business@tribunemedia.net
THURSDAY, SEPTEMBER 12, 2019
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JEFFREY BECKLES
Chamber chief: 50% of firms not totally insured By YOURI KEMP THE Chamber of Commerce’s chief executive yesterday underscored the difficulties in recovering from Hurricane Dorian by revealing that around 50 percent of storm-hit businesses were not fully insured. Jeffrey Beckles told Tribune Business that “getting small business back up and running” is critical to Abaco and Grand Bahama’s economic revival as many lack the capital resources to fully rebuild their enterprises. He added that about “50% of the businesses are currently underinsured”, including firms with no insurance at all. “You may have insurance coverage on your building, but you may not have insurance protection against fire, flood or hurricanes, or any sort of catastrophic insurance,” Mr Beckles said. “As a result, for us at the chamber, this is an opportunity for us to educate small and medium-sized
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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URRICANE Dorian was yesterday branded “the perfect storm” to derail an economic and fiscal turnaround that the government wanted to be natural disaster-free for “at least another year”. KP Turnquest, deputy prime minister, told Tribune Business that the devastating category five storm represented “a significant setback” to the Minnis administration’s efforts to “firmly establish” its Fiscal Responsibility framework and consolidation plan. He revealed that it was likely that the government will have to borrow beyond its 2019-2020 budget-approved limits to finance Dorian restoration, although local - as opposed to foreign currency - debtraising operations “would be our preference”. While unable to provide figures for Dorian’s likely damages and the amount of extra borrowing the government will have to undertake, as this is still being determined, Mr Turnquest said it did “not at all” anticipate it would have to
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Revealing that the one surviving location was now acting as a command post for recovery efforts in Hope Town, Mr Damianos said Dorian’s arrival could not have been more ill-timed
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Dorian victims told: ‘Don’t reach for sky’ on recovery finance By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net HURRICANE Dorian victims were yesterday urged by a well-known banker not to sacrifice their future financial wellbeing by over-borrowing to recover from the storm’s devastation. Gowon Bowe, pictured, Fidelity Bank (Bahamas) chief financial officer, told Tribune Business that those impacted by the category five storm must borrow for “what they need, not what they want”, and avoid falling into the trap of
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‘The perfect storm’ for our economic viability
Dorian destroys 30% of realtor’s business A LEADING Bahamian realtor yesterday pledged to “put Humpty Dumpty back together again” after Hurricane Dorian wiped out up to 30 percent of his business. George Damianos, pictured, president and managing broker of Damianos Sotheby’s International Realty, told Tribune Business that the category five storm had totally destroyed four of the firm’s five Abaco offices when it rampaged across the island.
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over-extending themselves amid the emotional fall-out from arguably the worst hurricane ever to strike this nation. Encouraging persons “not to allow circumstances
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• DPM wanted ‘another year’ disaster-free • ‘Major setback’ to Fiscal Responsibility bed-in • Ex-minister suggest ‘debt foregiveness’ look • More borrowing likely; local market ‘preferred’
KP TURNQUEST
JAMES SMITH
ROBERT MYERS
seek “debt forgiveness” or rescheduling from local and international creditors for its $8bn-plus liabilities following the storm. He added that The Bahamas was “a very long way” from having to undertake such drastic measures, or seek assistance from the likes of the International Monetary Fund (IMF), even though one of his predecessors as minister of finance suggested that such pressures now exist. James Smith, who held the post during the 2002-2007 Christie administration, told
Tribune Business in a recent interview that both the fiscal deficit and national debt were likely to significantly increase in Dorian’s wake due to the combination of restoration spending demands and reduced tax revenues imposed on the government. While acknowledging that the government has to meet the “essential needs” of its people, and repair public infrastructure, Mr Smith warned: “We have to be careful how we manage this... and not need to go to the International Monetary
Fund, which is something we’ve avoided up until now. “It’s extraordinary,” he added of Dorian’s devastation. “I totally sympathise with the position they’re in. It’s something nobody could have predicted. It’s going to take forbearance on the part of the entire population for the next three to four years.” While the full scale of Dorian’s impact is unlikely to be revealed before the mid-year budget in February next year, along with
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$4.59 ‘Bottom feeders’ targeting Abaco
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A LEADING realtor yesterday revealed that “bottom feeders” are inquiring whether they can purchase Abaco real estate cheaply as a result of Hurricane Dorian’s devastation. Mario Carey, pictured, founder of Better Homes and Gardens Real Estate MCR Bahamas Group, told Tribune Business he has already fielded inquiries from persons exploring whether they can obtain a deal after much of the island’s economy was levelled by the category five storm. “You are going to get bottom feeders coming into the Abaco market looking for opportunities,” he revealed. “You will have people looking for opportunities in Abaco. “People are inquiring whether real estate prices are attractive for land. Can we pick up a deal in Abaco? It’s a funny conversation to have.” Mr Carey added said Dorian had created several knock-on effects for Abaco and the wider Bahamian real estate market,
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PAGE 2, Thursday, September 12, 2019
THE TRIBUNE
DESIGN CRITICISM ‘STING’ IS JUST A GROWING PAIN
C
RITIQUE is a must. We cannot label ourselves as designers if we are unable to give or take criticism. Criticism is a very powerful tool for many kinds of problems. It is not just to assess designs; it is for use in creating a better business plan, or even a marketing strategy. Even the greatest designers are subject to criticism. When we stop evaluating our work, we stop growing. Critics must escape from
the glossy silos of the arts and style sections, because design is not a lifestyle commodity. It is fundamental to our everyday life. Design today has become a form of inquiry, power and agency. Knowing that our designs are subject to critical feedback, it will change the way we design. The intent of true constructive criticism is to be helpful, and give guidance or direction that can allow for improvement or a different result. Critical discussion
around design is as important as the design process itself. It should be honest and constructive. Nobody wins if the discussion is simply a warm, fuzzy exchange, as the goal of every critique is to discover how to make a design better, not win a gold star for perfection. There are subtle occasions where a client or employer will give you criticism that is not for evaluation or advice, but to communicate what
they expect. There is not often room to compromise here. If you are unsure of which situation this is, the best thing to do is politely ask. Constructive Criticism When giving your own critique as a designer, you should keep the focus on being accurate, actionable and giving good advice. Be sure that before giving any criticism you understand the situation and the intent of the design or brief behind it, rather than just making subjective comments about its aesthetic qualities. Ensure your criticism is done so that the creator has the opportunity to improve and satisfy the brief, or properly align the design to its intended purpose. Do not offer vague suggestions that lack clear direction and meaning. Actionable Critiques When making critiques, try to provide actionable information. Simply saying: “I don’t like it” may be truthful, but not very helpful. If you encounter this situation with a client or employer, and they are not giving you the information you need to take action, try asking questions. Help them understand that you cannot make changes if you do not know where to start or what specifically they do no’t like. Be more articulate with observations and recommendations, as it will prevent you from saying: “I really like …” or “I don’t like the way you …”. That is not real criticism. It is an opinion. However, designers can consider questions such as: “Is it the colour scheme you don’t like, or the entire layout?” or “Which parts of the design don’t you like?” It will help save time and
budget if you show me what you want to keep and what we need to change. When you are the recipient of a design critique, the main goal is to listen. The true mark of a graphic designer is to not judge or be right. Listen and provide a conscientious response after your client has spoken. It is much harder to defend a design decision if you offer only a biased ear. Your first impulse might be to defend each and every criticism, but that will not give you the opportunity to really consider the suggestions offered. Help your client understand that you not only want their input, but that it is essential to achieve the best possible result. Sometimes you can unintentionally offend someone by making them feel that if they do not take your advice, somehow they are doing something wrong. Respect the other person’s right to reject your advice, while not taking it personally. Give advice with the intention of providing a developmental opportunity and genuinely wanting to help. The important thing is to be able to differentiate constructive criticism from destructive criticism. Constructive criticism will have good intentions and be actionable. Destructive criticism will be derogatory, belittling and/or vague, with no clear execution plan to be undertaken. Take the former with a grain of salt and look at the situation objectively, ignoring the latter whenever possible. Try to maintain perspective and think about what it takes to get your best work; whether or not you honestly feel there is room
The Art of Graphix BY DEIDRE M BASTIAN
for improvement, and if you could benefit from an outside opinion that ties your critical feedback to the business goals and client’s needs. Overall, understand that the sting you might feel from criticism of your work is just a growing pain. Embrace it and know that critiques do not exist to air unfounded opinions. They exist to offer the best possible outcome for both client and designer. Until we meet again, fill your life with memories rather than regrets. Enjoy life and stay on top of your game. NB: Columnist welcomes feedback at deedee21bastian@gmail.com ABOUT COLUMNIST: Deidre Bastian is a professionally-trained graphic designer/ marketing coordinator and certified life coach with qualifications of M.Sc., B.Sc., A.Sc. She has trained at institutions such as: Miami Lakes Technical Centre, Success Training College, College of The Bahamas, Nova Southeastern University, Learning Tree International, Langevine International and Synergy Bahamas.
