07132016 business by tribune242

WEDNESDAY, JULY 13, 2016

business@tribunemedia.net

Moody’s now challenges Govt over debt ratios

CABLE BAHAMAS HEAD OFFICE

Cable targets 14% EBITDA growth without NewCo Seeks 9% revenue growth over same five years Launches $50m issue that goes outside Bahamas Investors to gain returns from services to NewCo By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CABLE Bahamas yesterday disclosed it is targeting a 14 per cent compound annual growth rate (CAGR) in earnings before taxation over the next five years - a goal that excludes potential benefits from its stake in the nation’s second mobile provider. Barry Williams, Cable Bahamas’ chief financial officer, said in a statement issued last night that the company is seeking 9 per cent revenue growth over the same period to 2020, as it moves to deliver greater shareholder returns from newly-opened growth opportunities. The BISX-listed communications provider is also expanding its capital raising into the Caribbean by seeking 40 per cent of its latest $50 million preference share issue from regional investors beyond the Bahamas’ borders. Moving rapidly to capitalise on the issuance of the second mobile licence to NewCo2015 Ltd, Cable Bahamas has engaged Scotiabank (Bahamas) and its affiliate, Scotia Investments Jamaica to raise $20 million in US dollar financing. The preference share issue launches today, with RoyalFidelity Merchant Bank & Trust seeking to raise the $30 million balance ($20 million in Bahamian dollars, $10 million in US dollars) in the local capital markets. See PG B2

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net MOODY’S is now questioning another key fiscal projection by Prime Minister Perry Christie’s government, warning that the Bahamas’ uncertain outlook makes it hard to forecast how high - and when - the debt-toGDP ratio will peak. The rating agency, which is threatening to potentially downgrade the Bahamas’ sovereign creditworthiness to ‘junk’ status by end-August, also joined calls for the Government to “rein in” its spending. Providing more detail on the areas it will assess to determine if another Bahamas downgrade is warranted, the New Yorkbased credit rating agency also plans to examine whether further revenue measures are needed to boost fiscal consolidation. Moody’s latest issues and concerns were detailed in a July 5, 2016, missive released to the international capital markets some four days after announcing it was placing the Bahamas’ sovereign rating under a twomonth review. The ‘credit opinion’ indicates it has clearly taken note of the

THE dangers presented by correspondent bank ‘de-risking’ must be “carefully managed”, the Central Bank’s governor has warned, urging Bahamasbased institutions to ensure they have a “back-up plan”. John Rolle, who is due to address Bahamas Chamber of Commerce and Employers Confederation (BCCEC) members on the issue today, told Tribune Business that a sound regulatory regime was key to combating the withdrawal of correspondent banking services. Emphasising that individual institutions needed to understand their role, and implement the necessary safeguards, Mr Rolle said all Bahamian regulatory agencies were working to strengthen “areas of risk” in the country’s money laundering and terror financing defences. Amid an increasing tendency by developed country banks to terminate correspondent relationships with their Caribbean counterparts, Mr Rolle told Tribune Business: “I think the most we can say at this stage is it has to be carefully managed in terms of making sure all the stakeholders understand what is expected of us in terms of the antimoney laundering regime.” Regulatory deficiencies, coupled with increased compliance costs and the See PG B3

But PM says ratio had already ‘peaked’ Agency to focus on expenditure ‘rein in’ Bahamas averages just 0.3% growth in past 4 years major revision to the Government’s 2014-2015 fiscal year performance, where initial estimates of a $198 million deficit ended up a year later at $381 million. This was a near $200 million ‘difference’ that placed the 2014-2015 deficit some $95 million above the $286 million ‘target’ for the year, a development that threatens to undermine trust and confidence in the Government’s numbers. The implications have not es-

caped Moody’s, which said: “On the fiscal front, during the presentation of the 2016-2017 Budget, the fiscal deficit for 2014-2015 was revised to 4.4 per cent of GDP from a previous estimate of 2.3 per cent. “This was due to a revision of expenditures, which were increased by 1.6 per cent of GDP, while revenues were 0.5 per cent of GDP lower than previously estimated. Authorities estimate that the fiscal deficit in 20152016 came at 1.7 per cent of GDP.” The latter projection has yet to be confirmed or tested, and Moody’s queried another of the Christie administration’s fiscal assumptions - namely whether the Government’s direct debtto-GDP ratio “peaked” during the recently-closed 2015-2016 fiscal year. The rating agency explained that the increasingly uncertain GDP growth and economic outlook made it virtually impossible to determine when the Bahamas’ debt-to-GDP ratio will peak, and at what level. “In terms of debt dynamics, the Government’s debt-to-GDP ratio reached 64.4 per cent in 2014-2015, up from 60.2 per cent See PG B2

Bank chief’s warning on ‘government interference’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net FIDELITY Bank (Bahamas) chief executive has warned that “government interference” threatens to impact industry profitability, especially should it move ahead with a revised Homeowners Protection Bill. Anwer Sunderji, writing in the BISX-listed commercial bank’s just-released 2015 annual report, said its Board and management were “less sanguine” about the future following a year in which total comprehensive income jumped 47 per cent to over $20 million. “Rising competition, govern-

Correspondent de-risk requires ‘back up plan’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

‘Hard’ to say when, and how high, debt-to-GDP goes

Governor: Issue ‘must be carefully managed’

JOHN ROLLE

$4.05 $4.20 $4.06

$4.06

Concern over Homeowner Protection Bill return Mortgage Relief coincides with delinquency rise ment interference, and prospect for elections in 2017 are negative factors. We expect 2016 results to be marginally better than 2015,” he warned shareholders. Asked by Tribune Business what he meant by ‘government interference’, Mr Sunderji yes-

terday indicated he was alluding largely to the Homeowners Protection Bill, which the Christie administration is looking to resuscitate. He warned that its passage into law might encourage Bahamas-based commercial banks “to simply leave the mortgage business”, a development that would worsen the very housing market crisis it is intended to help cure. The Bill, which was brought to the House early in the Christie administration’s term in office, but never made it into law, is likely to have undergone some subsequent revisions. However, in its early See PG B4

Union to Govt: Force Cable into industrial talks Majority NewCo ownership ‘gives it the power’ BCPOU chief warns Gov’t of ballot box impact Calls on it to prove ‘labour friendly’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government was yesterday urged to use its temporary majority ownership of the new mobile operator to “force” Cable Bahamas into industrial agreement negotiations, amid warnings that failing to do so would cost it votes. Bernard Evans, the Bahamas Communications and Public Officers Union (BCPOU) president, told Tribune Business it was now time for the Christie administration to ‘live up’ to its pledge that it was a friend of labour. He expressed particular alarm that Cable Bahamas, which has Board and management control at NewCo2015 Ltd, the nation’s second mobile operator, had hired a team of See PG B3

BERNARD EVANS

PAGE 2, Wednesday, July 13, 2016

THETHE TRIBUNE TRIBUNE

PI resort names local as top chef THE Warwick Paradise Island resort has named Basil Dean as its executive chef, with responsibility for overseeing the dining experiences at the resort’s four restaurants. A native of Nassau, Mr Dean brings more than 30 years of culinary experience to his post, having spent the last 12 years as an executive chef. For the past two years, he was the executive chef at the Grand Lucayan Resort and its all-inclusive Lighthouse Pointe Resort and Spa, both located on Grand Bahama. While at the two hotels, Mr Dean was part of the pre-opening team for Lighthouse Pointe, and oversaw the operations of eight food and beverage outlets, including menu creation, departmental training, coaching and standardisation.

