business@tribunemedia.net
THURSDAY, MARCH 2, 2017
$4.20 Save ‘dying Freeport’ via tax regime repeal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Freeport’s new ‘tax breaks’ regime must be repealed to save a city that “is dying and on its last legs”, a prominent QC urged yesterday. Fred Smith QC, the Callenders & Co attorney and partner, said the Grand Bahama (Port Area) Investment Incentives Act 2016 was merely the latest incident of Freeport being thrown into “economic turmoil” by ill-advised government policy. Slamming the Christie administration’s failure to properly consult with, and inform, Grand Bahama Port Authority (GBPA) licensees on the Act’s implications, Mr Smith called on it to reverse course and simply extend Freeport’s expired tax breaks until 2054 - when the Hawksbill Creek Agreement ends. Confirming that he was likely to take legal action on licensees’ behalf over the new Act, he added that Freeport’s business environment was being “tam-
QC: City in ‘turmoil’ over new incentive process Bahamas academic says Act ‘antiincentive’ in nature Morris tells Govt: ‘Absolutely wrong way to go’ pered” with by persons “who don’t have the foggiest idea” of the city’s reality. The Government yesterday provided some modest relief to the 3,500 GBPA licensees, confirming in writing that the deadline by which they must apply for renewal of their real property tax, capital gains and income tax exemptions has been extended by one month - from March 6 to April 4, 2017. “The Office of the Prime Minister and Ministry for Grand Bahama, in collaboration with the Bahamas Investment Authority, wish to See pg b6
$4.24
Tribune Business Reporter
nmckenzie@tribunemedia.net Bahamian farmers were yesterday blaming a “bad feed batch” from the Gladstone Road Agriculture Centre (GRAC) for recent pig deaths, with one telling Tribune Business he had lost close to 50 pigs and more than $35,000 as a result. The farmer, who spoke to Tribune Business on the condition of anonymity due to victimisation fears, said: “I understand that they had an issue with the feed. At the Government place they lost a bunch of pigs also. “We all got the same feed. I feed pigs down in Exuma. They say the pigs died from sand ingestion. I’ve never heard such foolishness in my life. Those pigs have been living on that cay now for how long. Why would they die from sand ingestion now?” V Alfred Gray, minister of agriculture and marine resources, recently told reporters that Exuma’s
Claims of near 50 deaths, thousands in losses
$4.23
Baha Mar owner silent on 2018 Rosewood open By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Baha Mar’s new owner was last night silent on revelations by the Rosewood hotel brand that the opening for its 200-room resort has seemingly been pushed back to Spring 2018. Rosewood, which is itself owned by prospective Baha Mar purchaser, Chow Tai Fook Enterprises (CTFE), announced its opening date via an official press release published on February 28. “Rosewood Hotels & Resorts has been appointed by the Bahamian subsidiary of Hong Kong-based development company, Chow Tai Fook Enterprises (CTFE), to operate and manage
CTFE’s hotel brand in push back to Spring next year Bran: Shows project ‘still very much up in the air’ FNM deputy fears jobs, taxes delay for Bahamas Baha mar Development Site Rosewood Baha Mar in Nassau, Bahamas, which will open in Spring 2018,” the resort brand’s opening statement said. This indicates that Rosewood’s opening has been pushed back, as the Ba-
hamas Business Outlook presentation in January by Graeme Davis, CTFE’s top Bahamas-based executive, showed both its hotel and the SLS Lux would be completed in time for Baha Mar’s ‘grand opening’ in
November/December 2017. Travel news websites also previously cited this date for Rosewood opening. Robert Sands, Baha Mar’s senior vice-president of government and external See pg b5
Water Corp’s $159m subsidy driven from 2/3 ‘cost recovery’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Farmers suffer in pig wipe-out from ‘bad feed’ By NATARIO McKENZIE
$4.22
Leslie Miller, MP for Tall Pines
The Water & Sewerage Corporation’s revenues cover just two-thirds of its operating expenses because its prices have not been increased for 18 years, costing Bahamian taxpayers $159 million over a five-year period. The Corporation’s 2015 annual report, tabled in the House of Assembly yesterday, reiterated that taxpayer subsidies averaging almost $32 million per year between 2011-2015 were necessary because the See pg b4
Selling water at price 35% below production cost Miller: ‘Drain on taxpayers has to be stopped’ Pension ‘timebomb’; 2015 financials qualified
Agriculture blow from bad Govt food supply Swimming pigs death explanation ‘foolishness’ world-renowned swimming pigs had died from ingesting “sand material”. Mr Gray said that according to a report by the chief veterinary officer attached to his ministry, an autopsy performed on some of the animals revealed the pigs had “a good amount of sand” in their stomachs. More than a half a dozen of the swimming pigs were found dead under mysterious circumstances more than a week ago. The majority of the pigs, believed to be around 15, See pg b7
Bahamas ‘can’t get away without VAT’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Bahamas “couldn’t get away without” implementing Value-Added Tax (VAT), a prominent governance reform campaigner argued yesterday, because the national debt and annual deficits were simply “too high”. Robert Myers, a principal with the Organisation for See pg b4
Deficit and debt ‘too high’ to make it unnecessary Myers: Tax crackdown can ‘negate’ VAT rise need Reiterates call for focus on ‘most efficient’ taxes Why Buy Anywhere Else ?
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THE TRIBUNE
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Click ‘File’ and then ‘Save for Web & Devices’. On the right, make sure that the ‘Transparency’ box is checked and then click ‘Save’. Name the photo, choose a location, and click ‘Save’ again. To make sure that the transparency has worked, click ‘File’ then ‘Open’, and locate the PNG file created.
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Probably every single image file converter that you come across will be able to convert a PNG file to another format (such JPG, PDF, ICO, GIF, BMP, TIF,). There are several options in the Free Image Converter Software Programs list, including some online PNG converters such as FileZigZag and Zamzar. PicSvg is a website that can be used if you want to convert a PNG to SVG (Scalable Vector Graphics). Another option for converting a PNG file is to use one of the image viewers. While they exist mainly as ‘openers’ of various image types, some of them support saving/exporting the open PNG file to a different image format. Until we
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often used to open PNG files because it is included as part of a standard Windows installation, but there are many other ways to view them. All web browsers (such as Chrome, Firefox, Internet Explorer) will automatically view PNG files that are opened from the Internet, which means you do not have to download every PNG file you want to look at online. You can also use the web browser to open PNG files from your computer, by using the Ctrl+O keyboard combination to browse for the file. Here is a little tip. Most browsers also support drag-and-drop, so you might be able to just drag the PNG file into the browser to open it. There are also several standalone file openers, graphic tools and services that open PNG files. A few popular ones include XnView, IrfanView, FastStone Image Viewer, Google Drive, Eye of GNOME, and gThumb. To edit PNG files, the XnView program I just mentioned can be used, as well as the Microsoft Windowsincluded graphics program called Paint, the popular GIMP utility, and the very popular (and very not free)
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THE TRIBUNE
Thursday, March 2, 2017, PAGE 3
Multiple landfill bids under review By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A Cabinet Minister yesterday said his Ministry was reviewing proposals by a Bahamian consortium and other groups in bid to resolve the New Providence landfill’s environmental and health hazards “in the shortest possible time” Kenred Dorsett, minister of the environment and housing, said the Government was keen to find a private sector replacement for Renew Bahamas to take over the landfill’s management, once again relieving itself of the responsibility. Mr Dorsett told Tribune Business: “The Department of Environmental Health Servcies (DEHS) has taken over the landfill
Minister: Bahamian group, others being assessed
temporarily. A number of proposals have come to the Government.” Renew Bahamas walked away from its contract in Hurricane Matthew’s aftermath, after it was unable to generate the necessary income to sustain itself amid a decline in world commodities prices, and a fire that rendered its materials
nmckenzie@tribunemedia.net
New Providence landfill recycling facility inoperable for several months. Tribune Business revealed last week that the 10-strong Waste Resources Development Group (WRDG) has met severaltimes with the Government, which is increasingly eager for a solution to the landfill’s woes ahead of Baha Mar’s April 21 open-
ing. Tribune Business sources indicated that WRDG, whose members include companies such as Wastenot, United Sanitation, BISX-listed Bahamas Waste and Impac, had been asked to come up with a management/ business plan for the See pg b5
Mortgage Relief: Over 50% cut to some repayments By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
A Cabinet Minister yesterday said 441 troubled mortgage borrowers had qualifed to have their loans restructured by February 2017, with six commercial banks participating in the Government’s Mortgage Relief Plan. Speaking in Parliament during the second reading of the Homeowners Protection Bill, Michael Halkitis said: “We found a willingness of the banks to do a lot of restructuring before we even got to this point. “Through the Ministry of Finance we had the challenges of communication, where we were able to communicate with banks as individuals came into us, and in many cases banks were able to do restructuring
One borrower saw 3% pt interest rate slash even before we put in this framework.” Mortgage relief and protection for homeowners were key elements of the Progressive Liberal Party’s (PLP) campaign before the 2012 general election. Mortgage relief was implemented early in its term, but the programme underperformed, leading Prime Minister Perry Christie to admit in 2013 that only four or five homeowners were expected to receive assistance. Mr Halkitis, the minister of state for finance, yesterday said this was due in large part to the significant level of consumer indebted-
By NATARIO McKENZIE
Tribune Business Reporter
DEHS takeover only ‘temporarily’ Govt ‘in position to execute’ on plans for facility
Environmental regulation gets ‘teeth’ from reforms
Minister of state for finance, Michael Halkitis ness that applicants owed to car companies, furniture stores and via salary deductions. He added that the Christie administration was forced to “go back to the drawing board”, with the second version proving more successful.