Cruise line promises 29% Nassau call rise ROYAL Caribbean Cruises has pledged it will make more than 100 vessel calls on Nassau over the next few months in a bid to boost the post-Hurricane Dorian economic recovery. The cruise line said it was resuming all calls to The Bahamas, and re-opening its $250m Perfect Day attraction on Coco Cay in the Berry Islands, in the wake of the Category Five storm’s passage. Driven in part by demand for stops at Coco Cay, Royal Caribbean said its vessel schedule will drive a 29% year-over-year increase in vessel calls on Nassau between now and the end of October. “It’s very important for all of us in the hospitality industry to do all we can in our individual and joint capacities to support business in The Bahamas,” said Russell Benford, the cruise line’s vice-president of government relations for The Americas. “Our ships will be making more than 100 calls on Nassau in the next couple of months as part of our effort to boost economic recovery as well as satisfying our guest demand for The Bahamas, which remains our number one destination.” The schedule of calls for ports in The Bahamas shows a planned itinerary of 108 calls between September 5 and October 31. With at least one cruise ship per day diverting to Grand Bahama to deliver supplies and provide some 20,000 meals for Hurricane Dorian victims, Royal Caribbean said it is now moving to get business back to normal.
ROYAL Caribbean executives reaffirmed their commitment to Grand Bahama’s tourism product following a personal visit days after the passage of Hurricane Dorian. From left: Joshua Carroll, assistant vice-president, global revenue management; Richard Fain, chairman and chief executive, Royal Caribbean Cruises; Michael Bayley, president and chief executive, Royal Caribbean International; Russell Benford, vice-president, government relations, The Americas, Royal Caribbean International; and Mark Tamis, senior vice-president, hotel operations. Photo: Tim Aylen/BVS “While we have been focused on offering assistance with the hurricane recovery, we would like to assure the people of The Bahamas that we remain committed to the long-term success of the Bahamian tourism industry which includes our plans to dramatically transform the Grand Lucaya resort with our partners at ITM through our joint venture, Holistica Destinations,” said Michael Bayley, Royal Caribbean’s president and chief executive. “We are greatly relieved to know that all 370 employees whom we evacuated from Coco Cay before Dorian are safe and back on the island. For those who did not have family to stay with in Nassau or another island that was not expected to be in the path of the storm, we sheltered in hotels and other accommodations, trying to make them as comfortable as possible as we waited out the horrific events of the past ten days.”
Photos of staff arriving back at Coco Cay showed team members hugging each other with relief that their fellow workers are safe. “You could see the raw emotion on their faces, and also a sense of relief that work was resuming, which meant life was beginning to return to some sort of normalcy,” said Mr Benford. “Royal Caribbean International’s commitment to The Bahamas has never been stronger than it is today, and as we mark 50 years since our first ship sailed into Nassau harbour on our company’s inaugural cruise, we join those many entities who want to do all we can to help the beautiful people of this nation recover from Hurricane Dorian. “We know that one of the most important contributions we can make as a company is to bring guests to the shores of the Bahamas and do all we can to boost business.”
THE TRIBUNE
Thursday, September 12, 2019, PAGE 3
Baha Mar: Dorian relief to ‘offset’ cancellations By YOURI KEMP A SENIOR Baha Mar executive yesterday said bookings from relief workers were expected to “offset” leisure traveller cancellations triggered by Hurricane Dorian. Robert Sands, pictured, Baha Mar’s senior vicepresident for government and external affairs, told Tribune Business that the mega resort had experienced some cancellations prior to the devastating storm making landfall in The Bahamas. He said: “It is fair to say, prior to the hurricane being announced, there were a number of guests who either cancelled or postponed their trips to The Bahamas for this particular time period.”
“Additional business from aid and relief workers, and other associated parties, have booked in reasonable numbers to offset the falloff in expected guests at Baha Mar. So we are looking for a very short-term fall off.” Mr Sands said it was important that Baha Mar and the wider tourism industry that was unaffected by Dorian make
potential visitors aware that The Bahamas is made up of multiple islands that are still open for business. “As a result we have launched a programme called ‘pack with love’, where we encourage travellers to bring small care items for those affected by Hurricane Dorian,” he added. Baha Mar’s position mirrors that of Dionisio D’Aguilar, minister of tourism and aviation, who has told international travellers that “the best thing they can do right now” to help The Bahamas is visit the islands that were not devastated by Hurricane Dorian. Signalling that this nation and its major industry remain open for business given that the category five storm ravaged
just two of its 16 commonly-visited islands, Mr D’Aguilar said: “Maintaining a robust tourism industry will be vital in helping the country to recover and rebuild. “We are grateful for the outpouring of support and love for our islands, and we would like everyone to know that the best thing they can do for us right now is visit Nassau, Paradise Island, and the Out Islands. Our beautiful island nation is ready to welcome you.” The 14 islands unaffected by Dorian include New Providence and Paradise Island, the Exumas, Eleuthera and Harbour Island, Bimini, Berry Islands, Inagua, Andros, Cat Island, Long Island, San Salvador, Rum Cay, Acklins and Crooked Island, and Mayaguana.
