THURSDAY, JULY 28, 2016
business@tribunemedia.net
economy NHI threatens 20% Bahamian ‘as low as it can go’ rise in doctor costs By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Rival proposals to boost care efficiency, quality
The Government’s proposed National Health Insurance (NHI) scheme threatens to increase doctors’ costs by “at least 20 per cent”, amid competing proposals to reform the profession’s relationship with insurers and the Government. With the Christie administration desperate for progress on its longpromised heathcare reforms prior to the general election, rival groups are proposing that private doctors/physicians form themselves into an Independent Practice (Provider) Association. Such an Association, or IPA, would negotiate insurance contracts with both the Government’s NHI Authority and private sector providers on behalf of its members, allowing those doctors to focus on the quality of patient care and the latter’s experience, as opposed to managing costs and administrative
Doctor: Bahamas not getting ‘value for money’ Govt targets NHI Bill to Parliament next month
Dr Conville S Brown
issues. Tribune Business has obtained both the competing proposals, one from a Partnership of Healthcare Providers (PHP), a Bahamian grouping, which appears to be based on presentations by the JPIA Network. That is an organisation of international Independent Provider Associations (IPAs) that provides services to 300,000 independent doctors in the See pg b7
‘Tragedy’ for regulation to force business closure
Harbour Island’s ‘extreme damage’ from power woes
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Tribune Business Reporter
The Chamber of Commerce’s chief executive yesterday said it was “a tragedy” if government regulations forced business closures, as he again called for “market forces to prevail” over price controls. Edison Sumner told Tribune Business that the impending closure of Paul W. Albury & Sons, the Champion tomato paste manufacturer, after a more than 60-year history “speaks to the challenges we’re facing across the country with the economy”. The company, in a letter to consumers, said the costs it would incur to remain in business were just too great, after sustaining significant losses over the past 18 months. It blamed this on a combination of price controls, which allowed it just a 12 per cent mark-up on 70 per cent of its products, plus in-
Chamber ‘grieved’, especially if ‘avoidable’ Concern on reasons for manufacturer’s shut-down Calls for market forces to ‘prevail’ over price control creased taxes and the weak economy. With revenues constrained, and costs rising, Paul W. Albury & Sons is set to close on August, joining other historic brands, such as City Markets and John S George, in ceasing trading over the past few years. Promising that he would “reach out” to See pg b6 TURN-KEY INVESTMENT
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nmckenzie@tribunemedia.net Harbour Island’s power outage woes have caused “extreme damage” to its reputation as a tourism idyll, Tribune Business was told yesterday, with resident businesses renewing demands for the island to have its own power plant. Dr Leatendore Percentie, who operates the Tingum Village Guesthouse, said: “The power issue is destroying a lot of businesses. We all know that Harbour Island has some of the most elite visitors in the world who have many destinations to choose from. “Even though many of them favour Harbour Island, we have lost business because they have gone elsewhere due to the inability of the island to give reliable service. “A lot of the services are interconnected, such as Internet and water. The marinas all feed off of Ba-
Businesses renew calls for island’s own power plant hamas Power and Light as well. When the electricity is off, a lot of the mega yachts will simply leave. Whenever things start happening there is a ripple effect throughout the community, the food stores, the hotels and the restaurants.” Bahamas Power & Light (BPL) chief executive, Pam Hill, reportedly met with a small group of Harbour Island tourism and business stakeholders on Tuesday night, following an especially bad week for power outages and surges across Eleuthera. While not commenting on the details of that meeting Dean Spychalla, vicepresident and managing director of Valentine’s Residences Resort and Marina, told Tribune See pg b4
The Bahamian economy has “gone as low as it can go”, with the Chamber’s chief executive yesterday conceding that progress on improving the ‘ease of doing business’ was not happening “as fast as we’d like”. Edison Sumner told Tribune Business that the business community’s “vexing concerns” had to be addressed by a Governmentprivate sector partnership if the Bahamas was to develop a “thriving” economy. He identified price controls; the need for companies to present Tax Compliance Certificates (TCCs) to obtain payment from government agencies; ValueAdded Tax (VAT) refunds; and the new Customs Management regulations impacting the transportation/ logistics industry as being among the Chamber’s primary issues to address. “At this point in time, it’s not an easy economy to work through,” Mr Sumner told Tribune Business. “We believe at the Chamber that we’ve seen probably seen the bottom of the economy, and that it’s gone as low as it can go, unless there’s something adverse that happens that has not been forecast.” He added: “We hope that we’ve seen this bottom, that the economy has bottomed out, and that we can bounce back and rebound from this. “It’s going to require some work from the Government, the Chamber and private sector to develop the kind of economy that causes business to thrive and grow.” Acknowledging the numerous impediments to the smooth conduct of business in the Bahamas, Mr Sumner said the Chamber had been due to meet senior Ministry of Finance officials, plus the head of the Inland Revenue Department, yesterday afternoon. “We are making progress, but not at the pace See pg b7
Chamber chief hopes it has ‘bottomed out’
Ease of business progress ‘not as fast as we’d like’ Tax Certificates, VAT refunds ‘vexing concerns’
Edison Sumner
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PAGE 2 , Thursday, July 28, 2016
THE TRIBUNE
Scotia ending home ownership seminars Scotiabank will conclude its Home Ownership seminar series tonight with a 6 pm meeting at its Cable Beach branch. This session, ‘Home Ownership: Build versus Buy’, will discuss the advantages and disadvantages associated with constructing home or purchasing an existing one. The previous session covered the basics of securing a mortgage under the theme, ‘Home Ownership 101’. Attendees were able to learn about the various aspects of home ownership from a cross-
section of experienced executives, including lawyers and lending professionals. “At Scotiabank we are dedicated to working with our customers to realise their home ownership dreams. We are pleased to have received such a positive response to these seminars, and remain committed to educating our customers and creating tailored financial solutions to each individual’s circumstance,” said Scotiabank’s retail banking firector, Dwight Burrows. Tonight’s panelists will in-
clude: * Dwight Burrows, Scotiabank’s director of retail banking * Ambrosine Huyler, Scotiabank’s corporate and legal services head * Christine Wallace-Whitfield, Bahamas Real Estate Association * John Michael Clarke, Bahamian Contractors Association * Marcus Laing, architect, TDG Architects * A Ministry of Works representative
L-R: Lanecia Darville, Scotiabank, corporate and legal services; Alicia Bowe, Karam & Missick (Bahamas. Chervain Stuart, Scotiabank, retail sales coach; Jarissa Russell, Scotiabank, personal banking officer; Leah Davis, Scotiabank, senior manager, marketing.
BTC team members at CANTO’s annual conference in 2015.
BTC to participate at regional summit The Bahamas Telecommunications Company (BTC) is set to participate in the 32nd annual Caribbean Association of National Telecommunications Organisations’ (CANTO) conference and trade show exhibition. BTC’s chief executive, Leon Williams, also serves as vice-chairman for CANTO. He said: “BTC has been a member of CANTO since 1985. The organisation seeks to provide an outlet for telecommunications organisations in the region to stay connected. We share ideas on how we can overcome challenges that affect us all in the region.” BTC will also participate in CANTO’s trade show and exhibition. This year, the company will feature one of its latest advancements, Fibre to the Home (FTTH). BTC recently introduced FTTH services to eastern New Providence. This new technology provides a springboard for new innovations
such as Internet-based television and smart home services. For years, CANTO has championed the ‘Connect the Caribbean’ initiative and has sought to bridge the digital divide. Its mission statement is ‘One People, Connected through ICT’. BTC continues to play its part in making this initiative a reality. The company is currently working to deploy advanced Internet solutions across the Family Islands. Just recently, BTC completely ‘fiberised’ Rum Cay, and is providing FLOW television services to the island. The company is currently working to deploy fibre to San Salvador. Topics for discussion at this year’s CANTO Conference include Convergence, the Internet of things, Big Data and Women in ICT. It will also feature the 10th annual Human Resources Forum, which BTC will also participate in.
