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WEDNESDAY, AUGUST 15, 2018
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Moody’s still has the blues despite growth forecast By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
M
OODY’s said yesterday strengthening in The Bahamas’ tourism sector and continued foreign direct investment (FDI) projects will help sustain growth in the range of 1.5 to two percent over 2018-2019. Despite this the credit ratings agency - in its updated credit opinion on this nation yesterday maintained the country’s Baa3 credit rating with a negative outlook. This outlook, it said, “reflects potential downside risks to the fiscal consolidation process posed by weaker-than-expected growth, exposure to climate-related shocks in the form of hurricanes, and implementation risks associated with measures to rein in expenditure growth and increase revenue intake”. Moody’s’ warned that absent successful fiscal consolidation, The Bahamas’ fiscal and credit profile
MINISTER OF FINANCE K PETER TURNQUEST
PRIME MINISTER DR HUBERT MINNIS
would likely weaken. “In addition, the sovereign is exposed to contingent liabilities stemming from state-owned enterprises (SOEs) and the Bank of The Bahamas, which, should they materialise on the government’s balance sheet, would lead to a further deterioration in the government’s fiscal strength,” said Moody’s. It warned it would downgrade the rating if, over the next 12-18 months, it observes that government’s
fiscal consolidation efforts are “unlikely to reduce deficits to levels that would reverse the trend of rising debt ratios and lead to a stabilisation in government debt metrics”. “Downward rating pressure would also emerge if economic growth were to underperform relative to government expectations, negatively impacting revenue and overall fiscal metrics. We would also consider a downgrade if contingent liabilities
stemming from Bank of The Bahamas – or other SOEs – materialise on the sovereign’s balance sheet, leading to a material worsening of government debt metrics. “Factors that could lead to an upgrade We would change the negative outlook to stable if the government’s efforts to reduce the fiscal deficit lead to the reversal of the debt trend such that The Bahamas’ fiscal strength and policy effectiveness would be consistent with a Baa3 rating. Evidence that measures implemented to rein in expenditures and enhance fiscal policy controls would remain in place over the coming years, ensuring greater fiscal discipline and providing the government with more fiscal space to face shocks, would also support the stabilisation of the outlook,” the ratings agency said. In response to Moody’s announcement Finance Minister K Peter Turnquest said: “The ratings
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Ready or not - Sept 1 deadline for new gaming taxes By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THE twin five percent levies on customer deposits and over-the-counter (OTC) lottery sales will take effect on September 1, Tourism Minister Dionisio D’Aguilar, pictured, confirmed yesterday while at the same time acknowledging some gaming houses were still not ready for roll-out. Speaking with reporters ahead of yesterday’s Cabinet meeting, Mr D’Aguilar said: “When we consulted with the gaming houses, they said they were not ready. They were still not ready and we shifted the date to the first of September. “We are trying to accommodate them, they said they simply were not ready to roll it out, they’re close but it would have been a muddled roll out, some of them were ready some of them were not, so we decided in the best interest of keeping everything fair and equal, that we would accommodate those that had not had an opportunity to roll it out to put it to the first of September. I was advised that that was the recommendation
of the Gaming Board to the Ministry of Finance and they agreed.” Gaming house operators have warned the new taxes will discourage many of its patrons from gambling, with FML Group of Companies CEO Craig Flowers suggesting it could lead to a loss of one third of the industry. Once in force, patrons will pay the five percent levies on deposits and over-thecounter (ORTC) lottery sales. Christiansen Capital Advisors, in a study commissioned by The Bahamas Gaming House Operators Association (BGHOA), predicted the taxes would suck between $13.3m and $19.9m annually from the pockets of Bahamian gaming patrons and alter consumer behaviour. The delay in implementing the taxes stem from the need to “re-certify” web shop systems and games.
RBC scam shows direct downside on debit cards By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net A LEADING accountant and fraud expert yesterday urged Bahamians to be aware of the fraud risks associated with debit card usage, noting its duel benefit has been a “blessing and a curse”. Kendrick Christie, a Grant Thornton partner and certified fraud examiner, told Tribune Business that while consumer debit cards once were only ATM cards, most banks operating in The Bahamas have
KENDRICK CHRISTIE turned them into VISAs as well. “This has been a blessing and a curse as it benefits consumers who
SEE PAGE 2
Family Islands need planned airlift strategy By NATARIO MCKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net THIS nation must develop and implement a “sustainable airlift plan” for the Family Islands using Lynden Pindling International Airport (LPIA) as the hub, a tourism executive said yesterday arguing the “opportunity is ripe”. Kerry Fountain, the Bahamas Out Island Promotion Board’s (BOIPB) executive director told Tribune Business: “We must take the necessary action
KERRY FOUNTAIN and not just continue to pay it lip service. We must develop and implement a sustainable airlift plan using LPIA as a hub. Approximately 365,000 empty seats arrive in Nassau every year
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PAGE 2, Wednesday, August 15, 2018
THE TRIBUNE
MOODY’S STILL HAS THE BLUES DESPITE GROWTH FORECAST FROM PAGE ONE agency Moody’s Investors Service in its latest rating assessment of The Bahamas, maintained its Baa3 negative rating, which is unchanged from its previous report. I am pleased to report to the country that this independent assessment reflects stabilisation in our sovereign credit profile following four years of successive rating downgrades. This represents a critical first step in addressing and reversing years of
fiscal mismanagement. “As outlined in the recent budget exercise, the Government’s combination of economic initiatives, including: the introduction of focused fiscal measures; the imminent introduction of fiscal responsibility legislation; moves to stimulate domestic economic growth through support for Bahamian entrepreneurs and small businesses; and the substantial pipeline of major investment within the country will lead to strong and sustained economic growth and a stable
macro-economic trajectory for the country. “The Government of The Bahamas remains committed to executing its economic agenda to stimulate growth, contain expenditure and restore fiscal health to public finances.” Moody’s noted that increases in Value Added Tax (VAT), gaming houses taxes and other levies will have to compensate for the likely reduction in custom duties after the current fiscal year as The Bahamas moves closer to WTO
accession by December 2019. Commenting on the impending fiscal responsibility legislation and fiscal rules expected to be tabled in the fall, Moody’s said government will need to prepare and implement adjustment plans should deviations from the rules happen. “We consider that establishing these rules in law will be an important step towards strengthening the institutional arrangements that guide fiscal policy in The Bahamas. Moreover,
equally important will be the government establishing a track record in terms of the reporting requirements set by the legislation, therefore enhancing transparency, and meeting the targets set in the rule,” said Moody’s. “The economy expanded 1.4 percent in real terms last year – above our expectation of 0.5 percent. Reconstruction efforts following the damage caused by Hurricane Matthew in late 2016 led to a strong contribution to growth by gross
fixed capital formation. “Household and public consumption also contributed to growth, while the large import component of additional domestic demand acted as a drag on the overall GDP expansion. “We expect that the strengthening tourism sector – in part driven by the now full operations of the Baha Mar resort – and continued FDI-related projects will contribute to sustain growth in the 1.5 percent - two percent range in 2018-19,” Moody’s said.