BAIC RAISES QUERIES OVER DORIAN OIL SPILL BAHAMAS Agricultural and Industrial Corporation (BAIC) officials have visited Grand Bahama’s South Riding Point terminal to assess the oil spill and damage inflicted by Hurricane Dorian. The corporation, in a statement following its Tuesday inspection, said five of South Riding Point’s ten storage tanks had lost their roofs due to the devastating storm, which had led to oil being blown on to surrounding land. At the time Dorian struck Grand Bahama, there were 1.8m barrels of oil stored in three tanks. The oil storage and transhipment facility is owned by StatOil/Equinor, and sits on several hundred acres of land leased from the government and managed by BAIC. The visiting BAIC officials included chairman,
A STATOIL damaged oil storage container on Grand Bahama. Bishop Gregory Collie, who was accompanied by Board members Kim Carey-Gibson, Vernal Martinborough, Khalil Parker, Keith Carroll and Ethan Adderley, together with acting general manager, Debbie Strachan, and assistant general managers, Kervan Culmer and Gaylord Ingraham. Bishop Collie said the damage appeared to be extensive to the terminal storage tanks, the administrative building and other facilities at
South Riding Point. “While we were there, it appeared that some clean up had commenced as a single truck was seen cleaning up oil from the property,” Bishop Collie recalled, adding that “an assessment team was on a helicopter in the air trying to ascertain the extent of the damage.” StatOil/Equinor has confirmed that the terminal sustained damage from the hurricane, and that oil has been spotted on the ground at the terminal site and in
neighbouring areas. The company said it has secured vessels and equipment for oil spill response, and that clean-up and remediation has started. Bishop Collie said BAIC has been in close contact with Equinor management to ensure clean-up efforts started as quickly as possible and were performed properly. BAIC added that it will continue to monitor the situation closely, and hopes there has been no irreparable damage to the environment. Bishop Collie said it would be interesting to know what hurricane strength the tanks were designed to withstand, and whether StatOil/Equinor had contingency plans in place for a catastrophic event such as Hurricane Dorian.
SHIPYARD DELIVERS SIGN OF POST-DORIAN REBOUND GRAND Bahama Shipyard (GBS), pictured, yesterday delivered “a significant sign” of post-Dorian recovery by reopening and welcoming back its first commercial vessel. The 57,062-ton Agathonissos, owned by Greece-based Eletson, returned to the facility to complete repair work that began before the category five storm arrived in The Bahamas. The Shipyard, in a statement, added that it remains on track for the next planned cruise ship visit, Carnival Cruise Line’s Carnival Ecstasy, which is scheduled to arrive on October 5. It said it expects to service 29 dry dockings throughout the remainder of 2019, helping to support recovery efforts through the work of its more than 600 employees and the additional economic activity generated for Grand Bahama. “It was extremely important to get up and running as quickly as possible, and begin taking in vessels to help support the employees and families at the Shipyard, along with economic contributions and rebounding activity for the island,” said David Skentelbery, Grand Bahama Shipyard’s chief executive. “This is a significant sign of positive progress for the island, and we look forward to continuing our normal operations while also supporting the Bahamian recovery with direct support, including to island utilities, along with increased economic activity from our operations, and also from the industry’s collective efforts to support The Bahamas with immediate and long-term relief.” Grand Bahama Shipyard said Dorian had inflicted no significant damage, which was limited primarily to some erosion with no effect on berths. The company said it was able to fully
power its core operations, including docks, workshops and administrative functions, as well as communications infrastructure. It can also produce fresh water, and its cafeteria is currently feeding meals to hundreds of workers daily. Founded in 2000 by its shareholders, Carnival, Royal Caribbean and the Grand Bahama Port Authority, the Shipyard performs dry-docking, afloat repairs, refurbishments, refits and overhauls for vessels in the cruise, commercial and offshore segments of the maritime industry. Grand Bahama Shipyard schedules 85 to 100 drydocks each year, including more than two dozen major cruise ship dry docks annually.
CLARIFICATION IN an article headlined Half of Dorian victims lack insurance cover, published on September 11, comments were attributed to Warren Rolle, the Bahamas Insurance Association’s (BIA) chairman, calling for Bahamians to understand their insurance policies and check with their underwriters before seeking advice from third parties. The BIA has asked us to make clear that the comments were made by Timothy Ingraham, Summit Insurance Company’s president, not Mr Rolle. In addition, the Association points out that insurance clients will be unable to negotiate with reinsurers as these are all based outside The Bahamas.
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PAGE 4, Thursday, September 12, 2019
THE TRIBUNE
‘The perfect storm’ for our economic viability FROM PAGE ONE the next quarterly fiscal update, Mr Smith said The Bahamas still had some breathing room due to the fact that around 30 percent of its debt is denominated in foreign currency. “It’s really managing that and trying to avoid reaching that critical point,” he added. “Some of the international debt we ought to approach for forgiveness or rescheduling. We have some debt with the Chinese for the roads and the InterAmerican Development Bank.” Mr Turnquest, while emphasising that the
government was far from taking such measures, conceded that Dorian had dealt a significant blow to almost all aspects of the economy and public finances. “It’s a significant setback,” he told Tribune Business, “and one that I’d hoped to get through at least another year without so we could set in place and firmly establish the fiscal responsibility parameters, but we don’t control the wind. “Yet we have to deal with it. We’ll look at our fiscal plans, adjust them as necessary, account for it, and plot a path to get us back on track as soon as possible.” The deputy prime minister
had previously said the government’s finances were one Dorian-style hit from disaster, and that fear has now struck and become reality. The Fiscal Responsibility Act mandates that the government achieve a fiscal deficit equivalent to one percent of Bahamian gross domestic product (GDP), or $137m, for 2019-2020 but that target will inevitably be breached due to Dorian’s shock to the economy and wider society on Abaco and Grand Bahama. Asked whether the government will have to increase borrowing beyond parliamentary-approved limits, Mr Turnquest told Tribune Business: “We’re
still working that out. Chances are that we will have to based upon the initial analysis. Again, that is something to consider once the full impact is known. “We believe we’re going to be able to fund whatever we need to fund through the drawdown on the contingent line [the $100m IDB credit facility] we have, as well as the local market should the need arise. We believe we are comfortable in that envelope and will respond to whatever the needs may be.” The government can access ample excess liquidity in the commercial banking system, which stood at $1.855bn at endJuly 2019. External reserves, too, were relatively healthy, standing at $1.583bn at the same time, and will likely gain a further boost from the multi-million dollar foreign currency reinsurance inflows that will materialise once claims start to be paid. But, with much of Abaco’s economy totally obliterated by Dorian’s winds and storm surge, and Grand Bahama severely crippled, The Bahamas has - for the moment - lost the islands that were its second and third largest economies. The reduction in economic activity will depress government tax revenues below projections, and this income will be further impacted by the tax breaks,
incentives, and exigency orders granted to facilitate the rebuilding and restoration process in those islands. Besides the revenue hit, the government will also likely have to spend a nine-figure sum on restoring public infrastructure - roads, docks, bridges, airports, healthcare, water and electricity systems - in Dorian’s wake. Much of this will be uninsured, including Bahamas Power & Light’s (BPL) transmission and distribution system. The state-owned utility’s cashstrapped state means that it will likely have to rely at least partially on the government to finance repair costs that Paul Maynard, the Bahamas Electrical Union Workers (BEWU) president, yesterday suggested could hit $80-$90m on Abaco compared to BPL’s initial $20m-$30m estimate. Mr Turnquest yesterday acknowledged the possibility that BPL will need financial assistance from the government to fund restoration, although he suggested it could get “wrapped up” in the proposed $450m-$550m Rate Reduction Bond refinancing if the timing proved right. Meanwhile, with much of Abaco’s population evacuating in Dorian’s wake, The Bahamas also faces the problem of finding jobs for
the island’s 14,000 strong labour force and those who have left Grand Bahama many of whom may elect never to return. This, in turn, will increase the strain on the government’s social security budget and the National Insurance Board (NIB), the latter of which will be faced with a significant spike in unemployment benefit claims. Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business that Dorian’s total damages and economic losses have “got be in the billions”. Describing the economic and fiscal fall-out as being “of great concern”, he added: “It’s going to be a real struggle and we will have to borrow money. We’ve lost the second and third largest economies, and have to re-stimulate. BPL will not be able to pay for it; Water & Sewerage, those guys will need money to fix it. “It’s the perfect storm and the big one. It’s a question of how we manage our way out of it, and be smart about it. I would not want to be this administration. No doubt it’s going to have a big impact on our fiscal viability and sustainability. It’s very, very worrying. It’s a mammoth task getting your head around what it’s going to cost.”
