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WEDNESDAY, MAY 22, 2019

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Stop the WTO ‘scare tactics’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

TO opponents must stop using “inaccurate scare tactics” to intimidate The Bahamas from joining world trade’s rules setter, a prominent local attorney charged yesterday. Carey Leonard, the former Grand Bahama Port Authority (GBPA) inhouse counsel, told Tribune Business there was plentiful evidence from elsewhere in the Caribbean to prove that small businesses and ‘Mom and Pop’ stores “will not be wiped out” upon this country becoming a World Trade Organisation (WTO). The now-Callenders & Co attorney, pointing out that FOCOL Holdings’ acquisition of Shell’s local

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Growth undershoot leaves ‘no room’ for further taxes CAREY LEONARD

• Ex-Port attorney: ‘Small man won’t be wiped out’ • Key reforms ignored without pressure of joining • Tells private sector: Stop being so frightened

assets demonstrated how Bahamian companies can buy-out multinational interests, said the recentlyreleased Oxford Economics report had reinforced his belief that the Government was right to finally complete this nation’s 18-year accession bid. He argued that “part of the struggle” was the private sector’s failure to hire advisers “who know what’s going on with the WTO” until the Bahamas Chamber of Commerce and Employers Confederation (BCCEC) commissioned that study. Bahamian businesses, Mr Leonard said, “might not be so frightened” of WTO and

its potential implications if they had engaged consultants to guide them through the process and explain what trade-related jargon meant. Warning that it was the private sector’s responsibility to provide the necessary “ammunition” to the Government’s WTO negotiating team, so that The Bahamas could obtain the best accession terms possible, the Callenders & Co attorney added that “moaning” and wishing to retain the economic status quo “doesn’t cut it”. He reiterated that The Bahamas would fail to enact the necessary governance, structural and ease

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of doing business reforms to improve this nation’s economic competitiveness without the pressure of WTO forcing it into change. “From what I’ve read so far,” Mr Leonard said of the report, “it seems to me we should be doing it because we as a country are not going to enact the necessary changes the Oxford Economics people talk about unless forced to do so by the WTO, quite frankly. “It will drive a lot of this; it won’t do it all, but it will force us into a position where we can finish the job. It’s quite clear that if we do it properly it can help us so

SEE PAGE 4

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamian economy’s 2018 GDP growth underperformance shows there is “no room” for new or increased taxes in next weeks’ budget, a former finance minister said yesterday. James Smith, who held the post from 2002-2007, told Tribune Business that a repeat of the 2018-2019 budget’s VAT hike and other tax increases would only throw the Bahamian economy further back - and halt its potential recovery - by depressing consumer demand even more. Suggesting that a budget which held steady, and kept the government’s threeyear fiscal consolidation plan on course without any new revenue measures or spending cuts, was likely the best option, Mr Smith said “it might be wise” for the Minnis administration

to take stock and assess which initiatives were working. The former Central Bank governor again voiced concerns that KP Turnquest, deputy prime minister and minister of finance, was too “obsessed” with meeting deficit reduction and other fiscal goals at the expense of using the budget to layout a road map for dealing with some of The Bahamas’ economic and social ills. Calling for the government to focus on reducing the near-25 percent unemployment rate among Bahamians aged between 15 to 24 years-old, Mr Smith said “debt-to-GDP ratios mean very little to an unemployed person and even less to a student coming out of high school”. He predicted that the Minnis administration was likely to focus on “tightening loopholes in the tax code” and “more

SEE PAGE 5

‘Think positively’: New, increased taxes are ‘economic suicide’ On Nassau Flight privatisation bid By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A CABINET minister yesterday brushed aside fears that Nassau Flight Services (NFS) privatisation could spark lay-offs, saying the stateowned entity needs “investment and modernisation”. Speaking with reporters ahead of a Cabinet meeting yesterday, Dionisio D’Aguilar, pictured, minister of tourism and aviation, said the government’s efforts to privatise NFS should be “no surprise”. “I have been talking about this in Parliament since we took office,” he added. “The government has always made it a policy that we feel that there are a number of government entities that are better run by the private sector. “Nassau Flight Services is small enough and can be easily absorbed or managed by a mid-level, mid-sized Bahamian company. It is our intention to empower and bring about entrepreneurship in some of our government entities, and we feel that Nassau Flight Services is right for this. The FNM had attempted this in the previous administration, and now we are

revisiting it. We put it out to an RFP.” Mr D’Aguilar continued: “We will see which companies are interested, and what proposals they will make. Government is always cash-strapped and so the company is in need of investment and modernisation. “We feel this is certainly an avenue worth exploring. When all the proposals have been received they will be carefully evaluated by an evaluation committee and a suggestion will be made to Cabinet. The final decisions will rest with Cabinet.” When asked whether staff lay-offs may result, Mr D’Aguilar said: “Everyone gets fearful that there is going to be downsizing and people will get laid off. That might be a result, but let’s think positively. This is an opportunity for a Bahamian company to come in. Let’s look at the positive side of it.” The Ministry of Tourism, in a recent statement, revealed that the government will consider a franchise (operating) agreement for Nassau Flight Services as well as its outright sale. Mr D’Aguilar previously told this newspaper that foreigners need not bid to take-over the stateowned ground handler.

THE government will “commit economic suicide” if it introduces new or increased taxes with next week’s budget, a governance reformer warning yesterday: “Everybody’s been taxed to death.” Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business that the Minnis administration has “no more headroom” when it comes to major taxation and revenue-raising initiatives given that last year’s VAT hike to 12 percent has already slowed the Bahamian economy.

• Governance reformer: ‘We’ve been taxed to death’ • ‘Wary’, but hoping for ‘fairly benign’ 19-20 budget • Calls for property tax on large Out Island holdings

ROBERT MYERS However, he backed the strategy - as indicated by KP Turnquest, deputy prime minister - of targeting untapped revenue sources already on the

government’s books which have largely been neglected by past administrations. Besides yacht charter fees and Airbnb-style vacation rentals, Mr Myers urged the government to go further by levying real property taxes on “large blocs of land” owned by Bahamians in the Family Islands. Bahamian-owned property outside New Providence is currently not subject to this levy, and he argued that in the absence of such carrying costs wealthy locals had been “disincentivised”

from undertaking activities to boost GFP growth and were instead merely “land banking”. Describing himself as “wary” over the upcoming budget given the number, and size, of tax increases and changes in prior years, Mr Myers also urged Bahamians to “stop talking” about income-type taxes and other structural reforms until research on their likely impact was completed.