“As at February 2017 we have six banks participating in the programme and 441 individuals enrolled in the programme,” said Mr Halkitis. “Those are individuals who have either had their loans completely restructured or are in the process of having it restructured. We think that this has been a much more successful programme.” He added: “Due to the Government’s commitment to the programme, banks have been more willing to restructure. We think this has been a much more successful programme.” s Mr Halkitis said one borrower had been able to reduce their monthly mortgage payment from $1,600 to $750, while another saw their interest rate reduced from 8.25 per cent to 5.25 per cent.
Environmental planning and enforcement will soon get “teeth”, a Cabinet Minister said yesterday, through the creation of a Department of Environmental Planning and Protection (DEPP). Kenred Dorsett, minister of the environment and housing, said the proposed DEPP would be an upgrade on the existing Bahamas Environment, Science and Technology Commission (BEST). Speaking at a press conference yesterday, he announced that draft legislation for the establishment of the Ministry of the Environment and the Department of Environmental Planning and Protection have been completed. Mr Dorsett added the proposed legislation, when passed by Parliament and enacted, will ensure there will always be a Minister responsible for the environment and related matters, such as climate change and sustainable development. The DEPP will have overall responsibility for regulating matters related to environmental policy, planning and protection, and will be under the control and management of a director-general, who will assume technical responsibility for its oversight. “The Environmental Planning and Protection Bill 2017 will create the DEPP,” Mr Dorsett said. “The role of the BEST Commission will be integrated into the DEPP. The legislation provides a transparent and clear framework for environmental impact statements, environmental impact assessments, environmental management plans and the issuances of
BEST to become Dept of Environmental Planning certificates of environmental compliance. He added: “The legislation provides for appropriate penalties for infractions. Penalties up to $120,000 or two years of imprisonment, or both. For companies that commit environmental offenses they may be penalized up to $15 million or up to 25 years and imprisonment, or both. “The DEPP will promote environmental awareness to educate the public on environmental matters, climate change and concerns in an effort to promote best practices and protect the environment, social, economic and sustainable development.” Mr Dorsett said the legislation and associated reforms meant the “lines will no longer be blurred” in terms of the boundaries between the Department of Environmental Health Services (DEHS) and the BEST Commission, their responsibilties and where each fits in. “BEST was created in the early 90s and has existed as the advisory arm to the Government, and has really expanded in its remit but has no teeth. It has no legislation to indicate what it can and cannot do. This solves that problem thought the creation of the DEPP,” said Mr Dorsett. BEST has existed purely as an advisory arm of government, without any legislation underpinning its existence, and no enforcement or regulatory power to give it teeth.
PAGE 4, Thursday, March 2, 2017
Water Corp’s $159m subsidy driven from 2/3 ‘cost recovery’ From pg B1 Corporation continues to sell water at prices below production costs. The report showed the gap between prices and costs narrowed in 2015, but with tariffs of $13.06 per 1,000 imperial gallons dwarfed by production costs of $20.05 per gallon, the Corporation was still losing $6.99 per 1,000 imperial gallons produced. This meant that its costs still exceeded prices by almost 35 per cent in the year to end-December 2015. The gap was slightly reduced from the $8.56 per 1,000 gallons sold in 2014 - a year in which tariffs were almost 40 per cent below cost. “Operating losses have
been incurred for well over 10 years, due mainly to a tariff that is below cost recovery levels,” the Water & Sewerage Corporation’s annual report said. “This low tariff, in addition to other operational challenges, has led Water & Sewerage to rely heavily in subsidies, which only partially cover losses. The last tariff increase was in 1999.” The Water & Sewerage Corporation’s practice of selling water ‘below cost’ has effectively resulted in a ‘wealth transfer’ from the taxpayer to its customers, draining $159 million from the Public Treasury at a time when such a sum would represent a substantial saving. Leslie Miller, the Corpo-
ration’s chairman, summed the situation up thus: “This drain on the Government and taxpayers has to be stopped, and while there has been progress, urgent and significant action is required to improve revenues and to continue the reduction in expenses.” Writing in the annual report, the Tall Pines MP added: “It is unfortunate that despite reducing its expenses by about $3 million through its water loss programme and other efficiency improvements, Water & Sewerage Corporation continues to rely heavily on central government to support its operations. “The Government provided nearly $25 million in subsidies in 2015 and, despite this, the Corporation’s comprehensive losses were over $12 million.” Mr Miller then turned to one of his favourite targets, the trade unions, warning the two representing Water & Sewerage Corporation staff that they “must be cognisant of these financial realities as they seek to improve the salaries and benefits of their members”. The Corporation currently operates two staff pension plans, an ongoing defined contribution scheme and a defined ben-
efit plan to which it “suspended funding contributions in 1989”. That closed ‘defined benefit’ scheme has just $20.129 million in assets to meet obligations that totalled $100.815 million at endDecember 2015, creating an $80 million ‘void’ that will eventually have to be filled. With the defined benefit plan representing another ticking ‘pension timebomb’ in the public sector, the Corporation’s 2015 financials said: “Current retirement benefits are funded through direct payments, a portion of which may be reimbursed on a quarterly basis from the pension fund, subject to periodic review.” In other words, the Corporation is financing pension fund contributions directly from its operations, with this costing it a net $4.748 million for the year to end-December 2015. It expected to contribute a further $4.57 million to the defined benefit pension fund in 2016. The Water & Sewerage Corporation’s financials, audited by Baker Tilly Gomez, contained the now almost-customary qualified auditor opinion, and warning, when it comes to public corporations.
