THURSDAY, AUGUST 8, 2024
‘No stone unturned’: Fidelity’s $9m profits perfectly paced
By NEIL HARTNELL Tribune Business Editor
A BISX-listed bank yesterday said it is leaving “no stone unturned” after disclosing that its six-month profits are near-perfectly on pace to hit 2024’s fullyear target of $18m. Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told Tribune Business the lender’s $8.978m half-year net income is spot-on the trend required to achieve its profit projections with fee and commission earnings alone forecast to exceed the 2023 full-year by 20 percent or more.
Affirming that the retail bank is benefiting from pursuing “things taken for granted”, such as recovering $90m in previously
written-off consumer loans, he responded to concerns that Fidelity Bank (Bahamas) and himself have too high a profile by asserting that the Bahamian capital markets are generally “found wanting” when it comes to shareholder disclosures and transparency. Speaking after the bank’s recent annual general
meeting (AGM), Mr Bowe told this newspaper that the overall credit market “flattened out” during the 2024 first half with loan portfolio growth “a bit more accelerated” than during the same period in 2023. He added that Fidelity Bank (Bahamas), and the wider commercial banking industry, were benefiting from the continued evolution of this nation’s first-ever credit bureau as its reports on the creditworthiness of potential borrowers are forcing many to settle past outstanding loan debts with other institutions.
‘Strengthened’ URCA asserts any GBPA rate approval illegal
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
GB Power’s extra squeeze on Freeport’s few survivors’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
FREEPORT’S “few survivors” are being forced into ever “increasing losses” through cost hikes passed on by Grand Bahama Power Company and other major operators, a hotelier warned yesterday.
Magnus Alnebeck, Pelican Bay’s general manager, told Tribune Business that the 6.3 percent base rate increase proposed by the island’s electricity supplier poses a further threat to the “shrinking economy” and a deterrent to future investment in Grand Bahama.
newspaper that this was still susceptible to global oil price movements.
“It’s like every other cost that gets added on to hotels,” he said of GB Power’s proposal. “We are not talking about reducing profits in Freeport; we are talking about increasing losses. And, when we are increasing losses in the hotels, there are very few variable costs we can do anything about except payroll.
“It’s the usual Freeport problem. Our economy is shrinking drastically, constantly in Freeport, and the big companies are passing on costs to the few survivors which makes it even harder to attract future investment. Being Freeport, this is how it works in Freeport. It’s a shrinking economy and loss-making hotels. This will just mean that the losses get bigger.”
Juan McCartney, URCA’s corporate and consumer relations manager, told Tribune Business that the revised Electricity Act passed recently by Parliament had solidified its claim to be the energy regulator in Freeport by
URCA yesterday drew on its newly “strengthened” position to assert it would be illegal for the Grand Bahama Port Authority (GBPA) to approve the 6.3 percent base rate hike sought by GB Power. The Utilities Regulation and Competition Authority (URCA), setting the stage for a clash between national legislation in the shape of the Electricity Act and the Hawksbill Creek Agreement, Freeport’s founding treaty, argued that the application made by GB Power should have been submitted to itself and not the GBPA.
enshrining this in statute law.
“We’ve always maintained that we have the regulatory power in Freeport, and we believe the new Act has strengthened our position and cleaned up any ambiguity anyone may have had,” he said.
Calling for GB Power’s submission to be reviewed by “someone other than the Grand Bahama Port Authority (GBPA)”, such as the Utilities Regulation and Competition Authority (URCA), he warned that the first place where employers will seek to cut costs is their payroll/workforce if pushed beyond breaking point.
Voicing scepticism over GB Power’s assertion that the base rate increase will be more than offset by fuel cost savings from its hedging initiative, with 75 percent of customers seeing either no change or a modest $2 per month decrease in their total light bills, Mr Alnebeck told this
GB Power’s tariff proposal, which would cover the three-year period between 2025-2027 and take effect from the upcoming New Year’s Day, has to be approved by the GBPA as the utility’s regulator (see other article on Page 1B). However, Mr Alnebeck questioned why it was seemingly increasing costs for its remaining customers as a response
Money broker on hold after ‘illegal’ warning
By ANNELIA NIXON anixon@tribunemedia.net
The concept of Smart Cities is revolutionising urban living, ushering in an era where technology and data are the cornerstones of efficient, sustainable and livable environments.
As urban populations continue to swell, with projections estimating that 68 percent of the world’s population will live in cities by 2050, the need for innovative solutions to manage resources and improve the quality of life has never been more pressing. Smart Cities represent a response to this challenge, leveraging cutting-edge technologies to create urban areas that are not only more efficient but also more responsive to the needs of their inhabitants.
At the heart of the Smart City is data. From sensors embedded in infrastructure to smart phones in the hands of residents, data is being collected on an
ROYE II KEITH
unprecedented scale. This data, when analysed, provides valuable insights that can be used to improve city services. For instance, traffic management systems can use real-time data to optimise traffic flow, reduce congestion and lower emissions. Similarly, waste management can be revolutionised by using data to
optimise collection routes and schedules, ensuring resources are used more efficiently.
Sustainability is a key objective of Smart Cities. Renewable energy sources, such as solar and wind, are being integrated into the urban energy grid thus reducing reliance on fossil fuels. Buildings are becoming more energy efficient, using smart systems to manage heating, cooling and lighting. Water management systems are also being enhanced, with sensors detecting leaks and optimising usage to conserve this precious resource.
Smart Cities are transforming public services. In the realm of healthcare, telemedicine and smart health monitoring systems are making healthcare more accessible and efficient.
Education is also benefiting, with smart classrooms and online learning platforms providing flexible
and personalised learning experiences. Public safety is another area enjoying significant advances, with surveillance systems and predictive policing technologies helping to reduce crime rates and improve emergency response times.
One of the most exciting aspects of Smart Cities is the potential for enhanced citizen engagement. Digital platforms enable residents to interact with their city in new ways - from reporting issues such as potholes or broken streetlights to participating in decisionmaking processes through online forums and surveys. This not only empowers citizens but also ensures that city officials are more attuned to the needs and concerns of the community.
While the promise of Smart Cities is immense, there are challenges that must be addressed. Privacy and security are paramount, as the vast amounts of data
collected could be vulnerable to breaches or misuse. Ensuring equitable access to smart technologies is also crucial, as there is a risk of creating a digital divide where only certain segments of the population benefit from advances.
Moreover, the implementation of Smart City technologies requires significant investment and co-ordination among various stakeholders, including government agencies, private companies and the residents themselves. It is essential that these initiatives are guided by a clear vision and comprehensive planning to ensure they meet the intended goals.
Despite these challenges, the trajectory of Smart Cities is undeniably positive. As technology continues to evolve, so too will the capabilities of our urban environments. The vision of cities that are not only more efficient and
sustainable, but also more responsive to the needs of their inhabitants, is becoming a reality. Smart Cities represent a new paradigm in urban living - one that harnesses the power of technology to create spaces that are better for people and the planet.
Rosewood partners on 500job Exuma project
ROSEWOOD Hotels & Resorts yesterday confirmed it has teamed with a Miami-based investment company to brand a new development in the Exuma cays billed as creating 500 Bahamian jobs.
The high-end chain, in a statement, said it has teamed with the Yntegra Group for the latter’s proposed resort development on the 124-acre East Sampson Cay private island. It added that Rosewood Exuma will feature just 33 suites all offering views of the island’s pink and white sands, with several sitting directly on the beach.
Felipe MacLean, Yntegra Group’s chef executive, said Rosewood Exuma would “redefine” the hospitality industry in Exuma.
