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SME eSmart- Powering Your Potential Find out more today by calling: (868)-627-8879 ext. 228 or email: [email protected]
▪ Telecommunication Services of Trinidad and Tobago rating downgraded to CariA-
▪ Trinidad and Tobago Mortgage Finance Company Limited rating reaffirmed at CariAA-
▪ The Government of Anguilla rating reaffirmed at CariBBB+
▪ NCB Financial Group rating upgraded to CariA+
▪ NCB Jamaica Limited rating upgraded to CariA-
▪ NGC’s rating reaffirmed at CariAA+ ▪ NCB Capital Markets Limited’s rating upgraded to CariBBB+
▪ NCB (Cayman) Limited’s rating reaffirmed at CariA
▪ Colonial Fire & General Insurance Company Limited’s rating reaffirmed at CariA
▪ Home Mortgage Bank’s rating reaffirmed at CariA ▪ Mystic Mountain Limited’s rating upgraded to CariBBB ▪ NiQuan Energy Trinidad Limited’s rating reaffirmed at CariA+
▪ Sagicor Financial Corporation Limited’s proposed bond issue initial rating assigned at CariAA
▪ Dominica Agriculture, Industrial and Development Bank’s rating reaffirmed at CariBB-
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Cash Flow Based Lending for Banks & Financial Institutions 4th & 5th November 2019 Guyana
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REGIONAL
Trinidad and Tobago
Plipdeco leads trading
OVERALL stock market activity yesterday resulted from trading in 16
securities of which five advanced, six declined and five traded firm.
New roundabout, 4-lane carriageway for San Fernando
ATTORNEY General Faris Al-Rawi said a mega-road network project to
cater for the development of the San Fernando Waterfront and Skinner
Park will begin in November.
S&P confirms First Citizens rating
STANDARDS & Poor's (S&P) has reaffirmed the First Citizens Group's
BBB/Stable/A-2 rating. The bank, in a press release on Monday, said the
rating was a clear reflection of the group’s sound position in governance,
corporate banking and solid operation revenue, coupled with excellent
capitalisation ratios, as highlighted in the report.
TSTT raises over - $2.7 b on US roadshow
A US$400 million 10-year bond offered by the Telecommunications
Services of Trinidad and Tobago (TSTT) has been “significantly over-
subscribed” the T&T Guardian has learned.
Guyana
Unmitigated oil spill in Payara field could significantly impact Region One
– EIA
Should an oil spill occur in the Payara field of the Stabroek Block, it is likely
to have a significant impact on Region One. This is according to the
Environmental Impact Assessment (EIA) that was done on the project by
Environmental Resources Management (ERM), a consultancy firm that is
based in the United Kingdom.
Guyana Continued
Indigenous leaders urged to craft plan to benefit from oil and gas
resources
Production of oil is expected to commence in the first quarter of 2020, and
the country is projected to receive more than $62Billion (US$300M) in the
first year. With this in mind, the Director of the Department of Energy (DE),
Dr. Mark Bynoe has called on Indigenous leaders to craft a strategic plan
to ensure their communities benefit equally from those resources.
The Bahamas
Govt Finances Face 3-Year Dorian Blow
Hurricane Dorian will likely throw the government's finances off-track for
the next three years, the deputy prime minister has revealed, although its
fiscal "fundamentals" have not altered.
Royalfidelity: $1bn Goal As 'Caribbean's Premier'
RoyalFidelity is now focused on becoming "the premier Caribbean
investment bank and wealth manager" after its management-led buyout
closed last Wednesday, its president has revealed.
Dominica
Dominica to benefit from new climate resilience project
Dominica will be one beneficiary of a new project, focused on improving
local resilience to hurricanes and climate extremes in the Eastern
Caribbean.
The Dominican Republic
Despite LatAm slump, Dominican economy to grow 5%: IMF
The International Monetary Fund (IMF) on Tue. predicted that Latin
America and the Caribbean will experience economic growth of just 0.2%
during 2019, a significant reduction from the 1.4 % expansion projected in
April.
Grenada
Budget day is 20 November 2019
2020 budget will be presented on 20 November 2019
INTERNATIONAL
United States
Futures slip on renewed U.S.-China trade war concerns
U.S. stock index futures dipped on Wednesday as a new U.S. bill taking a
hard line on China stoked fresh concerns about a prolonged trade war,
but more positive results from the banking sector provided some relief and
signaled a solid start to the third-quarter earnings season.
Europe
European shares take a breather before Brexit talks resume
European shares slipped on Wednesday, after closing at their highest level
in more than a year, as London’s last-ditch Brexit talks with Brussels kept
investors apprehensive about making brisk decisions.
Euro zone inflation drops more than foreseen, trade surplus widens
Euro zone inflation dropped to its slowest pace in nearly three years in
September, more than previously estimated, the European Union statistics
agency said on Wednesday.
Euro zone inflation drops more than foreseen, trade surplus widens
Euro zone inflation dropped to its slowest pace in nearly three years in
September, more than previously estimated, the European Union statistics
agency said on Wednesday.
China
China's Ant Financial in talks for loan of up to $3.5 billion at lower rate
Ant Financial, an affiliate of China’s largest e-commerce company
Alibaba Group (BABA.N), is in talks for a syndicated loan of up to $3.5
billion at a lower rate to slash debt costs, Bloomberg reported on
Wednesday, citing unnamed sources.
China Continued
Huawei's third-quarter revenue jumps 27% as smartphone sales surge
Huawei Technologies Co Ltd’s third-quarter revenue jumped 27%, driven
by a surge in shipments of smartphones launched before a trade
blacklisting by the United States expected to hammer its business.
Global
Oil steadies below $59, weaker economic outlook weighs
Oil steadied below $59 a barrel on Wednesday, pressured by concerns
about weaker demand for fuel due to slower economic growth and
forecasts of a further rise in U.S. crude inventories.
Dollar near four-week lows as trade tensions simmer
The dollar held near a four-week low on Wednesday as trade tension
between Washington and Beijing continued to weigh on the global
growth outlook.
Sterling falters as Brexit approaches its endgame
Sterling came off five-month highs and stocks traded sideways on
Wednesday as the European Union and Britain sought to avert a disorderly
Brexit before an EU summit on Thursday.
Oil steadies below $59, weaker economic outlook weighs Wednesday 16th October, 2019 – Reuters
Oil steadied below $59 a barrel on Wednesday, pressured by concerns
about weaker demand for fuel due to slower economic growth and
forecasts of a further rise in U.S. crude inventories.
Prices gained some support due to signs from the Organization of the
Petroleum Exporting Countries that further curbs to oil supply could come
in December. OPEC and its allies meet on Dec. 5-6 in Vienna to review
output policy.
Brent crude LCOc1, the global benchmark, rose 5 cents to $58.79 a barrel
by 1137 GMT. U.S. crude CLc1 gained 24 cents to $53.05.
“Prices are under pressure from increasing pessimism about the global
economy and subsequent demand-side concerns,” Stephen Brennock of
oil broker PVM said.
