SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: esmart@caricris.com

▪ Sagicor Life Jamaica Limited’s rating reaffirmed at jmAAA

▪ National Flour Mills Limited’s rating reaffirmed at CariA-

▪ HMB Limited’s proposed collateralised mortgage obligation rating assigned at CariAA- (SO)

▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-

▪ Government of Barbados’s local currency rating upgraded to CariBB

▪ PanJam Investment Limited’s initial rating assigned at CariBBB+

▪ Saint Lucia Electricity Services Limited’s rating reaffirmed at CariBBB ▪ TSTT’s existing rating reaffirmed and new proposed bond issue rating assigned at CariA ▪ Jamaica Public Service Company Limited’s initial rating assigned at CariBBB+

▪ Endeavour Holdings Limited’s rating reaffirmed at CariA+

▪ Island Car Rentals Limited’s initial rating assigned at jmBBB+

▪ The Pegasus Hotels of Guyana Limited’s rating upgraded to CariBBB

▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+

OUR UPCOMING WORKSHOPS!

Fundamentals of Financial Analysis 28th & 29th March 2019 Trinidad

Benefits of a CariCRIS Rating for a Bond Issue:

Latest Rating Actions by CariCRIS

• Widen the range of possible investors to ensure success of the issue

• Help investors to determine if the bond issue is a wise investment

• Provide a clear understanding of the creditworthiness of the issuing

firm and the factors that will impact its performance

DATE

WORKSHOP

COUNTRY

Please visit our website at www.caricris.com for the detailed Rationales on these and other ratings

CariCRIS’ credit ratings and daily Newswire can also be found on the Bloomberg Professional Service.

REGIONAL

Trinidad and Tobago

NLCB official: Question mark over Lotto booth robberies

ARE National Lotteries Control Board (NLCB) agents arranging robberies at

their own booths? The NLCB believes this may be so.

Max 737 jets banned

THE Trinidad and Tobago Civil Aviation Authority (TTCAA) last night issued

an order prohibiting the Boeing 737 Max 8 and Boeing 737 Max 9 aircraft

in T& T's airspace.

Refinancing plan close for US$850m bullet payment

WITH about five months to go before the bullet payment on its US$850

million bond is due, Trinidad Petroleum Holdings (TPH), the successor

holding company which replaced Petrotrin last year, is close to

completing the refinancing of the bond.

ANSA Coatings enters Cuba

LOCAL paint manufacturer, ANSA Coatings Limited, has entered the

Cuban market. Yesterday, the company loaded a container with over

€500,000 worth of Sissons Paint products bound for Cuba. Witnessing the

loading, held at ANSA Coatings Industrial Park, Tumpuna Road, Guanapo,

Trade Minister Paula Gopee-Scoon congratulated the company on

penetrating an additional market.

RFHL rises to $120

OVERALL Market activity resulted from trading in 13 securities, of which

three advanced, three declined and seven traded firm.

Scotia’s posts $184m first quarter income

SCOTIABANK TT's after tax income has risen by 27 per cent, or $39 million,

to $184 million for the quarter ending January 31. The bank earned $145

million for the same quarter in January 2018.

Prestige profits drop 20%

Kentucky Fried Chicken (KFC), a brand of Prestige Holdings Ltd’s slew of

fast food restaurants in the country, last year did quite well in the first

quarter, but struggled to maintain its momentum throughout the rest of

last year.

Jamaica

Mark Golding attacks Jamaica'slow growth and inequality

Shadow Finance Minister Mark Golding began his budget speech

yesterday by noting “the burning issue of low growth”, observing that

even what he called the “modest but achievable” growth targets the last

PNP Administration had set for the years 2013/2014 to 2019/2020 had now

slipped — and that if they had been achieved there would have been

more money to spend on wages, hospitals, farm roads and water systems.

TAJ up for modernisation this fiscal year

The Ministry of Finance and the Public Service hopes to modernise the Tax

Administration of Jamaica (TAJ) during the fiscal year 2019/20.

A history-making budget

History was created on 7 March 2019, when Minister of Finance and the

Public Service Dr Nigel Clarke made his 2019/20 Budget Presentation in

Parliament and announced a $14-billion reduction in taxes.

Barbados

Cemented

Rock Hard Cement, owned by Barbadian construction magnate Mark

Maloney, has won round-one of a trade dispute with the Arawak Cement

Company.

Barbados backlisted

BARBADOS HAS BEEN blacklisted by the European Union (EU), and faces

the threat of “sanctions”, including reduced funding.

Barbados Records Solid 2018 Tourism Performance

CEO of the Barbados Tourism Marketing Inc. (BTMI), William ‘Billy’ Griffith,

has revealed that the island enjoyed a 2.7 per cent increase in stay-over

arrivals last year, compared to the corresponding period in 2017.

Guyana

Guyana on verge of sharp economic growth

The Caribbean Development Bank (CDB) says Guyana is on the verge of

a sharp increase in economic growth this year but immediate prospects

partly depend on ending political uncertainty.

Guyana Continued

Repsol to drill later this year

Houston, Texas- Rowan Companies plc. yesterday announced that Repsol

Exploracion Guyana, S.A. has signed a contract for the EXL II, a high-

specification Super 116E Jack-up rig, for work in Guyana.

Antigua and Barbuda

Dundas says more cruise lines have cancelled calls to Antigua and

Barbuda

The president of the Antigua and Barbuda Cruise Tourism Association

(ABCTA) Nathan Dundas said yesterday that more cruise lines have

cancelled their scheduled calls to Antigua and Barbuda.

British Virgin Islands

EU says we will not be placed on their blacklist

The BVI will not be placed on the European Union’s blacklist of non-

compliant tax haven jurisdictions.

Anegada, VG to get special ‘Development Fund’

The Ninth District, namely the sister islands of Virgin Gorda and Anegada,

in the Virgin Islands (VI) are each earmarked for accelerated recovery

and development, in addition to becoming 'energy independent' by

2025, with the implementation of the 9th District Development Fund.

Dominica

Government ‘disappointed’ by Dominica’s inclusion in new EU blacklist

The Government of Dominica has said that it is extremely disappointed in

the new tax haven blacklist which was adopted on Tuesday by EU

Finance Ministers and in particular by Dominica’s inclusion on the list.

Other Regional

EU adds more Caribbean countries to money laundering blacklist

Less than a month after the European Union (EU) blacklisted several

jurisdictions worldwide including several Caribbean countries, the EU

Commission has added more jurisdictions to its tax-haven and money

laundering blacklist.

Other Regional Continued

Caribbean governments to provide emergency funding of $5.4 million to

LIAT

Caribbean countries are being asked to contribute a total of US$5.4

million in emergency funding needed to keep the cash strapped Leeward

Island Air Transport or LIAT in the sky.

INTERNATIONAL

United States

Dollar General 2019 profit forecast disappoints, shares fall 6 percent

Dollar General Corp forecast 2019 profit below analysts’ expectations on

Thursday as the discount retailer ramps up spending on stores to pull in

more customers, sending its shares down nearly 6 percent.

Trump eyes 'large scale' trade deal with UK

U.S. President Donald Trump on Thursday said he anticipated a “large

scale” trade agreement with the United Kingdom, as the British

government grapples with its Brexit deal with Europe and a possible delay.

GE forecasts 2019 profit below estimates, shares fall

General Electric Co forecast profits for 2019 that were below analysts’

estimates on Thursday, as the company spends to restructure its ailing

power business.

U.S. esports advertising revenue to top $200 million by 2020

Competitive video game advertising revenues in the United States are

expected to surpass $200 million by 2020, according to a report released

on Thursday.

Trump says he is in no rush to complete China trade deal

U.S. President Donald Trump said on Wednesday he was in no rush to

complete a trade pact with China and insisted that any deal include

protection for intellectual property, a major sticking point between the

two sides during months of negotiations.

United Kingdom

UK PM May will bring Brexit deal back if circumstances right

British Prime Minister Theresa May will bring back her twice-defeated Brexit

deal for another vote in parliament if the government judges the

circumstances are right, her spokesman said on Thursday.

Brexit extension beyond May means UK participation in EU elections

An extension of Brexit talks beyond the date of European Parliament

elections in late May would mean that Britain would have to take part in

European Parliament elections despite its plan to leave the EU, the

European Commission said.

Europe

German economy likely grew moderately in first-quarter

The German economy had a subdued start to 2019 and probably grew

moderately in the first quarter, the Economy Ministry said on Thursday,

warning that the industrial sector was likely to remain weak due to sluggish

demand from abroad.

European shares surge after UK parliament votes down no-deal Brexit

European shares rallied to more than five-month highs on Thursday,

boosted by fading risks of a no-deal Brexit and overcoming fears about a

possible delay in trade talks between the United States and China.

European shares hit five-month high after no-deal Brexit rejected

European shares rose to a five-month high on Thursday after Britain’s

parliament voted to reject a disorderly Brexit.

China

China industrial output growth falls to 17-year low, more support steps

expected

Growth in China’s industrial output fell to a 17-year low in the first two

months of the year and the jobless rate rose, pointing to further weakness

in the world’s second-biggest economy that is likely to trigger more

support measures from Beijing.

China Continued

Saudi Aramco shifts strategy in China to boost oil sales

Rising Russian and U.S. competition has pushed Saudi Aramco to find new

buyers for its oil in China, encouraging a shift toward independent refiners

and newcomers to the business.

Japan

SoftBank, Toyota in talks to invest $1 billion in Uber's self-driving unit

A group of investors led by SoftBank Group Corp and Toyota Motor Corp is

in talks to invest $1 billion or more into Uber Technologies Inc’s self-driving

vehicle unit, which would value the unit at $5 billion to $10 billion, said two

people familiar with the talks.

Global

Stock futures dip as trade uncertainty, growth worries weigh

U.S. stock index futures edged lower on Thursday as early optimism after

Britain’s parliament voted to reject a disorderly Brexit was offset by

uncertainty over U.S.-China trade talks and weak data out of China.U.S.

stock index futures edged lower on Thursday as early optimism after

Britain’s parliament voted to reject a disorderly Brexit was offset by

uncertainty over U.S.-China trade talks and weak data out of China.

Oil retreats from four-month highs on reported U.S.-China summit delay

Oil futures reached four-month highs on Thursday, but later dipped after a

report that a meeting between the U.S. and Chinese presidents to resolve

a trade dispute had been delayed.

Aussie dollar falls as U.S., China delay trade meeting; sterling falls

The Australian dollar fell on Thursday after reports that a meeting between

China and the United States to end their trade war had been delayed.

Stock futures dip as trade uncertainty, growth worries weigh Thursday 14th March, 2019 – Reuters

U.S. stock index futures edged lower on Thursday as early optimism after

Britain’s parliament voted to reject a disorderly Brexit was offset by

uncertainty over U.S.-China trade talks and weak data out of China.U.S.

stock index futures edged lower on Thursday as early optimism after

Britain’s parliament voted to reject a disorderly Brexit was offset by

uncertainty over U.S.-China trade talks and weak data out of China.

Bloomberg reported that a meeting between President Donald Trump

and China’s Xi Jinping to sign an agreement to end their trade dispute

won’t occur this month and is more likely to happen in April at the earliest.

The report soured sentiment and futures reversed earlier gains to trade

lower.

On Wednesday, U.S. President Donald Trump said that he was in no rush to

complete a trade pact with China and insisted that any deal include

protection for intellectual property.

Data from China pointed to further weakness in the world’s second-

biggest economy and added to a clutch of weak economic reports that

indicated slowing global growth. The latest China figures showed industrial

output at 17-year lows and sluggish retail sales.

UK lawmakers on Wednesday voted in favor of a motion that ruled out a

potentially disorderly “no-deal” Brexit under any circumstances, though

another crucial vote to delay leaving the European Union is pending on

Thursday evening.

Still, the S&P and Nasdaq have posted three consecutive sessions of gains

this week, buoyed by domestic data that underscored the Federal

Reserve’s patient stance on future interest rate hikes.

A dovish Federal Reserve and hopes of a U.S.-China trade deal have

helped the S&P rally about 12 percent this year and put the benchmark

index just 4.3 percent away from its record closing high in September.

At 6:55 a.m. ET, Dow e-minis were down 72 points, or 0.28 percent. S&P 500

e-minis were down 7.25 points, or 0.26 percent and Nasdaq 100 e-minis

were down 9.5 points, or 0.13 percent.

The U.S. Senate was poised on Thursday to pass a proposal to terminate

President Donald Trump’s declaration of an emergency at the southern

border, defying his threat to veto the measure.

Among stocks, Facebook Inc fell 2.3 percent in pre-market trading as the

world’s largest social network struggled to restore its services fully after a

17-hour partial outage. Tesla Inc rose 0.6 percent after China’s customs

authority lifted a suspension on imports of the electric carmaker’s Model 3.

Economic data at 10:00 a.m. ET is expected show new home sales fell to

620,000 units in January, from 621,000 units in December.

<< Back to news headlines >>

Oil retreats from four-month highs on reported U.S.-China summit delay Thursday 14th March, 2019 – Reuters

Oil futures reached four-month highs on Thursday, but later dipped after a

report that a meeting between the U.S. and Chinese presidents to resolve

a trade dispute had been delayed.