“We are enthusiastic about the partnership with Rosewood Hotels & Resorts and believe that the brand’s iconic hospitality expertise will help to redefine the industry in Exuma and create more than 500 jobs for Bahamians,” he added.
“This partnership represents our shared vision to create exceptional experiences that inspire and delight our guests while being good community partners who are committed to Exuma.” The resort is scheduled to open in 2028.
Six food and beverage outlets will showcase Bahamian delicacies, including ingredients grown from the resort’s organic garden.
Rosewood said its signature Asaya concept will immerse guests “in time-honoured Bahamian wellness
traditions”, with the 20,000 square foot property featuring six treatment rooms, a hydrotherapy facility, outdoor tranquil pool and fitness centre.
The resort chain said this will be complemented by an outdoor sports centre featuring tennis, padel and pickleball courts, as well as water sports equipment. Rosewood Exuma will also include a fully serviced beach club with a grill restaurant, beach and pool bars, and a private dining room.
Two marinas are planned to accommodate yachts up to 150 feet. Rosewood and Yntegra, in their statement, both pledged to prioritise sustainable building practices throughout the development. They promised that just 25 percent of the 124 acres will be developed, while solar power will be implemented with the aim of minimising impact to the island.
Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, said: “Exuma is the ideal destination for the new Rosewood resort. The introduction of Rosewood Exuma, in partnership with Yntegra Group, represents an exciting milestone for our tourism industry.
“We are thrilled about the expansion of the Rosewood brand and the immense potential for growth in Exuma. This development highlights the unmatched luxury and adventure that Exuma offers while emphasising our commitment to sustainable and balanced growth.”
L to R: Michael Dojlidko, co-chief development officer, Rosewood; Paul Arnold, vice-president of development - Americas, Rosewood; Philip Davis KC, Prime Minister and minister of finance; Felipe MacLean, chief executive, Yntegra Group; Chester Cooper, deputy prime minister and minister of tourism, investments and aviation; and Graeme Davis, president, Baha Mar.
Thai boxing champ in up to $25m investment
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A THAI boxing world champion from France is willing to invest a further $20m to $25m in developing the Champion Spirit Country Club as a fitness/wellness facility in western New Providence.
Abdoulaye Fadiga, president of Rose In Atlas Ltd, is currently seeking permission from the Town Planning Committee to rezone ten acres near the western side of South Ocean Boulevard from “residential”’ to “commercial” to facilitate the project’s development.
Andretti Bain, former Bahamian Olympic athlete and head coach for Champion Spirit, said the facility will include a high-intensity performance area catering to professional athletes and
create job opportunities for local sports professionals. He said: “It’s our intent to promote overall health and well-being by providing individuals with access to specialised fitness training programmes, cutting edge equipment and expert guidance from certified professionals.
“Our goal is to cater to a wide range of needs - from Olympic level athletes aspiring to qualify for events to those looking to enhance direct performance or seeking to improve their general fitness and wellness. We will create job opportunities, and potentially stimulate the local economy by attracting visitors and members from around the world, every major country participating in, hopefully, every major sport.”
Mr Bain said the proposed facility will include a recovery zone providing various treatments, and
Money broker on hold after ‘illegal’ warning
from any involvement in money broking or related activities.
The regulator, in a notice issued to the public yesterday, warned Bahamians they would be conducting business and financial transactions with an entity that was “not authorised or regulated” by itself because Loans by Phones had failed to register with it as required by the 2020 Act.
While the East Street South-based business had been licensed, and registered, under the original Financial and Corporate Services Providers Act 2000, it had failed to renew this during the six-month transition period granted when it was replaced by the 2020 version.
“It has come to the attention of the Commission that JTS Investment Securities Ltd, doing business as Loans By Phone, is conducting activities in or from within The Bahamas that is either registrable/licensable or illegal under the Act,” the Securities Commission said.
“The Commission hereby advises the public that this entity and its agents/representatives are not registered with or licensed by the Commission. Therefore, any registrable/licensable activity conducted in or from within The Bahamas by this entity and its agents/ representatives constitutes a violation [under] the Act.” The Securities Commission alleged that Loans by Phones failed “to make this
transition”, and become licensed under the 2020 Act, when it repealed and replaced the first version. As a result, it “does not have a licence to conduct any activity under the Act. Further, the entity has continued conducting its money broking operations, which is unlawful under the Act”.
Mr Smith, though, said that once informed of Loans by Phones’ noncompliance he began the process of applying for a new licence under the 2020 Act. Describing this as ongoing, he added that attorneys are now involved and said: “It’s just a matter of now making the new application.”
Mr Smith said he should be reapplying in another week or two, adding that the registration process has become much more tedious
serve as a “hub” for health education by providing workshops on healthy lifestyles. He added: “We’re looking to incorporate saunas, cold plunging, massage, treatments... anything that’s going to help health.
“Additionally, we will serve as a hub for health education and community engagement, offering workshops and events that promote healthy lifestyles and proactive health management. We have a kids zone, which is a major aspect of our plan. And we want to be able to be community oriented, family oriented.
“We are creating opportunities where their kids can now come in. Their kids will be educated on the importance of health and fitness. We are looking to not only focus on targeting professional level athletes, but also the entire family.”
In addition to a 50-metre outdoor pool, the outdoor
and requires greater professional input from the likes of accountants and compliance officers.
In the meantime, he said he is pursuing other business lines and has stopped promoting Loans by Phone.
Mr Smith added that he is trying to deactivate Loans by Phone’s Facebook page even though Tribune Business research showed that it featured postings made as recently as Tuesday, August 6.
Mr. Smith added that he was previously unaware the Financial and Corporate Service Providers Act,2000 was repealed and blamed this on a lack of communication.
“Not to blame the Commission, because you’re supposed to keep up todate with your things. Maybe it might be because of COVID and the communication,” Mr Smith argued. “With COVID, everybody was locked down and everybody came out of COVID, so the Act was passed. I think the new Act was done during the COVID time.”
fitness facility will feature a boxing pavilion, pickleball, sand volleyball, tennis, padel and racquet courts. There will also be a gymnastics centre with Svetlana Mustafaeva, former head coach of the French Olympic rhythmic gymnastics team, serving as gymnastics advisor, indoor dojo, yoga and meditation pavilions, Pilates studio and a bouldering wall.
Mr Bain said the facility aims to bridge the gap between high-level elite athletes and the local economy by providing the facilities and services they need to further their careers locally.
Documents filed with the Town Planning Committee revealed there was an “initial confusion” as to the zoning of the $5.6m site as Mr Fadiga was initially informed by both the Bahamas Investment Authority
(BIA) and the Department of Inland Revenue, as well as his attorneys and the vendor, that it was zoned for commercial use only to discover this was not the reality.
The project plans to make use of the existing building
on the property, which was previously a horse ranch, instead of constructing new ones. Mr Fadiga said once the necessary approvals have been granted the facility should take about two years to construct using a phased approach.
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If you possess the qualities below, we invite you to apply for the position of:
ADMINISTRATIVE ASSISTANT, INVESTMENTS
Since its inception in 1997, RF Group has been committed to helping clients create and manage wealth. We are your local private bank connecting Bahamians with the best in local and international investments.
The Administrative Assistant, Investments is an integral member of the Investments unit. This role supports the Investments department in the day-to-day administration of its activities.
Key
Responsibilities:
Perform general administrative and clerical duties while providing administrative support to individuals/the department, and assisting internal/external clients
Prepare requests for funds and payment, prepare reports for management, minutes and other ancillary documents
Data entry into spreadsheets and/or databases
distribution, answering telephones, write memos, as directed.