SEE PAGE 4

Road expansions ‘a huge difference’ for commerce By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE road expansion package unveiled by the prime minister will “make a huge difference” to commerce and Bahamians’ “mental well-being”, a Cabinet minister said yesterday. Desmond Bannister, minister of works, told Tribune Business that when combined these projects represented the most “ambitious” road infrastructure work seen on New Providence for some years. He voiced optimism, though, that the Ministry of Works now has sufficient technical staff with the right skills to “make it happen” and ease the traffic

• Minister: Will aid ‘mental well-being’ • Among most ‘ambitious’ works packages • Nassau ‘not horse and buggy town’ congestion nightmare many Bahamian motorists face when commuting to work and school from southern New Providence on week day mornings. While declining to reveal the total capital investment required, on the basis that the figures have yet to be approved by the Ministry of Finance, Mr Bannister said the government would need to acquire land from private owners “in a number of areas” to facilitate the various road expansions. DESMOND BANNISTER

SEE PAGE 5

PAGE 2, Wednesday, May 22, 2019

THE TRIBUNE

BAHA MAR EXPANDS WITH SUGAR FACTORY BAHA Mar yesterday revealed it is expanding its culinary offerings with the opening of Sugar Factory, the American eatery and confectionary shop, in spring 2020. The restaurant will feature a full-service café, confectionary shop, retail shop and full-service carousel bar overlooking Baha Mar’s iconic fountains, along with the launch of the first-ever CandyOcean by Sugar Factory - an aquatic-themed Instagram experience. “We are thrilled to welcome Sugar Factory to Baha Mar, adding one of the world’s favourite confectionary shops to the collection of spectacular culinary offerings at the resort destination,” said Graeme Davis,

AN AERIAL view of the Baha Mar resort property. Baha Mar’s president. “This sweet treat aligns perfectly with the bright colour palette and

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entertaining amenities for our guests. We look forward to introducing CandyOcean by Sugar

Factory, and the new menu items exclusively available at Baha Mar, in a way that will be uniquely Bahamian

and entirely unexpected.” The first CandyOcean by Sugar Factory at Baha Mar will feature life-size sculptures of dolphins and sharks blowing bubble gum; flamingos frolicking on cotton candy clouds, and other sea life-inspired moments. Sugar Factory’s confectionary shop will feature its signature floor-to-ceiling candy wall with more than 500 types of candy, including a selection of novelty and bulk candy such as the Couture Pops. Completing the confectionary, the café will offer coffees, hot chocolate, frozen hot chocolate, homemade specialty rainbow doughnuts and pastries, in addition to homemade gelato. “When Baha Mar was first announced, we knew

we wanted to bring a Sugar Factory location there. Now, one of the hottest new resort destinations to visit in the world, Baha Mar’s cheerful and vibrant setting is the perfect place for our lively atmosphere and playful menu,” said Sugar Factory owner, Charissa Davidovici. “The new restaurant will be unique to its tropical location, yet stay true to the iconic and signature charm of Sugar Factory.” The dining room will seat 200 indoors and 100 guests on the outdoor patio, as well as 30 seats at an outdoor carousel bar and gazebo with views of Baha Mar’s fountain show. It will offer breakfast, lunch, dinner, brunch and late-night dining options.

Retiring Caribbean Court judge joins Lennox Paton A RETIRING Caribbean Court of Justice (CCJ) judge is joining a Bahamian law firm’s Nassau office as a consultant from September 2019 onwards. Justice David Hayton’s, pictured, practice will span Lennox Paton’s trust and litigation groups, while also enhancing the firm’s arbitration services. Brian Simms QC, Lennox Paton’s senior partner, said in a statement: “As a leading trust expert, Mr Justice Hayton has had a significant influence on trust and estate law in recent times.

We are honoured that he has chosen to join Lennox Paton in the next phase of his legal career, and to offer his wealth of expertise and talent to our firm’s clients.” Justice Hayton added: “I was impressed by the quality of cases handled by Lennox Paton, and of its advocates when appearing before me as an acting Bahamian Supreme Court judge. I am further impressed by the firm’s strong trust practice and the innovative approach it takes to solving clients’ problems. Given this, I am excited to be associated with such a dynamic firm as I return to private practice.”

He has served as a fulltime judge on the CCJ in Trinidad for 14 years. Justice Hayton joined the court at its inception in 2005, and is one of its longest-serving judges. He is also the only judge on the Court from the UK. As a member of the CCJ, he has been described by advocates and fellow judges as an “intellectual giant” and “a jurist of international repute”. Before joining the CCJ, Justice Hayton sat as a recorder (part-time Judge) in London from 1984 to 2000, and as an acting justice of the Supreme Court of The Bahamas in 2000 and 2001. Among his professional achievements, he became a Fellow of Jesus College

Cambridge; professor of law of King’s College London; and Bencher of Lincoln’s Inn (after practising in the Inn since 1970). Justice Hayton headed the UK delegation to The Hague conference on private international law XVth and XVIth Sessions, producing The Hague Convention on the law applicable to trusts and, on their recognition 1985 and the convention on succession to the estates of deceased -ersons 1989. He has also written or edited 15 books in the areas of trusts, property, succession and tax, and over 50 scholarly papers. He is thus arguably the leading authority in the UK and Europe on trust law.

THE TRIBUNE

Wednesday, May 22, 2019, PAGE 3

Govt will ‘explore options’ if web shop tax talks fail By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A CABINET minister yesterday confirmed the government will “explore its options” if it is unable to persuade the four web shop hold-outs to pay due taxes via negotiation. Dionisio D’Aguilar, minister of tourism and aviation, who has responsibility for gaming, said: “We are collecting 76 percent of the revenue we are supposed to be collecting with the three that are left. “This is a very frustrating process that we are going through, and I wish that

we could bring it to a conclusion because it’s a major distraction. It’s in the hands of the lawyers and we will see where that takes us.” In an interview with Tribune Business on Monday, Mr D’Aguilar had called for web shop hold-outs to “stop hiding behind the lawyers” and pay millions in taxes due under the industry’s mid-February settlement with the government. He said yesterday: “We should let that [negotiating] process play out and then government will explore its options if it’s not happy with the outcome. I don’t want to get into negotiating in the press and airing the

intimate discussions that are going on, so let’s let that process play out and then we come back and inform the Bahamian people.” Island Game, Paradise Game, Asure Win and the FML Group of Companies are understood to have taken the position that no retroactive taxes were owed for the 2018-2019 fiscal year’s first half. Under the mid-February settlement agreement, socalled “back taxes” for the first half of the 20182019 fiscal year - from July 1-December 31, 2018 - were to be levied at the old web shop taxation rate of 11 percent of gaming revenues.

