06192024 BUSINESS

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Shutdown possible, warn gas retailers

• Businesses could close down ‘for day or two’

• No change after 30 months of negotiations

• Bastian: I feel like I’ve been hoodwinked

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

GAS retailers are considering a shutdown after being disappointed that there was no margin increase included in the 2024/25 Budget.

Vasco Bastian, vice president of the Petroleum Retailers Association, said members are growing impatient after 30 months of negotiations over a margin increase with the Davis administration and are ready to close their business for a “day or two” to demonstrate their irritation.

Speaking to Tribune Business yesterday, Mr Bastian said gas retailers are still recovering from the COVID-19 pandemic and find it “extremely difficult”

EXECUTIVE director at Access Accelerator, Small Business Development Centre (SBDC), Samantha Rolle, speaks during the Job Skills and Entrepreneurship Seminar for Persons with Disabilities at Stapledon School yesterday.

Initiative seeks to help disabled entrepreneurs

By FAY SIMMONS Tribune Business Reporter

jsimmons@tribunemedia.net

THE Small Business Development Centre (SBDC) is to launch a Disabled Entrepreneurs Initiative by the end of the month.

Samantha Rolle, the SBDC’s executive director, revealed yesterday a programme to assist disabled entrepreneurs will be launched in conjunction with the National Commission for Persons with Disabilities.

He said: “The disabled entrepreneurs initiative will partner with to partner with multiple organisations to develop this initiative but our key partner is the National Commission for Persons with Disabilities.

“We’ve already started discussions with them, we already have a framework programme, and the disabled entrepreneurs initiative is set to launch before the end of this month.”

Ms Rolle explained that disabled entrepreneurs face several barriers including inclusivity policies and infrastructure, targeted funding and networking.

She said: “We got some stats sourced by the Department of the Statistics as well as the World Health Organization and the world banks that approximately 35,000 to 45,000 people in The Bahamas live with disability. We also found some regional information that self-employment rates for people with disabilities is on an average of 6.6 percent

higher than for people without disabilities.

“It’s important for us to understand the data because we know how to fix some of the issues that we have. We’ve also found that barriers for entrepreneurs with disabilities are policy and infrastructure surrounding inclusivity… operational definitions for inclusivity, targeted funding, business knowledge and education, business community and networking.”

She said the programme will also work with the National Insurance Board to see how disabled people that want to become entrepreneurs can maintain their disabled benefits.

She said: “We want to be able to find ways to support persons with disabilities thrive with entrepreneurship. It’s important for us get information, we can’t just assume that we know what this community needs or type of support needed for entrepreneurship.

“One of the key things that they mentioned to us is that those disabilities that receive an allowance, the minute that they start a job, or perhaps assert themselves in a business class, their allowanced is reduced.

“Part of our advocacy then is to work with NIB to see how we can either eliminate that if possible, and if not, how do we work to make sure that those who want to be able to do for themselves and strive entrepreneurship and make sure that they are included and independent can do so without consequence. So we’re also working with them to craft that.”

to continue operating under the current rate structure.

He said: “The members were ready to shut down and shut down this country for a day or two and I’m the only one completely opposed to shutting down. It would inconvenience

the Bahamian public who are supporting us in this effort and our employees who depend on us. Fifty nine out of sixty members are ready to shut down, for the last 30 months we’ve been to convince them to not strike and shut down, as far as yesterday.

“We are trying to be patient and professional in our negotations, but at this point, the members are calling for my head, they believe I am being too nice to the government. But we’re at a point now that I’m even frustrated. I’m disappointed because I feel that I’ve been hoodwinked. It’s extremely difficult, we’re still trying to recover from COVID.”

Gas retailers have not received a margin increase since the then Ingraham administration granted one 13 years ago.

Monthly bills for WSC as smart meters introduced

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

THE Water and Sewerage Corporation (WSC) is to switch to monthly billing with the introduction of smart meters, it was announced during the Budget debate.

Leon Lundy, Minister of State in Office of the Prime Minister with responsibility for WSC revealed during his 2024/2025 budget contribution last week that the utility will transition over 60,000 meters to smart meters, ending the practice of physical meter reading.

Mr Lundy said the first 10,000 smart meters have been ordered, with the first 5,000 expected “shortly”.

“These meters will permit the corporation to read meters initially via drive by and eventually remotely thus eliminating the need to access gated residences and other barriers for meter reading purposes.” said Mr Lundy.

He explained the transition to monthly billing cycles will “significantly” benefit consumers as they would receive “manageable” monthly bills and be

alerted to internal leaks faster.

“It is envisioned that these smart meters will eventually be linked with an app which will notify customers immediately when there is a spike in their usage and thus enable them to promptly identify and repair any leaks within their property,” said Mr Lundy.

“This scenario will be a win-win for both our customers and the corporation as our customers will be able to better manage their consumption and thus their billings and the corporation will be freed from the losses associated with millions of gallons of water which would have passed through customer meters but is eventually rebated by the corporation as part of our leak rebate programme.”

He said the corporation is currently engaged in a $175m capital works programme designed to improve water and sanitation services throughout The Bahamas funded by three loans from the Inter-American Development Bank, the Caribbean Development Bank and the Green Climate Fund.

Unlike virtually all other industries, which are able to increase prices to cover rising operating expenses, the Bahamian petroleum industry operates on price-controlled fixed margins that require government approval before they can be changed.