Bahamas ‘can’t get away without VAT’ From pg B1 Responsible Governance (ORG), told Tribune Business that he “didn’t agree” with suggestions that VAT would have been unnecessary had the Government cracked down on tax cheats years ago. This argument was advanced on Wednesday by Branville McCartney, the Democratic National Alliance’s (DNA) leader, who said the Government’s own forecast of an extra $400 million in revenues within two years, via its clampdown on tax dodgers, showed there was no need for VAT if it ensured neartotal compliance with all other taxes. Mr Myers, though, said that with fiscal deficits averaging around $500 million
prior to VAT’s January 1, 2015, introduction, and the national debt racing rapidly towards $7 billion, revenue reforms were needed to help arrest the decline. “We couldn’t get away without it. I don’t think we could. We’re too far in. The debt and the deficit are too big,” Mr Myers said in response to the ‘no need for VAT’ argument. However, he added that if the Government enjoyed success with its tax enforcement offensive, this would eliminate the need for it to introduce new or increased taxes, including a rise in the VAT rate. And Mr Myers also reiterated calls for the Government to focus revenueraising efforts on its most efficient taxes, namely
THE TRIBUNE Baker Tilly Gomez noted that the Corporation’s current assets of $11.614 million were exceeded by current liabilities that were more than three times’ higher at $38.039 million. The accounting firm noted that the $26.425 million ‘gap’ between the two had more than doubled from the $12.261 million current ‘solvency deficiency’ that existed the year before. And, in the meantime, the Corporation’s accumulated deficit had increased to $147.049 million at yearend 2015, meaning there was “significant doubt” about its “ability to continue as a going concern” without continued subsidies from the Government and Bahamian taxpayers. Despite the still-gloomy financial picture, the Corporation managed to make some progress in 2015, thanks largely to the $81 million Inter-American Development Bank (IDB) loan financing its publicprivate partnership (PPP) with Miya to reduce nonrevenue water (NRW) losses. The Corporation’s annual report said NRW, which is water supplied but not delivered and billed to customers because it is lost due to system leaks, fell by four
million imperial gallons per day in 2015 compared to the prior year. “NRW decreased from 9.1 million imperial gallons per day in 2012 (56 per cent of water supplied) to five million imperial gallons per day (37 per cent of water supplied) in 2015,” the Corporation’s annual report said. The Corporation’s operating cost recovery also improved in 2015, up to 68 per cent of total expenses in 2015 from 64 per cent the year before, with both a major improvement on the 58 per cent ‘low point’ achieved in 2013. “Tariffs are well below cost recovery levels and, as a result, the reform of the regulatory framework for the water and sewerage sector remains very important,” its annual report said. “An effective regulatory framework will ensure that tariffs are set at a levels that allows recovery of reasonable operating costs while ensuring efficient operations and good customer service.” Moves to transfer the water industry’s regulation to the Utilities Regulation and Competition Authority (URCA) have been in the works for some time.
VAT, as a strategy to ultimately do away with inefficient levies, such as Business License fees and real property taxes. “What it negates is any potential need to put VAT up,” he told Tribune Business of the Government’s tax cheat crackdown. “They don’t have to increase VAT if they get greater compliance with some of the other revenue streams. “That’s the big fear if the Government doesn’t become more efficient, through internal efficiencies or creating greater efficiencies, or cutting some of its staff. It’s then got to figure out how to raise more taxes, either through existing compliance or increasing taxes.” Simon Wilson, the Ministry of Finance’s financial secretary, told a Chamber forum last month that the clampdown had generated an extra $15 million in revenue per month on New Providence alone since its launch. He forecast that the initiative would generate $400 million in extra revenues within two years. “If he’s talking $200 million a year, that’s excellent, but I don’t think it does enough to reduce existing taxes,” Mr Myers said, while adding that compliance and greater system efficiencies would eliminate the need for new or increased taxes. The former Coalition for Responsible Taxation (CRT) head said the Chamber affiliate had suggested to Prime Minister Perry Christie and his government that once VAT’s revenue haul became predict-
able, there was scope for reducing the Government’s less efficient taxes. He explained: “ORG and the CRT also believe it’s quite feasible that we could increase the more efficient taxes and reduce the inefficient ones. “That means because VAT is 95 per cent compliant and efficient, duties and property tax, which are 4050 per cent efficient, could be reduced.” Mr Myers added: “What we said to the Prime Minister was: ‘Let’s understand what VAT brings in and, for example, for every one percentage point in the VAT rate, reduce duties by 10 percentage points. “The 1 percentage point increase in the efficient tax recoups the same amount foregone by a 10 percentage point reduction of an inefficient tax. “The beauty there is that you’re getting more compliance and efficiency out of an efficient tax, and doing away with the inefficient taxes over time.” Mr Myers said the Government would shortly possess two years’ worth of VAT data with which to make an “educated and responsible decision on this issue, advocating that it should consider taxing “based on that concept”. “Focus on the most efficient and compliant ones,” he reiterated to Tribune Business. “Because VAT has the self-policing mechanism, it has good compliance and efficiency.”
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Thursday, March 2, 2017, PAGE 5
Baha Mar owner silent on 2018 Rosewood open From pg B1 affairs, told Tribune Business that Mr Davis was in New York yesterday to meet with Rosewood. Confirming that he was aware of the Rosewood release, Mr Sands asked for this newspaper to submit e-mailed questions to him, which were forwarded to Mr Davis. However, no response was received by Tribune Business before press time last night. The Rosewood media release raises numerous questions, not least of which is whether Baha Mar’s full construction completion date has been pushed back several months, and if this stems from concerns over the pace at which its main contractor, China Construction America (CCA), is moving. CCA’s failure to complete Baha Mar on time, and on budget, was cited as the primary reason why the project’s original developer, Sarkis Izmirlian, was forced to file for Chapter 11 bankruptcy protection - sparking a near two-year legal and restructuring battle that
ultimately led to CTFE becoming the new owner. SLS told Travel Weekly that its Baha Mar-based property was still on track to open in November, and Rosewood’s press release indicates that it has signed a management/operator agreement with its CTFE affiliate to brand the resort. “Rosewood Hotels & Resorts has had a relationship with Baha Mar since 2011, and we are truly excited to re-engage as the operator of Baha Mar’s luxury resort through our partnership with CTFE, Baha Mar Resort’s new owner,” said Sonia Cheng, chief executive of Rosewood Hotel Group. “We are fully committed to this project and look forward to raising our flag in The Bahamas as originally planned.” The opening push back may simply be designed to give Rosewood enough time to ensure that the property meets all its brand specifications, quality and service requirements. However, in the absence of further explanation from CTFE/Baha Mar, the move
ignited renewed speculation and concern that has been ever-present amid the absence of concrete details surrounding the $3.5 billion property’s sale and purchase. Branville McCartney, the Democratic National Alliance’s (DNA) leader, jokingly questioned “what response or gesture the Prime Minister gave to Rosewood upon hearing this”. Striking a more serious tone, the DNA leader said Rosewood’s announcement was simply the latest bout if uncertainty to surround a Baha Mar opening date, given that so many had been missed previously. Mr McCartney said the hotel brand’s release also raised questions around the April 21 ‘soft opening’ for Baha Mar, now just 50 days away, which is supposed to see 1,500 Bahamians employed at its casino and casino hotel, convention centre and convention hotel, and golf course. “We’re still very much up in the air with this Rosewood statement about opening in Spring 2018, which is March/April next year,” Mr McCartney told Tribune Business. “It again begs the question as to there being a
Multiple landfill bids under review From pg B3 landfill, together with the necessary financing, “in an extremely short time”. Mr Dorsett, though, indicated yesterday that WRDG was not the only group the Government may be listening to. He indicated: “We have been in discussions with the Bahamian consortium for the better part of nine months. In the first instance, it was a focus on green waste and, as a result of what has transpired with Renew, they have had discussion on whether or not they can provide some longterm assistance in terms of the overall management. “We’re reviewing matters that they have put before us and looking at their proposals, as well as others who have submitted proposals. For me, my instructions to the Ministry were in the shortest possible time to put this in a structured format, where interested parties can make proper presenta-
tions to the Government for us to be able to reach a conclusion on the matter.” Mr Dorsett told Tribune Business the Government had saved money during the years that Renew Bahamas managed the landfill. “We saved money over the years that Renew was there,” he said. “The monies that were otherwise budgeted for its operations were no longer required. We are in there temporarily, but it is not something that my ministry or the department wants. We believe that the best solution is a private sector solution, but we do have the remediation plan in place which was finalised late last year and approved by Cabinet. The two parallel paths for us are remediation and operation. We are now, in my opinion, in a position to execute and implement those plans.” Graeme Davis, the top Bahamas-based executive for Baha Mar’s new owner, Chow Tai Fook Enterpris-
Kenred Dorsett es (CTFE), recently went public with his concerns over the landfill. “It’s a huge concern for us, as it is for many businesses and persons,” Mr Davis said of the landfill on ‘The Revolution’ radio show. “The last thing we want is a toxic plume of smoke coming over the golf course on the day we open. “We’ve already encouraged and spoken to the existing government that they need to address it, and they’ve made a commitment to address it. We’re all concerned, and want to make sure it is addressed and goes away.”