RBC scam shows direct downside on debit cards FROM PAGE ONE
EMPLOYMENT OPPORTUNITY SECURITIES COMMISSION OF THE BAHAMAS The Securities Commission of The Bahamas, a statutory agency responsible for the oversight, supervision and regulation of investment funds, securities and the capital markets, in or from The Bahamas, as well as the supervision of financial and corporate service providers, invites applications from qualified individuals for the following position: MANAGER – EXAMINATIONS DIVISION, Risk Analytics & Examinations Department Manager – Examinations Division will have the responsibility to: Manage the effective onsite monitoring of activities of regulated participants and products of the securities and capital markets, investment funds and financial corporate service providers, pursuant to the Securities Industry Act, 2011, the Investment Funds Act, 2003, the Financial and Corporate Service Providers Act, 2000, and other ancillary legislation Identify strategy and implement action plans necessary to achieve the Commission’s goals Oversee and manage the department’s staff Principal Responsibilities Delegate team projects, foster positive working relationships, be flexible, open-minded and help prevent and resolve conflicts; Keep abreast of financial industry trends, both locally and internationally; and identify and participate in any necessary changes to the legislation or policies to effect the Commission’s mandate; Ensure that the Commission keeps pace with best international compliance standards, appropriate to local market; Plan and co-ordinate field inspections of licensees and registrants of the Commission and various securities, mutual funds and capital markets products offered by market participants; Review reports to licensees and registrants upon completion of field inspections; Manage the preparation of compliance reports and deficiency letters, to licensees and registrants on satisfactory resolution of deficiencies identified in inspection reports; Maintain and promote good working relationships with industry participants; Manage the investigations of regulated and unregulated securities, mutual funds and capital market participants; Conduct regular departmental meetings to address departmental issues; Represent the department at required meetings; Make recommendations and implement processes, policies and procedures to improve existing processes; Prepare recommendations for internal and external training; Prepare regular status reports on the activities of the department; and Ensure efficient use of resources, time management and cost savings. Knowledge/Skills Well-developed analytical thinking and problem solving skills Intellectual curiosity Team player Ability to Manage various skill sets and offer coaching / mentoring Excellent interpersonal skills Superior organization and project management skills Excellent communication skills both written and oral Exhibit concern for careful adherence to established procedures and practices. Exhibit concern for accuracy and detail Offer exemplary service to internal and external customers AML/CFT focused knowledge Qualifications/Experience Qualified Accountant with securities knowledge and experience 10 years of experience in the financial services sector at a supervisory level Minimum Bachelor’s degree in Business (Accounting, Finance etc) Certifications (CPA and/or CFA with audit experience) AML certifications/training Compensation and Benefits Competitive salaries and benefits offered. Contact Information Manager, Human Resources Department Securities Commission of The Bahamas Tel: (242) 397-4100 Fax: (242) 326-4802 E-mail: hrm@scb.gov.bs Deadline for applications: August 24, 2018.
want to limit their debt and reduce their cash on hand, however, it introduces a fraud risk in that the debit card does not have the approval delay that credit cards have and consumers can be out of cash immediately as fraudsters can wipe their account out,” said Mr Christie. “I have had bankers here in The Bahamas admit that this dual benefit to the debit card has created a few problems for their credit card centres and anti-fraud units as some Bahamians are not aware or do not consider the fraud risks of a debit card.” Mr Christie yesterday urged Bahamians to: 1. Limit the cash on hand in the card linked to the debit card and consider two accounts- one linked to the debit card and the other for personal savings.