Dealers say that, especially following the post-COVID cost of living crisis, ever-rising expenses have effectively wiped out the 54-cent and 34-cent margins per gallon of gasoline and diesel sold, driving them into losses and placing some in a position where they are threatening to close their operations. The government, though, has been reluctant to raise the

He said: “A $100m Bahamas Water Supply and Sanitation Upgrade Loan Programme is being finalised with the InterAmerican Development Bank, a $25m Water Supply Improvement Project Phase II Loan is being finalised with the Caribbean Development Bank and a $50m Climate Resilience in the Water Sector Loan is being advanced via the Green Climate Fund and the Caribbean Development Bank.

“This approximately $175m in financing will be utilised to expand, rehabilitate and strengthen our water and sanitation systems across the country to provide world class services while in parallel designed to withstand the increasing climatic challenges of our region. The corporation is currently engaged in the largest, most comprehensive and sustained Capital Works Programme in its almost 50-year history.” He said to date the capital works programme has completed over $6m in postDorian repairs with only minor work now remaining, over $6m in works on Eleuthera, $30m of water works in Cat Island, over $10m water works across Exuma, $200,000 projects in San Salvador and projects on Long Island, Acklins, SEE PAGE A21

Exports drop 44% - while imports rise by just

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

BAHAMIAN goods exports experienced a "significant" 44 percent decrease over the first quarter while imports increase by less than one percent, it has been revealed.

The Bahamas National Statistical Institute (BNSI) said yesterday the export of Bahamian goods totalled $95m for the first quarter of 2024, a 44 percent decrease from the same period last year.

The quarterly foreign trade statistics said food and live animal exports totalled $24m or 25 percent of total exports, mineral fuels, lubricants and related articles exports totalled $23m or 24 percent of total exports and crude mineral exports totalled $14m or 15 percent of total exports.

Areas such as manufactured goods and machinery and transport equipment decreased by up to 82 percent.

“Manufactured Goods Classified Chiefly by Materials, Machinery & Transport Equipment and Mineral Fuels, Lubricants and Related Materials showed decreases of 82 percent , 65 percent, 54 percent respectively,” said the BNSI report.

Imports for the first quarter totalled $1,027bn, a 1 percent increase from the same period last year with the import of machinery and transport equipment being the largest contributor at $240m or 17 percent of total imports.

The import of food and live animals was the second largest contributor, accounting for $199m or less than one percent of total imports for the quarter.

“Other categories that contributed significantly to total imports were ‘Miscellaneous Manufactured Articles’, ‘Mineral Fuels, Lubricants & Related Materials’, and ‘Chemicals’ with a combined total of $329m, 32 percent of total imports,” said the BNSI.

VASCO BASTIAN

Photo:Dante Carrer/Tribune Staff

LEON LUNDY

CTO celebrates ‘Caribbean Week’ in The Big Apple

AT the Caribbean Tourism Organization's (CTO) 'Caribbean Week' in New York City, Junkanoo fanfare took the stage at the Intercontinental Times Square on Monday. It brought colour, music and dancing to the CTO forum, which takes place from June 16-21 in the Big Apple, under the theme, 'Connecting the Globe, Celebrating Diversity'. The Bahamas is the platinum headline sponsor. Deputy Prime Minister and Minister of Tourism, Investments and Aviation Chester Cooper will be guest speaker at the Caribbean Airlift Forum today.

Photos:Kemuel Stubbs/BIS

BTC, GOVERNMENT LAUNCH JUMP DIGITAL EQUITY PROGRAMME

BTC in partnership with the Government of The Bahamas is to launch a digital equity programne, providing affordable connectivity, laptops, and training to over 5,000 homes in the next two years. The programme, called JUMP, is a private-public partnership designed to bridge the digital divide and foster greater digital inclusion.

BTC recently received a donation to the programme from Wesco, a provider of business-to-business distribution, logistics services and supply chain solutions, who held an event in The Bahamas. Wesco provided 50 laptops, along with 200 laptop sleeves, mouse pads, and other supplies to the JUMP programme.

Bill Geary, executive vice president and general manager, communications and security solutions at Wesco, said: “We are honored to participate in the Jump programme. Connectivity and the digital skills to take advantage of it are critical in today’s rapidly changing world. This donation of laptops and computer accessory kits can give families the tools they need to succeed. This programme aligns with our mission to build, connect, power and protect the world, and we look forward to seeing the impact it makes.”

BTC CEO, Sameer Bhatti, said: “The JUMP programme one that is near and dear to my heart. Through this programme, families that would not ordinarily be able to afford broadband services, will have the opportunity to benefit. JUMP is a life changer, and we look forward to the full roll out of this programme in the coming weeks.”

FROM left, Ajna Darling, Sr, associate BTC Comms; Indira Collie, executive sr manager BTC Comms; Tamara McKenzie, manager BTC Comms; Matt Fortunato, strategic accounts director Wesco; Sameer Bhatti, BTC CEO; Rick Arsenault, VP and GM of Wesco, Brittany Johnson, associate BTC Go-to-Market and Alphanique Spence, executive sr manager BTC Go-To-Market.

Monthly bills for WSC as smart meters introduced

FROM PAGE A24

Andros, Bimini and the Berry Islands.

For New Providence, Mr Lundy said there will be “substantial” sewerage improvement works but “limited” capital works in a bid to protect the environment and safeguard the level of service provided to consumers.

He said: “Ongoing and recently completed projects include over $100,000 was expended to rehabilitate the Coral Vista Wastewater Treatment Plant in Q4, 2023. Over $150,000 of works are ongoing at Arawak Cay to improve the flow of sewage

at that critical national facility. $100,000 of works are ongoing along East Shirley Street to improve the flow of sewage in that area and to end unhealthy overflows associated with old, collapsing sewerage infrastructure. “The corporation continues to work closely with Central Government to identify a financing mechanism to complete the Gladstone Road Wastewater Treatment Plant at the earliest opportunity. The public and residents in the area of Malcolm Park can expect to see improvements at that site which should also end the odour complaints during the second half of 2024.”