soft opening, given that the ownership aspect has not been determined, the construction is not completed and there being no marketing.” CTFE, which has signed an agreement to purchase Baha Mar from its secured creditor, the China ExportImport Bank, will not close the acquisition until CCA has completed construction of the property - a sensible move on its part, given the history with the project’s contractor. Mr McCartney, though, said the Rosewood announcement again showed that the April 21 ‘soft opening’ was nothing more than a ‘thank you’ to the Christie administration for helping the Chinese to get rid of Mr Izmirlian by boosting its reelection chances. “It goes back to the facade of this opening on
April 21,” the DNA leader said. “It is what it is: A facade, a political tool being used by the desperate PLP. There are jobs, but no significant impact to the economy.” K P Turnquest, the FNM’s deputy leader, described the Rosewood statement as “unfortunate news”, but said Baha Mar’s full economic impact had not been projected to come through until 2018 anyway. He added, though, that the delayed opening meant delayed opportunities for Bahamians, adding: “It’s disappointing that it’s not all going to be open at the projected date.” Mr Turnquest said the Rosewood situation would also delay tax revenue benefits for the Government at a time when it needed every cent possible, given the $314.2 million half-year
deficit. Rosewood’s Baha Mar property will feature 185 rooms and five beachfront villas. The amenities will include four signature dining venues, including Commonwealth, a farm-to-table restaurant that will include a private Rum Room for exclusive, island-style dinners. The other options are the Pool Grille; Bar Riva; and the Library Lounge, the latter of which will feature Bahamian-style afternoon tea and unique tea cocktails. Recreational facilities will include a spa, salon, barber shop, fitness centre, two private swimming pools and luxury cabanas. Eight meeting and event spaces include a 4,950 square foot ballroom, boardrooms, private dining room and two al fresco event areas.
PAGE 6, Thursday, March 2, 2017
Save ‘dying Freeport’ via tax regime repeal From pg B1 advise that the date for submission of applications has been extended to 4 April, 2017,” a Government notice stated, referring to the Grand Bahama (Port Area) Investment Incentives (Extension of Time for Applications) Order 2017. The Government, though, has yet to answer numerous private sector concerns and questions over the Act and its accompanying regulations, meaning that uncertainty and confusion continue to cloud Freeport’s business climate. “Once again, Freeport has been thrown into economic turmoil and confusion by the central government in Nassau,” Mr Smith told Tribune Business, “which failed to properly consult with licensees or resident owners, foreign and Bahamian, who will be affected. “I continue to urge both the PLP and FNM to appreciate that the Freeport business model is an artificial construct, and tinkering
and tampering by people who don’t have the foggiest idea of Freeport’s economic reality, continues to hurt and prejudice the Freeport business community.” Mr Smith said business and investment typically flourishes in an environment where ‘the rules of the game’, namely taxation and regulation, were simple and predictable. Arguing that the Act and its regulations, especially the ‘incentives renewal’ application form, took the city’s economy in the opposite direction, Mr Smith said: “Freeport is dying, and has been on its last legs for some time. “The Grand Bahama (Port Area) Investment Incentives Act needs to be repealed. A sensible Government simply needs to extend all the tax benefits until 2054, so the business regime in Freeport is simple and predictable for the long-term.” Mr Smith confirmed that he was “currently reviewing” the Act with a view
FRED Smith QC to initiating legal action on behalf of GBPA licensees, especially over its ‘discriminatory’ nature and the 20year ‘blanket’ tax break renewal granted to the GBPA and Hutchison Whampoa. He described the latter’s preferential treatment as “a slap in the face” to all other licensees, and added: “It continues to baffle me how the bureaucrats and politicians in Nassau continue to pretend licensees don’t matter.” Mr Smith’s position yesterday received support from Dr Gilbert Morris, the academic who was prominent in Bahamian affairs a decade ago, and still maintains close contact with this nation’s intellectual circles. Dr Morris, writing on his
Facebook page, said that while the Christie administration has a “true, noble desire” to facilitate Freeport’s economic growth, the new Act was “absolutely the wrong way to go”. Describing the Hawksbill Creek Agreement as the “finest development agreement in the world”, Dr Morris cited three reasons why the Government’s approach was wrong, including the Act’s “anti-incentive” nature. “Everywhere in the world where economies are growing, governments are eliminating red-tape,” he wrote. “In this case, the very people who are disadvantaged by the economic doldrums in Freeport, are hit again by a regressive, over-burdening anti-competitive approach - even if well-meaning - infused with many confusions, thus limiting options for operations and investments for existing licensee businesses.” Dr Morris added that the extra cost, time and bureaucracy associated with GBPA licensees now having to apply to Nassau for key tax breaks, and the uncertainty over whether they will be granted, “also makes investing in the Port area less attractive”. From a legal perspective, Dr Morris added that the
THE TRIBUNE Act was “wrong in constitutional terms” because the devolution of investment incentives under the Hawksbill Creek Agreement was intended not for the GBPA’s benefit, but to enable it to “empower” licensees. He also pointed to the ‘discriminatory’ provisions in the Act, an issue already raised by Mr Smith, which potentially allow the Investments Board and the responsible minister to grant the tax incentives to one licensee but not another. “On the other hand, for any minister of government to make a distinction between licensee applicants for the tax benefits would require so much bureaucratic engagement, not to mention time, as to destroy any possible or conceivable actual incentive,” Dr Morris wrote. Chief among the key unanswered question is whether the Act ‘locks in’ all licensees to maintaining existing staffing levels for five years in return for renewal of these incentives. The Act suggests that companies which fail to meet this obligation face financial penalties, including the loss of some or all of their ‘tax breaks’, and the possibility that the Government may seek to ‘claw back’ these foregone taxes retroactively. He added that the Act was also “inconsistent with both the letter and spirit” of the Hawksbill Creek Agreement, and concluded: “I appeal to the Government to
withdrawal this initiative absolutely and completely.” Dr Morris’s intervention will further increase the growing pressure on the Government to reverse course in its bid to exert greater control over Freeport’s investment incentives regime. Mr Smith said a combination of the 2004 and 2016 hurricanes, resort closures, ill-considered government policies, global economic forces and the previous infighting at the Port Authority had undermined Freeport’s economy. Alluding to the impact on specific industries, he added: “I know that in the legal fraternity, conveyancing, corporate and other transactional work is almost non-existent. Were it not for litigation, some firms would no longer even be operating. “I also note that the real estate agents are suffering, the architects are suffering, the engineers are suffering, and the surveyors are suffering. Everything to do with foreign direct investment (FDI) is suffering.” Mr Smith said the Memories closure had left hundreds of Bahamians unemployed, and added: “People are living in cars, people don’t have electricity and water, no cable for entertainment. People don’t have money for the fundamentals. The economy is really hurting in Grand Bahama.”
