Commission to gain $10m for protecting FTX assets
• Supreme Court approves regulator’s compensation
• Was trustee for benefit of crypto exchange’s clients
• First FTX payouts start today; recoveries at 120%
By NEIL HARTNELL Tribune Business Editor
nhartnell@tribunemedia.net
THE SUPREME Court has approved a $10m payment to the Securities Commission to compensate for safeguarding assets belonging to FTX victims in the wake of the crypto exchange’s November 2022 collapse.
Justice Loren Klein, in a signed February 6, 2025, Order that was filed with the Supreme Court registry five days later, permitted the liquidators of FTX’s Bahamian subsidiary to pay out the regulator’s claim for administrative expenses incurred in protecting digital and other assets owned by the crypto exchange’s creditors over an 18-month period through to April 2024.
“Pursuant to the Companies Act section 205 (3) and the fourth schedule, part one, paragraphs five and six, this honourable court sanctions the exercise of the joint official liquidators’ powers to cause FTX Digital Markets to enter into the administrative claims settlement agreement,” the Order, seen by Tribune Business, states.
Describing the Securities Commission’s claim as an “administrative expense’, the Order said the $10m will cover “expenses incurred as a result of steps that the Securities Commission of The Bahamas took to protect digital assets on behalf of the FTX Digital
‘Unjust disadvantage’ for Bahamian airlines
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A SENIOR aviation executive yesterday warned Bahamian airlines and charters will be placed at “an unjust disadvantage” by sixfold and greater fee increases proposed for this nation’s air navigation services regime.
Anthony Hamilton, president of the Bahamas Association of Air Transport Operators, told Tribune Business that the changes suggested by the Bahamas Air Navigation Services Authority (BANSA) place an “inequitable burden” on local carriers by discriminating against them while, at the same time, favouring foreign carriers that fly through this nation’s air space without landing here.
Speaking after Tribune Business revealed that BANSA’s rebalancing will shift the fee burden to flights that land
Association chief hits at fee hikes’ inequitable burden
Fears mounting cost impact ‘catastrophic’ for locals
35% air traffic union salary jump ‘overly burdensome’
and take-off in this nation, some 77 percent of which are operated by Bahamian airlines and charters, he added that the proposed amendments also discriminate against the smaller planes they typically use by imposing a higher per seat cost compared to larger aircraft such as Boeing 777s.
And Dr Hamilton, who noted that the cost per seat is also higher for planes landing in/taking off from The Bahamas as opposed to aircraft simply flying over this nation, told this newspaper his
concerns extend beyond just the fee hikes to include BANSA’s “bloated” 207-strong workforce, a 35 percent average salary increase for air traffic controller union members, and how the costs underpinning its calculations were arrived at.
As an example, he said BANSA’S audited financial statements for 2021-2022 and 2022-2023, which the Authority’s own February 2025 consultation paper says played a key role in determining the costs that the revised fees will have to cover, have
not been disclosed for public scrutiny. As a result, Mr Hamilton said it will be impossible for aviation industry stakeholders to determine if the costs and fees are justified. And, describing the salary increase for members of the Bahamas Air Traffic Controllers Union as placing an “astronomical burden” on BANSA, he added that the Authority’s weighted average cost of capital (WACC) - which starts at 11 percent and is projected to peak at 14 percent in the 2025-2026 fiscal year - appeared “overly burdensome” and cheaper capital sources needed to be accessed.
“It’s going to be catastrophic for the domestic operators,” Mr Hamilton told Tribune Business if the proposed new BANSA fees, which are to be discussed at an industry consultation on March 5, are implemented
Freeport’s Bazaar awaits update on Gov’t purchase
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
ONE of the International Bazaar’s 13 owners yesterday said it is awaiting an update on efforts to sell the property from the Government’s attorney, and added: “We’ve lost millions of dollars in that investment.”
Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) president, indicated to Tribune Business that the Government’s bid to purchase the International
Bazaar may not be as far advanced as Ginger Moxey, minister for Grand Bahama, signalled at last week’s Grand Bahama Business Outlook conference. While the minister asserted that “purchase agreements have been made with... the Bazaar owners”, the hotel union has to-date just signed a Letter of Intent (LOI). And Mr Woods said he is now waiting for a reply to his request for an update on the property’s proposed sale to the Government from the latter’s legal representative
Norman’s Cay ‘sold
out’ on SpaceX’s booster landing
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A FORMER Baha-
mian rocket scientist with NASA yesterday asserted that “Norman’s Cay is sold out” with other nearby destinations also fully booked ahead of today’s SpaceX rocket booster return.
Aisha Bowe, now the Ministry of Tourism, Investments and Aviation’s ‘space tourism’ adviser, said hotels and other accommodations near the landing site off the Exuma coast are fully booked. And, once Bahamian vendors start selling merchandise and provide new products that spin-off from this tourism niche, there will be a meaningful economic impact for this nation.
Chris Gouthro, an attorney with Gouthro & Company.
“It’s amazing you would ask this question,” the BHCAWU president replied when contacted by this newspaper.
“I just sent an e-mail to Mr Gouthro on Thursday or Friday asking the same question: Where it [the deal] is. I just sent him an e-mail asking if there was any update on it but he’s not replied as yet.
“The only thing they did, which was last year, was send us a Letter of Intent for us to look at and sign. We’ve done. He [Mr Gouthro] said at that point the majority of
Ex-Governor: More competition vital among banks, workforce
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
A FORMER Central Bank governor yesterday challenged whether The Bahamas is willing to expose itself to the “risk” of greater competition from foreign workers as a means to boost productivity and drive down costs.
without any kinds of controls at all or without any major controls, foreign labour. That Government is probably not going to last very long.”
Agreeing that the cost of banking services is high, Mr Francis said it is “a complicated matter”. He called for policymakers to take into consideration the need for greater competition.
“Norman’s Cay is sold out right now. The tourism has already started, and I offer that as a point to how far people are willing to go to get a great seat. That is not necessarily the most accessible place. It’s not necessarily the most inexpensive place,” said Ms Bowe.
“Once the Bahamian tourism industry, in my opinion, begins to create hats and mugs and merchandise, those things are going to sell out. Imagine that you’re on a cruise ship and you’ve just seen this rocket land, or you’ve just seen it. You go to the straw market in Grand Bahama or you go to the straw market in Nassau. Are you buying merchandise? Absolutely. You’re going to want
Julian Francis, now chairman of BISX-listed Commonwealth Brewery, said “The Bahamas exists in a rigged system” and added: “It’s not just the US dollar we’re talking about, say, the availability of US dollars. It’s perhaps, much more importantly, labour because... the fact is that productivity in The Bahamas is dismally bad. And the only way you can change that is by competition.
“People are not going to make an effort if they don’t feel threatened. And so you can imagine what happens to a government in The Bahamas which decides to let in,
“This increase in the net earnings of the retail banks is happening at a time when, of course, we know that the banks are shedding costs,” the exCentral Bank governor said.