Shutdown possible, warn

gas retailers

FROM PAGE A24

margins for fear it will increase fuel bills for motorists.

Mr Bastian revealed that retailers have reduced their request for a 30-cent increase in petroleum to 25 cents and have “paused” the request for a diesel increase as it would affect boaters, heavy equipment operators and jitney drivers.

He said he is “heartbroken” that negotiations have dragged out so long preventing retailers from making a profit and is ‘saddened’ by the way the Davis administration has responded.

He said: “I’m extremely disappointed with the way we are being handled. I’m totally in support of Bahamian businesses, I’m totally in support of trying to

ensure that small, medium sized business like the gas station operators in The Bahamas and other small business in The Bahamas survive, but I’m heartbroken at the way we’ve been handled in the last 30 months.

“Really heartbroken that we as Bahamians with families and bills have not been given an opportunity to make a profit or continue to operate in The Bahamas, in this economy, in this environment. It’s just extremely discouraging and we’re saddened by the way we’ve been treated.”

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, ANDI PETRA MYKELL NEELY, of Curtis Street, Nassau, The Bahamas, intend to change my name to AMBERLEE PETRA MYKELL NEELY 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, The Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that CLAUDE ALIX of #16 Major Subdivision, New Providence, The 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 whyregistration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 19th day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that NATUIS ANTONIO MEJIAS of #3 Charles Street, Nassau, 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 19th day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that MAKINSON UTILE of Robinson Road, Podoleo Street, New Providence, The 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 whyregistration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 12th day of June, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

First FinTech cohort completes training

STUDENTS at the University of The Bahamas have been taking steps towards working in the financial sector.

The first cohort of the University of The Bahamas’ FinTech Regulatory Innovation Programme (UBFTRI), a collaboration with the Cambridge Centre for Alternative Finance (CCAF), Cambridge University, and the Securities Commission of The Bahamas, recently completed its training.

“The UBFTRI programme is a testament to UB's commitment to fostering innovation and leadership in the financial services sector,” said Dr Tanya McCartney, project lead for the programme and

assistant professor of Law at UB. “By partnering with CCAF and the Securities Commission, we are providing our participants with a world-class education that will empower them to shape the future of finance in The Bahamas and beyond.”

The programme aims to boost expertise among financial, legal and compliance professionals, as well as regulators. This aligns with the Government of The Bahamas' strategy to rapidly expand the digital assets sector, as outlined in its Future of Digital Assets in The Bahamas Policy White Paper.

The 12-week online programme offered an overview of the legal and regulatory framework for

FinTech, exploring the technologies and business models transforming the financial industry.

“The live sessions were extremely informative and interactive which gave us a chance to engage in dialogue with the industry experts and additionally to get to know our peers that were taking the course,” said John Lawrence, director at Infineo, and a member of the cohort.

“Being part of the FinTech and Regulatory Innovation cohort was a great experience,” said Jeraldo Frazer of the Royal Bahamas Police Force.

“Collaborating with professionals in the field with diverse backgrounds and sharing those experiences provided value to the programme.”

Charles J McKenzie of the Central Bank of The Bahamas echoed this sentiment. “Completing the course has equipped me with cutting-edge knowledge and tools in FinTech, open finance, digital assets, and regulatory technologies, empowering me to drive regulatory innovation,” he said. The second cohort will begin in Spring 2025. Meanwhile, programme partners are developing an InsureTech course to enhance expertise in innovative insurance technologies.

This law is a lifeline for pregnant workers even as an abortion dispute complicates its enforcement

By ALEXANDRA OLSON and CLAIRE SAVAGE AP Business Writers

VICTORIA Cornejo Barrera thought the legal helpline for workers sounded too good to be true. A month earlier, Cornejo Barrera had been forced to take leave from her job as head custodian at a South

Carolina high school after she turned in a doctor's note asking to be exempt from tasks like climbing ladders and lifting more than 20 pounds because she was pregnant. She spent a month crying and blaming herself for thinking she could keep her job while pregnant. She used up all her accumulated paid time off because she couldn't afford to go without a paycheck. Then she got a notice from human resources saying she would have to start paying $600 a month to stay on health insurance while on unpaid leave. Searching for help online, she came across the website run by the legal

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, VALENCIA JOHNSON PIERRE & RONALD PIERRE of Adelaide Village, Palmetto Street, Nassau, Bahamas, Parents of RYAN DENIKO JOHNSON

A minor intend to change my child’s name to RYAN DENIKO PIERRE If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.

advocacy organization

A Better Balance, explaining about a federal law called the Pregnant Workers Fairness Act that entitled her to the types of accommodations she had been seeking. It had gone into effect in June 2023, a month before she was pushed out of her job.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL

The Public is hereby advised that I, DEREK PITTER, of West End Avenue, Nassau, The Bahamas, intend to change my name to DERRICK MAJOR 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, The Bahamas no later than thirty (30) days after the date of publication of this notice.

NVIDIA’S STOCK MARKET VALUE TOPPED $3.3 TRILLION.

HOW IT BECAME NO. 1 IN THE S&P 500, BY THE NUMBERS

Associated Press

NVIDIA'S startling ascent in the stock market reached another milestone Tuesday as the chipmaker rose to become the most valuable company in the S&P 500. Investors now say the company is worth over $3.3 trillion.

Nvidia has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Revenue more than tripled in the latest quarter from the same period a year earlier.

The company's journey to be one of the most prominent players in AI has produced some eyepopping numbers. Here's a look:

$3.334 TrillionNvidia's total market value as of the close Tuesday. It edged past Microsoft ($3.317 trillion). Apple is the third mostvaluable company ($3.286 trillion). One year ago, the company had just crossed the $1 trillion threshold.