BASIL DEAN, executive chef, Warwick Paradise Island Bahamas

Cable targets 14% EBITDA growth - without NewCo From pg B1 Tribune Business exclusively revealed the RoyalFidelity portion of the preference share capital raising last month, with the timing of the offering’s launch directly linked to the awarding of NewCo2015’s licence. Cable Bahamas likely elected to broaden its capital horizons beyond the Bahamas because of the relatively limited appetite for, and difficulty in accessing, US dollar investments. The US dollar denominated component in some of its previous preference share offerings has been less than fully subscribed, and in seeking access to a broader investor pool, Cable Bahamas also has the opportunity to gain ‘brand recognition’ regionally. The $50 million preference share proceeds will be listed on the Bahamas International Securities Exchange (BISX) and used to finance Cable Bahamas’ capital expenditures, and expansion opportunities, in both the Bahamas and US. Targeted investors will be given a special presentation

on the company’s plans this evening, although members of the public should not seek to become involved as it is not a public offering. Mr Williams, meanwhile, said Cable Bahamas was poised for strong top-line and earnings before interest, taxation, depreciation, and amortisation (EBITDA) growth over the next five years event even without the potential profit streams likely to be delivered by NewCo 2015. “We expect the wireless services opportunities and growth of our Florida business to drive CAGR of 9 per cent in revenues and 14 per cent in EBITDA over the next five years in Cable Bahamas,” Mr Williams said. “In addition, we expect further shareholder value growth from our 48.25 per cent equity stake in NewCo, which will enter the $215 million domestic and visitor roaming mobile revenue market, later this year.” Cable Bahamas’ own financial projections, which exclude NewCo’s direct impact, show its revenues increasing by 14 per cent or

He managed special events, banquets and catering, and employee training in HAACP and food safety. “Basil Dean’s culinary expertise will raise the bar on our dining experiences, as he will infuse Bahamian culinary influences with international recipes, resulting in delicious creations to please the most discerning palates,” said Benjamin Davis, general manager of Warwick Paradise Island Bahamas. The four dining options at the Warwick Paradise Island include The Verandah, serving breakfast, lunch and dinner, with indoor or outdoor al fresco seating seven days a week. Two á la carte restaurants will open in the evening - Tings on a Stick, a shish kebob eatery serving a variety of fresh meat, seafood and vegetable kebobs, and

$25 million year-over-year between 2016 and 2017, rising to $210 million. Although the annual growth rate slows down to 7-8 per cent over the next three years, Cable Bahamas is forecasting that total revenues (minus NewCo2015) will hit $258 million by 2020, a $73 million or 39.5 per cent rise over five years. As for EBITDA, Cable Bahamas is projecting a 24 per cent surge between 2016 and 2017, with this figure increasing from $60 million to $74 million. While the EBITDA growth rates also taper off to between 8-13 per cent over the next three years, it is projected to hit $101 million by 2020- a 68.33 per cent rise. The offering document for the $50 million preference share issue shows how Cable Bahamas shareholders have two ways to obtain increased value from their investment via the NewCo2015 licence win. Besides the potential dividends and profits that will flow ‘upstream’ to them from Cable Bahamas’ 48.25 per cent stake in the second mobile operator, the BISXlisted provider’s shareholders will also enjoy income streams generated by the services it will provide to

Calling All High

SCHOOL STUDENTS

Every year in August THE TRIBUNE publishes a popular Back to School supplement as a guide to the following academic year. In the supplement we feature the profiles of high school students across the Bahamas and Family Islands. We want profiles from as many schools and students as possible to make this guide essential and informative.

Profiles must include 1. Name 2. Age 3. School 4. Grade 5. Parent name or names 6. Goals and aspirations, prizes won and honours awarded

7. Name of college they will be attending (if attending) Plus a suitable photograph in .jpeg format (graduation or any other image).

How to submit profiles Email to back2school@ tribunemedia.net with ‘Back To School’ in the subject field and photos in .jpeg format. By post to Back To School, The Tribune, Shirley Street & Deveaux Streets, PO Box N-3207, Nassau. By hand to The Tribune office The deadline for the profiles is July 29, 2016 and there is no cost involved. For any questions please contact Tribune Features at 5022373 or 502-2387 or 502-2411.

Abbiocco, an Italian fine dining restaurant set in a casual atmosphere. Mr Dean will also oversee the poolside Chickcharnies Pizzeria & Grille, serving pizza, burgers, chicken and local favourites for lunch daily. Prior to the Grand Lucayan, Mr Dean worked at numerous Bahamian resorts, and was executive chef at Sheraton Cable Beach Resort (now Melia Nassau Beach Resort); Sandals Emerald Bay Resort & Spa in Great Exuma; SuperClubs Breezes Resort in Nassau; and Ginn Sur Mer Old Bahama Bay. He was also the executive sous chef at the One & Only Ocean Club Golf Resort & Estates on Paradise Island, having also worked at Coconut Cove Hotel in Exuma and Radisson Cable Beach & Golf Resort.

NewCo2015. Mr Williams’ statement alludes to this, in which he says: “We are now uniquely placed right here in the Bahamas through Cable Bahamas’ investment in NewCo, Cable Bahamas’ provision of critical wireless infrastructure services to NewCo under a Managed Services Agreement, and through growing our world class Florida fibre-to-thepremises business, to drive such revenue and EBITDA growth.” Cable Bahamas, which has Board and management control at NewCo2015, will thus also be earning management fees and other income from providing services to the second mobile provider. The latter will also be paying rental and other fees to use Cable Bahamas’ tower and fibre-optic infrastructure to carry its voice and data traffic, ensuring the BISX-listed provider earns money on the ‘top line’ as well as the ‘bottom’ via its NewCo2015 investment and licence win. The potential benefits from services provided to NewCo2015 are shown in the preference share offering document under the heading ‘wireless’. Revenues from this segment are projected to jump more than five-fold between 2016 and 2020, growing from $5 million to $27 million, with its EBITDA moving from an initial $0.3 million loss to $19 million

Outside of the Bahamas, Mr Dean has worked as executive chef at Beaches Turks & Caicos Resort & Spa (Turks & Caicos); Sandals Royal Caribbean Resort & Spa (Jamaica); and Royal Plantation Spa & Golf Resort (Jamaica). He has experience as the owner operator/chef at Texas 12 Spice BBQ ‘N’ Smoke Pit in Nassau; yacht chef at Blue Guitar Motor Yacht; and director of culinary operations at Three Restaurant Management Group. Warwick Hotels and Resorts has invested $40 million in its four-star Paradise Island propery. Set along Nassau Harbour, the 12-floor, 250-room Warwick Paradise Island Bahamas has been designed to provide adult guests (18 years and older) with an allinclusive vacation experience.

(positive) in 2020. “The foregoing..... represents contracted revenues payable to Cable Bahamas from NewCo, and does not represent it’s 48.75 per cent ownership stake nor NewCo revenues and EBITDA,” the Cable Bahamas offering document said. “As US operations stabilise and NewCo ramps up, Cable’s revenues and EBITDA can be expected to strengthen the balance sheet and bring cash flow and capital ratios to within the company’s more traditional levels.” Cable Bahamas acknowledged that the preference share issue would impact its leverage or ‘gearing’ ratio, and forecast that debtto-EBITDA would be 5.81 times’ and 4.66 times’, respectively, at year ends 2016 and 2017. These, though, would be quickly reduced as NewCo2015 “ramped up” and debt was paid down. Cable Bahamas is planning to treat NewCo2015 as an independent company for accounting purposes, rather than consolidate the second mobile operator into its own figures. It acknowledged that NewCo 2015 would require “substantial investment” to take it through the first three years of its start-up phase, but added that the necessary funding had been secured from itself and fellow shareholder HoldingCo (the Government), plus its network vendor, to finance the build-out and launch.

