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▪ NCB Capital Markets (Barbados) Limited’s initial rating assigned at CariBBB-
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▪ 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+
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▪ The National Gas Company of Trinidad and Tobago’s rating reaffirmed at CariAA+
▪ Home Mortgage Bank’s rating reaffirmed at CariA
▪ NCB Cayman Limited’s rating reaffirmed at CariA
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REGIONAL
Trinidad and Tobago
PM in emergency talks with Caricom
CARICOM leaders were catapulted yesterday into a crisis conference as
the turmoil in Venezuela took centre stage.
SWRHA: All A&E depts overcrowded
THE South West Regional Health Authority (SWRHA) has admitted
overcrowding is the main challenge at its five emergency departments.
Project Reason abandoned
PROJECT Reason, an anti-crime initiative which was determined to have
significantly impacted upon crime levels in Laventille and East Port of
Spain was abandoned due to funding and management issues.
La Brea gets some Cassia C work
THE Trinidad Offshore Fabrication Company (TOFCO) fabrication yard in
La Brea has been awarded some of the work to manufacture bpTT's
Cassia C compression platform.
Scotia falls by $0.31
OVERALL market activity resulted from trading in 15 securities of which
three advanced, seven declined and five traded firm.
Barbados
Axe to fall again at Nation
Staff of the Nation Publishing Company are bracing for more job cuts.
RER review needed
One local economist is calling for an immediate review of the Renewable
Energy Rider (RER) programme, which allows producers of electricity from
renewable energy source to sell power to the Barbados Light & Power
Company (BL&P).
Jamaica
H10, Princess to Invest US$750m In Hotel Sector
Spanish hotel chain Princess Resorts has committed to investing US$500
million in the construction of 2,000 rooms, while H10 Hotels has
recommitted to spending US$250 million to add 1,000 rooms on the island.
BPO Workers to Get US$15m Training Boost
The Government has signed a US$15-million loan with the Inter-American
Development Bank in a drive to further expand the country’s business
process outsourcing sector.
iCreate seeks $70 million via IPO
CREATIVE training institute, iCreate Limited, is seeking to raise capital of
roughly $70 million through the sale of 74 million shares in an initial public
offering (IPO) on the Junior Market.
Capital markets should be allowed to enhance growth and development
COUNTRIES with well-developed capital markets experience higher
economic growth than countries without, declared the CEO of NCB
Capital Markets, Steven Gooden, at the Jamaica Stock Exchange (JSE)
14th Regional Conference on Investments & Capital Markets held at the
Jamaica Pegasus hotel in Kingston
JSE launches Jamaica Social Stock Exchange
The Jamaica Stock Exchange (JSE), the world's number one performing
stock exchange, launched the Jamaica Social Stock Exchange (JSSE) as
a move to address social inequity at the Jamaica Pegasus hotel in New
Kingston on Tuesday night.
Guyana
TCL Guyana/CEMEX commissions concrete plant
AS Guyana’s construction industry continues to expand, one of the
country’s major suppliers of cement has upgraded its services to providing
concrete, utilising innovative technology.
Concerned Guyana government urges dialogue as Venezuela’s woes
worsen
Amidst deadly violent protests, political standoffs and de-recognition of
the current Nicolas Maduro-led Venezuela by the US, the Government of
Guyana is expressing concerns.
The Bahamas
Bahamas ‘Shooting in Dark’ Over WTO
The DNA’s deputy leader yesterday expressed fears that The Bahamas is
“walking in the dark” towards WTO membership without the government
“making the case” for joining.
St. Lucia
Construction begins in 2020 on $115-million Millennium Highway and West
Coast Roads Upgrading Project
Work is expected to begin in the second quarter of 2020 on the $115-
million Millennium Highway and West Coast Roads Upgrading Project and
government officials said it will bring economic activities and reduce
accidents when completed.
Venezuela
Venezuela Crisis: Familiar Geopolitical Sides Take Shape
Russia, China, Iran, Syria, and Cuba have come down on one side. The
United States, Canada, and countries in Western Europe are on the other.
British Virgin Islands
Trellis Bay businesses could see increased economic activity with airport
expansion
Chief Planner at the Town & Country Planning Department Greg Adams
has said the neighbouring business community in Trellis Bay will not be
required to relocate to facilitate the runway extension project at the TB
Lettsome International Airport. In contrast, those businesses could
experience spin-off benefits from the multimillion-dollar project, he said.
Dominica
Bureau of Standards developing strategic plan to improve standards
Minister for Trade, Energy and Employment Hon. Ian Douglas has said the
government is implementing a series of reforms for the Dominica Bureau
of Standards, after Tropical Storm Erika and Hurricane Maria to enhance
quality, efficiency and transparency in services delivered by public sector
institutions.
Other Regional
Full CARICOM statement on Venezuela’s political crisis
CARICOM has offered to “facilitate dialogue” among conflicting political
factions in Venezuela, while reiterating the region as a “Zone of Peace”
and emphasising its stance of non-interference and non-involvement in
the affairs of sovereign nations.
CDF signs US$1 million contribution agreement with India
The government of India and the CARICOM Development Fund (CDF)
signed a Contribution Agreement on Saturday, January 19, 2019, in
Paramaribo, Suriname, which provides for a grant allocation of US$1
million to the CDF’s capital fund.
INTERNATIONAL
United States
U.S. seeks to cut off money for Venezuela's Maduro, aid opposition
The United States is seeking to ensure that Venezuelan oil revenue goes to
opposition leader and self-declared interim president Juan Guaido, and
to cut off money from increasingly isolated President Nicolas Maduro, a
top U.S. official said on Thursday.
United Kingdom
UK mortgage lending slows in December
British banks approved fewer mortgages last month than in November
and the value of lending for home purchases rose by the smallest amount
since 2016, an industry survey showed on Friday.
Europe
German government slashes 2019 economic growth forecast to 1 percent
The German government has cut its economic growth forecast for 2019 to
1.0 percent from 1.8 percent, parliamentary and government sources said
on Friday.
Europe continued
As dismal data flows, ECB policymakers promise caution
European Central Bank policymakers promised on Friday to tread
carefully in removing stimulus any further, just as two fresh surveys pointed
to an even bigger-than-projected slowdown in the euro zone’s growth.
Japan
Japan's Asahi looks beyond Brexit Britain with Fuller's beer buy
Japanese brewer Asahi Group is buying the British beer business of Fuller,
Smith & Turner, seizing the opportunity to further its overseas reach as
other companies wrestle with growing uncertainty over Brexit.
Nikkei climbs to 5-week high, aided by chip-related firms, Apple suppliers
Japan’s Nikkei reached a five-week high on Friday as chip-related firms
tracked sharp rises by U.S. counterparts, while some investors awaited
major events next week for direction.
India
Indian ministers trumpet jobs growth after study showed 11 million jobs lost
Indian government ministers facing an election in coming months
launched a social media campaign on Thursday trumpeting successes in
creating jobs just weeks after a leading think tank reported 11 million jobs
were lost in the country last year.
U.S. voices concern as India's e-commerce restrictions hit Amazon,
Walmart
The United States government is concerned about India’s revised e-
commerce regulations and has told officials in New Delhi the policy will
hinder the Indian investment plans of Amazon.com and Walmart Inc,
three sources familiar with the talks told Reuters.
Smartphone makers seek export incentives to grow India production
Smartphone makers in India are calling for export credits on devices and
tariff cuts on machinery imports as part of measures they say will make
Asia’s third-biggest economy a global smartphone manufacturing hub.
Global
Global shipping rates slump in latest sign of economic slowdown
Freight rates for dry-bulk and container ships, carriers of most of the
world’s raw materials and finished goods, have plunged over the last six
months in the latest sign the global economy is slowing significantly.
Global stocks gain on earnings, euro rebounds after dovish ECB
Global stocks rose on Friday, as strong earnings helped to underpin
investor sentiment in the face of growing signs that the global economy is
slowing and a still unresolved trade dispute between the United States
and China.
Oil edges down as U.S. supplies, economic worries eclipse Venezuela
turmoil
Oil prices fell slightly on Friday as concerns about U.S.-China trade talks
and fresh data on surging U.S. fuel stocks sent a chill through markets.
TCL Guyana/CEMEX commissions concrete plant Friday 25th January 2019 – Guyana Chronicle
AS Guyana’s construction industry continues to expand, one of the
country’s major suppliers of cement has upgraded its services to providing
concrete, utilising innovative technology.
On Thursday afternoon, Mexico’s global firm CEMEX and its subsidiary,
Trinidad Cement Limited (TCL) Guyana Incorporated commissioned its
new concrete plant, which the company noted is a “major investment” in
response to the building needs of Guyana – described by officials of the
entity as one of its key markets within the region.
Roder Ramdwar, Business Manager of TCL Guyana Inc., told a gathering,
which included Minister of Finance, Winston Jordan and Mexican
Ambassador to Guyana, Ivan Medel at the brief ceremony at the
company’s base on Water Street, that the company is here to stay and
will offer the products on which it has built its reputation.
“As a company comprising Guyanese nationals and given our strong
commitment of enhancing contribution towards the growth of Guyana,
we felt strongly that the time is now for us to expand our offerings and
birth a concrete division,” he said.
Ramdwar said the plant is one which took significant investments, and
which provides a wide range of cutting-edge solutions. He said the plant is
ideally equipped with onsite laboratory facilities that are further backed
by state-of- the-art international research and development in
Switzerland. He said the plant will be manned by a vibrant, “research
driven” and well trained all–Guyanese team.
Ramdwar said the company is confident that with its new robust offerings
of cement and now concrete, the firm is “well –outfitted to embrace the
ongoing positive transformation of this gem that is Guyana.”
Minister of Finance, Winston Jordan commended the initiative. He said the
move bodes well for Guyana and he noted that government welcomes
all investments made here. He noted that cement remains an important
aspect of the infrastructure and he noted that cement is likely to play an
important role in Guyana’s evolving oil and gas industry. He said Guyana
remains open to business and he noted that the possibility of
manufacturing cement here should not be ruled out. Shyam Nokta,
President of the Guyana Manufacturing and Services Association
(GM&SA), said the effort by Cemex/TCL Guyana Inc. to expand its
operations here is one that demonstrates “confidence in Guyana and
what the future holds.”
He said the opportunities, which can emerge from the initiative, include
expansion of the country’s infrastructure. He said Guyana has embraced
a “green pathway” and that also realises looking at alternative type of
materials. He reminded that concrete is the foundation of what many
things are built on and will remain so in the future. He said it provides an
opportunity to provide international best practices in areas such as health,
safety and the environment, good governance and innovation and
technology transfer.
Nokta also urged the company to explore the idea of manufacturing
cement here in Guyana. Ambassador Ivan Medel deemed the move a
transformative one. He said it is the starting point of the transitioning
process and he noted that CEMEX, the parent company of TCL, is
confirming a long-term “bet” on the future of Guyana. He said Guyana
and Mexico have been enjoying economic relations in many areas,
including in the area of rice export. He described the move by
CEMEX/TCL as a good business case in Guyana’s development.
<< Back to news headlines >>
Concerned Guyana government urges dialogue as Venezuela’s woes
worsen Friday 25th January 2019 – Kaieteur News
Amidst deadly violent protests, political standoffs and de-recognition of
the current Nicolas Maduro-led Venezuela by the US, the Government of
Guyana is expressing concerns.
The situation in Venezuela has been making neighbouring countries
nervous, with thousands of citizens from there fleeing food and other
shortages of basic items.
According to a statement of the Government of Guyana yesterday, it is
gravely concerned at the deepening of the political crisis in the Bolivarian
Republic of Venezuela and supports calls made at both the regional and
international levels for immediate dialogue involving all political and
social actors, with a view to the preservation of the democratic process
and a return to normalcy.
“Guyana calls on all parties to desist from actions that might lead to
further violence and loss of lives. The Government of Guyana remains
firmly supportive of efforts to resolve the crisis through peaceful means
and with full respect for human rights and the rule of law.”
Venezuela is facing severe economic and humanitarian crisis. Its President
Nicolás Maduro is facing increasing pressure to step down, with the US this
week recognising opposition politician Juan Guaidó as Venezuela’s
interim president.
However, Venezuela has asked US embassy personnel to leave.
Four persons were reported dead in clashes in that neighbouring Spanish-
speaking country.
On Wednesday, Maduro gave the United States 72 hours to withdraw its
diplomats from Venezuela — an order that was swiftly rejected by
Secretary of State Mike Pompeo.
“United States does not recognize the Maduro regime as the government
of Venezuela,” he said, according to a Washington Port report.
The United States has an embassy in Caracas, though it has been without
a full-time ambassador since July 2010. The embassy has said that it would
remain open for U.S. citizens needing “emergency services”; there was
little sign of anything unusual happening at the embassy when a
Washington Post reporter visited the neighbourhood yesterday.