Bahamian provider sponsors summit BAHAMAS-based Cloud Carib sponsored this month’s three-day Caribbean Telecommunications Union (CTU) conference in Port of Spain to reinforce its emergence as a regional player. The data manager, backup and disaster recovery service provider said attendees - including Caribbean government ministers - were given access to the “FutureScape” through being issued with digital passports possessing unique identification features. They were given a chance to access services allowing them to register a local business, obtain medical records online, and even purchase real estate using the FutureScape’s digital currency. These services were all made possible using information and communication technologies (ICT). Mark Arruda, Cloud Carib’s vice-president of solutions, said: “Using the Estonia model with technology partners like Cybernetica, Cloud Carib is poised to assist governments in making it easier for citizens to get the services they need.” “It’s important that ministers are driven to make interacting with government easier through digital transformation. Having regional partnerships with Cloud Carib, agencies are better equipped instead of outsourcing to the US.” Although the FutureScape experience was only a simulation, it was designed to show what is possible with a more efficient information and communications technology

MARK ARRUDA, Cloud Carib’s vice-president of solutions, performing a failover demonstration at CTU’s week-long ‘Caribbean FutureScape’ conference in Trinidad.

CLOUD Carib founder and chief technology officer, Stelios Xeroudakis, and Mark Arruda, vice-president of solutions, speaking with Jamaican minister, Fayval Williams, on improving services for a truly connected Caribbean. (ICT) space within the Caribbean if partnerships between government agencies and providers are capitalised on. The FutureScape environment orchestrated a mock disaster scenario in which government and public emergency services were tested, and required to display resilience and innovation in the face of a natural disaster. For the presentation, Cloud Carib partnered with Trinidad’s local Internet service provider, Telecommunications

Services of Trinidad and Tobago (TSTT) and bmobile, to demonstrate a failover where an application switches over to a redundant, stand-by server which would be activated during any abnormal interruption or termination of the previously active application or server.

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The Companies (Winding Up Amendment) Act, 2011 Montaque Corporate Partners Ltd. (In Liquidation)

Reg. No. 51828 C NOTICE TO CREDITORS TO PROVE DEBTS NOTICE is hereby given to any and all creditors having debts or claims against the above named Company in liquidation that they are required to submit to Mr. Edmund L. Rahming, the Liquidator, Proof(s) of their respective debt or claim against the above named Company by sending to the Liquidator on or before June 12, 2019. In default thereof such creditors will be excluded from the benefit of any distribution made by the Liquidator. Such Proof(s) may be in the form prescribed at Form 24 of the Companies Liquidation Rules, 2012 stating the creditor’s name, address, particulars of debt(s) or claims(s), documentation to prove debt(s) or support claims(s), and any entitlement to priority. Any creditor wishing to be provided by the Liquidator with a form may contact the Liquidator at No. 2 Caves Professional Centre, Caves Village, West Bay Street and Blake Road, P.O. Box SP-64064, Nassau, The Bahamas, telephone (242) 327 4001/3, email: info@intelisysltd.com, requesting the same. Dated this 22nd day of May 2019. Edmund L Rahming Official Liquidator

This was replaced by the new “sliding scale” operator tax, and its new rates of 15 percent and 17 percent, with effect from January 1, 2019. But Tribune Business revealed last month that Paradise Games and Asure Win had paid taxes due for July 2018 and then stopped, while FML and Island Game had yet to pay anything at that point. The quartet are basing their case on the fact that the old taxation structure, which required web shops to pay the greater of 11 percent of taxable revenue or 25 percent of earnings before interest, taxation,

depreciation and amortisation (EBITDA), was repealed when the 20182019 budget was passed at end-June 2018. Their attorney, Wayne Munroe QC, told this newspaper in late December 2018 that, as a result of that repeal and the attorney general’s previous undertaking not to enforce the new regime after the industry took the matter before the Supreme Court, no taxes were due or owing by the sector for the first six months of the current fiscal year. However, it is understood the government believes it has a solid legal position

to demand the payment of retroactive or “back” taxes under the settlement agreement’s terms by virtue of the Interpretation and Clauses Act’s section 22. This allows a repealed law, such as the old 11 percent taxation structure, to remain “in force” until the one replacing it takes full effect. “Where any written law repeals in whole or in part any other written law, and substitutes other provisions therefore, the repealed written law shall remain in force until the substituted provisions come into operation,” the Act states.

BAHAMIAN FIRM SETS UP CAPTIVE AFFILIATE NICHOL & Co, an actuarial and risk consulting firm, yesterday announced the opening of a Bahamian subsidiary focused on providing captive insurance services. Nassau Captive Management Services is designed to expand the services offered to international and local clients by providing captive insurance solutions to meet their risk management needs. A captive insurer is an insurance company established to insure the risks of its owners, thereby meeting their specific risk requirements. Rayon Brown, a consulting actuary with Nichol & Co, and a director of Nassau Captives, said the new subsidiary will enable the company to offer a full solution for clients with complicated risk financing requirements. He explained that the firm receives frequent requests from clients in the investment and capital markets industry for solutions to a variety of risk exposures, including political

RAYON Brown has 20 years’ experience in the insurance industry, of which several were spent working in the UK. and environmental risks. Mr Brown said more captive insurance providers are needed in the Bahamian financial services market because one factor holding the industry back is the absence of the “Silicon Valley” effect. He describe Bermuda as a risk management “Silicon Valley” because it has so many risks specialists that clients believe they will find a full solution to their problems just by landing on the island. “There is always some guy just down the road who can help with

a problem that your manager is not an expert in,” Mr Brown said. He added that the recent introduction of the Commercial Enterprises Act was a step in the right direction if it helps attract talent to The Bahamas in the short-term. However, Mr Brown said local private sector participation was key to ensuring longterm growth in the sector. “Clients need to know that there is a component of talent that remains here for the long haul,” he said. There are a number of factors why companies may find a captive solution attractive, including high or volatile premium rates in traditional markets; an inability to obtain cover in the traditional market for a variety of reasons; the need to design policy terms that better meet its requirements; the ability to retain more profits or improved cash flow due to having a better grasp on its true risk financing costs; possible tax advantages – provided the core risk management needs are met.