“They are reducing their footprint, they are adopting electronic tools to deliver the services. And this is a good thing... And you would think that it would actually bring the cost of these services down because all of a sudden the banks don’t need, and they tell us this, they don’t need offices all around the island.
owners have signed with the exception of one or two that had not. Now I’ve just sent
CHRISTINA ROLLE JUSTICE LOREN KLEIN
GINGER MOXEY
AISHA BOWE
FLY FISHING PRESIDENT SLAMS LODGES DISGUISED AS RENTALS
By FAY SIMMONS
THE Ministry of Agriculture and Marine Resources yesterday awarded $150,000 to the Bahamas Fly Fishing Industry Association (BFFIA) to help with the training of local guides and conservation efforts.
Prescott Smith, the Association’s president, said the funds will go towards strengthening flat fishing guide training in partnership with the Bahamas Agriculture and Marine Science Institute (BAMSI) and Bahamas Agricultural Industrial Corporation (BAIC) plus conservation efforts.
He added that this is the first donation from the Government to the industry, and the investment will not only build the tourism sector but strengthen related education efforts
“As we protect this industry for Bahamians, we are strengthening BAMSI, we are strengthening the University of the Bahamas, we are re-educating the entire nation that we are not just sun, sand and sea,” said Mr Smith.
“I am grateful that we have gotten to this point as a nation that the Government can step forward and say we recognise the importance of this industry and you are putting your money where your mouth is.”
Mr Smith said the Association recently partnered with the Ministry of
Tourism to have fly fishing guides attend international shows, plus market local fishing lodges and drive more visitor traffic to the destination.
“We lobbied the Ministry of Tourism, and they hired for the first time in our country’s history, a fly fishing guide and they are now attending fly fishing shows in different parts of the United States. We now actually have guides, Bahamian guides, going to those shows from different parts of The Bahamas to get the marketing, to bring new business to the lodges owned by Bahamians in the country,” said Mr Smith.
He added that investing in the flats fishing industry will benefit all Bahamians and is hopeful more persons
Bahamian law firm says ‘Tier One’ status retained
HIGGS & Johnson says it has maintained its Tier One status for the 17th consecutive year in the 2025 edition of the Chambers Global Legal Guide, which ranks attorneys and law firms in more than 200 jurisdictions.
“Higgs & Johnson is widely regarded as one of the most prominent law firms in The Bahamas,” the Guide said. “The team has considerable experience overseeing major commercial transactions, including mergers and acquisitions, financings and capital markets issuances.
will enter the industry as it grows over time.
“At the end of the day, you are making an investment in an industry. Whether you are a nurse or a teacher, we must educate the country that while Saudi Arabia might have its oil, South Africa might have its diamonds, our oil and diamonds are in the largest flats fishery on the planet. This resource belongs to every Bahamian,” said Mr Smith.
“I want to see more Bahamian guides. We continue to invest in them and protect this industry for Bahamians because it’s bigger than a lodge and a guide. If you don’t do that, it means future generations to invest in all of the sectors that are connected to
this industry will be taken away.” Mr Smith also called out foreign-owned vacation rentals that double as “illegal” fly fishing lodges, although the industry is reserved exclusively for Bahamians. He added that while attending an industry event in New York it was disclosed that more than 3,000 rental homes in Exuma were also offering fly fishing activities.
“We have foreign lodges coming into an industry that really is reserved for Bahamians, and they have been doing it under the guise of tourism; like a resort,” Mr Smith said. “There are several foreign lodges operating in The Bahamas already that are travel agents.
FREEPORT’S BAZAAR AWAITS UPDATE ON GOV’T PURCHASE
FROM PAGE B1
“They own a travel agency, and they have chains of lodges in other parts of the world, so there’s no need for them to support the Bahamians in the industry. And this is why we have been a big advocate for protecting this industry for Bahamians.
“There’s so many illegal operations taking place in our country where foreigners own hundreds of homes renting and operating as illegal lodges. When we went to New York, they had 3,000-plus homes in Exuma that are operating like this, and these are not Bahamian-owned homes. So, they come in and say, we want to build a home, and then they’re running a business out of it.”
“The firm is equally well placed to assist clients with real estate development mandates, while its dispute resolution team is regularly instructed on some of the jurisdiction’s most noteworthy commercial cases.”
Higgs & Johnson said it was ranked in six different practice groups, including dispute resolution, real estate and development, commercial transactions, financial services, securities, investment funds and Fintech and private client and wealth management practice groups. Eight Higgs & Johnson attorneys, namely Philip C. Dunkley KC; Oscar N. Johnson Jr KC;, Zarina M. Fitzgerald; Stephen J. Melvin; Tara ArcherGlasgow; N. Leroy Smith;
Ex-Cable marketing head hired by payments entity
A FORMER Cable Bahamas director of marketing has been hired to fill the same role with a payments company that has offices in this nation and Panama.
ViaCarte, in a statement, unveiled Ketra Todd as its creative and marketing director. She will be charged with developing the creative vision, brand and market expansion strategy for ViaCarte and its group of companies as they seek to build a presence across Latin America, the Caribbean and further afield.
Possessing skills and experience in the financial services, telecommunications and public policy sectors, Ms Todd was said to have previously led Cable Bahamas’ marketing, content production, partnerships, brand development and communications strategies. She has also worked in commercial banking, merchant services and risk management at Scotiabank, holding posts in The Bahamas, Jamaica, and Eastern Caribbean.
“Creativity in the Fintech space is about crafting experiences that feel intuitive,
Christel Sands-Feaste; and Audley D. Hanna achieved individual rankings in this year’s Guide for their performance. In addition, a number of partners maintained the Guide’s highest ‘Band One’ distinction.
Sterling H. Cooke, Higgs & Johnson’s managing partner, said: “We are extremely honoured to have been awarded the Tier One ranking by Chambers for the 17th consecutive year. This esteemed recognition highlights the exceptional expertise of the entire Higgs & Johnson team. These accolades underscore our steadfast dedication to providing outstanding legal services to our clients.”
meaningful and real, transforming technology into something people can trust and connect with,” said Ms Todd.”ViaCarte is at the forefront of this evolution, bridging the gap between innovation and accessibility.
“I’m excited to shape the brand’s creative vision, enhance engagement and build meaningful connections with institutions and people globally.” ViaCarte, which is licensed to issue Visa and MasterCard products, says it supports payments in more than 135 currencies and 111 countries through its API integration, web interfaces and other infrastructure.
a communication to find out where it’s at.”
Mrs Moxey, in her Business Outlook address, gave the impression that the Government’s acquisition of the International Bazaar for the proposed African-Caribbean products marketplace was further advanced than the scenario detailed by Mr Woods.
While conceding that there has been a “slight delay” due to debts owed by the Bazaar’s existing 13-strong ownership to the Grand Bahama Port Authority (GBPA), she said: “The acquisition of the International Bazaar and Royal Oasis tower and casino properties, as well as the reopening of the West Sunrise Highway, is central to this development and is currently in progress.