In a bearish signal for demand, the International Monetary Fund said on
Tuesday the U.S.-China trade war would cut 2019 global growth to its
slowest since the 2008-2009 financial crisis.
“Prices remain under pressure,” said Craig Erlam, analyst at OANDA. “Oil
inventory today from API may be notable albeit unlikely to have any
major impact on the broader trend.”
The American Petroleum Institute (API) reports its weekly U.S. inventory
numbers at 2030 GMT, ahead of Wednesday’s government stocks data.
[EIA/S] Analysts estimate U.S. crude inventories rose by around 2.8 million
barrels last week.
Optimism about an imminent Brexit deal had helped support the market,
although this faded after EU sources said talks had hit a standstill and
Ireland said there were still issues to be resolved.
Analysts have said any agreement that avoids a no-deal Brexit should
boost economic growth and, in turn, oil demand.
OPEC Secretary-General Mohammad Barkindo, meanwhile, has said an
option for OPEC and its allies is to implement deeper cuts in oil production.
On Tuesday, Barkindo said OPEC would do what it could with allied
producers to sustain oil market stability beyond 2020, in a signal the
producers would continue to cooperate.
OPEC, Russia and other producers have a deal to cut oil output by 1.2
million barrels per day until March 2020.
<< Back to news headlines >>
Dollar near four-week lows as trade tensions simmer Wednesday 16th October, 2019 – Reuters
The dollar held near a four-week low on Wednesday as trade tension
between Washington and Beijing continued to weigh on the global
growth outlook.
The dollar’s losses were most pronounced against the Japanese yen,
which had reached a two-and-a-half-month low amid concern the trade
war between China and the United States will weigh on risk appetite.
“The retreat in USD/JPY is obviously a function of the markets being a little
nervous vis-à-vis any Chinese retaliation to the measures passed (in the
U.S.),” said Jeremy Stretch, head of G10 foreign exchange strategy at
CIBC Capital Markets.
The yuan fell after Beijing criticized new U.S. legislation backing pro-
democracy protests in Hong Kong.
Reports of a “Phase 1” trade deal between the United States and China
last week initially cheered markets. Lack of details on the agreement has
since curbed any enthusiasm.”Markets are still cautiously optimistic that
any unwind of the trade negotiations is not going to be a material one,”
he added.
Escalating trade tariffs from China and the United States over the past
year have forced central banks to cut interest rates as global growth
expectations weaken.
On Tuesday, the International Monetary Fund said it expected the global
economy to grow 3.0% in 2019, its slowest pace since the 2008-09 financial
crisis.
“The cost of taking this dispute to its next stage of escalation has
exponentially increased,” Morgan Stanley strategists said in a daily note,
although they added the United States and China might adopt a more
nuanced approach to the trade dispute in the coming days.
Elsewhere, the Norwegian crown NOK= weakened to its lowest since July
2001 at 9.1925 per dollar NOK=D3 and its weakest against the euro since
December 2008 EURNOK=D3.
Norway is a major exporter of oil, making it particularly sensitive to
economic tensions. The central bank has said this week it expects to keep
interest rates on hold.
Trade-oriented currencies such as the Australian dollar AUD=D3 and the
New Zealand dollar NZD=D3 also weakened. The kiwi dollar last traded
down -0.5% at 0.6261.
Against an index of six other currencies .DXY, the dollar was weaker at
98.27 and just above an intraday low of 98.16 reached in Asian trading, its
lowest in nearly four weeks.
<< Back to news headlines >>
European shares take a breather before Brexit talks resume Wednesday 16th October, 2019 – Reuters
European shares slipped on Wednesday, after closing at their highest level
in more than a year, as London’s last-ditch Brexit talks with Brussels kept
investors apprehensive about making brisk decisions.
The pan-European STOXX 600 index was down 0.3%, after closing at its
highest level since May 2018.
London-listed shares of Rio Tinto (RIO.L) were among the biggest decliners
on the STOXX 600, after the miner said its iron ore shipments rose 5%. But it
cut its bauxite and alumina production forecast for the year.
Rio’s shares also took a hit from China iron ore plunging to a six-week low
following a weak demand outlook.
The wider European mining sector .SXPP was down 1.3%, while the
financial services .SXFP and retail sectors .SXRP shed more than 1% on
declines in British stocks.
Brexit negotiations will resume in Brussels on Wednesday morning after
“constructive” negotiations went into the night on Tuesday, but time is
running out to put the deal to vote at an European Summit that starts
Thursday. Any deal will also need approval from the British parliament.
“(The market is) expecting the UK and EU to agree to a deal, but we still
don’t know whether it’s a deal that will get through parliament,” said
Jonathan Bell, Chief Investment Officer at Stanhope Capital.
European stock markets logged strong gains over the past week following
unexpected breakthroughs in Brexit negotiations with Ireland. The
benchmark index has risen more than 2%, while German stocks .GDAXI,
which have large exports to Britain, rose nearly 4%.
Britain's domestically-focused midcaps .FTMC, which rallied 5% in the past
three sessions to its highest level in a year, was down 1% on Wednesday.
In a bright spot, Volkswagen (VOWG_p.DE) shares rose 1% as industry data
showed European car registrations rose 14.4% in September.
Investor focus shifts now to Europe’s earnings season, which gets
underway in earnest next week. Analysts expect an earnings recession to
deepen as companies struggle with uncertainties around Brexit, a
protracted U.S.-China trade spat and Germany’s manufacturing
recession.
STOXX 600 companies are now expected to report a drop of nearly 3.7%
in third-quarter earnings, worse than the 3% fall expected a week ago,
I/B/E/S data from Refinitiv showed.
Dutch semiconductor equipment maker ASML (ASML.AS) slipped 0.3%
despite reporting higher-than-expected quarterly profit and bookings.
Keeping losses in check for the benchmark index were shares of Roche
(ROG.S), which rose 0.9% as the Swiss drugmaker boosted its 2019 sales
outlook for a third time, and said it expects to finish its takeover of Spark
Therapeutics (ONCE.O) this year.
Its shares boosted the healthcare sector .SXDP by 0.4%.
<< Back to news headlines >>
Euro zone inflation drops more than foreseen, trade surplus widens Wednesday 16th October, 2019 – Reuters
Euro zone inflation dropped to its slowest pace in nearly three years in
September, more than previously estimated, the European Union statistics
agency said on Wednesday.
The drop is likely to raise new concerns on the state of the euro zone
economy and may reignite a debate within the European Central Bank
on how to pursue its goal of keeping inflation close to but below 2% over
the medium term.
Eurostat said prices in the 19-country euro zone rose 0.8% on the year,
down from its earlier estimate of 0.9% and lower than the market
consensus of 0.9%.
Eurostat also said the bloc’s trade surplus with the rest of the world rose to
14.7 billion euros ($16.2 billion) in August, from 11.9 billions the previous
year, as imports fell more than exports.
The revised inflation reading marked a more pronounced slowdown than
August’s 1.0%. It was the lowest rate since November 2016, when prices
rose 0.6%.
