THE US has accused the Government of “stalling” the full enactment of anticorruption laws that would accelerate improved transparency and accountability in Bahamian governance.
The US State Department, in its just-released 2024 investment climate report on The Bahamas, cited campaign finance reforms and the creation of an Integrity Commission as two initiatives that have been “delayed” to leave this nation exposed to the threat of corruption and undue foreign influence in policy-making decisions.
In highlighted, in particular, what it described as the “complete disregard” by some Bahamian politicians and high-ranking public officials towards complying with the Public Disclosure Act, which
‘Complete disregard’ for Public Disclosure Act by some • Questions if BIA conversion to Bahamas Invest ‘priority’
mandates that they meet an annual deadline to disclose their net worth through providing information on their income, assets they own and liabilities such as mortgage debts.
The US report asserted that the Public Disclosure Commission, which oversees the filing of these financial declarations, has failed for the past 13 years to meet its legal obligation to publish reports on who complied and who did not. And it added that
the Commission’s last publication in the Government’s official gazzette, in 2011, only contained disclosures for 2008 - some 16 years ago.
Noting the frequent allegations of some officials “accepting small-scale ‘bribes of convenience’, and favourable treatment given to wealthy or politically connected individuals”, the 2024 investment climate report on The Bahamas also queried whether reforming the Bahamas Investment Authority
(BIA) into a more proactive promotions agency remains “a priority” for the Davis administration. It repeated prior concerns of “bureaucratic impediments” in the investment approvals process, citing “significant delays”, and even asserted that some investor applications have never been responded to by the Government and its relevant agencies. No details or examples, though, were provided.
While governance was again the US State Department’s area of greatest concern, it did acknowledge The Bahamas’ 64 out of 100 score in Transparency International’s corruption perceptions index as giving this nation a “notably transparent” ranking compared to all other 180 countries ranked.
And The Bahamas was also branded “an excellent
Bishop breaks with Christian Council on marijuana reform
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE CANNABIS Bill and associated reforms do not open up “carte blanche” marijuana use, a senior pastor asserted yesterday, provided the legislation is properly enforced and regulated.
100-job PI resort project gets planning go-ahead
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A DEVELOPMENT that aims to create 100 permanent jobs through becoming Paradise Island’s “first new hotel for many years” has received approval from the Government’s planning authorities.
The Town Planning Committee, in an e-mail, confirmed it recently approved the Paradise Island Yacht Club’s application to expand the existing site of the former Paradise Harbour Club and Columbus Tavern to a seven-storey, 101 unit resort.
HotelConsult Bahamas, the developer, pledged that the project will also create a similar number of construction posts and generate up to 30 percent of its energy needs from renewable sources
The Town Planning Committee’s decision also imposed conditions that the developer first obtain a Certificate of Environmental Clearance (CEC) from the Department of Environmental Planning and Protection (DEPP) before construction work can begin. And it must also receive approval from the Civil Design Section of the Ministry of Works regarding on-site drainage and internal driveways.
Bishop Simeon Hall, co-chair of the Governmentappointed commission that examined legalising medical marijuana, told Tribune Business he “didn’t expect any less” after the Bahamas Christian Council mounted a last-ditch intervention to persuade MPs not to approve the legislative package passed in the House of Assembly on Wednesday night.
conservative approach to social issues”, and said its members were wrongly “afraid” that it creates “an open door” to increased recreational use of marijuana and the presence of more drugs on Bahamian streets.
A former Christian Council president himself, he described it as having “a rather
Emphasising that he was personally against legalising marijuana use for recreational purposes, Bishop Hall told this
Taxi driver revolt on livery ‘hustling’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
TAXI drivers at Lynden
Pindling International Airport (LPI) were yesterday said to have “revolted” over complaints of unfair competitive practices that have come close to sparking violence.
Wesley Ferguson, the Bahamas Taxi Cab Union’s (BTCU) president, told Tribune Business that a “near-stabbing” almost occurred this past weekend over livery drivers allegedly muscling in on his members’ business at Nassau’s major aviation gateway.
During the public hearing for the development, residents voiced concerns over the extra traffic it will generate in a residential area of Paradise Island. They also expressed opposition to the proposed rezoning of one of HotelConsult’s land parcels, lot 13, from residential to commercial to facilitate a 74-space parking facility.
The developers, however, later amended their application, removing the plans to convert lot 13 to a parking garage and opting to build a 100-space car park on land leased from Atlantis. The site will take up a portion of Atlantis’ laundry and utilities facilities, which is already commercially zoned.
The Town Planning Committee, on granting its approval, said the proposed parking garage is to be built simultaneously with the renovation of the Yacht Club Building. The lease agreement between HotelConsult and Atlantis must be submitted to the Department of Physical Planning prior to it reviewing the building permit application.
He explained that yesterday’s protest was sparked by taxi drivers’ fears that Road Traffic Department officers are favouring their livery counterparts when it comes to calling up vehicles to transport tourists
By NEIL HARTNELL Tribune Business Editor
SEE PAGE B5
while lacking any or adequate insurance protection. “The challenge of rising property insurance costs and declining reinsurance availability in the region is ongoing,” Mr Major
SEE PAGE B5
WESLEY FERGUSON
BISHOP SIMEON HALL
ATLANTIS WINS FOUR WORLD TRAVEL AWARDS HONOURS
ATLANTIS yesterday announced it won four honours at the 2024 World Travel Awards held in Saint Vincent & the Grenadines on July 1.
The Paradise Islandbased mega resort said it was named as the ‘Caribbean’s leading conference hotel 2024’, the ‘Bahamas’ leading resort 2024’, the ‘Bahamas’ leading villa resort’ and the ‘Bahamas’ leading hotel suite’.
“We are incredibly honoured to have received these prestigious awards from the World Travel Awards” said Audrey Oswell, Atlantis’ president and managing director. “It’s a celebration of the hard work and passion that our entire team devotes to the
resort daily as they strive to deliver exceptional experiences to our guests. “We remain dedicated to maintaining our high standards and are excited to explore new opportunities for the resort as we continue to lead the way for hospitality in the Caribbean and globally.” Atlantis said the recognition as the ‘Caribbean’s leading conference hotel 2024’ demonstrated its performance in catering to business and conference travellers.
With more than 500,000 square feet (4,645 square metres) of meeting and convention space, including the Imperial Ballroom that can accommodate up to 4,000 attendees, smaller breakout and meeting rooms, the
Port meets with GB Power over electricity outage woe
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Grand Bahama Port Authority (GBPA) yesterday said it has met with the Grand Bahama Power Company (GBPC) to address the frequent power outages impacting the island’s residents and businesses.