PAGE 4, Wednesday, May 22, 2019

THE TRIBUNE

Stop the WTO ‘scare tactics’ FROM PAGE ONE much. As a country we tend to do it last minute, and only when we’ve really got to do it to survive. Everything I’ve read so far I agree with.” The Oxford Economics study concluded that The Bahamas will only maximise the benefits of full WTO membership if it combines accession with broad-based domestic economic reforms that tackle this nation’s long-standing governance, transparency, red tape and ease and cost of doing business weaknesses. Should The Bahamas adopt this approach, Oxford Economics estimated it could lift the economy’s long-run average annual GDP growth rate to around two percent - higher than the 1.5 percent currently forecast by the International Monetary Fund (IMF). It also projected that this would help slash The

Bahamas’ national unemployment rate from its current ten percent to 6.5 percent over the next decade, driving it to its lowest level this century. “The positive effects would quickly build in subsequent years, lifting the average growth rate of the economy to two percent per annum across the forecast, compared with 1.5 percent per annum in the baseline. By the end of the forecast period in 2029, this leaves the economy 5.7 percent larger than baseline levels,” Oxford Economics said. Mr Leonard, noting the report’s conclusion that the government may have to relinquish its iron grip on the foreign direct investment (FDI) approval process in return for maintaining tariffs that protect Bahamian manufacturers, said the end to “opaque” rules and processes that this implies will be another benefit from full WTO membership.

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“The other point I have raised is everybody’s complaining that Wal-Mart is going to come in here,” he told Tribune Business, “but please remember Shell is now run by a Bahamian company in FOCOL, and Winn-Dixie, which owned City Markets, has been replaced by a Bahamian company in the shape of AML Foods, the Solomon’s owner. “It’s not the case that everybody is going to be forced out. The little man is not going to lose out. Go everywhere in the Caribbean and you still find ‘Mom and Pop’ operations. A lot of the scare tactics, and I call them scare tactics, are not accurate... Yes, there are going to be changes, but sometimes you need to change to improve things.” Mr Leonard questioned who was advising Super Value principal Rupert Roberts, who has come out strongly against The Bahamas joining the WTO, even

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)

In Voluntary Liquidation Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), Intercorp International Group Ltd. (the “Company”) is in dissolution. The date of commencement of the dissolution is the 17 day of May, 2019_________. Mr. Leonardo Sampio de Lacerda Braune is the Liquidator and can be contacted at Flat 7 Grosvenor Court, 99 Sloane Street, SWIX 9PF, London, England, United Kingdom. All persons having claims against the above-named Company are required to send their name, addresses and particulars of their debts or calims to the Liquidator before the 17th day of June, 2019

LEGAL NOTICE

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)

FHMVOFF Fund Ltd .(the “Company”)

Notice is hereby given that, in accordance with Section 138(8) of the International Business Companies Act, No.45 of 2000, the Dissolution of FHMVOFF Fund Ltd.has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 15th day of April, 2018.

Mr. Alceu Rodrigues Vasone Liquidator

NOTICE IN THE ESTATE OF GUNNARD ARMAND RUBINI, late and domiciled of 114th Street in Miami-Dade County, in the City of Miami in the State of Florida, one of the States of The United State of America Deceased IT IS HEREBY NOTIFIED, for the information of those it may concern, that all persons having claim or demand against the said Estate are required to send the same to the undersigned on or before the 16th day of June A.D. 2019 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 or 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 15th day of May, A.D. 2019 CALLENDERS & CO. CHAMBERS, One Millars Court, P.O. Box N-7117, Nassau, The Bahamas Attorneys for the Personal Representative

is and the language involved with WTO. “We need to be able to give our negotiating team the ammunition they need to be able to negotiate,” Mr Leonard continued. “Just moaning, saying we have to leave this where it is today, is doesn’t cut it. “We have to explain why we need certain things in WTO terms, and you cannot expect the government to know your business. That’s the one you’re running. Government doesn’t run your business. Before businesses go around proclaiming the end of the world, they really should get some good, proper advice.” Mr Leonard said claims that WTO membership will result in the complete free movement of labour were another “scare tactic”, and reiterated that if The Bahamas enacted the reforms it should be making anyway - regardless of whether WTO exists or not - this nation’s economy will enjoy

long-term benefits from accession. “If we don’t join WTO we won’t feel the need to make the changes, we won’t have the desire to make the changes and, at the end of the day, we will be far worse off for not joining,” he told Tribune Business. “That’s one of the primary drivers for why we should join the WTO.” Mr Leonard added that many Bahamians had forgotten this nation had already committed to lower/ eliminate tariffs and enact other trade-related reforms as a result of signing on to the Economic Partnership Agreement (EPA) with the European Union (EU) in 2008. The creation of agencies such as the Standards Bureau, and legislation to reform intellectual property rights, had already been driven by the EPA, and he added: “WTO is going to help us finalise all the other things we should be doing.”

NEW, INCREASED TAXES ARE ‘ECONOMIC SUICIDE’ FROM PAGE ONE

LEGAL NOTICE

though the Oxford Economics report confirms that retail and wholesale services can be reserved for Bahamian ownership only in the accession negotiations by not including them in this nation’s offer. “I’ve only been approached by one company to assist them with WTO, and the government’s negotiating team has already done 50 percent of the work we’ve wanted,” he said. One of the successes we had was we were able to refer to key terms of the WTO, talking about small island states and special economic development zones. “A part of the problem is our business community, until the Chamber of Commerce did something, has not bothered to engage the services of people who know what’s going on with WTO. There’s a lot we can do, and our businesses might not be so frightened if they understood what WTO