However, a narrower inflation indicator, which strips out volatile energy
and unprocessed food prices and is monitored closely by the ECB, rose to
1.2% in September from 1.1% in August, in line with earlier Eurostat
estimates on Oct. 1.
Excluding energy, food, alcohol and tobacco, inflation grew 1.0% in
September, Eurostat said, confirming earlier figures.
The revision of the headline figure was caused by lower-than-expected
inflation for industrial products, another worrying sign for euro zone
manufacturers, who are facing drops in output and in confidence.
Prices for industrial goods, excluding energy, went up 0.2% on the year in
September, Eurostat said, revising its earlier 0.3% estimate.
Energy prices were confirmed falling by 1.8%. Inflation for service, the
largest segment of the euro zone economy, rose 1.5%, in line with previous
estimates.
The trade data also released on Wednesday confirmed manufacturing’s
difficulties. Exports of goods to the rest of the world fell by 2.2% on the year
in August.
Imports dropped even more, 4.1%, as global trade tensions seemed to
take their toll. Trade among euro zone states also fell 5.6% on the year.
Despite U.S. threats and sanctions against global partners, the latest data
showed widening gaps. The EU trade surplus with the United States grew
to 102.7 billion euros in the period from January to August, from 90.6
billions the year before.
The EU’s trade deficit with China grew to 127.4 billion euros over the same
period, from 116.3 billions a year earlier.
<< Back to news headlines >>
Euro zone inflation drops more than foreseen, trade surplus widens Wednesday 16th October, 2019 – Reuters
Euro zone inflation dropped to its slowest pace in nearly three years in
September, more than previously estimated, the European Union statistics
agency said on Wednesday.
The drop is likely to raise new concerns on the state of the euro zone
economy and may reignite a debate within the European Central Bank
on how to pursue its goal of keeping inflation close to but below 2% over
the medium term.
Eurostat said prices in the 19-country euro zone rose 0.8% on the year,
down from its earlier estimate of 0.9% and lower than the market
consensus of 0.9%.
Eurostat also said the bloc’s trade surplus with the rest of the world rose to
14.7 billion euros ($16.2 billion) in August, from 11.9 billions the previous
year, as imports fell more than exports.
The revised inflation reading marked a more pronounced slowdown than
August’s 1.0%. It was the lowest rate since November 2016, when prices
rose 0.6%.
However, a narrower inflation indicator, which strips out volatile energy
and unprocessed food prices and is monitored closely by the ECB, rose to
1.2% in September from 1.1% in August, in line with earlier Eurostat
estimates on Oct. 1.
Excluding energy, food, alcohol and tobacco, inflation grew 1.0% in
September, Eurostat said, confirming earlier figures.
The revision of the headline figure was caused by lower-than-expected
inflation for industrial products, another worrying sign for euro zone
manufacturers, who are facing drops in output and in confidence.
Prices for industrial goods, excluding energy, went up 0.2% on the year in
September, Eurostat said, revising its earlier 0.3% estimate.
Energy prices were confirmed falling by 1.8%. Inflation for service, the
largest segment of the euro zone economy, rose 1.5%, in line with previous
estimates.
The trade data also released on Wednesday confirmed manufacturing’s
difficulties. Exports of goods to the rest of the world fell by 2.2% on the year
in August.
Imports dropped even more, 4.1%, as global trade tensions seemed to
take their toll. Trade among euro zone states also fell 5.6% on the year.
Despite U.S. threats and sanctions against global partners, the latest data
showed widening gaps. The EU trade surplus with the United States grew
to 102.7 billion euros in the period from January to August, from 90.6
billions the year before.
The EU’s trade deficit with China grew to 127.4 billion euros over the same
period, from 116.3 billions a year earlier.
<< Back to news headlines >>
China's Ant Financial in talks for loan of up to $3.5 billion at lower rate Wednesday 16th October, 2019 – Reuters
Ant Financial, an affiliate of China’s largest e-commerce company
Alibaba Group (BABA.N), is in talks for a syndicated loan of up to $3.5
billion at a lower rate to slash debt costs, Bloomberg reported on
Wednesday, citing unnamed sources.
The company is in discussion with lenders for a $2.5 billion financing that
comes with a $1 billion greenshoe option, Bloomberg said.
The price talk for the three-year loan margin is less than 100 basis points
over Libor, Bloomberg reported.
Ant Financial was not immediately available for a comment.
<< Back to news headlines >>
Huawei's third-quarter revenue jumps 27% as smartphone sales surge Wednesday 16th October, 2019 – Reuters
Huawei Technologies Co Ltd’s third-quarter revenue jumped 27%, driven
by a surge in shipments of smartphones launched before a trade
blacklisting by the United States expected to hammer its business.
Huawei, the world’s biggest maker of telecom network equipment and
the No. 2 manufacturer of smartphones, was all but banned by the United
States in May from doing business with American companies, significantly
disrupting its ability to source key parts.
The company has been granted a reprieve until November, meaning it
will lose access to some technology next month. Huawei has so far mainly
sold smartphones that were launched before the ban.
Its newest Mate 30 smartphone - which lacks access to a licensed version
of Google’s (GOOGL.O) Android operating system - started sales last
month.
Huawei in August said the curbs would hurt less than initially feared, but
could still push its smartphone unit’s revenue lower by about $10 billion this
year.
The tech giant did not break down third-quarter figures but said on
Wednesday revenue for the first three quarters of the year grew 24.4% to
610.8 billion yuan.
Revenue in the quarter ended Sept. 30 rose to 165.29 billion yuan ($23.28
billion) according to Reuters calculations based on previous statements
from Huawei.
“Huawei’s overseas shipments bounced back quickly in the third quarter
although they are yet to return to pre-US ban levels,” said Nicole Peng,
vice president for mobility at consultancy Canalys.
“The Q3 result is truly impressive given the tremendous pressure the
company is facing. But it is worth noting that strong shipments were driven
by devices launched pre-US ban, and the long-term outlook is still dim,”
she added.
“STRONG PERFORMANCE”
The company said it has shipped 185 million smartphones so far this year.
Based on the company’s previous statements and estimates from market
research firm Strategy Analytics, that indicates a 29% surge in third-quarter
smartphone shipments.
Still, growth in the third quarter slowed from the 39% increase the
company reported in the first quarter. Huawei did not break out figures for
the second quarter either, but has said revenue rose 23.2% in the first half
of the year.
“Our continued strong performance in Q3 shows our customers’ trust in
Huawei, our technology and services, despite the actions and unfounded
allegations against us by some national governments,” Huawei
spokesman Joe Kelly told Reuters.
The U.S. government alleges Huawei is a national security risk as its
equipment could be used by Beijing to spy. Huawei has repeatedly
denied its products pose a security threat.
The company, which is now trying to reduce its reliance on foreign
technology, said last month that it has started making 5G base stations
without U.S. components.
It is also developing its own mobile operating system as the curbs cut its
access to Google’s Android operating system, though analysts are
skeptical that Huawei’s Harmony system is yet a viable alternative.
