Retailers face ‘sleepless nights’ over Amazon delivery response
By NEIL HARTNELL Tribune Business Editor
nhartnell@tribunemedia.net
BAHAMIAN merchants are facing “sleepless nights” in a race to adapt after being “blindsided” and “side punched” by Amazon’s move to offer ‘free delivery’ to local consumers on certain purchases over $49.
Mark A Turnquest, founder of the fledgling 242 Small Business Association and Resource Centre, and a consultant to many clothing and electrical goods retailers, told Tribune Business yesterday that clients and members in those industries are rapidly assembling teams to determine which - if any - of their product lines will be impacted by the online retailer’s strategy.
The world’s largest e-commerce marketplace, while asserting that the ‘free delivery’ promotion presently has no end, said it only applies to “eligible products” that have not been defined publicly. Mr Turnquest said his clients are taking some comfort from the fact Amazon’s move does not apply to all goods, as this means not all of their own product lines will be subject to intense pricing and other competitive pressures.
‘Pay to play’: Nearly 75% of Bahamian firms pay bribes
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
NEARLY three-quarters of Bahamian firms have admitted to paying bribes to obtain permits and public services, it was revealed yesterday, with this nation ranked fourth in the Caribbean for this type of corruption.
An Inter-American Development Bank (IDB) report, entitled ‘Are we there yet? The path towards sustained growth in the Caribbean’, disclosed that 73.4 percent of Bahamian companies have made “informal” payments to government officials to either obtain or speed-up the necessary approvals or access to services. This ranked The Bahamas behind only Grenada, the regional leader where 78.7 percent of firms admitted to paying bribes;
Dominica and Trinidad & Tobago. These payments, which one governance specialist yesterday argued further ingrain a “pay to play” culture in Bahamian society, were estimated as costing equivalent to 3.1 percent of a Bahamian company’s annual sales - a figure in line with regional trends. Matt Aubry, the Organisation for Responsible Governance’s
(ORG) executive director, told Tribune Business that the report’s findings merely reinforced the urgency with which The Bahamas needs to press on with fully enacting and implementing multiple anti-corruption reforms that have thus far been “stalled, delayed or not seen as a priority”.
Pointing out that Transparency International had in 2018
Rum Cay resort location ensnared in $23m battle
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE developer behind a failed Rum Cay mega resort project must now get Supreme Court permission before launching new legal challenges to its lender’s bid to collect on an unpaid $22.75m debt. Justice Neil Brathwaite, in an October 3, 2024, verdict “struck out” the latest attempt by Montana Holdings to block a Guernseybased investor from enforcing its loan security and moving to sell-off the 875-acre tract that was to be the location for the much-touted $700m Rum Cay Resort Marina development. Describing the developer’s latest action as “an abuse of the court’s process”, the judge also “prohibited” Montana Holdings
from launching fresh proceedings against the Matrix General Portfolio Limited Partnership and its general partner without first obtaining the Supreme Court’s permission.
Noting that Montana Holdings had launched no less than four
Bahamas facing new terror finance threats
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Financial Intelligence Unit (FIU) yesterday said it has received evidence
previous legal actions over the failed project, only to then withdraw or dismiss them itself over so-called “technical or procedural deficiencies”, Justice Brathwaite described the developer’s behaviour as “vexatious”. For that reason, he added that the Supreme Court was justified in imposing conditions over any new challenges it may bring. The verdict reveals the fate of what the first Christie administration proclaimed as Rum Cay’s ‘anchor’ investment project when it signed a Heads of Agreement with for the Rum Cay Resort Marina some two decades ago in 2004. Montana Holdings, headed by UK investor, John Mittens, pledged a $700m investment to construct a condos, second homes and an 80-slip megayacht marina.
Joann Creary, the FIU’s legal counsel, told the Bahamas Institute of Chartered Accountants (BICA) conference that the nature of suspicious transaction reports (STRs) has shifted from those primarily linked to drug trafficking to individuals involved in using crypto currencies for terrorism financing purposes.