CHAUFFEURS NEEDED
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THE TRIBUNE
Thursday, March 2, 2017, PAGE 7
Trump idea to expand health care competition faces hurdles SACRAMENTO, Calif. (AP) — Allowing insurers to market health care policies across state lines is one of President Donald Trump’s main ideas for bringing down costs. While supporters of the idea cast it as a way to make insurance policies more competitive, critics say it’s unlikely to result in more affordable plans and could undermine stronger consumer protections in states such as California and Hawaii. Such a “race to the bottom” could leave some older consumers with health problems unable to afford coverage. And there’s another complication: Trump’s proposal appears unlikely to pass Congress unless Democrats cooperate. Congressional
aides involved with health care legislation say the proposal to allow cross-state insurance sales would need 60 votes in the Senate. In his speech to Congress on Tuesday night, Trump said the nation must turn to new ideas to help control costs. “The time has come to give Americans the freedom to purchase health insurance across state lines,” the president said. The estimated 20 million Americans who buy coverage directly from an insurer would be affected. Their health plans are regulated by state governments, which decide the minimum benefits that must be covered and mediate disputes between insurers and their custom-
ers, among other consumer protections. Variation between the states was extreme until former President Barack Obama’s Affordable Care Act, which raised the minimum standards for legal coverage nationwide. One of the sharpest differences was coverage for maternity care. Mandy Burke of San Leandro, California, who is pregnant with a girl due in May, doesn’t want to go back to a time when it might be more difficult or more expensive to find coverage for pregnancy care. The costs for repeated prenatal visits, ultrasounds, blood tests and a hospitalization for delivery are insane, said Burke, a 39-year-
old musician and music teacher who has subsidized health coverage through California’s insurance exchange. “That was something we had to check out — can we even afford to be pregnant,” she said. Trump and congressional leaders have vowed to repeal the law and replace it, although the details of their plans remain in flux. The Trump proposal
on cross-state sales would “eviscerate the ability of state legislatures and state governors to decide what the appropriate consumer protections are for their state’s consumers and businesses,” said Dave Jones, a Democrat who regulates some of California’s health plans as the elected insurance commissioner. The concept of cross-state sales has been around for at
least 10 years, but experts say there is a good reason why it hasn’t advanced: It might not deliver as promised. “Premiums really reflect the cost of care where an individual lives,” said Barbara Klever of the American Academy of Actuaries, a professional group that represents experts who advise on health care and pension programs.
enrollment counselor Vue Yang, left, goes over some of the plans available through the state health insurance exchange with Laura San Nicolas, center, accompanied by her daughter, Geena, while enrolling for health insurance at Sacramento Covered in Sacramento, Calif. Allowing insurers to market health care policies across state lines is one of President Donald Trump's main ideas for bringing down costs. While supporters of the idea cast it as a way to make insurance policies more competitive, critics say it's unlikely to result in more affordable plans and could undermine stronger consumer protections in states such as California and Hawaii. (AP Photo)
Farmers suffer in pig wipe-out from ‘bad feed’ From pg B1 are still alive. No link between the GRAC’s “bad feed batch” and the swimming pigs’ deaths has been proven or stated, with no evidence yet available to draw such a connection. However, multiple Tribune Business sources in the agriculture industry yesterday dismissed the ‘ingested sand’ explanation. The farmer reiterated to Tribune Business of the GRAC: “They had a bad batch of feed. It was just a bad batch where they left the feed on the dock too long and the corn spoiled. “That stuff has a shelf life. I’ve probably lost 47 grown pigs from this, and we had a lot of stillborns. I’m looking at well over $35,000. One of the boars, one of my top boars I lost, was over 500 pounds. You really can’t even put a value on a pig like that.” Other Tribune Business sources, also speaking on condition of anonymity, suggested that the livestock feed ingredients had been left on the dock too long, which resulted in them “going bad” and “toxins” developing. This newspaper was told that the GRAC had lost
around 40 adult pigs and sucklings to the “bad feed batch” and, when these losses were added to those incurred by private farmers, “several hundreds pigs” have died as a result over the past six to eight weeks - potentially crippling a significant segment of Bahamian agriculture. Attempts to obtain a comment on the matter
from the Bahamas Agricultural and Industrial Corporation (BAIC) were unsuccessful up to press time yesterday. However, Tribune Business understands that the Bahamas Agriculture and Marine Science Institute (BAMSI) is taking over the management of the GRAC, which supplies the feed. BAMSI, Tribune Business has been informed, has brought in an animal nutrition specialist to oversee the GRAC.
NOTICE
NOTICE is hereby given that Jiraneau Brutus of Drummy Villa, Treasure Cay, 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 23rd day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
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PAGE 10, Thursday, March 2, 2017
THE TRIBUNE
Snapchat parent passes big test: IPO above expectation
NEW YORK (AP) — Snapchat parent Snap Inc. started its official bid to go public last Halloween. Now investors get to learn whether they’re in for a trick or a treat. Snap passed its first major test on Wall Street on Wednesday, when the company priced its initial public offering of 200 million nonvoting shares at $17 each. That’s above the expected range of $14 to $16. Snap is expected to start trading on the New York Stock Exchange on Thursday under the symbol “SNAP.” Snap’s IPO is one of the most anticipated for a technology company since Twitter’s stock market debut in 2013. That, in turn, had created the biggest stir since Facebook took its first bow on Wall Street in 2012. Twitter is now valued at $11 billion, while Facebook is $395 billion. Snap’s pricing values the Los Angeles company at $24 billion.
People pass by the New York Stock Exchange yesterday after the banner for the Snap Inc. IPO was raised on the building's facade. Snap Inc. is expected to start trading on the New York Stock Exchange on Thursday under the symbol "SNAP." (AP Photo)
PROSPECTS FOR SNAP Snap’s Snapchat app is best known for disappearing messages and quirky facial filters for jazzing up selfies. It’s popular with teenagers and younger millennials. While Facebook launched in the era of desktop computers and Twitter in text-based mobile, Snapchat jumped straight to photos and videos. In a sense, it’s ahead of the game. But its user growth has slowed down in recent months. Blame Facebook. Growth slowed to a crawl since Facebook’s Instagram cloned Snapchat’s “stories” in August. With the feature, pho-
tos and videos shared by users play in a loop for 24 hours, then disappear. The feature helped Snapchat recover from stagnant growth before, but now it’s no longer unique to Snapchat. After adding 36 million daily active users during the first half of last year, Snapchat picked up just 15 million in the second half. The number of people downloading Instagram’s app has been accelerating during the past six months, suggesting a gradual shift away from the Snapchat app, based on an analysis financial advice site ValuePenguin did of activity in Apple’s app store. While the higher-than-
expected pricing looks good for Snap, its troubles aren’t over. “What that number means for the longer term — very little,” said Chi-Hua Chien, managing partner at Goodwater Capital who originated the VC firm Accel Partners’ investment in Facebook and later invested in Twitter while at another firm. Twitter, for example, shot up nearly 73 percent on its first trading day and now trades well below its IPO price. Facebook, meanwhile, saw its stock decline sharply for a few months after going public. Now, it’s trading more than three times its IPO price, near a
The Public is hereby advised that I, CAMILLE DIANE GOMEZ of #9 Brooklyn Road, Nassau, Bahamas, intend to change my name to CAMILLE DIANE DARVILLE GOMEZ. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
TIME IS LIMITED Snapchat started 2017 with 158 million daily active users, most of whom are people in their teens, 20s and early 30s. But many of them are finding Snapchat harder to fit in with daily life. Evan Rodriguez, a 20year old student at Abilene Christian University in Texas, used to send snaps of funny stuff he saw throughout the day, just as his friends did. For instance, he might take video of a friend walking across campus and send it via Snapchat — “Hey, I see you!”
NOTICE
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
record high.