Still, promotions and patriotic purchases have driven Huawei’s
smartphone sales in China - surging by a nearly a third compared to a
record high in the June quarter - helping it more than offset a shipments
slump in the global market.
<< Back to news headlines >>
Sterling falters as Brexit approaches its endgame Wednesday 16th October, 2019 – Reuters
Sterling came off five-month highs and stocks traded sideways on
Wednesday as the European Union and Britain sought to avert a disorderly
Brexit before an EU summit on Thursday.
Hopes of a breakthrough lifted markets on Tuesday, but investors turned
more cautious after looking for a deal during the night that never came.
Conflicting reports about the ongoing talks triggered a series of sharp
moves on the pound. Reports that Germany might use emergency
measures to counter any market panic from a hard Brexit, such as
banning bets on falling share prices, also weighed on morale.
“Most of the good news that could have been anticipated has been
priced in, and now there’s caution it seems on whether we get a deal
today or not,” said Kallum Pickering, senior economist at Berenberg.
Sterling was GBP=D3 down 0.4% against the dollar with investors trading
volatility levels not seen since the 2016 June Brexit referendum.
The pound had strengthened by close to 5% over the past week as
investors rushed to reprice the prospect of a last-minute Brexit deal before
the Oct. 31 deadline.
Euro zone government bonds were also volatile on Wednesday as
investors watched the eleventh-hour talks.
German 10-year government bond yields DE10YT=RR were last flat at -
0.42%, after reaching an 11-week high of -0.397% as Bunds extended a
sell-off that began on Tuesday.
British government 10-year bond yields were down 2.7 basis points at
0.67%, unaffected by data showing inflation in September reached 1.7%
year-on-year, below market expectations.
The pan-European STOXX 600 retreated 0.1%, but Britain's domestically
focused midcaps .FTMC, a gauge of Brexit anxiety, fell 0.8%. Ireland's ISEQ
.ISEQ, another vulnerable index, lost 0.6%.
Earlier, shares rose in Asia. MSCI’s broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS gained 0.5%. MSCI’s gauge of stocks across
the globe .MIWD00000PUS was flat.
“Even though we are most optimistic that a deal does happen, we don’t
think the most likely outcome is that it happens by October 31, so you
would be looking at some form of extension and potentially elections,”
said, Andrew Sheets, chief cross asset strategist at Morgan Stanley.
Third-quarter earnings are expected to show an overall decline in
earnings, which could also weigh on morale, Sheets said. Morgan Stanley
had a below-consensus view on how companies would fare this quarter,
he said.
Europe’s companies are struggling with uncertainties ranging from Brexit
and the U.S.-China trade war to Germany’s manufacturing recession.
Companies listed on the STOXX 600 index are now expected to report a
decline in third-quarter earnings of as much as 3.7%, worse than the 3%
expected a week ago, according to I/B/E/S data from Refinitiv.
Bloomberg reported, citing sources, that China will struggle to buy $50
billion of U.S. farm goods annually unless it removes retaliatory tariffs on
American products, which would require reciprocal action by U.S.
President Donald Trump.
The U.S.-China trade war will cut 2019 global growth to its slowest pace
since the 2008-2009 financial crisis, the International Monetary Fund
warned on Tuesday.
Global gross domestic product is now expected grow 3% in 2019, the IMF
said its latest World Economic Outlook projections, down from 3.2% in a
July forecast, largely because of global trade friction.
U.S. stocks, which typically track the ups and downs of the trade war,
were set to open in the red. S&P 500 futures ESc1 and Nasdaq futures
NQc1 were both down 0.3%.
In commodities, Brent crude LCOc1 shed about 0.1 cent to $58.66 a
barrel. U.S. crude CLc1 rose 10 cents to $52.91 after falling the day before
over fears the trade war would keep squeezing the global economy.
In emerging markets, Turkey’s Halkbank (HALKB.IS) saw its shares and
bonds plunge after U.S. prosecutors charged the state-owned lender with
taking part in a multibillion-dollar scheme to evade U.S. sanctions on Iran.
A day earlier, Washington had imposed sanctions on Turkish officials,
raised tariffs and halted trade talks after Turkey invaded northeastern Syria
in a campaign again Kurdish fighters. Before Turkish markets opened,
authorities banned short selling on seven large Turkish bank stocks,
including Halkbank. Selling shares in the banks only to buy them later in
the session was also banned, authorities said.
<< Back to news headlines >>
Futures slip on renewed U.S.-China trade war concerns Wednesday 16th October, 2019 – Reuters
U.S. stock index futures dipped on Wednesday as a new U.S. bill taking a
hard line on China stoked fresh concerns about a prolonged trade war,
but more positive results from the banking sector provided some relief and
signaled a solid start to the third-quarter earnings season.
Bank of America (BAC.N), the second-largest U.S. bank by assets, rose
2.2% in premarket trading after beating third-quarter profit estimates.
This followed upbeat results on Tuesday from major U.S. banks JPMorgan
Chase & Co (JPM.N), Citigroup Inc (C.N) and healthcare giants Johnson &
Johnson (JNJ.N) and UnitedHealth Group Inc (UNH.N).
Tech heavyweights Netflix Inc (NFLX.O) and International Business
Machines (IBM.N) are due to report later on Wednesday.
Analysts have forecast a 3% drop in third-quarter earnings for S&P 500
companies, projecting their worst quarterly performance in nearly three
years, according to Refinitiv data.
The U.S. House of Representatives passed legislation on Tuesday related to
pro-democracy protests in Hong Kong and the extradition of a Chinese
telecom executive. In response, China warned that bilateral relations
would be damaged if the measures became law.
The two countries have been embroiled in a tit-for-tat tariff war that has
taken a toll on financial markets in the past 15 months and dented growth
in the global economy. Last week, U.S. President Donald Trump
announced a partial trade deal, but it did not include concrete details.
At 7:22 a.m. ET, Dow e-minis 1YMcv1 were down 51 points, or 0.19%. S&P
500 e-minis EScv1 were down 5.75 points, or 0.19% and Nasdaq 100 e-minis
NQcv1 were down 16.25 points, or 0.2%.
A Commerce Department report at 8:30 a.m. ET is likely to show U.S. retail
sales rising 0.3% in September, after a 0.4% gain in August.
Among other stocks, Achillion Pharmaceuticals Inc (ACHN.O) surged
86.8% after drugmaker Alexion Pharmaceuticals Inc (ALXN.O) agreed to
buy the biotech firm in a deal initially valued at $930 million.
PNC Financial Services Group Inc (PNC.N) gained 0.3% after the regional
bank beat Wall Street estimates for quarterly profit.
Eli Lilly and Co (LLY.N) fell 1.5% after the drugmaker said its experimental
pancreatic cancer treatment in combination with a cocktail of
chemotherapies did not meet the main goal in a late-stage study.