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THE TRIBUNE
Thursday, July 28, 2016, PAGE 3
Govt refutes Ingraham’s criticism over Baha Mar By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
former Prime Minister Hubert Ingraham.
The Government last night hit back at former prime minister, Hubert Ingraham, by restating its belief that developer Sarkis Izmirlian lacked the $600 million in financing necessary to complete and open Baha Mar. Refuting Mr Ingraham’s assertion that it was “dead wrong” to have forced the
Reiterates claim Sarkis lacked needed $600m $3.5 billion development into provisional liquidation, the Christie administration argued that it had taken “the only sensible option” for the benefit of the Bahamian economy, and Baha Mar’s
employees and creditors. The Government, in a statement, dismissed suggestions by Mr Ingraham that it should have bridged ‘the financing gap’ necessary to complete Baha Mar with $100 million in taxpayer funds, arguing that Mr Izmirlian’s decision to file for Chapter 11 bankruptcy protection prevented such a move. “The developer himself, in the US bankruptcy proceedings, made clear he had no money to complete the project and that he had every intention of downsizing,” the Government said. “In its evidence in the Chapter 11 proceedings in Delaware, the developer [Mr Izmirlian] acknowledged that in the absence of further funding from China
Export-Import Bank – funding for which there was little prospect - it would ‘be compelled to . . . downsize their operations’ including ‘archiving a substantial portion of their current property and reducing their workforce to a skeletal staff necessary to minimally maintain the resort assets’. “That ‘skeletal staff’ was expected to number only 52 – a reduction of almost 98 percent in a workforce that had numbered 2,400.” The Government said the dispute between Mr Izmirlian and Baha Mar’s main contractor, China Construction America (CCA), was “intractable”, with construction completion requiring a further $600 million. “China Export-Import
Bank disclaimed any obligation to provide additional financing (beyond the $2 billion in loans that it already had made),” the Christie administration added. “The Baha Mar companies themselves had almost no cash, and the developer – despite grandiose claims to the contrary – had no prospect of obtaining additional financing from any source other than China Export-Import Bank.” It continued: “Continuation of the Baha Mar companies’ Chapter 11 bankruptcy cases in Delaware would have prolonged the developer’s control of the Baha Mar project (at the cost of tens of millions of dollars of professional fees), See pg b10
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PAGE 4 , Thursday, July 28, 2016
Harbour Island’s ‘extreme damage’ from power woes From pg B1
Business: “The impact on both the residents and hospitality sector of the island is extreme. “It does extreme damage to the reputation of the island to have to continuously apologise to guests as to why there is no power and why they can’t take a shower. This has a major impact on all aspects of life on the island.” The disruption issues has already had a significant impact on revenues in the hospitality sector, with some marina, home rental and hotel guests vowing never to return to Harbour Island. BPL, in a statement on Tuesday, acknowledged that it was working to stabilise its network in Eleuthera following several system failures on Monday that lasted into Tuesday. The outages impacted its customers in north and rentral Eleuthera, Harbour Island and some parts of south Eleuthera, and resulted from challenges at the Rock Sound power station as well as the island’s main Hatchet Bay facility later that night. “Some customers would have experienced outages lasting less than 20 minutes, while others would have endured much longer periods without supply,” BPL said. “BPL crews on the island have assessed that the main issues relate to separate gen-
eration stability problems at both power stations over the past 24 hours. Supply was fully restored to all areas before 5pm on Tuesday.” Dr Percentie, though, added: “This is not helpful to the economy of Harbour Island. Harbour Island carries most of Eleuthera in terms of employment. Every day hundreds of persons come from the mainland to work on Harbour Island. “Everyone knows what needs to be done, and despite promises the right thing is not done. Several years ago we built a multi-million dollar plant at Hatchet Bay, which was supposed to be the answer, but there are more problems transmitting electricity all the way from Hatchet Bay to Harbour Island. “Harbour Island needs its own power plant if its tourism product is going to continue to develop and grow. I don’t think it’s a matter of financial costs because the money is here for them to make the power is reliable.” One Eleuthera businessman told Tribune Business: “It’s just been a nightmare. I’m not so much worried about my business; we have generators. I’m thinking about the single mom with three kids who, once the power goes out, the milk is ruined and the meat in her freezer is ruined. That may be all she has and it’s not right.”
THE TRIBUNE
Not the time for devaluation talk Bowe: Rating agencies focusing on creditworthiness By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net The Bahamas Chamber of Commerce’s chairman said yesterday there had been “too much sentiment and not enough fact” over devaluation fears, stressing that the rating agencies were assessing this nation’s creditworthiness and not its currency. “Don’t believe for one second the international agencies do not see the opportunities here. They are looking at whether we see them, and whether we have a plan to take advantage,” said Mr Bowe. “I think that there has been too much sentiment and not enough factual analysis. This isn’t even a conversation that we should be having now; it is not a threat that exists today. Our credit rating doesn’t have anything to do with our currency. We determine the value of our currency by the
Gowon Bowe reserves we maintain, and we have been able to maintain those.” Mr Bowe, who was speaking at a meeting of the Rotary Club of southeast Nassau, reiterated sentiments expressed to this newspaper, that devaluation concerns were “premature”. He effectively backed assertions by John Rolle, the Central Bank’s governor, that the Bahamian dollar faced “no imminent or medium-term threat of devaluation”, as both the private sector and foreign currency reserves were performing adequately. “The Government handles the fiscal policy and the Central Bank handles the monetary policy. We have a
monetary policy that has facilitated the peg and maintained it. We are in a strong position as it relates to that. Our fiscal policy will impact that at some point if we don’t correct some things, but we don’t need to focus on the sensationalism of devaluation,” said Mr Bowe. “We should not look at Moody’s, the IMF and S&P statements in anyway as being a rating on our currency; it is a rating on our creditworthiness and how likely we are to pay back our debt. We have never missed a payment in history, and 75 per cent of or debt is owned by Bahamians.” Mr Bowe added that reserve pressures would only likely arise when the Government’s foreign currency
debts became due for repayment, as this could impose a drain on them. The Bahamas has traditionally relied on foreign currency earnings from tourism, financial services and foreign direct investment (FDI) to cover its multi-billion dollar current account (trade in goods) deficits, given this nation’s propensity to import everything it consumes. Mr Bowe again reiterated that the Bahamas needs to reduce its dependency on foreign investors by allowing Bahamian entrepreneurs and groups, with the necessary means and ability, to finance their activities in foreign currency.