The Bloomberg story, citing unnamed sources, curbed a price rally fueled

by production curbs by OPEC and its partners along with U.S. sanctions on

Iran and Venezuela that have tightened global supplies this year.

Brent crude hit a 2019 peak of $68.14 per barrel before falling to $67.47 by

1035 GMT, down 8 cents or 0.12 percent from Wednesday’s close.

U.S. West Texas Intermediate (WTI) crude futures were at $58.11 per barrel,

down 15 cents or 0.26 percent.

Bloomberg reported that U.S. President Donald Trump and Chinese

President Xi Jinping may not meet until April at the earliest, after the Wall

Street Journal said this month that Xi and Trump could meet around

March 27.

No official announcement about the meeting had been made by either

side.

A continuation of the tariff war between the world’s top two economies

could dent growth in fuel demand and dent prices.

The Organization of the Petroleum Exporting Countries and some non-

aligned producers including Russia have been withholding oil supply since

the start of the year to tighten global markets.

Meanwhile, a political and economic crisis worsened by U.S. sanctions has

slashed Venezuelan crude exports.

Two sources told Reuters that the United States also aims to curb Iran’s

crude exports by about 20 percent to below 1 million barrels per day

(bpd) from May, likely reining in waivers for Tehran’s remaining customers.

“With OPEC’s cuts in full swing ... persistent supply issues and a

deteriorating picture on Venezuela, oil is looking well supported,” said

Jasper Lawler, head of research at futures brokerage London Capital

Group.

BNP Paribas strategist Harry Tchilinguirian told the Reuters Global Oil

Forum: “Buyers with (Iran oil) waivers are likely going to hold back until

there is more clarity in the U.S. administration’s position.”

An unexpected dip in U.S. crude oil inventories and production supported

prices, traders said.

The U.S. Energy Information Administration (EIA) said U.S. commercial

crude oil inventories fell last week as refineries hiked output.

U.S. crude oil production dipped by 100,000 bpd to 12 million bpd.

<< Back to news headlines >>

Aussie dollar falls as U.S., China delay trade meeting; sterling falls Thursday 14th March, 2019 – Reuters

The Australian dollar fell on Thursday after reports that a meeting between

China and the United States to end their trade war had been delayed.

The meeting between President Donald Trump and President Xi Jinping

won’t occur this month and is more likely to happen in April at the earliest,

Bloomberg reported.

The Australian dollar reacted the most to the report, falling to its lowest in

three days at $0.7049, down 0.6 percent on the day.

Concern remains that any escalation in the trade conflict will hit hard

export-oriented economies such as Australia, whose biggest trading

partner is China.

The yuan was relatively stable in the offshore market. At 1030 GMT it was

down half a percent at 6.7353, not far from a one-month low of 6.7372

The dollar gained for the first time in a week as the pound fell after a vote

on Brexit that failed to deliver much clarity on where Britain’s relationship

with the European Union was headed.

The pound had soared nearly 2 percent late on Wednesday after British

lawmakers voted against a potentially disorderly “no-deal” departure

from the European Union.

The pound was down 0.9 percent at $1.3208 at 1040 GMT. Traders are

bracing for a parliamentary vote later today that’s expected to call for a

short delay to Brexit.

Analysts cautioned against betting on sterling strength. Uncertainty

remains about what form Brexit will take, less than three weeks before

Britain’s scheduled departure from the EU on March 29. British lawmakers

are expected to vote on Thursday to delay that departure.

“The most sensible approach seems to be to hedge sterling’s downside

risks, which we deem to be larger than the remaining upside potential

over the next couple of months,” UBS said in a note to clients.

The dollar index, a gauge of its strength against six other major currencies,

was up 0.2 percent at 96.769. It shed 0.4 percent overnight, at one point

brushing a nine-day trough of 96.385.

<< Back to news headlines >>

China industrial output growth falls to 17-year low, more support steps

expected Thursday 14th March, 2019 – Reuters

Growth in China’s industrial output fell to a 17-year low in the first two

months of the year and the jobless rate rose, pointing to further weakness

in the world’s second-biggest economy that is likely to trigger more

support measures from Beijing.

But a mixed bag of major data on Thursday also showed property

investment was picking up, while overall retail sales were sluggish but

steady, suggesting the economy is not in the midst of a sharper slowdown.

China is ramping up assistance for the economy as 2019 growth looks set

to plumb 29-year lows, but support measures are taking time to kick in.

Most analysts believe activity may not convincingly stabilise until the

middle of the year.

Premier Li Keqiang last week announced hundreds of billions of dollars in

additional tax cuts and infrastructure spending, even as officials vowed

they would not resort to massive stimulus like in the past, which produced

swift recoveries in China and strong reflationary pulses worldwide.

“The latest data should partially ease concerns about a sharp slowdown

at the start of the year. But the near-term outlook still looks downbeat,”

Capital Economics said in a note.

In particular, Capital Economics and others noted that infrastructure

investment has not improved as much as hoped after the government

began fast-tracking road and rail projects last year, raising the risk of a

milder-than-expected bounce in construction when work resumes in

warmer weather.

Pressured by weak demand at home and abroad, China’s industrial

output rose 5.3 percent in January-February, less than expected and the

slowest pace since early 2002. Growth had been expected to cool to 5.5

percent from December’s 5.7 percent.

China combines January and February activity data in an attempt to

smooth distortions created by the long Lunar New Year holidays early

each year, but some analysts say a clearer picture of the economy’s

health may not emerge until first-quarter data is released in April.

If the seasonal distortion was removed, output rose 6.1 percent in the two

months, the National Bureau of Statistics said.

China’s own official factory survey, which is seasonally adjusted, showed

manufacturing output contracted in February for the first time since

January 2009.

Data last week showed exports tumbled the most in three years in

February, suggesting U.S. tariffs on Chinese goods and cooling global

demand were taking a greater toll.

President Donald Trump said on Wednesday he was in no rush to

complete a trade pact with China and insisted that any deal include

protection for intellectual property, a major sticking point between the

two sides during months of negotiations.

Job shedding by export-oriented companies led to a jump in the

unemployment rate last month, said Li Xiru, an official with the statistics

bureau.

China’s survey-based jobless rate rose to 5.3 percent in February, from 4.9

percent in December, though it was below the government’s target of 5.5

percent this year.

Many migrant workers also quit their jobs to go home before the holidays,

Li said.

Reuters reported in January that some factories in Guangdong - China’s

export hub - had shut earlier than usual ahead of the holidays, and some

were expected to close for good as the trade war curtailed orders.

INVESTMENT PICKING UP

Growth in fixed-asset investment, a major growth driver in the past,

quickened to 6.1 percent in the first two months of this year, slightly more

than analysts had expected and edging up marginally from 5.9 percent in

2018.

Much of the gain appeared due to a bounce in property investment,

which quickened to a five-year high of 11.6 percent, though home sales

fell.

Infrastructure investment, which the government is relying on heavily to

drive an economic recovery, rose 4.3 percent on-year. But several

analysts including Nomura estimated growth momentum may have

eased despite Beijing’s push.

Private sector fixed-asset investment also lost a step, rising 7.5 percent

versus an increase of 8.7 percent in 2018. Private investment accounts for

about 60 percent of overall investment in China, and Beijing has spent

considerable effort trying to ease financial strains on smaller, private firms.

RETAIL SALES WOBBLY

Retail sales were also marginally better than expected, with the headline

figure rising 8.2 percent in January-February from a year earlier, in line with

December.

But the rate of growth remains stuck around 15-year lows, highlighting

concerns that consumers are growing less confident as the economy

slows.

Industry data this week showed automobile sales in China fell for the

eighth consecutive month in February.

China’s state planner announced measures in January to boost

consumption of goods ranging from eco-friendly appliances to big-ticket

items such as cars, but the size and scope of the subsidy scheme is still

unclear.

Thursday’s data showed sales of appliances and furniture softened

considerably early in the year, possibly linked to worries about the cooling

property market and a 3.6 percent drop in home sales.

MORE SUPPORT EXPECTED

In addition to fiscal stimulus such as higher local government spending

and tax cuts, more monetary policy support is also expected this year.

The People’s Bank of China (PBOC) has already cut banks’ reserve

requirements five times over the last year, most recently in January, and

more reductions are expected from the coming quarter to free up more

funds for lending.

Regulators have ordered big banks to increase loans to smaller firms by

more than 30 percent this year, despite the risk of more bad loans. Total

new bank lending hit a record in 3.23 trillion yuan ($481 billion) in January.

The central bank is also expected to continue to guide borrowing costs

lower. But sources have told Reuters that a benchmark interest rate cut is

considered a last resort if other measures fail to stem the broader

economic decline.

Even with additional support, China’s economic growth is still expected to

cool to around 6.2 percent this year from 6.6 percent in 2018, according

to Reuters polls.

<< Back to news headlines >>

Saudi Aramco shifts strategy in China to boost oil sales Thursday 14th March, 2019 – Reuters

Rising Russian and U.S. competition has pushed Saudi Aramco to find new

buyers for its oil in China, encouraging a shift toward independent refiners

and newcomers to the business.

It reflects a new strategy for the Saudi Arabian oil giant after years of

dealing almost exclusively with major state-owned Chinese energy firms,

industry sources say.

But the change in tack may not offer the same returns. Aramco’s new

partners lack the scale and marketing reach of PetroChina and Sinopec

Corp, the state-run firms that dominate China’s refining, petrochemical

and retail fuel business, analysts say.

Aramco had been talking to PetroChina for years about a refining venture

in Yunnan province in the southwest, but industry sources said the plans

had been effectively shelved due to poor economics and disagreement

over marketing rights.

Aramco, which did not immediately respond to a Reuters request for

comment for this report, has instead turned to new and independent

players in China’s refining and petrochemical industry.

In February, it agreed to form a venture with Chinese defense

conglomerate Norinco to develop a $10 billion refining and

petrochemicals complex in the city of Panjin, in the northeast province of

Liaoning.

It also signed memorandums of understanding to expand its activities in

Zhejiang province in the east. The plans include buying 9 percent of

Zhejiang Petrochemical to secure a stake in a 800,000 barrel per day

(bpd) refinery and petrochemicals complex in the city of Zhoushan, south

of Shanghai.

The deals are part of a strategy shift to court new buyers, including

smaller, independently run refiners, known as “teapots”, industry sources

say.

“The private players are more open and entrepreneurial. They also need

the oil and the experience,” said one source familiar with the recent deals

in China.

CATCHING UP

The strategy has helped put Saudi Arabia on track to lift oil exports to

China to 1.5 million bpd in the first quarter, catching up with Russia which

has been China’s No. 1 supplier for three years in a row.

In 2018, Russia exported the equivalent of 1.43 million bpd to China, while

Saudi Arabia exported 1.135 million bpd, customs data showed. U.S.

shipments are still much smaller but have risen fast, surging 25 percent in

2018 to just under 250,000 bpd, although a trade row made them stall in

December.

A change of management in Chinese state-run PetroChina and Sinopec,

as well as tougher competition from rival crude suppliers, have made it

harder for Aramco to secure deals, such as the Yunnan refining venture,

industry sources said.

Aramco signed a memorandum of understanding in 2011 with PetroChina

to supply oil to the Yunnan plant. But talks on the deal hit a roadblock in

mid-2018, the sources said.

“Yunnan went on for five years and it is dead now,” one of the industry

sources said. The deal was undermined by the cost of sending crude by

pipeline across Myanmar and because PetroChina was not keen to share

its marketing rights with Aramco, the sources said.

Aramco aims to expand refining and petrochemical output in China

through long-term contracts and access to retail and marketing rights with

other firms. But analysts say its new partners may not offer the same reach

as the big, state players.

“Independents have a smaller footprint across the value chain and less

experience in trading,” said Michal Meidan of Energy Aspects. “The

challenge of partnering with independents is precisely the limits of access

to the retail market.”

MARKET SHARE

Sinopec and PetroChina control about two-thirds of retail sales in China,

while independents together have about a quarter, industry experts say.

The Norinco deal includes a plan to set up a fuel retail business and a

marketing venture between Aramco, North Huajin and Liaoning

Transportation Construction Investment Group Co. The refining complex is

in a region dominated by PetroChina and has one of China’s slowest

economic growth rates. But it lies close to North Korea, offering scope in

future to expand beyond China, sources familiar with the deal say.

Liaoning Transportation leases fuel stations to PetroChina and Sinopec, so

the new venture might still need to buy the Chinese majors out or wait

until the leases end, said a Huajin oil executive, who asked not to be

named.

Norinco declined to comment.

In Zhejiang, alongside taking a stake in a refining and petrochemical

complex, Aramco would utilize an oil storage facility to serve Aramco’s

Asian customers and set up a retail network in the province with Zhejiang

Energy.

Securing retail rights proved a challenge for Aramco when dealing with

state firms.

Zhejiang Energy was not immediately available for comment.

A Zhejiang-based executive, who asked not to be named, said Zhejiang

Petrochemical had similar memorandums of understanding for retail

cooperation with Western energy firms, suggesting Aramco faced

competition in the market.