<< Back to news headlines >>
Plipdeco leads trading Wednesday 16th October, 2019 – Trinidad Express Newspaper
OVERALL stock market activity yesterday resulted from trading in 16
securities of which five advanced, six declined and five traded firm.
Trading activity on the First Tier Market registered a volume of 146,611
shares crossing the floor of the Exchange valued at $1,440,965.37.
Point Lisas Industrial Port Development Corporation Ltd was the volume
leader with 71,700 shares changing hands for a value of $247,365.
Trinidad and Tobago NGL Ltd registered the day's largest gain, increasing
$0.20 to end the day at $25.72.
Conversely, JMMB Group Ltd registered the day's largest decline, falling
$0.05 to close at $2.10.
CLICO Investment Fund was the only active security on the Mutual Fund
Market, posting a volume of 5,870 shares valued at $141,273.20.
The Second Tier Market did not witness any activity. The SME Market did
not witness any activity.
The USD Equity Market did not witness any activity.
<< Back to news headlines >>
New roundabout, 4-lane carriageway for San Fernando Wednesday 16th October, 2019 – Trinidad and Tobago Newsday
ATTORNEY General Faris Al-Rawi said a mega-road network project to
cater for the development of the San Fernando Waterfront and Skinner
Park will begin in November.
He said the project, funded by the government, will see Lady Hailes
Avenue upgraded into a four-lane dual carriageway from Todds Street,
between Skinner Park and the Southern Academy for the Performing Arts
(SAPA) to Queens Street extension at King’s Wharf.
This is all part of the San Fernando Waterfront Redevelopment project. The
scope of work will entail constructing a roundabout at Connection Drive
(the entrance to Roodal Cemetery), improving the Gulf View Link Road
intersection, extending Rushworth Street to connect to Lady Hailes
Avenue and constructing a pedestrian overpass near Circle Drive
(Embacadere).
The plan was rolled out by the Programme for Upgrading Roads Efficiency
Unit (PURE), a project management unit of the Ministry of Works, during
the first of two mandatory public consultations to obtain a Certificate of
Environmental Clearance (CEC).
Construction and design manager II Saran Robinson said there will be
benefits, including improvement to traffic congestion, the aesthetics of
the environment, improved road network connectivity for future
development and upgrades to existing drainage when the network
becomes operational.
In the interim, she cautioned, there will be some negative impacts, such
as the relocation of residents, environmental pollution during construction,
disruption of sea bathing and traffic congestion.
At the first consultation at City Auditorium, San Fernando on Tuesday last
week, representatives from two churches and the Girl Guides Association
questioned the effect the project would have on their respective
properties.
Moderator of the Presbyterian Church the Rev Joy Abdul-Mohan asked
how the waterfront project, which is catering for almost 800 houses at two
different sites, as well as commercial interests, could affect the
Presbyterian Synod, St Andrew's Theological College and Naparima
College, which sits just above the planned development.
Girl Guides manager, south, Marilyn Barker-Duncan and Jacqueline Dolly,
chief commissioner TT, also had similar concerns about their headquarters
at Embacadere, as did a representative from the Revival Times Assembly
Church on King’s Wharf.
Al-Rawi, MP for San Fernando West, where the development is planned,
said their buildings will not be touched.
“The Girl Guides, Court Shamrock, the Synod, St Andrew's, Naparima
College – none of these buildings will be impacted negatively. They are
very much impacted positively, because their land value begins to
skyrocket.”
He said the plan was well thought out to minimise any glitches such as
land acquisition.
He said to cater for the waterfront development – which includes the
fishing port, Plaza San Carlos, the removal of the PTSC bus yard to make
way for housing position, developing the hospital car park, the Anglican
Church development and a new magistrates' court at Irving Park – the
road network is essential to take care of the volume of users about to
come in.
"This is big news for San Fernando," he said.
<< Back to news headlines >>
S&P confirms First Citizens rating Wednesday 16th October, 2019 – Trinidad and Tobago Newsday
STANDARDS & Poor's (S&P) has reaffirmed the First Citizens Group's
BBB/Stable/A-2 rating. The bank, in a press release on Monday, said the
rating was a clear reflection of the group’s sound position in governance,
corporate banking and solid operation revenue, coupled with excellent
capitalisation ratios, as highlighted in the report.
The S&P report said: “The ratings on FCBL reflect its steady market position
as the second largest bank in TT’s banking system in terms of loans and
deposits and its well-established footprint in the corporate banking
business. However, the bank has been focusing on expanding its retail
presence in the past two years, which is accelerating credit growth.”
On prospects for the bank, it said: “The stable outlook on First Citizens Bank
Ltd (FCBL) for the next two years reflects our expectation that it will
maintain its current market position and satisfactory operating
performance, reflected in steady profitability metrics and manageable
asset quality metrics.”
Group CEO Karen Darbasie said the affirmation by S&P was a testament
to the sound governance and risk-management policies, consistent hard
work and commitment exhibited by group’s key stakeholders including
the board, management and staff."
<< Back to news headlines >>
Dominica to benefit from new climate resilience project Tuesday 15th October, 2019 – Dominica News Online
Dominica will be one beneficiary of a new project, focused on improving
local resilience to hurricanes and climate extremes in the Eastern
Caribbean.
The 3-year project, being executed by the Caribbean Natural Resources
Institute (CANARI), was announced on Sunday, in recognition of
International Day for Disaster Risk Reduction – 2019.
Titled, “Civil society-led solutions for community-based and ecosystem-
based disaster risk reduction and resilience in the Eastern Caribbean”, it
will be concentrated in Dominica, Antigua and Barbuda, along with
Grenada.
The countries were chosen because of the severe impact of hurricanes in
recent times – Grenada, from Hurricane Ivan in 2004 and Antigua and
Barbuda and Dominica, from Hurricanes Irma and Maria in 2017.
CANARI has explained that it will work closely with six partner civil society
organizations (CSOs) and community stakeholders on the ground in the
countries, to strengthen their organizational and technical capacity to
deliver integrated Eco-Disaster Risk Reduction (Eco-DRR) and Community-
Based Disaster Risk Reduction (CBDRR) solutions.
A regional dialogue will be held to gain common understanding on – and
best practices for – building resilience, what this means for Caribbean
Small Island Developing States (SIDS) and the role of CSOs.
Partner-CSOs will then be supported in their efforts with small grants and
mentoring sessions.
Direct beneficiaries of the project will include around 4,000 persons living
in six high-risk communities – half of them women – as well as National
Disaster Offices and CSOs working in disaster risk management in the
target countries.
The project is being funded by the Inter-American Foundation (IAF) and
will be implemented from 2019 to 2022.
<< Back to news headlines >>
Budget day is 20 November 2019 Tuesday 15th October, 2019 – Now Grenada
2020 budget will be presented on 20 November 2019
National Sustainable Development Plan will become guide for 2020 to
2035 budget presentations
Finance Minister Dr Keith Mitchell will be presenting the 2020 budget on 20
November 2019, almost 6 weeks after the ceremonial opening of the Third
Session of the Tenth Parliament.