Voicing hope that the 2019-2020 budget will be “fairly benign” compared to the recent past, the ORG chief said: “Everything’s been all over the place so many times before, I’m not sure what to expect. I don’t expect VAT in the number we got the last go-around, but I’m a little wary of what they’re going to be doing.” He added that another VAT increase, or raising rates for any of the government’s other major revenue streams, would be akin to “committing economic suicide”. Mr Myers said: “People are taxed out. There’s no more headroom. “We’ve taxed everybody to death, and the economy is slowing because of it. There’s no more room to tax. They sure as hell can’t tax the consumer, the public and businesses any more. They’re taxed and tapped out. They have to clean up their own house and figure out how to get this money bleeding out of the stateowned enterprises (SOEs) and ministries. “The government has to tighten up its labour bill, payroll, and get the ministries and SOEs efficient. There’s no more headroom in the private sector and

public sector to keep taking while money is wasted away. That is asinine.” Mr Turnquest has repeatedly stated that there will be no further VAT increases, nor any income-type taxes, included in the 2019-2020 budget that he will present to the House of Assembly next week. Based on his remarks to-date, the government’s revenue strategy will likely be to plug loopholes and go after existing taxes that are not being properly collected or enforced. The recentlyannounced door-to-door real property tax assessment on New Providence represents one element of this plan, while shifting all customs processes to the digital world is another. Mr Turnquest last week revealed that the four percent yacht charter fee is one revenue source being targeted, amid suggestions there could be as much as $50m out there with just 30 percent of what is due being collected. The imposition of VAT, or another levy, on Airbnb-style vacation rentals is another tax-raising mechanism that has been signalled by the government. Mr Myers yesterday backed such a strategy, which is likely to

be combined with greater compliance, enforcement and administration to ensure the Public Treasury is collecting all revenues due to it. Suggesting that revenuesharing of the overflight fees for Bahamian airspace was another potential income source, he also called for the government to eliminate real property tax discrepancies that have resulted in properties with the same value paying completely different tax bills. “I still think they should be putting taxes on people that own large blocs of land that are not taxed,” the ORG chief argued. “People renting to Airbnb and not paying property tax on a second or third home, they should be contributing to the running of the country. “If you own 400-500 acres in the Family Islands, you should be paying property tax on it as you have disposable income. To not tax those people cause them to land bank is not doing anything for GDP or the economy. “If you cause them to develop it you get something for the economy. At no tax, you disincentivise people from getting off their backsides and putting that land to work. Those

people that have large tracts of land or multiple sites all over The Bahamas, there should be some tax.” Mr Myers also warned against any knee-jerk changes to the tax structure facing the Bahamian business community, or a move to income-type taxes, as these needed careful research and study of the likely economic impact first. “These things need significant economic research before you start messing with them,” he told Tribune Business. “We keep hearing that now: What about an income tax? Stop saying that around town. “Let’s not talk about that until someone does some research on what it looks like, and we have conversations with investors, the Bahamian private sector, citizens, permanent residents and second homeowners. We have to understand all these things and make sure we do not cut off our nose to spite our face.” Mr Myers also expressed hope that the budget will include measures to reduce the cost, and enhance the ease, of doing business in The Bahamas but said he was unsure about the government’s “capacity” to achieve this.

CONFERENCE HIGHLIGHTS KEY BAHAMAS PRODUCTS THE recent Society of Trust and Estate Practitioners (STEP) Caribbean conference allowed The Bahamas to spotlight the products that “set us apart from other financial centres”. The Bahamas Financial Services Board (BFSB) sponsored the conference, held at the Baha Mar resort, which attracted more than 200 legal, trust and wealth management practitioners

from across the globe. Tanya McCartney, the BFSB’s chief executive and executive director, said: “The Bahamas has a firm legacy in trust and estate planning. Expertise in this area is a core element of the Bahamas’ value proposition in international financial services. Hence sponsoring such an event as STEP Caribbean allowed us to put the spotlight on what sets us apart from other

financial centres.” STEP is the worldwide professional association for financial services executives who specialise in family inheritance and succession planning. This year was the fourth time that the Bahamas has hosted the STEP Caribbean conference. This year’s event highlighted the need for international financial centres (IFCs) to be forward thinking and innovative as they grapple with global regulatory changes. The theme, Mind the Gap: Future-Proofing IFCs, allowed delegates to discuss issues that affect Caribbean jurisdictions, in particular, especially on regulation, compliance and transparency. Brent Symonette, minister of financial services, trade and industry and Immigration, said in his opening address:

“Differentiation and redefining the role of the IFC of the future will be absolutely vital, and I remain convinced that forward-thinking IFCs like The Bahamas can position themselves in new ways to play a positive, specialist role for the management and preservation of wealth. “As one of the leading IFCs in the region, The Bahamas is in a good position. We will continue to strengthen this position to ensure that our financial services sector remains a key pillar of future economic growth.” Bahamian presenters included former minister of financial services, Ryan Pinder, now a partner at Graham, Thompson & Co, who spoke to the resilience of Caribbean IFCs and the need for them to adapt and survive. Attorney Cherise Cox-Nottage, of UBS Trustees (Bahamas); Heather Thompson of Higgs & Johnson; and Linda D’Aguilar, a partner in the Glinton, Sweeting and O’Brien law firm, all address the conference. A panel discussion on the challenges and advantages that millennials face while working in a professional services industry was led by Theo Burrows, partner, Graham Thompson; Brett Higgs, TSX Trust Company; Matthew Arnett, PO8; and William Seymour, Princess Margaret & Doctor’s Hospital.

THE TRIBUNE

Wednesday, May 22, 2019, PAGE 5

Road expansions ‘a huge difference’ for commerce FROM PAGE ONE He added that his ministry hoped to proceed with virtually all the projects announced by Dr Hubert Minnis in his national address on Monday night during the 2019-2020 budget year in a bid to further improve traffic flows in the densely populated Bahamian capital. “We’re not a horse and buggy town any more, and a lot of the road networks resemble old Nassau,” Mr Bannister said of the rationale for undertaking such an infrastructure investment. “The reality is the nature of the challenge people have in getting around, having regard to the amount of traffic we have and the vehicles that continue to come online. “You go on Gladstone Road from 7am to 10am any morning, and you find traffic backed all the way up. That’s not good for

commerce, the mental wellbeing of Bahamians, and we’re going to do our best to make a difference. If we get most of it done we will make a huge difference.” Among the upcoming works highlighted by the prime minister is the planned widening of the Gladstone Road corridor from two lanes to four, with design work for this project set to begin soon. The government also intends to extend the existing Milo Butler Highway southwards from Carmichael Road to Cowpen Road. This project will comprise a new four-lane dual carriageway, together with roundabouts and other traffic enhancing elements, while the section of Baillou Hill Road closest to Cowpen Road will also be widened from two lanes to four. Mr Bannister said he was unable to provide figures on the total cost/investment because the Ministry of