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THE TRIBUNE
Thursday, July 28, 2016, PAGE 5
Stopover arrivals rise 2.2% in Q1 By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net Air arrivals to the Bahamas increased by a modest 2.2 per cent year-over-year during the 2016 first quarter, tourism officials said yesterday, although cruise cruise passenger arrivals droppd by 1.3 per cent. Joy Jibrilu, the Ministry of Tourism’s director-general, yesterday said the Bahamas was seeking to increase per capita cruise passenger spending yields, which are currently around $85. Mrs Jibrilu said: “In the first quarter of 2016, we saw a downturn of 1.3 per cent in cruise passengers: 1,377,752 compared to 1,396,240 in the first quarter of 2015. “This slight decline in cruise passengers is due to a brief period of inclement weather in early 2016, when certain cruise ships could not anchor off their private islands. Between March and June of this year, our numbers in both cruise and air arrivals are trending upwards.” As for the higher spending air
Joy Jibrilu arrivals, they rose 2.2 per cent over the same period last year. “In the first quarter of 2015, our air arrivals were at 375,962. Between January and March of this year we received a little over
8,000 more air visitors or a total of 384,324 for the first quarter of 2016,” Mrs Jibrilu said. She added that 70 per cent of the Bahamas’ visitors are cruise passengers, while some 30 per cent come by air. Cruise passengers spend on average $85 per visitor, compared to $1,100 for their stopover counterparts, and Mrs Jibrilu said the Ministry has made it a priority to convert as many cruise visitors into return air arrivals, while creating greater incentives for cruise passengers to spend more onshore. Mrs Jibrilu said improvements to Festival Place at Prince George’s Wharf aim to improve the overall cruise visitor experience. “I think that everyone knows that Festival Place was in a state where it needed much work to create an experience,” she said. “That is the first port for so many people. In fact, four million visitors pass through Festival Place moving into the Bahamas. We are doing upgrades there. The vendors spent last year under umbrellas and tents while renovations went ahead. We hope
that will soon be completed. “This is something that has been pushed in many instances by the Florida Caribbean-Cruise Association, but they don’t need to tell us what we know. We know what the experience is coming in through LPIA, and we want to replicate that at the cruise port,” continued Mrs Jibrilu. “When people come off the ship you want to make sure that they have things to do. It is the task of the Ministry of Tourism to ensure that we continue to have events. We want to have more activities and engage with cruise ships well in advance so they can schedule and book to come in, and that encourages passengers to come off the ship and spend money.” Mrs Jibrilu added that the Ministry of Tourism was already seeing the benefits of opening tourism offices in key US markets. “Several years ago, the Ministry felt that most people booking vacations would probably do so online and, as a result, we closed our office,” she said. “Research has shown us that approximately 47 per cent of all people still book their vacations through
Cuba ‘not the big wow’ many think By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net The Ministry of Tourism’s director-general yesterday acknowledged that Cuba has long surpassed this nation in terms of stopover arrival numbers, with the Bahamas now seeking to develop multi-destination marketing initiative with its western neighbour. Joy Jibrilu told Tribune Business that Cuba has always been a force in Car-
ibbean tourism segment, but many were now only acknowledging its competitive threat following renewed diplomatic relations with the US. “We have a totally different approach with Cuba. I know that the discussion in the marketplace is that it does pose a threat,” Mrs Jibrilu said. “We always viewed it differently, and I think it is because we are in tourism and it’s not the ‘big wow’ many people think it is now.
“Cuba has always been a force for tourism in the region. They are the number one biggest recipient of Canadian visitors today and that didn’t happen overnight. We know that 1.5 million stopover visitors from Canada go to Cuba; nowhere else in the region competes with that,” she added. “In terms of stopover visitors they are the third in the region, 3.6 million, while we get 1.6 million. They are way ahead of us.”
Mrs Jibrilu continued: “The only thing changing is that the US will be open to them. The rest of the world has long been open to them. As it relates to the US, without a doubt I think Americans will be curious and they will ant to visit. It’s a very interesting place, a culturally rich place, but
travel agents and tour operators. “When you take yourself out of the game it’s easy to forget about you. We have opened offices in Los Angeles, Washington, New York, Atlanta, Houston and Florida. “We looked at where the largest percentage of visitors were coming from. It allows those offices to engage directly with travel agents, tour operators and airline operators, have sales and media blitzes, constantly keeping the Bahamas alive.We have seen a direct correlation in the growth in numbers. We are pleased with that investment.” Mrs Jibrilu added: “We are in the bottom segment in the region when it comes to marketing dollars. People are outspending us tremendously. “We now do all of our marketing in house. We have saved money that way and we’re being smart with our marketing. We will partner with Expedia in an arrangement where the company would match the Ministry’s marketing dollars.”
there is a lot of work to be done. “Knowing the American tourist as we do, I get the sense they will visit once and then say they will think about going again. It means that we have to get our act together. The Bahamas has an incredible product. The Bahamas has a great relationship with Cuba, and we are now saying let’s work together. We are working with Cuba on multi-destination market-
ing, working with HavanaTour, so that they will be selling twin city tours between Havana and Nassau.” The US and Cuba have signed an agreement authorising daily US commercial flights to the communist-ruled island for the first time in more than five decades. The deal allows up to 110 daily flights to 10 destinations in Cuba, with about 20 of them to the capital, Havana.
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Electrician
Functions: • Assemble, install, test, and maintain electrical or electronic wiring, equipment, appliances, apparatus, and fixtures, using hand tools and power tools. • Diagnose malfunctioning systems, apparatus and components, using test equipment and hand tools, to locate the cause of breakdown and correct the problem. • Connect wires to circuit breakers, transformers, or other components. • Inspect electrical systems, equipment, and components to identify hazards, defects, and the need for adjustment or repair, and to ensure compliance with codes. Position Requirements: • Completion of a technical school program. • Three years experience in the field of electrical engineering.
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Functions: • Receives reservations from various sources: Reservation Terminal, telephone, correspondence, and guests at front desk. • Handles arrangements for groups - i.e., rooming lists and pre-registration. • Keeps block arrangements secure for group bookings for Sales Department. • Maintains all pertinent information with regard to Travel Agent Commissions. Position Requirements: • Three years experience at a major company or hotel in a similar position; • Working knowledge of hotel’s reservation system. • General knowledge of office and telephone procedures.
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Functions: • Register guests and assign rooms. • Thoroughly understands and adheres to proper credit, cheque-cashing and cash-handling policies and procedures. • Coordinate guestroom maintenance work with the engineering and maintenance department. Position Requirements: • High school graduate or equivalent. • Previous hotel-related experience desired.
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Functions: • Receive and inspect all incoming materials and reconcile with purchase orders. • Process and distribute documentation with purchase orders; reports, documents and tracks damages and discrepancies on orders received. • Ensure all goods received are of good quality. Position Requirements: • High School Diploma required. • Two years experience as a Storekeeper required. • Must be computer literate.
Purchasing Agent:
Functions: • Prepares purchase orders by verifying specifications and price; obtaining recommendations from suppliers for substitute items; obtaining approval from requisitioning department. • Verifies receipt of items by comparing items received to items ordered; resolves shipments in error with suppliers. • Provides purchasing planning and control information by collecting, analyzing, and summarizing data and trends. Position Requirements: • High School Diploma required. • Two years experience as a Purchasing Agent required. • Must be computer literate. Competitive salary and benefits package are commensurate with experience. interested persons should submit their resume to recruitment.humanresources@outlook.com
PAGE 6 , Thursday, July 28, 2016
‘Tragedy’ for regulation to force business closure From pg B1 Paul W. Albury & Sons’ principals to obtain a better understanding of the issues forcing the business’s closure, Mr Sumner said the Chamber “grieved” every time this happened to a Bahamian company. This, he added, was especially the case if a firm was forced to cease trading as a result of “avoidable” issues, such as government regulations or policies. “It would be a tragedy, and very sad, to see any business close because of any conditions in the marketplace, particularly those businesses that are well-established and have been serving the Bahamian community for a very long time,” Mr Sumner told Tribune Business. “When you have a business closing, it becomes grievous to the Chamber. We are grieved by the fact
that businesses are having to close, particularly when it comes to issues that are addressable or can be avoided through further collaboration with the regulatory agencies and, with a little extra effort put in, fix the economy and cause companies to thrive in a sound and progressive environment.” Mr Sumner said the Chamber was keenly aware of the challenges faced by companies such as Paul W. Albury & Sons, adding that it was “working every single day to address the myriad issues impacting the private sector”. One such concern is price controls, which many businesses believe are an unnecessary Government intervention that distorts the market, forcing companies to sell numerous ‘breadbasket’ products and other items ‘below cost’ in the name of consumer protection.