Bachelor’s degree in Business Administration or equivalent
Minimum 4 years related experience
Excellent administrative and communication skills
(verbal and written)
Ability to work independently as well as with a team
Ability to multi-task
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Strong leadership abilities
Please apply online at:
Deadline to Apply is Friday, 9th August 2024
Bahamas ‘resolves’ all US aviation audit
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE deputy prime minister last night said The Bahamas has “resolved” all findings by US aviation regulators to maintain its top-tier standing with them.
Chester Cooper, minister of tourism, investments and aviation, said this nation “has successfully completed” the most recent International Aviation Safety Assessment (IASA) audit by the Federal Aviation Administration (FAA).
The audit, which was conducted in October 2023, assessed the Civil Aviation Authority Bahamas (CAAB) for compliance with international safety standards set by the International Civil Aviation Organisation (ICAO). The outcome was previously branded as “critical” to maintaining, and expanding, the access Bahamian-owned airlines enjoy to the US market.
“The public would recall the recent passing of the Civil Aviation Amendment
Act 2024 and the Civil Aviation Authority Amendment Act 2024, which directly resolved many of the findings,” Mr Cooper said. “We have been notified by the FAA that, after reviewing the objective evidence submitted by the CAAB prior to the deadline of July 31, 2024, none of the open findings remain unresolved.”
The deputy prime minister, previously addressing Parliament on the two Bills, had said the improvements to the Civil Aviation Act and Civil Aviation Authority Act were vital to maintaining The Bahamas’ top-tier Category One status with the FAA. The reforms were designed to resolve 46 “findings” made during the IASA audit of The Bahamas’ aviation regulatory and safety regime. A downgrade, and loss of Category One status, would impede Bahamian-owned airlines in accessing this nation’s primary tourist and commercial market and prevent them from expanding into new routes.
“If we are able to satisfactorily address these findings, The Bahamas would maintain its current rating of a Category One, meaning that the Commonwealth of The Bahamas met the international safety standards established by ICAO (the International Civil Aviation Organisation),” Mr Cooper said.
“If we do not maintain our Category One status, air carriers from The Bahamas who are currently approved to operate into the US will be placed on heightened surveillance and all new operators, expansions in existing services or changes in existing services to the US will be strictly prohibited. It is therefore critical that we pass these amendments.”
Bahamian aviation operators backed Mr Cooper’s assessment. Paul Aranha, principal of Trans-Island Airways and Trans International Airways, told Tribune Business: “It’s really crucial for The Bahamas especially because of our proximity to the US. If we are downgraded to
Category Two you cannot add any planes or expand routes or make technology changes.
“It gives the US carriers an incredible advantage because they can just expand into The Bahamas and we cannot even respond to it. It’s really important to maintain that status because the US is only 150 miles away. I’m very confident that we will.”
Research by Tribune Business showed that the FAA’s IASA audit is designed to assess a country’s compliance with “eight critical elements of effective aviation safety oversight” as detailed by ICAO, the global regulatory standard setter.
These elements are identified as a country’s legislative framework; aviation operating regulations; state civil aviation system and safety oversight functions; quality of technical personnel and their training; technical guidance and provision of safety information; licensing, certification and authorisation; surveillance; and how safety concerns are
resolved. The audit occurs every five to seven years.
Mr Cooper, meanwhile, reiterated: “The passage of the Civil Aviation Amendment Bill 2024 and the Civil Aviation Authority Amendment Bill 2024 is crucial for the future of aviation in The Bahamas. These amendments will not only address the FAA IASA findings, ensuring that we maintain our Category One rating, but also
GB Power’s extra squeeze on Freeport’s few survivors’
FROM PAGE B1
to PharmaChem Technologies’ closure and lower-than-expected demand.
The Pelican Bay chief argued that GB Power’s base rate increase bid was akin to his resort, in response to occupancy levels decreasing from 40 percent to 30 percent, telling guests that room rates have to be increased to compensate.
Describing the push back from Ginger Moxey, minister of Grand Bahama, as “very encouraging”, Mr
Alnebeck said: “Instead of trying to make it easier, it becomes harder. As seen in the minister of Grand Bahama’s statement, we’ve had more problems with the power supply this summer than ever, and historically Freeport has had better power supply than elsewhere, but we are quickly going in the same direction.
“My view is that it [the rate increase application] should be evaluated by someone other than the GBPA because they seem to not have a problem with it.” Nikita Mullings,
GB Power’s chief operating officer, on Tuesday said the 6.3 percent proposal came after the loss of its biggest single customer, PharmaChem, and lowerthan-expected demand by other industrial clients who account for one-third of electricity load.
In response, Mr Alnebeck said it appeared that “it’s only in Freeport that the charge has to be passed on to everyone still here. If that’s the case, it’s like running a hotel with occupancies going from 40 percent to 30 percent,
and next week telling the guests that rates have gone up because occupancy has gone down.
“That seems like a great encouragement to attract future investment,” he added. “In my mind the best way to encourage future investment is to keep current investors happy. It’s not good at all, but there is very little one can do about it. There is no other power supplier, so all we can do realistically is say it’s wrong. The extension cord from Florida is not long enough.”
Mr Alnebeck said Pelican Bay’s occupancy rate is presently in the “low 40 percents” range, and added: “We are a little bit behind the same time last year. It’s up and down depending on what happens at the Shipyard, and now we’re getting into the time of year that if there are any hurricanes and tropical storms there is less and less commercial travel. There’s very little, if any, tourists coming here.”
James Carey, the Grand Bahama Chamber of Commerce’s president, told Tribune Business that the information and rationale released by GB Power to-date was insufficient justification for the base rate increase it is seeking.
“It doesn’t speak very much to the justification
for the rate increase,” Mr Carey said. “It refers to some inflation figures but is not giving guidance as to how the company is being impacted by inflation. It’s difficult to appreciate what’s happening. There have been no Town Hall meetings and information coming out; it’s been very sparse.
“There are a number of things that are not clear right now. If the rate increase is to be justified, more information needs to be forthcoming. After Hurricane Dorian we were taxed to help restore the outside plant; the lines and that sort of thing. Many years ago, the Power Company used to insure the outside plant.
“There’s a quality of information missing to say it’s a justifiable thing. I don’t want at this stage to say it’s out of hand and shouldn’t take place. It will impact the community, impact businesses, and while someone may say it’s only 6.3 percentage points it’s 3.8 percent of the whole” based on the base tariff accounting for 60 percent of the total bill.
“Adding 4 percent to someone’s light bill that’s already $500 a month, it’s still adding $20 per month and, over a year, it’s $240,”
pave the way for continued growth and innovation in our aviation sector.”
The FAA IASA audit was announced on July 17, 2023, with the actual assessment taking place last year from October 16-20. Mr Cooper said the audit identified 46 findings across the eight critical elements, and the primary focus was to increase the autonomy of the Civil Aviation Authority Bahamas (CAAB).
Mr Carey added. “The whole picture needs to be looked at. We always seem to get a little curve ball coming back to us. The information is very scant. If they can show some justification as to why this increase is necessary there would be some level of understanding.”
Ms Mullings, in her statement yesterday, said: “With the impact of our fuel hedging programme, residential, general large service and large industrial customers are forecasted to receive a small reduction on an all-in basis while commercial customers would see a small, estimated increase of less than 2 percent.
“Since our last rate adjustment in April 2022, we have seen reduced sales from our general large service customer classes due to lower energy consumption, the loss of our largest customer and significant inflationary pressures.
“We know there is no good time to propose a rate increase, but the requested adjustment is essential to maintain and improve the efficiency and reliability of services, and to allow us to invest in critical infrastructure maintenance as outlined in our system resource plan to enable the integration of renewable energy sources in keeping with the Government’s targets.”