“Purchase agreements have been made with both the Bazaar owners and Harcourt Development, and we are ready to go. Our friends at the Grand Bahama Port Authority have indicated that there are long outstanding receivables of the previous owners that must be settled, which has caused a slight delay.
“This acquisition has been budgeted for in the 2024/2025 Budget of the Government, and we are hopeful that we can move forward as quickly as possible for this game changing development for our island.” Some $1m was allocated in the 2024-2025 Budget for the Royal Oasis purchase, and a further $1m for the West Sunrise Highway, but the International Bazaar was not specifically identified.
Tribune Business sources, speaking on condition of anonymity, said most of the International Bazaar owners - who also include the likes of John Bull and the Chee-A-Tow familyhave voiced a willingness to sell if the price, terms and conditions are right but any deal has progressed little beyond that.
And Mr Gouthro has informed them that any costs incurred by the GBPA in demolishing the remaining buildings will be deducted from the purchase price the owners receive to cover this expense. Mr Woods effectively confirmed this yesterday, when he said: “We agreed with
them that they could go ahead and demolish the buildings, and whatever the cost was we would pay for it when the property was sold.
“This was the easiest transaction for us. We didn’t want to invest the little we have in something down there. That’s pretty much it for us. We’ve lost millions of dollars in that investment by way of rental income, hurricanes and the like and we’re just trying to keep it going.
“For us, we’re eager to get out of it and get anything we can get to at least do more things for our membership. It was a good investment at the time, but the environment deteriorated around it causing the investment itself to deteriorate. We’re got to get out,” Mr Woods continued.
“We had a former vicepresident in Freeport who said we need to get out of it at bird speed. How can we put a dollar value on what we’ve lost in terms of being able to recoup it? Whatever we’ve lost down there, we will not recoup it.
“What we want to do is be able to tell the membership: This is what we invested. This is what we lost in it. This is what we were able to recover. It will not bring it to full value but this is what we got back for the members. That’s the point of being a good steward: You get the best you can under the circumstances.”
Mr Woods said he had “heard” the Bazaar site was given an appraisal value of around $3m. He added that both himself and the union were concerned to see the International Bazaar site transformed into a revived destination that would benefit both the Freeport community and tourism product. “Bring some life to that community,” he added.
“All the life is now up at Port Lucaya.
“There are feeder businesses that would like the support from it. There’s still some straw vendors there. They would have something to boost their income from being around it. It would be the ultimate thing for them and those hoping that the Government will look out for them. I heard them in the media really crying out because nothing is happening and they need something to be done to bring life to that area down there.”
Mr Woods, though, acknowledged that ensuring all Bazaar owners are of one accord over any sale may prove challenging. “A dollar to me may not be a dollar to you,” he added.
“That’s where the persons responsible for brokering the deal have to sharpen their negotiating skills and get a happy medium where they bring it to resolution.”
The International Bazaar, which has steadily deteriorated ever since the Royal Oasis resort that supplied a significant proportion of its customer base closed in 2004, suffered further blows as a result of two fires that further devastated what remained of many buildings.
Ginger Moxey, minister for Grand Bahama, in 2023 said of the Government’s Afro-Caribbean Marketplace plans: “Not only will the marketplace promote and distribute African and Caribbean products, but it will also offer a taste of Africa and the Caribbean, making it an appealing tourist attraction.
“In the marketplace, we envision seamless connectivity for trade between Africa and the Caribbean through the African Continental Free Trade Area (AfCFTA), with the Caribbean as the sixth region, and the added advantage of a 230-square-mile freetrade zone offering tax concessions on Grand Bahama.”
Using Grand Bahama’s proximity to the US, the marketplace would provide strategic opportunities for value-added manufacturing, transshipment, distribution and logistics. “This vision, however, goes beyond mere trade,” Mrs Moxey said.
“It represents the culmination of a world-class experience, showcasing the rich cultures of Africa and the Caribbean. The African-Caribbean Marketplace will become the home of ‘All things African and Caribbean’. It will feature a ‘Bahamas Bazaar’ representing each inhabited island of The Bahamas.
“With its conceptual design, including an amphitheatre, featuring a performance arts theatre, African and Caribbeanflavoured concessions and unique architecture reflecting the authenticity of our cultures, we aim to create a space that resonates with the spirit of Africa and the Caribbean.”
DARRIN WOODS
BAHAMAS ‘WELL PROTECTED’ BY US EXCHANGE RATE PEG
By NEIL HARTNELL
A SENIOR Central Bank executive yesterday asserted that The Bahamas is “well protected” by its fixed exchange rate peg to the US dollar despite fears that the latter may depreciate due to inflation and trade wars.
Allan Wright, the monetary policy regulator’s manager of research, told a conference staged by the University of The Bahamas (UoB) that the one:one currency peg is “the best place to be... right now” even amid concerns over the global fall-out if Donald Trump makes good on
threats to impose more tariffs on US imports. While the impact of all this on the US currency and inflation remains uncertain, Mr Wright argued that The Bahamas is “well protected”. Setting out the backdrop, he said: “What is going to happen to the Bahamian dollar if there are huge tariffs between the US and its major trading partners, and if there would be a depreciation in the already-accelerated or appreciated US dollar that you saw here? “Will it have an overflow effect on the Bahamian economy? Will it lead to price increases? What will be the impact of these price increases and so forth? Well, I can say with
as much confidence as I can see at this moment right now: That is not a situation that this economy faces at this moment - not in the near-term nor the medium-term.”
Mr Wright continued: “The impact of tariffs, the impact on inflation, the depreciation of the US dollar or the losing of its value and the overflow on the Bahamian dollar... what the impact would be on inflation we are uncertain to say with all the estimates that we may have.
“Some people say that estimates can be as low as an increase of inflation of somewhere like 0.5 percent to where it could lead to high levels of inflation. Currently we have inflation
in The Bahamas measured last year under 1 percent. The United States is somewhere about 2 percent. So you can see by maintaining a peg, or having a fixed exchange rate, there are benefits to having that in the Bahamian economy.
“The economy is therefore well protected on that side. There are obviously other issues because, by maintaining a peg, you limit the monetary policy that you can use, and you therefore try to support this reserve and this peg by other methods, primarily the complement of fiscal policies and other macro tools,” he said.
“And that’s being done; maintaining the deficit at a low level or a manageable
level so you don’t go outside and borrow money in US dollars [at] higher interest rates, and therefore cause your payments to go up and, at the same point in time, cause the lower effects in terms of private sector market and so forth. So all of that has to be taken into consideration.