$113 billionThe one-day increase in Nvidia's market value on Tuesday.

$135.58Nvidia's closing stock price Tuesday. Two weeks ago the stock traded at more than $1,200, but the company completed a 10-for-1 stock split after trading closed on June 7.

That gave each investor nine additional shares for every share they already owned. Companies with a high stock price often conduct stock splits to make the stock more affordable for investors.

$119.9 billionAnalysts' estimate for Nvidia's revenue for the fiscal year that ends in January 2025. That would be about double its revenue for fiscal 2024 and more than four times its receipts the year before that.

53.4%Nvidia's estimated net margin, or the percentage of revenue that gets turned into profit. Looked at another way, about 53 cents of every $1 in revenue Nvidia took in last year went to its bottom line. By comparison, Apple's net margin was 26.3% in its most recent quarter and Microsoft's was 36.4%. Both those companies have significantly higher revenue than Nvidia, however.

32%How much of the S&P 500's gain for the year through May came only from Nvidia.

11The number of companies other than Nvidia that were once the most valuable in the S&P 500, going back to 1926, according to S&P Dow Jones Indices. Among them: AT&T, IBM and Walmart.

NVIDIA CEO Jensen Huang speaks at the Computex 2024 exhibition in Taipei, Taiwan, June 2, 2024. Nvidia passed Microsoft on Tuesday, June 18, 2024, to become the most valuable company in the S&P 500.

Photo:Chiang Yingying/AP

By ANNE D'INNOCENZIO AP Retail Writer

CONSUMERS barely increased spending in May from April as still high prices on groceries and other necessities and high interest rates curbed spending.

Retail sales rose 0.1% in May, below the pace that economists projected, the Commerce Department said Tuesday. And April sales were revised downward — a 0.2% decline, from unchanged. Sales rose 0.6% in March and 0.9% in February. That comes after sales fell 1.1% in January, dragged down in part by inclement weather.

Excluding gas prices and auto sales, retail sales rose the same amount.

Retail sales in May, in part, were depressed by falling gas prices. Excluding sales from gasoline, sales were up 0.3%. The national average price for a gallon of unleaded gasoline was $3.45 as of Monday; a month ago, it was $3.59, AAA said. Government retail data isn't adjusted for inflation, which was unchanged from April to May, according to the latest government

report. High inflation helps to inflate retail sales figures.

Still, economists said the report reflected an increasingly cautious consumer. But they point to a silver lining: a weaker-thanexpected retail sales report increases the likelihood that the Federal Reserve will start to cut interest rates in a few months.

"Consumer spending is cooling in a fairly orderly fashion," said Jeffrey Roach, chief economist for LPL Financial in Charlotte, North Carolina. But he added, "So far, the economy could pull off a soft landing, especially if the Fed is quick to adjust policy as conditions change."

The report showed mixed performances for various categories. While auto and vehicle dealer sales rose, areas related to home sales fell.

Sales at clothing and accessory stores rose 0.9%, while electronics and appliance stores posted a 0.4% gain. Online sales rose 0.8%. But business at building material and garden supplies fell 0.8%. Sales at gas stations were down 2.2%.

The retail sales data also offers only a partial look at consumer spending because it excludes things like travel and lodging. However at restaurants, the lone service category tracked in the monthly retail sales report, sales fell 0.4% in May.

A strong job market and rising wages have fueled household spending but spending remains choppy in the face of rising credit costs and still high inflation, though it has eased. To give shoppers some relief, Target, Walmart and other chains have rolled out price cuts — some permanent, others temporary, heading into the summer months.

Earlier this month, the government reported that America's employers added a robust 272,000 jobs in May, accelerating from April and an indicator that companies are still bullish enough in the economy to keep hiring despite stubbornly high interest rates.

The government's report on consumer inflation last week, showed how inflation cooled substantially in May, as the cost of gasoline, new cars, and even car insurance fell.

Consumer prices excluding volatile food and energy costs — the closely watched "core" index — rose 0.2% from April to May, the government said last week. That was down from 0.3% the previous month and was the smallest increase since October. Measured from a year earlier, prices increased 3.3%, less than the 3.6% gain a month earlier.

Federal Reserve officials said last week after the report came out that

inflation has fallen further toward their target level in recent months but signaled that they expect to cut their benchmark interest rate just once this year. Still, anxiety over still stubborn inflation helped drive down U.S. consumer sentiment for the third consecutive month. The University of Michigan's consumer sentiment index, released Friday in a preliminary version, dropped to 65.6 this month from a final reading of 69.1 in May.

Retail executives say shoppers are still buying, but they're being choosy about what they spend their money on.

Darren Rebelez, president and CEO of Ankeny, Iowa-based Casey's Casey's General Stores, Inc. which operates more than 2,600 convenience stores in 17 Midwestern states, noted shoppers remain resilient, but the company is also in a sweet spot. Roughly 25% of the chain's customers have household income of less than $50,000, and seven of the bottom 10 most affordable states are in the stores' footprint so customers can stretch their dollars further.

Still, Rebelez says customers are making choices like shifting away from candy because of skyrocketing cocoa prices and moving into baked goods like cookies, brownies and donuts. They're also buying less bottled soda in favor of cheaper soda fountain beverages.

"They're not giving up on their indulgences," he said. "They're just choosing to spend it differently so they can get a little more value for the money."

Companies are also ramping up experiences as customers shift more of their money to services over buying stuff.