CHESTER COOPER
GBPA TEAMS WITH UNIVERSITY TO IGNITE LOCAL ENTREPRENEURS
THE Grand Bahama Port Authority (GBPA) has teamed with the University of The Bahamas (UB) in a bid to narrow the gap between academic theory and practical application for students.
The two parties, in a statement, said they have signed a Memorandum of Understanding (MoU) involving UB’s IGNITE initiative in a bid to aid academic and professional development, nurture entrepreneurial talent and stimulate economic growth on Grand Bahama. They added that the IGNITE initiative is designed to equip students with skills to excel in today’s competitive job market. By integrating academic learning with hands-on experience, it aims to develop a new generation of leaders and entrepreneurs.
Derek Newbold, the GBPA’s chief investment officer, said: “We are enthusiastic about supporting this initiative, which includes guiding curriculum development and entrepreneurship courses.
“Our objective is to ensure that educational programmes align with the evolving demands of the job market and empower aspiring entrepreneurs with
essential skills. Our team of experienced managers and executives will provide mentorship, and we are committed to supporting the programme through financial contributions.”
Dr Maria Woodside-Oriakhi, UB’s vice-president and provost of academic affairs, added: “This MoU aligns with our mission to elevate educational experiences by
offering practical learning opportunities, internships and direct access to industry leaders. It underscores our commitment to promoting entrepreneurship among our students.”
The initiative’s executive director, Keturah BabbHiggs, said it transcends traditional education and serves as a catalyst for transformative change.
‘No stone unturned’: Fidelity’s $9m profits perfectly paced
Disclosing that the credit bureau’s reports have been employed for 35 percent of loans disbursed by Fidelity Bank (Bahamas) during 2024 to-date, a more than four-fold increase from the 8 percent recorded just two years ago, Mr Bowe again urged the Government and private sector to work together to resolve “the overhang” of distressed mortgaged properties from the 200-2009 recession rather than build new homes.
“We are, and not to be sort of superior, but we are literally on the $9m mark, which is the half-way mark to our annual target of $18m,” he told Tribune Business of the bank’s halfyear profit performance.
“The exact number was $8.978m.
“When we look at the contributing factors they are very consistent with the first quarter. The exercise in pursuing written-off debt has continued to benefit profitability. We have seen net interest income stabilise itself, so the loan portfolio remained stable.
“The fee and commission income has remained consistent with the growth from the first quarter, which means there will be at least a 20 percent growth over the prior year and it’s likely to be more. The [merchant] card business, as it comes on board, it’s like annuity income.”
Alfred Stewart, Fidelity Bank (Bahamas) chairman, writing in its just-released 2023 annual report conceded that last year’s financial performance was “well below the
expectations of shareholders of the bank given the levels of profitability and returns that has become the norm”.
While net and total comprehensive income equalled $13.8m, and the return on shareholder equity some 13.65 percent, Mr Stewart added that the results “triggered assessments of the business models, including products and services, information expectations”. He said “these resets are being executed effectively” based on the 2024 first-half results.
Mr Bowe yesterday confirmed Fidelity Bank (Bahamas) strategy to focus on small and medium-sized businesses plus Family Island second homeowners, with Eleuthera confirmed as the second location for its agency banking-type model that allows consumers to conduct electronic transactions via a kiosk while a third-party provider handles cash.
“There are multiple elements we are working on simultaneously to ensure revenue stay stable and, given that the loan market rebound will likely take some time, maintain profits,” he added. “There are a lot of unturned stones we are turning over, existing products for new markets and some things we’ve taken for granted.
“The debt written-off and not pursued is certainly an area of profit as each one recovered goes to the bottom line, while loan restructuring goes to loan growth.” As for fees and commission income, which Mr Bowe told shareholders in the annual report account for less than 15 percent of total income, the bank is
seeking to grow these by introducing “value-added services”.
“If the first half is any indication we’ve seen some flattening of the lending market, which means we’re not seeing contraction, and growth is a bit more accelerated than it was last year when it was $23m across the sector,” the Fidelity chief told Tribune Business.
“We’re seeing improvements, and people seeking financing with other institutions and told they have debts with us because of the credit bureau reporting. It’s good. It means that people are comfortable enough to start borrowing, and not able to shed their legacy obligations. The credit bureau reporting means all persons have to regularise their outstanding situations.”
Mr Bowe revealed that loan disbursements using a credit bureau report had increased from 8 percent of the total in 2022 to 20 percent a year later and, then, to 35 percent for 2024 to-date. This marked a fourfold increase in percentage terms in just two years.
“We’re using the credit bureau reporting more often,” he added. “More of those loan disbursements have elements of the credit bureau and credit reporting factored in. What it means now is that persons appreciate they simply cannot pretend not to know the debts they have.”
Mr Bowe, though, said the Government was “unwisely and naively” continuing to build new homes rather than working with the banks and other lenders to first liquidate the remaining portfolio of distressed
mortgage properties from the 2008-2009 recession.
“You look, for example, at the mortgage malaise and we have so much distressed inventory, and the Government - unwisely and naively - continues to build new inventory without sucking up the inventory overhang we have,” he added.
“The IMF, in its financial sector assessment programme, said the reality
is that The Bahamas has not yet brought itself out of the overhang of the 2008-2009 great recession as we have so many distressed properties. In the event we have a similar event to 2008-2009, we will not fare as well because we have the distressed property situation.
“While they are building more housing, and making commentary that there is not enough housing, there
The MoU signing, held at the GBPA’s headquarters on July 30, marks the official launch of the initiative. The next cohort of the IGNITE programme will start their participation in the upcoming academic semester in September, with applications opening this month. Prospects can visit ubignite.com for more information and to apply.
is a tremendous amount of housing in the distressed overhang.” Mr Bowe also made no apologies for the bank’s visible public profile.
“I took the position ever since I joined that I speak candidly and directly,” he added. “The Bahamian capital markets are still found wanting in terms of disclosure by comparison to the US, Europe and Asia. We’ve become accustomed to communicating.”
R: Keturah Babb-Higgs - Executive Director UB IGNITE, Dr. Maria Oriakhi – UB Provost & VP Academic Affairs, Derek Newbold
Chief Investment
GBPA Group and Joye Ritchie, Project Coordinator UB IGNITE.
DEREK NEWBOLD
NASA SAYS CHANCES ARE GROWING THAT ASTRONAUTS MAY SWITCH FROM BOEING TO A SPACEX RIDE BACK TO EARTH
By MARCIA DUNN AP Aerospace Writer
WHAT should have been a quick trip to the International Space Station may turn into an eight-month stay for two NASA astronauts if they have to switch from Boeing to SpaceX for a ride home.
There's lingering uncertainty over the safety of Boeing's new Starliner capsule, NASA officials said Wednesday, and the space agency is split over the risk. As a result, chances are increasing that test pilots Butch Wilmore and Suni Williams may have to watch from the space station as their Starliner is cut loose to return to Earth empty.
THIS photo provided by NASA shows Boeing’s Starliner spacecraft which launched astronauts Butch Wilmore and Suni Williams to the International Space Station docked to the Harmony module’s forward port on July 3, 2024, seen from a window on the SpaceX Dragon Endeavour spacecraft docked to the adjacent port.
NASA/AP
he said. A final decision is expected by mid-August.
Boeing issued a brief statement following NASA's news update, repeating its position that the capsule could still safely bring the astronauts home.
"We still believe in Starliner's capability and its flight rationale." the company said.
If that happens, NASA would leave behind two of four astronauts from the next SpaceX taxi flight in late September, with the vacant seats set aside for Wilmore and Williams on the return trip next February. The pair expected to be gone just a week or two when they launched June 5 as Starliner's first crew.
same time, NASA is looking more closely at SpaceX as a backup, At this point, "we could take either path," said Ken Bowersox, NASA's space operations mission chief.