Freeport’s quasi-governmental authority, which recently asserted that it remains GB Power’s regulator despite the Government’s efforts to hand these supervisory powers to the Utilities Regulation and Competition Authority (URCA) via the new Electricity Act, said discussions began after the utility confirmed it is suffering challenges with its base plant.
The GBPA said that, during the meetings, GB Power the difficulties it has encountered with its primary generating unit. It blamed this for the recent outages, and outlined a detailed plan to solve the
problem, while assuring that all issues will be resolved by the beginning of next week at latest.
“We understand the significant impact that these outages have on our community. GBPA’s operating protocol and regulatory framework agreement holds Grand Bahama Power Company accountable in matters such as this,” said Ian Rolle, the GBPA’s president. “Our priority is to ensure that our residents and businesses receive the quality of service they deserve. We will work diligently with GB Power to resolve these issues promptly.”
The GBPA added that itself and GB Power hold regular talks, and have an established practice of quarterly checks that assess the level of customer service under the regulatory framework. These regular interactions ensure GB Power maintains its mandated level of service, providing consistent and reliable power to the community.
resort said it is attracting business events of all sizes.
Atlantis added that its ‘Bahamas’ leading resort 2024’ honour reflected the
appeal of Aquaventure, its 141-acre waterscape of slides and river rides featuring 14 pools and five miles of beaches. It also includes
US SAYS GOV’T ‘STALLING’ ON
investment opportunity for US companies” due to its tax regime, which includes no income-based taxes at the moment, proximity and history of democratic stability. Yet the report also pointed out that The Bahamas’ score in the Transparency International survey has fallen by seven points compared to 2012.
“The current administration is working to amend several good governance laws. While efforts have been made in some areas, the Government has stalled full implementation of anticorruption legislation that would accelerate efforts to enhance transparency and accountability.
“The Government has not fully enacted its Freedom of Information Act (2017). Legislation to support an Integrity Commission and campaign [finance] reform have also been delayed. An independent Information Commissioner, supported by technical and administrative staff, was appointed in mid-2021, but the office is not fully operational.”
The Government will likely retort that the US should focus on its own problems before commenting on the internal issues of other countries such as The Bahamas. However, this
LAWS
year the US State Department paid special attention to the Public Disclosure Act and compliance with its provisions.
“The Public Disclosure Act, a legal anti-corruption mechanism, mandates that every senator and member of Parliament provide to the Public Disclosure Commission a declaration of assets, income and liabilities annually,” the investment climate statement said.
“When it comes to meeting the legal requirements under the Public Disclosure Act, some public officials have over the years shown a complete disregard. The Public Disclosure Act provides for the Public Disclosure Commission to examine every declaration furnished to it by MPs, senators and senior public officials and public appointees.
“It also requires that the Commission gazette reports so members of the public can see who declared and who did not. Over many years, the Public Disclosure Commission has failed to meet this legal requirement to publish reports,” the US State Department document continued.
“The most recently gazetted report is from December 2011, and it contained information on disclosures only up to 2008. The Public
largest open-air marine habitat in the world, with over 65,000 animals from 250 species making their home in natural ocean-fed lagoons and habitats.
The mega resort features five hotels, including the newly-renovated Royal Towers as well as The Coral, Harborside Resort, The Cove and The Reef. Guests visiting Atlantis this year will see the Barbie Bahamas Beach Vacation, a first-of-its-kind collaboration in the Caribbean, with Barbie-themed programming and entertainment taking place across the resort. The Bahamas’ Leading Villa Resort 2024 - Harborside Resort at Atlantis Paradise Island
Disclosure Commission is pushing to modernise the system of filing and publicising financial disclosures of public officials.”
Expanding on its governance and anti-corruption concerns, the US State Department report said that while retired Supreme Court justice, Keith Thompson, was appointed as information commissioner in mid-2021 and is now backed by an office and support staff, they are “not fully operational” yet and the Freedom of Information Act has yet to be fully implemented.
“Legislation to support an Integrity Commission and campaign [finance] reform has also been delayed. The campaign finance system remains largely unregulated with few safeguards against quid pro quo donations, leaving a vulnerability for corruption and foreign influence,” the document added.
An Integrity Commission would create a politicallyindependent body to receive and investigate corruption allegations. Legislation to form it, and give it legal standing, was first tabled in the House of Assembly by the Minnis administration in 2017 but never moved forward to a debate or second reading, and it died once Parliament was prorogued for the September 2021 general election.
The Davis administration pledged to revive this in its ‘Blueprint for Change’ election campaign manifesto, but has thus far yet to table any legislation in the House of Assembly, so the Integrity Commission delay runs across both FNM and PLP administrations.
“There are no specific protections for NGOs (non-governmental organisations) involved in investigating corruption,” the US State Department report added. “US firms have identified corruption as an obstacle to FDI (foreign direct investment) and have reported perceived corruption in government procurement and in the FDI approvals process.”
Again, no details or examples were provided, but the report added: “Bahamian laws provide criminal penalties for corruption, and the Government generally implemented the law effectively when applied. However, laws to combat corruption by public officials have been inconsistently applied.
“The Bahamas would benefit from a more robust enforcement of rules to prevent conflicts of interest related to government contracts. The country grapples with reports of corruption, including allegations that contracts have been directed to political supporters, isolated reports of officials accepting small-scale ‘bribes of convenience’, and favourable treatment given to wealthy or politically connected individuals....
“The absence of transparent investment procedures and the lengthy legal disputes resolution process pose challenges for investors. The Government has made some efforts to address these issues, but full implementation of anti-corruption legislation and other reforms is pending.
“US investors should be aware of the potential risks and focus on areas where they have a competitive advantage. Ongoing monitoring of the investment climate is recommended, particularly regarding government efforts to improve transparency and efficiency.”
Atlantis said the ‘Bahamas’ leading villa resort 2024’ reflects Harborside Resort’s offerings, while ‘The Bahamas’ Leading Hotel Suite 2024’ honour was obtained va The Bridge Suite at The Royal The ten-room suite has become a favourite for celebrities and dignitaries, with the likes of Beyonce, Michael Jackson, Tyler Perry and Oprah Winfrey staying over the years. Positioned high above the resort, the 4,750 square foot (1,445 square metre) suite connects the Royal Towers on the 17th floor, offering guests 360-degree views of the ocean and Paradise Island.