This spring, Lowe's Inc, the nation's second-largest home improvement retailer behind Home Depot, signed a multiyear agreement with Argentine professional soccer player Lionel Messi, Inter Miami CF and the upcoming soccer tournament Conmebol Copa América USA to play a role in its marketing and advertising campaigns.

Lowe's is hoping to win over soccer fans with signage and in-stadium activations and community programming at a time when many shoppers are jumping around to different home improvement retailers for their projects and show no signs of loyalty. For example, select Lowe's stores will host Conmebol Copa América watch parties.

"It's a significant opportunity for us to grow," said Jennifer Wilson, Lowe's chief marketing officer said. "And so this is also an effort for us to make that relationship stickier."

Photo:Nam Y. Huh/AP

CONGRESSIONAL BUDGET

RAISES THIS YEAR'S FEDERAL BUDGET DEFICIT PROJECTION

BY $400 BILLION

By FATIMA HUSSEIN and JOSH BOAK Associated Press

THE Congressional Budget Office said Tuesday that it projects this year's federal budget deficit to be $400 billion higher, a 27% increase compared to its original estimate released in February.

The major drivers of the change include: higher costs from the supplemental spending package signed in April that provides military aid to Ukraine and Israel; higher than estimated costs of reducing student loan borrower balances; increased Medicaid spending; and higher spending on FDIC insurance after the

agency has not yet recovered payments it made after the banking crises of 2023and 2024.

The report also projects that the nation's publicly held debt is set to increase from 99% of gross domestic product at the end of 2024 to 122% of GDP — the highest level ever recorded — by the end of 2034. "Then it continues to rise," the report states.

Deficits are a problem for lawmakers in the coming years because of the burden of servicing the total debt load, an aging population that pushes up the total cost of Social Security and Medicare and rising health care expenses.

PHILLIP SWAGEL, Director of the Congressional Budget Office, testifies during a House Committee hearing Feb. 14, 2024, on Capitol Hill, in Washington. The CBO said Tuesday, June 18, that it projects a federal budget deficit increase of $400 billion or 27% this year, from its last budget outlook released in February.

The report cuts into President Joe Biden's claim that he has lowered deficits, as borrowing increased in 2023 and is slated to climb again this year.

The White House budget proposal released in March claims to reduce the deficit

Photo:Mariam Zuhaib/AP

by roughly $3 trillion over the next 10 years and would raise tax revenues by a total of $4.9 trillion in the same period.

White House spokeswoman Karine Jean-Pierre, said in a statement that the report "is further evidence of the need for Congress

to pass President Biden's Budget to reduce the deficit by $3 trillion — instead of blowing up the debt with $5 trillion of more Trump tax cuts." A May CBO report estimates that extending the provisions of Trump's Tax Cuts and Jobs Act would increase deficits by nearly $5 trillion into 2034.

Trump, as a candidate for president in 2024, recently told a group of CEOs that he would further cut the corporate tax rate he lowered while in office, among other things. The Committee for a Responsible Federal Budget estimates that the 10-year cost of the legislation and executive actions former President Donald Trump signed into law was about $8.4 trillion, with interest. In a statement, House Budget Committee Chairman Jodey Arrington, R-Texas, responded to the increased deficit forecast by saying that "Congress must reverse the spending curse of the Biden

Administration by undoing expensive and overreaching executive actions."

Arrington added that

"we must address the most significant debt drivers of our mandatory spending," a category in the budget that includes Social Security and Medicare.

Michael A. Peterson, CEO of the Peter G. Peterson Foundation, said the CBO projections show that the outlook for America's critical national debt challenge is worsening.

"The harmful effects of higher interest rates fueling higher interest costs on a huge existing debt load are continuing, and leading to additional borrowing. It's the definition of unsustainable," Peterson said.

"The leaders we elect this fall will face a series of highly consequential fiscal deadlines next year, including the reinstatement of the debt limit, the expiration of the 2017 tax cuts and key decisions on healthcare subsidies, discretionary spending caps and more."

Nvidia climbs to Wall Street’s mountaintop as indexes edge up to more records

By STAN CHOE AP Business Writer

THE staggering run for Nvidia's stock carried it to the market's mountaintop Tuesday, as it became the most valuable company on Wall Street. Stock indexes, meanwhile, ticked to more records following the latest signal that the U.S. economy's growth may be slowing without cratering.

The S&P 500 added 0.3% to set an all-time high for the 31st time this year. The Nasdaq composite edged up by less than 0.1% to set its own record, while the Dow Jones Industrial Average added 56 points, or 0.1%.

Underneath that calm market surface, Nvidia was the star again. It rose again, this time up 3.5%. It was the strongest force pushing the S&P 500 upward, again. And it lifted its total market value further above $3 trillion, again.

It grabbed the top spot on Wall Street from Microsoft, which has been trading the crown back and forth with Apple after they wrested it from past titans like Exxon Mobil and cigarette-maker Philip Morris.

Microsoft and Apple were at the vanguard of Big Tech, which is the dominant force in the U.S. stock market after amassing strength through the digitization of the world. Nvidia is riding the wave of a more specific tech surge, this time in artificial intelligence.

Nvidia's chips are helping to develop AI, which proponents expect to change the world as much or more than the internet, and demand for its chips has proven to be shockingly voracious. Nvidia's revenue routinely triples every quarter, and its profit is rocketing at even more breathtaking rates. Its stock is up nearly 174% this year, and Nvidia alone was responsible for nearly a third of the S&P 500's entire gain for the year through May.

Of course, a potential danger of having a handful of superstars responsible for most of the U.S. stock market's run to records is a more fragile market. If more stocks were participating, it could be a signal of a healthier market.

Stocks broadly got some lift Tuesday from easing yields in the bond market. Treasury yields fell after a report showed sales at U.S. retailers returned to growth last month but remained below economists' expectations.