Moody’s now challenges Govt over debt ratios From pg B1 in 2013-2014, and we estimate it rose to 65.2 per cent in 2015-2016,” Moody’s said on July 5. “While the rate of increase in the debt ratio is slowing, and despite the authorities’ continued fiscal consolidation efforts, it is difficult to assess at what level - and when - this ratio will peak, given the uncertainty on the economic outlook. “Consequently, during the review, Moody’s will examine the macroeconomic and fiscal conditions that would support the stabilisation of the Government’s debt metrics.” Moody’s analysis contrasts sharply with the Prime Minister’s optimism during the 2016-2017 Budget communication, when he forecast that the Government’s direct debt-to-GDP ratio had already peaked. “The ongoing rise of the Government debt burden will be arrested and the ratio of debt to GDP will decline to 64.1 per cent in 2016-2017, down from the peak of 64.6 per cent in 2015/16. It will fall steadily, thereafter, to stand in the area of 59 per cent in 20182019,” Mr Christie forecast. However, Moody’s latest data predicts that the Government’s direct debt-toGDP ratio (excluding contingent liabilities such as loan guarantees) will actually increase over the same period, rising from 65.2 per cent in 2015-2016 to 65.8 per cent in the current fiscal year.” And, while predicting that the debt-to-GDP ratio will continue to climb, moving in the opposite direction to the Government’s numbers, Moody’s also wants to closely examine the Government’s plans to contain spending.

“Moody’s will also assess the Government’s plans to rein in expenditures over the medium-term and what, if any, additional revenue measures may be implemented to further support the fiscal consolidation efforts,” the rating agency added. It thus adds its weight to both the Central Bank of the Bahamas and the private sector, which have both suggested that the Government needs to do more to contain recurrent (fixed cost) spending. The Government’s recurrent spending is set to increase by 7.7 per cent year-over-year in 2016-2017, rising by $166 million from $2.155 billion to $2.321 billion. However, it is projected to fall to $2.302 billion in 2017-2018, and $2.262 billion in 2018-2019, in line with Prime Minister Perry Christie’s pledge to reduce recurrent spending as a percentage of GDP. Still, Moody’s added: “We assess the Bahamas’ fiscal strength as ‘low’, owing to its relatively high debt burden – partially offset by moderate debt affordability, a captive domestic investor base, and a favourable maturity profile. “The debt-to-GDP ratio exceeds the ‘Baa’ median (42 per cent), having more than doubled over the last decade to an estimated 65.2 per cent by the end of 20152016. “Government interest payments relative to revenues have also increased to an estimated 13.8 per cent in 2015-2016 from less than 10 per cent in 2007-2008, suggesting a somewhat limited fiscal space compared with that of most peers. The Bahamas has the lowest fiscal strength score among sovereigns rated ‘Baa’.” This helps to explain

Cable Bahamas reiterated that second entrants to Caribbean and Latin American mobile markets over the past decade typically gained between 27-51 per cent market share within the first three years. “The level of EBITDA NewCo achieves in three to five years’ time will ultimately determine the value of Cable Bahamas’ investment in NewCo,” Cable Bahamas said last night. “Publicly available information from Digicel’s SEC filings in 2015 show that they have achieved typical EBITDA margins in the 32 per cent to 60 per cent range in markets where they entered as the second cellular operator.” Anthony Butler, Cable Bahamas’ president and chief executive, said: “Cable Bahamas has continued to grow since it acquired four Florida-based metro fibre and communications companies in 2013. “Through securing the second cellular license we now have further opportunity here in the Bahamas to accelerate that growth and secure our position of being the communications provider of choice for the country. “Across the world today there are only a handful of similar cellular licenses available, and so our investment in NewCo provides our investors with a unique and compelling opportunity, we believe, not to be missed.” Moody’s rationale in assessing whether to downgrade the Bahamas from its current ‘Baa2’ sovereign rating. The rating agency also pointed out that the Bahamas’ had achieved an average GDP growth rate of 0.3 per cent between 20112015, lower than its prior estimate of 1 per cent. Moody’s added that this was based on November 2015 data, again indicating how taken aback it was by Department of Statistics numbers, published earlier this summer, showing that the Bahamian economy had endured two consecutive years of recession during 2014 and 2015. “The Bahamas’ economy is the second smallest in the ‘Baa’ category and has managed average growth of just 0.2 per cent in the last four years,” Moody’s said. “For 2016 and 2017, we expect growth to remain below the economy’s potential growth rate of 1.5 per cent, after which economic performance could be boosted depending on the opening date of the Baha Mar resort. “Over the medium term, structural rigidities in the energy sector and labour market, as well as ease of doing business, may constrain growth to rates closer to 1.5 per cent.” Moody’s is also projecting lower GDP growth rates than the Government, pegging economic expansion at just 0.3 per cent and 1 per cent for 2016 and 2017, respectively, compared to the Christie administration’s estimates of 0.7 per cent and 1.6 per cent. It reiterated that the Bahamas’ GDP growth rate will remain “at this relatively low level over the medium-term unless several structural rigidities, including the efficiency of the energy sector, high levels of unemployment and a bureaucratic burden that thwarts ease-of-doing business, are addressed”.

THE TRIBUNE

Wednesday, July 13, 2016, PAGE 3

Standards Bureau officially unveiled THE Bahamas Bureau of Standards and Quality (BBSQ) enjoyed its official launch on Friday, as it bids to enhance consumer welfare and this nation’s export industries. The Bureau aims to maintain standards in areas such as agriculture, weights and measures, public and environmental healthcare, and other aspects of product safety and quality. Dr Renae Ferguson-Bufford, the Bureau’s director, has spearheaded its development since February 2013. Her research showed a need for the Bahamas to implement a quality standards infrastructure based on international requirements. This involved developing a metrology regime to ensure free and fair trade of goods and services, and building conformity assessment services. These include testing, market surveillance, certification and accreditation of Bahamian laboratories and other systems of operations. With the help of Bahamian and international partners, BBSQ aims to ensure this nation sustains quality living standards as it advances to greater integration with the world economy.

L to R: Jose Trejo, vhairmanv CROSQ (CARICOM Regional Organisation for Standards and Quality); Kevin McKinley, secretary general (acting), IOS (International Organisation for Standardisation); Hope Strachan, minister of financial services and local government; Perry G. Christie, Prime Minister; Claude Hogan, minister of trade, agriculture, lands, housing and the environment for Montserrat; Dr Renae Ferguson-Bufford, director, Bahamas Bureau of Standards & Quality (BBSQ); and Deryck Omar, chief executive, CROSQ (CARICOM Regional Organisation for Standards and Quality).

Union to Govt: Force Cable into industrial talks From pg B1 ex-Digicel executives to run the nation’s second mobile operator. He pointed to the latter’s record throughout the Caribbean, where trade unions have enjoyed little to no success in attracting members from the mobile specialist’s workforce. Mr Evans expressed hope, though, that the Government having to temporarily take 51.75 per cent majority ownership of NewCo2015 “might be a blessing in disguise” for the union and those it hopes to represent. “We’re hopeful the Government will go ahead and force Cable Bahamas to sit down and allow the workers of Cable Bahamas their constitutional rights to form a union, and enter into collective bargaining negotiations and an agreement,” Mr Evans told Tribune Business. “If there was a time when workers needed strong representation, it is now.” The Government has been forced to take majority NewCo2015 ownership, via the HoldingCo vehicle,

because it proved impossible to attract private investors to capitalise the latter with so many ‘financial unknowns’ surrounding the mobile liberalisation process. However, a private placement to attract such investors into HoldingCo is set to be launched in August, and closed by early September, meaning that there is only a two-month window for the Government to act on Mr Evans’s wishes. The BCPOU leader, though, gave a thinly-veiled warning that the Christie administration might suffer negative repercussions at the ballot box in the upcoming general election should it not accede to the union’s demands. “We definitely don’t welcome it,” he said of the licence award to NewCo2015 and Cable Bahamas, “but this is the hand we have been dealt, and we will do what we have to do. “This is election season, and we’ll see what the Government’s going to do. The Government has the power right now, but do they have the will to do the right