In recent times, Venezuela has been increasing its claims on a large piece
of mineral-rich Essequibo.
Venezuela is also claiming the off-shore area where Guyana has found oil.
Guyana has gone to the United Nations’ International Court of Justice to
have the century-old border controversy settled once and for all.
<< Back to news headlines >>
Bahamas ‘Shooting in Dark’ Over WTO Thursday 24th January 2019 – Tribune 242
The DNA’s deputy leader yesterday expressed fears that The Bahamas is
“walking in the dark” towards WTO membership without the government
“making the case” for joining.
Arinthia Komolafe, pictured, told Tribune Business that accession to full
World Trade Organisation (WTO) membership was “not a priority item” for
this nation given that it needs to put its own house in order first.
Speaking as the party unveiled its WTO “position paper”, Mrs Komolafe
said this nation needed prioritise tackling long-standing “structural and
systemic deficiencies” within its own economy before looking further
afield.
Pointing out that the benefits from WTO membership have yet to be
quantified for the Bahamian people, she expressed particular concern
over the Government’s failure to-date to disclose how it plans to replace
the revenues lost from tariff reductions/eliminations.
Mrs Komolafe argued that it was “not very prudent” of the Government to
suggest only $40m would be foregone in reducing the average tariff rate
from 32 percent to 15 percent, given that the exact amount would only
become clear after The Bahamas’ WTO accession terms were finally
agreed with those nations wishing to trade with it.
Suggesting that the Democratic National Alliance (DNA) was likely to
“hold fast” to its position no matter the outcome of negotiations, she said:
“There are so many local issues, structural and systemic deficiencies in the
Bahamian economy, that this is not the right policy for the Government to
be pursuing at this time.
“Our priority is to address the structural deficiencies in the economy.... Our
fears are if we walk into this [WTO membership] in the dark, which the
Government is doing, and we don’t give the Bahamian people an
opportunity to weigh in with the vulnerability study, the impact will be
unquantifiable. That’s the challenge.
“It’s a very tenuous situation. There’s so much that has to be done at the
local level before we go full speed into this organisation. There are so
many things to take into consideration. They’ve not put out a revenue
replacement policy as to how they’re going to replace the revenue,” Mrs
Komolafe told Tribune Business.
“It’s not very prudent for the Government to put that out there [$40m
revenue loss] without regard to the offer on the table being accepted.”
Zhivargo Laing, the Government’s chief WTO negotiator, cited this figure
as the estimated revenue loss from reducing/eliminating tariffs, which
rules-based regimes such as WTO view as barriers to trade.
That, though, is related to The Bahamas’ opening goods and services
offers, both of which have yet to be agreed with the WTO Working Party
that will negotiate this nation’s accession terms. Previously, government
officials referenced studies showing that the import tariff revenue loss
could be between $100m-$200m.
Mrs Komolafe yesterday expressed concern that the Government will turn
to regressive forms of taxation, such as Value-Added Tax (VAT), to help fill
the revenue gap left by tariff reductions and eliminations.
This, she added, would impose a disproportionate burden on lower
income Bahamians and the middle class, who would pay more of their
income in taxes, while threatening to further increase an unemployment
rate that rose to 10.7 percent in the November Labour Force Survey.
The DNA deputy leader also urged the Minnis administration to publish the
“vulnerability study” it has conducted in relation to WTO accession,
arguing that Bahamians needed to see something “absolutely
convincing” to persuade them of membership’s benefits.
“If we’re going to enter into trade agreements, we have to know what
the benefits are for The Bahamas and how it impacts GDP growth in a
positive way,” she told Tribune Business. “We don’t see it with WTO. Once
you’re in it, you’re in it, and the same rules apply to you.
“If we move forward like we are, the Government is going to be shooting
in the dark and doesn’t know how much revenue it’s going to lose. In this
environment, where revenues are persistently under-budget, we now
know we are going to be reducing tariffs. How are we going to replace
them?”
The DNA, in its WTO position paper, said there was “no urgency” to
accede to full membership given the organisation’s many outstanding
issues. These include the constant calls for reform by the Trump
administration, which produced a statement from the G-20 agreeing on
the need for change late last year.
The party added that the WTO’s dispute resolution mechanism, much-
touted by the Government as one of the benefits of joining, was in
disarray and “unable to function to its full capacity” because the US has
blocked the reappointment of four of its seven judges and the terms of
the remaining three are due to expire later this year.
“The focus of the Bahamas Government at this time must be internal
reform for the betterment of the Bahamian people,” the DNA said. “There
is much work to be done in ensuring the empowerment of the Bahamian
people and local businesses before exposing our nation to the
vulnerabilities of formally submitting to a rules-based regime that is
disproportionate and unfavourable to nations like The Bahamas.
“We maintain that the WTO cannot and must not be the impetus for long
overdue reform within several sectors of our economy. Current members
of the WTO have not been spared from adverse listings and blacklists by
international or multilateral bodies. It would be naive to suggest that
accession to the WTO would be a panacea to the shifting goal posts or
lack of a level playing field for International Financial Centres (IFCs).”
<< Back to news headlines >>
Construction begins in 2020 on $115-million Millennium Highway and West
Coast Roads Upgrading Project Thursday 24th January 2019 – St. Lucia News
Work is expected to begin in the second quarter of 2020 on the $115-
million Millennium Highway and West Coast Roads Upgrading Project and
government officials said it will bring economic activities and reduce
accidents when completed.
A formal signing of the consultancy agreement and contract design for
the project took place on Wednesday.
Infrastructure Minister, Stephenson King, said there will be a reduction of
accidents after the road, which has been dubbed ‘The Roller Coaster
Road,’ is finished.
“Over the years, many road users have come complain of the
deteriorating conditions which probably have brought much grief to
many families in this country,” he said at the signing ceremony. “The sad
and unfortunate events of fatal crashes are well recorded. Also, the
Department of Infrastructure is inundated with a myriad of complaints to
what some refer to as the deplorable conditions on the roller coaster
road. This will be no more.”
Prime Minister Allen Chastanet is confident the project will generate
economic activity on the west coast and the island in general.
He gave an example of visitors to Saint Lucia getting off a cruise ship and
driving down the road to Soufriere and taking a boat back up or going
down by road and returning by road.
“And when you combine that with people who are actually driving down
on an excursion, and clearly if persons are renting a car and going on
tours, the likelihood is that they are going to go down to Marigot and Anse
La Raye and Canaries and eventually into Soufriere,” he explained. “So, it
is the taxi drivers who are immediately making the benefit of that road.”
He said there will be a growth of vendors along the road when it is
finished.
The job goes to FDL Consult Inc in cooperation with international
development consultancy company IMT Worldwide after the government
issued tender requests in 2018 and 16 local and international companies
responded.
Product Manager at FDL, Pewlin Fontenard, said her company is aware of
the many challenges faced by the project.
“We are aware and sensitized towards issues of the informal economic
sector, mobility challenges, gender disparity and climate change among
others,” she stated. “Our design proposal will incorporate both adaptation
and mitigation strategies to minimize the adverse or unwanted impacts.
We also note that most of the route has limited or no provisions for
pedestrians and non-motorized traffic, our solutions will give due regards
to such interventions.”
The project will be administered by the Caribbean Development Bank
and is being funded by a UK Caribbean infrastructure partnership fund
through a technical assistance grant.
<< Back to news headlines >>
U.S. seeks to cut off money for Venezuela's Maduro, aid opposition Thursday 24th January, 2018 – Reuters
The United States is seeking to ensure that Venezuelan oil revenue goes to
opposition leader and self-declared interim president Juan Guaido, and
to cut off money from increasingly isolated President Nicolas Maduro, a
top U.S. official said on Thursday.
Although short on details, the announcement signals that Washington is
willing to go beyond traditional diplomatic measures and will seek to drain
cash from Maduro’s government, which is already struggling under an
unprecedented economic meltdown.
Such a move would significantly strengthen the hand of Guaido, who
swore himself in as interim head of state on Wednesday with the support
of Washington and nations around the region.
“What we’re focusing on today is disconnecting the illegitimate Maduro
regime from the sources of his revenues,” national security advisor John
Bolton told reporters at the White House.
“We think consistent with our recognition of Juan Guaido as the
constitutional interim president of Venezuela that those revenues should
go to the legitimate government.”
Bolton added that the process was “very complicated” and that officials
were still studying how this would function.
Venezuela’s information ministry did not immediately reply to a request for
comment. Guaido did not respond to a message seeking comment.
BOLD CHALLENGE
Washington’s support for Guaido prompted Maduro, Venezuela’s leader
since 2013, to break relations with the United States. On Thursday, he said
he was closing Venezuela’s embassy in Washington as well as all of the
country’s consulates in the United States.
Guaido’s swearing-in was the opposition’s boldest challenge yet to the
long-ruling Socialist Party and has given Maduro’s adversaries an
unprecedented diplomatic platform to press for change in a nation
dogged by hyperinflation, rising malnutrition and political conflict.
But Guaido now leads what amounts to a shadow government
disavowed by the armed forces and with no influence over day-to-day
administration such as importing and distributing food and medicine.
The 35-year-old industrial engineer said he had spoken on Thursday by
telephone with supportive heads of state from around the world.
“I just received a phone call from (Spain’s Prime Minister) Pedro Sanchez
and was able to describe the struggle we are leading together with all of
Venezuela, to achieve a transition government and hold free elections,”
Guaido wrote via Twitter.
His ascent was greeted with excitement by investors holding Venezuela
and state oil company PDVSA bonds, which hit their highest level since
2017 despite being almost entirely in default.
Concerns about potential disruption of Venezuelan crude supplies gave
support to global oil prices.
Oil revenues are crucial to the already crumbling Venezuelan economy
and routing that money away from Maduro as the United State seeks to
do would be a serious blow.
WHO IS LEGITIMATE PRESIDENT?
Guaido took the helm of the National Assembly on Jan. 5 with a call for
the armed forces to recognize Maduro as a “usurper” after his May 2018
re-election, widely viewed as fraudulent.
Backing for him has come principally from the Western hemisphere.
Venezuelan allies including Russia and Turkey - both important
commercial partners - criticized Guaido’s rise as a sign of U.S. interference.
The European Union, which has imposed sanctions on Maduro’s
government, noted that Venezuelans had “massively called for
democracy and the possibility to freely determine their own destiny,” but
stopped short of recognizing Guaido.
Maduro, in a rambling speech, dismissed Guaido’s inauguration and said
he himself remained the country’s legitimate leader.
He has relied extensively on the military to maintain power amid annual
inflation of nearly 2 million percent and an exodus of Venezuelan refugees
into neighbouring countries.
Guaido has said Maduro’s Jan. 10 inauguration to a second six-year term
amounted to a usurpation of power. The vote was boycotted by
Venezuela’s main opposition parties, with Maduro’s two most popular
rivals banned from running and Socialist Party aggressive campaigning
opponents called vote-buying.
Guaido and allies argue that the presidency is vacant as a result and that
the constitution calls for the head of congress to assume the interim
presidency in such a situation.
That still leaves Guaido struggling against a state unwilling to recognize
him and security forces that could jail him, as they did his mentor
Leopoldo Lopez - who is under house arrest for leading anti-Maduro
protests in 2014.
“Can he name ministers? Ministers of air? Phantom ministers?,” asked
Maduro during a speech before the Supreme Court. “Is he going to name
commanders of military units? Will the armed forces obey his command?
Never.”
Protesters clashed with security forces on Wednesday night around the
country and in both affluent and working-class areas of Caracas, with
some demonstrations spilling over into looting.
A total of 14 people have been killed in violence linked to this week’s
protests, according to local rights groups.
Reporting by Steve Holland in Washington and Brian Ellsworth in Caracas;
additional reporting by Roberta Rampton in Washington, Vivian Sequera
in Caracas, Luc Cohen in Bogota, Robin Emmott in Brussels, Vladimir
Soldatkin in Moscow, Karin Strohecker in London and Maria Kiselyova in
Moscow; Editing by Alistair Bell and Rosalba O'Brien
<< Back to news headlines >
UK mortgage lending slows in December Friday 25th January, 2018 – Reuters
British banks approved fewer mortgages last month than in November
and the value of lending for home purchases rose by the smallest amount
since 2016, an industry survey showed on Friday.
Seasonally-adjusted data from the UK Finance industry body showed
banks approved 38,779 mortgages last month. While up more than 6
percent on a year ago, this was down from 39,205 in November.
The value of net mortgage lending increased by 1.235 billion pounds, the
smallest rise since August 2016.
The figures largely add to signs of a slowdown in Britain’s housing market
ahead of Brexit.