“So there are huge benefits. There are still concerns. But all in all I would say the best place to be is where you are right now where the Bahamian dollar is pegged to the US dollar. It is still the international currency, that’s the US dollar, and therefore being associated with it, you are in a strong position. Bahamians are in a strong position and the
Whale habitat fears on SpaceX booster return
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHAMIAN marine mammal scientists last night
blasted the lack of consultation over today’s SpaceX rocket booster return as they voiced fears it will land in Exuma Sound’s whale habitat
The Bahamas Marine Mammal Research Organisation, in a statement, said: “Space X is planning to land their Falcon 9 booster far out to sea to
keep people safe, which is critical, but unfortunately the site chosen offshore has placed the landing in a whale habitat without any consultation with Bahamian whale researchers.
“Exuma Sound is home to resident and migratory whales, all of which are protected species under The Bahamas Marine Mammal Protection Act. Of concern are resident beaked whales as these whales are particularly vulnerable to man-made noise and have died in our waters in the
past following navy sonar exercises.
“Beaked whales’ primary habitat is in depths of 3,000 feet; the same depth chosen for the location of the booster landing, an extremely noisy event,” the non-profit added.
“Another concern is the timing. During winter months, humpback whales with their newborn calves migrate through Bahamian waters, with most sightings occurring in Exuma Sound.
“Humpback whales have finally recovered from whaling but face threats
from many other human impacts. A pregnant female humpback whale died last week in Eleuthera and aborted her full-term calf post-mortem.”
Calling for the Government to release all details concerning environmental impact assessments and other research related to SpaceX’s rocket booster, the Bahamas Marine Mammal Research Organisation said: “Without public access to information concerning the noise, debris, and emissions generated during the landing it is
impossible to understand the risks that the Space X landing poses to Bahamian marine life, highlighting the need for our Freedom of Information Act to be fully enacted.
“Understanding there will be impacts to whales during Space X’s landings in offshore waters of the United States, Space X needed an exemption from the US Marine Mammal Protection Act. Has the Bahamian Government done the same?
economy is still in a relatively strong position.”
Mr Wright said The Bahamas ended 2024 with $2.6bn in external reserves.
“That is, by international standards at least two or maybe at least 150 percent higher than international levels in terms of international standard settings for if you’re having a peg and holding currency to maintain that peg in relation to that,” he added.
“So that $2.6bn, you’re looking at about seven months of supply in terms of goods, import goods, merchandise goods coming into the country. International standards, as I was trying to indicate, is normally at about maybe 108, 120 days.”
“Furthermore, for a foreign commercial company to operate in The Bahamas at this scale, we would expect an Environmental Impact Assessment to be required under our Environmental Planning and Protection Act. Has this occurred? Regardless, a crucial part of that process is sharing knowledge through public consultation to improve mitigation measures and limit impacts on the environment.
Commission to gain $10m for protecting FTX assets
FROM PAGE B1
Markets estate”. FTX Digital Market was the crypto exchange’s Bahamian subsidiary.
Tribune Business previously reported that the Securities Commission took into its custody digital and other assets which, at the time, were said to be collectively valued at around $426m. This occurred in early November 2022, just days after FTX collapsed and its Bahamian subsidiary was placed into provisional liquidation by the Supreme Court.
The regulator obtained an emergency court Order approving the transfer amid fears that the collapsed crypto exchange was being hacked, and these assets - which were owned by FTX clients and creditors - would be stolen and/or irretrievably lost. The Securities Commission had to work with FTX’s now-jailed founder, Sam BankmanFried, and his associates in this process as they were the only ones holding the ‘key’ to these assets.
Christina Rolle, the Securities Commission’s executive director, in a January 28, 2025, affidavit set out “the basis upon which the Commission has advanced its claim for payment in the amount of $10m” via a December 4, 2024, invoice sent to the FTX Digital Markets liquidation trio of Brian Simms KC, the Lennox Paton senior partner, and PricewaterhouseCoopers (PwC) accountants,
Kevin Cambridge and Peter Greaves.
“Pursuant to the transfer Order entered herein on November 12, 2022, the Commission assumed custody and control of the digital assets then under the control of former directors of FTX Digital Markets for the purpose of safeguarding such assets for the benefit of the clients and creditors of FTX Digital Markets, and because it was in the public interest to do so,” Ms Rolle said.
A further Supreme Court Order, dated November 21, 2022, directed that the Securities Commission’s role would be that of a trustee for these assets as governed by the Trustee Act. It was to hold the assets in its possession for the benefit of FTX victims pending further directions from the court.
“The Commission acted as court-appointed trustee of the digital assets from November 2022 to April 2024,” Ms Rolle added. Its duties, as set out in the invoice sent to the FTX Digital Markets’ liquidators, included overseeing the assets’ transfer to a secure wallet; ongoing monitoring and reporting of these holdings; their transfer to the liquidators between April 17-22, 2024; and associated regulatory duties.
To calculate its $10m claim, Ms Rolle said the Securities Commission “did not consider it appropriate to advance a claim for its remuneration for acting
as trustee for safeguarding the assets that has been calculated as a percentage of the value of the digital assets”. Thus it rejected the approach that would have been taken by a commercial, for-profit trustee.
“In addition, given the risks and potential valuation of the digital assets held in safe custody by the Commission, such an approach might have been considered prejudicial to the interest of creditors of the insolvency estate,” she said.
“Further, the Commission does not charge hourly rates for the performance of services. Thus, fixing an hourly rate in respect of the services provided to safeguard the assets was likewise considered by the Commission as an inappropriate approach.
“In the circumstances, the Commission determined it would be most appropriate to negotiate and agree with FTX Digital Markets, acting through their joint official liquidators, a flat fee as remuneration for services rendered as trustee but, in doing so, give due weight and regard to the substantial benefit that accrued to the insolvency estate of FTX Digital Markets, its creditors and clients as a result of the steps taken by the Commission to safeguard the said assets.”
Ms Rolle said these negotiations took place between September 2024 and December 2024, and the $10m payment was also agreed and supported by
John Ray, who oversees the 134 FTX entities in the separate Chapter 11 bankruptcy proceedings in the US, and the liquidation committee for FTX Digital Markets.
The Securities Commission’s $10m payment is part of a wider Supreme Courtapproved settlement where the Bahamian regulator has agreed to relegate its claim for $221.55m in regulatory sanctions and penalties against FTX Digital Markets below those of other creditors so that clients and other victims benefit first from - and maximise onrecovery of their assets.
FTX Digital Markets’ liquidators have also confirmed, via a press statement issued on Friday, that the first wave of creditor payouts to so-called “convenience class” victims owed less than $50,000 will begin today. Those receiving payouts will recover around 120 percent of what they are owed, meaning they will receive more than the value of their claim, due to interest paid on their assets since FTX’s collapse.
“The distribution will be a first and final distribution. The amount paid to customers/creditors will be around 120 percent, representing 100 percent of customer/ creditor adjudicated claim values plus post-petition interest,” the Bahamian liquidator trio said.