2. Be careful of the locations you use your debit card at - tyre shops, online purchases, for major purchases – suppose the good is defective? – restaurants, one stop operations - are a no no. 3. Always have sight of your card, if they have to take it away to some back location, this is never good. 4. Be careful of pay pal accounts as someone can obtain your VISA ATM details and link it to a pay pal account. 5. Use only a credit card online, fraud is on the rise and online fraud is vicious with whole bank accounts wiped out. 6. Monitor your account daily - if you spot a transaction late on your debit visa card, you can find it may be difficult to recover the funds. 7. Call your bank credit card centre or notify through the regular means,
this will help them to monitor for unusual activity. Mr Christie’s warning comes after Royal Bank of Canada (RBC) on Monday confirmed some of its Bahamian Visa debit and Visa credit card holders had fallen victim to “skimming”, with some irate customers reporting “thousands of dollars” having been wiped off their accounts. Jacqueline Taggart, RBC’s director of strategic and corporate communications for the Caribbean, responding to Tribune Business inquiries, said: “RBC confirms that we have identified a skimming incident that has victimised a number of our VISA debit and VISA credit cards in The Bahamas in a coordinated and aggressive criminal effort. We are now in the process of contacting clients who have been affected.”
Family Islands need planned airlift strategy
FROM PAGE ONE
or 1,000 every day on average. The opportunity is ripe, with the right partner(s) and some creative thinking to provide more convenient and affordable lift to the out islands that feed into and are fed by the Nassau flights.” Mr Fountain argued that improving airlift to the out islands could boost hotel performance and possibly attract more foreign direct investment.
Mr Fountain noted that in fiscal year July 1 2017 – June 30, 2018 BOIPB member hotels, collectively, realised approximately 12 percent growth in room nights sold over fiscal year 2016 – 2017. Room revenue also showed a seven percent gain. “Comparing the same fiscal year performance, but this time just for the same hotels that were members for the entire fiscal year in 2016/2017 and 2017/2018, the gains in room nights sold were a percentage
point higher in fiscal year 2017/2018 and the gains in room revenue were three percentage points higher,” said Mr Fountain. Mr Fountain said while there continues to be a slight overall growth from one fiscal year to the next, “buoyed’ by the performances of larger hotels and a handful of others located on our more accessible islands, there remains a huge potential for growth in the tourism sector of the out islands.
THE TRIBUNE
Wednesday, August 15, 2018, PAGE 3
App created by North Texas graduate saves stories, memories
DALLAS Associated Press PATTI FITCH never thought to record videos of her mother. The Dallas Morning News reports of course, she knew the stories, about her mother’s Polish heritage or job at AT&T. But she never captured them on camera — to preserve her voice, mannerisms and tales for future generations. Today, Patti’s mother, Irene Skurla, lives at The Village at Mapleshade, an assisted living center in Plano. She’s 85 years old with short white hair and purple glasses. Her days are a routine of meals, activities and TV on a couch. But thanks to an app created in Dallas, on some afternoons, Irene will tell a story. The app is called OneDay. It’s a prompted questionand-answer app — with topics such as childhood, wartime and romantic experiences — that records a video, which is then shared with family members via text or email. “Let’s talk about your ancestors today,” said Lynn Brink, the Vibrant Life Director at Mapleshade, who sat across from Irene on a recent Tuesday afternoon with the app open on her iPad. She asked the first question that popped up on the screen, and pressed record. “Where did your ancestors originate?” Irene smiled and began, talking about a mother from Poland and a father from New York City, in a way only Irene could tell it, a five-minute story that would be captured and emailed to Patti and other loved ones. It’s exactly what the creator of OneDay intended. As a teenager, Clint Lee spent after-school days and holidays helping seniors. His parents owned assisted living homes in McKinney. He’d dress up like the Easter Bunny, buy groceries or mow the front lawn. But many days, he’d just sit and listen, to stories about war, life back in the day or the ones that got away. He realised then that these uncaptured stories were important. But it didn’t hit him personally until he was 23. That’s when his grandfather died, and he and his father, John Boaz, realised they had little video or audio to remember him by.
to select a topic, ask the questions that pop up on screen and press record. When finished, an automated video is created, with high quality audio and music. The video is sent via a private link by text or email to relatives and loved ones. Family members can also view the resident’s videos on their personal OneDay life story page, and even submit questions or topics of their own. The app costs $150 to $250 per month depending on
the size of the senior living community. Lee said there are plans for expansion to different markets, as well as possible consumer use in the near future. “The meaning behind OneDay is we tell your story, one day at a time, for your kids to one day have,” Lee said. “I feel like if I knew my grandpa and great-grandpa’s story, and the ins and outs of them as men and what made them great husbands and what their struggles were, I
would have a better connection to them. Overall, I’d be a better man. A better husband. A better father. “These stories are so rich and experienced that we can all learn from them.” Irene sat on the couch across from Brink with a microphone hooked to the lapel of her shirt. She stared at the iPad as it recorded a story about her heritage. Her story started with her mother, who arrived at Ellis Island in the lower deck of a ship from Poland.
NOTICE
IRENE Skurla (top) and Bob Stiegler (bottom) is interviewed by Vibrant Life Director Lynn Brink using the OneDay app for senior citizens at The Village at Mapleshade an assisted living centre in Plano, Texas. The app allows staff members to interview residents, then send the videos to residents’ family members. Photos: Ashley Landis/AP “We had lost his voice,” Lee said. “The way he would say things.” So the University of North Texas graduate set out to find a solution for other families. Six years ago, he created and co-founded a technology company with his father called OneDay with a goal to preserve stories. Since then, there have been multiple incarnations of the company, but last January, OneDay rebranded to focus solely on older generations. The app is exclusively licensed to senior living communities.