“In the early 2000s we received a lot of STRs that centred around the drug
The development, which was to be located along Rum Cay’s southeastern shore at St George’s Bay, was billed as creating up to 400 construction jobs by 20082009 when building ramped up and a similar number of full-time jobs when it became fully operational on an island that only has an existing population of about 60-70 persons.
However, the project subsequently stalled and little has been heard about its fate until now. It is seemingly yet another example of a failed Family Island investment project that has resulted in a massive tract of Bahamian real estate being tied up in legal disputes that have rendered it unusable for years.
currency institutions,” said Ms Creary.
“We are seeing information that is closely related to individuals possibly using the jurisdiction when it comes to terrorist financing. So all of these concepts were not concepts that we are used to dealing with.
However, with the advances of all types of technology, and the fact that we do boast that we are a part of
Ms Creary said the FIU is also received a number of fraud-related reports and has been taking extra measures to prevent cyber attacks. “We are also seeing a lot of STRs relative to fraudulent activities,” she added.
“And, of course, one of the major things that we have been discussing and looking at most recently is how to make sure that we
ranked The Bahamas as the Caribbean leader for the payment of bribes before they were even requested, he added that increasing acceptance of such a culture
MATT AUBRY
FIVE APPRENTICES GIVEN JOBS AS BTVI TEAMS WITH TOP CONTRACTOR
Five Bahamians have landed jobs with Island Site Development (ISD) after participating in a paid apprenticeship initiative offered by the company in partnership with the Bahamas Technical and Vocational Institute (BTVI).
The five were among 10 students – nine males and one female – who were selected from a pool of 100 candidates. During the programme, students had the opportunity to sharpen their skills in carpentry and electrical installation with the well-known Bahamian contractor.
The eight-week ‘Earn
While You Learn’ initiative was launched in Freeport with four weeks in the classroom and four weeks at the work site. ISD’s goal was to give students authentic workplace experience that would prepare them for future employment in the field. Six students were trained in electrical installation and four in carpentry.
At BTVI’s Grand Bahama campus, studies focused primarily on theoretical training with some practical applications.
Eduardo Riquenes, an instructor, led the electrical programme while Joseph Ward oversaw carpentry training. This month, the apprentices began applying their knowledge on-site
Development Bank unveils new chair
THE Bahamas Development Bank (BDB) has named financial services executive, Delphino Gilbert Cassar, as chairman of its Board of Directors.
Mr Cassar, who has experience in private banking, digital assets and technology-driven finance, replaces Senator Quinton Lightbourne, who has become the Caribbean’s alternate representative on the InterAmerican Development Bank’s (IDB) Board of Directors. Currently the president of the Bahamas Investments and Securities Business Association, Mr Cassar also serves as the head of business development and FinTech (financial technology) for the Equity Group of Companies.
A member of the FinTech working group at the
Bahamas Financial Services Board (BFSB), he was honoured as organisation’s 2023 Young Professional of the Year and serves on the Government’s digital advisory panel, where he promotes regulatory innovation in emerging technology sectors. A University of Toronto graduate, Mr Cassar also holds a master’s degree in finance from Harvard University. “I am honoured to join the Bahamas Development Bank at this pivotal time, and look forward to supporting its mission to foster sustainable economic growth. By embracing FinTech and digital innovation, BDB is well-positioned to expand opportunities for Bahamian entrepreneurs and communities nationwide,” he said.
RBC UNVEILS ITS AUTO AND MORTGAGE EXPO
RBC Royal Bank (Bahamas) yesterday announced its Christmas home mortgage and auto loan promotion will be held this Saturday at RoyalStar House on JFK Drive from 11am to 3pm.
The commercial bank, in a statement, said its Home and Auto Expo will feature a no-fee loan and discounted financing rates for clients. On-the-spot financing and insurance options will also be available, and RBC said it has partnered with companies in both the home and auto industries to stage this event.