Correspondent de-risk requires ‘back up plan’ From pg B1 threat of sanctions by home country regulators, are the reasons most commonly cited by banks for withdrawing correspondent services from the Caribbean. Mr Rolle said the Central Bank was set to conduct another survey of its licensees to determine if any new problems or issues had arisen over the past year in relation to this issue. He urged all Bahamasbased institutions to make sure relationships with their correspondent counterparts were strong. “We know some of these institutions are getting out of the business no matter what, so an important part is to have contingencies or back up arrangements in place, always exploring where opportunities exist,” Mr Rolle told Tribune Business. He added that the Attorney General’s Office was leading an initiative “at the Task Force level” where all the regulators were working to strengthen areas identified as weaknesses and/ or risks in the anti-money laundering regime. Correspondent banks are those foreign entities that allow Bahamian financial institutions to provide services in their own countries, using their physical and electronic banking infrastructures. They give Bahamian banks, and their clients, access to the international capital markets and financial system, enabling transactions to clear and be settled on a timely basis, and foreign currency deposits to be taken. Foreign correspondent banks thus provide the key gateway to the world economy and financial system, lubricating the conduct of international commerce by Bahamian companies - an

access that is now being threatened region-wide. Such access is vital to an economy that imports virtually all it consumes. Abhilash Bhachech, the Central Bank’s inspector of banks and trust companies, said the regulator’s first correspondent bank ‘de-risk’ survey showed that while the impact was not systemic, relationships enjoyed by Bahamas-based financial institutions were either subject to greater scrutiny or being reduced. A recent IMF analysis found that while Bahamian institutions have come under greater scrutiny from their correspondents, there has been “temporary disruption” in only a few instances. “Financial institutions in the Bahamas have experienced additional scrutiny of their correspondent banking relationships, although only in a few cases has this resulted in temporary disruptions of correspondent

thing? We’ll hold them accountable if they don’t. “They say they’re the friends of labour. This is the time to prove it. We’ll remember it next year.” Mr Evans added that the union was “very, very concerned” that NewCo2015 will be run by ex-Digicel Caribbean chief, Damian Blackburn, and a team of executives who previously worked for the pan-Caribbean mobile specialist. “Digicel is the same creature,” he added. “They don’t allow workers there to have a union, which prevails as well in the countries they operate in.” The BCPOU has been attempting to establish a presence among Cable Bahamas’ workforce with little to no success for more than two decades now. Its efforts appear to have been given added urgency both by successive downsizings at the Bahamas Telecommunications Company (BTC) in recent years, which have cost it members, and the possibility of attracting new ones from both Cable Bahamas’ and NewCo2015’s workforces. Mr Evans said it was “disheartening” and “so disappointing” that Cable Bahamas had won the second mobile licence, as he critibanking services,” the IMF said. “Five financial institutions (representing about 19 per cent of the assets of the banking system) have recently lost one or more correspondent banking relationships.” The IMF added that the money transfer and remittances business has been impacted as well, along with business lines including credit card payments, cash management, investment services, and clearing and settlement. “Although the impact has been limited so far, further pressure on correspondent banking relationships could have an adverse effect on the financial sector and increase costs of outgoing remittances in the Caribbean,” the Fund said. “Indeed, the Bahamas is a source of remittances to other countries. In Haiti, for example, the impact of this spillover would be immediate, as about 75 per cent of remittances from the Bahamas to Haiti are paid and received in the same day.”

cised the company’s past performance towards both its customers and workers. Both he and other union leaders, especially Bahamas Public Service Union (BPSU) chief, John Pinder, have publicly backed the rival bid by Virgin Mobile (Bahamas). There appears to have been a ‘convergence of interests’ between the two sides over the mobile licence, with the unions - especially the BCPOU - seeking to expand their membership and influence, and Virgin Mobile (Bahamas) wanting to defeat Cable Bahamas for the licence. Mr Evans argued that Virgin Mobile (Bahamas), as a completely new player, would have brought greater levels of investment and employment to the market, suggesting it needed 140 more employees than NewCo2015 - which is able to piggyback off Cable Bahamas - requires. “They would have brought in their own money, so new money would have been coming into the

country,” Mr Evans told Tribune Business. “We did meet with one of their [Virgin Mobile] principals; we met with him a few times. We were very impressed with their proposal and their approach; for Bahamians to come in from the very top right down to the workers, as opposed to bringing in expatriates from away.” Mr Evans confirmed that the Virgin Mobile (Bahamas) executive the unions met with was John Gregg,

former chief financial officer for UK cable company, NTL. Mr Gregg was a principal in the Bluewater Communications Holdings group that was negotiating to buy BTC under the first Christie administration, although that deal was rejected by the Ingraham government. Bluewater was represented, while he was in private practice, by now-deputy prime minister, Philip Davis.

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PAGE 4, Wednesday, July 13, 2016

THE TRIBUNE

Lower-cost biotech drug gets thumbs up from FDA panel similars, which have the potential to generate billions in savings for U.S. insurers, doctors and patients. But it could take years for those savings to arrive. Evercore ISI analyst Mark Schoenebaum says the earliest Amgen could launch its product would be March 2017, though that would risk infringing patents which Abbvie says protect its drug until at least 2022. Wall Street analysts expect the patent issue to be fought in court, and then for Amgen’s drug to launch sometime between 2018 and 2022. First approved in 2002, Humira has long been among the most profitable drugs in the world. It accounted for 60 percent of Abbvie’s total revenue last year. The injectable drug, which blocks chemicals linked to inflammation, is approved for multiple uses, including rheumatoid ar-

thritis, Crohn’s disease and psoriasis. Thousand Oaks, Califbased Amgen is seeking FDA approval to market its version, known only as ABP 501, for seven diseases. Amgen is itself a biotech powerhouse, and it too has medications facing competition from cheaper versions. The company is working to hedge those loses by developing lower-cost versions of competitors’ drugs. Biotech drugs are powerful, injected medicines produced in living cells that are typically much more expensive than traditional, chemical-based drugs. In 2015, six of the 10 top-selling medicines globally were biotech drugs, with more than $56 billion in combined sales. The FDA only approved the first lower-cost biotech drug last March, a Novartis version of the Amgen drug

Neupogen. Pfizer won approval to market a second biosimilar in April, a version of Johnson & Johnson’s Remicade, but it is not yet for sale. Questions remain about just how much savings U.S. biosimilars will deliver. Novartis’ Zarxio sells for 15 percent less than the original Neupogen. Experts predict biosimilar discounts of 15 percent to 30 percent in the U.S. In Europe, where governments regulate prices, discounts are higher. Development of lowercost anti-inflammatory drugs like Humira is considered pivotal in reducing U.S. spending on specialty drugs, which has doubled to $150 billion since 2010, according to IMS Health. On Wednesday, the same panel of FDA advisers will review a Novartis version of Enbrel, which is marketed by Amgen.

Bank chief’s warning on ‘government interference’

pure moral hazard.” Mr Sunderji acknowledged that loan delinquencies were “perhaps the biggest problem facing the industry”. Referring to the Mortgage Relief Plan, he added: “The Government of the Bahamas is keen to rescue Bahamians ‘underwater’ and wants banks to consider offering the mortgages to them at close to written down value.”