Oft-repeated concerns over so-called ‘red tape’ again made this year’s report which, for the first time, singled out the BIA - and whether the Government plans to transform this into Bahamas Invest - as a potential concern.
“Bureaucratic impediments are not limited to the National Economic Council approvals process. The country lags on international metrics related to starting a business, registering property, acquiring construction permits, accessing credit and resolving property disputes. Significant delays in the approvals process have occurred, including cases where the Government failed to respond to investment applications,” it said.
“A few years ago, the Government promoted plans to establish a new, independent agency – Bahamas Invest – to fasttrack FDI, mobilise local investments and improve bureaucratic delays, functionality and transparency. However, the embassy is not aware of progress towards establishing Bahamas Invest and it is unclear if these plans remain a priority. BIA continues its oversight of all FDI-related approvals and promotion.”
The concept of transforming the BIA into a proactive investment promotions agency, which would target the investors and industries that The Bahamas wants to attract in a manner similar to Jamaica’s JAMPRO, was first discussed under the former Minnis administration postCOVID and survived into its Davis-led successor.
Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, has said publicly several times that the plans to convert the BIA into Bahamas Invest are moving forward. However, less has been said about this in more recent times, although there has been no indication the Government has abandoned this idea.
The US State Department report may also have been inaccurate in asserting that the Ombudsman Bill, which would create a public office to investigate complaints of maladministration by government officials, has yet to be passed by the Senate despite clearing the House of Assembly in January 2024.
Tribune Business located a video showing Opposition senator, Maxine Seymour, debating the Bill on February 14 this year. It is unclear, though, whether the Senate passed the legislation or it went forward to get the required assent from the governor general that is needed to bring it into law.
“In January 2024, the Ombudsman Bill 2023 passed in the House of Assembly. The Bill establishes the Office of Ombudsman to investigate the administrative actions of any public authority and decide whether there is evidence of maladministration on the part of the authority,” the US State Department report said.
“The ombudsman is charged with making recommendations for improving administrative practices and procedures for the authorities subject to its investigations. However, the Bill still needs to be passed in the Senate to be enacted. It is unclear when this will happen.”
ATLANTIS RESORT AND CASINO
SOLAR AND STARLING DEMAND SOARS IN OUTAGE-HIT ISLANDS
By FAY SIMMONS
DEMAND for solar power and Starlink’s satellite Internet service is soaring in Eleuthera and other Family Islands due to frequent, long-lasting power outages and other utility instabilities.
Erick Darling, president and chief executive of HBS Systems, told Tribune Business that Eleuthera, Andros and New Providence make up the majority of his new connections.
He explained that in Eleuthera the major selling point is that residents are being “plagued” with consistent power outages that last up to four hours daily. While conducting installations on the island he said
the outages have become worse and, on Wednesday, Bahamas Power & Light’s (BPL) electricity supply was off all night.
Mr Darling said:
“Eleuthera is plagued with constant and consistent power outages. I never experienced outages like this, especially as I have solar where I live, but we had a power outage from last night straight until this morning, so I can only imagine what these people that live here are feeling.
“Primarily, right now, Andros, Eleuthera and New Providence, they are my biggest clients because they really feel the crunch, and then followed by Freeport and then Exuma.”
Last month, the Bahamas Telecommunications Company (BTC) revealed that its fibre optic cables serving Eleuthera were deliberately
cut in a bid to extort money from it over a land dispute.
The carrier, in a statement, said all mobile, TV, Internet and fixedline voice services were impacted in areas across Eleuthera after they were severed by what it alleges is an act of sabotage.
The property in question is located close to the island’s iconic Glass Window Bridge, and an individual - who was not identified - had claimed they own this land and were demanding that BTC pay them compensation for its use.
Mr Darling said due to this dispute, and other issues related to power outages and connectivity, more Eleuthera residents are opting to switch to Elon Musk’s Starlink Internet service which his company installs.
He added: “The Internet is the worst it’s ever been. I was told that the main submarine cable runs through a property near the Glass Window Bridge and the gentleman keeps sabotaging. So half of the island doesn’t have Internet or it’s very bad, so we do Starlink.
“We introduced Starlink to Eleuthera about four years ago, and now many homes are transitioning to Starlink satellite Internet.”
Mr Darling said he has also seen a high demand for solar installations and satellite Internet from Airbnb operators who want to ensure their guests are comfortable in spite of the utility outages while they can continue to receive bookings.
Clay Sweeting, minister of works and Family Island affairs, admitted this week that Eleuthera residents are
in a “dire situation” over utility woes.
Mr Sweeting, who is also the MP for central and south Eleuthera, said his constituents have “silently suffered” through frequent power outages and water disruptions for months.
He added: “For months, Eleutherans from Harbour Island to Bannerman Town silently suffered through a series of power outages, power surges and correlating the effects of prolonged disruption in the water supply and disruption in the delivery of communications.
“The situation on Eleuthera is dire. The lack of the services is now a public health crisis and also a serious safety issue. My constituents are suffering from heat exhaustion and mental exhaustion. My constituents have been
OPPOSITION SENATE CHIEF WARNS OF AIRPORTS IN ‘SERIOUS DISREPAIR’
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Opposition’s Senate leader yesterday urged the Government to address multiple Family Island airports that are in a state of “serious disrepair”.
Darren Henfield, while admitting that the former Minnis administration in which he served as foreign affairs minister “moved too slow” in addressing the issues at Family Island airports, said more should be done to ensure all are in “good, pristine order”.
He added: “Let me be the first to say that our administration, despite the challenges of Hurricane Dorian and COVID-19, moved too slowly. We moved too slowly with addressing issues we face with airports around the country. That said, however, like many Bahamians we are concerned about the state of our airports nearly three years into this administration.
“The state of airports from Inagua to Abaco are in some state or other of serious disrepair, and we have to do better. A tourist destination is dependent upon air travel, and so as we look at how we make travelling on airplanes safe we must also look at how we keep the runways and all the rest of these things, in good pristine order for airlift to bring visitors to various destinations across the country.”
Mr Henfield argued that Family Islands “deserve” the same level of facilities as those available in New Providence and Grand Bahama, and said the disparity “troubles” him.
He said: “As an island boy, I like to speak for Family Islands, because I believe in the Family Islands we deserve just what you have in New Providence. I don’t believe that New Providence and Grand Bahama should have anything better than we are able to get. Sometimes when you when see the disparity between some facilities in the city and some facilities on the island, it troubles you.