“We are excited for the upcoming Expo and extend an invitation to all Bahamians to take advantage of this unique event,” said Dwayne Kemp, area vicepresident for RBC FINCO, the bank’s BISX-listed mortgage lending arm. RBC is committed to not only helping clients realise their dreams of owning a home or a car, but we also want to assist them in making their house a home and maintaining their property and automobile.”
at Carnival’s Celebration Cay cruise port. To support them, ISD provided a weekly stipend for the programme’s duration.
Kenton Roker, head of BTVI’s department of construction and mechanical trades at the Grand Bahama campus, said:
“This is a plus for BTVI. It shows that ISD has
confidence in our training and producing employees of this calibre. We look forward to other companies partnering with BTVI to begin similar apprenticeship programmes.”
Jacklyn Frazer-Butler, ISD’s human resources manager, added that the free tuition initiatuve was specifically designed to give
SHOWN from left to right are BTVI’s Head of Department for Construction and Mechanical Trades in Grand Bahama and the Family Islands, Kenton Roker; Electrical Installation Apprentice, Jayden Wildgoose; ISD’s Project Manager, Elango Nanjudan; ISD’s Chief Engineer, Ragu Aijjayan; Electrical Installation Apprentice, Max Ingraham; Electrical Installation Apprentice, Trevez Pickstock; Electrical Installation Apprentice, Ricardo Bullard; Electrical Installation Apprentice, Asia Armbrister; ISD’s Safety Manager, Lavardo Thomas; BTVI’s Grand Bahama Branch Campus Assistant Manager, Gayla Wallace; Electrical Installation Apprentice, Anthony Herry.
students a head start in the construction industry and give them the opportunity to work under skilled personnel with years of experience at no cost.
“A programme of this nature is extremely important in a competitive global job market to ensure that young persons going into the workforce are job ready. This is just one way that ISD is showing our commitment to community building as well as the company’s commitment to making more Bahamians employable,” said Ms Frazer-Butler.
Gayla Wallace, BTVI’s assistant manager at the
Rum Cay resort location ensnared in $23m battle
FROM PAGE B1
However, the project subsequently stalled and little has been heard about its fate until now. It is seemingly yet another example of a failed Family Island investment project that has resulted in a massive tract of Bahamian real estate being tied up in legal disputes that have rendered it unusable for years.
One source, describing the limited construction progress to-date, said Montana Holdings had gotten as far as digging out a marina which is unable to accommodate any boats because it had not completed access to the sea. “It’s a big old, partially built marina but they haven’t even broken open to the sea,” they said. “There’s nothing else. It’s just bush; hard Out Island bush.”
Justice Brathwaite, in his verdict, revealed that Matrix has stepped into the shoes of Montana Holdings’ initial financier, the UKbased Bank of Scotland, by taking over the loan security that still encumbers the 875-acre project site.
However, she alleged that Matrix “was in breach of the agreement and raised issues of the legality of the appointment of a receiver by the intended defendant and the enforceability of the facility”. Ms Curtis alleged that Montana Holdings “had a good cause of action”, and further claimed that Matrix was “liable... for damage and for unlawfully creating an encumbrance on the property over which it has no lawful claim”.
Justice Brathwaite’s verdict identifies Andrew Davies, the Crowe (Bahamas) accountant and partner, as the receiver. He declined to comment yesterday, but Tribune Business understands that while Matrix successfully petitioned for his appointment some years ago, they eventually released Mr Davies from the role after offers to acquire the 875-acre property failed to meet its price and terms.
obligations under the debenture, has not repaid any of the sums advanced or even failed to mention the action that was brought by Montana UK”.
The lender alleged that Montana UK had initiated legal action to prevent a sale of the Rum Cay property some seven days before Montana Holdings did likewise in 2018, even though the latter said there was no connection between the two entities;
A glossy website for the ‘Rum Cay Ocean Resort & Spa’, which is still active, lists Montana Holdings (UK) as the contact and developer of the project. Tribune Business research of filings with the UK Companies House reveals that Montana Holdings (UK) is now in liquidation in Britain, with its remaining sole asset said to be “a leasehold interest in 85 acres of land located on the island of Rum Cay in The Bahamas’.