NASA is bringing in additional experts to analyze the thruster failures experienced by Starliner before it docked. At the
During a recent meeting, "We heard from a lot of folks that had concern, and the decision was not clear,"
Boeing will need to modify the capsule's software in case Starliner ends up returning without a crew.
No serious consideration was given to launching a separate SpaceX flight just to retrieve Wilmore and Williams, according to commercial crew program manager Steve Stich.
Tests on the ground have replicated the thrust problems, pointing to seals as one culprit. But it's still not understood how or why those seals swell when overheated and then shrink back to the proper size, Stich noted. All but one of the Starliner's five failed thrusters have since been reactivated in orbit. These thrusters are essential for allowing Starliner to back away from the space station following undocking, and for keeping the capsule in the proper position for the deorbit.
At the same time, engineers are grappling over helium leaks in Starliner's propulsion system, crucial for maneuvering. The
‘Strengthened’ URCA asserts any GBPA rate approval illegal
“We believe any ambiguity has been cleaned up about URCA’s authority.
“This [GB Power’s rate increase application] is something that has occurred since the new Act became law and we’re responding to that.” URCA issued a formal statement on the matter after being urged by Jobeth Coleby-Davis, minister of transport and energy, to “enforce stringent compliance” with the Electricity Act and “halt” any approvals that may be given by the GBPA.
In a statement, she argued that the review and approval process overseen by the GBPA “breaches our established legal framework” and is in “direct” conflict with the Electricity Act provisions that
establish URCA as the sole energy sector regulator throughout the entire Bahamas including Grand Bahama. However, what neither URCA nor Mrs ColebyDavis mentioned is the continuing legal challenge being mounted by GB Power to URCA’s regulatory authority in Freeport that still remains before the Supreme Court after some eight years. GB Power initially sought an injunction to prevent URCA “from regulating, or seeking to exercise licensing and regulatory authority” over it. GB Power’s action is founded on the basis that, as a GBPA licensee, it is licensed and regulated by the latter via the Hawksbill Creek Agreement - and not
by URCA and the Electricity Act 2015.
It is arguing that the previous Electricity Act’s sections 44-46, which gave URCA the legal right to licence and oversee energy providers, “are inconsistent, and conflict with, the rights and privileges vested in [GB Power] and the Port Authority” by the Hawksbill Creek Agreement.
GB Power’s statement of claim argues that itself and the GBPA “have been vested with the sole authority to operate utilities”, including electricity generation and transmission and distribution, within the Port area until the Hawksbill Creek’s expiration in 2054. Cable Bahamas, too, also has a separate legal action contesting URCA’s jurisdiction and authority
to regulate its Freeport subsidiary.
However, the new Electricity Act 2024, which treats Grand Bahama as a Family Island, makes the Grand Bahama Power Company the “approving authority” for anyone submitting a proposal to supply electricity to the public on the island.
The Act states that any approvals by such an “authority” must also be given the go-ahead by URCA, and this has been interpreted as a neat way of circumventing the GBPA’s utilities regulatory authority in Freeport and transferring it to URCA via GB Power Company. Thus the stage for a major regulatory and legal clash has been set.
And the nature of Mrs Coleby-Davis’ statement yesterday could also be interpreted as undermining URCA’s status as an independent utilities regulator free from government influence and control as it gives the impression of instructing it on what to do.
“The Ministry of Energy and Transport has written to the Utilities Regulation and Competition Authority (URCA) expressing its unequivocal objection to the recent action taken by the Grand Bahama Port Authority (GBPA), which claimed sole regulatory authority over electricity tariffs....,” Mrs Coleby-Davis said in a statement.
“The letter, issued by JoBeth Coleby-Davis, minister of energy and transport, to Randol Dorsette, URCA chairman, and Carlton Smith, chief executive, details the significant regulatory irregularity the GBPA’s actions have introduced.”
The release continued:
“The GBPA’s stance is in direct contravention of the Electricity Acts of 2015 and 2024, which clearly designate URCA as the regulatory body responsible for overseeing the energy sector throughout The Bahamas.
“This unilateral decision by the GBPA to approve a rate increase application from GB Power, without the oversight or consent of URCA, is particularly troubling. It not only breaches our established legal framework, but also threatens the Government’s ongoing efforts to reduce energy costs for all Bahamians.
“The ministry has called on URCA to enforce stringent compliance with the Electricity Act and to halt any rate increases that have not undergone proper regulatory review.” In fact, the GBPA has yet to approve GB Power’s application for a 6.3 percent base rate increase.
However, Mrs ColebyDavis, asserting that GB Power’s application potentially undermines the Government’s drive to lower energy costs, added: “We trust that URCA will take swift and decisive action to address this issue and uphold the rule of law within our energy sector.”
Seemingly taking its cue, URCA said the Electricity Act’s section 4 (3) makes it clear that the new law applies to electricity suppliers such as GB Power whether they are based in Freeport or elsewhere. It added that there was no exception to its oversight and, as such, suggested any approval by the GBPA would contravene the Act and be illegal.
“The Electricity Act 2024 also gives URCA sole
first leak occurred before liftoff, but was deemed isolated and stable. Then more cropped up in flight.
NASA hired Boeing and SpaceX to ferry astronauts to and from the space station, after the shuttles retired in 2011. SpaceX flew its first crew in 2020. Boeing stumbled on its first test flight without a crew and then fell further behind after a repeat demo.
Officials repeated their desire for a backup taxi service on Wednesday, A situation like this one could happen again, and "that's why we want multiple vehicles," Bowersox said. The next crew flight will be SpaceX's 10th for NASA.
regulatory oversight for rates and scales of charges for electricity,” URCA added. “Section 38 of the Electricity Act states that any public electricity supplier or authorised public electricity supplier wishing to adjust their rates between now and June 1, 2027, must apply to URCA setting out the reasons for the proposed rate change.
“Before any licensee can impose a change, URCA must approve the change. GB Power has yet to submit the requisite tariff rate application to URCA for its consideration pursuant to the Electricity Act 2024. URCA does not recognise the authority of any other entity to regulate electricity anywhere in The Bahamas, and has not delegated any such authority to any other entity.
“URCA will not hesitate to use its powers established under the law to ensure that anyone aiding in the contravention of the law is subject to appropriate action.” The escalating electricity regulation dispute comes at an especially sensitive time in Nassau-Freeport relations.
Both the GBPA and the Government are moving through the process towards eventual arbitration proceedings over the latter’s assertion that it is owed $357m for the provision of public/government services over and above tax revenues generated by the city between 2018 and 2022. By seemingly digging in its heels over the utilities regulation issue, the GBPA is likely at best irritate the Davis administration - not least because the latter’s recent Electricity Act reforms sought to circumvent the ability of Freeport’s quasi-governmental authority to regulate the energy sector.
Photo:
FAA has doubled its enforcement cases against Boeing since a door plug blew off a 737 Max
By DAVID KOENIG AP Airlines Writer
A FEDERAL Aviation
Administration official said Wednesday that the agency has 16 pending enforcement cases against Boeing, half of which have been opened since a door plug blew off a 737 Max in midflight.
The increase in cases was disclosed Wednesday during a National Transportation Safety Board hearing into the accident, which happened during an Alaska Airlines flight on Jan. 5.
Brian Knaup, who helps manage the FAA's oversight of Boeing, said one of the open cases involves the removal of parts that have already been installed on airplanes in production.
That is apparently what caused the mistake that led to the Alaska Airlines accident: Bolts that were removed to open the door plug for maintenance workers were not replaced when the panel was closed and the plane left a Boeing factory near Seattle.