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THE TRIBUNE
Thursday, September 12, 2019, PAGE 5
Dorian destroys 30% of realtor’s business FROM PAGE ONE for his Abaco agents. With summer the “big season” for Abaco real estate deals, he predicted that many sales would still have been “under contract” and yet to close prior to the devastating storm’s arrival. As a result, Mr Damianos said few - if any - transactions were likely to close apart from those involving vacant land as many of the subject properties would be write-offs. However, he emphasised that neither himself nor the company had “given up on Abaco” despite the extent of the devastation and likelihood that recovery will take years to fully complete. The Damianos Sotheby’s chief voiced optimism that Eleuthera, which was spared Dorian’s wrath, will “pick up the slack” for international buyers seeking an Out Island experience. “We’ve not given up on Abaco,” Mr Damianos affirmed to Tribune Business, disclosing that he first entered the island’s real estate market in the wake of Hurricane Floyd two decades ago.
“It was a part of our business that was anywhere from 25 percent to 30 percent of the operation. We’ll go back in as soon as possible, regroup and put Humpty Dumpty back together again. I’ve assured my employees that’s my intention.” He described Abaco as “a big loss, a big loss” to the overall Bahamian real estate industry given its importance as a vacation rental and second home destination that attracted wealthy investors to communities such as Hope Town and Treasure Cay, as well as projects such as Baker’s Bay Golf & Ocean Club and the Abaco Club at Winding Bay. This made the real estate industry itself one of the key pillars for Abaco’s economy as it generates multiple employment spin-offs for the likes of attorneys, realtors, landscapers, contractors, maintenance personnel and property managers. “I would say we had a huge presence in Abaco, HG Christie had a presence in Abaco, and Coldwell Banker had a presence in Abaco, along with the local agencies,” Mr Damianos said. “It’s a big loss.
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“There’s a real cottage industry affected by this. Golf cart rentals in communities, caretakers that took care of these homes, rental companies that rented these properties. It’s big. I also worked to sell Deep Water Cay [in east Grand Bahama], which I understand was pretty much wiped out. They employed 62 people. Where do they go?” He continued: “Abaco is emptying out. A lot of people are out. I think it will take a while before Abaco comes back, and any meaningful market in real estate and real estate transactions. “Marsh Harbour is pretty much a hub, and it was wiped out. Baker’s Bay, Man O’ War Cay and Elbow Cay, a lot of this stuff was fed out of Marsh Harbour. It has been a big blow to Marsh Harbour. I will probably go up in a few weeks to see what can be salvaged in Marsh Harbour.” Mr Damianos said
the real estate firm’s five Abaco offices had all been destroyed “with the exception of Hope Town”. He added: “Believe it or not, we’ve got the generator running, got it all cleaned up and, to the best of my knowledge, we’re in the process of having it become a command centre for the clean-up of Hope Town.” Its other locations fared less well, with the buildings housing Damianos Sotheby’s offices on Treasure Cay and Guana Cay totally demolished, and its second Hope Town base also “gone”. The Marsh Harbour office was described as having “doors and windows wide open to the public”. Mr Damianos said all the realtor’s Abaco staff had been evacuated to either Florida or New Providence subsequent to the storm’s passage, although the fee and commission income expected from sales on the island prior to Dorian is
unlikely to materialise. “Properties under contract will more than likely not close apart from vacant land,” he told Tribune Business. “We had quite a few under contract. The big season for agents up there is the summer. If under sale in July, August on a house, it is probably not going to close, so you’re not going to get the fees and commissions. It goes on and on. We’ll just have to regroup.” Besides New Providence and Abaco, Mr Damianos said Eleuthera represented Damianos Sotheby’s other significant source of business. “Eleuthera was virtually unscathed and is up and running,” he added. “We anticipate it will take up some of the slack with Abaco. For people looking for the experience of being in The Bahamas on an Out Island, Eleuthera will pick that up.” Mr Damianos said the
company’s Abaco administrative staff had begun work in Nassau yesterday. He added that four of their children had been accepted at the Windsor Academy in Old Fort Bay, and his firm was now seeking to rent apartments for them. Dorian had produced some “heroes” within the realtor’s operations, Mr Damianos said, with employees such as Ashley Brown finding rental accommodation for storm victims in Nassau and Bianca Aranha organising evacuations and supplies from Spanish Wells. “It’s an amazing story, and I’m so proud of my staff here because so many of them have stepped up and become leaders in the rescue effort with Abaco,” he told Tribune Business. “It’s really been a massive effort. It’s amazing to me the amount of foreigners that have called me wanting to help The Bahamas.”