“I’m not here to throw stones today. All governments are guilty of this. We tend to, because the pundits of our population exist in these cities, New Providence and Grand Bahama, maybe Abaco third, Eleuthera and Exuma, we tend to focus more on where population mass is.”
Mr Henfield referenced a broken conveyor belt in San Salvador, and called for more autonomy and funding for local government to address minor issues instead of waiting on central government.
He said: “Family islands
like Eleuthera, Exuma and Abaco, and even San Salvador where we have a lot of visitors, we need to be able to put forward our best foot.
“In San Salvador recently, a couple of months ago, the conveyor belt wasn’t working. So imagine when they come to Club Med and they come to get their bags, and their first experience in our country is that they walk into a broken conveyor belt.
“As a former MP for an island, it is difficult to blame the Government for every little thing because there are people on the ground who should to be able to take care of minor issues. And that’s one of the reasons why we emphasise that local government should be given the facilities and funding that they need to be able to address minor issues like that, instead of having to rely always on central government to come and do these things.”
Mr Henfield also accused the Davis administration of cancelling plans for the airport renovation in Exuma, and called for work to begin there as it is a “booming economy” that is garnering more interest from second home owners.
He said: “I don’t know for the life of me why government do this - and any administration that I’m a part of, if we if we end up doing it, it will be out of absolute necessity - stop and cancel contracts that are underway to do things right.
“I don’t know why governments do that because it
takes so long. But to come to office and cancel an airport in Exuma that was well in.. and the member of parliament was there when we broke ground in your constituency. You stop the work. Why? And the thing now hasn’t start-up yet in earnest.
“Exuma is a booming economy. Exuma also has a lot now of second home interest that is coming because people have discovered the pristine beauty of some of these islands.”
Mr Henfield added the airport in Treasure Cay is in the same condition as it was three years ago, noting that second home owners such as Tom Brady and Michael Jordon have to leave their jets in a “grubby little airport’”.
He said: “The international airport in Treasure Cay, where I’m from, North Abaco, is in the same
condition that I left it in almost three years ago.
“I don’t know if the Government’s strategic plan is to leave it closed and just allow the people from north all the way down to Crown Haven to drive into Marsh Harbour to catch a flight. There looks to be something like an FBO being built there. I’m not sure as to who are the proprietors of that.
disenfranchised daily, and this is an unacceptable situation.”
Mr Sweeting said he spoke with both the BPL chief executive, Shevonn Cambridge, and Leon Lundy, minister of state in the Office of the Prime Minister, who has responsibility for the Water and Sewerage Corporation, on the outages and received an update on the situation. He said Eleuthera should start to experience “some relief” to their electricity woes starting next week with the generation engine on Harbour Island set to be repaired yesterday and the transmission line project in North Eleuthera expected to be completed within the next two weeks.
“Treasury Cay is a very important hub for Abaco. It services Baker’s Bay, Green Turtle Cay and points further north, where we have a lot of second homeowners that come. They bring these G5 jets, people like Michael Jordan and others, Tom Brady, who have homes in Baker’s Bay. They fly on these jets to a to a grubby little airport, and they are forced to leave them there. So these are some of the things that we must do to revolutionise this industry.”
DARREN HENFIELD
Bishop breaks with Christian Council on marijuana reform
FROM PAGE B1
newspaper that the Cannabis Bill and other accompanying legislative changes only permit its consumption for medicinal or religious purposes (Rastafarians). He added that the legal reforms forbid recreational use.
However, he conceded that this regime will only succeed if The Bahamas implements robust regulation and enforcement - an area where this country has often been found wanting.
Bishop Hall admitted his “biggest concern” remains whether the new laws and accompanying regulations will be sufficiently applied to prove the Christian Council’s fears wrong.
Arguing that alcohol abuse was “more destructive” than marijuana use, he said the Bahamian clergy were often too timid to confront and discuss social issues, adding: “We keep our heads in the sky, in heaven, while these things are passing in front of our faces.”
Voicing relief that the House of Assembly had finally moved the legislation forward, Bishop Hall said he would defer to the Government over whether all medical marijuanarelated ventures should be mandated to have majority Bahamian ownership as
opposed to the percentages stipulated in the reforms. While the cultivation, sale, distribution and transport of medical marijuana is being reserved exclusively for 100 percent Bahamian ownership, joint ventures where foreign investors can own up to 70 percent are being permitted in areas such as technical analysis, research and development and manufacturing and packaging.
The Free National Movement (FNM) earlier this week argued that all medical marijuana entities should be majority Bahamian-owned, but Bishop Hall declined to join them. “I support the Government on this issue,” he said. “I leave the logistics of the economics to the Government in their wisdom.”
The controversy over the Cannabis Bill, though, did not end there with the Christian Council making a last-minute effort to dissuade MPs from approving the legislation which was passed on Wednesday evening to now proceed to the Senate.
Bishop Delton Fernander, the Christian Council’s president, said in a statement that successive administrations have failed to justify or provide data showing how medicinal marijuana would benefit The Bahamas socially and economically.
100-job PI resort project gets planning go-ahead
FROM PAGE B1
Subsequent to the public hearing, Joshua Brooks, representative for HotelConsult Bahamas, pledged the developer will “do everything we can” to address the concerns of neighbours and other Paradise Island residents as it seeks to forge a “partnership” approach to make the development a success.
“Residents can rest assured that we will do everything we can to resolve their concerns where possible, and hope to work in partnership with the community to make the project
a success to the benefit of Paradise Island, our existing and future Bahamian workforce and The Bahamas as a whole,” he said. Paradise Yacht Club will feature 101 units overlooking Nassau Harbour via a seven-storey main building with a footprint of around 19,000 square feet. The 101 units, ranging from approximately 370 to more than 1,000 square feet, will each have a balcony with harbour views. The ground floor will host amenities such as a restaurant and retail areas, along with an outdoor gym and swimming pool.
LEGAL NOTICE
Hebbron II Investment Ltd.
INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)
In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), that Hebbron II Investment Ltd. (Registration no. 212324 B) is in dissolution. The date of commencement of the dissolution is the 17th day of July, 2024. The Liquidator of the Fund is Crowe Bahamas can be contacted at Harbour Bay Plaza, Shirley Street, Suite 587, P. O. Box AP-59223, Nassau, Bahamas. Email andrew.davies@crowe.bs
All persons having claims against the above-named company are required to mail and email their names, addresses and particulars of their debts or claims to the Liquidator before 17th day of August, 2024
Crowe Bahamas Liquidator
“We stand firmly against the introduction of a cannabis industry, the decriminalisation of small quantities of marijuana and the smoking of marijuana in any form and in any environment,” he argued.