Knaup's comment came near the end of a two-day hearing that included discussion of Boeing's poor tracking of parts-removal jobs. The company failed to document who opened the door plug, and the missing bolts were never found.
Another FAA official overseeing Boeing, Bryan Kilgroe, said he is kept awake at night wondering "especially considering all that has happened since Jan. 5, is why is it so difficult
to sustain a corrective action for the long term?"
Boeing said it had no comment.
The safety board released released testimony by Boeing employees who said they were pressured to build planes too quickly and not raise safety concerns.
NTSB Chair Jennifer Homendy cited two employees who worked on aircraft doors where the Alaska Airlines plane was assembled and claimed they were moved to other areas — "Boeing prison" and "a cage" — after the door-plug blowout.
"What sort of impression does that give your employees if you sideline them ...?
It is retaliation," Homendy said. She said "sidelining" the two workers runs against Boeing's policy, which is not to retaliate against workers for unintentional mistakes.
Homendy said the NTSB will survey workers at Boeing's factory in Renton, Washington, where the Alaska Airlines plane was produced, about the company's safety culture.
Representatives from Boeing and key supplier Spirit AeroSystems described their "safety management systems," which encourage employees to voluntarily report safety concerns without fear of punishment. Boeing officials touted their "Speak Up" program for reporting concerns about quality and safety.
NOTICE
NOTICE is hereby given that ARNOLD CICERON #229 East Street South, Nassau, 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 8th day of August, 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 LUCNER ERNEST of #7 East Street and Wulff Road, Nassau, Bahamas N-10600 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 1st day of August, 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 DOMINIC TANGUAY of P.O. Box N-4632, #6 Trafalgar Street, Blair, Nassau, 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 1st day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that JACQUELINE JACQUES of P.O. Box AP-59347, Pinewood Gardens, Nassau, 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 1st day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
However, the president of the machinists' union local said Boeing often ignores safety concerns raised by the union until he lodges a complaint with federal regulators.
"It really sounds great," the official, Lloyd Catlin, said of Boeing's safety plan. "In action on the factory floor, it is not."
The FAA has been roundly criticized for lax regulation of Boeing ever since two deadly Max crashes in 2018 and 2019 killed 346 people. Those charges gained
new momentum after the Alaska Airlines accident.
The agency's new chief, Mike Whitaker, told Congress in June that FAA oversight "was too handsoff" but is improving. Knaup, a California-based FAA manager, said inspections have increased since the blowout.
FAA safety inspectors "can talk to anyone that's on the (Boeing factory) floor at any time when they are doing an audit, and we do that," he told the NTSB. Door plugs are installed on some 737s to seal a
NOTICE
NOTICE is hereby given that KERMITHE ILENUS of Collins Avenue, Nassau, 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 1st day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
cutout left for an extra exit that was not required on the Alaska jet. The plug on the Alaska plane was opened at a Boeing factory to let workers fix damaged rivets, but bolts that help secure the panel were not replaced when the plug was closed. The accident on Alaska Airlines flight 1282 occurred minutes after takeoff from Portland, Oregon, on Jan. 5. The blowout left a hole in the plane, oxygen masks dropped and the cockpit door flew open. Miraculously there were no major
injuries, and pilots were able to return to Portland and land the plane safely.
A Boeing official said Tuesday that the company is redesigning door plugs so they cannot be closed until they are properly secured. Elizabeth Lund, who was named Boeing's senior vice president of quality shortly after the blowout, said the company hopes to complete the fix within about a year, and that 737s already in service will be retrofitted.
NOTICE
NOTICE is hereby given that KERLY VERNE Marsh Harbour, Abaco, 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 8th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
THIS image taken Sunday, Jan. 7, 2024, and released by the National Transportation Safety Board, shows the section of a a Boeing 737 Max where a door plug fell while Alaska Airlines Flight 1282 was in flight.
Photo:NTSB/AP
Dolce & Gabbana launches
some vets and petowners are skeptical
and
THE
but not all veterinarians agree with the use of fragrances for dogs, because they could interfere with their sense of smell and cover up bad odours that could be a symptom of various diseases.
By SILVIA STELLACCI Associated Press
FASHION house Dolce & Gabbana has launched a new alcohol-free perfume for dogs called 'Fefé' in honor of Domenico Dolce 's poodle, but not all vets and pet owners agree it's safe or appropriate.
The perfume costs 99 euros ($108) for 100 milliliters (3.4 ounces) and has been certified suitable for animal use. It follows a Safe Pet Cosmetics protocol designed to ensure a degree of safety of cosmetic products for animals comparable to that required for humans, Dolce & Gabbana said.
"Through a compliance recognition to this protocol granted by Bureau Veritas Italia, participating companies demonstrate their sensitivity in creating products that ensure the safety and respect of the animal, in accordance with established standards," the company said in the statement issued for the launch of the perfume.
Bureau Veritas Italia is a publicly held company that provides inspection,
laboratory verification and certification services.
All of the dog owners consulted agree that the fragrance is "gentle and well accepted by their pets," and veterinarians approve of the product, according to the company web page dedicated to 'Fefé', which cites performance reviews by veterinarians and customers.
But not all veterinarians agree on the use of perfumes for dogs, as they may interfere with the animal's sense of smell and cover up bad odors that could be a symptom of diseases.
"Dogs recognize themselves by smells, they recognize a person by a smell," said Federico Coccía, a veterinarian in Rome who holds a doctorate from the University of Teramo.
"When the dog arrives, he sees you, wags his tail, but first smells you and then recognizes you because you are stored in one of his 'smell drawers.' Therefore, this world of smells should not be changed," Coccia added.
Coccia said becoming aware of an ongoing dermatological disease can be problematic if dogs' natural odors are covered up.
"In the case of sebaceous
dermatitis, for instance, the smell somehow completes my diagnosis."
"The smell of breath, the smell of earwax are disguised by the perfume. So, it could be a problem even for us vets," Coccia said.
Among the enthusiastic users of pet fragrances are groomers who take care of the hair and aesthetics of dogs.
Aliof Rilova Tano, a dog groomer at Morgana Carpentieri's La Boutique delle Birbe parlor in Rome, said that in general he is in favor of using fragrances for pets.
"Our dogs live with us, so a little dog at home on the couch next to us with a perfume is always pleasant," he said.
Grooming customers often feel the same way, so much so that customer Mariarita Ricciardi said she is in favor of "anything that has to do with a natural scenting ... and that can also help the quality of the hair." However, there are also pet owners who would never use perfumes on their animals.
"Especially brand perfumes, it seems to be a very exaggerated process of humanization," said Francesca Castelli, a dog-owner strolling in Rome's Villa Borghese.
Pursuant to the provisions of Section 228 of the Companies Act, 1992 Notice is here by given that LEWIS CHIREN LTD is in dissolution and the date of commencement of the dissolution is the 5th of September 2023. The Liquidator of said company is ELCO CORPORATE SERVICES LTD. Located at Loyalist Plaza, Don Mackay Blvd. P.O. Box AB 20377 Marsh Harbour, Abaco, Bahamas.
NOTICE METALIVIA LTD. Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration number 210802 B (In Voluntary Liquidation Notice is hereby given that the above-named Company is in dissolution, commencing on the 6th day of August A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is RAFAEL BACHA BERTI, whose address is Rua Dr. Carlos Gorini, n° 333, Centro, Nova Veneza, Santa Catarina, CEP: 88865000, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 5th day of September A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, of any distribution made before such claim is proved. Dated this 6th day of August A.D. 2024. RAFAEL BACHA BERTI LIQUIDATOR Legal Notice
NEW Dolce
Gabbana dog perfume called “Fefe” in honour of Domenico Dolce’s dog and released earlier this month is displayed on the shop window of the fashion brand boutique in Rome, Tuesday, Aug. 6, 2024. The perfume has been certified suitable for animal use according to the Italian ‘Safe Pet Cosmetics’ protocol,
Photo:Gregorio Borgia/AP
ALABAMA APPROVED A MEDICAL MARIJUANA PROGRAM IN 2021. PATIENTS ARE STILL WAITING FOR IT.