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Dorian victims told: ‘Don’t reach for sky’ on recovery finance FROM PAGE ONE to disrupt financial discipline”, Mr Bowe said bankers and other financial services professionals will have to adopt the role of
“counsellors” rather than “disciplinarians” when dealing with credit applications from Dorian victims. While the Central Bank has relaxed lending and debt servicing ratio
guidelines, as it did in the aftermath of previous hurricanes, Mr Bowe said the Bahamian commercial banking industry has yet to see loan applications “shooting in” because
Abaco and Grand Bahama residents are still focused on recovery. He further urged them not to “reach for the sky and fall short” with their credit requests, and advised that those affected by Dorian separate their immediate survival needs from these applications - which he argued should address longterm needs, such as home reconstruction. “That will be phase two,” Mr Bowe said of Dorianrelated credit applications. “The reality is that persons have immediate needs; food, water and dry clothing. As it relates to what we see people seeking loans for, that exercise has not commenced. “Those [Central Bank] guidelines and directives have been factored into our underwriting process, but the reality is at this point in time the number of requests has not started shooting in, and I think it is because people are effectively trying to make sure they can touch one.” The Central Bank has relaxed lending guidelines requiring borrowers to come up with a minimum 15 percent of equity, while waiving the maximum debt service ratio applied to distressed borrowers that prevents more than 40-45 percent of their income going to pay back loans. With the recovery process, and demand for credit, set to begin in earnest soon, Mr Bowe said: “The most important message is that it’s not an immediate
response. It’s going to be a response over time - the provision of credit and funding, and things people need to restore life. “No one wants to be lectured to at this point in time, but don’t allow circumstances to disrupt fiscal discipline. Our message at Fidelity is: Borrow for what you need, not what you want. What can you live with, and build upon with, as opposed to reaching for the sky and fall short.” The Fidelity chief financial officer expressed hope that Bahamians had some savings, or were able to rely on family members, friends and aid, to meet their immediate needs postDorian. However, with many relying on pay cheque to pay cheque living, this may not be possible thereby exacerbating the storm’s financial impact on the two hardest hit islands. “It’s not a lecture,” Mr Bowe told Tribune Business. “Some people will say: ‘I don’t need you telling me’. It’s not trying to be the disciplinarian, it’s being the responsible counsellor, saying: ‘While I understand the emotional response, let’s take a deep breath, count to ten, and let’s take a look at your long-term financial plans as you want them to be sustainable as opposed to non-viable.” Long-running efforts by the Central Bank and commercial banking industry to cut the non-performing loan overhang from the 2008-2009 recession are likely to take a major hit
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from Dorian, with recent reductions likely to be reversed due to the inability of businesses and employees to service their debts in the collapsed economy of Abaco and hard-hit Grand Bahama. Delinquent loans had hit their lowest level for a decade in July, with the Central Bank recording: “The improvement in banks’ credit quality indicators was sustained during the month of July, with total private sector arrears decreasing by $7.4m (1.1 percent) to $683.7m, and moderating by 14 basis points as a proportion of total private sector loans to 12.1 percent. “A breakdown by length of delinquency revealed that the contraction was attributed to an $11.8m (2.4 percent) fall-off in nonperforming loans - arrears in excess of 90 days, and on which banks have stopped accruing interest - to $480m, with the corresponding ratio softening by 21 basis points to 8.5 percent of total private sector loans. “In contrast, short-term arrears - 31 to 90 days [past due] - rose by $4.3m (2.2 percent) to $203.7m, elevating the attendant ratio by seven basis points to 3.6 percent.” Meanwhile, several commercial banks have already unveiled their own hurricane relief initiatives. Scotiabank (Bahamas) is offering clients on Grand Bahama and Abaco five month’s relief on their loan principal repayments until February 2020. Interest will be added to the loan if it is unpaid, with borrowers having the option to repay this at any time during the loan or when it ends. Scotiabank is also offering modified or extended payment terms on loans, credit cards and other lines of credit, and increased credit lines on existing cards. Bank of The Bahamas is touting several credit options for home repairs, and vehicle and furniture replacement, including low interest rate loans and repayment over 96-month (eight year) period via salary deduction. Proof of hurricane damages must be provided, and the offer lasts until October 30, while debt servicing and other guidelines must be met.
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info@globalcmltd.com.
THE TRIBUNE
Chamber chief: 50% of firms not totally insured FROM PAGE ONE businesses (SMEs) on the type of insurance and how to understand their insurance policy.” However, the fact that half the private sector likely lacked proper insurance coverage illustrates how long
‘Bottom feeders’ targeting Abaco FROM PAGE ONE
with the principal questions for the former being whether businesses and households decide to rebuild and the financial incentives they will receive from the government. “I think the way Abaco will be impacted is that people will have to decide if they want to rebuild, what the building code will be, and what incentives the government is going to give such as duty-free,” he said. “For them to rebuild the government will have to provide the infrastructure, which we have to assume will go back in, and build airports and all the stuff we need... People have to then decide if they’re going to rebuild, and if so on what terms, and what incentives there will be for them. People want to rebuild and move back to Abaco to enjoy the island and all it has to offer.” Mr Carey added that Dorian’s impact on Abaco and Grand Bahama had also reinforced the impression that Nassau, and New Providence, were a safer real estate investment proposition given that the island seemed to be impacted less by major storms. “Nassau is going to be shown to be a safe place to invest,” he told Tribune Business. “Go heavy on Nassau because people are confident that hurricanes don’t impact
Thursday, September 12, 2019, PAGE 7 and hard the economy’s post-Dorian road to recovery will be in Abaco and Grand Bahama. Many companies, lacking the necessary financing or will to rebuild, may simply elect not to reopen with all the issues that creates for employment on the two islands. Bahamas Insurance Association (BIA) executives earlier this week estimated that total Dorian-related claims payouts may exceed $500m, and Mr Beckles lamented that many SMEs have “no resiliency mechanisms built into their businesses”.
He added: “Many of them have to now start from scratch, and as a chamber we have to continually preach and teach the importance of utilising information technology, most particularly with regard to protecting their business and financial information.” Mr Beckles said the chamber is still assessing the primary needs for SMEs throughout the Dorianravaged areas, but added: “Many SMEs need access to financing, and I am glad that Central Bank has relaxed the financing requirements and lending conditions as a
Nassau like other islands. “That’s the message. You’ve got to believe in Nassau. Nassau is on an island and has a lot of city issues, like crime, congestion and power, and the need for proper rezoning and understanding density demand, especially for waterfront properties. You can’t tell someone they can only build six storeys high when they have to pay so much for the land.” The Better Homes and Gardens chief added that the influx of Dorian evacuees from Abaco and Grand Bahama had pushed “the demand for rental properties in Nassau to a very high peak”. He said affordability would likely become an issue for those evacuees who were now out of work, and queried: “Are government going to help to subsidise rents, or will the non-profits do that. The question needs to be answered by somebody. It’s not easy.” Mr Carey also suggested that some landlords may be reluctant to accept Dorian victims due to fears about their inability to pay rent, and that they may become tenants for some time. “From the real estate perspective, Nassau is in flux for sure,” he said. “We have huge demand for rental properties, but unemployment is going to increase. How can we absorb this new demand for jobs?” Mr Carey said several of his family members had to endure Dorian in Abaco. He said one cousin, who had been evacuated to
Florida, was unable to recall much about the storm while another was in a West Palm Beach hospital having undergone another surgery on Tuesday for a variety of ailments including a broken rib after “the roof blew off and he was sucked out”. “I think people are in shock. How many storms are like that?” Mr Carey said. “Ninety-nine percent of people I come into contact with refuse to give money to the government as they don’t trust them. “That’s scary. Big corporations are giving, but the average person prefers to give to HeadKnowles, Rotary and the Salvation Army - not the government. There’s a message there.” Mike Lightbourn, Coldwell Banker Lightbourn Realty’s president, said of Dorian’s impact on the industry in Abaco: “As far as I know most real estate offices have been smashed, if I can use that word. There are no phones, and What’s App seems to be working best. “It’s going to take a while, I’m afraid, and I don’t know how long it will be before we get infrastructure back in place - water, electricity. The market is dead now, as you can imagine. It’s going to be a slow climb back as people start to rebuild. “I would say the damage is almost immeasurable. I was told by someone who flew over Hope Town yesterday that ten percent of the houses have roofs on them.”
result of the storm.” He said the chamber will “have to speak to the commercial banks and other private lenders to where we can encourage them to lend some of this $2bn in liquidity at lower interest rates so that they can help support small businesses in their recovery efforts. It makes no sense for the Central Bank to relax the lending requirements if the commercial banks don’t follow suit and help out”.