That could be an encouraging signal for the Federal Reserve, which is trying to pull off a tough balancing act for the economy. The Fed wants to slow the economy by just enough through high interest rates to get inflation under control. The hope is that it will cut its main rate, which is at its highest level in two decades, in time so that the slowdown stops short of a painful recession.

Following the retail sales data's release, bets built among traders that the Federal Reserve will cut rates at least twice this year, according to data from CME Group. Fed officials themselves are largely penciling in one or two cuts in 2024.

The yield on the 10-year Treasury fell to 4.21% from 4.29% late Monday. The two-year yield, which more closely tracks expectations

for the Fed, fell to 4.70% from 4.77%.

A survey of global fund managers by Bank of America showed they're the most optimistic about stocks since the autumn of 2021, with relatively little hiding out in cash and allocations heavy to stocks. Fewer managers are also calling for a "hard landing" where the economy tumbles into a bad recession.

The downside of Tuesday's weaker-than-expected

data is that it could be a warning signal that the main engine of the U.S. economy, spending by households, is cracking. Alongside May's numbers, the U.S. government also revised down figures for retail sales in prior months.

Inflation is still high, even if it's slowed since its peak, and lower-income households in particular are struggling to keep up with the more expensive prices.

Lennar, a homebuilder, fell 5% after co-CEO Stuart Miller said "challenged consumer sentiment" and swings in interest rates are testing the company. Its stock fell even though it reported better profit for the latest quarter than analysts expected.

Shares of Fisker more than halved to 2 cents after the electric-vehicle maker filed for Chapter 11 bankruptcy protection.

THE NEW York Stock Exchange is shown on Tuesday, June 18, 2024 in New York. Shares are

Photo:Peter Morgan/AP

AMAZON LABOR UNION MEMBERS

By MICHELLE CHAPMAN and HALELUYA HADERO AP Business Writers

NEW York City warehouse workers who are part of the Amazon Labor Union overwhelmingly voted to align themselves with the Teamsters as they try to get a contract from the online retailer.

The ALU members voted 98.3% in favor of the affiliation, which will give them access to additional resources in their effort to bring Amazon to the bargaining table, the International Brotherhood of Teamsters said Tuesday.

"Together, with hard work, courage, and conviction, the Teamsters and ALU will fight fearlessly to ensure Amazon workers secure the good jobs and safe working conditions they deserve in a union contract," Teamsters General President Sean M. O'Brien said in a statement.

Amazon, which has disputed the 2022 election in which the ALU won the right to represent workers at a Staten Island warehouse, did not immediately respond to a request for comment.

Now that the labor group's members have approved the affiliation deal, the ALU will essentially join the Teamsters as an "autonomous" local union with the same rights and duties as a standard chapter, according to a copy of the agreement that was seen by The Associated Press.

The approximately 5,500 Amazon warehouse workers in Staten Island will be represented by a newly chartered ALU-International Brotherhood of Teamsters Local 1. It will have jurisdiction for Amazon warehouse workers across New York's five boroughs, and is also

expected to help with the Teamsters' broader organizing efforts at other Amazon facilities outside its jurisdiction.

The agreement says at least three representatives of the local union will participate in "executive planning and strategy discussions" with the Teamsters division that focuses on organizing Amazon workers.

ALU President Chris Smalls said he was proud of members for "choosing a path to victory."

"We're now stronger than ever before," Smalls said.

John Logan, a labor history professor at San Francisco State University, said teaming up with an established union was like a "lifeline" for the independent ALU because the group is "going nowhere at the moment."

"Doing it independently is just so difficult when you're up against a company like (Amazon), which is big, wealthy and is determined to defeat the union," Logan said.

The Amazon Labor Union's 2022 victory in Staten Island remains its only election win to date. Yet the group is the only labor organization to pull off the feat at an Amazon warehouse in the U.S., in part due to opposition from the company and the sheer size of many of its facilities.

But despite the ALU's initial success, it hasn't been able to secure a contract for more than two years as Amazon continues to appeal the vote with the National Labor Relation Board. At the same time, the group has encountered other setbacks, including two election losses at other Amazon warehouses and internal strife about its organizing strategy.

Some organizers left to form the ALU Democratic

Reform Caucus, a dissident group that sued the ALU last year to force an election for new leadership. That election is expected to be held in July outside of the warehouse that voted to unionize, Arthur Schwartz, an attorney who represents the dissident group, said earlier this month.

Connor Spence, the Caucus' candidate for president, indicated he was supportive of the affiliation with the Teamsters, saying in a statement that it "sends a powerful reminder to Amazon that we're not giving up in our yearslong campaign for respect, better wages, and safe jobs."

The International Brotherhood of Teamsters, created in 1903, has 1.3 million members in the U.S., Canada and Puerto Rico.

O'Brien, a fiery leader, was elected in 2021 on a platform that emphasized greater organizing at Amazon. He has also indicated that the union's wins elsewhere, like the collective bargaining agreement it secured at UPS last year, would help its fight to organize Amazon workers.

The Teamsters have been pushing to organize Amazon's driving workforce, though that effort hasn't led to any major wins recognized by the company. In April, Amazon workers at a large company Air Hub in Kentucky decided to affiliate with the union amid their own organizing effort.

San Francisco State's Logan said the affiliation with the ALU also was a smart move by the Teamsters, which needs to think of new ways to organize at Amazon. He thinks winning union elections at the company will require grassroots campaigns akin to the one that led to the ALU's victory instead of the topdown, traditional campaigns many unions employ.