Growth undershoot leaves ‘no room’ for further taxes

JAMES SMITH FROM PAGE ONE aggressively” cracking down on tax cheats in the 2019-2020 budget, combined with further recurrent and capital spending restraint given that the Fiscal Responsibility Act mandates that it further narrow the fiscal deficit to a sum equivalent to one percent of GDP - around $110m - in the upcoming year. “Having said that, as a Bahamian, I would prefer to see more emphasis placed on how resources are allocated to grow the economy in such a way that it absorbs much of the unemployment among young people and creates sustainable jobs,” Mr Smith told Tribune Business, “to address those issues of great concern to different segments of society. He added that such a focus would ensure that school leavers were literate and trainable, and had the skills that private sector employers are seeking. “It’s what one would expect to hear,” Mr Smith said. “I don’t think, important as it is, that debt-to-GDP ratios mean very much to an unemployed person and even less to a student coming out of school.” He added that while the Minnis administration, now two years into its term in office, was beginning to focus on “meeting real needs” in Bahamian society, it had

yet to produce a “guide and pathway” for doing so. And, with the Bahamian economy’s 1.6 percent real GDP growth for 2018 undershooting the International Monetary Fund (IMF) and government’s own estimates of 2.3 percent and 2.2 percent, respectively, Mr Smith argued that there was virtually no scope for new and increased taxes in next week’s budget. “If the economy has grown by less than two percent there isn’t further room for taxation,” he told Tribune Business. “You can only do that by depressing consumption, which will only push the economy back further, so I hope they don’t attempt anything like that. I don’t know if there’s that much room left. “There are signs of a comeback, particularly with the major industry, tourism, and a large part of it is explained by Baha Mar, which is holding its own. It might be wise for the government to hold still for a year and see exactly which way they’re going. “By changing so many variables as they’ve been doing it’s very hard to track where the impact of policy is going, and whether they need to do it or not. There may have to be adjustments in time, as it is difficult to understand what is having the greatest impact.”

Finance is still vetting the proposed sums as part of its 2019-2020 budget planning exercise. “We’ve submitted our figures to Finance, and those figures come up to all the work we propose to do,” he added. “It’s not prudent for a minister to speak about those figures before they’re approved by Finance. Just about all of the things we’re hoping to proceed with, he’s [the prime minister] announced based on what we’ve given him for the year. “A number of them are big ones. The challenge in getting these big things going has been the staffing at the Ministry of Works; to get the preliminary engineering and architectural submissions out before we do any major works. “Now, as of Monday, we’re going to have a fairly adequate staff and next year anticipate being able to do a lot more work than we did this year,”

Mr Bannister continued. “Cabinet has approved the hiring of a lot of technical staff. I’m really excited. We’ve gotten any number of young Bahamian professionals joining. “I don’t recall us doing anything as ambitious as this in New Providence for quite a while, but we believe we have the team that can make it happen.” The Inter-American

Development Bank (IDB) funded New Providence Road Improvement Project, whose costs soared from an initial $40m in 2001 to around $200m by the time it was completed at the end of the last Ingraham administration, is likely the last time the island will have been home to such extensive roadworks. Mr Bannister, meanwhile, said the Ministry of

Works was “also hoping we can deal with Village Road”. Acknowledging that the government will have to acquire “a lot of land” in the area to facilitate the project, he added: “We’re going to do some widening, some turning, make Village Road a whole lot more accessible and provide better access to transportation using it.”

PAGE 6, Wednesday, May 22, 2019

THE TRIBUNE

US delay to Huawei ban gives tech sector time to adjust By JOE MCDONALD AND FRANK BAJAK Associated Press THE United States is delaying some restrictions on US technology sales to Chinese tech powerhouse Huawei in what it calls an effort to ease the blow on Huawei smartphone owners and smaller US telecoms providers that rely on its networking equipment. The Trump administration insists the sanctions are unrelated to its escalating trade war with China, and many analysts see it as aimed at pressuring US allies in Europe to accede to Washington’s entreaties to exclude Huawei equipment from their next-generation wireless networks, known as 5G. The US government on Monday amended last week’s order restricting all technology sales to Huawei, the world’s biggest maker of mobile network gear and the number two smartphone brand. It granted a temporary, 90-day exemption, but only for existing hardware and software. It also said that grace period could be renewed. Shares in tech companies rose yesterday after some

RESIDENTS enjoy a cool evening near a Huawei store in Beijing. The Trump administration’s sanctions against Huawei have begun to bite even though their dimensions remain unclear. US companies that supply the Chinese tech powerhouse with computer chips saw their stock prices slump on Monday, and Huawei faces decimated smartphone sales with the anticipated loss of Google’s popular software and services. Photo: Ng Han Guan/AP news organisations erroneously reported that the amended order amounted to a blanket reprieve for Huawei. “It’s just housekeeping. It’s not a capitulation. It’s a very pragmatic solution to avoid unintended consequences to third parties,” said Kevin Wolf, who oversaw a related case involving China’s number two telecoms supplier ZTE as assistant secretary of commerce for export administration under President Barack Obama. The US claims Huawei

NOTICE

NOTICE is hereby given that BEYONZCA FEDERICK of Jones Town, Eight Mile Rock, Grand Bahama, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

is a cybersecurity risk and has targeted it against the backdrop of a wider battle with China over economic and technological pre-eminence that has included tariffs on billions worth of trade and limits on business. US officials say Huawei is legally beholden to China’s repressive rulers but have provided no evidence that it has intentionally allowed its equipment to be used for espionage. Huawei founder Ren Zhengfei sought to put a brave face on the situation, saying yesterday that

the company has “supply backups” if it loses access to American components. Huawei Technologies Ltd relies on Google’s Android operating system and US components suppliers for its smartphones. “I should say this impact will be very big, but Google is an extremely good company,” Ren Zhengfei told Chinese reporters. “We are discussing emergency relief measures,” he added, without giving details. Industry analysts say Huawei might struggle to compete if it cannot line up replacements for Google services that run afoul of the US curbs. Google says its basic services still will work on existing Huawei smartphones. However, the company would be barred from transferring hardware or software directly to Huawei. That would affect maps or other services that require the American company’s support. In Brussels, a senior Huawei European representative lashed out at the US sanctions. “This is dangerous. Now it is happening to Huawei. Tomorrow it can happen to any other international

NOTICE

NOTICE is hereby given that ALTON PRESENDIEU of Jennie St Balfour Avenue, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