“We have survived and thrived without a cannabis or hemp industry all these years, and we see no evidence or research to support that the introduction of such an industry would add any real economic value to our people or to our country.....
“We don’t see any positive return for The Bahamas by entering into the cannabis or hemp industry, but instead we see this as a dangerous and potentially damaging initiative that can lead to an increase in criminal activity and the further destruction of our communities inclusive of our homes, which is the fabric of our society.”
Bishop Hall, with the benefit of his position on the marijuana commission, broke ranks with the Council by saying of its reaction: “I didn’t expect any less. They are afraid. I still support the Christian Council but they are afraid of that being an open door for other things.”
He argued that the Council’s position failed to account for how prevalent marijuana is in Bahamian society already
and its widespread use on the streets. Bishop Hall said that, given the drug is already widely accessible for recreational use, legalising and regulating it for medicinal and religious purposes will not lead to greater quantities of marijuana in local communities.
“The mistake in that is I personally know of 15 places where you can get drugs,” he explained in response to the Christian Council’s position. “I have never taken marijuana myself personally, but they act as if the legislation will cause marijuana to be more accessible in the country. It’s accessible already. The horse is out.
“I understand all the dynamics of the Christian Council. I was once president of that body, and I understand their rather conservative approach to social issues. But marijuana, you can go in almost every direction and find it.”
Bishop Hall added that the commission he cochaired, besides calling for marijuana’s legalisation and regulation for medicinal and religious use, also advocated for the eradication of criminal records for Bahamians caught with small amounts of the drug for personal consumption. This is another recommendation which the Government has adopted but is opposed by the Christian Council.
Bishop Hall, though, described the expunging of criminal records for this offence as “the Christian thing to do” as this was preventing many young Bahamian men from getting jobs. “The person with a small bag should not be made a criminal,” he added, although he had no reservations about tougher punishments for those caught dealing and trafficking.
“People are acting as though legalising it is making more marijuana on our streets,” “Bishop Hall reiterated. “Marijuana is on our streets now. A lot of people are failing to recognise it’s on almost every street corner in The Bahamas now.
“I do not support marijuana for recreational use. The committee only said for medicinal and religious use, not recreational. That is being overlooked. It has medical value. Your doctor must prescribe the use of marijuana. Not everybody can do it. It’s not carte blanche for people to pick up marijuana. The doctor has to prescribe it like they prescribe medicine now.”
Bishop Hall urged the Government to drive this message home to the Bahamian people via an education campaign on what the new laws, and regulations, will permit on medical marijuana.
“Let’s take an intelligent approach, let’s do it,” he added. “Alcoholism causes more problems than marijuana. That doesn’t mean we are promoting marijuana. What we’re saying is alcohol abuse is more destructive that marijuana. That’s our opinion.
“I think we should sit down like the trained clergymen we are, and look at social issues. We don’t like to talk on these social issues. We keep our heads in the sky, in heaven, while these things are passing in front of our faces.
“I understand there are several hundred Bahamians under the doctor’s prescription and using marijuana for medical use. That gives credence for what we’re trying to do for medicinal, not recreational, use. There are hundreds of Bahamians using this to get an answer. That’s what we’re saying.”
However, Bishop Hall admitted that effective, robust regulation and enforcement will be key to achieving the vision set out by the Government and commission. “What I am concerned about is that, one, we are poor as a country on regulating things properly,” he told this newspaper. “If we regularise, we don’t enforce the laws. That is my biggest concern. We don’t have a good track record of regulating and enforcing the law.”
URSULA VON DER LEYEN REELECTED TO A SECOND 5-YEAR TERM AS EUROPEAN COMMISSION PRESIDENT
By MIKE CORDER and JEAN-FRANCOIS BADIAS Associated Press
LAWMAKERS at the European Parliament on Thursday reelected Ursula von der Leyen to a second 5-year term as president of the European Union's executive commission, giving her a comfortable majority and heading off a possible leadership vacuum.
Von der Leyen raised both fists in victory as the Parliament President Roberta Metsola read out the result at the legislature. She called her reelection a victory for her backers, lawmakers she called "pro-European, proUkraine (and) pro-rule of law."
The reelection ensures leadership continuity for the 27-nation bloc as it wrestles with crises ranging from the war in Ukraine to climate change, migration and housing shortages. Von der Leyen said she and her supporters are working "for a strong Europe," citing themes of prosperity, security and defense.
"But the most important is the overarching topic of strengthening our democracy," she said. "Our democracy is under attack from inside and from outside, and therefore it is crucial that the democratic forces stand together to defend our democracy."
The Greens/European Free Alliance group in the parliament voted for von der Leyen after receiving assurances from her on her commitment to Europe's climate initiatives, improving social policies including moves to provide affordable housing and to not do deals with the far right.
"The majority against the far right must hold for the future. We must not let our guard down in the face of growing far-right forces that work to strip away our rights and destroy our democracy," said the group's president Bas Eickhout.
A clear majority of 401 lawmakers in the 720-seat legislature voted for the German Christian Democrat after a speech in which she pledged to be a strong leader for Europe in a time of crisis and polarization.
Italy's far-right Premier Giorgia Meloni said in a video statement that her Brothers of Italy's party voted against von der Leyen because they didn't agree with the "method nor the merit" of the process that led to her re-election. However, Meloni added, "the cooperation with the Commission is not undermined."
The secret ballot came hot on the heels of strong gains by the far right, including Meloni's party, in last month's election for the European Parliament. Meloni's party won European
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NOTICE
RAHIM INVESTMENTS LIMITED
N O T I C E IS HEREBY GIVEN as follows:
(a) RAHIM INVESTMENTS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000.
(b) The dissolution of the said company commenced on the 16th July, 2024 when the Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said company is Leeward Nominees Limited, of Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, British Virgin Islands.
Dated this 17th day of July, A. D. 2024
Leeward Nominees Limited Liquidator
elections in Italy with 28% of the vote.
In a speech that sought to shore up support across the political spectrum, von der Leyen pledged to strengthen the EU economy, its police and border agencies, tackle migration and pursue policies tackling climate change while also helping farmers who have staged protests against what they call stifling EU bureaucracy and environmental rules.
She also vowed to tackle housing shortages across Europe and said she would appoint a commissioner for the Mediterranean region due to the multiple challenges it faces.