Today, OneDay is in 1,000 locations across the US, Canada and the United Kingdom. For now, individuals can’t buy the app. “The senior citizen population is growing every day, and their stories are disappearing at an alarming rate,” Lee, 32, said. “We’ve got to have a sense of urgency, because once these stories are gone, they’re gone forever.” The app, which is compatible with iOS platforms and will soon be on Android, is easy to use. Senior living facility members simply need
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Maritime Chief Engineer Duties: Improve performance and efficiency of engine room work team. To ensure smooth communication between inter- department. Arranging preparing and recording of machinery survey. Ensure proper operation of safety equipment’s and its certificate still valid. Planning maintenance check list to ensure machinery are properly maintained and reduced the risk of sudden break down of plant operation. Check list should record machinery description, date of service, part changed and remarks etc. Ensure proper entry of engine room log book and oil record book. To ensure sufficient stock are reserved (bunker, fuel oil, diesel oil, main engine lube oil, cylinder oil, other lube oils and chemicals) in case of any unpredictable situations (e.g. heavy sea, storm, engine breakdown at sea, delay of voyage, unavailable of port bunker service etc.) Writing of report to company e.g. voyage report, monthly main engine performance report and ad hoe report. Requirements; High School Diploma 2 years as engineer of a similar vessel 3 years as a deckhand on a similar sized vessel. Current First Aid and CPR cards. Clean vessel safety record. Familiarity with pollution abatement procedures. Familiarity with regulations that apply to the vessel being applied for. You must be proficient in any software associated with engineering You must be educated to degree level and hold any other qualifications associated with Maritime engineering. Supervise engine room personnel and give advice as required. Certifications Class 1 Certificate of Competency – Marine Chief Engineer. Survival Craft and Rescue Certificate Advanced Firefighting Certificate Electrical/Electronic and control engineering repair/maintenance Certificate Ship Security Certificate Basic Seafarer Training Certificate Control ship operations and care Certificate Proficient in all aspects of caterpillar engines P.O. Box N-7235 Telephone: (242) 322-7982/ (242) 322-7983 Fax: (242) 322-7984 671 East Bay Street Nassau, Bahamas Email: tugservice(s)limited@gmail.com
IN THE ESTATE OF ROSALIND MARIE CATES, late of Sea Breeze Estates in the Eastern District of the Island of New Providence one of the Islands of the Commonwealth of The Bahamas, Deceased IT IS HEREBY NOTIFIED, for the information of those it may concern, that all persons having any claim or demand against the above Estate are required to send the same to the undersigned on or before the 29th day of August, A.D. 2018 and if so required by notice in writing from the undersigned to come in and prove such demand or claim or in default thereof be excluded from the benefit of any distribution made before such debts are proved; AND NOTICE is hereby given that all persons indebted to the said Estate are requested to settle their respective debts at the Chambers of the undersigned on or before the date hereinbefore mentioned. Dated the 8th day of August, A.D. 2018 CALLENDERS & CO. Chambers, One Millars Court, P.O. Box N-7117, Nassau, The Bahamas Attorneys for the Personal Representative
PAGE 4, Wednesday, August 15, 2018
THE TRIBUNE
TEXAS MAN IN 3D-PRINTED FIREARMS CASE WELCOMES LEGAL BATTLE
AUSTIN, TEXAS Associated Press CODY Wilson found his calling when, in 2013, he successfully fired the first gun made on a 3D printer. The Austin AmericanStatesman reports that very week, he dropped out of his second year at the University
of Texas Law School, which wasn’t much of a sacrifice because he’d pretty much stopped attending classes as his interests were captured by a revolutionary idea: The internet was more powerful than governments, gun-control advocates and regulations limiting the ownership of firearms.
“I chose to print the gun. That’s a choice that you can’t back away from,” Wilson, 30, said from the North Austin office and manufacturing
CODY Wilson poses for a portrait in the Defense Distributed office in Austin, Texas, on Tuesday, Aug 7, 2018. The founder of Defense Distributed, Wilson has been in a long legal dispute regarding his ability to post the instructions to create 3-D printed firearms on his website. Photo: Lynda M Gonzalez/AP centre of Defense Distributed, the company he founded to expand the availability of do-it-yourself weaponry. “When you’ve got a better idea, you can’t just stay in class all day.” Wilson posted how-to plans for his gun online and said he wanted to do the same for future 3D-printed firearms, launching a national debate — and a still-raging legal battle — over the wisdom of creating largely plastic weapons that would be difficult to detect and impossible to trace without serial numbers required for most other manufactured weapons. Police, security experts and politicians were aghast, calling plastic-based guns the perfect firearm for assassins, terrorists, felons, domestic abusers and others legally barred from gun ownership. But for Wilson, do-ityourself guns were a logical extension of crypto-anarchy, a philosophy he embraced that seeks to use a free internet and encryption technology to reduce government influence over people’s lives. “I will continue to fight anyone who will try to sue me and say that I can’t do this,” he said.
Wilson’s manufacturing plans for his 3D-printed gun, a single-shot pistol he called the Liberator, were downloaded more than 100,000 times before the US State Department ordered the blueprints removed, saying they violated federal law on exporting military weaponry. Wilson sued the State Department with the goal of letting everybody with a computer and access to a 3D printer decide for themselves whether to create and own a self-made pistol. Attention waned while the legal battle ground on, but the bubble popped this summer when the State Department reversed course and chose to settle, giving Wilson a license that allows him to distribute 3D-printer gun blueprints. Suddenly, Wilson was back in the national spotlight, a role he doesn’t shy away from. Wilson and Defense Distributed were sued in four states by officials and guncontrol groups hoping to stop the publication of gun designs. Those efforts now focus in Seattle, where 19 states and the District of Columbia persuaded a federal judge to temporarily block Wilson’s
settlement with the State Department. A hearing on the matter is set for Aug.21, with a decision expected by Aug 28, when US District Judge Robert Lasnik’s temporary restraining order expires. Reporters frequently ask how he would feel, and whether he should be blamed, if his downloaded plans produced a weapon used in a fatal shooting or other crime. Wilson shrugs off the question. “I suppose it depends, doesn’t it? What type of 3D-printed gun? Whose 3D-printed gun? I’m blamed, then, for all 3D gun deaths because, what, I inspired the genre of activity? I wouldn’t put it past someone,” Wilson said. “Also, it’s beside the point. I didn’t invent the idea of the gun.” Wilson said he is fighting to protect his free-speech right to publish information on a matter of public concern, filing a lawsuit in Austin federal court accusing two officials — with more to be added soon — of violating his rights by dragging Defense Distributed “before all manner of far-flung criminal and civil tribunals in an effort to silence the organisation.”