Last week the Royal Institution of Chartered Surveyors said its members
had the most negative outlook for house sales over the coming three
months since its records began in 1999.
UK Finance also said it saw signs that businesses were building up cash
reserves, particularly in the construction and retail sectors, in preparation
for uncertain trading conditions.
With little time left until Britain is due to leave the EU on March 29, there is
no agreement in London on how it should exit the world’s biggest trading
bloc, and a growing chance of a ‘no-deal’ exit with no provision to soften
the economic shock.
<< Back to news headlines >
As dismal data flows, ECB policymakers promise caution Friday 25th January, 2018 – Reuters
European Central Bank policymakers promised on Friday to tread
carefully in removing stimulus any further, just as two fresh surveys pointed
to an even bigger-than-projected slowdown in the euro zone’s growth.
ECB President Mario Draghi warned on Thursday that a dip in the 19-
member euro zone’s economy could be deeper and longer than thought
even a few weeks ago, comments widely seen as signalling a delay in the
bank’s first interest rate hike.
Indeed, a key German business morale indicator fell for the fifth straight
month in January, while the ECB’s own survey of professional forecasters
pointed to sharply lower growth and inflation.
“We remain committed to maintaining interest rates very low, which is
good for the economy,” French central bank chief Francois Villeroy de
Galhau told France 2 television on Friday.
“Progressively we are withdrawing monetary stimulus ... but it is very
progressive and depends on improvement in the economy. We’ll take the
time it takes,” said Villeroy, widely seen as a leading candidate to take
over from Draghi when his mandate expires in November.
The ECB ended its 2.6 trillion-euro ($3 trillion) crisis-era asset purchase
scheme last month and said it would keep rates at a record low ‘through’
the summer, signalling a rate hike late in the year.
SLOWDOWN
But markets have long given up on such a move, pricing a rise only for
mid-2020 as the euro zone economy is suffering its biggest slowdown in
more than half a decade, with no recovery in sight.
“The slowdown has surprised us ... we have to be very careful to monitor
the data,” ECB board member Benoit Coeure told Bloomberg television,
arguing that the jury was still out on whether this growth dip is temporary.
The ECB’s quarterly survey, a key element of Thursday’s policy
deliberations, put growth at 1.5 percent this year, well below a previous
projection of 1.8 percent.
Inflation, the ECB’s primary mandate, is now seen dipping to 1.5 percent
and only rising to 1.8 percent in the ‘longer’ term, suggesting that
confidence in the central bank’s ability to reach its target of almost 2
percent is dipping.
Germany, France and Italy, the euro zone’s biggest economies, barely
grew last quarter and the IFO warned that 2019 also started on a weak
note.
“Disquiet is growing among German businesses,” IFO President Clemens
Fuest said in a statement. “The German economy is experiencing a
downturn.”
Economists now widely expect the ECB to push out the timing of the first
rate hike by adjusting its interest rate guidance, perhaps as soon as
March.
It is also seen providing banks with more long-term loans to roll over
previous facilities and shore up confidence in the financial sector.
“We could consider the provision liquidity and credit to banks, it’s part of
our toolbox,” Villeroy said later in an interview with Bloomberg TV.
Additional reporting by Joseph Nasr in Berlin; editing by Richard Lough
<< Back to news headlines >
German government slashes 2019 economic growth forecast to 1 percent Friday 25th January, 2018 – Reuters
The German government has cut its economic growth forecast for 2019 to
1.0 percent from 1.8 percent, parliamentary and government sources said
on Friday.
The government now expects the economy to grow by 1.6 percent in
2020, the sources added.
<< Back to news headlines >
Axe to fall again at Nation Thursday 24th January, 2018 – Barbados Today
Staff of the Nation Publishing Company are bracing for more job cuts.
According to reports reaching Barbados TODAY, a number of positions will
be made redundant in the coming months.
This follows a meeting between the company’s management led by Chief
Executive Officer Anthony Shaw and Group Financial Controller Noel
Wood and a delegate from the Barbados Workers’ Union (BWU) which
included general secretary Senator Toni Moore and consultant Sir Roy
Trotman.
Sources said that managerial staff is expected to be among those being
sent home.
In a meeting with staff this afternoon, Shaw informed them that he had
met with union officials and had presented them with the financial
particulars and performance of the company since 2008, to help
determine a way forward for the company.
He told them that while changes in staff were possibly coming, it would
not be on the same scale of those from 2018.
It will be the second series of layoffs for the Trinidadian-owned newspaper
company in less than a year.
Last April, close to 30 workers were severed, including some from the
newspaper’s sister company Starcom Network. At that time, the company
blamed the highly competitive and rapidly changing print media
environment for the layoffs.
It also claimed that the cuts were as a result of challenges posed by the
various social media platforms and dwindling newspaper revenues over
the past ten years.
On that occasion, one advertising sales executive, two classified advisors,
one typesetter, one senior writer, one traffic coordinator, one lithographer,
one graphics artist, one senior accounts clerk, one sub editor and three
reporters lost their jobs.
< Back to news headlines >>
RER review needed Thursday 24th October, 2018 – Barbados Today
One local economist is calling for an immediate review of the Renewable
Energy Rider (RER) programme, which allows producers of electricity from
renewable energy source to sell power to the Barbados Light & Power
Company (BL&P).
Former Prime Minister Professor Owen Arthur said if Barbados was serious
about meeting its renewable energy goals and breathing life into the
economy, then the Fair-Trading Commission (FTC) should review and
adjust the limits and rates under the programme.
In July 2016, the FTC set a temporary rate for the power being sold to the
national grid under the RER programme at $0.416/kWh for solar
photovoltaic and $0.315/kWh for wind until a permanent rate may be
established”.
At the same time, the FTC said a decision was taken to increase the
capacity limit to 500kW from 150 kW for individuals. Companies have a
limit of 5 megawatts (MW).
Last year, Minister of Energy and Water Resources Wilfred Abrahams gave
notice that a permanent rate would be pursued.
However, with that yet to materialize, Arthur told the SALISES Policy Forum
at the University of the West Indies (UWI) on Wednesday night that the
country was running out of time to improve its growth prospect.
And he said he believed a lot of that growth would require a “major
reform” of the renewable energy sector by “releasing it from the chains
that have been imposed on it”.
The noted economist argued that the country could use photovoltaic and
wind energy to generate most of its energy, but suggested that the
current sum being paid for the energy and the limit of how much
individuals and companies could produce under the programme were
simply not cutting it.
“We have to move the restriction on the capacity and pricing and it can
be done right away for alternative energy to become a growth area for
Barbados,” said Arthur, while arguing that if this was done other sectors
such as agriculture could benefit.
“I believe that it is absolutely necessary that there be an immediate
revision to rulings of the Fair-Trading Commission that really run directly
counter to the need for us to be able to generate 500 megawatts of
energy from alternative sources immediately, and to do so without
impoverishing the alternative energy producers and enriching the light &
power. Mr Abrahams, please act,” said Arthur.
The economist argued that the proposed changes would immediately
enable the sector to “invigorate the Barbados economy”.
<< Back to news headlines >>
H10, Princess to Invest US$750m In Hotel Sector Friday 25th January, 2018 – Jamaica Gleaner
Spanish hotel chain Princess Resorts has committed to investing US$500
million in the construction of 2,000 rooms, while H10 Hotels has
recommitted to spending US$250 million to add 1,000 rooms on the island.
The deal was sealed by Minister of Tourism Edmund Bartlett during the
FITUR trade show now on in Spain and follows a 2015 announcement by
H10 to construct an 800-room resort in Trelawny.
Those rooms were scheduled for completion by 2018, but it is unclear why
the project never got off the ground.
This new commitment will see the construction of an added 200 rooms
and an injection of US$50 million more than was announced in 2015. Both
investors will construct a total of 3,000 new rooms in Trelawny and Hanover
by 2021, Bartlett said in a media release yesterday. He said that H10 would
officially break ground on February 6, and Princess Hotels would do the
same by mid-February.
Operating under the brand Ocean by H10 Hotels, the chain has more
than 50 hotels in 18 destinations, while Princess Hotels and Resorts, ranked
eighth in the Spanish market, has 19 hotels.
Highlighting the significance of the agreements, Bartlett said: “The value
of this investment cannot be overstated as it will transform our tourism
product and allow for heavier marketing of the destination. More rooms
means more visitors, and more visitors means more foreign-exchange
earnings, and, ultimately, more economic growth, which is in line with our
5x5x5 growth strategy”.
Currently, Jamaica’s room stock is 32,000. Under the 5x5x5 growth
strategy, the aim is to have 15,000 additional rooms by 2022.
“These mega projects are ready to go. Funding is in place, lands have
been purchased, and development ready to begin, following the
requisite approvals being granted,” said Bartlett.
While at FITUR, the largest international tourism trade fair for inbound and
outbound Ibero-American markets, Bartlett is expected to host business
meetings with tour operators, airline representatives, and other industry
partners, including major Spanish investors Iberostar, Grand Bahía, Grupo
Piñero, and Grand Palladium.
<< Back to news headlines >>
Venezuela Crisis: Familiar Geopolitical Sides Take Shape Friday 25th January, 2018 – Jamaica Gleaner
Russia, China, Iran, Syria, and Cuba have come down on one side. The
United States, Canada, and countries in Western Europe are on the other.
As the crisis in Venezuela reaches a new boiling point –with embattled
Venezuelan President Nicolas Maduro facing a challenge from opposition
leader Juan Guaido – the geopolitical fault lines look familiar.
President Donald Trump, Vice President Mike Pence, and Secretary of
State Mike Pompeo issued statements on Wednesday proclaiming the
United States’ recognition of Guaido, saying the US would take all
diplomatic and economic measures necessary to support a transition to a
new government. Canada said it was recognising Guaido as the interim
president, and British Foreign Secretary Jeremy Hunt called him “the right
person” to take Venezuela forward.
But Washington’s adversaries are issuing warnings against US intervention.
Russian officials have called the move a “coup” orchestrated by the US.
The US and Russia already are at odds over Syria’s civil war, and the
Venezuelan crisis has the potential to add further strain. Russian-US ties
have sunk to post-Cold War lows over Moscow’s support of separatists in
Ukraine and allegations of Russian meddling in the 2016 US election.
“We view the attempt to usurp power in Venezuela as something that
contradicts and violates the foundations and principles of international
law,” said Dmitry Peskov, spokesman for Russian President Vladimir Putin.
Venezuela’s status as a major oil producer – it has the world’s largest
underground oil reserves, but crude production continues to crash –
means its political instability has deep implications globally.
And Russia has taken a special interest. Last month, Russia sent two Tu-160
nuclear-capable bombers to Venezuela for several days in what was seen
as a precursor to a possible long-term military presence.
Pompeo criticised the move at the time as “two corrupt governments
squandering public funds and squelching liberty and freedom while their
people suffer. Peskov dismissed the comment as “undiplomatic” and
“inappropriate,” saying that half of the US military budget “would be
enough to feed the whole of Africa.”
Russia’s foreign ministry said on Thursday the crisis now “has reached a
dangerous point” and urged the international community to mediate
between the government and the opposition.
Russian Prime Minister Dmitry Medvedev even injected some domestic US
politics into the equation, citing the partial government shutdown and the
differences between Trump and House Speaker Nancy Pelosi.
“Let’s imagine, just for an instant, how the American people would
respond, for example, to the speaker of the US House of Representatives
declaring herself the new president against the backdrop of the budget
crisis and government shutdown,” Medvedev said on Facebook. “What
would be the reaction from the current US president, especially if this
move was supported by the leadership of another country, for example,
Russia?”
Russia frequently decries popular uprisings like the “colour revolutions” that
have taken place in Ukraine, Georgia, and other countries in its former
sphere of influence.
China’s foreign ministry also sternly urged against interference by
Washington in Venezuela. Beijing’s allies, including Iran and Syria, followed
suit.
China “opposes external intervention in Venezuela”, Foreign Ministry
spokeswoman Hua Chunying said. “We hope that Venezuela and the
United States can respect and treat each other on an equal footing, and
deal with their relations based on non-interference in each other’s internal
affairs.”
In the last decade, China has given Venezuela US$65 billion in loans, cash,
and investment. Venezuela owes it more than US$20 billion. China’s only
hope of being repaid appears to lie in Venezuela ramping up oil
production, although low oil prices and the country’s crashing economy
appear to bode poorly for such an outcome.
The Russian state-controlled oil company Rosneft has invested heavily in
Venezuela, and its chief executive, Igor Sechin, visited Caracas in
November, pressuring the Maduro government to make good on its
commitments to his company. Russia, a major oil producer itself, has been
buying oil from the state-run Venezuelan company PDVSA, and Sechin
reportedly went to Caracas to raise concerns about Venezuela halting oil
supplies.
