Tesla’s sales from April through June fell to their lowest quarterly level since last fall as supply chain issues and pandemic
restrictions in China hobbled production of its electric vehicles. The company on Saturday disclosed it sold more than 254,000 cars and SUVs from April through June, an 18% drop from the first three months of this
year and also well below the pace in last year’s final quarter. The last time Tesla sold fewer vehicles globally was in the third quarter of 2021 when it delivered 241,000. On Friday, the rest of the industry reported a
21% drop in sales during the second quarter as the average price for vehicles skyrocketed to a record of $45,844 amid soaring inflation, according to J.D. Power. Tesla’s sales drop may be a harbinger of weaker
second-quarter earnings for the Austin, Texas, company, which is the world’s topseller of battery-powered vehicles and has posted net profits for nearly three years. Tesla plans to release its full results for the AprilJune period on July 20. Like many other stocks, Tesla shares have been hard hit this year. But the 35% decline in Tesla’s stock price hasn’t been entirely tied to the company’s seesawing fortunes. Tesla CEO Elon Musk also has made a $44 billion bid for Twitter, which he placed on hold after complaining that it has too many spam bot users who aren’t humans. Much of the erosion in Tesla’s value has occurred since Musk became Twitter’s largest shareholder and then launched a takeover bid that has raised concerns he has too much on his already crowded plate Musk has used his own Twitter account, which now has more than 100 million followers, to discuss the pandemic restrictions that forced the Shanghai factory to temporarily close during the quarter. Wedbush analyst Dan Ives estimates that more than 40% of Tesla’s sales come from China, and that the Shanghai factory
produced about 70,000 fewer vehicles due to the shutdowns. But Tesla signaled things are getting better Saturday, saying it produced more vehicles during June than in any other month in its history. The company didn’t disclose the number of vehicles manufactured during June. As of early Saturday afternoon, Musk hadn’t tweeted about Tesla’s second-quarter sales. But he created a bit of a stir late Friday with ending an uncharacteristically long nine-day silence on Twitter. His Friday tweets included one with him and four his children meeting with Pope Francis. Tesla’s latest delivery numbers came out a week after the release of an interview with Musk in which he described new factories in Austin and Berlin as “money furnaces” that were losing billions of dollars because supply chain breakdowns were limiting the number of cars they can produce. In a May 30 interview with a Tesla owners’ club that was just released last week, Musk said that getting the Berlin and Austin plants functional “are overwhelmingly our concerns.
IN this April 26, 2020 photo, the company logo shines off the rear deck of an unsold 2020 Model X at a Tesla dealership in Littleton, Colo. Tesla’s sales from April through June 2022 fell to their lowest quarterly level since last fall as supply chain issues and pandemic restrictions in China hobbled production of its electric vehicles. Photo:David Zalubowski/AP