During the opening Head of State, Governor-General Dame Cécile La
Grenade in her Traditional Throne speech, disclosed that the National
Sustainable Development Plan will become the guide for all budget
presentations from 2020 to 2035.
The plan will officially be presented to parliament the same day that the
budget will be presented.
“The policy agenda guiding the general path followed by my
government for the fiscal year 2020 will be aligned with the goals of the
National Sustainable Development Plan, (NSDP). In fact, the national plan
will provide the strategic direction for all national budgets for the ensuing
years through 2035,” the Governor-General told the joint sitting of the
Houses of Parliament.
“The strategic priorities of the 2020 budget and the work programmes of
all ministries, departments and agencies are framed within the context of
my government’s medium-term agenda, which guides public sector
implementation of the strategic actions that are aligned with goals of the
national plan,” she said.
The NSDP will implement a systematic and coordinated framework to
guide Grenada’s sustainable development agenda from 2020 to 2035.
The plan focuses on promoting balanced, harmonious, and inclusive
development in Grenada.
The cabinet on Tuesday met in the special meeting to approve votes for
the budget. The Finance Committee which includes all members of the
Lower House or House of Representatives is also expected to review and
approved allocated in the budget before it is officially presented to the
house and debated.
<< Back to news headlines >>
TSTT raises over - $2.7 b on US roadshow Wednesday 16th October, 2019 – Trinidad and Tobago Guardian
A US$400 million 10-year bond offered by the Telecommunications
Services of Trinidad and Tobago (TSTT) has been “significantly over-
subscribed” the T&T Guardian has learned.
This according to a Oppenheimer & Co Inc to TSTT Chief Executive Officer
(CEO) Dr Ronald Walcott dated yesterday.
The bond is expected to consolidate all TSTT’s liabilities into a single facility.
“I want to congratulate you and the TSTT team for successfully completing
this significant and complex transaction,” Tonelli’s letter stated.
“We kicked off the execution process with our official engagement on
April 16, 2019 and initial meetings. There were a number of significant
undertakings including finalising the Offer Memorandum, the Rating
Agency presentations, the preparation of 2018/2019 as well as the
2019/2020 Q1 audit,” it stated.
“Once we officially announced the offering we began an intense and
extensive roadshow over a ten-day period, which involved meetings,
presentations, conference calls and Q&A with many of the largest
institutional investors around the world,” the letter stated.
Tonelli said TSTT had to market the company, and this was not easy.
“You and your team did a great job of telling the TSTT story of restructuring
and transformation. This was not an easy story to tell given some of the
fundamentals and the company’s financial performance over the last
three years, while it was executing its strategic plan,” the letter added.
“Additionally the challenges associated with the government’s
outstanding debt to TSTT, the uncertainty of the 49 per cent minority
shareholding of the company and the current leverage were offset by
your Q1 performance, your team’s clarity of your strategic direction and
your demonstrated knowledge of the business,” it stated.
Tonelli said the bond would be at a rate of 8.875 per cent.
“As a result, we are pleased to advise that the book was significantly over-
subscribed. Additionally, we are pleased to have been able to price the
bond at a yield of 8.875 per cent which is well within our initial estimates,
given the ratings, and below the rate we projected in the financial model.
Looking at the comparisons in the market, this rate is excellent and the
team should feel justifiably proud of this accomplishment,” it stated.
<< Back to news headlines >>
Unmitigated oil spill in Payara field could significantly impact Region One
– EIA Wednesday 16th October, 2019 – Kaieteur News
Should an oil spill occur in the Payara field of the Stabroek Block, it is likely
to have a significant impact on Region One. This is according to the
Environmental Impact Assessment (EIA) that was done on the project by
Environmental Resources Management (ERM), a consultancy firm that is
based in the United Kingdom.
The EIA, which was perused by Kaieteur News, states that if spilled oil
reaches the coast in Region One. The risks of oiling nesting beaches could
pose inter-generational risks to marine turtles. It also states that other
physical and biological resources such as air quality, seabirds, marine fish,
and marine benthos could also be impacted.
Elaborating further, the ERM stated in the report that an unmitigated oil
spill could potentially impact Guyanese fisher folk. It noted however, that
the magnitude of this impact would depend on the volume and duration
of the release as well as the time of year at which the release were to
occur (e.g., whether a spill would coincide with the time of year when
these species are more abundant in the Project Development Area).
In light of the sensitivity of many of the resources that could be potentially
impacted by a spill such as Shell Beach Protected Area, marine
mammals, critically endangered marine turtles, coastal Guyanese and
Amerindian communities reliant on ecosystem services for sustenance
and their livelihood, the EIA stressed that preparation for spill response is
warranted.
In this regard, it was noted that ExxonMobil’s subsidiary, Esso Exploration
and Production Guyana Limited (EEPGL) will implement from time to time,
regular oil spill response drills, simulations, and exercises. Kaieteur News
also understands that EEPGL will involve appropriate Guyanese authorities
and stakeholders in these activities and document the availability of
appropriate response equipment on board the FPSO as well as offsite
equipment required to be mobilized for a timely response.
PAYARA PROJECT OVERVIEW
According to documents in the possession of the Environmental
Protection Agency, EEPGL’s Payara development will be located in the
eastern area of the Stabroek Block which is approximately 190 km (118
miles) from Georgetown.
The operator notes that oil production from Payara is expected to last at
least 20 years with startup of the facilities expected to occur
approximately in mid-2023.
EEPGL noted that it will drill approximately 35 to 45 wells offshore to
support extraction of the oil from below the sea floor. It said that each well
will be drilled using a floating drill ship. Also, each well will be directionally
drilled to specific reservoir targets generally 4,000 to 5,500 meters (m)
below the sea level.
Further to this, EEPGL said it will install some of the oil production facilities
on the sea floor at approximately 1,500-1,980 m (4,900-6,500 ft.) water
depth. It said that these subsea facilities include various types of pipes
and hardware.
Kaieteur News understands that the subsea facilities allow the oil from the
wells to be gathered and moved to the surface of the ocean for further
processing. EEPGL will then install other oil production facilities on a vessel
which floats on the surface of the ocean. The vessel is called a Floating
Production, Storage, and Offloading (FPSO). It will be moored on location
in approximately 1,800-1,980 m (5,900-6,500 ft.) of water depth and will
remain on location throughout the life of the facility. EEPGL said that oil
production facilities on the FPSO will further process the oil extracted from
below the sea floor.
The operator also stated that the FPSO will have the capacity to produce
up to approximately 180,000 to 220,000 barrels of oil per day. During the
early stage of production operations, the FPSO is anticipated to produce
up to an average of approximately 5,700,000 to 6,600,000 barrels of crude
oil per month. These estimates are preliminary and are subject to change.
Further to this, it was noted that the Project is expected to employ up to
600 persons during development well drilling, approximately 600 persons
at the peak of the installation stage, and up to about 140 persons during
production operations.