Mr Beckles said the chamber was satisfied with talks with the government on post-Dorian exigency orders and other initiatives announced to aid businesses, and added that the rebuilding effort needs to be a “very strategic and well thoughtout process”. “As a chamber we are focusing fundamentally on showing our support and sympathy to those affected by the storm,” he
said. Grand Bahama Chamber of chamber members have revealed the private sector has suffered significant loss, Mr Beckles added, and that it was going to take some time for the economy to recover. “These are not just regular storms, but increasingly stronger and stronger storms that have been continually punching them in the mouth,” the chamber chief said.
PAGE 10, Thursday, September 12, 2019
THE TRIBUNE
US stocks notch solid gains as China eases trade tensions By ALEX VEIGA Associated Press STOCKS notched broad gains on Wall Street yesterday as investors drew encouragement from China’s move to exempt some US products from a recent round of tariffs. Technology, health care and communication services stocks powered much of the rally. The benchmark S&P 500 index, which had been essentially flat since Friday, is on track for its third straight weekly gain. Bond yields continued to climb. Oil prices fell, and investors also continued to favour smaller-company stocks. Yesterday’s push into technology companies marked a reversal from the first couple of days of the week, when traders bid up energy, financials and other sectors that had sold off in recent weeks. The tech sector is particularly sensitive to fallout from the trade war between Washington and Beijing because many big companies, such as Apple, manufacture products in China. “Today you have a little bit of a rotation back,” said Rob Haworth, senior investment strategist at US Bank Wealth Management. “You’re getting some movement that trade may not be as bad as we think, with China relieving some of the restrictions on its own tariffs.” The S&P 500 rose 21.54 points, or 0.7%, to 3,000.93. It’s the first time the index has finished above 3,000 points since July 30. The Dow Jones Industrial Average gained 227.61 points, or 0.8%, to 27,137.04. The Nasdaq picked up 85.52 points, or 1.1%, to 8,169.68. The Russell 2000 index of smaller-company stocks outpaced the broader
market, climbing 32.72 points, or 2.1%, to 1,575.71. Major indexes in Europe also finished broadly higher. Bond prices fell. The yield on the ten-year Treasury rose to 1.75% from 1.70% late on Tuesday. Financial markets have been roiled this summer as the trade war escalated. Investors worry the impact of tariffs and a slowing global economy could tip the US into a recession. The economic uncertainty has also become a drag on companies. Some of those trade concerns appeared to ease Wednesday after China said it will exempt American industrial grease and some other imports from tariff increases, though it kept in place penalties on soybeans and other major US exports ahead of negotiations next month. The move could indicate that both sides are settling in for an extended conflict even as they prepare for talks in Washington aimed at ending the dispute that threatens global economic growth. Investors continue to expect the Federal Reserve will cut interest rates at its meeting next week in another bid by the central bank to help maintain US economic growth. The Fed raised its benchmark interest rate in July by a quarter point. That was its first hike in a decade. Despite a rough and tumble August, the stock market is off to a solid September, with the S&P 500 coming off two weeks of gains. The Russell 2000 is the clear winner midway into this week, boasting a 4.7% gain. Smaller companies within the index are viewed as more insulated from the impact of volatile swings in the US-China trade war. They are also less affected by a stronger US dollar than
multinational companies. “The stronger dollar does tend to mean domestic companies that are wholly domestic are going to do better,” said Haworth. The S&P 500 is up 0.7% for the week and the Nasdaq is up 0.8%. The Dow is slightly stronger, notching a 1.3% gain. Apple was among the big gainers as investors snapped up technology stocks. Shares in the iPhone maker, which unveiled a variety of new products and services on Tuesday, climbed 3.2%. Chipmaker Intel gained 1.9%. Health care and communications stocks also made strong gains. Medtronic rose 1.1% and AT&T climbed 3.1%. The financial sector wobbled between small gains and losses after pulling out of an early slide. Wells Fargo added 1.1%. Real estate stocks finished flat. Shares in tobacco giants Altria Group and Philip Morris International rose after a brief slide following the Trump administration’s announcement that it is looking to ban thousands of flavours used in e-cigarettes amid an outbreak of breathing problems tied to vaping. State and federal health authorities are investigating hundreds of breathing illnesses reported in people who have used e-cigarettes and other vaping devices. No single device, ingredient or additive has been identified. Altria, which has taken a roughly $13bn stake in vaping giant Juul, rose 0.6%. Philip Morris gained 0.7%. The companies confirmed last month that they are in talks to merge after they split in 2008. Traders also weighed a mixed batch of corporate earnings and outlooks yesterday.
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THE TRIBUNE
Thursday, September 12, 2019, PAGE 11
FRIENDLY FIRE: IN TRADE FIGHTS, TRUMP TARGETS US ALLIES, TOO WASHINGTON Associated Press PRESIDENT Donald Trump has risked turmoil in the financial markets and damage to the US economy in waging his trade war with China, America’s top strategic rival. But Trump hasn’t exactly gone easy on America’s friends, either. From Europe to Japan, the president has stirred up under-the-radar trade disputes that potentially could erupt within weeks or months with damaging consequences. The administration is seeking, for example, to tax up to $25bn in European Union imports in a rift over the EU’s subsidies to the aircraft giant Airbus. It’s also threatening to impose tariffs to punish France for a digital services tax that targets US internet giants Google, Amazon and Facebook. And come November, Trump could take his aggressive policies into uncharted territory by imposing tariffs on foreign autos and auto parts. This move would risk igniting a damaging conflict with Japan and the EU as well as with lawmakers on Capitol Hill. The president’s rough tactics have already shaken markets and paralysed businesses that are struggling to decide where to expand or invest at a time when the rules of global commerce can be upended with one presidential tweet. Their uncertainty has contributed to a slowdown in global trade and growth. “He doesn’t seem to be deterred,” said William Reinsch, a former US trade official who is an analyst at the Center for Strategic and International Studies. “He seems to argue that these things are good and
tariffs under a rarely used provision of American trade law. Commerce Secretary Wilbur Ross duly decided that foreign cars did imperil
PRESIDENT DONALD TRUMP have a positive effect for America.” On trade, Trump is governing as he said he would. He casts the gaping US trade deficit — $628bn last year — as indisputable proof that America is being ripped off by its trading partners and that the free-trade deals his predecessors negotiated are rigged against US companies. As a candidate, Trump pledged to forge more US-friendly deals and to deploy tariffs to bend other countries to his will. Mainstream economists take a decidedly different view of America’s trade deficit. They say it reflects a fundamental reality that won’t yield to changes in trade policy: Americans consume more than they produce. And imports fill the gap. Among Trump’s numerous trade fights, his standoff with China has drawn by far the most attention. And for good reason: His administration is waging the biggest trade war since the 1930s against the world’s secondlargest economy in a fight over Beijing’s aggressive push to supplant America’s technological dominance. Trump has imposed tariffs on $360bn in Chinese imports and is preparing to tax the remaining $160bn in goods that have so far been spared. Yet Beijing is hardly the only US trading partner to
draw Trump’s fury. He has asserted that the EU’s trade policies are even worse than China’s and has threatened to use tariffs against the 28-country trade bloc, which has long been a vital US ally. “Sadly, in many cases it is our allies that took the greatest advantage of this country,” Trump said at a campaign rally on Monday. “Now you have a president who understands I am not supposed to be the president of the world. I’m supposed to be president of the United States.” Trump’s Office of the US Trade Representative has drawn up lists of $25bn in EU imports — including aircraft, gouda cheese, waffles and olives — that the US could hit with tariffs in retaliation for the bloc’s support of Airbus. Last year, the World Trade Organization ruled that the EU had indeed illegally subsidised Airbus. An arbitrator will decide how much compensation the United States is entitled to but could produce a figure that falls well short of what the Trump administration wants. A much bigger hammer could drop this fall. Trump last year ordered the Commerce Department to investigate whether imported autos and auto parts posed a threat to America’s national security — a designation that would allow Trump to impose
the United States. (The administration last year invoked the same justification to tax imported steel and aluminum.)