THE TRIBUNE
Wednesday, August 15, 2018, PAGE 5
Los Angeles is first in US to install subway body scanners LOS ANGELES Associated Press LOS ANGELES’ subway will become the first mass transit system in the U. to install body scanners that screen passengers for weapons and explosives, officials said yesterday. The deployment of the portable scanners, which project waves to do full-body screenings of passengers walking through a station without slowing them down, will happen in the coming months, said Alex Wiggins, who runs the Los Angeles County Metropolitan Transportation Authority’s law enforcement division. The machines scan for metallic and non-metallic objects on a person’s body, can detect suspicious items from 30 feet (nine meters) away and have the capability of scanning more than 2,000 passengers per hour. “We’re dealing with persistent threats to our transportation systems in our country,” said Transportation Security Administration Administrator David Pekoske. “Our job is to ensure security in the transportation systems so that a terrorist incident does not happen on our watch.” Yesterday, Pekoske and
AN ARRIVING passenger to Union Station in Los Angeles is seen on the ThruVision technology that reveals suspicious objects on people during a Transportation Security Administration demonstration yesterday. Los Angeles is poised to have the first mass transit system in the US with body scanners that screen passengers for weapons and explosives. Photo: Richard Vogel/AP other officials demonstrated the new machines, which are being purchased from Thruvision, which is headquartered in the United Kingdom. “We’re looking specifically for weapons that have the ability to cause a masscasualty event,” Wiggins said. “We’re looking for explosive vests, we’re looking for assault rifles. We’re not necessarily looking for smaller weapons that don’t have the ability to inflict mass casualties.”
In addition to the Thruvision scanners, the agency is also planning to purchase other body scanners — which resemble white television cameras on tripods — that have the ability to move around and hone in on specific people and angles, Wiggins said. “We really want to be effective and we need the ability to have a fixed field of view, but we also need to be able to move that field of view as necessary,” Wiggins said. “Deploying these
technologies together gives us that accuracy and minimizes any delays.” Wiggins would not say how many of the machines were being purchased, but said they would be rolled out in subway stations in the “coming months”. Employees and police officers first have to be trained on how to use the equipment. Signs will be posted at stations warning passengers they are subject to body scanner screening. The screening process is voluntary, Wiggins said, but customers who choose not to be screened won’t be able to ride on the subway. But some passengers saw the screening as an added layer of security. “I guess it is a good, precautionary thing,” Andrea Kirsh said, a 22-year-old student
from Corvallis, Oregon, who was traveling through Los Angeles’ Union Station yesterday. “It makes me feel safe. As a civilian I think we often don’t know what to look for or what we would be looking for.” Passengers who rode down an escalator to ride the Metro Red Line at Union Station in Los Angeles yesterday were screened as Pekoske and other officials looked on. But after the news conference and media demonstration, officials packed up the equipment and carted it off. The TSA tested body scanners in New York’s Penn Station in February and has also conducted tests at Union Station in Washington, DC, and at a New Jersey Transit station during the 2014 Super Bowl.
EMPLOYMENT OPPORTUNITY
VICE PRESIDENT MARKETING A progressive company is looking for a Vice President of Marketing. This position will be responsible for the strategy, tactics and programs to create interest, demand and recognition for the company’s products through the use of PR, Product Marketing, Creative Services, Advertising, Strategic Relationships, Direct, Event, Channel, Digital and Online Marketing. The ideal candidate must be well rounded in all aspects of marketing and sales methodology to both vertical and consumer customers. Extensive knowledge of technical markets, pricing models, consumer packaging, channels of distribution, technology trends, customer buying patterns, budgeting, public and investor relations, advertising, statistics and analysis, P&L background, direct marketing, telemarketing, planning skills, database marketing, competitive strategies, event marketing, channel marketing, merchandising, product marketing, product management, team management, presentation, sales and strong training skills during high growth stages. Core Responsibilities include:• Product management, pricing and business performance management for a company’s major lines of business; • Product life cycle management which includes all aspects of service development and evolution of the product; • Manages operating and expense budgets effectively to maximize profitability and minimize impacts on corporate costs; • Ensures all activities exemplify the corporate image and brand of the company; • Creates a highly effective team fluent in current industry trends, technology changes and market conditions; • Ensures products adhere to applicable policies, practices, regulations, and privacy requirements; • Product portfolio which includes revenue, subscribers, market, share and churn targets • Portfolio plan development and business performance of products including profitability, expense management, and inventory management; • Provides inputs into the forecasting process and ongoing forecasting updates; • Identifies emerging areas of focus and high quality ideas in consultation with product marketing, technology, operations and senior management; • Leads cross-functional multi-disciplined teams in the research, evaluation, system design, requirement definition and process development for service delivery; • Negotiates, establishes and maximizes third party relationships that deliver advantageous results and protect the company’s interests; • Ensures that the company’s products and pricing are positioned competitively through proactive monitoring and research of the marketplace and competitors; • Spearheads timely tactics to counter competitive threats; • Ensures channels to market are supported and effectively maintained by providing sales aids, value propositions, product information and sales training for all marketing-related initiatives; • Drives marketing activity to ensure alignment with marketing plans, and gains the understanding and commitment of stakeholders; • Provides marketing leadership, direction and coaching to inspire, motivate and enable a positive and productive work environment for direct reports and cross-functional teams; • Create key performance metrics to measure customer experience and brand awareness, capturing customer behavior, analysis of results, and development of cross-departmental recommendations. Required Skills, Experience & Qualifications • A Bachelor’s degree in Marketing, Branding or related field; • Ten (10) plus years’ experience in a senior marketing role; • Demonstrated experience and leadership in managing comprehensive strategic; marketing, communications, media relations, and marketing programs to advance an organization’s mission and goals; • Superior management skills with the ability to influence and engage direct and indirect reports and peers; • Ability to manage influence through persuasion, negotiation, and consensus building; • Combined background of post-sale and sales experience an asset; • Strong empathy for customers AND passion for revenue and growth; • Analytical and process-oriented mindset; • Excellent communicator with superior verbal, written, interpersonal, technical and presentation skills; • Ability to think critically and problem solve in a fast-paced environment. Qualified applicants should submit Resumes on or before, August 15, 2018 electronically to the following email address: careers242@coralwave.com with Subject: Vice President Marketing.