<< Back to news headlines >>
Indigenous leaders urged to craft plan to benefit from oil and gas
resources Wednesday 16th October, 2019 – Kaieteur News
Production of oil is expected to commence in the first quarter of 2020, and
the country is projected to receive more than $62Billion (US$300M) in the
first year. With this in mind, the Director of the Department of Energy (DE),
Dr. Mark Bynoe has called on Indigenous leaders to craft a strategic plan
to ensure their communities benefit equally from those resources.
Dr. Bynoe was at the time addressing the over 200 Toshaos and other
Indigenous leaders in Georgetown for the 13th National Toshaos Council
(NTC) conference at the Arthur Chung Conference Centre (ACCC).
He said, “It must not just be a band-aid solution to address an immediate
need, it should be focused towards where is it you want to go as a
community, as a village and how is it you are going to get there… the
biggest question that people ask is ‘when the monies begin to flow, how
much will come to my region?’ The first thing I say is to have a plan… that
in time to come you can have a defined pathway of how you will be able
to improve the wellbeing of your people,” Dr. Bynoe advised the leaders.
The Director also explained that Guyana will not automatically be
transformed with first oil since the $62Billion only represents about 10% of
Guyana’s current Gross Domestic Product (GDP).
“It is important that we understand that as we move forward within this
sector… that we need to prioritise. Government also needs to prioritise as
there are multiple demands on the limited resources, they have at their
disposal inclusive of improvement in health care, education, enhanced
infrastructure, enhanced water quality, while also seeking to ensure that
we have more sustainable livelihood opportunities,” the director stated.
While providing an overview of the new and emerging sector, Dr. Bynoe
explained that in terms of direct benefits, Guyana is entitled to two
percent royalty and 12.2 percent of profit oil in the initial stages. As it
relates to direct employment opportunities, to date there are over 1,300
Guyanese who are already employed directly in the sector. Guyana has
also benefitted from over $150M already injected into the sector.
He further outlined that going forward, indirect benefits will include
associated gas which can help in electricity stability and the reduction of
the cost of energy; and even more training opportunities. Dr. Bynoe
added that while the administration is keen on ensuring all Guyanese are
getting their ‘fair share’, just as important is the fact that their capacity is
built through training to ensure they are working alongside those external
experts to ensure those skills are transferred.
The Toshaos called for more education and awareness programmes on oil
and gas within the hinterland villages. Dr. Bynoe said that the department
has recognised the need to conduct more awareness sessions in these
areas and will be moving in that direction.
Guyana first discovered oil in May 2015. To date, ExxonMobil has made 14
discoveries that approximate around 6 billion recoverable barrels of oil;
while Tullow has made 2 discoveries.
<< Back to news headlines >>
Govt Finances Face 3-Year Dorian Blow Tuesday 15th October, 2019 – Tribune 242
Hurricane Dorian will likely throw the government's finances off-track for
the next three years, the deputy prime minister has revealed, although its
fiscal "fundamentals" have not altered.
K Peter Turnquest told Tribune Business that a "three-year run-out period"
was "not unreasonable" given the extent of the devastation inflicted by
the category five storm on infrastructure and other public assets, as well as
multiple communities in Abaco and east Grand Bahama.
This indicates that Dorian has blown the government's fiscal consolidation
plan off-course until 2021-2022 at least, although the scale of the damage
is likely to progressively decrease from the projected $436m increase in
the 2019-2020 deficit during future years.
Mr Turnquest, meanwhile, said he was "personally disappointed" that
Dorian had prevented the Government's finances from "turning the
corner" and achieving a surplus that would enable it to start paying down
the $8bn-plus national debt.
Arguing that the Minnis administration was "on track" to achieve this until
the storm smashed into The Bahamas, he said the "fundamentals" of the
Government's fiscal consolidation plan had not changed and pledged
that it would not be distracted by Dorian from its ultimate long-term goals.
Warning against unchecked public spending post-Dorian, particularly that
which failed to produce results, Mr Turnquest said that while the
Government may not achieve its 10 percent cut in discretionary
expenditure it was seeking to reinforce the "belt tightening" message
across all ministries and agencies.
Speaking after he revealed that Dorian is forecast to produce a more-
than-quadrupling in this year's forecast fiscal deficit to $573.4m, Mr
Turnquest suggested the storm's aftermath will force the Government to
deviate from its fiscal projections for the remainder of the current
administration's term.
"Without pre-empting the Fiscal Responsibility legislation or Act, and
strategy report we plan to do in November, I think a three-year run-out
period for this upturn in debt and spending is not unreasonable," he told
Tribune Business.
"There are those who will say it's too aggressive, and we maybe ought to
go to five years and longer, but the plan we've put in to-date - which was
for three years, and people said was too aggressive - has been working.
The economy has been growing, the unemployment numbers dropping,
so all those statistics prove we were on the right path."
Mr Turnquest's mention of November refers to the fact that the Fiscal
Responsibility Act requires the Government to present an adjustment plan
if it is likely to miss its financial targets. This must detail the measures it will
take to get its consolidation plan back on track, and estimates of how
long it will take to do so.
This plan is to be presented to both parliament and the Fiscal
Responsibility Council (FRC) in November as part of the upcoming 2019
Fiscal Strategy Report, while a post-Dorian budget will outline changes to
revenue and spending along with requests for additional borrowing.
Dorian's effects will be with The Bahamas for many years to come,
although the bulk of the financial impact will be felt in the early years as
restoration efforts start to ramp up.
From a 2019-2020 fiscal perspective, the storm is forecast to wipe out
$215m, or eight percent, of full-year revenues while extra spending to
rebuild utility infrastructure, public health clinics, temporary housing and to
deliver government services in the impacted areas has been pegged at
just over $222m.
"The personal disappointment is that we weren't able to continue with the
reform agenda," Mr Turnquest told Tribune Business, pointing to the
progress made by the Government in slashing the 2017-2018 deficit to
$222.4m.
Arguing that the Minnis administration had been "on track" to eliminate
the persistent nine-figure annual deficits that have plagued The Bahamas
for decades, he added: "That's the only disappointment I have from a
personal perspective; that we didn't actually get to turn the corner and
get on with the new norm and paradigm of surpluses, so that we can pay
down these debts in an aggressive way."
Promising that not even Dorian would deflect the Government from this
goal, Mr Turnquest continued: "The fundamentals of what we're trying to
do have not changed. We have to continue to be aggressive with the
consolidation plan, using aggressive revenue collection and compliance,
and being aggressive on cutting costs and using technology to be as
efficient as possible, and using good procurement practices to get better
value for money.
"If we keep these things in mind, and don't get distracted by the impact of
this storm with spending, we should be OK and get ourselves back on a
reasonable path in a reasonable time."
Mr Turnquest said the Government's bid to cut discretionary spending by
10 percent, in an effort to narrow the deficit as much as possible and free-
up monies for Dorian-related spending, was targeted at items that were
non-policy priorities.
"We've put before Parliament a very aggressive budget," he explained.