By KIM CHANDLER Associated Press
WHEN Amanda Taylor lived in Arizona, she used medical cannabis to relieve the symptoms of her multiple sclerosis, gastroparesis and other ailments. She returned to Alabama to advocate for medical cannabis in her home state.
Taylor thought victory was in view in 2021 when Alabama overcame years of resistance in the Deep South and approved a medical cannabis program. But three years later, medical marijuana remains unavailable in Alabama because of an ongoing legal fight over some of the licenses to grow and sell the products.
While licensed cultivators have marijuana plants nearing maturity, cannabis products can't be recommended or sold to patients in Alabama while the entire program remains on hold. The delay is exasperating for patients like Taylor.
"It's beyond frustrating," Taylor said. "I'm a very calm person and ... I'm always hoping for the best. But at this point, it's anger because greed is causing so much more suffering."
The Alabama Medical Cannabis Commission has issued licenses to cultivators, processors, and others, but licenses are on hold for five potentially lucrative integrated "seed-to-sale" licenses where companies grow, process, and sell cannabis as well as licenses for dispensaries that will sell the cannabis products. The entire program remains stalled while the dispute plays out in state court.
"We want to see the products out there for patients. Almost daily, we get phone calls from those concerned," said John McMillan, director of the Alabama Medical Cannabis Commission. "That is the No. 1 question we get on our website by far. When are the products going to be available? And everywhere I go, if I speak to civic clubs, that's the first question."
The commission began accepting applications for licenses in 2022 and has
attempted to award the licenses three times. The commission rescinded the awards twice after losing applicants raised concerns about the selection process. The panel adopted new rules and awarded licenses for a third time last December. But companies challenged the awards, arguing, among other things that the commission failed to follow the Alabama Administrative Procedures Act.
Montgomery Circuit Judge James Anderson on July 11 issued a temporary restraining order blocking the issuance of the five integrated licenses, saying there was a "serious question" whether the third round of awards was also invalid.
An attorney for Alabama Always, one of the companies that has pursued litigation after not winning an integrated license, said the commission by law should allow denied companies an opportunity to challenge the qualifications of winning companies.
"That's why this has gone on for so long. They just simply refuse to do it the way it is supposed to be done," Will Somerville, an attorney for Alabama Always, said of the commission.
But for companies that received licenses, the delay is frustrating after they have invested millions of dollars into operations that can't get fully underway.
In an unassuming agriculture building, cloaked by fences and security cameras, 1,500 marijuana plants sprout skyward at a south Alabama facility operated by CRC of Alabama. The plants are about 60 days from harvest, said Rob Levy, chief operations officer for CRC of Alabama.
The plants, grown from varieties with names like apple blossom, hella jelly and blueberry pancakes, are moved through a series of rooms designed to mimic the growing season. The company has invested more than $2 million into the operation, including substantial security costs.
CRC plans to sell their product to one of the state's licensed processors who will turn it into cubes and other products. But with the uncertainty surrounding Alabama's program, it's unclear when the products can get to patients.
"We are all dressed up with nowhere to go," Grady Reeves one of the owners of CRC said. "But the ones that are really suffering are the patients."
Dr. Marshall Walker, an interventional radiologist, said he believes medical cannabis could be beneficial for some of his patients with chronic pain. He said it's "inhumane" that manmade problems are blocking its availability.
"The way I conceive of it, it really is just another tool for the toolbox," Walker said. Walker said he became convinced of the potential benefit after seeing his mother use cannabis when she had esophageal cancer. It controlled her pain enough to allow her to eat.
A similar fight played out several years ago in Florida. Florida voters in 2016 voted to create a medical marijuana program, but litigation followed over a license cap.
As patients in Alabama remain waiting, more states have moved on to allowing recreational use. Twentyfour states have legalized recreational use of marijuana, according to the Pew Research Center. Florida voters will decide the issue this November.
When medical cannabis will become available in Alabama depends on what happens with the litigation, McMillan said. He said the issue will "hopefully" be settled by the end of the year.
CRC, of Alabama, has 1,500
marijuana plants, shown here on July 23, 2024, growing at their Pike County, Alabama facility. The company is one of seven companies licensed to cultivate medical marijuana in Alabama, but the state’s medical marijuana program is delayed because of disputes over other licenses.
medical
Photo:Kim Chandler/AP
As President Milei’s austerity hits hard, jobless Argentines appeal to the patron saint of work
By ISABEL DEBRE Associated Press
STRUGGLING to feed her family after losing her job as a cleaner earlier this year, 56-year-old Norma Villarreal went to church Wednesday in the hardscrabble outskirts of Buenos Aires and waited in the pre-dawn darkness for over an hour to petition St. Cayetano, the patron saint of bread and work.
"We are very hungry and we're tired and since the government never does anything for us, I went to ask the saint," Villarreal said of the Roman Catholic priest canonized in 1671 for using his family fortune to help the poor of Naples.
Throughout decades of political change in Argentina, the annual Aug. 7 pilgrimage to St. Cayetano Sanctuary has served as a potent, and grim, reminder that in Argentina, economic despair remains a constant. But this year might be unique in one thing: The desperation over rising joblessness that drives Argentines to call on St. Cayetano has been matched by rage at the painful austerity program of libertarian President Javier Milei.
The government's shock economic measures — aimed at slashing annual public spending by some 3% of the country's gross domestic product — has created an excruciating recession, pushing up unemployment to nearly 8%.
The aging crowds of pilgrims crossing themselves and clutching rosaries outside the sanctuary have dwindled in recent years — a reflection, observers say, more of the diminishing relevance of Roman Catholicism in Argentina than of any improvement in the unemployment rate, which jumped two whole percentage points in the last five months.
After the pilgrimage Wednesday, the country's trade unions and leftist opposition parties marshaled thousands to protest outside the presidential palace in downtown Buenos Aires, where they chanted against Milei and lamented his mass lay-offs of government workers.
"We have no breakfast, just a bit of tea in the morning, but he doesn't see that ... he says we're the cause of the trouble," said 60-yearold Ana Maria Muñoz, who was fired from a municipal job in a wave of dismissals five months ago prompted by Milei's budget cuts. She hasn't been able to find work since.
dissolved and incorporated with other government agencies into the Ministry of Human Capital.
He said the government slashed their budget so much that those who escaped the latest round of layoffs can hardly do their jobs.
“We are very hungry and we’re tired and since the government never does anything for us, I went to ask the saint.”
"They got rid of me, I'm not sure if it was my age or what, but so many of us have been fired," she said, carrying the banner of her state workers' union in the city's main plaza.
While Milei has prioritized combating the country's dizzying inflation rate — which fell in June to 4.2% month on month, the lowest since January 2022. But annual inflation still tops 270%, among the highest rates in the world, outpacing salaries. Unemployment has become a growing concern as Milei's government freezes public works projects and shutters ministries in his campaign to cut down the state.
"There is no humanity or even attention to quality in the decisions being made," said Orlando Ortega, a 58-year-old state worker whose former employer, the National Secretariat for Children, was recently
Norma Villarreal
"For seven months, we've had no resources, we can't travel, we can provide some basic logistical support but we're not even carrying out policy," he said, shouting to be heard over boom of sound grenades and thunderous chants of his fellow union members in the plaza. "When you think about it, firing some hundred seems to have cost the government more than it helped it save." In his daily press conference, Milei's spokesperson dismissed Wednesday's antiunemployment protests as political maneuver by the opposition.