PAGE 6, Wednesday, August 15, 2018
THE TRIBUNE
California could reshape pot rules as legal market struggles LOS ANGELES Associated Press THE nation’s largest legal marijuana market is struggling. Illicit sales continue to thrive. A shaky supply chain has customers looking at barren shelves in some shops. There are testing problems. And a proposal to allow home marijuana deliveries in cities that have banned pot sales could lead to a courtroom fight. A Los Angeles hearing yesterday provided a window into the state’s emerging cannabis economy, in which early enthusiasm for broad legal sales has been followed by anxiety and frustration across a swath of the industry. The state’s top marijuana regulator, Lori Ajax, said after the hearing that the state remains in a challenging transition period as it attempts to transform what was once a largely illegal market into a multibilliondollar, regulated economy. “Unfortunately, there is confusion out there,” Ajax said. California kicked off broad legal sales on Jan 1, and since then temporary rules have governed sales, growing and manufacturing of everything from pot-spiked munchies to infused lotions and balms. The state is now considering changes to those rules, though it’s likely to take months before any revisions go into effect. At the hearing, dozens of marijuana business owners, industry lawyers, activists and consumers each got 90 seconds to tell Ajax what needed to be done to create a more orderly, fair and, hopefully, prosperous marketplace. Over two hours, she heard complaints about big business threatening momand-pop shops, a shortage of licenses and various
suggestions for revamping testing rules that are intended to ensure the quality of products that reach store shelves. Others complained about shifting rules for packaging. A string of speakers focused on a proposed change in state rules that the League of California Cities says would allow unchecked home marijuana deliveries in places that have banned local pot sales. To its critics, the change would create an unruly world of shady sales, but supporters say too many Californians are cut off from legal pot, even in a state where voters overwhelmingly approved it. The fledgling legal system has created a patchwork of local laws, with some cities and counties embracing legal cannabis while others have limited sales or outlawed all commercial pot activity. That’s created socalled pot deserts, where sales are forbidden. Mina Layba, from the Los Angeles suburb of Thousand Oaks, said the proposal would conflict with a local law that bans deliveries. If approved, she said it would undercut licensed shops. “Who then gets the benefit of taxes from deliveries?” she asked. The state Bureau of Cannabis Control has said it is merely clarifying what has always been the case: that a licensed pot delivery can be made to “any jurisdiction within the state”. But others said the sickly and frail can’t travel to make a cannabis purchase, making home delivery essential, especially in places that don’t offer legal shops nearby. “The patients are citizens too. They have rights and they have needs,” said Sarah Armstrong of Americans for Safe Access, an advocacy group.