Grand Bahama campus, said: “BTVI plays a crucial role in developing a suitably-skilled workforce, and we are pleased that a reputable company like ISD has been willing to partner with us, particularly in the areas of carpentry and electrical installation. These disciplines are fundamental to the building trades.
“Hence, this BTVI and ISD launch of the ‘Earn While You learn’ apprenticeship programme partnership is establishing solid bridges between the world of learning and the world of work.”
Mario Carey, principal of Better Homes and Gardens MCR Bahamas, said:
“We’re proud to participate in the RBC Holiday Home and Auto Expo. It’s a chance for us to engage with the community and highlight our real estate offerings. We look forward to meeting everyone and sharing our passion for real estate.”
The Expo will feature an advice event where specialists in finance, legal matters and home décor will offer their insights.
Participating companies will include real estate developers, automotive dealers, home maintenance and supplies, solar power and insurance firms. RBC said special pricing, discount coupons and giveaways will also be available to attendees.
“The plaintiff [Montana Holdings] is a developer of a tract of land situated in Rum Cay, The Bahamas, who has secured by way of debenture a mortgage from the Bank of Scotland to fund the development of the cay,” the judge wrote. “After some time, the defendant [Matrix] took over the debenture from the Bank of Scotland and appointed a receiver over the land to sell said property due to the plaintiff’s alleged failure to repay the loan.”
Michelle Curtis, Montana Holdings’ director of operations, in a February 25, 2021, affidavit alleged that Matrix had acted as an “intermediary on-lender” between Bank of Scotland and the developer when the $22.75m loan was agreed and secured on October 11, 2005.
Montana Holdings sought the Supreme Court’s permission to serve the legal challenge backed by Ms Curtis’ affidavit on Matrix outside The Bahamas, and was initially given the go-ahead. However, Matrix argued that this was riven by procedural irregularities including non-compliance with the Supreme Court’s rules, and the latter’s assistant registrar duly struck it out as an “abuse of process”.
The developer appealed this to Justice Brathwaite, arguing that Matrix breached their agreement by serving the demand for repayment of the $22.75m loan in August 2015 then “terminating” the facility in December 2018.
However, Matrix argued that Montana Holdings had breached its duty to make “full and frank disclosure to the Supreme Court” in applying for permission to serve it outside The Bahamas. It accused the developer of failing to mention “that it has not met any of its performance
The filings list John Faraday as Montana Holdings (UK’s) company secretary, director and a shareholder. He is named in a 2019 Court of Appeal judgment as “an agent” of Montana Holdings, and chief operating officer of the developer’s marina affiliate.
The liquidator for Montana Holdings (UK), meanwhile, said the Rum Cay real estate was acquired “by a connected company”. Montana Holdings (UK) had been granted a 99-year lease over an 85-acre tract, for just $1, and was planning to build private apartments that would be marketed to potential buyers.
“Unfortunately, the development was besieged with unforeseen setbacks largely attributable to the inclement weather conditions and, consequently, the development did not move forward,” the UK liquidator wrote.
‘STARK 7% DECREASE’ IN INVESTMENT FUNDS
FROM PAGE B1
“While the industry anticipated some restructuring, causing a shift away from funds to less costly holding companies, I think this is the first time certainly since I’ve been at the helm of the Commission that we are seeing a decrease in the number of securities firms.”
Ms Rolle said the Securities Commission is “currently in the process of developing new regulations to go along” with the recently-passed Securities Industry Act 2024. These should be issued for public consultation before year-end.
“The amendments to the Investment Funds Act 2019 are also ongoing,” she added. “We’re still debating internally, and that’s
probably mostly me debating internally, whether we are going to issue digital asset regulations or rules. And I know, you know, sometimes you think they want regulations, but in the industry we can always appreciate that regulations are very prescriptive an, when we issue them, both you and I are bound.