NOTICE is hereby given that Adelrose NelsoNBrutus of Drummy Villa, Treasure Cay, 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 twentyeight days from the 23rd day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
MARKET REPORT WEDNESDAY, 1 MARCH 2017
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,915.26 | CHG -0.02 | %CHG 0.00 | YTD -22.95 | YTD% -1.18 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 17.43 9.09 3.56 4.70 0.12 7.20 8.50 6.10 10.60 15.27 2.72 1.60 5.83 9.75 11.00 9.25 6.90 12.01 11.00
52WK LOW 2.70 17.43 8.19 3.50 1.77 0.12 3.80 8.15 5.50 7.72 11.00 2.18 1.31 5.80 6.78 8.56 6.60 6.35 11.92 10.00
1000.00 1000.00 1000.00 1000.00
900.00 1000.00 1000.00 1000.00
PREFERENCE SHARES
1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01
1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00 100.00
52WK LOW 100.00 100.00 100.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +
SYMBOL FBB17 FBB18 FBB22
Bahamas Note 6.95 (2029) BGS: 2014-12-3Y BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
MUTUAL FUNDS 52WK HI 2.03 3.92 1.94 169.70 141.76 1.47 1.67 1.57 1.10 6.96 8.50 6.30 9.94 11.21 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57
LAST CLOSE 4.38 15.85 9.09 3.54 1.77 0.12 4.50 8.50 5.83 10.48 11.86 2.10 1.55 5.83 9.75 10.95 9.25 6.90 12.01 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 105.22 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CLOSE 4.38 15.85 9.09 3.54 1.77 0.12 4.50 8.50 5.83 10.48 11.86 2.07 1.55 5.83 9.75 10.95 9.25 6.90 12.01 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSE 100.00 100.00 100.00
CHANGE 0.00 0.00 0.00
105.03 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund
VOLUME
VOLUME
NAV 2.03 3.92 1.94 168.44 141.76 1.47 1.64 1.56 1.04 6.96 8.50 6.30 9.80 11.13 9.63
EPS$ 0.029 1.002 -0.144 0.170 -0.130 0.000 -0.030 0.607 0.430 0.450 0.110 0.102 0.080 0.300 0.520 0.960 0.820 0.294 0.610 0.000
DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.090 0.300 0.220 0.360 0.490 0.060 0.060 0.240 0.400 0.000 0.330 0.140 0.640 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
P/E 151.0 15.8 N/M 20.8 N/M N/M -150.0 14.0 13.6 23.3 107.8 20.3 19.4 19.4 18.8 11.4 11.3 23.5 19.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST 7.00% 6.00% Prime + 1.75%
MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022
6.95% 4.00% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
YTD% 12 MTH% 4.30% 4.30% 3.82% 3.82% 2.73% 2.73% 3.95% 3.95% 6.77% 6.77% 0.40% 4.04% -1.76% 1.06% -0.34% 2.70% -0.95% 1.55% 4.35% 4.69% 4.13% 4.28% 4.22% 4.64% 6.19% 3.43% 2.77% 2.98% -3.66% -3.90%
NAV Date 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Dec-2016 31-Jan-2017 31-Jan-2017 31-Jan-2017 31-Jan-2017 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD 1.83% 6.31% 0.00% 5.93% 0.00% 0.00% 2.00% 3.53% 3.77% 3.44% 4.13% 2.90% 3.87% 4.12% 4.10% 0.00% 3.57% 2.03% 5.33% 0.00%
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
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But something about the whole thing “just became cumbersome,” Rodriguez said. “It was like one more thing to do.” Celia Schlekewey, a 20-year-old University of Washington student who also works at a small business, liked the fact that when she first joined, it was “all just about sending pictures to your friends.” Over time, the stories feature became a “big deal,” and keeping up with friends and famous people became time-consuming. “It got to the point that if I wanted to keep up with everyone’s story, I’d have to sit on my phone and watch it for 25 minutes,” she said. Easing this feeling of pressure will be key for Snapchat, especially if it wants to attract older users. They might not have as much time — or might not feel like spending that time on social media — as their young millennial counterparts. SNAPCHAT’S IDENTITY Since Snapchat was never about typing, the phone’s camera is already its main focus. In fact, CEO Evan Spiegel has taken to calling it a “camera company,” and this is how the company describes itself in its IPO documents. That doesn’t necessarily just mean that Snap wants to make cameras, though last year it launched Spec-
tacles, actual physical sunglasses that snap photos for you. Snapchat is more about image-based communication, said Chien of Goodwater Capital. Open the app, and you open a camera. Turn the camera to selfie mode, and you get a bunch of filters to overlay on your face. Because the images you send eventually disappear, there’s less pressure to put forward your best self. Snapchat has often drawn comparisons to both Twitter, which also faces stagnant growth, and Facebook, whose users are highly engaged, just like Snapchat’s. Ultimately, Snap doesn’t have to be like either to succeed and can forge its own path and identity. LaVon Murphy, 45, a photographer in Portland, Oregon, uses Facebook to keep up with friends, Instagram to express herself through pictures and Twitter to keep up with the news. She added Snapchat recently to stay in touch with her 17-yearold son. “I don’t really understand why he and his friends use the app so extensively, but I am trying to keep up,” she said. “It allows me to be silly and show a silly side of myself to my son and it allows him to be silly with me.” Snap just needs millions more like Murphy willing to make time for yet another social network.
NOTICE
NOTICE is hereby given that KENOL NELFORT ETDALBERIS of Joe Farrington Road, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 23rd day of February, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
THE TRIBUNE
Thursday, March 2, 2017, PAGE 11
Lured by deals, car buyers go for SUVs, pickups in February DETROIT (AP) — Lured by Presidents Day deals, U.S. buyers snapped up pickups and SUVs in February, brightening what is usually a lackluster month for the auto industry. Overall sales of new vehicles fell 1 percent from last February to 1.3 million, according to Autodata Corp. But automakers made up the difference with strong sales of more profitable SUV and trucks. Sales of the Chevrolet Silverado pickup jumped 17 percent to more than 50,500 trucks. Ford sold nearly 69,000 SUVs — a February record. Nissan said sales of its Rogue SUV were up 54 percent. General Motors and Nissan both saw 4 percent sales gains over last February. Volkswagen’s sales were up 13 percent and Honda’s sales were up 2 percent. But those gains were offset by declines at other automakers. Fiat Chrysler’s sales fell 10 percent, hurt by declining sales of Jeeps. Toyota’s sales dropped 7 percent. Ford’s sales fell 4 percent. Hyundai’s sales were flat. Good deals reeled in buyers. Ford was offering $15,000 off on a 2016 Focus electric, while GM was offering zero-percent financing and up to $10,000 off certain GMC Sierra and Chevrolet Silverado pickups, according to car shopping site Autotrader.com. Buyers could get $5,000 off a Nissan Altima sedan. Incentives per vehicle rose an estimated 13.5 per-
cent to $3,443 last month, according to automotive forecasting firm ALG. GM was the biggest spender, at $4,547 per vehicle. Subaru spent the least, at $896 per vehicle, but Subaru’s spending was up 61 percent over last February. There were several reasons for the flurry of deals. After a seven-year stretch of sales increases — and record U.S. sales in 2016 — demand is starting to slow. Automakers want to hold on to their share of that market and avoid expensive cutbacks in auto production. “It is taking more effort and more money to move the metal this year than last,” said Michelle Krebs, a senior analyst with Autotrader. Automakers are also spending more because vehicles cost more. Consumers are rapidly shifting out of cars and into SUVs and trucks, which cost more money. Kelley Blue Book said the price people paid for a vehicle last month was up 2 percent from last February to an average of $34,352. Ford’s U.S. sales chief Mark LaNeve said cars made up 53 percent of new vehicle sales in 2010. In February, they were around 35 percent. “It is structural and in some ways breathtaking,” LaNeve said. “There’s going to be a car market, but where it eventually gets to, we don’t know.” The deals will likely continue in the coming months,
says Alec Gutierrez, a senior market analyst with the car shopping site KBB. com. The industry has an 80-day supply of vehicles it needs to sell, which is about 20 days more than the level considered ideal. Even if automakers cut production, the deals will ramp down slowly, because automakers lose buyers if they pull back too much.