The executive also said the Chinese partners had yet to pick a site for

setting up the storage facility and associated crude terminal.

Zhejiang Petrochemical declined to comment.

<< Back to news headlines >>

UK PM May will bring Brexit deal back if circumstances right Thursday 14th March, 2019 – Reuters

British Prime Minister Theresa May will bring back her twice-defeated Brexit

deal for another vote in parliament if the government judges the

circumstances are right, her spokesman said on Thursday.

On Wednesday, Britain’s lawmakers rejected leaving the EU without a

deal, further weakening May and paving the way for a vote that could

delay Brexit until at least the end of June.

“If it was felt that it were worthwhile to bring back a new vote, then that’s

what we would do. But that’s a decision we would have to judge on

circumstances at the time,” the spokesman said.

“In terms of bringing back a vote, as ever you are guided by the fact that

you would need to carry sufficient numbers of MPs (members of

parliament),” he said, adding that the vote later on Thursday would be a

free one to allow lawmakers to vote according to their beliefs rather than

along party lines.

<< Back to news headlines >>

Brexit extension beyond May means UK participation in EU elections Thursday 14th March, 2019 – Reuters

An extension of Brexit talks beyond the date of European Parliament

elections in late May would mean that Britain would have to take part in

European Parliament elections despite its plan to leave the EU, the

European Commission said.

“If the UK is still a member of the EU during EU parliamentary election, they

will have to take part in it,” Commission spokesman Margaritis Schinas told

a regular new briefing.

The British parliament will vote later on Thursday on a possible extension of

Brexit negotiations beyond the original March 29th deadline.

“We need to have a request coming in, we would need to decide by

unanimity,” the spokesman said.

<< Back to news headlines >>

Dollar General 2019 profit forecast disappoints, shares fall 6 percent Thursday 14th March, 2019 – Reuters

Dollar General Corp forecast 2019 profit below analysts’ expectations on

Thursday as the discount retailer ramps up spending on stores to pull in

more customers, sending its shares down nearly 6 percent.

Dollar General has spent the last year remodeling stores, adding more

refrigeration units and shortening queues at payment counters.

The company said in 2019 it would spend about $50 million to improve

distribution of fresh and frozen food, shopping convenience and labor

productivity.

The company said it expects fiscal 2019 earnings of $6.30 to $6.50 per

share, below the average analyst estimate of $6.65, according to IBES

data from Refinitiv.

Excluding items, the company earned $1.84 per share in the fourth quarter

ended Feb. 1 but missed the average analyst estimate of $1.88.

However, the company’s fourth-quarter same-store sales rose 4 percent

and beat the 2.6 percent increase analysts had estimated, as its

customers, who benefited from an earlier-than-usual issue of food stamps,

spent more on groceries.

Net sales rose 8.5 percent to $6.65 billion and beat analysts’ expectations

of $6.61 billion.

Shares were trading down at $113.98 before the opening bell, despite the

company raising its quarterly dividend by 10 percent and increasing its

share buyback program by $1 billion.

<< Back to news headlines >>

Trump eyes 'large scale' trade deal with UK Thursday 14th March, 2019 – Reuters

U.S. President Donald Trump on Thursday said he anticipated a “large

scale” trade agreement with the United Kingdom, as the British

government grapples with its Brexit deal with Europe and a possible delay.

Britain’s break from the European Union would upend its trade

relationships as it exits the bloc and is forced to go to the negotiating

table to broker its own trade pacts with other countries, including the

United States.

“My Administration looks forward to negotiating a large scale Trade Deal

with the United Kingdom. The potential is unlimited!” Trump tweeted.

The U.S. Trade Representative’s office had said it would launch talks with

Britain after its planned exit from the EU on March 29. Last month it laid out

its objectives for a deal that included reduced tariff and non-tariff barriers

for U.S. industrial and agricultural goods.

Trump has made the U.S. economy and trade a cornerstone of his

presidency in line with his “America First” campaign, and has sought to

renegotiate pacts with China, Canada and Mexico as well as the EU.

With a little more than two weeks before Britain is due to leave the

European Union with no firm agreement yet in place, Britain’s parliament

was due to vote on Thursday on seeking a last-minute Brexit delay after UK

lawmakers twice rejected Prime Minister Theresa May’s EU divorce deal.

<< Back to news headlines >>

GE forecasts 2019 profit below estimates, shares fall Thursday 14th March, 2019 – Reuters

General Electric Co forecast profits for 2019 that were below analysts’

estimates on Thursday, as the company spends to restructure its ailing

power business.

Its shares dropped 2 percent in premarket trading, after earlier falling as

much as 4 percent following the release of the earnings outlook.

GE forecast adjusted earnings of 50 cents to 60 cents a share for 2019,

below analyst expectations of 70 cents, on average.

The U.S. industrial conglomerate said adjusted industrial free cash flow

would be between negative $2 billion and zero. GE had warned investors

last week about a net cash outflow from its industrial businesses.

The cash flow forecast takes into account more than $2 billion in charges

for restructuring, corporate activity and “contingency” costs, the

company said.

“GE’s challenges in 2019 are complex but clear,” Chief Executive Larry

Culp said in a statement that reiterated his priorities of trimming GE’s debt

and improving the performance of its industrial businesses, especially the

ailing power-plant division.

The company expects adjusted industrial free cash flow to be positive in

2020, with the pace of improvement accelerating in 2021, but provided

no target figures.

It expects free cash flow for its power business to remain negative in 2020

before turning positive in 2021.

Investors are looking closely at GE’s cash and earnings after the company

lost nearly $23 billion last year.

As the first outsider to head the 127-year-old company, Culp has taken a

series of steps to restore profit and boost its stock, which has tumbled to

less than a third of its value since mid-2016.

Last year, Culp slashed GE’s quarterly dividend to a penny a share. He

struck a deal to sell the company’s biopharma unit to Danaher Corp in

February for $21.4 billion. The proceeds will be used trim debt, which

totaled $121 billion in December.

<< Back to news headlines >>

U.S. esports advertising revenue to top $200 million by 2020 Thursday 14th March, 2019 – Reuters

Competitive video game advertising revenues in the United States are

expected to surpass $200 million by 2020, according to a report released

on Thursday.

Such esports ad revenue will grow 25 percent to $178 million this year and

to more than $214 million in 2020, marketing research firm eMarketer said

in its first ever U.S. esports and gaming forecast.

From beer brewers and computer companies to mortgage lenders and

sports apparel makers, brands across the spectrum are trying to figure out

how best to market to esports fans, who tend to be young, tech savvy

and affluent, as the professional video gaming industry is expected to

balloon in coming years.

A February study by gaming analytics firm Newzoo projected that global

esports revenue would hit $1.1 billion this year, up 27 percent from last

year, as money comes pouring in for advertising, sponsorship and media

rights.

Marketers are hoping to reach the throngs of fans who like to tune in live

as professional gamers battle each other in their favorite game, be it

League of Legends, Overwatch or others.

In 2019, 30.3 million people in the United States will watch an esports event

at least once a month, a more than 18 percent increase over last year,

eMarketer said.

Viewership, which now mostly occurs on YouTube and Twitch, is likely to

grow by more than 50 percent to 46.2 million through 2023, the firm said.

Once an under-the-radar activity, esports is now a “multimillion-dollar

business in the U.S., with implications for game developers, players,

leagues, teams, live venues, streaming platforms, TV networks, audiences

and marketers,” eMarketer principal analyst Paul Verna said in a

statement.

<< Back to news headlines >>

Trump says he is in no rush to complete China trade deal Thursday 14th March, 2019 – Reuters

U.S. President Donald Trump said on Wednesday he was in no rush to

complete a trade pact with China and insisted that any deal include

protection for intellectual property, a major sticking point between the

two sides during months of negotiations.

Trump and Chinese President Xi Jinping had been expected to hold a

summit at the president’s Mar-a-Lago property in Florida later this month,

but no date has been set for a meeting and no in-person talks between

their trade teams have been held in more than two weeks.

Bloomberg reported on Thursday that a meeting between the two was

more likely to take place in April at the earliest.

A person familiar with the matter told Reuters that there “were rumblings”

in Washington about a possible meeting in late April.

The president, speaking to reporters at the White House, said he thought

there was a good chance a deal would be made, in part because China

wanted one after suffering from U.S. tariffs on its goods.

But he acknowledged Xi may be wary of coming to a summit without an

agreement in hand after seeing Trump end a separate summit in Vietnam

with North Korean leader Kim Jong Un without a peace deal.

“I think President Xi saw that I’m somebody that believes in walking when

the deal is not done, and you know there’s always a chance it could

happen and he probably wouldn’t want that,” Trump said.

China has not made any public comment confirming Xi is considering

going to meet Trump in Florida or elsewhere.

The president, who likes to emphasize his own deal-making abilities, said

an agreement to end a months-long trade war could be finished ahead

of a presidential meeting or completed in-person with his counterpart.

“We could do it either way. We could have the deal completed and

come and sign, or we could get the deal almost completed and

negotiate some of the final points. I would prefer that,” he said.

Trump decided last month not to increase tariffs on Chinese goods at the

beginning of March, giving a nod to the success of negotiations so far.

But hurdles remain, and intellectual property is one of them. Washington

accuses Beijing of forcing U.S. companies to share their intellectual

property and transfer their technology to local partners in order to do

business in China. Beijing denies it engages in such practices.

Asked on Wednesday if intellectual property had to be included in a

trade deal, Trump said: “Yes it does.”

He indicated that from his perspective, a meeting with Xi was still likely.

“I think things are going along very well - we’ll just see what the date is,”

Trump told reporters at the White House.

“I’m in no rush. I want the deal to be right. ... I am not in a rush

whatsoever. It’s got to be the right deal. It’s got to be a good deal for us

and if it’s not, we’re not going to make that deal.”

‘MAINTAINING CONTACT’

China’s Foreign Ministry said on Tuesday that Xi had previously told Trump

that he is willing to “maintain contacts” with the U.S. president.

Over the weekend, Vice Commerce Minister Wang Shouwen, who has

been deeply involved in the trade talks with the United States, did not

answer questions from reporters on whether Xi would go to Mar-a-Lago.

Two Beijing-based diplomatic sources, familiar with the situation, told

Reuters that Xi would not be going to Mar-a-Lago, at least in the near

term.

One said there had been no formal approach from the United States to

China about such a trip, while the second said the problem was that

China had realized a trade agreement was not going to be as easy to

reach as they had initially thought.

“This is media hype,” said the first source, of reports Xi and Trump could

meet this month in Florida.

Though Trump said he is not in a hurry, a trade deal this spring would give

him a win to cite as an economic accomplishment as he advances his

2020 re-election campaign. The trade war has hurt the global economy

and hung over stock markets, which would likely benefit from an end to

the tensions.

In addition to smoothing over sticking points on content, the United States

is eager to include a strong enforcement mechanism in a deal to ensure

that Beijing can be held accountable if it breaks any of its terms.

U.S. Trade Representative Robert Lighthizer, who has spearheaded the

talks from the American side, said on Tuesday that U.S. officials hoped

they were in the final weeks of their talks with China but that major issues

remained to be resolved.

<< Back to news headlines >>

SoftBank, Toyota in talks to invest $1 billion in Uber's self-driving unit Thursday 14th March, 2019 – Reuters

A group of investors led by SoftBank Group Corp and Toyota Motor Corp is

in talks to invest $1 billion or more into Uber Technologies Inc’s self-driving

vehicle unit, which would value the unit at $5 billion to $10 billion, said two

people familiar with the talks.

The investment would provide a cash injection for Uber’s self-driving

program that is costing the money-losing startup hundreds of millions of

dollars without generating revenue.

It could also help underscore Uber’s value as the ride-hailing firm prepares

for a stock market debut in which its value could top $100 billion.

Uber and SoftBank declined to comment. A Toyota spokesman said the

automaker “constantly reviews and considers various options for

investment” but does not have anything to announce.

News of investment talks was first reported by The Wall Street Journal,

which said a deal could be reached next month. SoftBank Group shares

rose 4 percent in morning Tokyo trade whereas Toyota’s stock was flat.

Japan’s largest automaker Toyota injected $500 million into Uber last year

to work on self-driving cars, where both companies are seen as lagging

rivals like Alphabet Inc’s self-driving unit Waymo.

Uber, which last year lost about $3.3 billion, is betting on a transition to self-

driving cars to eliminate the need to pay drivers.

The nascent technology came under greater scrutiny last year after one

of Uber’s self-driving cars struck and killed a pedestrian in Arizona last year.

Prosecutors last week declined to pursue criminal charges.

The challenge of developing the technology is leading to previously

unlikely alliances, with SoftBank and Toyota partnering up in Japan.

SoftBank has invested $2.25 billion in General Motors Co’s self-driving unit

Cruise, which has also received funds from Honda Motor Co Ltd.

<< Back to news headlines >>

German economy likely grew moderately in first-quarter Thursday 14th March, 2019 – Reuters

The German economy had a subdued start to 2019 and probably grew

moderately in the first quarter, the Economy Ministry said on Thursday,

warning that the industrial sector was likely to remain weak due to sluggish

demand from abroad.

“The economy has got into turbulent waters due to higher risks and

uncertainties in the external environment,” the ministry said in its monthly

report.