"This administration came to eradicate the evils that have plagued Argentines for decades," spokesperson Manuel Adorni said, accusing the protest organizers of being "responsible for the economic disaster that this government inherited."
Union leaders pushed back, portraying their march as a natural outpouring of anger and grief over lost jobs.
"We demand that Milei give us back the jobs that he took from us and the money that he stole from us," said Rodolfo Aguiar, head of the State Workers Association. "The fiscal surplus is built on suffering."
PEOPLE holding soup ladles and an empty pot march from San Cayetano church to downtown Buenos Aires, Argentina, Wednesday, Aug. 7, 2024, on the feast day of St. Cajetan, known as the patron of the unemployed. The sign reads in Spanish “They starve us to death in the name of freedom.”
Photo:Gustavo Garello/AP
Wall Street slips after a morning rally evaporates as some of the market’s AI darlings drop
By STAN CHOE AP Business Writer
U.S. stocks slumped Wednesday after a morning rally evaporated, but the losses on Wall Street weren't as bad as the manic moves that wracked markets worldwide over the last week.
The S&P 500 slipped 0.8% after an earlier jump of 1.7% petered out. The Dow Jones Industrial Average fell 234 points, or 0.6%, while the Nasdaq composite dropped 1%.
Stocks swung lower as Nvidia, one of Wall Street's most influential companies, went from a morning gain of 4.4% and pushing strongly upward on the S&P 500 to a loss of 5.1% that made it the index's heaviest weight.
Nvidia and other Big Tech stocks have been struggling the last month on worries their prices shot too high amid Wall Street's frenzy around artificial-intelligence technology.
A profit report from Super Micro Computer, whose stock more than quadrupled in less than
three months to start the year, helped further mar excitement around AI. Even though its revenue soared 143% in the latest quarter, profit for the company that sells server and storage systems used in AI and other computing fell short of analysts' heightened expectations. Its stock tumbled 20.1%.
Still, other signals in the market showed less fear than in prior days when sharp losses cascaded globally. The S&P 500 is coming off a 1% rally that broke a brutal three-day losing streak where it tumbled a bit more than 6%.
Several reasons were likely behind the slide for markets worldwide, and one of them centered in Japan seems to be calming.
The Bank of Japan raised its main interest rate a bit last week in a small move that sent aftershocks worldwide. It scrambled a favorite trade among some hedge funds and other investors, who borrowed money for very cheap in Japanese yen and then invested it elsewhere around the world.
Speaking to business leaders in the northern island of Hokkaido, Shinichi Uchida, deputy governor of the Bank of Japan, acknowledged the recent market turmoil, which was also triggered in part by concerns about the slowing U.S. economy.
Japan's central bank can afford to wait, he said, and "will not raise its policy interest rate when financial and capital markets are unstable." He also said he believed the U.S. economy would have a "soft landing" and avoid a recession,
even if fears have risen the Federal Reserve has kept interest rates too high for too long in hopes of stifling inflation.
The Japanese promise offered a balm for markets, nervous about additional moves by the Bank of Japan, which only recently ended its yearslong campaign to keep interest rates below zero.
But it also highlights how risks may remain, suggesting there's still room left for the popular "carry" trade to unwind and that some hedge funds and other
investors may "still remain offsides," according to John Lynch, chief investment officer for Comerica Wealth Management.
Japan's rate hike last week sent the value of the Japanese yen soaring, and the resulting exit of investments by those hedge funds likely slapped turbochargers onto market losses, including Monday's drop for the Nikkei 225. That was its worst since the Black Monday crash of 1987.
The value of the Japanese yen is one of the first things Darrell Cronk, chief investment officer for Wealth & Investment Management at Wells Fargo, checks now when he wakes each morning because it shows how much the "carry" trade is unwinding.
The other thing Cronk checks is the two-year Treasury yield, which he says shows where the market wants or needs the
Federal Reserve to take its main interest rate. Treasury yields tumbled sharply Monday, when fear in the market was spiking and investors were speculating the Federal Reserve may even have to call an emergency meeting to cut interest rates quickly. But they've stabilized since then.
The yield on the two-year Treasury was holding steady at 3.99% Wednesday, where it was late Tuesday. The expectation on Wall Street is for the Fed to cut its main interest rate at its next scheduled meeting next month by either the traditional quarter of a percentage point or a more severe half of a point. In the meantime, earnings reports from the biggest U.S. companies continue to roll in, and the growth for those in the S&P 500 index may end up being the best since 2021, according to FactSet.
SPECIALIST PATRICK KING, left, works at his post on the floor of the New York Stock Exchange, Tuesday, Aug. 6, 2024.
Photo:Richard Drew/AP
Beyond Meat reports betterthan-expected sales despite demand remaining weak
By DEE-ANN DURBIN AP Business Writer
BEYOND Meat on Wednesday reported better-than-expected sales in the second quarter despite continuing weak demand for its plant-based burgers, chicken and other products.
The El Segundo, California-based company said its revenue fell nearly 9% to $93.2 million for the AprilJune period. That was better than the $87.8 million Wall Street anticipated, according to analysts polled by FactSet.
Still, it was Beyond Meat's ninth straight quarter of year-over-year revenue declines as it continues to fight consumer perceptions that its products are overly processed, unhealthy or just not tasty.
Beyond Meat said its sales volumes fell 14% in the April-June period on weaker retail and food-service demand in the U.S. and international markets.
Beyond Meat has been trying to boost demand with new, healthier products. Earlier this spring, the company introduced Beyond Burger patties and Beyond Beef grounds with 60% less saturated fat than the previous products. A healthier sausage, made with avocado oil, followed in June.
And last month, it debuted Beyond Sun Sausage, a product filled with bell peppers, spinach, lentils and other vegetables and fruits. Unlike previous products, Beyond Meat said the new sausage isn't intended to replicate meat, but to be a healthier protein option.
Beyond Meat President and CEO Ethan Brown said consumers and retailers have been reacting positively to the new formulations.
"The main thing that destabilized this category has been the misperception around health," Brown said Wednesday during a conference call with investors.
"We are hammering away at the single most important issue, in our view, that is required to get the entire category going again."
Brown said Beyond Meat is also making progress on streamlining its manufacturing and holding down costs. The company's second quarter gross margin of 14.7% was the highest since the third quarter of 2021.
Beyond Meat is trying to rely less on discounting, and it did raise U.S. prices during the quarter as its new products hit the market, Brown said. But the company didn't see much pushback from grocers, some of whom increased their orders for its products.
"We think that is evidence the product is doing well and the message is resonating," Brown said.
But analysts on the conference call still questioned how the company will bring back customers who may have tried its previous
products but didn't like them. Brown said changing perceptions will take a while, but this time around,
Beyond Meat has the backing of many doctors, dieticians and nutritionists who are praising the health benefits of the reformulated products.
"We don't need everybody to like the product. We need enough people to like it, and that's a very large addressable market," Brown said.
Beyond Meat narrowed its net loss to $34.4 million, or 53 cents per share, from $53.5 million a year ago. That was in line with analysts' forecasts.
The company also revised its full-year revenue forecast Wednesday. It now expects revenue in the $320 million to $340 million range. Previously it had forecast full-year revenue between $315 million and $345 million.
Beyond Meat stock, which has fallen 66% in the past 12 months, was up about 1.5% in after-market trading after the earnings report.
BEYOND Meat products are seen in a grocery store in Mount Prospect, Ill., Feb. 19, 2022.
Photo:Nam Y. Huh/AP