Russia is estimated to have poured in at least US$17 billion in Venezuela in
loans and investment since Maduro’s populist predecessor, Hugo Chavez,
came to power in 1999. The Economic Development Ministry said Russia
has invested around US$4 billion in Venezuela, mostly in joint oil projects.
Asked if Russia would be willing to grant asylum to Maduro, the Kremlin
spokesman Peskov refused to speculate and insisted that Moscow views
Maduro as the only legitimate leader. Maduro visited Moscow in early
December, seeking political and economic assistance as Venezuela has
faced sky-high inflation and food shortages.
For Iran, its relationship with Venezuela hinges on their mutual enmity
towards the US.
Chavez travelled to Iran in 2006 and received the country’s Islamic
Republic Medal, its highest award, from hard-line President Mahmoud
Ahmadinejad, who called Chavez a “brother and a trench mate.”
Chavez vowed Venezuela would “stay by Iran at any time and under any
condition”. Both leaders faced criticism from then-US President George W.
Bush and offered their own withering criticism of him.
After Maduro took power upon Chavez’s death in 2013, Iran has
maintained its support of Venezuela. On Thursday, Iran’s foreign ministry
spokesman, Bahram Ghasemi, criticised the US and other countries over
meddling in Venezuela.
“The Islamic Republic of Iran supports the government and people of
Venezuela against any foreign intervention in the internal affairs of
Venezuela or any other illegitimate and illegal measure such as a coup
d’etat,” Ghasemi said.
Strong endorsement for the current Venezuelan government also came
from Turkey, where President Recep Tayyip Erdogan sent a message of
support: “My brother Maduro! Stay strong. We are by your side.”
Turkey also has cultivated close economic and political ties with Maduro.
During a visit to Venezuela in December, Erdogan blamed US sanctions for
the country’s economic hardships.
Presidential spokesman Ibrahim Kalin said Turkey, under Erdogan, would
“maintain its principled stance against coup attempts.” Erdogan himself
faced a military coup attempt in 2016.
Syria also came to the defence of Maduro’s government.
Damascus reaffirmed its “full solidarity with the leadership and people of
the Venezuelan Republic in preserving the country’s sovereignty and
foiling the American administration’s hostile plans,” the Syrian foreign
ministry said.
Cuba’s foreign ministry said Havana “expresses its unwavering solidarity”
with the Maduro government. Cuba has sent its closest ally tens of
thousands of workers, from doctors to intelligence officials, and in return
has received tens of thousands of barrels a day in heavily subsidised oil.
<< Back to news headlines >>
BPO Workers to Get US$15m Training Boost Friday 25th January, 2018 – Jamaica Gleaner
The Government has signed a US$15-million loan with the Inter-American
Development Bank in a drive to further expand the country’s business
process outsourcing sector.
Speaking at the signing of the loan agreement at his Heroes Circle offices
in Kingston yesterday, Finance Minister Nigel Clarke noted that the sector
is on a trajectory to expand to 40,000 jobs by next year.
“The global services sector in Jamaica has experienced rapid growth over
the past few years and has also generated rapid growth in our economy.
By next year, we will have a total of 40,000 persons employed in the
global services sector, and a short period thereafter, in two or so years,
that number should increase to 50, 000.”
The loan will facilitate state-of-the-art training for workers in modern
technology as well as strengthen institutions to make the local BPO
environment more attractive to investors under Skills Development for
Global Services, a programme to be executed by JAMPRO in
collaboration with the HEART Trust/NTA and the Ministry of Education.
“As we aim to move up the value chain, we see more jobs being created
in higher-skilled areas, including human resources, accounting, legal
process outsourcing, and knowledge process outsourcing, data analytics,
software development, robotics (AI), and gaming. We want to see more
Jamaican companies established in this space offering world-class
information technology consulting services, managing contracts for
global companies, and creating new apps to solve regional and
international problems,” said JAMPRO President Diane Edwards.
Sagicor Chairman Richard Byles, who last year voiced concerns that the
BPO sector was generating mainly low-paying jobs, hailed the new
developments as “a move in the right direction”.
The president of the Private Sector Organisation of Jamaica, Howard
Mitchell, who said yesterday that he had sided with Byles when he made
the statement about the sector needing a boost, is also welcoming the
initiative.
“I expect that a substantial part of it will be set on developing our young
people who have the skills in accounting, law, and those who have
medical skills, and to utilise them in that aspect of the industry. It will go a
far way in adding value to our services. There are some 2,440 lawyers
produced every year. There are some 300 doctors who graduate every
year. I know there are young people with first degrees in accounting and
finance but have no jobs. This, hopefully, will provide the scope.”
If all goes well, Edwards said she would want to see “Jamaican
descendants returning home to participate in a vibrant tech sector”.
“A lot of people think that this is an unskilled industry. It is not! It requires
highly skilled people, and that is the focus of the programme – to open up
a world of opportunities for Jamaica to grow exponentially in the sector.
The Fourth Industrial Revolution is not coming. It is here. Driverless cars,
smart homes, telemedicine, and the robotic process automation, all these
are already a reality in developed countries.”
<< Back to news headlines >
iCreate seeks $70 million via IPO Friday 25th January, 2018 – Jamaica Observer
CREATIVE training institute, iCreate Limited, is seeking to raise capital of
roughly $70 million through the sale of 74 million shares in an initial public
offering (IPO) on the Junior Market.
The offer, which opens 9:00 am on Thursday, January 31, has made
available 30.3 million shares to the general public and 20,000,000 shares to
key partners at $1.01 each. Another 24,062,500 shares are reserved at
$0.81 each.
Applicants looking for part ownership in the company must request a
minimum of 1000 ordinary shares before the offer closes at 4:00 pm on
Thursday, February 14.
According to the company, the proceeds raised from the IPO will be used
to acquire additional equipment, computers and software to deliver
courses. iCreate also wants to expand its physical infrastructure to include
additional computer labs, training rooms and workshop space in Kingston
and Montego Bay.
Additionally, the school is looking to implement new training courses such
as certified professional diplomas, bachelor's degrees and offer corporate
training and also has its eyes on regional and international expansion.
“The company believes that the funds raised from this invitation, if
successful, will enable it to strengthen its balance sheet thus further
enabling it to take advantage of opportunities that may arise from time to
time,” Chairperson, Sandra Glasgow said in the prospectus published on
the Jamaica Stock Exchange.
A subsidiary of eMedia Interactive, iCreate was founded by Tyrone Wilson.
The institution works in partnership with the University of the
Commonwealth Caribbean to deliver degrees and certification courses
to prospective students under the fields of film, advertising, animation,
graphic design, mobile games and fashion design.
In its prospectus, the institution said it has trained more than 370 people in
eight courses in the creative industry since the institute was incorporated
in January 2018, and has managed to generate interest in excess of 3,000
prospects based on applications uploaded to its online portal.
“With increased marketing and exposure from the IPO and our marketing
activities, the number of prospects is expected to double in 2019,” the
institution said.
As for its plans for the regional and international markets, the institution
said it has purchased a licence from the Digital Marketing Institute in the
UK to offer professional and specialist diplomas in the area of digital
marketing and social media.
Additional licences were reportedly purchased by iCreate from the Digital
Marketing Institute to offer digital marketing programmes in the United
States, with Florida as its initial market. iCreate has already registered the
company to start operations in Miami, Florida.
For the quarter ended March 2018, iCreate recorded revenues of $11.69
million with digital courses accounting for approximately 42 per cent of
revenues, and certificates 40 per cent. Corporate training accounted for
approximately 18 per cent of total revenues.
<< Back to news headlines >
Capital markets should be allowed to enhance growth and development
— Gooden Friday 25th January, 2018 – Jamaica Observer
COUNTRIES with well-developed capital markets experience higher
economic growth than countries without, declared the CEO of NCB
Capital Markets, Steven Gooden, at the Jamaica Stock Exchange (JSE)
14th Regional Conference on Investments & Capital Markets held at the
Jamaica Pegasus hotel in Kingston.
This year the theme is “Expanding our borders: Securing our future”.
Gooden pointed out that empirical research suggests that the capital
markets enhances economic growth and development. But he cautioned
that the reality is that in the Caribbean, the role of the capital markets
and the importance of its various players in facilitating GDP growth is
generally not understood, or at best not fully appreciated.
“In Jamaica, the size of the non-bank financial sector, which are active
participants in the capital markets, stood at approximately $1.7 trillion,
exceeding that of the banking system. The data then suggests that the
opportunity for capital markets-driven growth is tremendous, especially at
a time when the government is a net re-payer of debt. If we are to
achieve the illusive 4 to 5 per cent GDP growth, a well-functioning capital
market is necessary,” said Gooden who is also the president of the
Jamaica Securities Dealers Association ( JSDA).
The NCB Capital Markets boss singled out the Jamaican government for
praise on the work it has begun to facilitate the deepening of the capital
markets during the last calendar year. He noted that there is now a
greater openness on the part of the Central Bank as it relates to the
importance of the capital markets.
He commended the government on the initiative to strengthen the
institutional framework of the Bank of Jamaica via an amendment to the
Bank of Jamaica Act. However, he called for representation from the non-
bank financial sector in any body responsible for developing and
implementing policies impacting the financial system.
While Gooden acknowledged progress being made he was unequivocal
in highlighting shortcomings and constraints that stymie the capital market
and its further development.
Chief among those he highlighted was the limitation placed on fund
managers and securities dealers in acquiring foreign currency
denominated debt securities issued by local companies as well as the
restriction on local companies and securities dealers to issue foreign
currency debt securities.
“This goes counter to the notion of having a liberalised foreign currency
market and is anti-competitive. We understand the concern regarding
the potential impact of the capital markets on the foreign currency
market. However, given Jamaica's experience with foreign currency
movement over the decades, making a significant dent on the level of
dollarization in the financial system may very well take a generation.
“As such, for the foreseeable future, there will always be an existing pool
of US dollar liquidity for corporates to tap into without investors having to
convert from local currency to US dollars.”
To buttress his point he pointed out that there are companies that are
natural borrowers of US dollars such as BPOs and hotels and that 26 per
cent of all loans are hard currency denominated.
Underscoring his assertion, Gooden said: “The problem occurs when these
companies are forced to borrow in local currency then convert to US
dollars instead of tapping into the existing pool of hard currency liquidity.
This essentially creates currency pressures… the same problem the
authorities are trying to avoid.”
Casting his eye over attracting more international investors, the NCB
Capital Markets boss surmised that given the improved outlook for the
economy and the attention that Jamaica has been receiving
internationally, it is very likely that sizeable foreign currency denominated
capital market transactions will attract international investors, bringing in
more hard currency into the country.
“High net worth individuals that really want hard currency exposure, will
just simply move their funds overseas if there is a scarcity of quality local
assets to invest in, creating a bigger problem – that of capital flight.
“We understand that the capital markets could cause occasional
volatility in the foreign currency market; we, however, believe that the
concern is overstated and that the residual risk is manageable.
“Instead of shunning the hard currency aspect of the market, let us
embrace it and use it as a catalyst for greater financial inclusion. Our
recommendation is to set a discreet timeframe for relaxation of these
restrictions. An appropriate timeframe will allow stakeholders to plan to
mitigate any resulting risk while fully capitalising on the opportunities that
will arise.”
Turning his attention to the matter of tax inequality, Gooden pointed out
that regulated financial entities with the exception of life insurance
companies are subject to a corporate income tax rate of 33 1/3 per cent
compared to other companies taxed at 25 per cent.
Additionally, he added, there is a tax of 0.25 per cent on assets which for
income tax purposes is not a tax-deductible expense.
“This inequality, the asset tax in particular, came about at a time when
the government embarked on programmes to improve its fiscal situation.
Fast-forward six years and the government's fiscal situation has improved
and now the country has moved from a fiscal deficit of 3.9 per cent of
GDP to a surplus of 0.1 per cent and debt to GDP of 132.5 per cent to
close to 100 per cent of GDP.
“Now that the country is on the right track, we believe it is now time to
revisit the regime. Now is the time to remove the current asset tax and
bring the corporate tax rate of financial institutions in line with non-
financial companies. There is no other country in our region with this level
of tax differentiation,” said Gooden.
<< Back to news headlines >
JSE launches Jamaica Social Stock Exchange Friday 25th January, 2018 – Jamaica Observer
The Jamaica Stock Exchange (JSE), the world's number one performing
stock exchange, launched the Jamaica Social Stock Exchange (JSSE) as
a move to address social inequity at the Jamaica Pegasus hotel in New
Kingston on Tuesday night.
“We believe we must play a role in this value chain,” said Marlene Street
Forrest, managing director of the JSE, in her opening remarks. The initiative
would represent a move out of obscurity while attracting international
investment, she said.