Von der Leyen earlier told lawmakers she would "never accept that demagogues and extremists destroy our European way of life. And I stand here today ready to lead the fight with all the democratic forces in this house."
She also took a swipe at Hungarian Prime Minister Viktor Orbán and his recent visit to Russia shortly after his country took over the rotating six-month EU presidency.
"This so-called peace mission was nothing but an appeasement mission," von der Leyen said as she vowed that Europe would remain shoulder-to-shoulder with Ukraine.
Over the past five years, von der Leyen has steered the bloc through a series of crises, including Britain's exit from the EU, the COVID-19 pandemic and Russia's invasion of Ukraine. She has also pushed a Green Deal aiming to make the EU climateneutral by 2050.
Von der Leyen's election came as newly elected U.K. Prime Minister Keir Starmer was welcoming some 45 European heads
of government to discuss migration, energy security and the threat from Russia as he seeks to restore relations between the U.K. and its continental neighbors. Starmer took to X to congratulate her and say he looks forward to "working closely with you to reset the relationship between the UK and the European Union."
EU leaders signed off on von der Leyen's candidacy at a summit meeting late last month. The 65-year-old's bid was boosted when the center-right European People's Party, which includes von der Leyen's Christian Democratic Union, remained the largest group in the EU Parliament after the elections.
The German politician has been praised for her leading role during the coronavirus crisis, when the EU bought vaccines collectively for its citizens. But she also found herself receiving sharp criticism for the opacity of the negotiations with vaccine makers.
The EU general court ruled Wednesday that the commission did not allow the public enough access to information about COVID19 vaccine purchase agreements it secured with pharmaceutical companies during the pandemic.
Following the elections for EU Parliament, European Union leaders agreed on the officials who will hold the key positions in the world's biggest trading bloc in the coming years for issues ranging from antitrust investigations to foreign policy. At the side of von der Leyen will be two new faces: Antonio Costa of Portugal as European Council president and Estonia's Kaja Kallas as the top diplomat of the world's largest trading bloc.
N O T I C E
HORBURY LIMITED
NOTICE IS HEREBY GIVEN in accordance with Section 138(4) of the International Business Companies Act, (no. 45 of 2000) as follows:
(a) HORBURY LIMITED (the “Company”) is in dissolution under the provisions of the International Business Companies Act, 2000.
(b) The dissolution of the said Company commenced on the 5th day of July, 2024 when its Articles of Dissolution were submitted to and registered by the Registrar General. All persons having claims against the above-named Company are required to send their names, address and particulars of their debts or claims to the Liquidator before the 5th August 2024.
(c) The Liquidator of the said Company is Mr. David Butler.
Dated the 17th day of July, 2024.
DAVID BUTLER Liquidator
Taxi driver revolt on livery ‘hustling’
FROM PAGE B1
and other arrivals at LPIA.
Mr Ferguson asserted that livery drivers are only supposed to collect prearranged, pre-booked rides and not go into the taxi callup lane.
Confirming that the issue was resolve peacefully, and “everything is back to normal”, he voiced concerns to this newspaper that the “chaotic” transportation scenes and system at LPIA were not a good first impression for the majority of The Bahamas’ higher spending stopover visitors upon arriving in the destination.
“It’s an ongoing problem down there at the airport,”
Mr Ferguson said of the background to yesterday’s protest by tens of taxi drivers. “It’s been going on for many years since 2002. The
livery drivers are always on the hustle.
“According to the law they are supposed to operate from a place of having pre-arranged business, but somehow they’ve managed to infiltrate the airport. They’re hustling like taxis. Road Traffic is supposed to be responsible for law and order, and operating in a fair manner, but they are working in the livery drivers’ favour and the taxi drivers are getting the scrapings.”
The taxi union president said the drivers had created a committee to oversee the call-up system at LPIA, with $1 of every fare used to pay the dispatchers involved. He asserted that yesterday’s protest was sparked after Road Traffic officers allegedly tried to push these dispatchers “out the door”.
“That’s what caused the unrest this morning,” Mr Ferguson added. “That’s why the taxi drivers reacted. They went into Nassau Airport Development Company [LPIA’s operator] and demonstrated. Road Traffic backed off and let them get on with their show with fair play.” Road Traffic Department officials could not be reached before press time, while Nassau Airport Development Company (NAD) said in a statement that it was “aware of complaints” concerning the commercial lane and pledged to take the issue “very seriously” in developing “a co-ordinated and effective response”.
Mr Ferguson, meanwhile, said of the situation: “They [livery drivers[ go in and steal jobs through hustling. Over the weekend there
was nearly a stabbing incident between a taxi driver and a livery driver hustling over a job.”
He also alleged that livery drivers were cutting their fares in line with those charged by taxis, making it harder for his members to compete. “Taxi drivers had enough of that this morning,” Mr Ferguson said. “We had to rise up and put some pressure on NAD. They retreated and the taxi drivers won.
“We’ll be monitoring closely to see how it works out. We don’t want that to spill over into some sort of violent action. We don’t want to perpetuate violence. That could have spilled out of control real quick. We don’t want that; not at the airport.”
Mr Ferguson said all parties needed to “get together” to resolve the
Bahamians paid $61m more for property coverage in ‘23
FROM PAGE B1
wrote. “The Commission is actively engaged in efforts to address these issues.”
He added that this involved working with fellow regulators in the Caribbean and worldwide “to share best practices and explore potential solutions”, and working with underwriters to find ways to mitigate the increases.
Mr Major said the Insurance Commission was also seeking to encourage innovation in products and risk management strategies
“to improve affordability and resilience”. He added:
“The Commission remains committed to finding sustainable solutions that ensure continued access to affordable and adequate
property insurance coverage for Bahamian residents and businesses.”
The Insurance Commission, in its analysis of the sector, said: “Gross premiums in the property and casualty sector totalled $535.4 [compared to] $479.1m in 2022, an increase of $56.3m representing 12 percent over the prior year. The increase in gross premiums is largely attributed to the increase in rates in the reinsurance market, particularly on catastrophic risks impacting property insurance.
“As the economy continued to expand, and construction activity was on the rise, the volume of insurance underwritten in the general market also increased at a moderate pace. However, given
the continued challenges obtaining reinsurance, the local market was constrained with regards to its capacity to underwrite new business.”
Bahamian property and casualty insurers have no choice but to purchase significant amounts of reinsurance on an annual basis because their relatively thin capital bases mean they cannot underwrite all risks in this nation.
As a result, premium prices paid by local homeowners and businesses are dictated by the reinsurance market. Those with mortgages, though, are mandated by the loan contract to insure or their lenders take out coverage on their behalf.