US retailers small companies rally as Turkey fears ease NEW YORK Associated Press US stocks rallied yesterday as banks, retailers, and smaller companies jumped. That helped the market recover most of its losses from the previous two days. The Turkish lira steadied as officials from Turkey and the US said the countries are in talks to ease diplomatic tensions, which have resulted in high tariffs on Turkish steel and aluminum. Stocks in emerging markets like Argentina, Russia and Brazil jumped. In the US, the biggest gains went to small and midsize companies, which do more business domestically compared to the large multinational firms on indexes like the S&P 500 and the Dow Jones Industrial average. Retailers rose, thanks in part to strong quarterly reports. The reduced tensions with Turkey also stopped a rally in bond prices and sent yields and interest rates higher. That helped banks. Industrial and basic materials companies also rose yesterday, but compared to other parts of the market, they didn’t recover as much of their losses. Invesco Chief Global Market Strategist Kristina Hooper said investors are shifting money into more US-focused companies in response to the Trump administration’s aggressive handling of its dispute with Turkey, a longtime member of NATO. “This is a reminder that the US is a very different country than it was just a few years ago,” she said. The S&P 500 index climbed 18.03 points, or 0.6 percent, to 2,839.96. The Dow Jones Industrial Average gained 112.22 points, or 0.4 percent, to 25,299.92. The Nasdaq composite added 51.19 points, or 0.7 percent, to 7,870.89. The Russell 2000 index advanced 17.26 points, or one percent,
to 1,692.58. The S&P 500 fell a combined 1.1 percent on Friday and Monday as investors worried that Turkey’s financial woes would affect other countries. Many retailers will report their quarterly results this week, a potential hint about how much money consumers are spending. Tapestry, the parent company of Coach and Kate Spade, jumped after its fourth-quarter results surpassed analysts’ estimates. The stock surged 12 percent to $53.16. Auto parts retailer Advance Auto Parts jumped 7.8 percent to $156.13 after it did better than expected in the second quarter. Competitors AutoZone and O’Reilly Automotive climbed as well. Smaller companies made outsize gains. Footwear maker Wolverine World Wide gained 2.4 percent to $38.39 and watchmaker Fossil rose 4.8 percent to $25.68. Among midsize companies, Boston Beer picked up 3.9 percent to $291.30 and RV maker Thor Industries rose 2.6 percent to $97.06. Global markets fell Friday and Monday on concern that Turkey’s currency turmoil could spread to banks in other countries and affect the world economy. The Argentine peso and India’s rupee hit record lows
MARKET REPORT TUESDAY, 14 AUGUST 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,981.81 | CHG 37.94 | %CHG 1.95 | YTD -81.76 | YTD% -3.96 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.10 1.39 0.19 3.92 9.16 6.60 5.30 11.93 2.71 1.77 8.21 6.21 12.00 7.00 13.67 13.00
52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 2.90 8.50 6.09 3.33 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50
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
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 ##########
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
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ 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)
LAST CLOSE 4.01 17.43 9.09 4.06 1.00 0.18 2.90 9.13 6.15 3.75 11.42 2.72 1.75 7.47 6.21 11.49 6.35 3.75 13.00
CLOSE 4.01 17.43 9.09 4.06 1.00 0.18 2.90 9.13 6.15 3.99 11.42 2.77 1.75 7.52 6.21 12.00 6.36 3.75 13.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.24 0.00 0.05 0.00 0.05 0.00 0.51 0.01 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
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
108.39 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.07 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
LAST SALE 100.00 108.32 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME 100
10,000 1,000
2,000 3,850
VOLUME
EPS$ 0.268 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.719 0.277 0.631
DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580
P/E 15.0 18.7 N/M 14.3 N/M N/M -2.9 14.3 10.7 23.3 18.2 27.2 7.6 N/M 11.4 17.7 8.8 13.5 20.6
YIELD 2.49% 6.48% 0.00% 5.67% 0.00% 5.56% 0.00% 7.78% 3.58% 3.01% 5.43% 2.17% 4.00% 1.12% 5.15% 4.17% 3.14% 3.20% 4.46%
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%
MATURITY 19-Oct-2022 ############### 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
MUTUAL FUNDS 52WK HI 2.16 4.16 2.00 180.30 157.58 1.56 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.50 1.62 1.58 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
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
NAV 2.16 4.12 2.00 180.30 155.10 1.56 1.70 1.65 1.09 7.24 8.28 6.46 11.16 11.65 10.26 9.93 8.45 11.20
YTD% 12 MTH% 1.87% 3.98% -0.44% 4.28% 1.05% 2.26% 0.90% 3.44% 1.11% 6.05% 2.14% 4.33% 0.17% 4.01% 1.67% 4.18% -0.96% 0.73% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A
NAV Date 30-Jun-2018 30-Jun-2018 29-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018
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
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 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
against the dollar. Those jitters eased later yesterday. Economists say Turkey’s central bank still needs to raise interest rates significantly to strengthen its currency. President Recep Tayyip Erdogan has ruled out that step. Hooper, of Invesco, said it’s common for stocks to fall across emerging markets when one country is in trouble, but that reaction isn’t necessarily justified. “What we’re seeing in emerging markets today is a repeat of what we’ve seen crisis after crisis for the last few decades,” Hooper said. “We can’t treat all emerging markets the same way.” She said Argentina, like Turkey, is dealing with a plunging currency and political turmoil. But most of Turkey’s problems are specific to that country and other emerging markets like Mexico are likely to recover. Bond prices moved lower. The yield on the 10-year Treasury note rose to 2.90 percent from 2.88 percent. Cigna and Express Scripts both rose after billionaire investor Carl Icahn said he’s ending his campaign to block the deal. He had
urged Cigna shareholders to vote against the $52bn acquisition of Express Scripts and said the price was far too high. Health insurer Cigna added 1.9 percent to $185.30 and Express Scripts, a pharmacy benefits manager, picked up 2.4 percent to $86. Consumer credit company Synchrony Financial rose 2.8 percent to $30.01 after it said it extended a contract to manage credit card programs for home improvement retailer Lowe’s. Lowe’s gained 1.3 percent to $98.40. Benchmark US crude slipped 0.2 percent to $67.04 per barrel in New York. Brent crude, used to price international oils, dipped 0.2 percent to $72.46 per barrel in London. Gold added 0.2 percent to $1,200.70 an ounce. Silver rose 0.5 percent to $15.05 an ounce. Copper fell 1.8 percent to $2.68 a pound following weak economic reports from China. Growth in factory output, consumer spending and retail sales in July were slower than expected. Wholesale gasoline picked up one percent to $2.03 a gallon. Heating oil lost 0.4 percent to $2.13 a gallon. Natural gas rose one percent to $2.96 per 1,000 cubic feet. The dollar rose to 111.22 yen from 110.69 yen. The euro fell to $1.1339 from $1.1394. Germany’s DAX rose less than 0.1 percent. The CAC 40 in France fell 0.2 percent and Britain’s FTSE 100 lost 0.4 percent. Tokyo’s Nikkei 225 added 2.3 percent. Hong Kong’s Hang Seng declined 0.7 percent while the Kospi in Seoul advanced 0.5 percent.