The JSSE is being pioneered not just as a Corporate Social Responsibility
(CSR) activity of the JSE, which it is initially, but to also promote Social
Capital Market, according to the JSE.
“It will engage the financial sector and the entire economy of the country
towards a greater good, which encompasses sustainable development
with people at the centre, growing the social economy, which is now
approximately 3.5 per cent of Jamaica's US$17 billion economy, largely
comprising “Not for Profits” or NGOs.” the JSE says on its corporate
website.
Prime Minster Andrew Holness officially launched the JSSE and greeted
representatives from four of the first organisations to be listed — Choose
Life International, Alpha School of Music, Deaf Can Coffee, Agency for
Inner-city Renewal (AIR) and Praise Jamaica.
The event was standing room only, even with extra chairs being brought
into the Pegasus ballroom, with no space at the hotel parking lot, and
participants seeking parking at the neighbouring Courtleigh Hotel.
The JSE celebrates its 50th anniversary on February 2, and several events
are planned, Street Forrest said. Main sponsors for the conference were
Jeffries and NCB.
“Our wish is for the JSE to not only be the number one performing stock
market, but the place to which the world turns for wealth creation,” Street
Forrest said in her welcome message.
“We also want to see the strengthening of our regional alliance, which will
be continued with the region's exchanges and regulators,” she said.
Gregory Fisher, managing director and head of emerging markets from
lead sponsor Jeffries, in his speech on “Disruption in the global financial
markets: opportunities and threats for emerging markets” spoke about
both the US stock market and the Jamaican economy.
On the US he said that despite the “December massacre” on the stock
market, he was not predicting a recession, although “you are going to
see a slow down.”
He noted that monetary policies are tougher now than they were in 2016,
and that 2019 is the beginning of a predictable cycle.
he said the Fed is likely to cut rates, and that the future bodes well for
fixed income markets.
On Jamaica he said the news was good, noting that unemployment is
down, growth is up and “Jamaica is on an upward trajectory.”
“All the austerity this country has gone through are lessons learned,” Fisher
said.
he said that in 2018 Jamaica outperformed the international benchmark
as assets didn't go down sharply unlike much of the rest of the world.
“Jamaica's credit has continued to improve,” he said, noting that a 2019
upgrade is likely according to the rating agencies.
Three former Jamaican prime ministers presented on a round table
discussion, with PJ Patterson speaking on “The Capital Markets: The key to
capital formation, job and wealth creation”; Edward Seaga on “Re-
engineering integration across the region: Using the exchanges as the
engine of growth”; and Bruce Golding on “Governance, transparency
and ethics, developing lasting values across the region”.
In his address, Patterson said “the JSE by its performance has the capacity
to lead the Caribbean” in creating a regional exchange. He said the
Small and Medium Enterprise (SME) “is ripe for targeting and it is
underserved by the financial sector”, which he noted is a global feature
not just in Jamaica.
“People from all walks of life, including workers and young people need to
be educated about the stock market,” he said.
<< Back to news headlines >
PM in emergency talks with Caricom Friday 25th January, 2019 – Trinidad Express Newspapers
CARICOM leaders were catapulted yesterday into a crisis conference as
the turmoil in Venezuela took centre stage.
A terse release from the Government announced that Caricom heads of
government held an 'emergency meeting' via video conference to
discuss the 'ongoing situation in Venezuela'.
The only information provided was that Prime Minister Dr Keith Rowley and
Foreign and Caricom Affairs Minister Dennis Moses 'were in attendance'.
According to Government sources, the meeting was hurriedly called and
was still in progress at the time the release was dispatched, and was still in
session last night.
Moses said last evening that Caricom (which was still meeting) was
heading towards a consensus position which included an approach to
the United Nations and 'interfacing with Venezuelan President Nicolas
Maduro'.
Rowley was still attending the meeting last night and therefore had to
delegate his responsibilities at the 'Conversations with the Prime Minister'
event in Palo Seco to Energy Minister Franklin Khan.
Speaking at yesterday's post-Cabinet news conference at the Diplomatic
Centre, St Ann's (prior to the convoking of the emergency meeting),
Communications Minister Stuart Young said Government would be
prepared to mediate in the ongoing imbroglio should the parties so desire.
'We hold out that Caricom and Trinidad and Tobago have always held
ourselves available to act as mediator or to act in any position that may
bring people (to the table) to carry out productive dialogue. That is the
role we are prepared to play,' he said.
'We are quite concerned... but we are not going to play any
interventionist role, nor would we take any such basket. We continue to
respect the sovereignty. At the end of the day, the Venezuelan people
will decide,' he said.
We are concerned
Saying on a clear day, one can see the Venezuelan coastline from
Trinidad and Tobago, Young said what goes on there is bound to affect
this country.
However, he stressed: 'Government's position of non-interference and
non-intervention was a very carefully thought-out position.'
Noting this stance had been adopted throughout the country's
independent history, Young said it was also 'generally' Caricom's position
as well. 'This does not mean that we as a Government are not concerned
about what is going on in Venezuela. How we react to this concern is
what is different.... We want things to end peacefully.... We respect the
sovereignty of Venezuela and our other neighbours,' he said.
Young pointed out the Prime Minister had raised with the outgoing
president of Chile during his State visit to Chile (in May 2017) the issue of
what was going on in Venezuela. 'He even offered Trini dad and Tobago
as a meeting place for any discussions...with the opposing sides,' Young
said.
He said the Prime Minister, in a recent Caricom meeting in Jamaica, also
had a conversation with the current president of Chile, and one of the
issues discussed was whether any resolve could be brought to the
Venezuela situation.
Asked whether Moses' attendance at Maduro's inauguration suggested
T& T's support, Young said: 'His attendance was a show of support at his
inauguration. I will not bury my head in the sand.'
He said the Prime Minister has had no recent communication with
Maduro.
Young said he believed very few of the local commentators who were
asking questions and making criticisms in the last 24 hours had taken the
time to read the Venezuelan constitution.
Gas deal still stands
Young expressed optimism that the gas agreement between T& T and
Venezuela would not fall victim to the turmoil in that country.
He said contrary to what people thought, Government sought and
obtained legal advice.
He noted that Shell, a major international company, was part of the
arrangement.
He added he had not heard 'any noise from the people of Venezuela
and, in particular, the Opposition' on this transaction. He said one
individual from Venezuela came to this country and made statements
and they were suspicious as to how he was invited to T& T and who
facilitated him.
'Let us not call anything unnecessarily upon ourselves,' he said, adding the
Government expected the contract to be honoured, regardless of who is
the administration.
Young also dismissed fears that T& T's position could harm its relationship
with the US, in light of that country's recognition of Venezuelan opposition
leader Juan Guaido as the interim president of Venezuela.
Young said every sovereign state is entitled to make to its own decisions.
He said it was easy for people to sit on the other side of the Atlantic or
people way up North to take certain positions.
On the issue of an influx of Venezuelans into T& T, Young said the Coast
Guard had increased its presence along the borders.
He said he also spoke with the Chief Immigration Officer, and work would
also be done on the illegal ports of entry.
Young, who had said he had been interested in engaging the
Venezuelan ministers of foreign affairs and national security, and
considered inviting them for a meeting to discuss border protection, said
while he was still interested in ensuring Venezuela plays its part, he would
adopt a 'wait-and-see' position before taking any further action.
<< Back to news headlines >>
SWRHA: All A&E depts overcrowded Friday 25th January, 2019 – Trinidad Express Newspapers
THE South West Regional Health Authority (SWRHA) has admitted
overcrowding is the main challenge at its five emergency departments.
Responding to recent complaints about the long waiting time at the
Emergency Department at the San Fernando General Hospital, the
SWRHA said measures have been taken to effect positive changes.
In a release, the SWRHA said medical staff see and treat approximately
807 patients on a daily basis at its five emergency departments (EDs).
At the San Fernando General Hospital (SFGH), it stated approximately 307
patients were seen and treated daily.
The RHA serves a population of over 500,000.
The SWRHA completed a newly designed observatory bay the SFGH in
July 2018.
The area, managed by an emergency medical team comprising
medical, nursing and ancillary staff providing clinical coverage on a 24/7
basis is equipped with 22 beds, oxygen availability and waiting
accommodations for family members of clients accessing care and
caters to clients who are medically stable with specific emergency
conditions, whose length of stay is less than 12 hours in duration And there
has been continuous staff development and training in the past year, said
the SWRHA.
'Training of the nursing staff in IV cannulation–The IV Cannulation
programme–is one example of continuous education training. The skill is
invaluable since it helps the nurse to take instant, correct action in
emergency situations thus saving lives. No longer are only the medical
doctors performing insertion of cannulae,' the authority stated.
All staff members would be trained in basic life support.
And trauma training would provide trauma techniques and X-ray
interpretation to all new emergency department house officers.
Staff would also be trained in electrocardiogram (ECG).
In October 2018, the paediatric department in collaboration with the
emergency department initiated the Child Filter Clinic so that children 15
and under would be seen by paediatricians in a dedicated children's
area, away from the adult patients, the release said.
This initiative reduced paediatric admissions by over 50 per cent and had
100 per cent excellent customer satisfaction rating, the authority stated.
The SWRHA has also started a recruitment process by filling vacancies of
nursing and technical staff.
Former SWRHA chairman Dr Lackram Bodoe said on Wednesday the
Government had failed to make health care a priority with the nation's
hospitals on the verge of collapse.
He said hundreds of qualified doctors and nurses remain out of jobs while
patients continue to wait long hours at the hospitals' A& E departments.
Bodoe said the long waiting time in the A& E Department was directly
related to the shortage of beds at the institutions.
And he was disturbed that the Government can boast of saving $211
million from the health sector.
<< Back to news headlines >>
Project Reason abandoned Friday 25th January, 2019 – Trinidad Express Newspapers
PROJECT Reason, an anti-crime initiative which was determined to have
significantly impacted upon crime levels in Laventille and East Port of
Spain was abandoned due to funding and management issues.
This was disclosed yesterday during a meeting of the Inter-American
Development Bank (IDB) at its Washington headquarters.
Project Reason was implemented in T& T from July 2015 to August 2017
using the methodology of the IDB's 'Cure Violence' initiative first
implemented in Chicago.
As part of the programme, Project Reason staff–who were trained in
conflict resolution and other skills– would go into the communities and
engage with gang members, gang leaders and at-risk people and work
with them to prevent violence and retaliation.
The programme was implemented in 16 areas including Beetham
Gardens, Belmont, East Port of Spain and Gonzales and was financed with
a loan from the IDB.
Sharing her experience working with gangs in these areas, Patrice Morris,
a member of the Cure Violence team, said she was surprised by the
conditions and levels of poverty under which people in these communities
live.
Morris said: 'I saw bullet holes in buildings where children live with their
families,' She said she heard stories from residents who were forced to hide
under their beds during shootouts and she stressed the level of fear
members of these communities faced on a daily basis.
Another member of the team described St Paul Street in Port of Spain as
'Iraq', saying he heard gunshots on the phone while speaking to a resident
and realised the 'serious artillery' gangs had access to.
But according to the IDB, within one year of the launch of the project, the
violent crime rate in these areas declined by 45 per cent as compared to
an area that was not part of the programme.
Calls to the police for murders, shootings, and woundings decreased by
22 per cent and the Port of Spain General Hospital experienced a
reduction of roughly 38.7 per cent in the number of gunshot-wound
admissions following the implementation of the project.
The findings were presented during the meeting yesterday and in a
document titled 'Evaluating Cure Violence in Trinidad and Tobago'.
But despite the project being successful, it was discontinued in August
2017 because of insurmountable management issues, according to
Edward Maguire, a criminologist at the Arizona State University and
member of the Cure Violence team.
'The management issues turned out to result in the premature disbanding
of the programme,' he said.
'So all the individuals who were out in the streets preventing acts of
violence are no longer doing that kind of work. They're no longer
employed. The management issues were significant, there were major
conflicts.'
The IDB noted in its report that the programme suffered due to funding
issues as the staff on the ground were paid very low salaries and often
had to use their own money to travel to mediations, court dates and other
places.
Contractor failed to pay
Parliamentary Secretary in the Ministry of National Security Glenda
Jennings-Smith was present at the meeting in Washington yesterday and
said the discontinuation of the programme was not because of
Government non-funding. 'What was the problem was that a contractor
was hired by (Citizen Security Programme) to engage Project Reason
along the Cure Violence model. That contractor failed to pay the workers.
Whilst the Government released funding for the contractor, that
contractor in turn did not pay the workers. 'That is one of the problems...
but certainly we know what has happened, we are taking note, we are
concerned...'
She added the Government has been unable to get any data on the
programme.