This, he suggested, would enable banks to “free up” bad debt expenses and have more capital to lend. “The bank has 231 delinquent loans valued at over $20 million, with an additional nearly 50 loans becoming delinquent just in 2015,” Mr Sunderji said of Fidelity Bank (Bahamas). “It’s a tough trading environment, very hard. Quarter-over-quarter we’re about on track. We’re track-

WASHINGTON (AP) — The second-biggest selling drug in the world could get some cheaper competition in the U.S., after a federal panel endorsed an alternative version of the pricey medication used to treat rheumatoid arthritis and other inflammatory diseases. A panel of Food and Drug Administration advisers voted unanimously in favor of Amgen’s version of AbbVie’s Humira, a biotech drug that raked in nearly $15 billion last year, according to IMS Health. While not binding, the recommendation likely paves the way for FDA approval of the knockoff drug. For years, biotech drugs faced no competition because there was no regulatory way to approve copycat versions, even after patents had expired. If approved, Amgen’s drug would join a new wave of so-called bio-

From pg B1

mortgagors, Mr Christie said: “We want to ensure that a Bahamian who is delinquent is afforded opportunities to retain his or her home or, if all else fails, gives up that home in a dignified manner. “To achieve this objective of which I have spoken - to keep Bahamians in their homes - a revised Homeowners Protection Bill will be presented to this House for passage before the end of this calendar year. We are in the process of settling this.” The Government is also under pressure on this issue from Marco City MP, Gregory Moss, who had introduced similar legislation in the House of Assembly as a Private Members Bill. Mr Sunderji, meanwhile, said there appeared to be a correlation between an increase in borrower delinquencies and the announcement of Mortgage Relief Plans by the Government. “Every time they announce a Mortgage Relief Plan, people stop paying us,” he told Tribune Business. “We’ve noticed a trend because people want to take advantage of it. It’s

incarnation, many in the banking industry saw it as well-intentioned legislation that would provoke numerous unintended consequences. While the Bill is designed to make troubled Bahamian borrowers more secure in their homes, it would have made it far more difficult, costly and time consuming for banks to secure - and take possession of - distressed assets. And inserting the already-clogged court system into the contract between lender and borrower would have provided a further disincentive for banks to lend, Tribune Business was told then, or entice them to raise interest rates to compensate for the increased risk. The end result, industry sources said, would have been a further pull-back in commercial bank mortgage lending, exacerbating the current Bahamian housing crisis. Prime Minister Perry Christie, in his 2016-2017 Budget address, confirmed that the Homeowners Protection Bill was back on the Government’s agenda, and viewed as a complement to the Mortgage Relief plan. Revealing that the Government was in discussions with the Clearing Banks Association over guidelines on how to treat delinquent

PICTURED is AbbVie’s signature drug Humira, in Houston. Humira, the second-biggest selling drug in the world, could soon get some cheaper competition in the U.S., after a federal panel, yesterday, endorsed an alternative version of the pricey injectable medication used to treat various inflammatory diseases. (AP Photo)

NOTICE ACETA INVEST & TRADE CORPORATION In Voluntary Liquidation

NOTICE

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, ACETA INVEST & TRADE CORPORATION is in dissolution as of June 23, 2016.

The Utilities Regulation and Competition Authority (URCA) invites interested entities to submit proposals for the provision of audit services. The term of the audit engagement is for three (3) years – reporting on the financial statements for the years ending 31 December 2016, 2017 and 2018.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator. LIQUIDATOR ______________________

The deadline for submission is August 8, 2016. A copy of the Request for Proposal (RFP) may be downloaded from URCA’s website at www.urcabahamas.bs/

ADVERTISE TODAY! CALL THE TRIBUNE TODAY @ 502-2394 Isn’t Your Health Worth It?

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RADIOLOGIST

In the Imaging Department of Doctors Hospital

POSITION SUMMARY

• Interpret the results of diagnostic imaging procedures including magnetic resonance (MRI), computed tomography, radiography, mammography & bone density testing • Perform and interpret the results of ultrasound, fluoroscopy, and interventional procedures • Examine patients, obtain medical history and diagnose illnesses based on test results • Recommend additional tests and/or treatment plans • Collaborate with other medical professionals and ensure appropriateness of care • Instruct Imaging Technologists in desired techniques and/or protocols • Participate in continuous quality improvement activities

PERSONAL ATTRIBUTES

• Broad experience and exposure spanning all key radiological modalities • High energy and able to work under pressure • Keen attention to details • Strong communication skills • Values collaboration

QUALIFICATIONS/EDUCATION

• Post Graduate degree in Radiography and Board certified • 2-3 years imaging experience in a clinical setting • Strong technical knowledge and specialty training in one or more areas of radiology hr@doctorshos Email to: hr@doctorshosp.com Only short-listed candidates will be contacted for interviews. Application deadline: Friday, July 22, 2016

Please submit resume to: The Human Resources Department Doctors Hospital P.O. Box N-3018 Nassau, Bahamas Fax us at: (242) 302-4738 Email: info@doctorshosp.com Website: www.doctorshosp.com

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CHOICE FOR THE FAMILY @JOYFMBAHAMAS WWW.FACEBOOK.COM/JOYFM1019

THE TRIBUNE

Wednesday, July 13, 2016, PAGE 5

What to expect as May starts untangling the UK from the EU LONDON (AP) — Home Secretary Theresa May is set to become Britain’s new prime minister Wednesday when David Cameron steps down after six years at 10 Downing Street because of his defeat in the country’s referendum on European Union membership. May will be in charge of implementing the voters’ June 23 decision to leave the EU and strike an independent path. Here are answers to some questions about what happens next: WHEN WILL THE NEW PRIME MINISTER START THE LEGAL PROCESS TO LEAVE THE 28-NATION EU? To start the process of a British exit from the EU, or Brexit, a prime minister must invoke Article 50 of the EU treaty. May has said she will not start the process until next year, but she may face strong pressure to accelerate the plan. She is becoming prime minister earlier than anticipated because her opponent withdrew from the Conservative Party leadership contest, and some leaders of the campaign to leave the EU want the legal process to begin right away. EU leaders are also pressing for faster action. May has said there is no rush and that she wants Britain to establish its negotiating priorities before starting the Article 50 process, which imposes a two-

year deadline on negotiations. May did not back the campaign to leave the EU, expressing a preference to remain part of the bloc, but she now emphasizes that “Brexit means Brexit” and says the voters’ wishes will be respected. WILL SHE BE ABLE TO CHANGE HER MIND ABOUT BREXIT IF THE POLITICAL AND ECONOMIC CLIMATE SHIFTS? Article 50 is designed to be irreversible once it is invoked, in large part to discourage countries from threatening to leave in an attempt to negotiate more favorable terms. However, no major country has ever left the bloc before so it is not entirely clear if some way could be found to keep Britain from leaving even after the process has started if that’s what British and EU leaders want. The EU has been known for its ability to improvise, or fudge, solutions as needed, and if faced with economic turmoil it’s possible the union could find a way to remain intact. IS MAY PLANNING TO HANDLE THE BREXIT PROCESS HERSELF? May has said she will appoint a Cabinet-level Brexit minister along with a Brexit department to spearhead the negotiations with other European nations. It is not

clear who that person will be. The process will not be simple: Thousands of treaties and agreements are in place and will have to be unraveled. Britain will also be seeking new trade arrangements with its former union partners. Many aspects of Britain’s economic and judicial systems have been intertwined with the EU for several decades and ties will now have to be severed. Just separating Britain from the EU bureaucracy will require a whole new bureaucracy to be established to manage the process. But May’s political future depends on a successful divorce agreement and she may choose to become directly involved, particularly in delicate talks with other European leaders. WILL MAY KEEP BRITAIN IN THE SINGLE EUROPEAN ECONOMIC MARKET EVEN AFTER IT LEAVES THE EU? This is one of the great unknowns. May has indicated she wants British firms to keep having unfettered access to lucrative European markets, but has insisted Britain can no longer accept the freedom of movement that has allowed EU nationals to move to Britain without any restrictions. European leaders guided by EU principles may be unwilling to give Britain access to Eu-