They instead argue that there is sufficient competition within most sectors of the Bahamian economy to keep prices keen and prevent ‘gouging’, while many consumers are often far more sophisticated than given credit for. Echoing these themes yesterday, Mr Sumner said: “While we understand that price controls are intended as a means of consumer protection, we would prefer to see market forces prevail, so that businesses are not boxed in on what they can price their goods for. “All businesses should be able to sustain and hold their margins at reasonable levels where it is profitable to do business, and they can be sure customers and clients are able to afford their goods and services. “It can’t get to the point of imposing what they can and can’t charge, and that hampers the goals of the private sector and their ability to generate profits to stay in business.” Renewing previous calls for greater collaboration
between the Chamber, the Consumer Protection Agency and Price Control, Mr Sumner added: “We feel that if we move more to a free market economy where goods are priced on supply and demand, competition, availability and economic conditions, we can create a more competitive environment where goods and services are priced at a competitive level for the marketplace.” Pointing out that all Bahamas-based companies invested heavily to serve
THE TRIBUNE their clients, Mr Sumner said there were only losers if price caps “hamper their ability to grow”. Apart from the loss of jobs and associated disposable income, business closures also led to reduced economic activity and lower tax revenues for the Government. “It’s incumbent on us to ensure businesses in this country, especially small and medium-sized enterprises (SMEs), are able to feel - and have confidence - their businesses can grow,
and are not going to be hampered by any level of bureaucracy that causes them to go without profitability,” Mr Sumner told Tribune Business. “Deficits cause them to close their business... When we hear businesses are closing, we become very concerned and want to find out why, and what can cause them to reconsider. The Chamber knows these challenges, and is working on them every day.”
PRIME COMMERCIAL lot of land located on Windermere Road off East Bay Street adjacent to Red Carpet Inn and the UBS Bank building contains approximately 31,000 square feet. Portion of property presently used as a parking lot and is income producing. Inquiries should be directed to J. Albury at 324-7856 (H) or 424-2624 (Cell)
THE TRIBUNE
Thursday, July 28, 2016, PAGE 7
Bahamian economy ‘as low as it can go’ From pg B1 we’d like,” he told Tribune Business. “We are having discussions, and expect to see positive outturns on these initiatives very soon. These are what the business community has identified as some of the vexing concerns for doing business in the country.” Top of the Chamber of Commerce’s agenda were the issues of VAT refunds, which numerous businesses complain are delayed or take too long, plus the demand for companies to produce TCCs to obtain payment for goods and services already rendered to the Government. Tribune Business revealed earlier this week
how Wilmac’s Pharmacy, the business owned by the family of Democratic National Alliance (DNA) leader Branville McCartney, was unable to obtain payment from the National Insurance Board (NIB) because of delays in obtaining a TCC through the Government bureaucracy. As a result, even though NIB is contractually obligated to pay Wilmac’s within one week for drugs supplied under the National Prescription Drug Plan (NPDP), Mr McCartney revealed his firm was only able to gain payment for early June late last week - a seven-eight week wait. Mr Sumner yesterday expressed hope that the
NHI threatens 20% rise in doctor costs From pg B1 US, Caribbean and Latin America. With the Government understood to not be in favour of a foreign provider, the PHP proposal was quickly followed by a rival submission from Dr Conville Brown, entitled ‘The Case for an IPA for universal healthcare in the Bahamas’. Setting out his argument, Dr Brown warns that the NHI Bill has “major implications for the healthcare providers”, particularly the requirements associated with record-keeping. “These regulations highlight, in particular, the need for physicians to establish EMR (electronic medical records) and management information systems,” Dr Brown’s paper says.
“The regulatory requirements underpin the objectives and values of the patient-centred home (the healthcare model favoured by the Government and its consultants, Sanigest).” “The inspectors have wide sweeping powers, and the penalties are extremely punitive: Up to $50,000 fines and years of imprisonment,” Dr Brown added. “These regulatory requirements will add major expenses to their [doctors’] practice – at least 20 per cent with additional staff and equipment. “There have been no government grants to defray expenses, and no formal programmes to assist the physician in delivering these new models of care.” The IPA proposals have surfaced just as the pace of
Chamber’s patient lobbying efforts would encourage the Government to modify its TCC and VAT refund regimes. He added that the BCCEC had also met the Comptroller of Customs two weeks ago to discuss the new fines and fees regime that accompanied the 2016-2017 Budget. Ocean shipping and air cargo airlines are especially concerned about the changes to regulation 147 in the Customs Management (Amendment) Regulations. This requires all cargo planes to submit their C7 general declaration forms to Customs, detailing all freight items they are bringing in, to Customs one hour before touching down in the Bahamas. While this will incur a $75 processing fee, any C7s submitted less than an hour before arriving in the Baha-
mas will be subjected to a $2,500 charge. Air cargo operators will also be subjected to a $5,000 per item fine for every “prohibited or restricted good” found on board. A fine equivalent to 25 per cent of the value will also be incurred for every item not declared prior to landing in Nassau, impacting couriers and both air and sea logistics/transportation operators. “The Chamber expressed some of those concerns,” Mr Sumner said of the meeting with the Comptroller. “We have made a commitment to work with the Customs Department to ensure all those impacted by the new Customs policies know what they are, and where there are areas of concern we addressed those fully with the Comptroller.”
Mr Sumner added that the same issues had also been taken up with Simon Wilson, the financial secretary. He said: “We are satisfied that they are taking the Chamber’s point of view seriously, and taking it into consideration. “We saw where some of the recommendations made in our pre-Budget meeting made it into the Budget. We are satisfied we are representing the views of the private sector at large properly.” Mr Sumner said the Chamber was likely, within the next fortnight, to release a paper detailing what the group has been doing, and its advocacy accomplishments on the private sector’s behalf. He added that its directors had also held their firstever retreat in North Andros last weekend, where they “hashed out the strate-
gic agenda for the Chamber over the next five years”. Some of Mr Summer’s comments appear to have been a riposte to Nassau Institute executive Rick Lowe, who in a letter to The Tribune accused the Chamber of being “missing in action” when it came to standing up for the private sector. “Meetings were supposed to have taken place between the Government and the representatives of the business community (Chamber), but nothing has changed and there is no report from either party,” Mr Lowe said. “Regretfully, the Chamber appears to have fallen back into the mode of government policy facilitator instead of fulfilling its role as the representative of the business community.”