They added that creditors not included in the first payment round may be owed more than $50,000; failed to meet the liquidators’
would introduce is this idea that when we talk about productivity in The Bahamas. The simple reality is The Bahamas is a derivative economy.
requirements; have a claim that is still being reviewed to determine its legitimacy; or elected to “wait for alternative distribution providers to become available”.
“We note customers/ creditors may have passed these requirements since the cut-off date for the first distributions. Distributions will be made periodically and customers/creditors will receive notice prior to the next distribution if they are eligible,” the Bahamian liquidator trio said.
“Any customer/creditor yet to meet the requirements will remain eligible for the distribution process via later distributions with the opportunity to receive a catch-up distribution at a later date if the requirements are subsequently met.
“The joint official liquidators anticipate the first catch-up distribution will be made in the 2025 second quarter, and suggest customers/creditors action any requests from the joint official liquidators as soon as possible to minimise any additional delays in receiving their catch-up distribution,” they added.
“The timing of distributions for non-convenience
“We respectfully request the Government of The Bahamas to release information pertaining to the environmental impacts that are being used to assess the risks of the booster landings.”
class customers/creditors and non-customer creditors has not yet been set but these are expected to be made in the 2025 second quarter. All non-convenience class customers/ creditors will be contacted once a date has been set.”
The Bahamian liquidators, concluding with a warning, said: “Customers/ creditors should be aware of potential scams related to the distribution process. The liquidators will never ask for any payment details to be provided via e-mail. Please only follow the instructions to enter your payment details via the FTX Digital claim portal, and do not click into external websites via untrusted e-mails.”
This newspaper understands that persons in the “convenience” class group account for around 80 percent of all FTX Digital Markets creditors, but the timing of their payout will depend on whether they have fulfilled Know Your Customer (KYC) and other conditions. The fact they will recover more than they are owed is because 9 percent interest has been accumulating on their asset principal since FTX collapsed.
“I would talk about the Family Islands, which are woefully under-serviced. But despite the expectation that, as a result of the opportunity, they have to operate far more efficiently in terms of the quantum of assets which they need to deliver their services, we see the costs actually going up,” Mr Francis added.
“And my message to Minister Halkitis [minister of economic affairs] really is that I think the policymakers really need to look seriously at this issue. Retail banks have a licence from the Government through the Central Bank to provide a sort of monopoly on banking services.
“And this goes back to the point about competition. They’re not subjected to competition. Why?
Because you would have thought they would understand that part of the deal is that they keep prices reasonable, and that they provide the scope of services which are required by the economy. That would be the sort of quid pro quo. But apparently they don’t see it that way.”
Michael Green, portfolio manager and chief strategist at Simplify, said.:
“The Bahamas, as I’m sure most of you are aware, has amongst the lowest deposit savings rates in terms of the interest income you earn, even as the cost of financing is amongst the highest in the world.
“That shouldn’t be the case. If you’re going to change that, the only answer is to ultimately decide to open up that base layer stack, effectively subsidising the infrastructure and
compliance components while radically introducing competition into the banking sector at the consumer facing front. Almost the exact opposite of what has occurred so far.
“From my perspective, this speaks broadly around components that were raised. This issue of capital controls, the concerns of bleed over from the international banking system into the domestic banking system and the challenges associated with it,” Mr Green added.
“But The Bahamas faces a very real choice. With a debt-to-GDP ratio amongst the highest levels of developed countries in the world, you may very well be faced with a very unattractive prospect of a devaluation, a challenge associated with that. And the last thing I
“It is tied to the developed world, particularly the United States, in terms of tourism. And when you talk about productivity, as was introduced earlier. It’s basically the number of people and capital invested per person that you can change.
One of the most striking factors to me in The Bahamas is that you have actually seen your tourism numbers roughly double, exceed any level you’ve seen in the past.
“And yet you’re still increasing your deficit levels. There is no alternative to effectively expanding the capacity, increasing competition, lowering the barriers so that you can accommodate even more tourism so that your productivity in the tourism sector becomes a primary focus.”
‘Unjust disadvantage’ for Bahamian airlines
FROM PAGE B1
as is. He confirmed that the main concern is not so much these fee hikes by themselves but the fact they are coming on top of other new and/or increased charges that have been imposed on aviation in recent years.
Urging that there be “value for dollars”, Mr Hamilton said operators wanted to know that funds generated by existing levies on the Bahamian aviation industry are being spent wisely. “Every one of this silos is trying to survive by themselves and they can’t,” he added of the various feecharging regulatory bodies overseeing the sector.
“The trajectory I’m looking at right now, we need all the players in the same room. We don’t need the Government meeting with Tom over there, Sue over here. We need everyone in the same room. We need straight talk, and open and honest people to sit in the same room and have a vision for this industry and vision for the country. If we’re going north let’s all go north. We can fix the gaps and make the adjustments.”
Under the proposed BANSA fee adjustments, all take-off and landing fees - known as origin/ destination charges - will endure between four-fold and six-fold plus increases
over the next four years to 2028-2029. However, Mr Hamilton, in a written reply to this newspaper’s inquiries, voiced disquiet that some of the aircraft types most widely-used by Bahamian operators were not included in the consultation paper.
He explained that it “does not include the higher usage of aircraft within the jurisdiction, namely the Beechcraft 1900 (19 seats), and the Beechcraft 99 (15 seater). The rate for the Cessna 525 is presented at $10.85 per seat and the SAAB 340 (33 seats) at $2.85 per seat.
“Both the 19-seater and 15-seater aircraft are higher frequency users of the domestic space, and one can deduce from the above that the rates per seat will be very high,” Mr Hamilton said. A Cessna 525, which is a twin-engined jet with a six seat capacity, will see its take-off/landing fees increase more than six-fold or 551 percent under the new schedule, rising from just $10 to $65.09. And Mr Hamilton also pointed out that the charge per seat is higher for all categories of aircraft when it comes to take-off/landing fees, while that for planes flying over The Bahamas is lower. “The origin/destination charge for the Boeing 777 is presented at $1.08 per
seat, and the related overflight charge is presented at $0.08 per seat,” he added.
“The disparity in pricing per seat places the domestic operator at an unfair and unjust disadvantage. The cost of BANSA’s service should not present such a disparity between operating types while skewing the benefit to the larger aircraft types.
“Using the MTOW (maximum take-off weight of planes) does not appear to take into consideration the rescue and recovery effort, and associated matters, that would arise in the event of an adverse incident. For this factor alone, placing the greater cost per unit on the smaller aircrafts is unfair.”
In contrast, all overflight fee categories will enjoy reductions in both absolute dollar and percentage terms, with the latter involving cuts ranging from 36 percent to a maximum of 69 percent. “The cost recovery structure presented places an undue allocation of the costs on origin/destination domestic operators based on the classification of the rate structure to aircraft type,” Mr Hamilton concluded.
“The agency should re-evaluate its resource allocations of cost of capital and personnel, as well as the cost structure and
Norman’s Cay ‘sold out’ on SpaceX’s booster landing
FROM PAGE B1
something to commemorate that event.