<< Back to news headlines >>

European shares surge after UK parliament votes down no-deal Brexit Thursday 14th March, 2019 – Reuters

European shares rallied to more than five-month highs on Thursday,

boosted by fading risks of a no-deal Brexit and overcoming fears about a

possible delay in trade talks between the United States and China.

A pan-European equity index rose as high as 0.8 percent, its highest level

since October after Britain’s parliament vote on Wednesday removed a

key source of uncertainty by rejecting a no-deal Brexit.

European stocks had earlier stumbled after Bloomberg reported that a

meeting between U.S. President Donald Trump and Chinese President Xi

Jinping to end their trade war was more likely to take place in April at the

earliest, later than expected.

The lingering trade spat between the two superpowers has been a cloud

hanging over markets and there had been hopes Trump and Xi would

hold a summit aimed at finding a breakthrough at the president’s Mar-a-

Lago property in Florida this month.

The decision by Britain’s parliament had lifted British shares 0.8 percent.

The vote paves the way for a delay to Brexit beyond the current March 29

deadline which could lead to an EU divorce deal being agreed or even

another referendum.

Goldman Sachs analysts told clients the probability of a no-deal Brexit

had fallen to 5 percent from 10 percent after Wednesday vote. Despite

the vote having no legal force, it carries considerable political force.

World shares trod water, staying off 4-1/2 month highs hit recently. Wall

Street was set for a marginally softer open, futures showed.

“Global markets have had a good start to this year but people are now

starting to focus on the real issues like will there be a (U.S.-China) trade

deal, Brexit and the expectation that the Fed will raise rates possibly once

more this year before maybe cutting rates,” said Peter Lowman, chief

investment officer at Investment Quorum.

U.S. Federal Reserve has signaled that it is pressing pause on rate rises.

Some players however reckon it could still raise interest rates one more

time before calling time on its tightening campaign.

Lowman noted that despite China’s slowing growth — figures released on

Thursday showed the Asian giant’s industrial output at 17-year lows and

sluggish retail sales — markets have had an impressive rally this year, with

the MSCI index climbing about 10 percent, spurred by the Fed’s change

of heart.

But many remain skeptical about how much further the share rally can

run.

“Before we conclude that this market still has decent legs, we’d like to see

equity prices supported by stronger macro data, lifted by better earnings

trends, and confirmed by stable-to-rising yields,” David Lafferty, chief

market strategist at Natixis, told clients.

BREXIT

In currency markets, sterling slipped 0.9 percent after rallying in the wake

of Wednesday’s vote by more than 1 percent to $1.3380, the highest since

June 2018.

The retreat comes as lawmakers prepare to vote again later in the day to

delay Brexit until at least the end of June.

But analysts risks have not been eliminated with parliament still needing to

find a way forward and all 27 EU nations needing to agree an extension

on Brexit.

“There is gradual optimism being priced in and barring something highly

unlikely, the possibility of an actual no-deal is not zero but less than 5

percent,” said Tim Graf, head of macro strategy at State Street Global

Advisors.

But he added: “There is always the chance the EU won’t grant an

extension if they are just going to be trying to push this deal through ...

that’s where the caution comes in.”

Elsewhere, the Australian dollar reacted most to the report about a

delayed meeting between China and the United States, falling to its

lowest in three days at $0.7049, down 0.6 percent, on the day.

Concern remains that any escalation in the trade conflict will hit hard

export-oriented economies such as Australia, whose biggest trading

partner is China.

The yuan was relatively stable in the offshore market. It lost half a percent

at 6.7353, not far from a one-month low of 6.7372.

News of the potential delayed meeting between the U.S. and Chinese

leaders pushed oil prices into reverse, with Brent stumbling 0.1 percent to

$67.47.

<< Back to news headlines >>

European shares hit five-month high after no-deal Brexit rejected Thursday 14th March, 2019 – Reuters

European shares rose to a five-month high on Thursday after Britain’s

parliament voted to reject a disorderly Brexit.

Sentiment improved from cautious to upbeat after the open, before a

vote on Thursday evening to delay leaving the European Union.

The pan-European STOXX 600 was up 0.7 percent at 0954 GMT. British blue

chips rose 0.5 percent.

“We now see a 60 percent chance (up from 55 percent) that a close

variant of the prime minister’s current Brexit deal is eventually ratified,”

Goldman Sachs analysts wrote. The probability of a no-deal Brexit was

now 5 percent, they said.

Shares in Leonardo rose the most, 9.3 percent, after the Italian defense

group beat its expectations.

Germany’s GEA rose 8.3 percent and France’s Lagardere gained after

giving more details about its divestment plans.

Among other stocks, Lufthansa posted the worst performance after

reporting an 11 percent decline in fourth-quarter operating profits.

RWE was flat after it forecast core earnings might fall by a fifth this year.

Germany’s largest electricity producer is struggling to halt a decline in

profitability at its conventional power plants.

Italy’s top insurer, Assicurazioni Generali, rose 0.7 percent as it raised its

dividend for 2018 after beating its business plan targets.

Banks rose 0.9 percent.

“The European bank index is responding positively to the turn in the

European surprise index,” said Russell Quelch, financials specialist sales at

Redburn. “The ECB’s assertion last week of the deterioration in the growth

outlook for Europe therefore looks increasingly at risk of being behind the

curve.”

<< Back to news headlines >>

EU adds more Caribbean countries to money laundering blacklist Wednesday 13th March, 2019 – Caribbean News Now

Less than a month after the European Union (EU) blacklisted several

jurisdictions worldwide including several Caribbean countries, the EU

Commission has added more jurisdictions to its tax-haven and money

laundering blacklist.

Along with removing Puerto Rico and The Bahamas from the blacklist

published in February 2019, the EU Commission also added Bermuda,

Aruba, Barbados, Belize and Dominica from the Caribbean, in addition to

Fiji, Marshall Islands, Oman, United Arab Emirates and Vanuatu, as none of

these countries were said to have met commitments made to the EU

Commission by the agreed deadline.

In a press release issued by the EU Commission, it said: “Based on the

commission’s screening, ministers blacklisted today 15 countries. Of those,

five have taken no commitments since the first blacklist adopted in 2017:

American Samoa, Guam, Samoa, Trinidad and Tobago, and US Virgin

Islands.

Three other countries were on the 2017 list but were moved to the grey list

following commitments they had taken but are now blacklisted again for

not having followed up: Barbados, United Arab Emirates and Marshall

Islands. A further seven countries were moved today from the grey list to

the blacklist for the same reason: Aruba, Belize, Bermuda, Fiji, Oman,

Vanuatu and Dominica. Another 34 countries will continue to be

monitored in 2019 (grey list), while 25 countries from the original screening

process have now been cleared.”

The EU Commission also advised the public that 34 jurisdictions have

already taken many positive steps to comply with the requirements under

the EU listing process, but should complete this work by the end of 2019, to

avoid being blacklisted next year. The commission said that it will continue

to monitor their progress closely.

These countries are: Albania, Anguilla, Antigua and Barbuda, Armenia,

Australia, Bahamas, Bosnia and Herzegovina, Botswana, British Virgin

Islands, Cabo Verde, Costa Rica, Curacao, Cayman Islands, Cook Islands,

Eswatini, Jordan, Maldives, Mauritius, Morocco, Mongolia, Montenegro,

Namibia, North Macedonia, Nauru, Niue, Palau, St Kitts and Nevis, Saint

Lucia, Serbia, Seychelles, Switzerland, Thailand, Turkey, and Vietnam.

Following the commitments agreed upon in 2017, the EU also claim that

many countries have now delivered the reforms and improvements that

they promised, and 25 countries from the original screening process have

now been cleared: Andorra, Bahrain, Faroe Islands, Greenland, Grenada,

Guernsey, Hong Kong, Isle of Man, Jamaica, Jersey, Korea, Liechtenstein,

Macao SAR, Malaysia, Montserrat, New Caledonia, Panama, Peru, Qatar,

San Marino, Saint Vincent and the Grenadines, Taiwan, Tunisia, Turks and

Caicos, and Uruguay.

Pierre Moscovici, Commissioner for Economic and Financial Affairs,

Taxation and Customs, said: “The EU tax havens list is a true European

success. It has had a resounding effect on tax transparency and fairness

worldwide,” adding, “Thanks to the listing process, dozens of countries

have abolished harmful tax regimes and have come into line with

international standards on transparency and fair taxation.

“The countries that did not comply have been blacklisted, and will have

to face the consequences that this brings. We are raising the bar of tax

good governance globally and cutting out the opportunities for tax

abuse.”

In terms of consequences, the EU Commission confirmed that their

member states have agreed on a set of countermeasures, which they

can choose to apply against the listed countries, including increased

monitoring and audits, withholding taxes, special documentation

requirements and anti-abuse provisions.

Also, the EU Commission also said that it will continue to support member

states’ work to develop a more coordinated approach to sanctions for

the EU list in 2019. In addition, new provisions in EU legislation prohibit EU

funds from being channelled or transited through entities in countries on

the tax blacklist.

What takes place next is that the EU will issue a letter to all jurisdictions on

the blacklist, explaining the decision and what they can do to be de-

listed.

The commission and member states (Code of Conduct Group) will

continue to monitor the jurisdictions that have until the end of 2019/2020

to deliver, and assess whether any other countries should be included in

the EU listing process; and the commission will also continue the open

dialogue and engagement with the jurisdictions concerned, to provide

technical support and clarifications whenever needed and to discuss any

tax matters of mutual concern.

The EU Commission also issued a question and answer release explaining

the short history of the blacklist on money laundering and tax-havens for

future guidance.

In explaining their criteria, among other things, the EU Commission said

that its listing criteria is aligned with international standards and reflect the

good governance standards that member states comply with themselves.

These are:

• Transparency: The country should comply with international standards

on automatic exchange of information and information exchange on

request. It should also have ratified the OECD’s multilateral convention or

signed bilateral agreements with all member states, to facilitate this

information exchange. Until June 2019, the EU Commission only requires

two out of three of the transparency criteria. After that, countries will have

to meet all three transparency requirements to avoid being listed.

• Fair Tax Competition: The country should not have harmful tax regimes,

which go against the principles of the EU’s Code of Conduct or OECD’s

Forum on Harmful Tax Practices. Those that choose to have no or zero-rate

corporate taxation should ensure that this does not encourage artificial

offshore structures without real economic activity. They should therefore

introduce specific economic substance requirements and transparency

measures.

• BEPS implementation: The country must have committed to implement

the OECD’s Base Erosion and Profit Shifting (BEPS) minimum standards.

From 2019, jurisdictions are being monitored on the implementation of

these minimum standards, starting with country-by-country reporting.

<< Back to news headlines >>

A history-making budget Wednesday 13th March, 2019 – Jamaica Observer

History was created on 7 March 2019, when Minister of Finance and the

Public Service Dr Nigel Clarke made his 2019/20 Budget Presentation in

Parliament and announced a $14-billion reduction in taxes.

The key objectives guiding the budget presentation were articulated by

the minister as the pursuit of growth with equity, the pursuit of economic

independence, and the exploitation of economic opportunities while

protecting the poor and vulnerable.

The minister began his presentation expressing gratitude to his family,

friends and significant people who had been integral in his development

and accomplishment. He commended successive Government

administrations for the fiscal discipline that has contributed to Jamaica's

current position and acknowledged the role that the Economic

Programme Oversight Committee (EPOC) has played in the process.

Dr Clarke focused on abolishing or reducing taxes that he labelled as a

nuisance, distortionary, or a hindrance to growth. The proposed tax

measures announced and their estimated revenue effects for 2019/20 are

outlined in the table above.

The minister is banking that the revenue measures proposed will stimulate

economic activity and increase growth.

OVERVIEW OF REVENUE MEASURES

The GCT threshold increased from $3 million to $10 million.

The GCT threshold is the annual gross turnover/revenue level at which a

person undertaking a taxable activity is required to register for General

Consumption Tax (GCT). GCT registered taxpayers are required to file

monthly GCT returns and comply with all aspects of the GCT Act.

Complying with the GCT laws can be administratively burdensome and

costly. The announcement of more than a 300 per cent increase in the

GCT threshold will be welcomed by small business operators.

Some small business operators may need to conduct a cost-benefit

analysis of the merits and demerits of GCT registration as benefits may

outweigh the administrative cost of compliance for some business

operators.

Non-registered taxpayers are not eligible to claim GCT input credits or

refunds and will have to recover GCT incurred on expenses by increasing

their selling price or alternatively absorbing the cost. The Government

should therefore continue to allow voluntary registration for small

operators whose annual revenues fall below the new $10-m threshold.

STAMP DUTY REDUCTION

The current stamp duty regime is complex and cumbersome. Some stamp

duties act as a deterrent to conducting business including raising finance,

refinancing existing debt, issuing share capital, and undertaking business

restructuring.

Replacing a variety of ad valorem rates with fixed stamp rates should

alleviate many of these challenges.

REDUCTION IN TRANSFER TAX

The Transfer Tax Act imposes transfer tax on the transfer of certain

property, including Jamaican real estate, shares and securities in

Jamaican companies. The current rate of transfer tax is 5 per cent of the

gross consideration payable for the property (or the market value in

certain circumstances). It is proposed to reduce this transfer tax to 2 per

cent.