Automakers said:
— Fiat Chrysler’s sales fell 10 percent to 168,326. Alfa Romeo and Ram sales were up, but Jeep, Chrysler, Dodge and Fiat sales all saw double-digit percentage declines. Jeep should bounce back once the brand launches a new Compass small SUV later this spring. — Nissan Motor Co.’s
sales rose 4 percent to 135,740. Nissan’s truck and SUV sales were up 21.5 percent, but the company also got a boost from its Infiniti luxury brand, which saw sales spike 32.5 percent as the new Q60 sedan went on sale. — Honda Motor Co.’s sales rose 2 percent to 121,686. Honda’s sales
of trucks and SUVs jumped 15 percent, but Acura luxury sales fell by the same amount. — Hyundai Motor Co.’s sales were flat at 53,020. Sales of the Santa Fe SUV jumped 58.5 percent as the newly updated Santa Fe Sport hit the market, but Hyundai’s car sales fell 10 percent.
— General Motors Co. said its sales rose 4 percent to 237,388. Cadillac and Buick brand sales were down, but Chevrolet and GMC saw increases on strong demand for trucks, SUVs and commercial vans. GM sold 952 Chevrolet Bolts, its new all-electric car. — Ford Motor Co.’s sales fell 4 percent to 208,440. Ford’s car sales plummeted 24 percent, but its best-seller, the F-Series pickup, saw a 9-percent sales gain. Ford brand sales dropped 4.5 percent while Lincoln sales were up 9 percent. — Toyota Motor Corp.’s sales dropped 7 percent to 174,339. Toyota’s SUV sales were strong, with the Highlander midsize SUV up 28 percent. But its fullsize pickup and car sales were down. Lexus sales also dropped 21 percent.
EMPLOYMENT OPPORTUNITY
Restaurant Managers
A food service industry leader is seeking to employ experienced managers for its restaurants. The successful candidates must possess effective leadership skills and will be expected to work closely with the Restaurant Manager in managing the overall restaurant operations. The individuals should have a solid understanding of the food and beverage industry and possess a minimum of 3 to 5 years experience in the related field with a proven track record of exceptional customer service. Primary Duties and Responsibilities: • Ensures the company’s customer service excellence standards are exemplified consistently and that all team members are held accountable to same • Facilitate a high level of customer satisfaction by obtaining regular customer feedback • Identifies and resolves “bottlenecks” in food preparation and delivery to increase speed of service without sacrificing accuracy of orders • Ability to maintain a safe, clean and high quality restaurant operation at all times • Supervises and trains team members on all restaurant systems • Ability to effectively communicate, both orally and in writing, on a consistent basis with Restaurant Management team, superiors and support staff • Practical knowledge of inventory control management • Ability to coach, train and develop team members as well as delegate work in a way that encourages teamwork during shift to ensure smooth restaurant operations • Proven ability in handling of customer complaints, ensuring speedy and satisfactory resolution • Ensures the awareness and knowledge of all of the company’s systems, policies, procedures and operations through training and development • Provides productive direction to team members in a clear and concise way, and sets an example for team members by working hard to ensure swift and smooth food production and quality service • Sets challenging goals for self and team, provides timely performance feedback and ensures accountability Qualifications and Experience • Minimum of three to five years experience in the food and beverage and hospitality industries in a managerial or supervisory role • Working knowledge of computerized information systems used in restaurant operations, e.g. Point of Sales (POS) systems • Proficiency in various software applications, e.g. Microsoft Word, Excel, PowerPoint Salary will be commensurate with qualifications and experience. Interested candidates should submit their resumes in confidence to the following email address:
submityourform@gmail.com
PAGE 12, Thursday, March 2, 2017
THE TRIBUNE
Record highs for US stocks; Dow crosses 21,000-point mark AP Business Writer – Investors bet big on U.S. stocks Wednesday, giving the market its biggest single-day gain in nearly four months and pushing the major indexes to record highs. The Dow Jones industrial average rose above 21,000 points for the first time in what was the biggest gain for the blue-chip index so far this year. Banks were the biggest gainers amid heightened expectations that an improving economy will lead to higher interest rates. Energy stocks also notched big gains. Utilities and real estate stocks lagged. The dollar strengthened against the yen and euro and other major currencies. Bond prices fell, as did the price of crude oil and gold. Optimism over corporate tax cuts, deregulation and other business-friendly policy proposals reiterated by President Donald Trump during a speech before Congress helped fuel the rally. Growing speculation that the Federal Reserve may soon elect to raise interest rates again also helped put traders in a buying mood. “We’re seeing a strong risk-on rally in the face of rising expectations of Fed action as early as March based on a belief there will be a pro-growth agenda that gets enacted,” said Bill Northey, chief investment officer of the Private Client Group at U.S. Bank. “It’s been what I would characterize as a bit of market euphoria on the back of the president’s address to the joint session of Congress last night.”
The Dow jumped 303.31 points, or 1.5 percent, to 21,115.55. At one point, the 30-company average was up more than 356 points. The Dow hadn’t been up more than 300 points in one day since November. The Standard & Poor’s 500 index gained 32.32 points, or 1.4 percent, to 2,395.96. That’s the biggest single-day gain for the index, the benchmark favored by professional investors, since early November. The Nasdaq composite index added 78.59 points, or 1.4 percent, to 5,904.03. Small-company stocks continued to outpace the rest of the market, a bullish signal on the economy. The Russell 2000 index rose 26.95 points, or 1.9 percent, to 1,413.64. All four indexes closed at new all-time highs. Each had set new highs last month. Bond prices fell and yields rose after a key Federal Reserve official, New York Fed President William Dudley, said the case for raising interest rates had gotten stronger. The 10year Treasury yield rose to 2.46 percent from 2.40 percent late Tuesday. Strong gains in major global stock indexes overnight and into early Wednesday hinted at the possibility of another milestone day for Wall Street. Better-than-expected company earnings and outlooks from Lowe’s, Big 5 Sporting Goods and other companies also helped give the market a boost. But it is the prospect of more profitable days ahead for Corporate America that
encouraged investors to pile into stocks. On Tuesday night, Trump struck a less confrontational tone than usual and steered away from dramatically negative descriptions of the state of the U.S. economy. Trump also reaffirmed his pledges to reform taxes, slash red tape and ramp up spending on defense and infrastructure projects, though his remarks offered few new policy specifics. The proposed reforms have helped send U.S. stock benchmarks to record highs in the weeks since the election in November. “The market has shifted from being worried about lower growth for longer, to expecting more growth sooner rather than later,” said Chris Zaccarelli, chief
investment officer for Cornerstone Financial Partners. Financials led all other sectors in the S&P 500, climbing 2.8 percent. The sector is up 8.1 percent this year. JPMorgan Chase climbed $2.98, or 3.3 percent, to $93.60. Goldman Sachs rose $4.65, or 1.9 percent, to $252.71. Traders bid up shares in several companies that reported strong quarterly results or outlooks. Lowe’s climbed $7.08, or 9.5 percent, to $81.45, while Big 5 Sporting Goods gained $1.75, or 13 percent, to $15.20. Builders FirstSource, a maker of building materials, jumped 12.4 percent, getting a boost from rising lumber prices. The stock
gained $1.60 to $14.54. Babcock & Wilcox Enterprises was among the biggest laggards. The energy sector supply company sank 37.4 percent after its latest quarterly report card and guidance fell short of financial analysts’ expectations. The stock lost $6.17 to $10.33. Etsy slumped 11.8 percent after the online crafts marketplace issued guidance that fell short of Wall Street’s expectations. The stock shed $1.43 to $10.69. Markets overseas posted solid gains. In Europe, Germany’s DAX rose 2 percent, while France’s CAC 40 gained 2.1 percent. Britain’s FTSE 100 picked up 1.6 percent. Earlier in Asia, Japan’s benchmark Nikkei 225 gained 1.4
percent and Hong Kong’s Hang Seng added 0.2 percent. U.S. crude fell 18 cents to $53.83 a barrel in New York. Brent crude, used to price international oils, lost 15 cents to close at $56.36 a barrel in London. Wholesale gasoline shed 5 cents, or 3 percent, to close at $1.68 a gallon, while heating oil slid 2 cents to $1.62 a gallon. Natural gas rose 3 cents to close at $2.80 per 1,000 cubic feet. The dollar rose to 113.71 yen from 112.17 yen. The euro slipped to $1.0544 from $1.0597. The price of gold fell $3.90 to $1,250 an ounce. Silver added 2 cents to $18.44 an ounce. Copper rose 2 cents to $2.73 a pound.