consultation on the Government’s universal healthcare (UHC)/NHI reforms has picked up once again. Tribune Business understands that the Government wants to bring the revamped NHI Bill to Parliament next month, and its consultants, the KPMG accounting firm, have been meeting with doctors and other healthcare stakeholders either individually or as groups. Yet the increased costs foreshadowed by Dr Brown will again raise concerns over NHI’s feasibility and sustainability, given the prevailing weak, uncertain economic environment. His paper points out that rising expense pressures threatened to exacerbate “the high and increasing cost of healthcare”, which was already reflected in its share of the Government’s annual Budget. The paper pointed out that Government healthcare spending had “doubled” be-
tween 2001 to 2010, with 9.7 per cent of Bahamian GDP going towards the sector per year - a sum equivalent to 2,233 per person. It added that the Government’s healthcare spending, which had increased from 14 per cent to 19 per cent of its Budget between 2009 and 2013, was expected to increase by $36 million per year between now and the 2019-2010 fiscal year. “We are in the 90th percentile in health care spending in the region, but we have lower life expectancy and higher infant mortality rates than those in the region who are spending considerably less. We are not getting value for money,” Dr Brown argued. “This lends to considerable waste and inefficiency in the system. One can make the case that no new money need be injected into the health care system; we need only to improve efficiency and minimise wastage.” Against this background, both Dr Brown’s proposal, and the rival PHP model, argued that forming the IPA model would help to generate efficiencies and savings under the Government’s NHI/universal healthcare model. “This model represents the most modern way of administering health care
based upon evidence, and will serve to better unite the Bahamas private and public healthcare systems,” the PHP proposal added. “The IPA Model of healthcare will work in the Bahamas as this is the best model of healthcare delivery in a ‘free market’ health care environment, because of the natural controls that can be put in place to force compliance, efficiency, quality, unity among providers, economies of scale and financial responsibility.” Dr Brown, meanwhile, wrote: “Healthcare costs have spiralled far beyond the allotted budgets of both the public and private sectors. “Driven by consumerism and an aging population, the demands for healthcare services have outstripped available resources. This is a global phenomenon, as every country faces the challenges of access, availability, affordability and equity of care for all. “Healthcare reform has become the new mandate in health care services, and to meet the triple aim in healthcare: To improve the healthcare experience of the individual, to better the health of the population, and to provide healthcare at lower costs. To do this, our delivery systems must be
better managed with greater efficiency and quality.” Arguing that it was too “cost prohibitive” for doctors to focus on both quality of care, negotiate insurance contracts and manage costs, Dr Brown added: “The need for establishing partnerships to share costs and resources and to provide leverage for negotiations of their reimbursements has never been greater. This need gave birth to the Independent Practice Association.” He added that IPAs would handle administrative functions related to cost-control on behalf of their members, allowing doctors to focus on patient care and quality outcomes/experiences. And, with insurance companies also returned to their rightful place of underwriting risks, rather than getting involved in healthcare delivery, Dr Brown said an IPA would ensure patients were not denied access to treatment. “In essence, the IPA gives the physician the responsibility to manage the care of the patient and leaves the insurance company with the responsibility to do with they do best: Determine the insurance functions only; the available health benefits, the actuarial cost, payment processes and financial viability,” he added.
Fidelity is seeking persons with strong leadership, communications and interpersonal skills for the position of:
HELPDESK OPERATOR Job Summary: Provide support to staff on all company supported applications. Troubleshoot computer problems and determine source, and advise on appropriate action. Complete application project-based work
Main Duties & Responsibilities: • • • • • • • • • • • • •
Answer staff questions in person and via phone on all company supported applications. Troubleshoot computer problems. Determine source of computer problems (hardware, software, user access, etc.). Advise staff on appropriate action. Serve as liaison between staff and the technology department to resolve issues. Work one-on-one with staff on application projects. Manage inventory and stock in office. Document resolutions for future reference. Perform hardware and software installations. Provide on-the-job training to new department staff members. Provide computer orientation to new company staff. Assist with the EOD schedule. Any other duties as assigned.
Requirements / Qualifications: • Bachelor's Degree and three to five years of application experience. • Advanced knowledge of company supported applications. • Ability to learn and support new applications. • Strong interpersonal skills.
PLEASE SUBMIT BEFORE August 5th, 2016 to:
HUMAN RESOURCES Re: Helpdesk Operator careers@fidelitybahamas.com
ABSOLUTELY NO PHONE CALLS
A competitive compensation package will be commensurate with relevant experience and qualification. Fidelity appreciates your interest, however, only those applicants short listed will be contacted.
PAGE 10 , Thursday, July 28, 2016
Govt refutes Ingraham’s criticism over Baha Mar From pg B3 but it could not possibly have changed the outcome for Baha Mar, except for the worse. “By commencing winding-up proceedings and moving for appointment of provisional liquidators, the Government preserved the possibility of a negotiated resolution, while assuring that the fate of the Baha Mar resort and the claims of its creditors would be determined in the Bahamas - not in a bankruptcy court in Delaware. This measure, among other things, saved Bahamian unsecured creditors the cost of pursuing their claims in the US.” The Government also sought to discredit the parallels that Mr Ingraham sought to draw between Baha Mar’s Chapter 11 filing and that of Resorts International, the former owner of the Atlantis resort on Paradise Island. The ex-prime minister said Chapter 11 had allowed Sol Kerzner to purchase the resort out of bankruptcy protection and transform it into the resort Bahamians know today via a multi-billion dollar investment. However, the Christie administration dismissed any
notion of a similarity between the two, pointing out that Resorts International was a holding company with assets outside the Bahamas, whereas Baha Mar’s assets were concentrated at Cable Beach - and its connection to the US and Delaware “minimal”. “By contrast, the Baha Mar companies’ bankruptcy threatened to harm, and has gravely harmed, the Bahamian economy and Baha Mar’s Bahamian employees and creditors,” the Government said. “The Resorts International bankruptcies affected holding companies and their creditors and led to the sale of the Paradise Island properties to Sol Kerzner; but they did not jeopardize the Bahamian economy or the interests of Bahamian employees or other creditors.”
Mr Ingraham told The Tribune on Tuesday: “The Government was dead wrong to put Baha Mar in liquidation. It made a big mistake when it said that it was against the sovereign interest of the Bahamas for Baha Mar to go into Chapter 11 in the United States. “We’ve had that experience before, (the former) Resorts International - Paradise Island - was in Chapter 11 in America when Mr Pindling was prime minister and when Christie was a minister.” He added: “When (Sol) Kerzner bought Paradise Island, he bought it out of Chapter 11. So we have experience with how Chapter 11 could work, and how it could work successfully, because you can attract a good buyer to come along as Kerzner did, etc. “So the Government should have allowed Mr Izmirlian and his company
to pursue their matter before the court in Delaware, and if they decided to put it in Chapter 11 over there, it would have been fine. Whatever decisions were made later as to who should get the property or not get it would have been approved by the Bahamas government.” Mr Ingraham added: “The Government should not have tilted in favour of the Chinese contractor and those. As a result of that, the Bahamas lost hundreds of millions of dollars in revenue that it would have received. It has its credit rating threatened, thousands of more people unemployed, and it’s having to squeeze out of the population more and more taxes by this VAT.” He said he told Prime Minister Perry Christie this, and wrote him two letters outlining his opinions on the matter.
NOTICE
NOTICE is hereby given that CHANTAL ALPHONSE of Mildred Ave., off Carmichael Rd.,P.O.Box CR-55647, New Providence, 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 21st day of July, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
to advertise today in the tribune call @ 502-2394
NOTICE
NOTICE
NOTICE is hereby given that LEONEL ALCENAT of Carmichael NOTICE is hereby given that CHARLENE MACKEY of Second Street Grove, Nassau, Bahamas, is applying to Rd., P.O.Box CR-55963, New Providence, Bahamas is applying the Minister responsible for Nationality and Citizenship, for to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and registration/naturalization as a citizen of The Bahamas, and that that any person who knows any reason why registration/ any person who knows any reason why registration/naturalization naturalization should not be granted, should send a written should not be granted, should send a written and signed statement and signed statement of the facts within twenty-eight days of the facts within twenty-eight days from the 28th day of July, 2016 from the 21st dAY of JULY, 2016 to the Minister responsible to the Minister responsible for nationality and Citizenship, P.O. Box for nationality and Citizenship, P.O. Box N-7147, Nassau, N.P., The Bahamas. N-7147, Nassau, Bahamas.