Transfers of real estate which are currently subject to a combined charge

of transfer tax and stamp duty of approximately 9 per cent should now fall

to 2 per cent (ignoring the $5,000 nominal stamp duty proposed). The

minister's expectation is that this will stimulate greater economic activity

and in particular property development and real estate activities.

Who would not welcome a 60 per cent reduction in transfer tax?

REDUCTION IN TRANSFER TAX THRESHOLD FOR ESTATES

The current rate of transfer tax imposed on an estate of a deceased

person is 1.5 per cent of the value of the estate, after deductions and

expenses on the assets of a person who is domiciled in Jamaica at the

date of their death. The assets of the deceased are deemed to be

transferred at market value at the date of death to the people to whom

such property passes.

At present, the first $100,000 of the value does not attract the tax, leading

to a great majority of estates being subject to this tax. This has dissuaded

people who have inherited land from regularising their land title.

It is proposed to increase this tax-free estate threshold from $100,000 to

$10,000,000. This new initiative serves as an incentive to complete the

administration of estates and regularise land titles. These regularised land

titles can then be used as collateral to secure a loan to develop the

property or fund a start-up business, etc.

The benefit is twofold, as it will become easier for the Government to

collect property taxes from these properties with regularised titles as

people will be more motivated to keep their property ownership in good

standing.

PARTIAL ABOLISHMENT

Asset tax is imposed on companies within the meaning of the Companies

Act, with certain exceptions, a society registered under the Industrial and

Provident Societies Act and other prescribed people.

Taxpayers are classified into two categories, namely, Specified regulated

entities (deposit-taking entities regulated by the Bank of Jamaica and

securities dealers and insurance companies regulated by the Financial

Services Commission) and unregulated people (mainly non-financial

institutions).

Asset tax is imposed on specified regulated entities at the rate 0.25 per

cent of the value of their 'taxable assets'. The rates payable by non-

financial institutions vary based on a scale of asset values, with the tax

ranging from a low of $5,000 to a maximum of $200,000. It is proposed to

abolish the asset tax payable by non-financial institutions from the year of

assessment 2019.

Specified regulated entities shall continue to be liable for asset tax at the

ad valorem rate. There are separate annual payment and filing

requirements for asset tax. Additionally, no relief is granted as there is a

specific prohibition on claiming an income tax deduction for asset tax

incurred.

ABOLISHMENT OF MINIMUM BUSINESS TAX (MBT)

The MBT was originally introduced as part of a tax collection effort to

collect tax from entities that otherwise were not filing or paying income

tax. An annual MBT of $60,000 is required to be paid in two instalments,

June and September of each year.

Minister Clarke indicated that the MBT was distortionary and discriminatory

emphasising the current obligation of both dormant entities and loss-

making businesses to pay MBT. He indicated that the removal is

anticipated to reduce costs for small and microbusinesses, align taxation

with profitability, encourage greater risk-taking activity and small business

formation.

The minister did not indicate that MBT would be abolished for people

other than companies' self-employed individuals, for example. Under

current MBT rules, individuals are not liable to MBT if their gross revenues

from business activities fall below the GCT turnover threshold. Given the

proposal to increase this GCT threshold to $10 million per annum, it is

anticipated that more such taxpayers will benefit from the increase and

therefore should also be able to avoid the MBT. With the abolition of the

MBT, Tax Administration Jamaica will need to employ additional measures

to enforce compliance by such entities.

<< Back to news headlines >>

TAJ up for modernisation this fiscal year Wednesday 13th March, 2019 – Jamaica Observer

The Ministry of Finance and the Public Service hopes to modernise the Tax

Administration of Jamaica (TAJ) during the fiscal year 2019/20.

During his budget presentation last Thursday, Minister of Finance Dr Nigel

Clarke said the Ministry intends to improve the physical infrastructure of

the tax office, and in doing so, will increase the cadre of cashiers, expand

its queue management system and implement additional e-service

solutions to improve customer service delivery and experience.

TAJ will also develop a mobile app to accommodate payment of certain

tax types including property tax and traffic ticket fines.

“There are many efforts to improve service delivery in the public sector,”

Clarke said.

In 2017, the Government implemented a Traffic Ticket Amnesty to allow

motorists with unpaid traffic ticket fines to make payments without

incurring a penalty or interest.

As with previous amnesties, the objectives were to enhance revenue

administration and collection; allow persons to clear their driving record;

improve the efficiency of the courts; and reduce the number of traffic

cases before the courts.

Since then the Government has conducted two traffic tickets amnesties,

raking in over $360 million in back payments. It's not clear if the

development of the mobile app will eliminate the need for amnesties

going forward.

In addition to the mobile app, the upcoming fiscal year will also see the

Government undertaking the designing and planning process for new tax

offices to replace those at Portmore, Cross Roads, Christiana, Santa Cruz,

St Ann's Bay, Brown's Town, Buff Bay, as well as for the retrofitting and

reorganisation of tax offices in Mandeville and Montego Bay.

<< Back to news headlines >>

Mark Golding attacks Jamaica'slow growth and inequality Wednesday 13th March, 2019 – Jamaica Observer

Shadow Finance Minister Mark Golding began his budget speech

yesterday by noting “the burning issue of low growth”, observing that

even what he called the “modest but achievable” growth targets the last

PNP Administration had set for the years 2013/2014 to 2019/2020 had now

slipped — and that if they had been achieved there would have been

more money to spend on wages, hospitals, farm roads and water systems.

Golding also observed that the government had therefore “failed

miserably” in meeting the target they set themselves.

Mentioning reaching the target of 5 per cent of GDP in year four, he

compared it to the 1.5 per cent GDP target for 2019/2020, our year four,

comparing that to an average of over 2 per cent GDP growth between

2003 and 2006.

He argued that if the new definition of public debt introduced April 1st

2017 had been used for the debt in 2016, the PNP would have left it at 113

per cent of GDP as opposed to the then recorded 122.3 per cent.

He noted the cut in the primary surplus, allowing the announced $14

billion tax cut, was due to our reaching the debt to GDP target a year

earlier due to the Petrocaribe debt buy back at less than 50 cents on the

dollar, a reduction worth 9 per cent of GDP.

Golding credited previous administration's tax reforms such as third party

information laws and transfer pricing rules (as well as organisational

changes) with having driven the sharp recent improvement in tax

collection, from $411.85 billion in fiscal year 2015/2016, to a projected

$565.88 billion in fiscal year 2019/2020, or an increase in taxes of 44.3 per

cent or $154 billion. He noted this is way above the 19 per cent increase in

inflation, or the cumulative increase in nominal GDP of 32.8 per cent, but

that it couldn't have come from growth “as there has been precious little

growth”.

He argued that what he termed the “tax rollbacks” could have been

directed to cutting GCT, or reducing SCT on gas, questioning the move to

indirect taxation as “worsening inequality”, and calling for all taxpayers to

get a break, “not just beneficiaries of corruption and poor governance”.

Addressing the tax package specifically, he stated that they had no

objection to the abolition of the minimum business tax, which he said “was

always intended to be a short-term measure.”

Concerning stamp duty, he argued than an important distortion (the

registration fee of 0.5 per cent for mortgages on real estate) appeared to

have been overlooked and argued the new $5,000 stamp duty fee was

too high for transactions under $1 million for smaller secured micro and

small business loans, which should be zero or a nominal $20 instead.

He argued that the reference in the budget to equity was not “to social

justice and fairness”, as it was instead skewed to assets and wealth, when

ordinary Jamaican consumers, the health system and public sector

workers all needed a break. He also pointed out the still low allocation to

PATH on a per head basis despite the 25 per cent increase.

He asked whether part of the $72 billion spent on central government

capital expenditure could have been better spent on human capital.

A key critique was what he described as the poor performance of the

Ministry of Growth and Job Creation in improving Jamaica's world

rankings for Competitiveness and Ease of Doing Business.

He argued that the government's inability to drive growth-inducing

reforms is having negative consequences for Jamaica's international

competitiveness. He added that the Economic Growth Council needed

broad-based representation, as so far bureaucracy problems had been

addressed through governance by “phone calls” or “behind the scenes

pressure” rather than transforming “an inefficient, wasteful and

uncompetitive system” arguing “the Government does not have what it

takes to transform the system”.

He contrasted the government's weakness “in developing

transformational legislation” with the Opposition's time in office which

included the “Super Form” for starting new businesses, the “Secured

Interests in Personal Property Act”, and modern insolvency legislation.

He recommended that the prime minister decentralise his currently

excessively concentrated executive authority (which includes more than

30 departments and agencies and some of our largest and most complex

and diverse public bodes), due to what he called its unwieldy, “giant

octopus” type nature. to allow greater focus and clearer lines of

responsibility,

He added that the consolidation of agriculture into industry and

Commerce was misconceived, as agriculture continues to underperform

in the absence of any clear vision for rural development, while Industry

and Commerce has failed to continue the focussed drive on improving

Jamaica's international competitiveness.

Golding mentioned a number of other issues of concern: corruption and

weak governance such as Petrojam, counter-productive execution of

capital expenditure (three major road projects occurring at once), the

labour force shrinking due to people dropping out, Jamaica's rollercoaster

foreign exchange market (wild swings in our dollar) and the need for

participatory decision making in the move towards inflation targeting (he

called for a transparent and inclusive process).

He also called for more innovative policies to promote credit creation,

and the “normalisation” of the capital requirements for general insurance

companies to allow capital to be re-directed to productive assets.

Finally, Golding called for social transformation through investment in

human capital and rural development, including a new housing deal for

the poor and improved social amenities such as street lighting, garbage

collection and water supply for those deprived communities “treated

shamefully by the state”, arguing in conclusion that the emphasis of his

party on social justice was the key difference between the JLP and PNP.

<< Back to news headlines >>

NLCB official: Question mark over Lotto booth robberies Thursday 14th March, 2019 – Trinidad Express Newspapers

ARE National Lotteries Control Board (NLCB) agents arranging robberies at

their own booths? The NLCB believes this may be so.

NLCB online manager Rolph Clarke said yesterday there was a 'question

mark' over some robberies which have occurred in Tobago and Trinidad.

'We have reason to believe that some robberies are self-managed.

People are quite prepared to take a blow over the head after they have

lost our funds, either through gaming themselves or utilising these funds for

their personal use,' he said.

He added: 'We have a few situations like that which that we are trying to

treat with. Hence the reason we are trying to improve our agent networks

in terms of their accounting to us.'

Clarke said the NLCB is now rolling out a 'credit policy' which will monitor

lottery agents.

'We are strengthening our monitoring system of the agents and their

activities so that we can flag much earlier the sort of mismanagement

that may be taking place at any given point in time,' he said.

'The system is being improved to accommodate that and hopefully in the

next two months or so we will have a much-improved system to allow us

to accomplish that far more effectively,' he stated.

Clarke was responding to questions by Public Accounts Committee (PAC)

member Ayanna Webster-Roy, as the Committee examined the NLCB's

financial statements for the years 2009 t0 2012 yesterday.

NLCB currently operates a variety of games in Trinidad and Tobago such

as Lotto Plus, Play Whe, Cash Pot, Pick2, Pick4 and Scratch.

$26 billion gaming industry Clarke said up to December 2018, the NLCB

had 1000 active terminals in Trinidad and about 40 in Tobago.

Responding to a question by Senator Lester Henry, Clarke said the NLCB

stipulates that agents achieve a minimum of $25,000 in sales per week.

'But that could vary up to $100,000 a week, $150,000 in some instances

depending on the particular trade style or location,' he noted. He said

agents are paid a commission of eight per cent of sales.

The Board's chairman Eustace Nancis said the NLCB's general income last

year was around $3 billion.

Questioned by committee chairman Dr Bhoe Tewarie, NLCB director

Michael Jogee said the company's competition was the illegal 'Whe Whe'

operators, which he said do not contribute to the ten per cent tax on

winnings over $1,000 introduced by Government in August last year.

Breaking down the size of the local gambling market, Jogee said 'casino

tables' captured about two per cent of market share; illegal 'Whe Whe'

about five per cent; the NLCB, about 12 per cent; casino roulette

machines- 14 per cent; casino slot machines29 per cent, horse racingnil;

and roulette machines at bars- 28 per cent.

He said according to 2018 figures from the Ministry of Finance's Gaming

Task Force, the entire gaming market was worth $25.6 billion, 'I want to

understand this clearly…there are approximately $23 billion worth of

gambling in T& T that is outside the control and jurisdiction of the NLCB?'

Tewarie asked.

'It would seem so, chairman,' Jogee responded.

$2 million owed in tax

NLCB's financial comptroller Wendy Dwarika told the parliamentary

committee that lottery agents still owed the company about $2 million in

'10 per cent winnings tax'.

She explained that in December last year, the NLCB identified a system

error, in that the tax was omitted from the weekly liability reports the

agents received on a weekly basis.

The liability report indicated the sums agents are supposed to remit to the

NLCB, she explained.