THE TRIBUNE
Thursday, March 2, 2017, PAGE 15
Trump speech leaves GOP encouraged, but still divided WASHINGTON (AP) — President Donald Trump’s first speech to Congress left Republicans encouraged and enthusiastic Wednesday, yet still confronting thorny divisions on health care, taxes and more. Trump’s disciplined and optimistic tone was what GOP lawmakers wanted to hear after a rocky first month that provoked daily anxiety on Capitol Hill with each new presidential tweet. Republicans welcomed Trump’s presentation and his call for “a new chapter of American greatness.” “It’s just one speech, but I think what we see is a guy who comes from outside the political process now weaving his way through into becoming an effective leader,” said Sen. David Perdue, R-Ga. Vice President Mike Pence said on MSNBC Wednesday morning that Trump showed Congress and the nation his “broad shoulders, big heart, reaching out, focusing on the future.” And House Speaker Paul Ryan declared the speech a “home run.” Yet even though Trump offered some specifics on health care and appeared to embrace a key element of a leadership-backed plan emerging in the House, his comments did little to settle an extremely difficult de-
bate over Republicans’ top legislative priority. Indeed, a day after the president called for “unity and strength,” Republicans looked as divided as ever as they try to make good on seven years of promises to repeal and replace former President Barack Obama’s health care law. Most said Trump’s speech hadn’t changed that or brought them much closer together. “I don’t know that that was his intent,” said Sen. Bob Corker, R-Tenn. “But I mean he gave the kind of guidelines that I think most presidents give on issues like this and it’s up to us.” As Republicans cheered and Democrats sat silently Tuesday night, Trump declared: “We should help Americans purchase their own coverage, through the use of tax credits and expanded health savings accounts — but it must be the plan they want, not the plan forced on them by the government.” Those were comments House GOP leaders interpreted as an embrace of their plan to replace the Affordable Care Act with a new system built around refundable tax credits. But conservatives who’ve been rebelling against that plan, denouncing the credits as a costly new entitlement, disagreed. And they showed few signs of backing down, although Rep. Mark
President Donald Trump addresses a joint session of Congress on Capitol Hill in Washington, yesterday. Vice President Mike Pence and House Speaker Paul Ryan of Wis. listen. (AP Photo)
“We do have some problems with two or three people on our side that make it so if this becomes a partisan vote we won’t have the votes” Walker, R-N.C., leader of a large group of House conservatives, conceded Wednesday that the refundable tax credits likely will be included in the GOP leadership plan, adding he would try to limit the cost of those credits. GOP Sen. Ted Cruz of Texas, who has joined Sens. Mike Lee of Utah and Rand Paul of Kentucky in declaring their opposition to the legislation emerging in the House, accused the media of “bending over backwards” to interpret Trump’s remark as a specific legislative proposal. Cruz insisted that Congress should begin by passing legislation that simply repeals Obamacare like a bill Obama vetoed in early 2016. “That should be on the (Senate) floor. And from there we should build up, and we should focus on areas of consensus,” Cruz said. “We should not focus
on ideas that divide us and pull us apart.” The stance adopted by Cruz, Lee and Paul provoked familiar backbiting from other Republican senators who fear that the rebels could block action given the GOP has few votes to spare with a slim 52-48 majority in the Senate. “We do have some problems with two or three people on our side that make it so if this becomes a partisan vote we won’t have the votes,” said Sen. Orrin Hatch, R-Utah. “So yeah, it’s a problem, it’s a big problem.” Amid the divisions, Trump lunched with top House and Senate GOP leaders, where the group discussed working more closely together on their joint goals, according to the No. 2 Senate Republican, John Cornyn of Texas. “I think you’re going to see
a lot greater coordination, much better communication, because I think that’s the key to our success,” Cornyn said. GOP senators met with two leading authors of the House health care proposal and participants said talks among Republicans would continue, suggesting that differences remained. Cruz called the meeting “robust” and added, “I think the discussions will continue for some time.” Trump’s comments on another massive legislative priority, overhauling the loophole-ridden tax code, also did not appear to move the needle. A vague overture on immigration was welcomed by some, yet with no details provided its future was cloudy. The
president repeated his call for a $1 trillion infrastructure bill, but that could provoke a confrontation with deficit hawks and is on the back burner on Capitol Hill anyway given the enormous legislative lifts on health care and taxes that loom first. And Trump’s failure to say anything about Medicare and Social Security, the massive entitlements that are eating up the budget, left some Republicans complaining that he was ducking political reality. “The president has a saying, ‘All talk, no action.’ His budget is all talk and no action when it comes to longterm indebtedness,” Sen. Lindsey Graham, R-S.C., told reporters Wednesday.
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PAGE 16, Thursday, March 2, 2017
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Rising inflation to increase grumbling about ECB stimulus FRANKFURT, Germany (AP) — Official figures are expected to show inflation in the 19-country eurozone rose again in February — a development that would further galvanize critics of the European Central Bank’s stimulus efforts. The inflation number to be announced Thursday could reach 1.9 percent thanks to rising oil prices, according to a survey of analyst estimates compiled by financial data provider FactSet. That would be up from 1.8 percent in January. Germany, the biggest of the eurozone economies, has already announced that its inflation rate rose to 2.2 percent from 1.9 percent. Rising inflation combined with low interest rates engineered by the central bank increase the pain felt by savers who are still getting near-zero returns on savings kept in conservative holdings such as bank deposits. And it has encouraged stimulus skeptics who think the ECB is close enough to its goal of bringing inflation sustainably to just below 2 percent that it can start thinking about when to signal a gradual exit from stimulus efforts slated to run through the end of this year. Economist Carsten Brzeski at ING-DiBa said that “with inflation about the magical 2 percent level, new complaints against the ECB’s loose monetary policy and new media headlines are likely to emerge.” The figures may increase the public relations headache for ECB President Mario Draghi but are not likely to make the bank change course. Draghi has argued that the recent increase in inflation comes from global oil prices, an external factor that is not due to a fundamental improvement in the economy. He has also said that the economy still needs support through a
A goose starts for a flight over the river Main with the buildings of the banking district in background in Frankfurt, Germany, Tuesday evening, Feb. 28, 2017. (AP Photo) year of heightened political uncertainties that will include elections in the Netherlands, France, and Germany. Analyst Michael Schubert at Commerzbank said that while some ECB council members want the bank to start thinking about ending its extraordinary stimulus efforts, “our analysis indicates that opponents of an early exit have a solid majority” on the bank’s 25-member governing council. A frequent stimulus critic, governing council member Jens Weidmann, did not make an explicit call for the bank to signal it is ready to exit the stimulus program. But he underlined Wednesday what he considers the unwanted side effects of the ECB’s efforts. In the text of a speech delivered in Ljubljana, Slovenia, he argued that current low borrowing rates offer “few incentives for governments to consolidate their budgets” since debt does not incur high interest costs. Weidmann sits on the ECB’s council by virtue of his post as head of Germany’s national central bank. He has been critical of the ECB’s decision to use newly
printed money to purchase government bonds and corporate bonds, driving interest yields down. The governing council is made up of a six-member executive board headed by Draghi, and by the heads of the 19 national central banks. Many of them are from member countries that need stimulus more than Germany, where unemployment is only 3.9 percent. In December, the ECB decided to continue bond purchases through the end of this year while reducing them from 80 billion euros ($84 billion) a month to 60 billion euros a month from April. The stimulus is aimed at raising inflation and supporting the economy. Most analysts think the bank will not back off its stimulus but may signal at some point this year its intentions to start tapering it off gradually in 2018. Bank officials point out that the current increase in inflation is largely the result of comparisons with a period of very low oil prices last year. Core inflation, which leaves out fuel prices, remained stuck at 0.9 percent in January.