“In addition, there are all these other innovative ideas that I’m hearing - from people putting up websites to talk about the best viewing areas to individuals who want to create excursions. There’s no lack of ideas. I think we needed to give it to the people and then have them determine how they want to engage with it.”
Ms Bowe, also founder and chief executive of STEMBoard, said space tourism will not only make The Bahamas more attractive for visitors interested in aerospace but can provide an economic boost through
careers directly and indirectly related to the sector. She said Cape Canaveral in Florida received more than 1.5m visitors last year. This influx generated $3bn in revenue for the destination plus $1.5bn in wages for the 46,000 individuals employed directly or indirectly by the well-known space launch venue.
“What I think is particularly exciting about this is, if we were just to look at the established model, which is Cape Canaveral in Florida, over 1.5m visitors were welcomed last year. Those visitors are representative of about $3bn in revenue and, on average, they stayed for about two days and they were able to watch
launches from places that I would argue were not as beautiful as The Bahamas,” said Ms Bowe.
“Those individuals are responsible for a revenue stream that created, both directly and indirectly, about 46,000 jobs, and they’re about $1.5bn in annual wages. If we start to just kind of think about the types of tourists that come to The Bahamas, we’re now adding the likelihood that people who went to go see the launches are going to be here to see the landings.”
Ms Bowe added that the space industry employs various professionals, some of which can be trained locally at the Bahamas Technical and Vocational Institute
burden that its current forecasts place on local operators, and present an equitable arrangement that benefits and enhances service to the operators whose flights originate within The Bahamas.”
The BANSA consultation document, meanwhile, reveals previously undisclosed details of the recent industrial agreement signed with the Bahamas Air Traffic Controllers Union. “It should be noted that BANSA recently concluded a new industrial agreement, which included increases in salaries and related benefits for the staff,” the paper revealed.
“The three-year agreement foresees an increase in salaries at an average 35 percent over the threeyear period fiscal year 2022-2023, 2023-2024 and 2024-2025. In addition, other salary-related costs at an average of 11 percent for the same period. Additionally, BANSA has committed to complete a workforce assessment in 2024-2025 to determine the amount of ATS (air traffic services) and support personnel to be recruited on an annual basis.”
BANSA was shown as having 207 employees at the end of 2022-2023, the bulk of whom were employed in air traffic operations (146) with some 160 stationed in
(BTVI) or University of the Bahamas (UB). And, once the industry is established here, other companies may become interested in the destination.
“One of the cool things about the rocket industry is it takes all types. They need accountants, they need project managers, they need machinists, they need technical professionals who may go to BTVI or UB,” said Ms Bowe.
“There are other people in addition to SpaceX who may also be attracted to operating here because the infrastructure is here, and that’s what’s exciting to me about this entire thing. It’s a framework that was created that other people can utilise, that gives a living reminder to the possibility of what happens when people dare to dream.”
Ms Bowe explained that the SpaceX booster, once landed off Exuma will have
New Providence. And the Authority’s weighted average cost of capital (WACC) is forecast to rise from an initial 11 percent to 14 percent in the 2025-2026 fiscal year, then reduce slightly to 13 percent annually through to 2028-2029. However, Mr Hamilton argued: The BANSA staffing structure at 207 personnel is bloated and does not appear to include any component of search and rescue. The weighted average cost of capital is overly burdensome at 11 percent in the initial years and rises to 14 percent in fiscal year 2025-2026.
“A 35 percent salary increase in the initial years is an astronomical burden to place on the agency, particularly when the agency seems to be committed to 11 percent increases in each of the forecasted years. The agency should make it a priority to source less costly capital.
“Having had an opportunity to review the report, it appears to refer to the fiscal audit of 2021-2022. However, a copy of the audit report is not attached, nor is a copy of the extract of the audited functional expenses related to the agency,” he continued.
“The inclusion of the referenced audit reports would aid the process of justification and relevance to the
to be barged back to Florida, and both mariners and cruise passengers will be able to catch a glimpse of its return to Earth. These visitors, along with those that travel to view the landing, will be enticed to purchase merchandise and book excursions which will also directly benefit Bahamian vendors and tour guides.
“Once the booster has landed, it takes approximately three days to get back to its home. Along the way, cruise ships and people who are on the water can be able to see it. If we just think about a small segment of these individuals spending, let’s say, $20 because they will want to buy shirts, they will want to buy hats, they will want to buy drinks, they will want to buy merchandise, they will want to go on excursions,” said Ms Bowe.
“That is going to be millions of dollars of revenue that goes directly into the
final decision-making process in the best interest of both stakeholders and the citizenry of the Commonwealth of The Bahamas.” Mr Hamilton said the BANSA consultation paper “refers to the ongoing requirements to provide support services to Federal Aviation Administration (FAA) equipment based in The Bahamas”, but “does not present any information on the receipt of costs reimbursements from the FAA for these services”.
“In addition to BANSA’s assets, the FAA is the owner of several assets installed throughout The Bahamas archipelago. The FAA frequently requires BANSA to provide local support for equipment maintenance in case of disruptions or failures,” the consultation paper said.
“BANSA provides support also to several FAA missions to execute planned and unplanned maintenance activities of these assets. This does not result in a depreciation cost accountable for BANSA, but it does imply a staffrelated effort which has been calculated.”
Lenn King, BANSA’s director, did not reply to an e-mail sent to his work address seeking comment before press time last night.
hands of Bahamians. That money doesn’t require filtration to the Government.” She added once space tourism has been established in The Bahamas, she would like to see investments being made new in air traffic control equipment and involving more Bahamians who currently work overseas.
“The first kind of investment area that I would like to see is strengthening the air traffic control apparatus that already exists in the country,” said Ms Bowe
“The next piece is continuing to cultivate Bahamians who work in the aerospace industry. I know people might be familiar with me, but we have several others. These individuals have careers. You can Google them. They’re amazing, and they’re already working in the field, but now for the first time they could come and live where they work, and that’s amazing.” NOTICE HOMERO
PAIVA LTD. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, HOMERO PAIVA LTD. is in dissolution as of February 11, 2025
International Liquidator Services Ltd. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
THIS photo provided by SpaceX shows the company’s Starship rocket at the launch site in Boca Chica, Texas. Photo:SpaceX/AP
ELON MUSK’S DOGE SEEKS
ACCESS TO TAXPAYER DATA
AT IRS: AP SOURCES
By FATIMA HUSSEIN Associated Press
ELON Musk's Depart-
ment of Government Efficiency is seeking access to troves of sensitive taxpayer data at the IRS, two people familiar with the inner workings of the plan who were not authorized to discuss the matter publicly told The Associated Press on Monday.
If successful, Musk and his group would have access to millions of tightly controlled files that include taxpayer information, bank records and other sensitive records.
The people who spoke to the AP and requested anonymity said DOGE is specifically seeking to access the IRS' Integrated Data Retrieval System, which enables employees "to have instantaneous visual access to certain taxpayer accounts," according to the IRS website.