'So that had to be recalculated and it has been corrected. And it turned

out that there was an outstanding balance that was due from the agents

representing this ten per cent tax,' Dwarika said.

'The agents have been advised of the amounts and we have collected

on most of it, about 80 to 90 per cent of it. It's about $2m outstanding at

the moment,' she said. Dwarika said the NLCB will give agents another

month to pay off their debt.

'And then we will have to probably take further stringent measures, and

that may be suppression of the terminal until the amount is paid,' she said.

<< Back to news headlines >>

Max 737 jets banned Thursday 14th March, 2019 – Trinidad Express Newspapers

THE Trinidad and Tobago Civil Aviation Authority (TTCAA) last night issued

an order prohibiting the Boeing 737 Max 8 and Boeing 737 Max 9 aircraft

in T& T's airspace.

The move comes on the heels of the United States Federal Aviation

Administration (FAA) also banning the aircraft.

TTCAA Director General Francis Regis signed the prohibition order after he

conducted a review of the safety data and 'pursuant to Section 5, 6 and

8 of the Civil Aviation Act No 11 of 2001 and found the said aircraft NOT

TO BE in a condition safe for use. You are hereby notified that the said

aircraft is PROHIBITED FROM USE in civil aviation operations within and over

Trinidad and Tobago until and unless found by the Director General of

Civil Aviation to be in a condition which is safe for use, conditional upon

the satisfactory resolution of the under-listed safety of flight issues.'

The move is 'in accordance with the United States Federal Aviation

Administration (FAA) emergency order of prohibition'.

While there is now a global ban on the controversial aircraft there was

silence yesterday on the status of Trinidad and Tobago's deal with Boeing

to lease twelve 737 Max 8 aircraft for state-owned Caribbean Airlines.

CAL had announced its move to lease 12 of these 737 Max 8 aircraft with

the first one scheduled to arrive in December 2019.

The Express contacted CAL Chief Executive Officer (CEO) Garvin Medera

yesterday who said the FAA grounding the aircraft was the right thing to

do. He did not respond on how the Boeing crisis would impact on CAL's

lease orders.

'We don't fly the Max 8 and I agree with grounding this aircraft until all of

the reports and conclusions are made. Safety needs to be the top priority,'

Medera stated to the Express via text.

And Finance Minister tweeted last night: 'The TTCAA has issued a flight

prohibition notice for the Boeing 737-8 Max and 737-9 Max. Like the FAA

notice of prohibition, this notice does not affect Caribbean Airline's

current fleet of 737-800s.'

Sinanan: International crisis

Transport Minister Rohan Sinanan said last night in a television interview

that the matter is an 'international crisis'.

He said when the US lifts their prohibition order this country's Civil Aviation

Authority will do same.

The Minister said he cannot answer when this order will be lifted as

investigations are ongoing.

'Remember this is a big international crisis ... and I am sure they will have to

take their time to ensure really what caused the aircraft to go down,' he

said.

He said he and the Airports Authority have been in contact with carriers

such as American Airlines which have indicated they are moving around

other aircraft to ensure that passengers going in and out of Trinidad and

Tobago will be accommodated. He said there was an aircraft that was

coming into Trinidad and had to turn back. Sinanan added that

passengers did turn up at Piarco International Airport for their flights

yesterday and American Airlines has indicated that from today they

should be able to move passengers with minimal disruptions. Former

director general of the T& TCAA Ramesh Lutchmedial said yesterday the

AA aircraft would likely remain grounded in T& T until the airline applies for

and receives a ferry permit, allowing it to have a pilot-only crew of 'ferry

pilots' conduct a 'ferry flight' where the only personnel on the craft would

be ferry pilots.

<< Back to news headlines >>

Refinancing plan close for US$850m bullet payment Thursday 14th March, 2019 – Trinidad Express Newspapers

WITH about five months to go before the bullet payment on its US$850

million bond is due, Trinidad Petroleum Holdings (TPH), the successor

holding company which replaced Petrotrin last year, is close to

completing the refinancing of the bond.

TPH chairman Wilfred Espinet told the Express that it was always expected

that the company would seek financing to deal with the bond payment

when it becomes due.

He confirmed a Reuters story yesterday which said TPH was in advanced

debt restructuring talks with banks and has secured loan commitments of

up to US$1.4 billion based on the state-owned company's oil reserves.

'Morgan Stanley, Credit Suisse, Panamanian trade bank Banco

LatinoAmericano de Comercio Exterior (Bladex), First Citizens Bank and

ANSA Merchant Bank are arranging approximately US$1.2 billion-US$1.4

billion of loans,' Reuters reported yesterday.

It said the sum would finance costs related to closing of the refinery,

severance pay for the 1,700 direct jobs lost last year and cover the US$850

million bullet bond payment in August.

'Approximately US$400 million was lent on a short-term basis, and

proceeds were ring-fenced specifically for costs related to closing the

refinery and paying off retrenched staff, the sources said. Morgan Stanley

is also understood to be working with TPH on a liability management

exercise to repay, or refinance Petrotrin's US$850m bond due in August,

the sources said,' according to the Reuters report. The report noted that

the company faces 'the uphill task of convincing investors of the merits of

a new business plan and smaller workforce.'

Espinet is hoping that the company can raise enough to finance the debt

without the intervention of the Government.

He confirmed that members of the TPH financing team, led by director

Nigel Edwards, met with rating agency Moodys this week to outline a plan

that prioritises its more profitable oil and gas exploration and production

(E& P) sector over oil refining, which was previously core to company

operations. Edwards is the executive director of the Unit Trust Corporation.

When Petrotrin closed last year, a holding company was created with

three entities – Heritage Petroleum, which will oversee the E& P business;

Paria Fuel Trading Company; and Guaracara Refining Company –

alongside holding company TPH.

The Reuters report said that TPH's decision to scale back refining is due to

T& T's lack of domestically produced crude oil and millions of dollars of

capital expenditure required to upgrade the aging refinery.

Trinidad & Tobago has a sub-investment grade of Ba1 on its sovereign

debt from Moody's Investors Service, but S& P Global Ratings has the

island in highgrade territory at BBB+.

'TPH is also understood to have secured working capital credit lines from

local Caribbean banks including Republic Bank. These short-term lines,

valued between US$178m-US$195m in total, are guaranteed by the

government, the sources said.

In another cost-saving measure, TPH has engaged Scotiabank to oversee

a sale of its refinery, two of the sources said,' the report said.

TPH's has another bond with US$218.75 million outstanding that is due to

mature in May 2022. That bond is amortising, meaning the principal and

interest are paid down in regular, semi-annual payments.

<< Back to news headlines >>

ANSA Coatings enters Cuba Thursday 14th March, 2019 – Trinidad Express Newspapers

LOCAL paint manufacturer, ANSA Coatings Limited, has entered the

Cuban market. Yesterday, the company loaded a container with over

€500,000 worth of Sissons Paint products bound for Cuba. Witnessing the

loading, held at ANSA Coatings Industrial Park, Tumpuna Road, Guanapo,

Trade Minister Paula Gopee-Scoon congratulated the company on

penetrating an additional market.

Gopee-Scoon noted that apart from increasing exports and generating

foreign exchange, jobs would be created by the company's expansion

into the additional market.

'The Cuban market is significant for us with 11 million people and another

three million in tourists,' she said.

'Cuba, as a trading partner, remains important to Trinidad and Tobago.

Eighty per cent of the goods from the region entering Cuba originate in

Trinidad and Tobago,' she noted.

<< Back to news headlines >>

RFHL rises to $120 Thursday 14th March, 2019 – Trinidad Express Newspapers

OVERALL Market activity resulted from trading in 13 securities, of which

three advanced, three declined and seven traded firm.

The Composite Index declined by 0.03 points (0.00 per cent) to close at

1,333.87. The All T& T Index declined by 0.47 points (0.03 per cent) to close

at 1,765.15.

The Cross Listed Index advanced by 0.06 points (0.05 per cent) to close at

121.83. The SME Index remained at 99.50.

Trading activity on the first-tier market registered a volume of 112,389

shares crossing the floor of the Exchange valued at $3,206,377.86.

National Flour Mills was the volume leader with 43,995 shares changing

hands for a value of $72,591.75, followed by TTNGL with a volume of

39,323 shares being traded for $1,180,580.34. West Indian Tobacco

Company contributed 14,118 shares with a value of $1,355,585.16, while

First Citizens Bank added 4,925 shares valued at $174,380.70. Republic

Financial Holdings Ltd registered the day's largest gain, increasing $0.08 to

end the day at $120. Conversely, TTNGL registered the day's largest

decline, falling $0.10 to close at $30.02. On the mutual fund market,

279,293 shares changed hands for a value of $5,641,245.60. CLICO

Investment Fund was the most active security, with a volume of 279,253

shares valued at $5,640,700.80. CLICO Investment Fund remained at

$20.20. Calypso Macro Index Fund remained at $13.62.

The second-tier market did not witness any activity.

The SME market did not witness any activity. CinemaOne remained at

$9.95.

The USD equity market did not witness any activity. MPC Caribbean Clean

Energy remained at US$1.00.

<< Back to news headlines >>

Scotia’s posts $184m first quarter income Wednesday 13th March, 2019 – Trinidad and Tobago Newsday

SCOTIABANK TT's after tax income has risen by 27 per cent, or $39 million,

to $184 million for the quarter ending January 31. The bank earned $145

million for the same quarter in January 2018.

Scotiabank in a statement yesterday said the increase was driven by

growth in the retail and commercial loan portfolios together with a tax

credit and lower impairment losses on financial assets.

Other signs of its financial strength were its return on equity at 18.47 per

cent and return on assets at 3.06 per cent, compared respectively to

14.94 per cent and 2.4 per cent in January 2018. Earnings per share rose

from 82.4 cents to 104.6 cents.

The bank's board has approved a first quarter dividend of 50 cents per

ordinary share – unchanged from the 2018 first quarter – payable on April

12 to shareholders on record as at March 22.

Scotiabank managing director Stephen Bagnarol celebrated the bank's

strength and resilience despite the challenging economic climate

“Solid growth year over year of over $1 billion in loans to customers

demonstrates that our distribution channels and sales and service culture

remain core to us. Over the last five months, we have been engaging

several clients in customer surveys where we are seeking to gain insights

on areas that we can improve our performance.

"The feedback that we have received is helping us to improve our service

and strengthen our relationship with our customers," he said.

Bagnarol also addressed safety concerns identifying measures to combat

fraud, such as Scotia Alerts which allows customers to monitor their

accounts.

"The safety and security of our customer accounts and information remain

top priority at Scotiabank. We have undertaken various initiatives to

combat the disruptive attempts made by fraudsters," he said.

Scotiabank, along with the Bankers Association, also continues to

educate customers and the public about not sharing personal information

and "continuously being on guard against attempts to deceive and

obtain information through fraudulent means."

Bagnarol also spoke of the bank's success within the global operations of

its Canadian parent group, the Bank of Nova Scotia, saying the subsidiary

has been recognised for outstanding community performance.

Scotiabank TT's manager public and corporate affairs has been

recognised as the community champion.

“These awards are testament to the community spirit which we exhibit as

we make a difference in the lives of our young people in Trinidad and

Tobago," said Bagnarol, thanking stakeholders for their "loyalty,

commitment, trust and confidence.”

<< Back to news headlines >>

Prestige profits drop 20% Thursday 14th March, 2019 – Trinidad and Tobago Newsday

Kentucky Fried Chicken (KFC), a brand of Prestige Holdings Ltd’s slew of

fast food restaurants in the country, last year did quite well in the first

quarter, but struggled to maintain its momentum throughout the rest of

last year.

The cause of this was mainly due to “rising costs and the overall market’s

resistance to price adjustments to offset these costs.” This simply means

price increases in its products served to its customers. This was recently

disclosed by Prestige Holdings chairman Christian Mouttet.

He said the company experienced a number of difficulties last year, some

were blamed on the slow economy together with foreign exchange

shortages and the resultant high conversion rates, some, because of

market forces and some self-inflicted.

The chairman said, “Mostly, however, we recognise that there were areas

in our business that are within our ability to control and affect, even in this

difficult economy and work is ongoing by your Board and management

to bring about improved shareholder returns.”

So, the fact that Prestige Holdings suffered a decrease in its profits of 20

per cent for 2018 – dropping from $33.2 million in 2017 to $26.4 million for

the same period in 2018 – has not been blamed on any one franchise. As

a result, earnings per share last year dipped from 54.5 cents in 2017 to 43.2

cents last year. The company is the franchise holder for the chain of fast

food restaurants of Starbucks, TGI Fridays, Pizza Hut, Subway and KFC.

Mouttet said his company was facing “significant challenges with

availability of foreign exchange to fund our operations and the onerous

costs associated with having to purchase alternative currencies to US

dollars to meet some of our obligations. That cost in 2018 alone was

approximately $6 million and cannot be passed on to customers.”

Continuing he said, “Additionally, consumers have become more

discerning with their choices and certainly less forgiving when it comes to

price and value. We are working harder in all areas and investing in

innovation and convenience in order to continue to earn our customers’

trust and loyalty."