'We tried to access that data and there is none,' she said.
Maguire said the data was available and can be accessible to the
Hovernment of T& T. But Jennings-Smith said even though there was a
remarkable drop in violent crimes in the communities where the
programme was active, the crime rate stayed the same countrywide.
'The area of concern was really Port of Spain East which is just one part of
our country where homicides were occurring at higher rates. Now we
have migration of crime throughout the country.'
<< Back to news headlines >>
La Brea gets some Cassia C work Friday 25th January, 2019 – Trinidad Express Newspapers
THE Trinidad Offshore Fabrication Company (TOFCO) fabrication yard in
La Brea has been awarded some of the work to manufacture bpTT's
Cassia C compression platform.
The confirmation came in a statement from the Houston- based
contractor, Mc-Dermott International, which issued a statement yesterday
to announce it had been awarded the contract for the engineering,
procurement and construction (EPC) of Cassia C McDermott described
the contract as 'significant', which places the value of the total EPC
contract in a range between US$250 and US$500 million.
The platform manufacture at La Brea consists of the fabrication of the
piles, jacket, bridge landing frame as well as some brownfield fabrication
support on the Cassia B platform. McDermott said jacket would weigh
3,400 tonnes, while the 720-metric tonne bridge would link the Cassia C
platform to the existing Cassia B platform that currently sits in 68 metres of
water.
The 8,100-tonne Cassia C topsides will be fabricated and constructed at
McDermott's fabrication facility in Altamira, Mexico-where another
recently delivered project for bpTT, Angelin, was fabricated.
'This award demonstrates how, through strong collaboration and
consistent project execution, we continue to build our relationship with
bpTT,' said Richard Heo, McDermott's senior vice-president for North,
Central and South America. 'To ensure project execution excellence, we
will leverage our One McDermott Way operating model to safely and
efficiently deliver the Cassia compression platform with the highest
quality.'
As part of an attempt to push local content, TOFCO was awarded the
contract for the fabrication of the Juniper jacket, topsides and piles in
September 2014.
But in the first half of 2015, La Brea residents disrupted the progress of the
job by blocking the roads to the yard, chaining up the front gate and
demanding jobs in a hostile manner. The fabrication yard also suffered a
delay in receiving a shipment of steel.
The job required the delivery of the Juniper topsides and jacket by
December 2016.
As a result of the delays caused by the labour disruption, in July 2015,
TOFCO was said to have decided to relocate the fabrication of the jacket
and piles to Gulf Marine Fabricators in Aransas Pass, Texas, while the
topside was completed by TOFCO.
That statement said: 'There has been a series of factors that have
occurred beyond TOFCO's control, the effects of which have had
significant impacts resulting in the project not progressing as planned.
'First gas delivery date remains imperative and TOFCO does not have the
capacity to recover the lost time.'
Cassia C is bpTT's third Cassia platform, handling gas coming from its
operations in the prolific Columbus basin. Cassia C will receive 1.2 billion
standard cubic feet per day (BSCFD) of hydrocarbon gas through new
piping from Cassia B across the bridge. The gas will be compressed in
three gas turbine driven compressors and returned to Cassia B for export.
Liquids from Cassia C and Cassia B will be combined and boosted for
export.
First gas from the Cassia C facility is expected in 3Q 2021.
<< Back to news headlines >>
Scotia falls by $0.31 Friday 25th January, 2019 – Trinidad Express Newspapers
OVERALL market activity resulted from trading in 15 securities of which
three advanced, seven declined and five traded firm.
The Composite Index declined by 0.76 points (0.06 per cent) to close at
1,305.14. The All T& T Index declined by 1.32 points (0.08 per cent) to close
at 1,705.25.
The Cross Listed Index declined by 0.03 points (0.02 per cent) to close at
122.30. The SME Index remained at 99.50.
Trading activity on the first-tier market registered a volume of 114,088
shares crossing the floor of the Exchange valued at $4,558,020.24.
ANSA McAL was the volume leader with 67,017 shares changing hands for
a value of $3,685,935, followed by TTNGL Ltd with a volume of 17,885
shares being traded for $521,081.80. Sagicor Financial Corporation
contributed 11,000 shares with a value of $97,900, while JMMB Group
added 4,784 shares valued at $8,558.26. West Indian Tobacco Company
registered the day's largest gain, increasing $0.14 to end the day at
$95.40. Conversely, Scotiabank registered the day's largest decline, falling
$0.31 to close at $63.60. CLICO Investment Fund was the only active
security on the mutual fund market, posting a volume of 24,455 shares
valued at $501,377.50.
CLICO Investment Fund advanced by $0.01 to end at $20.50. Calypso
Macro Index Fund remained at $14.
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 Fund
remained at $1.
<< Back to news headlines >>
Trellis Bay businesses could see increased economic activity with airport
expansion Friday 25th January, 2019 – BVI News Online
Chief Planner at the Town & Country Planning Department Greg Adams
has said the neighbouring business community in Trellis Bay will not be
required to relocate to facilitate the runway extension project at the TB
Lettsome International Airport. In contrast, those businesses could
experience spin-off benefits from the multimillion-dollar project, he said.
Adams said the economic activity in the area could increase based on
the projected volume of passengers expected to fly directly to the
territory from international hubs.
“There are the pros and the cons – the noise is one thing, but the potential
business is another thing. So there is a balance and a trade-off that we
have to measure not just with this project but any sort of economic
activity that comes under development,” Adams said.
“Does it (the project) limit some of the activity? You could argue that it
does. But a lot of the businesses that are there can still continue to
function. This alignment does not interfere with any property that is on
Trellis Bay. It doesn’t encroach on them, it doesn’t push them out, it
doesn’t take anybody’s property. This alignment goes out into the sea, so
it doesn’t take away anybody’s livelihood,” he added.
Project to affect harbour
On the downside, the Adams said the harbour in the area would be
affected to some extent.
He explained that this is because the extended runway would protrude
off the mouth of the harbour.
“But the harbour would be still viable for the boats to moor, and [will still
continue] some of the economic activities we have now. So it doesn’t
condemn the harbour outright,” he told BVI News following a recent
public meeting on the project.
The Chief Planner said designs for the project includes installing what are
known as hydraulic culverts under the runway. These culverts would
facilitate water movement in the area.
“It (the water) doesn’t just cut it off,” he noted.
Adams said while there are those who are for and against the project,
certain “critical decisions are yet to be made on the project”. These
decisions, Adams said, would strike a good balance between what is
important to supporters of the project and also that of detractors.
The project is estimated to cost some $250 million. Roughly $153 million of
that sum will be used to extend the runway from 4,645 feet to about 7,100
feet so larger aircraft can land in the territory. The remaining funds are
projected to go towards the development of the airport’s terminal
building.
The project involves recruiting investors to develop and operate the
airport for 20 to 30 years before returning control to the central
government. In October of last year, Premier Dr D Orlando Smith said
there would be progress on the project before he demits office.
<< Back to news headlines >>
Bureau of Standards developing strategic plan to improve standards Thursday 24th January, 2019 – Dominica News Online
Minister for Trade, Energy and Employment Hon. Ian Douglas has said the
government is implementing a series of reforms for the Dominica Bureau
of Standards, after Tropical Storm Erika and Hurricane Maria to enhance
quality, efficiency and transparency in services delivered by public sector
institutions.
He said these reforms are expected to lead to increased agricultural and
industrial investments, production and productivity, improve quantity and
quality of services and ultimately better the health status of the
population.
Douglas spoke at a consultation on “Creating Stronger Partnerships
Amongst Our Organisations” which was held at the Garraway Hotel
Conference Room on January 23rd, 2019.
He said a five-year strategic plan is in the process of development the aim
of which is to achieve the Bureau’s strategic objectives which “will bring
great benefit to the public and private sector as well as other important
factors.”
“This will enable the Bureau to provide services that meet the evolving
needs of the public and private sector and consumers to understand the
pertinent strategic issues and commitment required to obtain such
objectives,” Douglas explained.
He said the strategic plan will also help to fine tune resources and
management systems for maximum effectiveness and efficiency and “to
sustain the bureau’s ability to adapt to [a] rapidly changing environment
while continuing to carry out its core functions and provide services.”
“The Bureau’s standardization helps to enhance customer satisfaction and
compliance to legal requirements in the areas of human, animal, plant
safety, health and environmental suitability in building a resilient
Dominica,” the Trade Minister noted.
He described the Bureau of Standards as an important software to the
success of all economic activities and said it is more essential today than
at any other time in our nation’s history and development.
Meantime, Chairperson of the National Standards Council (NSC), Eliud
Williams, says the Bureau’s vision is to become Dominica’s leading
national standardization body.
“At the Bureau of Standards, we have a vision to be a leading national
standardization body in the region and as a small nation we have in fact
achieved many things on the world-wide stage and it is in fact possible
that Dominica can become a leading national standardization body,”
Willimas said.
He added, “We have a mission to improve the global competitiveness of
Dominica’s goods and services and enhance the overall quality of life of
the citizenry of Dominica through the promotion and maintenance of
standards and standards related activities.”
He pointed out that if Dominica is to be competitive on the world stage,
more needs to be done to set standards that are comparable to those
that exist else were.
Williams says the Bureau of Standards continues to ensure that the
production of items that are of good quality, and will provide for industrial
efficiency, development and promotion of public and industrial welfare.
<< Back to news headlines >>
Full CARICOM statement on Venezuela’s political crisis Friday 25th January, 2019 – Trinidad and Tobago Newsday
CARICOM has offered to “facilitate dialogue” among conflicting political
factions in Venezuela, while reiterating the region as a “Zone of Peace”
and emphasising its stance of non-interference and non-involvement in
the affairs of sovereign nations.
Regional Heads of Government met today in an emergency meeting to
discuss the unfurling political crisis in Venezuela. The heads acknowledged
tensions had been simmering for a long time, but urged that a resolution
could be found peacefully. Current chair, Prime Minister of St Kitts and
Nevis, Dr Timothy Harris, will also seek a meeting with the United Nations for
their assistance with dealing with the situation.
The following is the full statement issued tonight on the outcome of the
meeting.
STATEMENT BY THE CONFERENCE OF HEADS OF GOVERNMENT OF
CARICOM ON THE LATEST DEVELOPMENTS IN THE SITUATION IN THE
BOLIVARIAN REPUBLIC OF VENEZUELA
The following Heads of Government of the Caribbean Community
(CARICOM) - Antigua and Barbuda, Barbados, Belize, Dominica,
Jamaica, Montserrat, St. Kitts and Nevis, Saint Lucia, St. Vincent and the
Grenadines, Trinidad and Tobago; Foreign Ministers of Grenada and
Suriname, meeting by video-conference on 24 January 2019, issued the
following statement.
“Heads of Government are following closely the current unsatisfactory
situation in Bolivarian Republic of Venezuela, a neighbouring Caribbean
country. They expressed grave concern about the plight of the people of
Venezuela and the increasing volatility of the situation brought about by
recent developments which could lead to further violence, confrontation,
breakdown of law and order and greater suffering for the people of the
country.
Heads of Government reaffirmed their guiding principles of non-
interference and non-intervention in the affairs of states, respect for
sovereignty, adherence to the rule of law, and respect for human rights
and democracy.
Heads of Government reiterated that the long-standing political crisis,
which has been exacerbated by recent events, can only be resolved
peacefully through meaningful dialogue and diplomacy.
In this regard, Heads of Government offered their good offices to facilitate
dialogue among all parties to resolve the deepening crisis.
Reaffirming their commitment to the tenets of Article 2 (4) of the United
Nations Charter which calls for Members States to refrain from the threat
or the use of force and Article 21 of the Charter of the Organization of
American States which refers to territorial inviolability, the Heads of
Government emphasized the importance of the Caribbean remaining a
Zone of Peace.
Heads of Government called on external forces to refrain from doing
anything to destabilize the situation and underscored the need to step
back from the brink and called on all actors, internal and external, to
avoid actions which would escalate an already explosive situation to the
detriment of the people of Bolivarian Republic of Venezuela and which
could have far-reaching negative consequences for the wider region.
Heads of Government agreed that the Chairman of Conference, Dr the
Honourable Timothy Harris, Prime Minister of St. Kitts and Nevis would seek
an urgent meeting with the United Nations Secretary-General to request
the U.N’s assistance in resolving the issue.”
<< Back to news headlines >>
CDF signs US$1 million contribution agreement with India Thursday 24th January, 2019 – Caribbean News Now
The government of India and the CARICOM Development Fund (CDF)
signed a Contribution Agreement on Saturday, January 19, 2019, in
Paramaribo, Suriname, which provides for a grant allocation of US$1
million to the CDF’s capital fund.