"Amongst the items in the Budget are some high priority policy items and
some other things that can be repurposed. We're asking all agencies and
ministries to look at those items - not the critical policy imperatives - and
see how they can possibly delay or amend those priorities so they're more
affordable in the short-term.
"We may or may not be able to achieve 10 percent. We are sending the
message these are not normal times. We are all going to have to tighten
our belts to fit into the fiscal window and land on the target."
The discretionary spending cuts, though, will not touch at least 80-90
percent of the Budget which has already been allocated to fixed costs,
such as debt servicing and principal repayment, civil service salary costs
and rents for government buildings.
Mr Turnquest, though, warned against runaway spending in times of
disaster. "To the naysayers who have taken the traditional approach to
public finances; that we must spend in times of difficulty, what we've
been able to demonstrate up to now is that while that is true to some
extent, we must not saddle ourselves with debt, particularly debt that
does not show results at the end of the day," he added.
"It must be managed and controlled so that we do not fool ourselves into
thinking we can drive consumption through spending."
<< Back to news headlines >>
Royalfidelity: $1bn Goal As 'Caribbean's Premier' Tuesday 15th October, 2019 – Tribune 242
RoyalFidelity is now focused on becoming "the premier Caribbean
investment bank and wealth manager" after its management-led buyout
closed last Wednesday, its president has revealed.
Michael Anderson, pictured, confirming that all necessary regulatory
approvals in The Bahamas and Barbados have been received, told
Tribune Business that the merchant bank is aiming to grow assets under
management by 25 percent over the next year to hit the $1bn mark by
end-2020.
Expressing "relief" that RoyalFidelity's purchase from Royal Bank of Canada
(RBC) and its parent group had finally closed, some eight months after it
was first announced, Mr Anderson said the way was clear to "focus on
building our business again".
He revealed that top RoyalFidelity executives, including those from
Barbados and the Cayman Islands, will meet in early November to
develop a strategy for regional expansion that includes penetration of the
eastern Caribbean.
Mr Anderson added that RoyalFidelity's Nassau office will remain the
headquarters for its back office functions and information technology (IT)
systems, acting as the springboard for its growth plans, and its workforce is
expected to hit 50 before year-end via the hiring of four more staff.
He added that RoyalFidelity is aiming for its Caribbean operations to be "if
not larger, at least as big as The Bahamas" within the next five years. This
nation currently accounts for 80 percent of its activities, and Mr Anderson
said he expected local business to maintain its present ten to 15 percent
annual growth rate for "the next three years".
Regional expansion, though, stands to get a major boost from the
imminent acquisition of its former parent group's Cayman Islands pension
administration portfolio, which Mr Anderson said was anticipated to close
in early November pending the necessary regulatory approvals.
He added that this would add $150m in assets under management to
RoyalFidelity's total, taking it close to the $1bn mark it is targeting for end-
2020.
"We closed the transaction Wednesday," Mr Anderson told Tribune
Business, adding that his reaction was "one of relief" given that the buyout
of previous 50/50 owners, RBC and BISX-listed Fidelity Bank (Bahamas),
had first been announced in early February.
"It's just taken a long time," the RoyalFidelity chief added. "It's one of
opportunity. Like I said before we've got a huge opportunity to move into
new markets such as Cayman. I'm encouraged that we've got most of this
out of the way and can focus on building the business.
"The discussions around transactions get complex, and a lot of people are
involved, so it distracts from the day-to-day business. We can now focus
on building our business again."
Mr Anderson said RoyalFidelity will place great emphasis on its technology
platform to drive efficiencies and business development as it seeks to
penetrate new regional markets and establish a solid business book in
each one it targets.
"We have a strategic meeting at the beginning of November, bringing all
of our people together, including Cayman, to talk about how to improve
our technology to create efficiencies and develop business across the
region," he explained.
"We're looking to grow our pensions and asset management business
across the region, not just in Cayman and The Bahamas. As we broaden
our business, we have to have the technology available to us to drive and
manage that.
"We're centralising administration in The Bahamas to manage that for all
the region, so all the back office and IT systems will be run through the
Nassau office," Mr Anderson continued. "We've been adding staff since
we moved up on East Hill Street in February. We currently have 46 staff,
and expect to be at 50 before the year ends."
RoyalFidelity has hired six staff since the buyout was announced, and Mr
Anderson said the merchant bank was still finalising employment terms
and other issues relating to employees who were expected to come
across to it from the former Fidelity parent group.
While its Cayman pension acquisition is expected to close imminently, the
RoyalFidelity chief said the initial pace of its Caribbean expansion was
difficult to predict. "It's with the regulators, and all information has been
supplied," Mr Anderson said of the pension deal. "Some time between the
end of October and early November we will get that one closed.
"It's difficult to tell," he added of how quickly the Caribbean roll-out will
likely occur. "We've got to enter new markets, start marketing and build a
presence. It takes a little while to build results. Next year will be more
formative in setting up, and going forward we will expect to see more
significant growth."
Mr Anderson said the pace of Caribbean expansion would have to be
rapid if RoyalFidelity was to lessen its reliance on The Bahamas, given that
it is projected to maintain present 10-15 percent growth rates for the next
three years.
"Today The Bahamas is 80 percent, a big part of our business," he told
Tribune Business, "but in the next five years we'd expect the other
businesses to be, if not larger, at least as big as The Bahamas. Although
The Bahamas will have the majority of our business for some time to come,
as those markets grow they will gain in proportion to the total.
"We continue to grow our business across all business lines in The Bahamas,
each one of our areas growing by a typical 10-15 percent for the last five
years. We expect to grow in that same area for the next three years to
come. With a high degree of liquidity in the market, and people looking
for higher return investment opportunities, we see more people coming in
to funds and asset management."
Unveiling RoyalFidelity's goal to become "the premier investment bank
and wealth manager in the region", Mr Anderson told Tribune Business:
"We want to be a Caribbean regional financial services entity; asset
manager, wealth manager and pensions provider. We believe there is a
massive opportunity in pensions across the region as more and more
people start to recognise the need for pensions."
With the merchant bank's assets under management currently standing at
$800m, he added: "We expect to be close to $1bn by the end of next
year. The Cayman acquisition will add $150m to assets under
management, and we believe by the end of next year we will get to the
$1bn mark."
<< Back to news headlines >>
Despite LatAm slump, Dominican economy to grow 5%: IMF Wednesday 16th October, 2019 – Dominican Today
The International Monetary Fund (IMF) on Tue. predicted that Latin
America and the Caribbean will experience economic growth of just 0.2%
during 2019, a significant reduction from the 1.4 % expansion projected in
April.
The Fund attributed the trend to a lower growth than expected in the two
largest economies in the region, Brazil and Mexico, the Argentine crisis
and the severe Venezuelan depression, whose domestic product will
shrink this year by a third.
The IMF projected that Latin America will rebound and grow 1.8% next
year. During 2018 the expansion had been 1%, according to the AP.
The countries with the best performance this year will be Dominica (9.4%),
Dominican Republic (5%), Guyana (4.4%) and Panama (4.3%).
<< Back to news headlines >>