NOTICE
NOTICE
NOTICE is hereby given that SYLVIA JUNE HALSTEAD ROLLE of #13 Pioneer’s Way, Grand Bahama, Freeport, 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 21ST day of JULY, 2016 to the Minister responsible for Nationality and Citizenship, P.O.Box N-7147, Freeport, Bahamas.
NOTICE is hereby given that DELISA CYNTHIA McPHEE of Bamboo Crest, Golden Gates #1, P.O.Box SB-52266, New Providence, 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 28th day of July, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
MARKET REPORT WEDNESDAY, 27 JULY 2016
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,970.29 | CHG 2.78 | %CHG 0.14 | YTD 146.34 | YTD% 8.02 BISX LISTED & TRADED SECURITIES 52WK HI 4.01 17.43 9.09 3.50 4.70 0.18 8.34 8.40 6.10 10.60 15.50 2.72 1.60 5.80 8.76 11.00 7.90 6.90 12.25 11.00
52WK LOW 2.25 17.43 9.09 3.14 4.70 0.12 5.85 7.25 5.50 7.00 14.48 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 4.01 15.85 9.09 3.50 5.22 0.12 6.50 8.35 5.84 10.57 14.49 2.51 1.41 5.80 8.76 10.93 7.90 6.40 11.93 10.00
CLOSE 4.01 15.85 9.09 3.50 5.22 0.12 6.50 8.40 5.84 10.57 14.49 2.70 1.41 5.80 8.76 10.93 7.90 6.40 11.93 10.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.05 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
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
114.99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
115.02 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
0.03 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
1,000
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 13.2 11.7 8.4 15.9 N/M N/M 35.1 15.2 11.5 19.5 27.4 28.7 8.5 11.4 14.3 11.4 12.2 9.1 15.8 0.0
YIELD 2.24% 6.31% 0.00% 4.57% 0.00% 0.00% 2.88% 3.10% 3.42% 3.41% 4.21% 2.22% 2.84% 4.14% 3.14% 0.00% 3.54% 1.88% 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
0.000 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 1.99 3.89 1.91 167.58 138.35 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 1.99 3.89 1.91 167.58 136.68 1.44 1.67 1.55 1.06 6.67 8.01 5.81 10.66 8.65
YTD% 12 MTH% 2.09% 4.15% 3.06% 6.67% 1.39% 3.06% 3.41% 5.18% 2.95% -0.58% 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-Jun-2016 30-Jun-2016 24-Jun-2016 30-Jun-2016 30-Jun-2016 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
THE TRIBUNE
THE TRIBUNE
Pending US home sales improved slightly in June WASHINGTON (AP) — The number of Americans who signed contracts to buy homes crept up in June, a possible indication that the recent growth in real estate sales is still on track. The National Association of Realtors said Wednesday that its seasonally adjusted pending home sales index rose 0.2 percent last month to 111, regaining some ground after a dip in May. The index of upcoming sales improved 1 percent from a year ago, as buyer demand remains strong even though there are fewer properties being listed for sale. Pending sales contracts are a barometer of future purchases. A sale is typically completed a month or two after a contract is
signed. The number of signed contracts Completed sales of existing homes rose 1.1 percent in June to a seasonally adjusted annual rate of 5.57 million, the best pace since February 2007, the Realtors reported last week. Even as demand has increased, the number of listings on the market has fallen over the past year. Many homeowners are recovering equity that disappeared after the housing bubble began to burst almost a decade ago. Even though prices are pulling closer to their peaks, these homeowners would be unable to generate enough of a profit from a sale to pay for the expense of purchasing a new home. The number of listings has fallen 5.8 percent from
MACHINERY & ENERGY LIMITED
Parts Warehouse Clerk and Counter Sales Person Machinery & Energy Limited, Parts Department, is looking for candidates to work in its Parts Warehouse and a Counter Salesperson. Candidates should have an academic high school diploma; Successful candidates will be trained to work in the Parts Department Warehouse, assisting with Inventory Control, rebuilding hoses, and Customer Service. Experiences in Warehousing and Customer Service would be an asset. Send complete resume with education and work experience to M & E Limited, P. O. Box N-3238, Nassau, Bahamas, Attention Human Resources Department, or email: me@me-ltd.com Only persons with the necessary requirements will be contacted.
a year ago to 2.12 million, possibly limiting how much sales can continue to increase. The tight supplies have fed into rising home values. The median home sales price has risen 4.8 percent from a year ago to $247,700 in June. That increase is roughly double the pace of average hourly wage gains.
Thursday, July 28, 2016, PAGE 11
a “Sold” sign in front of a house in Andover, Mass. Yesterday, the National Association of Realtors releases its June report on pending home sales, which are seen as a barometer of future purchases. (AP Photo)
PAGE 12 , Thursday, July 28, 2016
WTO chief: global trade not main culprit for lost US jobs GENEVA (AP) — Global trade is not the main cause for the loss of manufacturing jobs in places like the United States and needs to be defended from its critics, the chief of the World Trade Organization said
Wednesday. Director-General Roberto Azevedo rebuffed arguments made by some politicians around the world, such as U.S. presidential candidate Donald Trump, that global trade deals are
a port worker walks through the piled containers in Tokyo. Japan posted a better-than-expected trade surplus in June, 2016, as imports fell nearly 19 percent, outpacing a more modest decline in exports. The customs data released Monday, July 25, 2016, showed a 692.8 billion yen ($6.5 billion) surplus, compared with a 60.9 billion yen deficit in June 2015. (AP Photo)
destroying jobs or causing them to move to lower-cost countries. He pointed to recent studies showing that as much as 90 percent of the U.S. manufacturing jobs recently lost were due to new
CAREER OPPORTUNITY Career opportunities are available for ambitious career-oriented individuals at a mid size hotel. We are inviting experienced persons to apply for the following positions:
Security Supervisor
Prime Responsibilities and Duties are: • Oversee the proper reporting and documentation of all incidents. • Act as focal point for any investigations involving guests and employees, prepare accurate reports and follow up action plans. • Take the lead on all incidents and emergencies. • Monitoring of camera system and schedule patrolling of grounds. • Assist with the smooth and efficient running of the organization. Qualifications & Experience Required: • Three or more years in the security or military (RBDF & RBPF) field. • Three or more years supervisory experience • Excellent leadership and communication skills. • Must be computer literate with strong administrative skills.
Security Officer
Prime Responsibilities and Duties are: • Assist with any investigations involving guests and employees, prepare accurate reports and follow up action plans. • Ensure that any criminal activity does not hamper the smooth functioning of the hotel. • Assist with and ensure the accuracy of all industrial accident reports. • Take the lead on all incidents and emergencies. • Assist with the monitoring of camera system and scheduled patrolling of grounds. • Assist with the smooth and efficient running of the organization. Qualifications & Experience Required: • Two or more years in the security or military (RBDF & RBPF) field. • Excellent leadership and communication skills. • The ability and interpersonal skills to relate with internal and external customers. • Ability to work as part of a team, as well as independently. • Must be computer literate with strong administrative skills. Competitive salary and benefits package are commensurate with experience. Interested persons should submit their resumes via e-mail to
recruitment.humanresources@outlook.com
THE TRIBUNE
technologies, innovation or improvements in efficiency. "It had nothing to do with imports, it had nothing to do with trade competition," he told reporters after a WTO general council meeting. "I don't think we do enough in making the case for trade
because we think trade is so obviously positive for any economy. It's like trying to argue with a friend that he needs to breathe." He declined to comment on weekend remarks by Trump to NBC TV suggesting Trump might pull the
U.S. out of the WTO if its rules prevent his hopes to set fees on U.S. companies that ship jobs abroad. "I don't intend to get into a debate," Azevedo said. "I'm not a candidate." The Brazilian instead announced plans to seek a second four-term at the organization's helm and lamented troubles in world trade. "We are in a particularly sensitive moment in the global economy with economic volatility, low growth and weak trade expansion," he said. "We are seeing the weakest five-year period of trade growth since the 1980s." Azevedo defended the WTO's role in helping to resolve disputes like a recent U.S. complaint alleging China unfairly limits raw materials exports, hurting U.S. manufacturers. Asked about the impact of Britain's vote to quit the European Union on international trade, Azevedo said WTO officials were "still exploring" the consequences. "We have no precedent for this. This is the first time that ... if it actually happens, and when it does happen, we would have a WTO member without a schedule of commitments," he said. Alluding to Britain, Azevedo said: "You don't unilaterally decide what your commitments are with the other members. We'll have to negotiate those commitments ... How do you get there? It could be very simple, or it could be very convoluted and complicated."