“We believe,” Mouttet added, “that there are areas for improvement in

our business, which we are diligently working to address as well as

opportunities for growth with our strong stable of brands. Although our

performance in 2018 was disappointing, we expect the initiatives outlined

above to take hold as we progress and become apparent in the latter

part of 2019.”

As far as KFC is concerned, the company has put in place several

initiatives to drive transactions and sales including new value offerings

catering to individuals and families, faster service time at the drive through

locations, acquisition of new motorbikes to improve and expand delivery

and improved product availability at the restaurants.

Regarding the Subway franchise which really made strides in the second

half of 2018, Mouttet said, “Under new and stronger management of the

brand, we have experienced positive trends in most key areas.” He

praised the new management team and associates in the restaurants

and the support centre who played a significant role in bringing about

these improvements.

Touching on TGI Fridays, which the chairman termed “an important and

profitable brand in our portfolio,” he also revealed the opening of the

company’s first new restaurant in 13 years at the Trincity Plaza. This is

expected later this month.

“Our Pizza Hut brand experienced some growth but performed below

expectations,” said Mouttet. “Pizza Hut is a significant growth brand for

our company and a new restaurant was opened in October, one month

before the end of the financial year and two new restaurants are already

under construction for 2019,” he added.

The Starbucks brand, the newest of the company’s franchises, “continues

to perform well and two new restaurants were opened during the year.”

Two new restaurants are expected to open this year as the brand keeps

its promise to bring the Starbucks experience to customers throughout the

country.

Under the leadership of Simon Hardy, newly appointed chief executive

officer (CEO), great things are expected. Hardy has approached his

position with vigour and a clear sense of purpose and Mouttet said, “with

the board’s support, is bringing about changes in management and

execution that are encouraging and should serve our company well into

the future.”

<< Back to news headlines >>

Dundas says more cruise lines have cancelled calls to Antigua and

Barbuda Thursday 14th March, 2019 – The Antigua Observer

The president of the Antigua and Barbuda Cruise Tourism Association

(ABCTA) Nathan Dundas said yesterday that more cruise lines have

cancelled their scheduled calls to Antigua and Barbuda.

In an email obtained by OBSERVER media yesterday, Dundas told cruise

stakeholders that 14 cruise calls previously scheduled for Antigua and

Barbuda for the upcoming winter season have been cancelled.

According to the email, the cruise lines Holland America and Seabourn

have decided to withdraw the Seabourn Odyssey, the Seabourn Sojourn,

the Volendam and the Konigsdam, which were expected to bring visitors

to the island between November 2019 and April 2020.

The itineraries were listed in the email as follows: Seabourn Odyssey,

November 19th, 2019; Volendam, November 15th, 2019; Seabourn

Odyssey, November 28th, 2019; Konigsdam, December 11th, 2019;

Seabourn Odyssey, December 12th, 2019; Seabourn Sojourn, December

23rd, 2019; and Seabourn Odyssey, December 24th, 2019.

Also, the Seabourn Odyssey was expected to visit Antigua and Barbuda

twice per month for the first three months of the new year, 2020, while the

Volendam was expected to call on April 1st, 2020.

This recent development followed reports two days ago that Carnival

Cruise Lines has cancelled its scheduled calls to Antigua and Barbuda.

American news media FOX News reported yesterday that the

representatives for Carnival Cruise Lines informed them that the rationale

behind the decision was that government officials had made the cruise

line feel unwelcome.

According to the news report, the representatives said, “Government

officials in Antigua have taken steps which indicate they do not want

[the] cruise lines and our guests to visit, so for the time being we are

focusing our itineraries on the destinations that are more welcoming.”

Meanwhile, requests for comments from Prime Minister Gaston Browne,

Tourism Minister Charles “Max” Fernandez and Political Leader of United

Progressive Party, Harold Lovell, at the time of this reporting, have proven

futile.

OBSERVER media also reached out to Holland America Lines and

Seabourn Cruise Lines, but was unable to get an official statement at the

time.

<< Back to news headlines >>

EU says we will not be placed on their blacklist Tuesday 12th March, 2019 – BVI News Online

The BVI will not be placed on the European Union’s blacklist of non-

compliant tax haven jurisdictions.

Premier Andrew Fahie made that announcement on Tuesday in a report

to the House of Assembly.

He said: “The European Union has announced today that it recognizes the

BVI as compliant with its fair taxation principles as well as being a

cooperative jurisdiction. The BVI has been working closely with the EU to

meet its requirements regarding fair taxation.”

“This milestone has been achieved due to the hard work and tireless

efforts of the previous government administration and your new

government,” the Premier added.

He said the outcome was not surprising considering that the BVI “has

always been a jurisdiction that keeps pace with international standards”.

At the beginning of the year, the Economic Substance (Companies and

Limited Partnerships) came into effect. The Act, which was implemented

under an NDP government, was a requirement for the BVI to keep off the

EU’s Blacklist.

The crux of the legislation mandates that offshore financial services

companies registered in the British Virgin Islands are expected to

physically set up office spaces in the territory if they are to continue doing

business with/through the BVI.

<< Back to news headlines >>

Anegada, VG to get special ‘Development Fund’ Wednesday 13th March, 2019 – Virgin Islands News Online

The Ninth District, namely the sister islands of Virgin Gorda and Anegada,

in the Virgin Islands (VI) are each earmarked for accelerated recovery

and development, in addition to becoming 'energy independent' by

2025, with the implementation of the 9th District Development Fund.

This, according to District Representative and newly elected Minister for

Natural Resources Labour and Immigration, Honourable, Vincent O.

Wheatley, in his maiden address to the VI’s House of Assembly (HoA), on

Monday March, 12, 2019, held at the Multi-Purpose Sports Complex, in

Road Town, Tortola.

According to Hon Wheatley, the administration, specifically the Ministry

under his portfolio has a number of initiatives it intends on pursuing which

will, “undoubtedly require heavy capital investment, therefore I will be

looking into the establishment of the Ninth District Development Fund.”

Tourism Mecca

He told members of the HoA, “…details of this fund will be provided for at

a later date.”

Describing D9 as “arguable” the mecca of VI’s of tourism, Hon Wheatley

did use the occasion to provide some insight into the initiatives being

proposed under the newly elected Virgin Islands Party (VIP) Government.

On the energy front, Hon Wheatley surmised, that “this Territory, like most

other Small Island Developing States (SIDS) in this region and further afield,

face some unique and vexing challenges, one being that of high fuel

prices which translates to a higher cost of living for everyone.”

Acknowledging the conundrum as a “huge task”, Hon Wheatley affirmed,

“I also recognise that it is not insurmountable.”

Energy Independent

He suggested Anegada, as perfect to get its energy independence pilot

programme going, as it already has a closed electrical grid along with an

adequate supply of flat land.

The initiative he said, will be done in conjunction with other relevant

Ministries and agencies such as the BVI Electricity Corporation (BVIEC).

Once implemented in Anegada, the technology and infrastructure will

also be put in place on Virgin Gorda, with the goal of the two islands

being, “energy independent by 2025, no more diesel…this may seem a bit

ambitious but where there is a will, there is a way.”

Land Bank

Expanding more on his plans for D9, Hon Wheatley spoke to the land

related matters and announced that he and his team will immediately

begin “finalizing outstanding land issues and moving speedily on the

creation of a Land Bank that we campaigned on.”

He did caution, while some of “these issues are relatively straight forward,

there are some that are of a more intricate nature that will take a bit more

time….rest assured that these matters will be addressed and finalized.”

Hon Wheatley used the occasion to announce that “it is hoped that as

early as next month, we will begin granting land titles to the people of

Anegada.”

According to the Minister “the issue of land title for our people is of great

importance to this government.”

Banking Services

Committing to restoring banking services in short order to Virgin Gorda,

Hon Wheatley observed that for reasons known and unknown, the banks

operating on the sister island of Virgin Gorda have all ceased

operations…this is a very vexing and frustrating issue for the people of the

ninth district.”

He also used his inaugural address to the HoA, to lobby for better

transportation services between the main sister islands—not just to and

from Tortola but also between Anegada and Virgin Gorda.

According to the District Nine Representative, improved access will also

improve delivery of government services and economic development

especially in the Tourism sector.

<< Back to news headlines >>

Government ‘disappointed’ by Dominica’s inclusion in new EU blacklist Wednesday 13th March, 2019 – Dominica News Online

The Government of Dominica has said that it is extremely disappointed in

the new tax haven blacklist which was adopted on Tuesday by EU

Finance Ministers and in particular by Dominica’s inclusion on the list.

A release issued by the government on Tuesday states that the list “unfairly

and without proper justification names and shames countries as non-

cooperative tax jurisdictions.”

The EU move triples the roster to 15 countries which include Dominica

along with American Samoa, Aruba, Barbados, Belize, Bermuda, Fiji,

Guam, Marshall Islands, Oman, Samoa, Trinidad and Tobago, the U.S.

Virgin Islands, United Arab Emirates and Vanuatu.

Of the 15 countries that have been blacklisted, 5 have taken no

commitments since the first blacklist adopted in 2017: American Samoa,

Guam, Samoa, Trinidad and Tobago, and US Virgin Islands. 3 others were

on the 2017 list but were moved to the grey list following commitments

they had taken but have now to be blacklisted again for not having

followed up: Barbados, United Arab Emirates and Marshall Islands. A

further 7 countries were moved on Tuesday from the grey list to the

blacklist for the same reason: Aruba, Belize, Bermuda, Fiji, Oman, Vanuatu

and Dominica. Another 34 countries will continue to be monitored in 2019

(grey list), while 25 countries from the original screening process have now

been cleared.

Blacklisted countries face restrictions on EU funding and investments from

the European Investment Bank. EU governments can choose to add their

own sanctions against the blacklisted countries.

However, in its response to the new blacklist, the government is attributing

its inability to make the changes requested by the EU to the devastation

caused by Hurricane Maria in 2017 and to a lack of response from the

Organisation for Economic Cooperation and Development (OECD) (the

international organisation mandated by a wide range of Member States

to monitor and set standards of compliance on tax good governance) to

Dominica’s efforts to join the Convention on Mutual Administrative

Assistance in Tax Matters which requires the sanction of the OECD. This,

the release pointed out is one of the requirements of the EU.

Below is the full text of the government’s response.

The Government of Dominica is extremely disappointed in the new list

issued today by the European Council which unfairly and without proper

justification names and shames countries as non-cooperative tax

jurisdictions, and in particular by Dominica’s inclusion thereon.

The regional grouping of the EU decided in 2017 to adopt a new set of tax

standards over and above that set out by the Organisation for Economic

Cooperation and Development (OECD), the international organisation

mandated by a wide range of Member States to monitor and set

standards of compliance on tax good governance. When this list was first

issued in December 2017, Dominica and other Caribbean islands were put

on a grey list and were asked by the EU to commit to making certain

changes within one year to avoid being put on a blacklist.

Dominica was put on the grey list in December 2017 notwithstanding the

complete devastation of Maria in September 2017. With our country shut

down after Maria, electricity down island wide, communications

disrupted, our people homeless and in desperate need of immediate

assistance, 90% of homes damaged and in some instances destroyed,

roads impassable, businesses shut down for an extended period, the EU

gave us, in our devastated condition, no more time than any other

country to comply with their demands.

Despite these very difficult and devastating circumstances and conditions

we ensured that we complied with all the legislative changes that were

requested by the EU. The proceedings of the Parliament were broadcast

live where these changes were considered and debated.

It is important to note that one of the requirements requested by the EU

was the joining of the Convention on Mutual Administrative Assistance in

Tax Matters which requires the sanction of the OECD. This would have

allowed for the passage of the Automatic Exchange of Information Act,

that the EU had requested. We had applied since 31st May, 2017 to the

OECD to join that Convention. Subsequent correspondences including

letters dated 23rd February, 2018, 29th August 2018 and 19th December,

2018 reiterated our commitment and desire to join that

“An Efficient Service, A Sustainable Future!”

Convention. We have answered all questions and provided all information

required and anticipated that we would have had a positive response to

our request by the end of December 2018. However, and through

absolutely no fault of the Government of Dominica, we have to date, not

been given final clearance from the OECD or a substantive response to

our application.

Senior Ministers of the Government including the Minister of Foreign Affairs

and public officers have explained these facts and the failure to respond

to our application to join the Convention on Mutual Administrative

Assistance in Tax Matters, to EU representatives, to the EU Code of

Conduct Group, EU TAXUD and the EU Council on numerous occasions.

In February this year, we wrote to the EU requesting an extension of time

to allow for a response to be obtained from the OECD to our application

Regrettably, we received no response. Today and notwithstanding the

indisputable facts set out above, we have been blacklisted by the EU on

the “grounds” that “Dominica does not apply any automatic exchange

of financial information, has not signed and ratified the OECD Multilateral

Convention on Mutual

Administrative Assistance as amended and has not yet resolved these

issues.”

This statement of the grounds is misleading, and manifestly unfair. The only

reason why Dominica “has not signed and ratified the OECD Multilateral

Convention on Mutual Administrative Assistance as amended ‘is that the

OECD has to date not given the go ahead to Dominica to sign on. In

other words Dominica is being penalized while it is awaiting a response,

and notwithstanding there was and is nothing else it can do or could

have done. In fact, and in furtherance of a favourable response, we

prepared legislation to take to the Parliament in January this year to have

the Parliament approve and pass these Conventions into law. We had to

withdraw those Bills when no clearance was received from the OECD.