India becomes the latest international development partner to have
established formal ties with the CDF during its second contribution and
subvention cycle, which runs from 2015 to 2020, and this comes on the
heels of the recent celebration of the tenth anniversary of the
establishment of the CDF, which became operational in November 2008.
These resources will support implementation of the CDF’s mandate to
provide financial and technical assistance to disadvantaged countries,
regions and sectors within CARICOM, in accordance with Article 158 of
the Revised Treaty of Chaguaramas establishing the Caribbean
Community, including the CARICOM Single Market and Economy (CSME).
The funds will be allocated towards programmes in CDF member
countries in one or more of four thematic areas, namely: renewable
energy and energy efficiency; sector-specific physical infrastructure to
facilitate private sector trade and investment and resilience-building;
concessional financing for SMEs; and human resource development.
The current member countries of the CDF are: Antigua and Barbuda,
Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St Kitts and
Nevis, St Lucia, St Vincent and the Grenadines, Suriname and Trinidad and
Tobago.
<< Back to news headlines >>
Japan's Asahi looks beyond Brexit Britain with Fuller's beer buy Friday 25th January, 2019 – Reuters
Japanese brewer Asahi Group is buying the British beer business of Fuller,
Smith & Turner, seizing the opportunity to further its overseas reach as
other companies wrestle with growing uncertainty over Brexit.
The purchase, worth 250 million pounds ($327 million) including debt, raises
Asahi’s British presence by adding London Pride ale, Frontier lager and
Cornish Orchards cider to its Asahi Super Dry, Peroni Nastro Azzurro and
Meantime brands.
Fuller’s shares jumped 21 percent to 1100 pence on Friday, their highest
level in 19 months, after Asahi’s move, which follows Japanese Prime
Minister Shinzo Abe voicing his concerns over the risk of a disorderly British
exit from the European Union in March and its impact on business.
Japanese firms have spent more than 46 billion pounds ($59 billion) in
Britain, encouraged by successive British governments since Margaret
Thatcher promising them a business-friendly base from which to trade
across Europe.
Asahi plans to continue operations at the Griffin Brewery in Chiswick,
London, where beer has been made since 1654, while a long-term supply
agreement and strategic alliance between the firms will allow Fuller’s
pubs to continue to sell its beer.
The global beer market, dominated by big players such as Anheuser-
Busch InBev and Heineken, has been challenged lately by the rise of
independent craft brews and shifting consumer tastes favouring wine and
spirits.
However, Mintel estimates that the value of Britain’s beer market rose by
3.9 percent to 18.5 billion pounds in 2018.
“This transaction is unexpected but a welcome one – realizing a
significant value for shareholders and exiting a challenging beer market,”
Liberum analyst Anna Barnfather said.
Barnfather said her target price of 1050 pence for Fuller’s had valued the
brewery division at around 125 million pounds.
Asahi confirmed that the purchase includes the freehold of the Chiswick
brewery.
Fuller’s said the disposal will enable it to focus on pubs and hotels, which
generate 87 percent of its operating profit, and provide capital to invest
organically and via acquisitions.
“Fuller’s has for years had to navigate very high taxes, a decline in the
nation’s drinking and austerity which has hit pub attendance,” Jonny
Forsyth, Associate Director, Food & Drink at Mintel, told Reuters, adding
that the brewer’s traditional ale faced competition from the rise of edgier
London craft beers.
GLOBAL LONDON PRIDE?
Asahi said the addition of the Fuller’s brands strengthened its position as a
leader in premium beer, and that it would use its global footprint to build
them across the world.
“Brexit could actually play to Asahi’s advantage because it is putting
pressure on ... the pound which makes exports cheaper,” Forsyth said,
adding that Asahi would also have the option of moving production
overseas to overcome any tariffs.
Forsyth said the Fuller’s deal, which is expected to close in the first half of
2019, could also kick start a year of consolidation, driven by AB InBev’s
competitors trying to close the gap between themselves and the world’s
top brewer.
Friday’s sale price represents a multiple of 23.6 times core earnings of 10.6
million pounds for the year ended March and Fuller’s said it would return
between 55 million pounds and 69 million pounds of the proceeds to its
investors.
Rothschild & Co is acting as sponsor and sole financial adviser to Fuller on
the proposed sale, while Nomura advised Asahi Europe.
($1 = 0.7642 pounds)
<< Back to news headlines >>
Nikkei climbs to 5-week high, aided by chip-related firms, Apple suppliers Friday 25th January, 2019 – Reuters
Japan’s Nikkei reached a five-week high on Friday as chip-related firms
tracked sharp rises by U.S. counterparts, while some investors awaited
major events next week for direction.
The Nikkei share average rose 1.0 percent to 20,773.56, the highest closing
level since Dec. 19. The benchmark index gained 0.5 percent for the
week.
Investors also sought buying opportunities in small-to-mid sized stocks, with
the Mothers market rising 1.7 percent. It was the index’s third straight gain
of more than 1 percent.
Chip-related stocks, which rallied on Thursday after investors took heart
from Texas Instruments’ and Xilinx Inc’s earnings unveiled after
Wednesday’s U.S. market close, continued to soar as the results were
welcomed on Wall Street.
“Investors who were already excited about the U.S. chip sector’s earnings
the day before got even more reassured after they saw how their stocks
moved,” said Shogo Maekawa, a global market strategist at JPMorgan
Asset Management.
Maekawa added that a recovery in the global cyclical chip sector is
taken as a silver-lining amid concern about a global economic slowdown.
He said that investors will be focus on events next week, especially U.S.-
China trade talks
U.S. Commerce Secretary Wilbur Ross said on Thursday that the United
States and China are “miles and miles” from resolving trade issues but
there is a fair chance the two countries will get a deal.
However, U.S. Treasury Secretary Steven Mnuchin was somewhat more
upbeat, saying the United States and China were “making a lot of
progress” in talks, but he did not elaborate.
JP Morgan’s Maekawa said “The market is cautious especially after
comments from Ross.”
Silicon products maker Sumco Corp jumped 12 percent, Tokyo Electron
rallied 4.7 percent, Advantest Corp surged 4.9 percent, while Shin-Estu
Chemical soared 4.5 percent.
Traders said that the gains in the chip sector lifted sentiment in shares of
Apple suppliers as well, with Murata Manufacturing surging 6.1 percent
and Alps Alpine adding 5.2 percent.
The Philadelphia SE Semiconductor Index, under pressure in recent months
after Apple warned of waning smartphone demand, saw its biggest one-
day percentage gain since Dec. 26, advancing 5.7 percent.
Nissan Motor Co rose 2.5 percent after Renault appointed Michelin boss
Jean-Dominique Senard as its new chairman, following the resignation of
Carlos Ghosn in the wake of his arrest, which has rocked the French
carmaker and its alliance with Nissan.
The broader Topix gained 0.9 percent to 1,566.10.
<< Back to news headlines >>
Indian ministers trumpet jobs growth after study showed 11 million jobs lost Thursday 24th January, 2019 – Reuters
Indian government ministers facing an election in coming months
launched a social media campaign on Thursday trumpeting successes in
creating jobs just weeks after a leading think tank reported 11 million jobs
were lost in the country last year.
The independent Centre for Monitoring Indian Economy (CMIE) had
estimated that 83 percent of the job losses occurred in rural areas, where
two-thirds of the population lives, and its study put unemployment at a 15-
month high in December.
The dismal findings would be damaging for Prime Minister Narendra Modi,
whose Hindu nationalist Bharatiya Janata Party (BJP) swept to power in
2014 promising an economy that would grow fast enough to create jobs
for the millions of young Indians joining the labour force each year.
Girding for a general election that must be held by May, members of
Modi’s cabinet seized on data from a private recruitment agency to
present a rosier picture of the job market.
“Proving pessimists wrong, India has seen growth in hiring trend under the
leadership of Shri Narendra Modi,” cabinet minister Harsh Vardhan said on
social network Twitter.
He was just one of several ministers to cite data from jobs portal
Naukri.com, which showed hiring activity in December was 8 percent
higher than a year ago, based job listings added to the site.
According to Naukri, the information technology and software industry
recorded the most hiring, along with construction and engineering -
sectors that are all largely concentrated in urban areas.
Reuters telephoned and e-mailed an official of the portal’s owner, Info
Edge (India) Ltd for comment, but received no response.
A senior leader from the main opposition Congress party dismissed the
hiring trends publicized by the BJP as “another jumla”, using a colloquial
word meaning “false promise”.
“There are some signs of investment revival in certain sectors, and
therefore it’s entirely possible that demand for jobs in those sectors will be
rising,” said Amitabh Dubey, a political analyst with consultancy TS
Lombard.
“The important point politically is that it’s the lower-end jobs that matter,
because that is where the job destruction had happened since
demonetization,” he said, referring to the government’s overnight removal
of high value bank notes from circulation in late 2016 in a bid to curtail the
shadow economy and criminal activity.
“It’s not clear that Naukri.com would be picking up what’s happening at
that level,” Dubey said.
<< Back to news headlines >>
U.S. voices concern as India's e-commerce restrictions hit Amazon,
Walmart Thursday 24th January, 2019 – Reuters
The United States government is concerned about India’s revised e-
commerce regulations and has told officials in New Delhi the policy will
hinder the Indian investment plans of Amazon.com and Walmart Inc,
three sources familiar with the talks told Reuters.
The tussle marks the latest in a number of U.S. protests over Indian
government policies which impact American companies and comes at a
time when the two countries are trying to iron out other trade irritants. In
2017, the U.S. lodged a written protest against India’s decision to cap
medical device prices, which upset American companies.
India’s e-commerce investment rules, which kick in from Feb. 1, ban
companies from selling products via firms in which they have an equity
interest and also bar them from making deals with sellers to sell exclusively
on their platforms.
The policy has dealt a blow to Walmart, which just last year invested $16
billion in buying 77 percent of India’s Flipkart, and Amazon, as it would
force them to change their business structures in the country and raise
their operational costs.
“There is a very strong undercurrent as to how this should be made a
bilateral issue,” said a Washington-based industry source aware of the
companies’ thinking.
“This has gone way beyond being a local (India) tussle.”
A U.S. government official earlier this month told Indian officials to protect
Walmart and Flipkart’s investments in the country, an Indian trade ministry
official told Reuters.
The U.S. government cited “good relations” between the two countries
and stressed that American companies should be given concessions in
the larger interest of bilateral trade, but India gave a “non-committal”
response, the source added.
But Indian Prime Minister Narendra Modi is unlikely to delay the revised
rules or amend them in any meaningful way as he is seeking the support
of the tens of millions of small retailers and traders in India ahead of a
general election that must be held by May. The small firms see Walmart
and Amazon as a threat to their businesses.
An Indian industry source said Walmart, Amazon and lobbying groups
were coordinating efforts with the Office of the United States Trade
Representative (USTR) and the local embassy to express their discontent
about the policy.
The USTR did not respond to a request for comment. The U.S. Embassy in
New Delhi, and Indian trade ministry spokeswoman Monideepa
Mukherjee, declined to comment.
Asked about the Indian policy’s implications, Walmart spokesman Greg
Hitt said: “We certainly, as you would expect, have engaged the (United
States) administration on this issue.” He declined to share further details.
Amazon India said it was committed to complying with local laws but it
needed “adequate time to understand” the policy.
GLOBAL VS LOCAL
Amazon and Walmart have both made bold bets to tap India’s booming
e-commerce market, which Morgan Stanley had estimated, before the
latest government move would grow 30 percent a year to $200 billion in
the 10 years up to 2027.
The companies have targeted a growing population of tech-savvy
shoppers in India, luring them with deep discounts on everything from
dishwashers to smartphones.
India’s small traders and shopkeepers had for years complained that e-
commerce companies were engaging in predatory pricing and hurting
the businesses of brick-and-mortar retailers.
They alleged that the online retailers used their control over inventory from
their affiliates to create an unfair marketplace that allowed them to sell
some products at lower prices. Such arrangements would be barred
under the new policy.
“We are disappointed more than surprised. It makes it harder to plan
things,” a U.S.-based Walmart source told Reuters.
“It is a serious issue. We are doing our best to work with Indian authorities
and trying to explain why this is bad for business.”
The Confederation of All India Traders, which has supported tougher
scrutiny of large e-commerce players, said the companies were acting
“desperate” by pressurizing the Indian government.
“Any deferment or change (in the policy) will adversely affect millions of
small businesses,” said the group’s secretary general, Praveen
Khandelwal.
POLITICS, DEADLINE RISK
Both Walmart-owned Flipkart and Amazon have requested the
government to delay implementation of the policy, but India is unlikely to
relent.
Indian officials have told Reuters no relief was likely as the policy was seen
helping the small trader community, who form a critical voter base for
Modi.