Advocates fear that the potential unlawful release of taxpayer records could be used to maliciously target Americans, violate their privacy and create other ramifications.
Harrison Fields, a White House spokesman, said in an emailed statement that "waste, fraud, and abuse have been deeply entrenched in our broken system for far too long. It takes direct access to the system to identify and fix it."
"DOGE will continue to shine a light on the fraud they uncover as the American people deserve to know what their government has been spending their hard earned tax dollars on," he said.
Democratic lawmakers are trying to fight against DOGE plans to access IRS data. Sens. Ron Wyden, D-Ore., and Elizabeth Warren, D-Mass., sent a letter Monday to acting IRS Commissioner Douglas O'Donnell, demanding copies of any memos that would grant IRS system access to Musk or DOGE.
The senators are also seeking justifications for DOGE efforts to inspect tax returns and private bank records.
Along with fears that DOGE access to taxpayer data may not be legal,
"we are also extremely concerned that DOGE personnel meddling with IRS systems in the middle of tax filing season could, inadvertently or otherwise, cause breakdowns that may delay the issuance of tax refunds indefinitely," the letter reads.
"Any delay in refunds could be financially devastating to millions of Americans who plan their budgets around timely refunds every spring."
Jan. 27 was the official start date of the 2025 tax season, and the IRS expects more than 140 million tax returns to be filed by the April 15 deadline.
The Washington Post on Sunday first reported on DOGE's plans to access taxpayer data.
The news comes as the IRS plans to lay off thousands of probationary workers in the middle of tax season, according to two sources familiar with the agency's plans who were unauthorized to discuss them publicly. Cuts could happen as soon as this week.
Previously, IRS employees involved in the 2025 tax season were told they will not be allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline, according to a letter sent recently to IRS employees.
Additionally, attorneys general from 14 states challenged the authority of DOGE to access sensitive government data housed at Treasury and exercise "virtually unchecked power" in a lawsuit filed Thursday.
The lawsuit, filed in federal court in Washington, says the actions taken by Musk at the helm of DOGE can only be taken by a nominated and Senateconfirmed official. It cites constitutional provisions that delineate the powers of Congress and the president.
A new account on Musk's social media site X, called DOGE IRS, says, "DOGE is seeking help from the public!" The account asks users to reach out "with insights on finding and fixing waste, fraud and abuse relating to the Internal Revenue Service."
Germany’s economy is in the dumps. Here are 5 reasons why
By DAVID McHUGH AP Business Writer
GERMANY hasn't seen significant economic growth in five years. It's a stunning turnaround for Europe's biggest economy, which for much of this century had expanded exports and dominated world trade in engineered products like industrial machinery and luxury cars.
SO WHAT HAPPENED?
Here are five reasons for Germany's ongoing economic slump:
Energy shock from Russia
Moscow's decision to cut off natural gas supplies to Germany in the wake of Russia's invasion of Ukraine dealt a severe blow. For years, Germany's business model was based on cheap energy fueling production of industrial goods for export.
In 2011, then-Chancellor Angela Merkel decided to hasten the end of nuclear power use in Germany while relying on gas from Russia to bridge the gap as the country moved away from coal generation and toward renewable energy. Russia was then considered to be a reliable energy partner; warnings to the contrary from Poland and the United States were dismissed.
When Russia discontinued the flow, prices in Germany skyrocketed for gas and for electricity generated from gas, both key costs for energy-intensive industries such as steel, fertilizer, chemicals and glass. Germany had to turn to liquefied natural gas, or LNG, super-cooled and imported by ship from Qatar and the U.S. LNG costs more than pipeline gas.
Electricity now costs industrial users in Germany an average of 20.3 euro cents per kilowatt hour, according to a study the research firm Prognos AG prepared for the Bavarian Industry Association. In the U.S. and China, where many competitors of German companies are located, the cost is the equivalent of 8.4 euro cents. Renewable sources of energy haven't scaled up
fast enough to fill the gap.
Homeowner and regional resistance to turbines slowed wind energy growth. Infrastructure to transport hydrogen as a replacement fuel for steel furnaces remains mostly on the drawing board.
China: From customer to competitor
For years, Germany benefited from China's entry into the global economy - even as other developed countries lost jobs to China. German companies found a massive new market for industrial machinery, chemicals and vehicles. Through the early and mid 2010s, Mercedes-Benz, Volkswagen and BMW reaped fat profits selling into what became the world's largest car market.
At the time, Chinese companies produced items like furniture and consumer electronics that didn't compete with Germany's core strengths. Then, manufacturers in China started making the same things that Germans did.
State-subsidized Chinese solar panels wiped out Germany's makers. In 2010, Chinese panel makers depended on imported German equipment; today, global solar panel production relies on equipment from China. The government in Beijing has ramped up efforts to promote and subsidize manufacturing for export. The resulting goods — steel, machinery, solar panels, electric vehicles and EV batteries — now compete with German goods on export markets.
Germany, the most autocentric of the European Union economies, had the most to lose from China's export-oriented industrial policy. In 2020, China was not a net exporter of vehicles; by 2024, it was exporting 5 million a year. Germany's net exports fell by half over the same period, to 1.2 million cars. Chinese factory capacity is estimated at 50 million vehicles a year, roughly half of global demand.
Skimping on investment
Germany grew complacent during the good times and put off investing in long-term projects such as rail lines and high-speed internet. The government balanced its budget and sometimes ran surpluses off the tax revenue from a booming economy. These days, German commuters shake their heads at trains that don't run on time and constant service disruptions while repairs are made to worn-out tracks. High speed internet hasn't yet reached some rural areas.
A transmission line to bring electricity from Germany's windy north to factories in the south has run years behind and won't be ready before 2028. A key bridge on the highway connecting the industrial Ruhr region with southern Germany had to be closed in 2021, 10 years after doubts about its durability emerged. A replacement won't be ready before 2027. A 2009 constitutional amendment handcuffed the government by limiting deficit spending. Whether to loosen the so-called debt brake will be a thorny issue for the German government installed after the country's Feb. 23 election.
Lack of skilled workers
German companies are having trouble finding workers with the right skills, from highly trained IT workers to daycare providers, senior care workers and hotel staff members. In a German Chamber of Commerce and Industry survey of 23,000 firms, 43% of companies said they couldn't fill open positions. The response rose to 58% for companies with more than 1,000 workers.
Fewer German students are interested in STEM fields, meaning science, technology, engineering and mathematics. An aging population compounds the problem, as does a shortage of affordable child care that keeps many women working part-time or not at all. Bureaucratic hurdles pose an obstacle to employing highskill immigrants, though a law passed in 2020 and strengthened in 2023 aims to ease the process.