THE TRIBUNE
Thursday, July 28, 2016, PAGE 13
Chinese tech firm LeEco agrees to buy Vizio TV maker for $2B MENLO PARK, Calif. (AP) — Chinese video streaming company LeEco is breaking into the U.S. TV market by buying Vizio, a manufacturer of budget-priced sets. The combination promises a marriage of hardware and content as tightly linked as your smartphone is to your monthly voice and data plan. The $2 billion purchase announced Tuesday marks another ambitious foray by LeEco. The company’s chairman and CEO, billionaire Jia Yueting, is also behind Faraday Future, an electric car company building a massive plant near Las Vegas. At an event in Los Angeles, Jia promised “disruptive pricing” reminiscent of how it bundles video subscriptions with smartphone and smart TV purchases in China. He also said the company would launch its U.S. presence in a few months with an event in Silicon Valley, where it has opened its U.S. headquarters in San Jose.
LeEco CEO Jia Yueting, left, and Vizio CEO William Wang shake hands at a news conference where it was announced that LeEco had acquired Vizio for $2 billion, Tuesday, July 26, 2016, in Los Angeles. (AP Photo) Vizio is based in Irvine, California, and has been the No. 2 TV brand in North America behind Samsung for the past seven years, according to research firm IHS Markit. Vizio will continue
to operate as an independent subsidiary, and its brand will remain. Vizio founder and CEO William Wang will leave to run a spun-off data company called Inscape. The deal is to close by year’s end.
The deal will help Vizio expand to markets beyond the U.S., Canada and Mexico. Meanwhile, with some 24 million internet-connected TVs combined, including some 8 million LeEco has sold in China, LeEco gains a larger audience for movies and TV shows that it produces or licenses. It is sometimes called the “Netflix of China,” although it plans to allow U.S. customers to access Netflix on its smart TVs. Winston Cheng, LeEco’s global head of corporate finance and development, said in an interview that the company will need to expand its content offering to appeal to non-Chinese customers. IHS Markit analyst Paul Gagnon says he’s not convinced the strategy of linking LeEco’s content to its hardware will work as well in the U.S. as it has in China, where LeEco claims to be the No. 1 TV brand. “One of the reasons LeEco is so successful in China is there isn’t so much competition in terms of
companies doing a good job selling movies and TV shows,” Gagnon said. “In the U.S. we have companies like Netflix and Hulu and ESPN and HBO. There’s already built-in competition. It’s not going to be easy.” Jia owns half of LeEco. One of its businesses, LeVision Pictures, is co-financing “The Great Wall,” a blockbuster starring Matt Damon. After the theatrical run, the movie will likely be offered for free streaming to LeEco and Vizio TV owners, but this is just one piece of a larger strategy to marry video subscriptions and hardware, Cheng said. In a sign of its deepening relationship with moviemakers, the company brought on stage both “Great Wall” director Zhang Yimou and former Paramount Pictures president Adam Goodman. Cheng said LeEco is also planning an initial public offering of stock in the U.S. within four years to raise money for video content and research and development.
Japan poised to pump up sluggish growth with new stimulus TOKYO (AP) — Japanese Prime Minister Shinzo Abe announced plans Wednesday for a fresh barrage of economic stimulus to help revive stalling growth. Speaking in the southern city of Fukuoka, Abe put the scale of the extra spending at more than 28 trillion yen ($265 billion). That would be nearly 6 percent of Japan’s GDP. But analysts said they believed much of the money was already in the pipeline, and the money would be spread out over multiple years, diluting its impact. The proposed package is due to be approved by the Cabinet on Aug. 2, the Kyodo news service reported. It would then be included in
a supplementary budget for consideration by the parliament’s extraordinary session in September. “The new economic package needs to be something which would bolster domestic demand and ensure a trajectory toward economic recovery,” Abe said. Chief Cabinet Secretary Yoshihide Suga told reporters in a routine briefing on Wednesday that the ruling party and its coalition partner the Komeito were still haggling over details of the plan. He said raising the minimum wage by at least 20 yen (about 19 cents) an hour is another key aim. “Raising the minimum wage and encouraging more consumer spending is ex-
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Earlier reports put the size of the package as low as 6 trillion yen (about $57 billion). Economists say the Bank of Japan also will likely expand monetary stimulus at a policy meeting that begins Thursday. “The Abe administration continues to highlight the importance of cooperation with the Bank of Japan for a fiscal stimulus package,” Alex Wijaya of CMC Markets said in a commentary.