“The idea is just to win over the trading community ahead of elections
and on that point the government will not budge from the deadline,” a
second Indian trade ministry official said.
At stake are big ticket investments. When Walmart bought Flipkart last
year, it said the decision underscored its “long-term commitment to
India”.
Amazon has committed to investing $5.5 billion in the country and Modi
has in recent years met its founder Jeff Bezos multiple times. In 2017, Bezos
said he was “excited to keep investing and growing” in the country.
That investment climate has turned sour with sudden policy changes.
Prasanto Roy, a New Delhi-based consultant who closely tracks India’s
technology policy landscape, said the government should provide stable
policies to attract investment.
“You can’t change policies overnight without consultation and tell
companies who have invested billions to go fly a kite,” Roy said.
<< Back to news headlines >>
Smartphone makers seek export incentives to grow India production Friday 25th January, 2019 – Reuters
Smartphone makers in India are calling for export credits on devices and
tariff cuts on machinery imports as part of measures they say will make
Asia’s third-biggest economy a global smartphone manufacturing hub.
The Indian Cellular and Electronics Association (ICEA), whose members
include some of the industry’s biggest names including Apple Inc, made
the proposals in a 174-page document reviewed by Reuters and
submitted to the government ahead of its annual budget announcement
next week.
“As the country is nearing to achieve saturation point... without an export
take off manufacturing growth cannot be sustained and accelerated,”
the ICEA said in the document.
The ICEA confirmed it submitted the document. The finance and
technology ministries did not respond to requests for comment.
The government’s ‘Make in India’ campaign beginning 2014 and gradual
tax increases on imports of mobile phone components have spurred the
creation of more than 260 manufacturing units in the country and over
600,000 jobs, ICEA said.
That has helped India become the second-biggest producer of mobile
phones after China, and prompted foreign smartphone makers such as
Oppo and Samsung Electronics Co Ltd as well as contract manufacturers
like Wistron Corp and Hon Hai Precision Industry Co Ltd (Foxconn) to ramp
up production for phones primarily sold domestically.
The industry is now set for a further boost under a broader National Policy
on Electronics currently in the works. Yet at the same time, the
government also appears to be raising obstacles.
Next month, it will begin taxing imports of touch panels two months earlier
than initially planned, sending mixed messages to handset manufacturers
as setting up the means to assemble panels locally is a significant
expense.
“Consistency in policy is important for any industry to mature,” said
Navkendar Singh, associate research director at consultancy International
Data Corp. “Back-and-forth in policy hurts investor sentiment and the
country’s positioning as a destination to manufacture.”
In its document, ICEA proposed the government raise the export credit
received on the value of mobile phone shipments to 8 percent from 4
percent. It also called for the introduction of a 5 percent export credit on
services such as mobile apps.
Other proposals from the body - which also counts Huawei Technologies
Co Ltd, Oppo and Foxconn among its members - include lower import
taxes on capital goods such as machinery and ensuring manufacturers
have access to low-cost capital.
“The next phase (of manufacturing) can now probably be driven by
export incentives,” said Vikas Agarwal, India head of Chinese smartphone
maker OnePlus, which is not an ICEA member.
“The eventual goal is to establish India as the preferred destination - and
not just driven by duties, but by the opportunities in the Indian market.”
TOUCH PANEL ASSEMBLY
The ICEA, formerly the Indian Cellular Association, also called on the
government to re-consider levying duties on new components, and allow
for the local manufacture of parts already under the import tax regime to
develop in a timely manner.
The import tariff on touch panels has been of particular concern to
manufacturers including Samsung.
The South Korean firm has written to the federal government saying it
cannot make two of its high-end models in India because of the tariff, the
Economic Times reported this week.
A person familiar with the matter told Reuters Samsung had written to the
government, and that the firm was investing in a touch panel assembly
plant in India which would ready by the end of March 2020.
Samsung declined to comment.
The government aims to export $9 billion worth of mobile phones in the
year ending March 2020 from just $100 million in 2017, the ICEA said in a
previous report.
“Despite some improvement in exports since 2015, India still has a long
way to become an export hub,” it said.
<< Back to news headlines >>
Global shipping rates slump in latest sign of economic slowdown Friday 25th January, 2019 – Reuters
Freight rates for dry-bulk and container ships, carriers of most of the
world’s raw materials and finished goods, have plunged over the last six
months in the latest sign the global economy is slowing significantly.
The Baltic Dry Index, measure of ship transport costs for materials like iron
ore and coal, has fallen by 47 percent since mid-2018, when a trade
dispute between the United States and China resulted in the world’s two
biggest economies slapping import tariffs on each other’s goods.
Dry-bulk commodities are taken as a leading economic indicator,
because they are used in core industrial sectors like steelmaking and
power generation, and analysts say the recent declines in activity point to
a serious economic slowdown.
"Signs that the U.S. and China remain well apart in trade talks continued to
weigh on sentiment in commodity markets,” ANZ bank said in a note on
Friday.
This was after U.S. Commerce Secretary Wilbur Ross said on Thursday the
United States and China were “miles and miles” from resolving their issues.
“The global economy and dry-bulk shipping market are showing us very
real signs of distress,” said Jeffrey Landsberg, managing director of
commodity consultancy Commodore Research.
“While dry-bulk rates often face at least some pressure during the early
stages of a year, the magnitude of the declines being seen lately have
been very rare,” he said.
The Baltic index has lost a quarter of its value since the start of the year,
and dry-bulk is not the only shipping market under pressure.
The Harpex Shipping Index, which tracks container rates, has dropped by
30 percent since June 2018.
As a measure of the demand for shipping manufactured goods from
producers to consumers, container rates are also seen as a leading
economic indicator.
Their slump underscores weakening manufacturing data from Asia,
Europe and North America.
“Slowing global economic growth, the unresolved U.S.-China trade
conflict, the U.S. government shutdown, and Brexit drama are all sources
of uncertainty dragging at sentiment,” said Hussein Sayed, chief market
strategist at futures brokerage FXTM.
In the euro zone, a survey published on Thursday showed that business
growth nearly stalled out at the start of 2019 as trade tensions and political
woes meant incoming new work fell for the first time in over four years.
Asian industrial powerhouse Japan posted similarly weak manufacturing
data in its own survey this week.
In China, the National Development and Reform Commission (NDRC) this
week warned the downward pressure on the economy would impact its
job market as falling factory orders point to a drop in activity in coming
months.
The United States has so far been in a better shape than other leading
economies, but even there, manufacturing indices have been reflecting
weakness since late 2018.
<< Back to news headlines >>
Global stocks gain on earnings, euro rebounds after dovish ECB Thursday 24th January, 2019 – Reuters
Global stocks rose on Friday, as strong earnings helped to underpin
investor sentiment in the face of growing signs that the global economy is
slowing and a still unresolved trade dispute between the United States
and China.
The euro rebounded against the dollar after falling to its lowest in six weeks
following Thursday’s European Central Bank meeting.
European markets opened firmer, with the automakers and tech sector
indices rising 1.5 percent and 1 percent respectively. The pan-European
STOXX index hit its highest since Dec. 4, last up 0.7 percent on the day.
[.EU]
The gains came as stocks rose overnight in Asia and the United States on
the back of strong earnings from U.S. tech firms.
MSCI’s All-Country World Index .MIWD00000PUS, which tracks shares in 47
countries, was up 0.3 percent on the day. But the gauge was set to break
a four-week streak of gains as weak economic data and cautious
soundings from central banks pulled the index half a percent down on the
week.
Data at the start of the week showed China’s economy grew at its slowest
in 28 years in 2018, while purchasing manager indexes in Germany and
the euro zone indicated stagnation in the bloc. On Thursday, the
European Central Bank alluded to downside risks to growth for the first
time in its statement since April 2017, while Germany cut its economic
growth forecast for 2019.
SLOWDOWN
Sombre news continued to trickle in on Friday, with German business
morale falling for the fifth month in a row in January according to the Ifo
business climate index.
According to the latest Reuters polls of hundreds of economists from
around the world, a synchronized global economic slowdown is
underway and any escalation in the U.S.-China trade war would trigger a
sharper downturn.
Sunil Krishnan, head of multi-asset funds at Aviva Investors said investors
were taking some relief from the responses of policymakers.
“What they (investors) were not seeing last year was that activity was
slowing but there was no reaction from central banks. They are seeing
that now - we saw that from the ECB and the Fed has said it’s not on a
pre-set path.”
That along with a rebound from poor liquidity in December explains why
the risk tone in markets has been a bit better, he said.
In a note to clients, UBS Global Wealth Management’s chief investment
officer Mark Haefele said that rhetoric on U.S.-China trade has become
more positive, and that Beijing has taken steps to stimulate its economy.
“While economic and earnings growth is slowing, we believe it is unlikely
that growth will drop far below trend,” he said.
“At the same time, there are reasons to be cautious about policymakers’
ability to follow through on their rhetoric.”
Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31
for the next round of trade negotiations with Washington.
The two sides are “miles and miles” from resolving trade issues but there is
a fair chance they will get a deal, U.S. Commerce Secretary Wilbur Ross
said on Thursday.
In currencies, the dollar fell 0.3 percent against a basket of peers to
96.422. .DXY
The euro EUR= was up 0.4 percent at $1.13490, bouncing back from a six-
week low hit in the wake of ECB President Mario Draghi's downbeat
comments on Thursday.
The ECB’s post-meeting statement for the first time since April 2017 alluded
to downside risks to growth.
The British pound was up 0.3 percent at $1.3076 GBP=D3 after brushing a
two-month high of $1.3140, lifted after The Sun newspaper reported on
Thursday that Northern Ireland's Democratic Unionist Party has privately
decided to back May's Brexit deal next week if it includes a clear time limit
to the Irish backstop. [GBP/]
The benchmark 10-year U.S. Treasury note yield US10YT=RR was slightly
higher at 2.729 percent after dropping to a one-week low as pessimism
over global growth supported safe-haven government debt. [US/]
Fresh data on surging U.S. fuel stocks and worries about U.S.-China trade
talks weighed on oil prices, after they rallied on the threat of U.S. sanctions
against Venezuela. [O/R]
U.S. crude oil futures CLc1 were down 0.3 percent at $60.90 per barrel
after gaining 1 percent on Thursday.
<< Back to news headlines >>
Oil edges down as U.S. supplies, economic worries eclipse Venezuela
turmoil Thursday 24th January, 2019 – Reuters
Oil prices fell slightly on Friday as concerns about U.S.-China trade talks
and fresh data on surging U.S. fuel stocks sent a chill through markets.
The bearish sentiment appeared to outweigh the possibility that turmoil in
Venezuela may lead to tighter global supply if the United States imposes
sanctions on Venezuelan exports.
Brent crude oil futures were at $60.86 a barrel at 1215 GMT, down 23
cents, or 0.38 percent. Brent has shed about 2.9 percent since the start of
trade on Monday and is on track to post its first week of losses in four
weeks.
U.S. West Texas Intermediate (WTI) crude futures were trading at $53.06
per barrel, down 7 cents, or 0.13 percent.
Amid violent street protests, Venezuela’s opposition leader Juan Guaido
declared himself interim president this week, winning recognition from
Washington and parts of Latin America.
Nicolas Maduro, the country’s leader since 2013, responded by breaking
relations with the United States.
RBC Europe predicted that sanctions could nearly double projected
output shortfalls from the troubled exporter.
“Venezuelan production will decline by an additional 300,000-500,000
barrels per day (bpd) this year but such punitive measures could expand
that outage by several hundred thousand barrels.”
Global oil markets are still well supplied, however, thanks in part to a spike
in U.S. output.
Record U.S. production would likely offset any short-term disruptions to
Venezuelan supply due to possible U.S. sanctions, Britain’s Barclays said in
a note. The bank cut its 2019 average Brent forecast to $70 a barrel, from
$72 previously.
The output surge has swollen U.S. fuel stocks, and crude inventories rose by
8 million barrels last week, according to official data released on
Thursday.
Analysts have predicted a more balanced market due to a production
cut pact by the Organization of Petroleum Exporting Countries (OPEC)
and its allies including Russia, as well as potential export disruptions in
Venezuela, Iran and Libya.
“While the current state of affairs is price constructive for oil, the market is
hesitant when it comes to the global outlook,” Harry Tchilinguirian, global
head of commodity markets strategy at BNP Paribas, told the Reuters
Global Oil Forum.
Demand may start to stutter because of a global economic slowdown,
which is likely to dent fuel consumption.
A trade dispute between the United States and China and tightening
financial conditions around the world have hurt manufacturing activity in
most economies and dragged China’s growth last year to the weakest in
nearly 30 years.
According to Reuters polls of hundreds of economists worldwide, a
synchronized global economic slowdown is underway and would deepen
if the U.S.-China trade war escalated.
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