Florida medical marijuana patients get an unexpected email praising DeSantis

By BRENDAN FARRINGTON Associated Press

FLORIDA has more than 700,000 medical marijuana patients and Republican Gov. Ron DeSantis — who is battling a proposal to allow recreational use of marijuana — wants them all to know what a great job he's doing.

The Department of Health last week sent a blast email to its medical marijuana patient list boasting that DeSantis signed the state budget. The email praised a cancer research program promoted by first lady Casey DeSantis, listed health issues like HIV, hepatitis and syphilis that are in the spending plan and gave a message from Surgeon General Joseph Ladapo that he and DeSantis are "advancing public health and personal responsibility in Florida."

Nothing in the email mentions medical marijuana, and patients and advocates say that the DeSantis administration violated their privacy by using the patient list to promote policy.

"That is revolting. That is really such a misuse of power and information," said state Rep. Kelly Skidmore, the ranking Democrat on the House Health Policy Committee.

"I guarantee you nobody checked the box that said, 'Yes, it's OK to send me information on Gov. DeSantis' agenda.'"

The Department of Health said it didn't single out medical marijuana patients, but rather sent the budget statement to everyone in its email databases, which spokeswoman Weesam Khoury said includes more than "2 million members of the public, health care professionals, licensees, and media."

Khoury was asked if the department has email databases for other patients, such as cancer, COVID-19 or HIV, but provided no details if such databases exist or if they also were used to promote the governor's budget.

"It is unfortunate that The Associated Press has decided to write a story about the inconvenience of an email, rather than covering the key investments that will save countless lives," she said.

Patient advocates say it's more than just an inconvenience, it's a violation of privacy — not just because promoting the governor has nothing to do with their health care. Florida has broad public records laws and if someone obtained the master email list, they could deduce who is a medical marijuana patient, since

N O T I C E

MDF FOOTWEAR CONSULTING LTD.

(In Voluntary Liquidation)

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act 2000, the above-named Company is in dissolution, which commenced on the 14th day of June, 2024. The Liquidator is Windermere Corporate Management Limited, 200 Sterling Commons, East Building, Harbour Drive, Paradise Island, Bahamas, P.O. Box N-7797, Suite A-084, Nassau, Bahamas.

they make up about 35% of the recipients. Patients could be subject to unwanted marketing and political messages or worse — employers could see who has a medical marijuana card.

"This was a 'look how great the governor is and how much he's done for us at the Department of Health,'" said Jodi James, president of the nonprofit Florida Cannabis Action Network. "My information should not be part of their general email blast list by any stretch of the imagination."

Ironically, DeSantis has been a loud critic of "Big Tech" and has accused private companies of misusing users' personal information. It's shocking the state would use the patient email list for its policy agenda, said state Democratic Party chair Nikki Fried, a former agriculture commissioner who oversaw the list of concealed weapons license holders.

"I would have been scorched alive if I had done anything with that database to either release their information to another part of my agency or to have used that database for pushing the rest of the news or activities from the Department of Agriculture," Fried said. "It's irresponsible."

A medical marijuana patient in Pensacola told The Associated Press that he and others plan to file a formal complaint.

"If it was a doctor that put out your private patient information for some other agenda, I feel like somebody should be held accountable," said the patient, who didn't want his name used to protect his medical privacy.

Personal injury lawyer John Morgan, who spearheaded the state's 2016 medical marijuana effort, questioned how the email didn't violate federal law restricting the release of medical information. He also said the email list would be a bonanza for people who want to use it for political purposes, including to promote recreational marijuana in November.

JASON ANTHONY, an Amazon worker and union organizer, keeps track of the ongoing count of votes to unionize an Amazon warehouse outside an office of the National Labor Relations Board in New York, on May 2, 2022. Amazon’s union workers are aligning themselves with the Teamsters, overwhelmingly voting in favor of an affiliation. The union members voted 98.3% in favor of the affiliation, the International Brotherhood of Teamsters said Tuesday, June 18, 2024.

Photo:Seth Wenig/AP

REPUBLICAN presidential candidate Florida Gov. Ron DeSantis speaks during a campaign event at Wally’s bar, Wednesday, Jan. 17, 2024, in Hampton, N.H. Medical marijuana patients and advocates are upset that the Florida Department of Health emailed its patient registry to praise Republican Gov. DeSantis for signing the state budget.

Photo:Michael Dwyer/AP

Boeing CEO defends his safety record, spars with senators and apologizes to crash victims’ relatives

By DAVID KOENIG AP Airlines Writer

BOEING CEO David Calhoun defended the company's safety record during a contentious Senate hearing Tuesday, while lawmakers accused him of placing profits over safety and failing to protect whistleblowers, and at times taunted him over his rich compensation package.

Relatives of people who died in two crashes of Boeing 737 Max jetliners were in the room, some holding photos of their loved ones, to remind the CEO of the stakes. Calhoun began his remarks by standing, turning to face the families, and apologizing "for the grief that we have caused," and vowing to focus on safety.

Calhoun's appearance was the first before Congress by any high-ranking Boeing official since a panel blew out of a 737 Max during an Alaska Airlines flight in January. No one was seriously injured in the incident, but it raised fresh concerns about the company's best-selling commercial aircraft.

The tone of the hearing before the Senate investigations subcommittee was set hours earlier, when the panel released a 204-page report with new allegations from a whistleblower who said he worries that defective parts could be going into 737s. The whistleblower is the latest in a string of current and former Boeing employees to raise concerns about the company's manufacturing processes, which federal officials are investigating.

"This hearing is a moment of reckoning," the subcommittee chairman, Richard Blumenthal, D-Conn., said. "It's about a company, a once iconic company, that somehow lost its way."

Sen. Josh Hawley, R-Mo., placed the blame squarely on Calhoun, saying that the man who became CEO in January 2020 had been too focused on the bottom line.