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PAGE 14 , Thursday, July 28, 2016 Japanese Prime Minister Shinzo Abe delivers a speech in Fukuoka, southern Japan, yesterday. Prime Minister Abe announced plans Wednesday for a fresh barrage of economic stimulus to help revive stalling growth. Abe put the scale of the extra spending at more than 28 trillion yen ($265 billion), the Kyodo News Service and other local media reported. (AP Photo)
THE TRIBUNE
Global stocks rise on Japan stimulus ahead of Fed statement SEOUL, South Korea (AP) — Global stocks rose Wednesday after Japanese Prime Minister Shinzo Abe announced plans for a 28 trillion-yen ($254 billion) stimulus package ahead of the latest policy statement from the U.S. Federal Reserve. KEEPING SCORE: In Europe, Britain’s FTSE 100 rose 0.5 percent to 6,760 while France’s CAC 40 gained 1.4 percent to 4,457. Germany’s DAX advanced 0.8 percent to 10,325. Wall Street was poised for a solid opening too, with Dow fu-
tures and the broader S&P 500 futures up 0.2 percent. JAPAN STIMULUS: Japan is likely to be in focus through Friday when the country’s central bank is expected to deliver a fresh monetary stimulus. Ahead of that, Abe announced plans for extra spending worth more than 28 trillion yen to help boost growth. Details of how the spending will be allocated remains uncertain and analysts say much of the money may already be in the pipeline. FED WATCH: The poli-
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THE TRIBUNE
Thursday, July 28, 2016, PAGE 15
Fed’s more upbeat tone suggests rate hike as early as Sept WASHINGTON (AP) — The Federal Reserve said Wednesday that nearterm risks to the U.S. economy have diminished, reviving the prospect that it will resume raising interest rates as soon as September. The Fed noted that the U.S. job market has rebounded, with robust hiring in June after a deep slump in May. At the same time, the Fed said in a statement after its latest policy meeting that it plans to closely monitor global economic threats and financial developments to ensure that they don’t slow the economy. The Fed seemed to be referring in particular to Britain’s vote last month to leave the European Union — a move that poses risks to the rest of Europe and to the global economy. The central bank gave no specific timetable for when it might resume the rate hikes it began in December, when it raised its benchmark rate from a record low. But some analysts who had doubted that the Fed would be ready to raise rates as soon as September said Wednesday’s statement
appeared to revive that possibility. “The Fed is saying that near-term risks have diminished, so that certainly puts September back in play,” said Brian Bethune, an economics professor at Tufts University. Bethune said he still thought the Fed would wait until December before raising rates but that a September move was possible if hiring remains strong and the global economy and markets remain stable. Greg McBride, chief financial analyst at Bankrate. com, noted that “the Fed gave a very upbeat assessment of the U.S. economy, which is the first step toward prepping markets for another rate hike.” Some also suggested that the Fed’s brighter outlook suggests that it’s become less concerned that a British exit from the EU — commonly dubbed “Brexit” — would seriously undermine the U.S. or global economy. The statement signals that the Fed “does not think that Brexit will be a significant hindrance for the U.S. economy,” said Carl Tan-
nenbaum, chief economist at Northern Trust. Analysts said the next important signal of the Fed’s thinking could come when Chair Janet Yellen speaks at an annual central bank conference in late August in Jackson Hole, Wyoming. Stock averages posted a modest increase Wednesday after the statement was issued at 2 p.m. Eastern time, before drifting lower later in the afternoon. The yield on the 10-year Treasury note dipped from 1.53 percent to 1.51 percent. The decision to leave its key rate unchanged in a range of 0.25 percent to 0.5 percent was approved on a 9-1 vote. Esther George, the president of the Fed’s Kansas City regional bank, dissented for the third time this year, arguing for an immediate quarter-point rate hike. A few months ago, it was widely assumed that the Fed would have resumed raising rates by now. But that was before the U.S. government issued the bleak May jobs report and Britain’s vote last month to quit the EU triggered a brief investor
Federal Reserve Chair Janet Yellen testifies on Capitol Hill in Washington, before the House Financial Services Committee hearing on U.S. monetary policy. The Federal Reserve releases its latest monetary policy statement yesterday, after wrapping up a two-day meeting. (AP Photo)
panic. Since then, though, a resurgent U.S. economy, the bounce-back in hiring and record highs for stocks have led many economists to predict a Fed move by December if not sooner. In June, employers added 287,000 jobs, the most since October 2015.
Additional Hikes In December, when the Fed raised its benchmark rate from a record low near zero, it also laid out a timetable for up to four additional rate hikes this year. But intensified fears about China’s economy and a plunge in oil prices sent markets sinking and led the Fed to delay further action. Once the markets stabilized, the Fed signaled
a likely rate increase by midyear. Anemic hiring in April and May, though, raised concerns, and it left rates alone. The central bank was also affected by Britain’s forthcoming vote on whether to leave the EU, anticipation of which had rattled investors. Now, though, the pendulum has swung back, especially after the arrival of a reassuring June jobs report. The Standard & Poor’s 500 stock index had plunged 5.3 percent in the two trading days after Britain’s vote. It has since regained all those losses — and set new highs. The economy is also picking up after the year’s anemic start. Stronger consumer spending is thought to have lifted growth, as measured by the gross domestic product from the January-
March quarter to the AprilJune quarter, with further acceleration expected later this year. In the spring, consumers boosted spending at the fastest pace in a decade. Economists also foresee a lift from business investment, reflecting a rebound from cutbacks in the energy sector. All that strength might argue for September rate hike, especially if monthly job growth equals as least 200,000 between now and then. Still, the risks of raising rates again too soon and possibly choking off economic activity may seem greater to the Fed than the risks of waiting longer. It has room to accelerate its rate increases if the economy were to heat up so much as to ignite high inflation.
PAGE 16, Thursday, July 28, 2016 Trader Robert Arciero works on the floor of the New York Stock Exchange, yesterday. Stocks are opening higher, led by gains in technology stocks after Apple posted solid quarterly earnings. (AP Photo)
THE TRIBUNE
US stocks edge mostly lower despite a big gain for Apple NEW YORK (AP) — Stocks ended Wednesday’s trading slightly lower as shares of energy companies and consumer goods makers outweighed gains in technology companies like Apple. Investors also worked through the Federal Reserve’s latest policy state-
ment. The Fed didn’t make any changes to interest rates but left the door open for increases later this year. The Dow Jones industrial average fell 1.58 points, less than 0.1 percent, to 18,472.17. The Standard & Poor’s 500 index lost 2.60 points, or 0.1 percent, to 2,166.58. The technology-
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heavy Nasdaq composite rose 29.76 points, or 0.6 percent, to 5,139.81. Apple jumped $6.36, or 6.6 percent, to $103.03. While the company reported lower revenue and iPhone sales, it still earned $7.8 billion last quarter, well above analysts’ estimates. Apple had been one of the biggest drags on the market this year as investors became concerned that its years of massive growth were coming to an end. Apple nearly erased its loss for the year. “The expectations for Apple were abysmal,” said Daniel Morgan, a portfolio manager at Synovus Trust Company who owns Apple shares. “Everyone is waiting for later this year, when Apple releases new products.” Apple, one of the 30 stocks in the Dow Jones industrial average, is the first of the major technology companies to report this week. Investors got results from Facebook after the close of trading Wednesday, which will be followed by Amazon and Google later this week. Facebook shares jumped 8 percent to $131.05 in aftermarket trading after the company’s quarterly results easily surpassed analysts’ expectations on both sales and profit. The company said roughly 1.71 billion people now use Facebook at least once a month, up 15 percent from a year earlier. Coca-Cola, another component of the Dow, fell $1.48, or 3.3 percent, to $43.40 after the beverage giant trimmed its sales outlook for the year, citing weak demand in China and other international markets. Coke has faced headwinds in the U.S. and internationally as more consumers move away from sugary drinks. Twitter, which also reported its results late Tuesday, plunged $2.68, or 15 percent, to $15.77. The social media company reported another loss and said user adoption rates continue to slow. Roughly 313 million people regularly used Twitter last quarter, a fraction of the 1.7 billion people who use Facebook regularly. “It’s really now becoming a question on whether Twitter as a concept is something financially viable,” Morgan said. “Fundamentally, is this going to work?” The Federal Reserve voted to keep interest rates unchanged while noting that “near-term risks” to the economy have “diminished.” The Fed said the U.S. job market has rebounded, with strong job gains in June following weak growth in May. Investors will get another policy decision by one of the world’s central banks on Friday, when the Bank of Japan is likely to vote to increase its economic stimulus efforts. Benchmark U.S. crude fell $1, or roughly 2.3 percent, to close at $41.92 a barrel on the New York Mercantile Exchange, continuing its month-long decline. Brent crude, used to price international oils, fell $1.40 to $43.47 a barrel in London. Energy stocks were among the biggest decliners as oil prices fell. Marathon Oil, Transocean and Hess Corporation all fell roughly 4 percent or more. Bond prices rose. The yield on the 10-year Treasury note fell to 1.51 percent from 1.56 percent, most of the gains coming after the Fed’s announcement. The dollar rose to 105.23 yen from 104.63 yen and the euro fell to $1.1054 from $1.0986. In metals, the price of gold rose $5.90 to $1,326.70 an ounce, silver rose 31 cents to $20 an ounce and copper fell 4 cents to $2.19 a pound. In other energy commodities, heating oil fell 3 cents to $1.30 a gallon, wholesale gasoline futures fell 2 cents to $1.32 a gallon and natural gas fell 4 cents to $2.67 per 1,000 cubic feet.