“The expansion in this line was attributed to the increase in fire insurance coverage, which rose by $46.5m to $94.2m. While fire insurance coverage may be considered limited, it is more affordable to homeowners and businesses.
“Motor, the second largest line of business, accounted for 16 percent of gross premiums and experienced growth of $9.8m (13 percent) to $84.4m during the period. The third largest line of business, liability insurance, which accounted for 6 percent of gross premiums written in the general insurance market, shrunk by $9.9m (24 percent) to $31.9m,” the regulator added.
situation, and called for a greater police presence outside LPIA to deal with the commercial lane and deal with traveller pick-up and drop-off. “That’s the main gateway to our country. It should not be chaotic and look as if there’s a confrontation going on between the taxi drivers and livery drivers,” he added. “Tourists should not be exposed to that. It’s sometimes a frightening situation for them when they exit the airport and see that. The Government needs to get together with all the authorities.”
NAD, in its statement, said: “We are aware of complaints being raised by transportation operators regarding the commercial lane at LPIA. As airport managers, we are committed to maintaining the safety, security and efficient
costs had hit a record 26-year high, and acknowledged that the affordability of insurance is becoming an increasing concern with reinsurance costs at their highest-ever level.
Bruce Fernie, Insurance Company of The Bahamas’ (ICB) chairman, conceded that the major global reinsurers The Bahamas heavily relies on to underwrite risks in this nation have either drastically increased their prices, cut capacity or withdrawn from the Caribbean altogether after suffering multi-billion dollar losses from previous hurricanes while anticipating further losses from more powerful, and frequent, storms in the future.
operation of all airport services. The well-being of our valued team members is also of paramount importance to NAD, and their safety and security remains a top priority.
“We take these matters very seriously and will continue to work closely with our partners at the Road Traffic Department (RTD), the Royal Bahamas Police Force (RBPF) airport traffic division and Airport Authority to ensure a coordinated and effective response to managing the commercial lane at LPIA.
“Transportation operators at LPIA are encouraged to adhere to the existing policies and procedures in place at the airport, and are reminded to be respectful of others even as policy changes are being sought.”
reduce their exposure to catastrophe risk.
“Some reinsurers completely withdrew from writing catastrophe exposed business. Despite this, ICB was successful in renewing all our property reinsurance treaties, although at a significantly increased cost. Exacerbating the situation is that there is a growing demand for catastrophe insurance cover throughout The Bahamas with many new building projects underway and many more at the planning stage.
Pursuant to the provisions of Section 138 (8) of the International Business Companies Act ,2000 of the Commonwealth of The Bahamas, notice is hereby given that:-FONTANA HOLDINGS Ltd has been dissolved and struck off the Register as of July 21, 2024
TREVOR D.A. SUNDERLAND - Liquidator NOTICE
NOTICE
NOTICE is hereby given that RUTH-NICA CHARLES of Market 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 19th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that ELENA MURRAY Garden-Well, Shirley 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 12th day of July, 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 ROSELANE THOEPHILE of The Bluff, Eleuthera, 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 July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Property insurance accounted for virtually all the increase in total general insurance premiums, expanding by $60.9m or 19 percent year-over-year to $389.7m. “This was the largest line of business accounting for 73 percent of total gross premiums written during 2023,” the Insurance Commission said.
“Marine, aviation and transport, which account for 3 percent of premiums, expanded by $1.8m (12 percent) to $17.3m. All other lines of business represent less than 3 percent of premiums written and contracted by $6.3m (34 percent) to $12.2m.”
Bahamian property and casualty underwriters last year revealed that insurance
“Against this backdrop, ICB approached its most recent reinsurance treaty renewal season anticipating that reinsurers’ terms would likely harden somewhat for 2023,” Mr Fernie wrote in ICB’s last annual report. “Unfortunately, the reinsurance market hardened to an extent not seen in the company’s 26-year history. Catastrophe reinsurance capacity reduced substantially over 2022 with many reinsurers electing to
“Given the shortage of windstorm capacity available to the market in 2023, I would appeal to all our customers who insure their properties against hurricane loss not to delay renewing their policies when they fall due... The Bahamian insurance industry will certainly be challenged in the year ahead as we trade through this period of extraordinary level of increase in the cost of property catastrophe reinsurance. Homeowners and businesses will be faced with property rates that are as high as they have ever been.”
NETFLIX'S SUBSCRIBER AND EARNINGS GROWTH GATHER MORE MOMENTUM AS PASSWORD-SHARING CRACKDOWN PAYS OFF
By MICHAEL LIEDTKE AP Technology Writer
NETFLIX'S subscriber and earnings growth accelerated in its latest quarter as the video streaming service benefits from a crackdown on freeloading viewers, an expansion into advertising and an acclaimed programming lineup.
The results announced Thursday painted a portrait of a company still gathering momentum after a jarring decrease in subscribers during the first half of 2022 prompted a change in direction.
Netflix added 8 million subscribers during the April-June period, marking a 37% increase over the same time last year. It was the sixth-consecutive quarter of that Netflix's subscriber gains have increased from the previous year, a trend triggered by the 2022 downturn that served as a wake-up call for the Los Gatos, California, company.
And Netflix is still financially thriving. The company's profit in its latest quarter rose 44% from last year to $2.15 billion, or $4.88 per share — a figure that exceeded the estimates of analysts polled by FactSet Research. Revenue climbed 17% from last year to $9.56 billion, also eclipsing analysts' projections.
But management predicted its revenue for the July-September period would rise at a slightly slower pace of 14% from the same time last year, lagging the 18% growth that analysts had been anticipating.
The forecast contributed to a muted reaction from investors who have driven up Netflix's stock price by 32% so far this year. After initially falling by 3% in extended trading after the second-quarter report came out,
Netflix shares recovered and were up about 1%.
Given that the competition in video streaming seems to be ramping up again, Investing. com analyst Thomas Monteiro called "the lowering of guidance an intelligent strategy for keeping excitement put amid sky-high expectations."
As part of a shakeup that began in mid-2022, Netflix has been blocking the previously widespread practice of sharing subscriber passwords with
friends and family living in other households. It also introduced commercials for the first time as part of a low-priced version of its service.
Since those moves began rolling out two years ago, Netflix has picked up nearly 55 million more paying customers, pushing its worldwide subscriber count nearly 278 million through June.