But the administration in May decided to postpone any action on autos for six months until mid-November.
PAGE 12, Thursday, September 12, 2019
UK court: Boris Johnson’s suspension of Parliament unlawful
THE TRIBUNE LONDON Associated Press A SCOTTISH court dealt another blow to Prime Minister Boris Johnson’s, pictured, Brexit plans yesterday, ruling that his decision to suspend Parliament less than two months before the UK is due to leave the European Union was an unlawful attempt to avoid democratic scrutiny. The government immediately said it would appeal, as the political opposition
demanded Johnson reverse the suspension and recall lawmakers to Parliament. With Brexit due in 50 days, the court ruling deepened Britain’s political deadlock. Johnson insists the country must leave the EU on Oct 31, with or without a divorce deal to smooth the way. But many lawmakers fear a no-deal Brexit would be economically devastating, and are determined to stop him. Their case got a boost late yesterday as the government gave in to a demand from lawmakers and published a document showing that a hard exit could lead to logjams for freight, shortages of some foods and medicines, major travel disruptions and possible rioting. The document’s release was the day’s second setback for Johnson and followed the surprise judgment by Scotland’s highest civil court, which found that the government’s action suspending lawmakers was illegal “because it had the purpose of stymieing Parliament”. Johnson claims he shut down the legislature this week so that he can start afresh on his domestic agenda at a new session of Parliament next month. But the five-week suspension also gives him a respite from rebellious lawmakers as he plots his next move to break the political impasse over Brexit and lead Britain out of the EU by Oct 31, “do or die”. But a panel of three Court of Session judges in Edinburgh said “the only inference that could be drawn was that the UK government and the prime minister wished to restrict Parliament.” One of the judges, Philip Brodie, said it appeared the suspension was intended “to allow the executive to pursue a policy of a no-deal Brexit without further parliamentary interference.” The judges declared the suspension “null and of no effect”, but said Britain’s Supreme Court must make the final decision at a hearing starting on Tuesday. Johnson denied he was being anti-democratic. “If opposition members of Parliament disagree with our approach, then it is always open to them to take up the offer that I’ve made twice now — twice! — that we should have an election,” he said in an online question-and-answer
session. “There is nothing more democratic in this country than a general election.” Opposition politicians, however, insisted that the government must recall Parliament. Lawmakers were sent home this week despite the objections of House of Commons Speaker John Bercow and opposition lawmakers, who held up signs in the chamber saying “Silenced”. “He should do the right thing now, which is to reopen Parliament, let us back to do our job and to decide what to do next,” said Labour Party Brexit spokesman Keir Starmer. Dominic Grieve, one of 21 lawmakers kicked out of the Conservative group in Parliament by Johnson last week after voting against the government, said it was possible the prime minister had misled Queen Elizabeth II — whose formal approval is needed to suspend Parliament — about his motives. He said if that turned out to be true, the prime minister would have to “resign — and very swiftly”. The court ruling came after more than 70 opposition lawmakers challenged the government’s decision to shut down Parliament until Oct 14 — just over two weeks before Britain is due to leave the EU. Last week, a court in Edinburgh rejected the lawmakers’ challenge, saying it was a matter for politicians, not the courts, to decide. But that was overturned yesterday on appeal. The British government said it was disappointed by the decision and would appeal to the Supreme Court. It noted that another challenge to the suspension, brought by transparency campaigner Gina Miller, was rejected at the High Court in London last week by judges who said the decision was inherently political and “not a matter for the courts”. Catherine Haddon, a senior fellow at independent think-tank the Institute for Government, tweeted that the Scottish ruling “does not (yet) change the prorogation itself. Though of course will add to pressure”. Britain’s 2016 decision to leave the European Union has left the country’s politics gridlocked and tested to the limit the UK’s largely unwritten constitution.
PAGE 14, Thursday, September 12, 2019
THE TRIBUNE
EUROPE EYES STIMULUS PLAN, BUT ULTRA-LOW RATES RAISE DOUBTS FRANKFURT Associated Press THE European Central Bank appears to be preparing a new shot of stimulus to try to energise the economy. But the move is sure to renew a nagging question: Can central banks do much good when rates are already ultra-low? Analysts say the bank
is likely to cut a key interest rate further below zero today and could take other steps, including restarting a bond-buying programme to pump newly created money into the economy. That could help the economy by making money cheaper to borrow, a policy that US President Donald Trump has repeatedly pushed the US Federal Reserve to emulate. Yet
some officials question how much good another large blast of stimulus will do. The possible stimulus has raised uncertainty about exactly how big a package might be decided at the gathering of the ECB’s 25-member governing council. It will be President Mario Draghi’s next-to-last meeting after an eight-year term as head of the monetary authority for the 19
countries that use the euro. Draghi gave clear hints in a June speech and after the bank’s last meeting, on July 25, that more action was on the way to counter the slowdown in economic growth, which has been blamed in large part on the US-China trade dispute. Analysts think the ECB will at least cut the rate on deposits that it takes from commercial banks from a
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ALL SHARE INDEX: CLOSE: 2,169.20 | CHG: -10.40 | %CHG: -0.48 | YTD: 59.75 | YTD%: 2.83 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 20.91 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.50 2.81 2.64 10.00 7.35 15.60 9.30 3.65 14.20
52WK LOW 3.50 19.17 4.90 4.46 1.00 0.19 2.00 9.17 6.15 3.60 7.00 2.35 1.75 7.51 6.10 12.10 6.20 3.01 13.00
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
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1000.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Class A Focol Class B
CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB
PREFERENCE SHARES
1.00 10.00 1.00
1.00 10.00 1.00
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
52WK HI 2.25 4.31 2.06 191.61 158.55 1.63 1.77 1.71 1.17 7.89 9.35 6.80 11.39 12.15 10.63 10.00 8.69 11.79
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.65 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing)
MUTUAL FUNDS
MARKET TERMS
LAST CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 5.22 11.06 6.16 4.12 7.50 2.93 2.64 10.45 7.00 15.55 9.20 3.40 14.20
CLOSE 4.10 17.43 6.00 5.92 2.46 1.80 5.14 11.06 6.16 4.07 7.50 2.98 2.64 10.36 7.00 15.55 9.20 3.35 14.20
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1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00
CLOSE 100.00
CHANGE 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund 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
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
6,900 5,000
8,250
VOLUME
NAV 2.25 4.31 2.06 191.61 158.33 1.63 1.77 1.71 1.17 7.89 9.35 6.80 11.39 12.15 10.63 9.92 8.68 11.38
EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.000 0.728 0.816 0.939 0.203 0.631
DIV$ 0.160 1.260 0.000 0.250 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.068 0.060 0.328 0.240 0.540 0.200 0.120 0.610