BRITAIN’s Home Secretary Theresa May gestures as she leaves after attending a cabinet meeting at 10 Downing Street, in London, yesterday. Theresa May will become Britain’s new Prime Minister on Wednesday. (AP Photo) ropean markets without accepting the free movement of people. Cameron was unable to win meaningful compromises on this point during his tenure, and it is not clear if May will fare any better. This is really the heart of the matter, with much riding — for both sides — on finding some common ground. MAY IS COMING TO POWER WITHOUT HAVING BEEN ELECTED AND THE OPPOSI-

TION IS CALLING FOR AN EARLY GENERAL ELECTION. IF ONE IS HELD, HOW WOULD IT AFFECT MAY’S PLANS FOR BREXIT? The next scheduled general election is set to be held in 2020, but Parliament has the power to schedule an earlier vote. May said when she launched her leadership bid in June that she did not see a need for an early election. Once she is in power, it is possible she may ask

Parliament to hold an early election if she feels a new election would add to the Conservative Party’s slim majority in Parliament. If an election is held, and if a candidate who strongly favors EU membership would be elected with a clear mandate from the public to keep Britain inside the bloc, it could have a substantial impact on the Brexit plan. But May is unlikely to risk an early election unless she is extremely confident of victory.

Christmas in July? Amazon’s ‘Prime Day’ is back NEW YORK (AP) — Amazon’s Fire TV stick and a curved Samsung TV were top sellers during Amazon’s second annual “Prime Day” sales bonanza. The e-commerce powerhouse launched the event last July to promote its $99 annual Prime loyalty program, which offers free two-day shipping and other perks. Aside from a brief problem some customers had placing “Lightning Deals” into baskets Tuesday morning, no major hitches were reported. ChannelAdvisor, which works with 3,000 retailers to sell products online including marketplaces like Amazon, said mid-day Tuesday that sales were in line with Prime Day 2015 in the U.S. PiperJaffray analyst Gene Munster said ChannelAdvisor’s estimate might be conservative, however. He predicts Prime Day sales will grow 37 percent compared with the sale day a year ago due to more Prime members

overall, better press coverage and stronger brand and merchant engagement with the date. Amazon said the Fire TV stick, which was on sale for $15 off at $25, was the top seller of the day. Some other big discounts were on large screen TVs and Amazon devices such as its Echo smart speaker, Kindle e-reader and Fire TV-streaming device. Shoppers in the U.S. snapped up 22,000 TVs as of 11 a.m. E.T., Amazon said. Shoppers had to be members of Amazon’s Prime loyalty program to get the discounts, but there is a 30-day free trial. Other deals included $50 off Amazon’s Echo smart speaker on sale at $130, half off toys including Nerf and Barbie brands and up to 60 percent off athletic shoes. Most deals were on a limited-time basis, encouraging shoppers to check the site throughout the day. In its study of about 2,000

products at 6 a.m. Tuesday, retail analytics firm Market Track said average discounts ranged from 20 percent to 30 percent, with the best deals on high-demand products including tablets, tools, video games, soundbars and toys. Rick Ostopowicz, a marketing communications manager for a chemical company in Catonsville, Maryland, was disappointed in the deals last year during Prime Day. But this year he found deals on electronics: he bought bone conduction headphones that were $14 off at $35.99, a Wi-Fi range extender $50 off at $149 and a Wi-Fi router that was $30 off at $49. “Pretty good savings so far,” he said, adding that he would have skipped the headphones without the Prime Day discount and Amazon’s generous return policy. Debi Hyland, who works in IT in Henderson, Colorado, created an advance wish-

A UNITED Parcel Service driver delivers packages from Amazon.com in Palo Alto, Calif. Amazon is offering deals July 12, 2016, for the second edition of its annual “Prime Day” promotion. (AP Photo) list of the items she was interested in, so she could get notifications when they went on sale. By 6:30 a.m., she had picked up a Silhouette Cameo, an electronic cutting machine used for arts and crafts projects, for $50 off at $179.97. “Total score,” she said.

EU says new Israeli law risks undermining democracy JERUSALEM (AP) — The European Union on Tuesday criticized a new Israeli law that increases regulation of many human rights organizations, saying it risks “undermining” Israel’s democratic ideals. The law, passed late Monday, imposes new reporting requirements on nonprofit groups that receive more than half of their funding from foreign governments. While its supporters, including Prime Minister Benjamin Netanyahu, say the law is meant to increase transparency, it applies almost exclusively to liberal groups, often funded by the EU, that are critical of Israeli policies toward the Palestinians. More hawkish groups are largely exempt

because they tend to receive funding from private individuals. Members of Israel’s hardline coalition have long accused the EU of meddling in Israeli affairs by funding such groups. European officials say it supports groups that promote democracy or help the Palestinians to develop their economy and governing institutions as a step toward establishing an independent state at peace with Israel. In a statement Tuesday, the EU said the new law goes “beyond the legitimate need for transparency,” and seems “aimed at constraining the activities of these civil society organizations working in Israel.” “Israel enjoys a vibrant

Legal Notice

democracy, freedom of speech and a diverse civil society which are an integral part of the values which Israel and the EU both hold dear,” it added. “This new legislation risks undermining these values.” In Washington, State Department spokesman John Kirby said the U.S. was concerned the legislation could have a “chilling effect” on the activities of non-governmental organizations. He said President Barack Obama has made clear that “a free and functioning civil society is essential and governments must protect freedoms of expression including dissent, association and create an atmosphere where all voices can be

heard.” Israeli nonprofits were already required to report their sources of funding to a state registrar, and such information appears on their websites. The new law requires them to state that they rely on foreign funding in all communication with public officials and on TV, newspapers, billboards and online. Representatives of these groups must also declare they depend on foreign contributions to the heads of parliamentary committees when participating in meetings. An additional proposal that would have required their representatives to wear special badges in the parliament building was dropped.

Legal Notice

Some customers took to Twitter early Tuesday to complain about problems adding the “Lightning Deals” to their carts, but that problem was resolved by midmorning, Amazon spokeswoman Ana Rigby said. Rivals countered Prime

Day with deals of their own. Wal-Mart has cut prices throughout the month on a host of products online. Macy’s online site touted a “Black Friday in July” sale that runs through Sunday. J.C. Penney and Toys R Us offered their own sales too.

Legal Notice

NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

CORPORATE ADVISORY LTD In Voluntary liquidation

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000) CORPORATE ADVISORY LTD is in Dissolution.” The date of commencement of dissolution is the 8th day of July, 2016.

INES MONTALDO Plaza Cagancha 1145 Piso 6 Liquidator

Legal Notice

NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

DIXON EQUITIES LTD.

LEADON SERVICES LIMITED

GLOBAL ASSET FUND LTD.

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000) DIXON EQUITIES LTD. is in Dissolution.”

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). LEADON SERVICES LIMITED, is in Dissolution.”

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000). GLOBAL ASSET FUND LTD., is in Dissolution.”

The date of commencement of dissolution is the 8th day of July, 2016.