The EU has been a very good development partner of Dominica and has

responded in a positive and very tangible way and has been working with

Dominica very closely to respond to the challenges of Hurricane Maria. In

all of the circumstances we are indeed surprised and dismayed at the

decision of the EU ECOFIN Council communicated today.

We will at all costs endeavour to have the OECD respond to our request

to address this sole outstanding issue with the EU in order that Dominica

can be removed from this list as soon as possible.

<< Back to news headlines >>

Caribbean governments to provide emergency funding of $5.4 million to

LIAT Wednesday 13th March, 2019 – Dominica News Online

Caribbean countries are being asked to contribute a total of US$5.4

million in emergency funding needed to keep the cash strapped Leeward

Island Air Transport or LIAT in the sky.

The decision was made during an emergency meeting held in Barbados

on Monday.

Countries, including the four major shareholders – Dominica, Antigua and

Barbuda, Barbados, and St. Vincent and the Grenadines – along with

Grenada, have agreed to contribute to the US$5.4 million.

Dominica, is being asked to contribute US$347,938 in light of its 25 weekly

flights, St. Vincent and the Grenadines, with 52 departures per week, will

contribute US$723,711 while Grenada, which has 35 LIAT departures per

week, is being asked to contribute US$487,113.

Barbados, which has the 116 weekly departures, the highest by LIAT, is

being asked to contribute US$1.614 million, while Antigua and Barbuda,

which has 69 departures, will contribute US$960,310.

These five countries constitute the “A Group” and while no other

government has come forward in the face of the crisis, the shareholder

governments are targeting a further three; they are Guyana, St. Kitts and

Nevis and St. Lucia, for contributions of US$292,280, US$389,691, and

US$584,536, respectively.

Several other countries serviced by LIAT — including Trinidad and Tobago

— are not included in the request because they have opposed, up front,

putting in any emergency funding into the ailing airline.

<< Back to news headlines >>

Cemented Wednesday 13th March, 2019 – Barbados Today

Rock Hard Cement, owned by Barbadian construction magnate Mark

Maloney, has won round-one of a trade dispute with the Arawak Cement

Company.

The council of trade ministers in CARICOM, together with the global

authority on customs classification, have agreed to the disputed

classification of Rock Hard cement in the Trinidad market which enjoys

lower duties compared to Arawak’s product.

But the final outcome is to be decided when the matter is heard by the

Caribbean Court of Justice (CCJ) from June 11 to 13.

Trinidad Cement Limited – the parent company of Arawak Cement in

Barbados brought an action before the CCJ against Trinidad and Tobago

alleging that the state was misclassifying Rock Hard Cement as “other

hydraulic cement”, as opposed to “Portland cement-building cement

grey”.

As a result of the classification, the competing cement manufacturer

claimed that Rock Hard Cement was attracting a lower rate of duty than

it should.

Rock Hard Distribution Ltd applied to join the proceedings and retained

legal counsel to defend the classification of its cement as “other hydraulic

cement”.

The company provided testimony from international experts on both the

composition of cement and its classification, and the interpretation of the

Harmonised Commodity Description and Coding System on which the

Common External Tariff is based. The CET is the CARICOM duty on extra-

regional products which protects good made in the customs union.

After lawyers for Rock Hard presented the expert testimony to the CCJ,

both Trinidad Cement Limited and the CARICOM Secretariat argued that

the matter of classification falls within the remit of CARICOM’s ministerial

decision-making body on trade issues, the Council for Trade and

Economic Development (COTED) and should be decided by COTED.

The World Customs Organisation (WCO) which represents 183 customs

administrations across the globe that collectively processes about 98 per

cent of world trade, considered the global competent authority on

customs matters, was asked by COTED to provide a ruling on the

classification of Rock Hard Cement.

Both the WCO and COTED have now considered the classification of

Rock Hard Cement and have ruled that Rock Hard Cement is correctly

classified as “Other Hydraulic Cement” which attracts 0-5 per cent duty

under the CET.

Rock Hard Cement said today it fully expects the CCJ to uphold COTED’s

ruling in the matter of the classification of its product.

In response to the developments, Maloney told Barbados TODAY tonight:

“We are glad to know that the ruling is in keeping with what we know to

be true and are glad to see that both WCO and COTED are aligned on

this matter of classification.”

The documents submitted to the CCJ in preparation for the hearing were

filed last Friday by the CARICOM Secretariat’s general legal counsel,

Corlita Babb-Schaefer, acting in the CCJ’s original jurisdiction as arbiter of

the CARICOM Treaty.

The document, a copy of which has been obtained by Barbados TODAY,

revealed that the case is between claimants Trinidad Cement Limited

(TCL) and Arawak Cement Company Limited, the State of Barbados as

defendant, and Rock Hard Cement Limited – the intervener.

Efforts to reach Arawak’s General Manager, Yago Castro, tonight proved

futile.

<< Back to news headlines >>

Barbados backlisted Tuesday 12th March, 2019 – Nation News

BARBADOS HAS BEEN blacklisted by the European Union (EU), and faces

the threat of “sanctions”, including reduced funding.

The EU Council yesterday announced it was adding Barbados to its list of

non-cooperative tax jurisdictions, having assigned the country, United

Arab Emirates (UAE) and Marshall Islands to a grey list a year ago

“following commitments they had taken”.

“Barbados has replaced a harmful preferential tax regime by a measure

of similar effect and did not commit to amend or abolish it by the end of

2019,” the Europeans asserted.

In addition to Barbados, UAE and Marshal Islands, the revised EU list of

non-cooperative jurisdictions for tax purposes now includes Aruba, Belize,

Bermuda, Dominica, Fiji, Oman and Vanuatu.

The EU claimed these jurisdictions “did not implement the commitments

they had made to the EU by the agreed deadline”.

Based on what the EU outlined yesterday in a four-page “fact sheet”,

Barbados and other blacklisted countries now faced the imposition of

measures “which will ensure that the EU list has a real impact”. (SC)

<< Back to news headlines >>

Barbados Records Solid 2018 Tourism Performance Monday 11th March, 2019 – Caribbean 360

CEO of the Barbados Tourism Marketing Inc. (BTMI), William ‘Billy’ Griffith,

has revealed that the island enjoyed a 2.7 per cent increase in stay-over

arrivals last year, compared to the corresponding period in 2017.

During the course of 2018, the Grantley Adams International Airport

(GAIA) welcomed 681,197 visitor arrivals – 17,686 more than 2017. Over at

the Bridgetown Port Inc. (BPI), the island’s cruise tourism was significantly

impacted by the effects of vessel redeployments following on from the

hurricanes of 2017. This was due to the fact that Puerto Rico, the primary

homeport for US based sailings to the southern Caribbean, was severely

affected. However, Barbados has been resilient, and through new

homeporting business, saw a performance of 826,267 arrivals for both

transit and homeporting visitors combined, tourism officials reported.

“I am delighted by this news and what it says about Barbados’ tourism

product,” said Griffith. “It is never easy as a mature tourism destination to

maintain growth at these levels in the competitive business landscape in

which we operate, but I am pleased that through strategic marketing

efforts we have once again proven Barbados’ value as shown by the

record number of arrivals at both the air and sea ports throughout 2018.”

Of the five markets, the United States registered the strongest growth with

8.4 per cent, producing 204,830 visitors to the island compared to the

189,022 arrivals in 2017. Other Caribbean followed, contributing 4.6 per

cent growth of business with 77,149 arrivals for the year. Canada grew by

1.8 per cent to 86,723 arrivals, and the United Kingdom contributed 1.4

per cent growth of the business, and recorded 225,519 arrivals, compared

to the 222,346 recorded in 2017.

Griffith attributed the destination’s noteworthy performance to a number

of strategic and integrated marketing initiatives which were deployed

across Barbados’ top source markets.

“I must commend our tourism teams both here and in our global offices,

whose efforts were instrumental in us achieving this record 2.7 per cent

growth. They did a great job individually, and that’s reflected when we

look at our overall reporting,” he said.

Griffith also acknowledged the contribution of the new business that the

recently opened Sandals Royal located on Maxwell Beach has already

brought to Barbados.

Describing the island’s new attractions as “integral” in differentiating

destination Barbados, he added: “I am happy to say that a number of

new attractions have come on stream – attractions that will differentiate

the product offering we have here in Barbados. There’s the Nikki Beach

club that opened at Port Ferdinand, and last December we experienced

the grand opening of Virgin Holiday’s Departure Beach. The first of its kind,

the beachfront departure lounge allows Virgin customers to spend their

last moments in paradise.”

Most recently, visitors to Barbados have been able to take a trip back in

time and experience riding the railway line from St. Nicholas Abbey and

up the picturesque Cherry Tree Hill. The first trip on the Heritage Railway

was on January 21, 2019.

Looking ahead, Griffith said: “We are already full-steam ahead with our

plans to make sure that 2019 is an equally promising year of growth for

Barbados tourism. We have high hopes for our new airline partnerships,

new hotel accommodations, new product development, and other new

marketing activities in which we will be engaging across our source

markets.”

“We have packaged 2019 as the Year of Wellness and Soft Adventure,

where we will be highlighting the different accommodations, attractions

and activities the island has to offer to support the growing and lucrative

wellness industry,” he added. “And I am confident that with all the new

festivals and events centred on health and wellness, we will once again

be celebrating a record year come January 2020.”

<< Back to news headlines >>

Guyana on verge of sharp economic growth Thursday 14th March 2019 – Guyana Chronicle

The Caribbean Development Bank (CDB) says Guyana is on the verge of

a sharp increase in economic growth this year but immediate prospects

partly depend on ending political uncertainty.

In a country brief released on Wednesday the CDB said in his November

2018 budget speech, Finance Minister, Winston Jordan was targeting 4.6%

GDP growth in 2019, with all major sectors contributing. However, the Bank

said increased political uncertainty in early 2019 may dampen this

momentum. The uncertainty to which the bank refers is the

Opposition no confidence motion, which was passed in the National

Assembly on December 21, 2018. It is alleged that the opposition might

have induced former Government Member of Parliament, Charrandas

Persaud to vote with it on the motion, thus allowing the motion to pass.

Government has since challenged the validity of the vote on several

grounds. The matter is currently before the Court of Appeal.

In addition, the CDB said economic growth in Guyana increased to 3.4%

in 2018, which was mainly due to increased construction activity. Sugar

output fell as restructuring of the industry continued, while there was

mixed performance in the extractive industries. Fiscal performance was

boosted by a tax amnesty, which increased revenues and helped stabilise

the overall deficit. Public debt as a percentage of gross domestic product

(GDP) increased.

The CDB also noted that preparation for oil production continues, noting

that commercial production is due to commence in 2020. This, the bank

said will increase economic growth and provide windfall revenues for the

Government of the Co-operative Republic of Guyana.

The Bank said the proposed Natural Resources Fund (NRF) is supposed to

help manage the risks associated with this new development, including

minimising negative impacts on other non-oil industries. Reforms to the

‘doing business’. environment is also necessary to ensure that non-oil

industries can become more competitive. Other risks include political

uncertainty.

For 2018, the CDB noted that economic growth is estimated to have risen

in 2018. It said based on Ministry of Finance data, GDP grew by 3.4%,

compared with 2.2% in 2017. This partly reflected preparation for the first

commercial oil production in 2020. Construction activity rose by 12%.

Output from other services was up 15%, linked to increased visitor arrivals.

Of the traditional main industries, sugar output fell by nearly 30%.

However, the Bank noted that the government has commenced a

restructuring programme of the Guyana Sugar Corporation (GuySuCo)

being financed by a 5-year external bond issue for $30 billion. This

restructuring includes reducing the workforce and divesting assets, in

order to reduce subsidies. Further, the B ank observed that the mining

industries had mixed fortunes in 2018, noting that gold extraction

declined, mainly due to falling declarations by small and medium-scale

miners. However, bauxite production was up, and declarations of

diamonds, sand and stone increased.

<< Back to news headlines >>

Repsol to drill later this year Thursday 14th March 2019 – Kaieteur News

Houston, Texas- Rowan Companies plc. yesterday announced that Repsol

Exploracion Guyana, S.A. has signed a contract for the EXL II, a high-

specification Super 116E Jack-up rig, for work in Guyana.

The contract is for one well beginning in the third quarter of 2019 with a

duration of approximately 45 days.

The EXL II is currently under contract with BP in Trinidad.

Rowan is a global provider of contract drilling services with a fleet of 25

mobile offshore drilling units, composed of 21 self-elevating jack-up rigs

and four ultra-deepwater drill-ships.

The company’s fleet operates worldwide, including the United States Gulf

of Mexico, Mexico, the United Kingdom and Norwegian sectors of the

North Sea, the Middle East, the Mediterranean Sea, Central and South

America.

Additionally, the company is a 50/50 partner in a joint venture with Saudi

Aramco, entitled ARO Drilling that owns a fleet of seven self-elevating

jack-up rigs that operate in the Arabian Gulf.

<< Back to news headlines >>