But Netflix is bracing for the gains from the password-sharing crackdown to taper off, prodding the company to sharpen its focus on selling more ads for its low-priced option, which the company said ended June with a 34% increase in total subscribers from March. It didn't detail precisely how many of its worldwide subscribers have chosen to watch ads for the cheaper price.
Despite the widening audience for commercials, Netflix said it doesn't expect advertising to be a major source of revenue growth until 2026 at the earliest.
"Ads are going to be a bigger piece of the puzzle, but it won't be in 2024 or 2025," Spencer Neumann, Netflix's chief financial officer, told analysts during a conference call Thursday.
As part of its effort to train investors to pay more attention to its financial growth and foray into advertising, Netflix in April
disclosed it will stop providing quarterly subscriber updates beginning next year.
The profit push also has made Netflix more judicious in its spending, resulting in fewer movies and TV series than the service has been making during most of the past decade. But the programming coming out of its pipeline is pleasing viewers and winning high praise — as demonstrated by the industry-leading 107 Emmy nominations Netflix received Wednesday.
"Our goal and our mission is we have to spend the next billion dollars of programming better than anyone else in the world," Netflix co-CEO Ted Sarandos said during the conference call.
Netflix's strategic shift also has resulted in more marquee events streamed live, such as a recent roast of retired football star Tom Brady, a hot-dog eating showdown featuring renowned glutton Joey Chestnut and two National Football League games on Christmas Day. Live shows that pull in huge audiences make it easier for Netflix to sell advertising and, ironically, "take us back to television's roots," Forrester Research analyst Mike Proulx said.
AWARDS, including an Emmy, are displayed at Netflix headquarters Los Gatos, Calif. on March 7, 2024. Netflix reports earnings on Thursday, July 18, 2024. Photo:Mike Liedtke/AP
A washout on Wall Street sends stocks, big to small, lower
By STAN CHOE AP Business Writer
A WIDESPREAD washout for U.S. stocks dragged Wall Street lower on Thursday.
The S&P 500 dropped 0.8% to pull further from its all-time high set on Tuesday. The Dow Jones Industrial Average tumbled 533 points, or 1.3%, from its own record set a day before, while the Nasdaq composite sank 0.7%.
As they did the day before, when the Nasdaq tumbled to its worst loss since 2022, several Big Tech stocks led the market lower. Drops of 2% for Apple, 2.2% for Amazon and 0.7% for Microsoft were three of the heaviest weights on the S&P 500.
Unlike much of the last week, though, Thursday's losses hit many corners of the market. Smaller stocks, which had been cranking higher after badly lagging their larger rivals, fell more than the rest of the market. The Russell 2000 index lost 1.8% after jumping more than 1% in five of the last six days.
The majority of stocks within the S&P 500 also fell after giving up gains from earlier in the day. The sharpest loss came from Domino's Pizza, which dropped 13.6% despite topping analysts' expectations for profit in the spring.
The pizza chain temporarily suspended its forecast for how many stores will open globally over the long term. While that's likely due to reasons beyond the company's control, analysts said it could frustrate investors.
Darden Restaurants, the company behind Olive Garden, LongHorn Steakhouse and other chains, sank 3%. It said it would buy the Chuy's Tex-Mex chain in an all-cash deal valuing it at $605 million. Chuy's stock jumped 47.8%
Stocks of chip companies stabilized a bit after tumbling a day earlier amid worries about potentially worsening tensions with China. U.S.-traded shares of Taiwan Semiconductor
Manufacturing Co. rose 0.4% after the industry giant reported stronger profit for the latest quarter than analysts expected. It bounced back from its loss of 8% the prior day, but only after swerving between gains and losses. Nvidia rose 2.9% after likewise flipping between gains and losses through the day. It stretched its gain for the year to nearly 145%.
Earlier this year, a climb for Nvidia and some of the other handful of stocks that came to be known as the "Magnificent Seven" may have been enough to prop up the rest of the market.
That's what they did for a while, after all, as their stock prices rocketed amid a frenzy around artificialintelligence technology, even as other stocks struggled under the weight of higher interest rates and slowing economic growth.
Because the S&P 500 and other indexes give more weight to stocks of bigger size, and because the Magnificent Seven stocks had swelled into Goliaths, gains for Big Tech could drive up the market almost by themselves.
But a shift had gotten underway on Wall Street over the last week. Instead of piling into Big Tech, which critics have called too pricey, investors moved toward smaller stocks, companies whose profits are closely tied to the economy's strength and other areas that have been unloved for a while.
The momentum kicked into a high gear after an encouraging report on inflation raised expectations for the Federal Reserve to begin easing interest rates in September. Lower rates and a solid U.S. economy could mean bigger benefits for smaller companies than for Big Tech giants, which rose almost regardless of such factors.
The market saw a similar turn in momentum around the end of last year, but it didn't last. Strategists at UBS led by Maxwell Grinacoff say they need to see several milestones "for
this rotation to be real and sustainable."
Among them, they say the job market and economic growth would need to sustain modestly over the next few months and inflation would have to continue to cool. In the meantime, more than a third of the smallest stocks remain unprofitable. In the bond market, Treasury yields rose following some mixed data on the economy.
One report said more workers applied for unemployment benefits last week than economists expected. That could be a signal of a softening job market, though the number remains low compared with history.
A separate report said manufacturing in the midAtlantic region is growing much better than economists thought.
The yield on the 10-year Treasury rose to 4.19% from 4.16% late Wednesday.
Wall Street is hoping the economy can remain in a "Goldilocks" state, where it's not so hot that it puts upward pressure on inflation but not so cold that it slides into a recession.
Besides hopes for coming cuts to the Fed's main interest rate, which has been sitting at its highest level in more than two decades, expectations for stronger corporate profit growth have also helped drive stocks.
D.R. Horton jumped 10.1% for the largest gain in the S&P 500 after the homebuilder reported stronger profit and revenue for the spring than analysts expected. Other homebuilders also rallied, including a 2.5% rise for PulteGroup and a 2.1% climb for Lennar.
All told, the S&P 500 fell 43.68 points to 5,544.59. The Dow dropped 533.06 to 40,665.02, and the Nasdaq sank 125.70 to 17,871.22. In stock markets abroad, European indexes were mixed after the European Central Bank held its main interest rate steady. Asian indexes were also mixed.
THE NEW York Stock Exchange is shown on July 17, 2024, in New York. Global shares are mostly lower on Thursday, July 18, 2024, with Tokyo’s benchmark dipping more than 2%, after Wall Street’s record-breaking rally slammed into a wall of worries over potentially worsening trade tensions with China.