NOTICE Notice is hereby given that JANET NOEL of Lucky Hart Corner off East Street, P.O.Box N7978,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 signed statement of the facts within twenty-eight days from the 15th August, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas. NOTICE
GENESIS CORP. N O T I C E IS HEREBY GIVEN as follows: (a) GENESIS CORP. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 13th August, 2018 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 15th day of August, A. D. 2018 _________________________________ Bukit Merah Limited Liquidator
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Turkish leader talks big, but can be pragmatic in crises ISTANBUL Associated Press THE MAN at the centre of Turkey’s currency crisis and feud with the United States — President Recep Tayyip Erdogan — is unleashing the same combative rhetoric that powered him through other grave challenges in his 16 years as the increasingly authoritarian leader of a key NATO ally. But Erdogan is also a pragmatist who badly needs a way out of a standoff that threatens his outsized ambitions for the once-thriving Turkish economy. The interplay between Erdogan’s two sides could determine how a country that strategically spans the Asian and European continents, and shelters several million Syrian refugees in a deal with the European Union, will handle a cascade of problems: high inflation, foreign investor flight and a plunge in the value of the Turkish lira. The question is whether the president will stick to his unwavering public position, or assign aides to soften it in order to stabilise an economy that he grandly said would be one of the world’s most powerful by 2023, the centennial of Turkey’s founding. And if he does seek compromise, analysts wonder, will it be too late to undo the economic damage? The president, whose longtime electoral domination has been sullied by concerns about basic freedoms and a crackdown on opponents, delivered a vintage performance at a speech on yesterday. He said Turkey was under attack, invoking the memory of the July 15, 2016 attempted coup by some military units that left
TURKEY’s President Recep Tayyip Erdogan listens during a joint press conference with Iraq’s Prime Minister Haider al-Abadi, following their meeting at the Presidential Palace in Ankara, Turkey yesterday. The Turkish lira has nosedived in value in the past week over concerns about Erdogan’s economic policies and after the United States slapped sanctions on Turkey angered by the continued detention of an American pastor. Photo: Burhan Ozbilici/AP nearly 300 people dead. “We stood tall before tanks, cannons and planes,” said Erdogan, a brash, former footballer and exmayor of Istanbul. “And have no doubt that today, we stand before the dollar, the exchange rate, the inflation and interest rates. We stand before them with the same determination.” The president’s message to his supporters was that Turkey is again under siege from shadowy conspirators, a message that has historically played well among many Turks since foreign powers carved up the remains of the Ottoman empire around the time of its collapse in the early 20th century. Erdogan, 64, talked about “economic hitmen”
and a “deeper operation conducted against” Turkey, which is also coping with its own divisions — between pious Muslims and secular citizens, minority Kurds and the state, and those for and against the polarising president. Many economists suggest Turkey’s problems stem primarily from mismanagement on the watch of the president, who for years championed a development boom fueled by low interest rates and the amassing of high foreign currency debt. There are also doubts about the independence of Turkey’s central bank from Erdogan to raise interest rates and support the currency. Erdogan also unnerved investors when he appointed his son-in-law as
finance minister in his new Cabinet after he was elected president in June. All of this has unnerved the international investors who had helped fuel Turkey’s economy and are now pulling their money out. Their rush for the exit is worsening the currency’s drop, which is likely to lead to bankruptcies in Turkey as banks and companies with loans in foreign currencies go bust. That reinforces market fears in a self-feeding, vicious cycle. “The situation in Turkey is likely to get worse before it gets better,” said Nicholas Brooks, head of economic and investment research at Intermediate Capital Group, a London-based asset manager. “The fundamental problem in Turkey has been
the build-up of unsustainable economic imbalances.” If the situation does not get better, Turkey may require a rescue from the International Monetary Fund, but analysts say that Erdogan is unlikely to go for that as it could undermine his carefully constructed image of a strong leader who is leading the country to prosperity. Also, the US is the biggest stakeholder in the IMF, making it even harder for Erdogan to accept the help of a country he has branded as the enemy. If the market rout continues, Erdogan may have few options but to limit money flows out of the country, a draconian step that can keep the economy from going bust but can pinch its growth for years.
Brooks says Turkey’s central bank should sharply increase interest rates, which can reduce inflation and attract investment. Erdogan has so far rejected such analyses, saying the United States is the main culprit. Washington had added to the pressure by imposing financial sanctions on two Turkish ministers and doubling steel and aluminum tariffs on Turkey, as President Donald Trump tries to secure the release Andrew Brunson, an American pastor being tried in Turkey on espionage and terrorismrelated charges. Brunson and the United States say the allegations against the pastor, detained during mass arrests and purges after the 2016 attempted coup, are fabricated. Jeffrey Hovenier, the top US diplomat in Turkey, visited Brunson on yesterday and said afterward that the cases against the pastor, who is under house arrest, and others held in Turkey should be resolved fairly and promptly. Meanwhile, Turkey’s state-run media said the lawyer representing the pastor appealed to a court to lift a travel ban imposed on Brunson. The pastor faces a prison sentence of up to 35 years if convicted; Erdogan has linked his detention to Turkish demands for the extradition of Fethullah Gulen, a Muslim cleric in the United States who denies Turkish allegations that he engineered the attempted coup. Erdogan has shown a pragmatic side in overcoming bitter disputes in the past, including with Israel and Russia.