TUESDAY, 21 MAY 2019

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,180.38 | CHG: 12.78 | %CHG: 0.59 | YTD: 70.93 | YTD%: 3.36 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.00 5.50 2.50 2.00 3.35 11.05 6.16 4.64 12.50 2.74 1.96 9.02 7.00 15.60 7.25 4.05 14.00

52WK LOW 3.50 19.17 4.90 3.50 1.00 0.19 2.00 8.89 6.12 3.54 10.00 2.35 1.60 7.25 6.10 11.00 6.20 3.01 12.51

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1.00 103.00 100.00 100.00 105.00 103.00 100.00 10.00 1.01

1000.00 1000.00 1000.00 1000.00

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 Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

E J K L M N

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

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 4.15 17.43 6.00 5.40 2.50 1.98 2.22 11.05 6.16 4.48 10.00 2.75 1.85 9.38 7.00 14.49 7.25 3.49 14.00

CLOSE 4.15 17.43 6.00 5.40 2.50 1.98 2.22 11.05 6.16 4.48 10.00 2.73 1.85 9.41 7.00 15.50 7.25 3.49 14.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.02 0.00 0.03 0.00 1.01 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 50

5,400

1,000

VOLUME

EPS$ 0.167 0.932 -0.306 0.323 0.098 0.000 -0.431 0.708 0.480 0.154 0.627 0.102 0.209 0.000 0.636 0.834 0.950 0.205 0.631

DIV$ 0.130 1.260 0.000 0.250 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.068 0.060 0.328 0.240 0.500 0.200 0.090 0.600

P/E 24.9 18.7 N/M 16.7 N/M N/M -5.2 15.6 12.8 29.1 15.9 26.8 8.9 N/M 11.0 18.6 7.6 17.0 22.2

YIELD 3.13% 7.23% 0.00% 4.63% 0.00% 1.01% 0.00% 6.43% 3.57% 2.68% 6.20% 2.49% 3.24% 3.49% 3.43% 3.23% 2.76% 2.58% 4.29%

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%

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%

############### 30-Jul-2018 ############### 30-Jul-2020 ############### 30-Jul-2022 ############### 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% 0.32% 3.95% 0.62% 3.20% 0.69% 2.56% 2.06% 4.97% 4.52% 0.96% 1.57% 4.58% 0.99% 4.25% 1.32% 4.12% 3.22% 5.64% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%

NAV Date 31-Mar-2019 31-Mar-2019 29-Mar-2019 31-Mar-2019 31-Mar-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 30-Apr-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 28-Feb-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019

MUTUAL FUNDS 52WK HI 2.22 4.27 2.05 188.32 158.55 1.62 1.76 1.70 1.15 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.56 1.68 1.64 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 2.22 4.27 2.05 188.32 154.49 1.62 1.76 1.70 1.15 7.54 8.73 6.65 10.66 11.79 10.48 9.92 8.68 11.38

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

company,” Abraham Liu, Huawei chief representative to the European Union’s institutions, told reporters. China’s government repeated its promise to defend Chinese companies abroad but gave no details of what Beijing might do. The 90-day grace period announced on Monday by Washington exempts from US licensing requirements any technology needed to maintain and support existing networking equipment and smartphones. It also authorises US providers to alert Huawei to security vulnerabilities and engage the Chinese company in research on standards for next-generation 5G wireless networks. “This licence will allow operations to continue for existing Huawei mobile phone users and rural broadband networks,” Secretary of Commerce Wilbur Ross said in a statement. But still in place are requirements that government licences be obtained for any sales to Huawei unrelated to existing equipment. The Commerce Department said the grace period would allow rural US telecom operators that depend on Huawei equipment for “critical services” time to make other arrangements. Companies that supply software — such as Google for Huawei’s Android smartphones — can continue to provide updates. Britain’s cybersecurity agency issued guidance saying the temporary reprieve means “people should be able to update their handsets as normal”. In a report, the global risk assessment firm Eurasia Group said that if the sanction process helps persuade European network carriers to also shun Huawei equipment, a full ban on purchases of US technology products and services could be avoided. The move to delay the restrictions on Huawei may follow a familiar script with the Trump administration,

which in its attempt to change the US’ trade relations with major economies like China and Europe has often announced restrictions or tariffs only to delay their implementation. That increases pressure on the other side but also gives them an incentive to negotiate. It hasn’t always worked. The US has announced new tariffs on European and Chinese goods several times, only to see them retaliate with tariffs on US goods. That has raised the stakes in the trade wars, hurting global commerce and economic growth. As China looks to respond to President Donald Trump’s move against Huawei, Apple makes a prominent potential target for retaliation. Apple is Huawei’s main American rival in smartphones and its iPhones are assembled in China. The country is also Apple’s number two market after the United States. Attacking Apple might be politically awkward for Chinese leaders who have accused Washington of mistreating Huawei. Business groups say Chinese officials are trying to reassure American companies they are welcome despite the tariffs war. But regulators have an array of tools including tax and safety inspections that can hamper a company with no official acknowledgement it is targeted. Huawei’s US sales collapsed in 2012 after a congressional panel told phone carriers to avoid the company and its smaller Chinese competitor, ZTE Corp, as security threats. Despite that, Huawei’s sales elsewhere have grown rapidly. The company reported earlier its global sales rose 19.5% last year over 2017 to 721.2 billion yuan ($105.2bn). Huawei smartphone shipments rose 50 percent over a year earlier in the first three months of 2019 to 59.1 million yuan.

NOTICE

NOTICE is hereby given that SHERMAN TROY FERGUSON JR of Block 48 Yeaoman Woods,Pin Tail Street, Freeport, Grand Bahama is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that VERONICA JEAN SIMON of Bacardi Road, Miller’s Avenue, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 22nd day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that ANTONIA PATRICE ORDELUS of Gamble Heights, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 15th day of May, 2019 to the Minister responsible for Nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

THE TRIBUNE

Wednesday, May 22, 2019, PAGE 7

Tech rebound powers US stocks higher, snaps 2-day S&P slump

By DAMIAN J TROISE AND ALEX VEIGA Associated Press TECHNOLOGY companies helped power stocks broadly higher on Wall Street yesterday, snapping the market’s two-day losing streak. The rally followed the US government’s decision to temporarily ease off proposed restrictions on technology sales to Chinese companies. The news gave a boost to technology sector stocks, which took steep losses a day earlier when the Trump administration announced curbs on technology sales, aimed primarily at Chinese telecom gear maker Huawei. About one-third of that company’s suppliers are American chipmakers and the move would crimp sales for companies including Qualcomm and Broadcom. Both companies posted gains yesterday, along with other chipmakers. The US government’s decision to issue a 90-day grace period on technology sales to Huawei, ZTE and other Chinese companies also relieved worries on Wall Street about yet another escalation in the trade war between the US and China. “I’m a bit surprised that the bounce back has been as strong as it has been,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab. “It speaks to the fact that we’re still in a bull market and, in general, the economics are still pretty solid, and the markets are happy to move up on any sort of positive news, especially if it looks constructive toward trade.” The S&P 500 index rose

PHOTO screens above trading posts on the floor of the New York Stock Exchange show the NYSE logo. US stocks rallied in morning trading on Wall Street yesterday after the US government temporarily eased off its proposed restrictions on technology sales to Chinese companies.