OSCAR MONTALDO Plaza Cagancha 1145 Piso 6 Liquidator

ROCKWELL LTD., of #25 Mason Complex, Stoney Ground, The Valley, Anguilla. Liquidator

CHAN Che Wai of 11/F., Dawning House, 145 Connaught Road Central, Hong Kong Liquidator

In Voluntary liquidation

PAGE 6, Wednesday, July 13, 2016

THE TRIBUNE

New data-sharing rules for EU and US adopted BRUSSELS (AP) — New rules governing transAtlantic data transfers were formally approved Tuesday, months after Europe’s top court ruled against the previous arrangements amid concerns over the surveillance activities of U.S. intelligence agencies. The European Union and the U.S. say the new Privacy Shield imposes stricter obligations on American companies, including the likes of Facebook and Apple, to safeguard the personal data of individuals, from health matters through to social media activities. Critics argue the new framework, which comes into force Aug. 1, doesn’t go far enough, that consumer protections are not strong enough and that the possibility of blanket surveillance from U.S. agencies remains. Another court challenge to the new arrangements is widely anticipated. As part of the deal, the U.S. government has promised that any access on national security grounds by public authorities to personal data transferred under the new arrangements will be subject to “clear conditions, limitations, oversight and preventing generalized access.” The two sides say that the deal also includes stronger monitoring and enforcement by the U.S. Depart-

U.S. Secretary of Commerce Penny Pritzker speaks during a news conference in the Commission Berlaymont building in Brussels, Belgium, yesterday. The U.S. and European Union have announced approval of a new data privacy agreement that EU regulators say will impose stricter obligations on American companies to safeguard the personal data of individuals. (AP Photo) ment of Commerce and Federal Trade Commission, including increased cooperation with European authorities. Under the terms of the new deal, there will be an annual joint review of the pact and those who think their data has been misused have a route for complaint. And the U.S. will appoint a new official — an ombudsman based at the State Department — responsible for following up on European complaints. “The approval of the Privacy Shield is a milestone

for privacy at a time when the sharing of data is driving growth in every sector, from advanced manufacturing to advertising,” U.S. Commerce Secretary Penny Pritzker said. “For businesses, the free flow of data makes it possible for a startup in Silicon Valley to hire programmers in the Czech Republic, or a manufacturer in Germany to collaborate with a research lab in Tennessee,” she added. The deal potentially brings an end to a period of uncertainty for businesses

following last October’s decision by the European Court of Justice that the previous Safe Harbor pact was invalid because it did not adequately protect consumers when their data was stored in the U.S. The pact, which had been used by around 4,500 companies, had allowed the easy transfer of data from the EU by having U.S. companies promise to provide privacy protections equivalent to those in the EU. The EU court’s ruling that the pact was invalid opened up the possibility that data

privacy officers across the 28-country EU might be inundated by complaints from consumers worried about their privacy. “The adoption of Privacy Shield will enhance legal certainty for thousands of businesses on both sides of the Atlantic while providing an adequate level of protection for citizens’ data,” Markus J. Beyrer, the director general of lobby group BusinessEurope. Concerns over data transfers had been stoked by the spying revelations made by Edward Snowden, a former contractor at the U.S. National Security Agency. Snowden’s revelations prompted the complaint to the court from Max Schrems, an Austrian law student. Schrems said the new arrangements don’t go far enough and argued that the requirements on the U.S. authorities are not equivalent to those in the EU. “It is little more than a little upgrade to Safe Harbor,” he said. “It is very likely to fail again. ... This deal is bad for users, which will not enjoy proper privacy protections, and bad for businesses, which have to deal with a legally unstable solution.” Schrems’ view was echoed by Jan Philipp Albrecht, a European Parliament lawmaker for The Greens, who said the Euro-

pean Commission “signed a blank check for the transfer of personal data of EU citizens to the U.S., without delivering equivalent data protection rights.” As a result, there is widespread speculation that another challenge will emerge. Professor Felix Wu of Cardozo Law School in New York said “someone is surely going to challenge it” but that on balance he anticipated the European Court would back Privacy Shield. Scott Vernick, a partner and head of data security at Fox Rothschild LLP in Philadelphia, also thinks “there’s a better than even chance” the new deal will withstand a legal challenge. “It seems to me you will always have hard-line interests spoiling for a fight because they have a very particular view about privacy protections available in the EU as against the U.S.,” he said. Both U.S. Commerce Secretary Pritzker and Vera Jourova, the European Commissioner for Justice, said they are confident the new deal will stand up in court. “My confidence stems from the fact that we have designed the rules of Privacy Shield based on the previous Court judgment,” Jourova said.

JPMorgan Chase CEO says bank will raise minimum pay

SHOWS the Chase bank logo in New York. In an op-ed published yesterday, in the New York Times, JPMorgan Chase said it will give raises to 18,000 tellers, customer service employees, and other workers over the next two years. (AP Photo)

NEW YORK (AP) — JPMorgan Chase says it will give raises to 18,000 tellers, customer service employees, and other workers over the next two years. In an op-ed published Tuesday in the New York Times, JPMorgan Chase Chairman and CEO Jamie Dimon wrote that the bank will raise its minimum pay to a range of $12 to $16.50 an hour, depending on market and location factors. Its current minimum pay is $10.15 an hour. Dimon also writes that the bank

MARKET REPORT TUESDAY, 12 JULY 2016

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

will invest more in training that helps workers get promoted to higher-paying positions. Dimon wrote that wages for many Americans haven’t budged much in recent years and said the increase in pay will help the bank’s employees benefit from the growing economy. “Too many people are not getting a fair opportunity to get ahead,” he wrote. Dimon also advocated expanding the Earned Income Tax Credit. The federal minimum wage has been $7.25 an hour since 2009, but since early 2015, major U.S. companies including Wal-Mart, Target and McDonald’s have announced pay increases for at least some of their employees. On Mon-

day, coffee chain Starbucks became the latest to do so. Over the same period, pay for entry-level workers has also become a contentious political issue. President Barack Obama raised the minimum wage for federal contract workers to $10.10 an hour in 2015, and earlier this year, California and New York moved to raise their statewide minimum wages to $15 an hour. Voters in several states will also consider raising wages this fall. A draft of the Democratic Party platform adopted over the weekend calls for the federal minimum wage to be raised to $15 over time. Republican candidate Donald Trump says he favors leaving the issue to the states.

BISX ALL SHARE INDEX: CLOSE 1,951.67 | CHG 0.16 | %CHG 0.01 | YTD 127.72 | YTD% 7.00 BISX LISTED & TRADED SECURITIES 52WK HI 3.62 17.43 9.09 3.50 4.70 0.18 8.34 8.35 6.10 10.60 15.50 2.72 1.60 5.80 8.50 11.00 7.90 6.90 12.25 11.00

52WK LOW 2.21 17.43 9.09 3.14 4.70 0.12 5.67 7.25 5.50 6.85 14.49 2.25 1.27 5.51 6.00 9.85 6.01 5.55 11.75 10.00

PREFERENCE SHARES 1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 105.50 100.00 100.00 100.00 105.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 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

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE

LAST CLOSE 3.62 15.85 9.09 3.50 5.22 0.12 6.56 8.35 5.84 10.58 14.49 2.56 1.41 5.80 8.50 9.87 7.90 6.36 11.93 10.00

CLOSE 3.62 15.85 9.09 3.50 5.22 0.12 6.56 8.35 5.84 10.58 14.49 2.75 1.41 5.80 8.50 9.87 7.90 6.36 11.93 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 0.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

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

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

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

LAST SALE 100.00 100.00 100.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330

114.15 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

114.71 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

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

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

VOLUME

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 11.9 11.7 8.4 15.9 N/M N/M 35.5 15.2 11.5 19.6 27.4 29.3 8.5 11.4 13.9 10.3 12.2 9.0 15.8 0.0

YIELD 2.49% 6.31% 0.00% 4.57% 0.00% 0.00% 2.85% 3.11% 3.42% 3.40% 4.21% 2.18% 2.84% 4.14% 3.24% 0.00% 3.54% 1.89% 5.36% 0.00%

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

0.0 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%

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

MUTUAL FUNDS 52WK HI 1.97 3.82 1.91 160.64 138.35 1.44 1.67 1.55 1.06 6.67 8.16 5.81 10.66 10.12

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.38 1.53 1.47 1.03 6.11 6.93 5.55 10.37 8.65

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 Bah Int'l Investment Fund Principal Protected TIGRS, Series 5 Royal Fidelity Int'l Fund - Equities Sub Fund