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000
P/E 17.2 18.7 N/M 16.0 N/M N/M -11.7 15.3 13.7 22.1 53.6 29.2 5.7 N/M 9.6 19.1 9.8 16.5 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 3.90% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 2.95% 0.00% 2.28% 2.27% 3.17% 3.43% 3.47% 2.17% 3.58% 4.30% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75%
MATURITY 19-Oct-2022
6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD%12 MTH% 2.15% 3.88% 1.61% 4.11% 1.53% 2.74% 3.85% 6.28% 7.12% 2.08% 1.91% 4.55% 1.45% 4.30% 1.67% 4.21% 4.75% 7.44% 5.53% 8.48% 8.12% 12.28% 3.03% 4.85% 9.83% 0.60% 3.92% 3.72% 2.47% 3.16% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%
NAV Date 31-Jul-2019 31-Jul-2019 26-Jul-2019 30-Jun-2019 30-Jun-2019 31-May-2019 31-May-2019 31-May-2019 31-May-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 31-Jul-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
current minus 0.4% to minus 0.5% or even minus 0.6%. The unusual negative rate — in effect a penalty aimed at pushing banks to lend spare cash rather than let it pile up overnight at the central bank — suggests how stretched monetary policy has become in the wake of the Great Recession. Beyond that, the ECB’s governing council could extend its current promise not to raise rates before mid-2020. And it could decide to resume bond purchases that were stopped in December before economic data took a turn for the worse. Florian Hense, an analyst from Berenberg Bank, said the ECB could purchase 30 billion euros ($33bn) in government and corporate bonds a month for at least 12 months. The bank purchased 2.6 trillion in bonds ($2.9tn) over almost four years, a step that drives up bond prices and drives down interest yields, since prices and yields move in opposite direction. Anticipation of more purchases has driven government bond yields across Europe below zero, meaning governments get paid to borrow and investors are willing to pay for a safe place to stash their money. The Fed is also moving in the direction of more stimulus, though Trump would like it to cut rates faster and has praised the ECB’s negative rates. The Fed cut its key policy rate in July for the first time in a decade, to a new range of 2% to 2.25%. Markets believe there is a near certainty the Fed will cut rates for a second time at its next meeting Sept 17-18. Trump yesterday tweeted
CHRISTINE LAGARDE about the benefits in his view of negative interest rates, calling the US Federal Reserve “Boneheads” for not pushing US rates down to “ZERO or less”. There are doubts, however, about how much monetary policy can do. Among the big issues hurting business confidence are political standoffs such as the trade war and Britain’s uncertain exit from the European Union. Credit is already cheap and abundant for governments and companies with good credit ratings. And low rates can have side effects, such as eroding bank profits and inflating the prices of riskier assets such as stocks. Draghi’s designated successor, Christine Lagarde, said during her nomination hearing last month that fiscal policies “need to be available to stabilize our economies through downturns and avoid overburdening monetary policies.” She urged governments to make probusiness reforms and spend on growth-friendly investment where possible. “I’m not a fairy,” she said, adding that “central banks are not the only game in town.”
Legal Notice
NOTICE ASHLEY HOLDINGS LTD. NOTICE is hereby given as follows: (a) Ashley Holdings Ltd. is in Voluntary Dissolution under the provisions of Section 138(4) of the International Business Companies Act 2000. (b) The Dissolution of the said Company commenced when the Articles of Dissolution were submitted to and registered by the Registrar General of the Commonwealth of The Bahamas. (c) The Liquidator of the said Company is Beatus Limited, P.O. Box N7776-348, N.P., Bahamas. Dated 10th day of September, 2019.
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333
Beatus Limited Liquidator
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US NUCLEAR LAB PARTNERS WITH UTILITIES TO PRODUCE HYDROGEN BOISE, IDAHO Associated Press THE US government’s primary nuclear lab is partnering with three energy utilities to find an economical way to use nuclear energy to produce hydrogen that can be stored and used to power everything from industry to personal vehicles, officials said yesterday. The US Department of Energy said the Idaho National Laboratory will work with Ohio-based FirstEnergy Solutions, Minnesota-based Xcel Energy, and Arizona Public Service. Energy Department officials say the projects are intended to improve the long-term competitiveness of the nuclear power industry by giving it another product to sell. “They will enable the production of commodities such as hydrogen in addition to electricity from commercial nuclear power
plants,” said Bruce Hallbert, director of the Energy Department’s Sustainability Program at the Idaho National Lab. “This project also accelerates the transition to a national hydrogen economy by contributing to the use of hydrogen as a storage medium for production of electricity, as a zero-emitting transportation fuel, or as a replacement for industrial processes that currently use carbon-emitting sources in hydrogen production,” he said. According to the US Energy Information Administration in a June tally, there were 97 nuclear reactors at 59 commercial power plants in 29 states producing about 20% of the nation’s energy. Most of the reactors are decades old, and many are having a tough time competing economically with other forms of energy production. Revamping the nation’s
PLUMES of steam drift from the cooling tower of FirstEnergy Corp’s Davis-Besse Nuclear Power Station in Oak Harbor, Ohio. The US government’s primary nuclear lab is partnering with three energy utilities to find an economical way to use nuclear energy to produce hydrogen that can be stored and used to power everything from industry to personal vehicles. nuclear power is part of a strategy to reduce US greenhouse gas emissions by generating carbon-free electricity with nuclear power initiated under the Obama administration and continuing under the Trump administration, though Trump has downplayed global warming. Hydrogen is abundant in the environment and is stored in water, methane and organic matter. The primary challenge is
economically extracting it. Most of the hydrogen currently produced in the nation comes from combining high-temperature steam with natural gas. Officials say nuclearproduced hydrogen is carbon-free. That’s opposed to fossil fuels such as natural gas, coal and oil that produce greenhouse gases that cause global warming. The Energy Department says that nearly all hydrogen produced in the US is
used for refining petroleum, processing food, producing fertilizer or treating metals. Vehicles using hydrogen fuel cells produce only water vapour and warm air as exhaust. Such vehicles are in use in California, which has 35 retail hydrogen stations open to the public. The first part of the project is for FirstEnergy Solutions to build a facility in 2020 that uses an electric current that splits water
into hydrogen and oxygen in a process called electrolysis. Power for the plant will come from the utility’s Davis-Besse Nuclear Power Station near Toledo, Ohio. “This is a great opportunity to show that hydrogen can be effectively generated in a carbon-free and safe manner,” said Raymond Lieb of FirstEnergy Solutions. Hallbert said it will be a learning experience, and knowledge gained there could be used at future efforts at the other two utilities. All three utilities have nuclear power plants but have unique markets, Hallbert noted, with economic motivations to take part in the program. FirstEnergy Solutions is competing with natural gas, Xcel Energy is in a wind energy market, and Arizona Public Service is close to the California energy market, Hallbert said.