"You are cutting corners, you are eliminating safety procedures, you are sticking it to your employees, you are cutting back jobs because you are trying to squeeze very piece of profit you can out of this company," Hawley said, his voice rising. "You are stripmining Boeing."

Hawley repeatedly mentioned Calhoun's compensation for last year, valued at $32.8 million, and asked the CEO why he hasn't resigned.

"Senator, I'm sticking this through. I'm proud

of having taken this job.

I'm proud of our safety record, and I'm proud of our Boeing people," replied Calhoun, who has announced that he will step down by year end.

Hawley interrupted.

"You're proud of the safety record?" he asked with incredulity.

"I am proud of every action we have taken," Calhoun responded.

Senators pressed Calhoun about accusations that Boeing managers retaliated against employees who reported safety concerns. They asked the CEO if he ever spoke with any whistleblowers. He replied that he had not, but agreed it would be a good idea.

The latest whistleblower, Sam Mohawk, a quality assurance investigator at Boeing's 737 assembly plant near Seattle, told the subcommittee that "nonconforming" parts — ones that could be defective or aren't properly documented — could be winding up in 737 Max jets.

Potentially more troubling for the company, Mohawk charged that Boeing hid evidence after the Federal Aviation Administration told the company it planned to inspect the plant in June 2023.

"Once Boeing received such a notice, it ordered the majority of the (nonconforming) parts that were being stored outside to be moved to another location," Mohawk said, according to the report. "Approximately 80% of the parts were moved to avoid

The Public is hereby advised that I, VALENCIA JOHNSON PIERRE & RONALD PIERRE of Adelaide Village, Palmetto Street, Nassau, Bahamas, Parents of RHAYNA BELLAROSE JOHNSON A minor intend to change my child’s name to RHAYNA BELLA-ROSE PIERRE If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice. INTENT TO CHANGE NAME BY DEED POLL

the watchful eyes of the FAA inspectors."

The parts were later moved back or lost, Mohawk said. They included rudders, wing flaps and other parts that are crucial in controlling a plane.

A Boeing spokesperson said the company got the subcommittee report late Monday night and was reviewing the claims.

The FAA said it would "thoroughly investigate" the allegations. A spokesperson said the agency has received more reports of safety concerns from Boeing employees since the Jan. 5 blowout on the Alaska Airlines Max.

The 737 Max has a troubled history. After Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people, the FAA and other regulators grounded the aircraft worldwide for more than a year and a half. The Justice Department is considering whether to prosecute Boeing for violating terms of a settlement it reached with the company in 2021 over allegations that it misled regulators who approved the plane.

Mohawk told the Senate subcommittee that the number of unacceptable

parts has exploded since production of the Max resumed following the crashes. He said the increase led supervisors to tell him and other workers to "cancel" records that indicated the parts were not suitable to be installed on planes.

The FAA briefly grounded some Max planes again after January's mid-air blowout of a plug covering an emergency exit on the Alaska Airlines plane. The agency and the National Transportation Safety Board opened separate investigations of Boeing that are continuing.

Calhoun said Boeing has responded to the Alaska accident by slowing production, encouraging employees to report safety concerns, stopping assembly lines for a day to let workers talk about safety, and appointing a retired Navy admiral to lead a quality review. Late last month, Boeing delivered an improvement plan ordered by the FAA.

The CEO defended the company's safety culture.

"Our culture is far from perfect, but we are taking action and making progress," Calhoun said. "We

are taking comprehensive action today to strengthen safety and quality." The drumbeat of bad news for Boeing goes on, however.

In the past week, the FAA said it was investigating how falsely documented titanium parts got into Boeing's supply chain, the company disclosed that fasteners were incorrectly installed on the fuselages of some jets, and federal officials examined "substantial" damage to a Southwest Airlines 737 Max after an unusual mid-flight control issue.

Howard McKenzie, Boeing's chief engineer, said during the hearing that the issue affecting the Southwest plane — which he did not describe in detail — was limited to that plane.

On top of the safety concerns, Boeing reported that it hasn't received a single order for a new Max — previously its best-selling plane — in two months.

Blumenthal first asked Calhoun to appear before the Senate subcommittee after another whistleblower, a Boeing quality engineer, claimed that manufacturing mistakes were raising safety risks on two of the biggest

Boeing planes, the 787 Dreamliner and the 777. He said the company needed to explain why the public should be confident about Boeing's work.

Boeing pushed back against the whistleblower's claims, saying that extensive testing and inspections showed none of the problems that the engineer had predicted.

The Justice Department determined last month that Boeing violated a 2021 settlement that shielded the company from prosecution for fraud for allegedly misleading regulators who approved the 737 Max. A top department official said Boeing failed to make changes to detect and prevent future violations of anti-fraud laws. Prosecutors have until July 7 to decide what to do next. Blumenthal said at the start of Tuesday's hearing that he thinks the Justice Department should prosecute the company.

Families of the victims of the Max crashes have pushed the Justice Department repeatedly to prosecute Boeing. They want a federal judge in Texas to throw out the 2021 deferred-prosecution agreement or DPA — essentially a plea deal — that allowed Boeing to avoid being tried for fraud in connection with the Max.

"They had gotten away with murder because they had that DPA and they had three years to progress … to improve their safety process, and actually they did nothing," Catherine Berthet, whose daughter Camille died in the second crash, said outside the Capitol on Tuesday. "Now they have to be made accountable."

BOEING CEO Dave Calhoun, center, testifies at a Senate Homeland Security Subcommittee on Investigations hearing on Capitol Hill Tuesday, June 18, 2024, in Washington.

Photo:Mariam Zuhaib/AP