NAV 1.97 3.83 1.91 164.74 133.64 1.44 1.67 1.55 1.06 6.67 8.01 5.81 10.66 8.65

YTD% 12 MTH% 1.35% 4.06% 1.43% 6.57% 0.70% 3.23% 1.67% 5.13% 0.66% -3.41% 1.89% 3.91% 2.32% 8.70% 1.68% 5.28% 2.77% 1.26% -0.14% 9.15% -1.87% 15.62% 0.83% 4.82% 70.00% 2.80% -6.29% -13.65%

NAV Date 30-Apr-2016 30-Apr-2016 29-Apr-2016 31-Mar-2015 30-Sep-2015 30-Jun-2016 30-Jun-2016 30-Jun-2016 30-Jun-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-2016 29-Feb-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 - 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

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

A “Now Hiring” sign hangs in the window of a Dollar General store in Methuen, Mass. Yesterday, the Labor Department said that U.S. employers advertised fewer jobs and hired fewer people in May. (AP Photo)

US job openings, hiring fell in May WASHINGTON (AP) — U.S. employers advertised fewer jobs and hired fewer people in May — a bad month for the U.S. labor market before a surge in hiring in June. The Labor Department said Tuesday that job openings slid to 5.5 million in May, the fewest since December and down nearly 6 percent from a record 5.8 million in April. Employers hired 5 million people in May, down slightly from April. The number of people quitting their jobs, which can reflect workers’ confidence in their job prospects,

also ticked down in May. Still, the level of job openings and hiring overall “remain quite strong,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a research note. Openings are well above where they stood before the Great Recession. The number of layoffs and firings fell slightly in May to the lowest level since July, suggesting that employers remain confident enough in the economy to hold on their workers. In an earlier report, the department had said the U.S. economy generated just 11,000 jobs in May, fewest since 2010. But hiring bounced back in June as employers added 287,000 jobs, the most since October. The unemployment rate rose to 4.9 percent in June. But that was largely for a good reason: More Americans sought jobs, though most didn’t immediately find them.

NOTICE

NOTICE is hereby given that NELMA ESPINOSA RUBIO of #65 Esher Court, Mayfield Park(East), Freeport, Grand Bahama, 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 6th day of July, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PAGE 8, Wednesday, July 13, 2016

THE TRIBUNE

Dow Jones industrial average closes at a record high NEW YORK (AP) — The stock market reached another milestone Tuesday as the Dow Jones industrial average closed at a record high. A day earlier, the broader Standard & Poor’s 500, a widely used benchmark for index funds, also reached a record-high close. Both indexes beat peaks set in May 2015. The Dow, which is made up of just 30 stocks, is an older and better-known barometer of the market than the S&P 500, but professional investors generally pay much closer attention to the S&P 500. The Dow rose 120.74 points, or 0.7 percent, to 18,347.67. That is 35 points higher than its previous closing high set on May 19 last year. The S&P 500 gained 14.98 points, or 0.7 percent, to 2,152.14. The Nasdaq composite rose 34.18 points, or 0.7 percent, to 5,022.82. The Nasdaq is still lagging the other two main U.S. stock market indexes. The index, which is heavily weighted with technology and biotech stocks, erased its losses for the year on Tuesday. The Dow and S&P 500 are each up 5.3 percent for 2016, having roared back

following a big drop in January and early February. The S&P has soared 17.7 percent since reaching a low of the year of 1,829 on Feb. 11. Investors continued to show an appetite for taking on risk. The biggest gainers included energy companies, which have been benefiting from a recovery in the price of oil, materials companies and banks. Financial companies, which have lagged the market this year, have been rising in recent days as longterm interest rates move higher in the bond market. Higher rates mean banks can make more money from lending. Citigroup gained 93 cents, or 2.7 percent, to $43.44. Despite recent increases, however, bond yields remain near historic lows, a worrisome sign to many analysts. Just last week the yield on the 10-year Treasury note touched an all-time low. Bond yields tend to fall when demand for bonds rises, which can indicate that investors are seeking safety. “I wish we can be celebrating, but it’s a little disconcerting,” said Rob Bartenstein, CEO of Kestra Private Wealth Services. “You’ve got government bonds at historical lows and equity markets at historical

THE AMERICAN flag flies above the Wall Street entrance to the New York Stock Exchange. Stocks are opening solidly higher on Wall Street, yesterday, putting the market on track for another milestone. The Dow Jones industrial average was trading above its previous record high close in early trading. That came a day after the Standard & Poor’s 500 index closed at its own record high. (AP Photo) highs. That’s not something you see at the same time. ... I feel underinvested, but I’m not willing to chase stocks.” Sectors that investors tend to favor when they’re nervous, including utilities, phone companies and makers of consumer staples, all fell as investors moved money out of lower-risk assets. Bond prices also fell sharp-

ly, sending yields higher. Aluminum maker Alcoa kicked off the second quarter earnings season on a positive note by reporting revenue and profit that beat Wall Street expectations. The stock jumped 55 cents, or 5.4 percent, to $10.69. Earnings for companies in the S&P 500 are expected to fall compared to the year

ago period, but then rise in the next quarter. Seagate Technology surged $5.26, or 21.8 percent, to $29.35 after forecasting strong sales. It also announced it will cut 6,500 jobs, about 14 percent of its total. Benchmark U.S. crude added $2.04 to close at $46.80 a barrel in New York.

Brent crude, a standard for international oil prices, rose $2.22 to $48.47 a barrel in London. In other energy trading in New York, wholesale gasoline rose 5 cents to $1.43 a gallon, heating oil rose 5 cents to $1.46 a gallon and natural gas rose 3 cents to $2.73 per 1,000 cubic feet. In Japan, the Nikkei 225 index jumped 2.5 percent, a day after soaring 4 percent. Prime Minister Shinzo Abe has promised new government spending to help jolt Asia’s second-biggest economy back to life now that his Liberal Democratic Party has won in parliamentary elections. Investors are betting he’ll keep flooding the market with money by expanding bond purchases. Elsewhere in Asia, Korea’s Kospi edged up 0.1 percent and Hong Kong’s Hang Seng added 1.7 percent. In Europe, France’s CAC 40 rose 1.6 percent and Germany’s DAX added 1.3 percent. Britain’s FTSE 100 was flat. Shares of Nintendo jumped 12.7 percent in Tokyo, fueled by the craze for “Pokemon Go,” a smartphone game that’s become the top grossing app in the iPhone store less than a week after its release in the U.S., Australia and New Zealand.

McConnell says “slim” chance of vote on trade deal in 2016 WASHINGTON (AP) — Senate Majority Leader Mitch McConnell says “the chances are pretty slim” that the Senate will vote on a sweeping trade deal between the United States and Pacific Rim nations this year. The Trans-Pacific Partnership would erase many tariffs and other trade barriers between the U.S. and 11 other nations. Both Democratic presidential candidate Hillary Clinton and Republican rival Donald Trump have opposed it, as have many lawmakers concerned that it will take jobs away from Americans.

The trade pact has been one of President Barack Obama's priorities during his last year in office. Supporters of the pact have hoped Congress might take it up after the election and before the congressional session ends at the end of the year, since the next president is unlikely to be supportive McConnell, R-Ky., told reporters Tuesday that he hasn't decided yet whether the Senate will take it up, but it's unlikely. “With both the Democratic and Republican candidates for president opposing the agreement, it's

probably not the best time to be considering the agreement,” he said. Congress approved legislation last year that allows the measure to be approved by a simple majority without opportunities to amend it. That authority passed just 219-211 in the House, signaling problems ahead for the pact. McConnell noted that even if Congress doesn't act this year, the authority continues through the next president. “It's still out there to be considered or modified,” he said.

SENATE Majority Leader Mitch McConnell of Ky. during a news conference on Capitol Hill in Washington, yesterday. (AP Photo)