24.13 points, or 0.9%, to 2,864.36. The Dow gained 197.43 points, or 0.8%, to 25,877.33. The technology heavy Nasdaq composite climbed 83.35 points, or 1.1%, to 7,785.72, erasing a good chunk of Monday’s losses. The Russell 2000 index of small companies picked up 20.28 points, or 1.3%, to 1,545.25. Major stock indexes in Europe rose. Bond prices fell, boosting the yield on the ten-year Treasury to 2.43% from 2.41% late on Monday. Heightened tensions over trade have stuck the market in a rut for the last two weeks — the S&P 500 is down 2.8% for May, although the benchmark index still shows a gain of 14.3% for the year. The trend is a change from the relative calm that dominated markets

earlier this year, when a trade agreement seemed to be in the works. The S&P 500 has twice dropped by at least 1.5% this month, as many times as it had in the first four months of the year. “The trade negotiation with China is pretty much the big elephant in the room and continues to be,” Frederick said. “Which is why we’re going to continue to see above average volatility like we’ve seen for the last two weeks, and it’s a kind of treacherous spot for people to be in right now.” The dispute between Washington and Beijing grew more heated the last two weeks after the Trump administration made good on a threat to raise tariffs on Chinese-made products and China retaliated with tariffs of its own. The US government’s restrictions on technology sales to Huawei added more

anxiety for traders already worried about further escalations in the trade dispute. But the temporary delay on the restriction of sales to Huawei announced yesterday, as well as the government saying that the 90-day grace period could be renewed, appeared to alleviate some of those concerns. The rally particularly

benefited chipmakers, which had slumped on Monday. Intel rose 2.1% and Texas Instruments added 2.2%. Broadcom, which gets about half of its revenue from China, gained 1%. Qualcomm, which gets more than half of its revenue from China, rose 1.5%. Technology stocks, especially chipmakers, have already been under increased pressure because of the ongoing trade war. The latest move to restrict some technology sales could cut into key revenue sources. Apple rebounded 1.9% after falling a day earlier. Health care, financial and industrial stocks also helped drive the market higher yesterday. Anthem climbed 4%, Wells Fargo added 1.9% and Boeing gained 1.7%. Household goods makers lagged. Tyson Foods slid 1.5%. Gains in consumeroriented stocks were held back by disappointing quarterly financial results from a couple of big department store chains. JC Penney slid 7% after it reported declining sales and a surprisingly wide loss.

The retailer attributed part of the weak quarter to its no longer selling major appliances and furniture. Kohl’s plunged 12.3% after its results fell short of forecasts amid slumping sales. The company also cut its profit forecast for the year. The latest corporate results nearly cap an earnings season that has been better than the severe earnings recession that Wall Street initially feared. Energy futures finished mixed yesterday. Benchmark US crude slipped 0.2% to settle at $62.99 per barrel. Brent crude, the international standard, closed 0.3% higher at $72.18 per barrel. Wholesale gasoline gained 0.5% to $2.02 per gallon. Heating oil rose 0.3% to $2.08 per gallon. Natural gas fell 2.2% to $2.61 per 1,000 cubic feet. Gold slid 0.3% to $1,273.20 per ounce, silver dropped 0.2% to $14.41 per ounce and copper gave up 0.4% to $2.72 per pound. The dollar rose to 110.63 Japanese yen from 109.96 yen on Monday. The euro weakened to $1.1158 from $1.1168.

PAGE 8, Wednesday, May 22, 2019

THE TRIBUNE

Biden finds unexpected success with low-dollar donors WASHINGTON Associated Press JOE Biden is finding unexpected online fundraising success from low-dollar donors, with more than 97% of his contributions coming from those who gave less than $200, his presidential campaign announced yesterday. The former vice president, who last month raised $6.3m in his first 24 hours as a candidate, was widely expected to do well with conventional big-dollar Democratic donors, who have lasting loyalty to President Barack Obama’s number two. But it was an open question whether he’d be able to raise small amounts online from the party’s base, a metric that is often touted as a demonstration of grassroots support. His campaign says the newly released figures are a clear sign that he will be able to compete not just with

DEMOCRATIC presidential candidate, former Vice President Joe Biden meets with attendees during a campaign rally at Eakins Oval in Philadelphia on Saturday. Photo: Matt Rourke/AP Sen Bernie Sanders of Vermont and former Rep Beto O’Rourke of Texas, whose online fundraising operations led the Democratic field last quarter, but also with President Donald Trump. “We’re continuing to build a robust digital operation that brings new voters to Team Joe and puts our campaign in a position of strength to take on Donald Trump,”

said Biden digital adviser Brandon English. “On Day One, a record-breaking 65,000 people found us online and donated to Joe Biden. These are people we didn’t have email addresses for 24 hours earlier.” The campaign says nearly two-thirds of Biden’s donors gave a total of less than $25, with teachers comprising the largest professional block of contributors. But while Biden’s campaign is happy to talk about the percentage of donors who have given small contributions over the internet, including 96,000 who gave during the first 24 hours of his campaign, they won’t say how much has been raised online. Meanwhile, much of his recent campaign schedule has centered around highdollar donor events in Los Angeles and Florida. Sanders, a prolific online fundraiser, took in more than $15m last quarter from those who gave less than $200, including nearly $6m collected from about 220,000 donors in the 24 hours after launching his campaign. O’Rourke took in about $5.5m from donors who gave less than $200 during the first quarter, according to Federal Election Commission records. Many candidates in the race have spent years building out their online fundraising operations, which often target prospective donors through social media ads and emails that ask for a small contribution.