Bureaucracy
Lengthy approval procedures and too much paperwork are a drag on the economy, according to Germany companies and economists. Securing a construction permit for a wind turbine can take years. A few other examples, among dozens raised by German business groups:
— Companies installing solar panels need to register with both government regulators and their local utility even though the utility could pass on the information to the government level.
— Restaurants have to log refrigerator temperatures by hand and keep hard copies of the records for a month even if the data has been stored digitally.
— A law requiring companies to certify that their suppliers are obeying environmental and labor standards went beyond EU requirements, putting a heavier burden on German companies than their European competitors.
Notice is hereby given in pursuance of Section 138(8) of The International Business Companies Act, 2000 (as amended), the Dissolution of the above-named company has been completed, a Certificate of Dissolution has been issued and the abovenamed company has therefore been struck off the Register. The date of the completion of the dissolution was the 20th day of January 2025.
Bennet R. Atkinson Liquidator
Wall Street finishes a winning week just shy of a record
By STAN CHOE AP Business Writer
WALL Street edged back from its all-time high on Friday, as U.S. stock indexes drifted following mixed profit reports from big companies.
The S&P 500 barely budged and slipped by less than 0.1%, a day after rallying within 0.1% of its record set last month. The Dow Jones Industrial Average dipped 165 points, or 0.4%, while the Nasdaq composite rose 0.4%.
The S&P 500 still closed out its first winning week in the last three thanks in part to reports showing companies made even fatter profits at the end of 2024 than analysts expected. They've helped the market power through a range of worries centered on higher
interest rates and stubborn inflation.
Airbnb climbed 14.4% after reporting stronger profit for the latest quarter than analysts expected as customers booked more nights on its platform. Wynn Resorts jumped 10.4% after likewise topping earnings expectations, thanks in part to strength for its Las Vegas operations.
On the losing side of Wall Street was Applied Materials, which dropped 8.2%. The company, whose products help make semiconductor chips, displays and other tech, also reported stronger profit for the latest quarter than analysts expected. But it gave a forecasted range for upcoming revenue whose midpoint fell short of Wall Street's expectations. All told, the S&P 500 slipped 0.44 to 6,114.63. The
Dow Jones Industrial Average dipped 165.35 points to 44,546.08, and the Nasdaq composite rose 81.13 to 20,026.77.
In the bond market, Treasury yields fell after a report said sales at U.S. retailers weakened by much more last month than economists expected. Bad weather, including bitingly cold temperatures in the South and devastating wildfires in California, may have helped keep shoppers away from stores and auto dealerships.
The hope among investors has been for economic data to remain at a Goldilocks level, where it's not so weak that it raises worries about a downturn but not so strong that it creates upward pressure on inflation.
This past week featured a couple disappointing
reports that showed inflation unexpectedly accelerated last month. Besides squeezing tighter on U.S. households' budgets, such stubbornly high inflation is likely to keep the Federal Reserve on hold for a while when it comes to providing relief through lower interest rates.
Inflation may feel more upward pressure from tariffs that President Donald Trump has announced recently. So far, though, the U.S. stock market has taken such threats in stride. The belief is that Trump is using tariffs as a tool for negotiation, and he may ultimately avoid triggering a punishing
Mexico awaits new response from Google on dispute over Gulf of Mexico name before filing lawsuit
MEXICO CITY Associated Press
MEXICO said Monday it's awaiting a new response from Google to its request that the tech company fully restore the name Gulf of Mexico to its Google Maps service before filing a lawsuit.
President Claudia Sheinbaum shared a letter addressed to her government from Cris Turner, Google's vice president of government affairs and public policy. It says that
Google will not change the policy it outlined after U.S. President Donald Trump declared the body of water the Gulf of America. "We will wait for Google's response and if not, we will proceed to court," Sheinbaum said Monday during a morning press briefing. As it stands, the gulf appears in Google Maps as Gulf of America within the United States, as Gulf of Mexico within Mexico and Gulf of Mexico (Gulf of America) elsewhere.
Turner in his letter said the company was using Gulf of America to follow "longstanding maps policies impartially and consistently across all regions" and that the company was willing to meet in person with the Mexican government.
"While international treaties and conventions are not intended to regulate how private mapping providers represent geographic features, it is our consistent policy to consult multiple authoritative sources to provide the most
up to date and accurate representation of the world," he wrote.
Mexico has argued that the mapping policy violates Mexican sovereignty because the U.S. only has jurisdiction over around 46% of the Gulf. The rest is controlled by Mexico, which controls 49% and Cuba, which controls around 5%. The name Gulf of Mexico dates back to 1607 and is recognized by the United Nations.
In response to Google's letter, Mexican authorities
global trade war in order to prevent damage to the U.S. stock market and economy. His most recent tariff announcement, for example, won't take full effect for at least several weeks. That leaves time for Washington and other countries to negotiate and hopefully lessen the ultimate shock.
"Tariffs on Chinese goods have gone into effect," said Brian Jacobsen, chief economist at Annex Wealth Management. "All of the other things that have been discussed — reciprocal tariffs, steel and aluminum tariffs, and tariffs on Canada and Mexico — haven't actually gone into effect, yet. That opens the door the negotiations." The market's remarkable equanimity, of course, could be dangerous if things don't go according to Wall Street's expectations, or if it emboldens Trump to make even more forceful moves. In the bond market, the yield on the 10-year Treasury fell to 4.47% from 4.54% late Thursday. It's been swinging sharply since the Federal Reserve began cutting its main interest rate sharply from September intending to make borrowing cheaper, help the economy and boost prices for stocks, bonds and other investments.
said they would take legal action, writing that "under no circumstance will Mexico accept the renaming of a geographic zone within its own territory and under its jurisdiction."
The renaming of the body of water by Trump has flared tensions between Mexico and the U.S. at a pivotal time for the neighboring allies.
Sheinbaum has had to walk a fine line with Trump amid threats of tariffs and Mexico and other Latin American countries have braced themselves for promised mass deportations, the brunt of which has still not been felt.
Along with the legal threat to Google, the Mexican president also announced Monday that Mexico and the U.S. would hold high-level meetings
this week on trade and security in an effort to maintain a "long-term plan of collaboration" between the two countries. It's the latest round of talks between the two countries in which Mexico hopes to hold off a larger geopolitical crisis.
The renaming of the water body has fueled strife within the U.S. as well.
Last week, the White House barred Associated Press reporters from several events, including some in the Oval Office, saying it was because of the news agency's policy on the name. The AP is using Gulf of Mexico to ensure that names of geographical features are recognizable around the world but also acknowledging Trump's renaming of it as well.
NOTICE
NOTICE is hereby given that JUVY SILVA CUEVAS NUTT of #12 Highland Court, New Providence, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 18th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that ROMAIN CHARLOT of P. O. Box AB-20215, Murphy Town, Abaco, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 11th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that DIEULINDA JOSEPH of Nola Circle, Turtle Drive , New Providence, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 11th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
TRADER Jonathan Mueller works on the floor of the New York Stock Exchange.
Photo:Richard Drew/AP