“And so we’re still contemplating whether we have enough things that we want to address in regulations or whether we may want to address some specific things, like exchange operations and other things, in rules. Maybe we want to address regulatory capital rules as opposed to trying to develop regulations to address a whole other sensitive area we may not be
yet ready to address in regulations.
Ms Rolle then revealed:
“We intend to roll out a monitoring programme for digital assets the first quarter of next year. So far we talked about 48 of our staff who have been trained. We probably have another 20 staff that would like to be trained in one turn. We’ve also conducted a gap review, a gap assessment with respect to our capacity both on the human resources as well as the technology side.
“And we intend to use that gap analysis to improve both sides of our capacity in terms of our examinations.
So far for the year we’ve conducted 35 exams. We expect to end the year with about 38 exams being
While rejecting the claim that the developer had failed to “make full and frank disclosure, he nevertheless agreed that Montana Holdings had launched - only to withdraw - three previous legal proceedings on the same subject.
“There must be some finality to litigation, and the plaintiff ought to have put its entire case correctly and completely before the court,” Justice Brathwaite said. “It is unfair to the defendant to face the prospect of litigation over and repeatedly, on four different occasions, only for the actions to be dismissed or withdrawn at the hand of the plaintiff for technical or procedural deficiencies.”
Agreeing that “it is vexatious to be the subject of proceedings carried on in this fashion”, the judge said it was appropriate to deem the latest action “an abuse of the process”. To launch new proceedings, he added that Montana Holdings must show it has “complied with all preliminary matters and that the claim is properly before the court”.
One source said of Matrix’s efforts to find a buyer for the 875-acre site on Rum Cay: “The market earlier was horrific. No one came forward; there were no buyers. We had people making offers and seeking acceptance, and then they would go to the Government with their plans. Outstanding property taxes are likely up there.
“But it’s still 800 acres in The Bahamas and there seems to be quite a bit more appetite from people in that market. It’s an enormous chunk of land and 70 people on the island. It’s a bare rock and there’s no infrastructure there. There are cows on the runway.”
“Following the failure of the development, one of the company’s creditors was able to secure a judgment against the company.” Justice Brathwaite, finding for Matrix’s argument, ruled that Montana Holdings’ failure to correctly initiate the latest proceedings and comply with the rules for serving parties outside The Bahamas “constitute fundamental irregularities incapable of curing”.
completed. We don’t usually carry on with exams in the month of December.”
Ms Rolle said the Securities Commission intends to have its strategic plan approved by the end of the year, and “a version of that plan” will be published publicly.
“One of the critical, critical recommendations in this paper will be the recommendation to the Government to implement mandatory pensions. We’re also currently developing a framework for ESG (environmental, social and governance) reporting as well as exploring DAO (digital asset offerings) and tokenisation models.
“And what we hope to put out is a draft framework for how a DAO could be registered, or tokens to be registered, or certain assets could be tokenised in the jurisdiction.”
DWAYNE KEMP
DPM urges: ‘Demystify’ high tax state assertion
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Deputy Prime Minister yesterday urged Bahamian accountants to “demystify” assertions that this country is now a hightax jurisdiction and help maintain its long-standing market position.
Speaking at the Bahamas Institute of Chartered Accountants’ (BICA) accountants week, Chester Cooper called on those that have moved into the tax space to analyse trends and perform comparative analysis to dispel the notion that this nation is now a high tax jurisdiction.
“As the major industry in The Bahamas, I hope that we are having more and more of you specialising in the tourism space. Today, it was heart-warming and
distressing to hear that many more of you are becoming tax experts in The Bahamas, and certainly, if you were to go back maybe 20 years in my days in offshore financial services, tax experts typically focused on the offshore market,” said Mr Cooper.
“We need your help in demystifying what people perceive as an increase across-the-board in taxes. I want you to do a deep dive, analyse the trends that you see, maybe do some comparatives with the rest of the Caribbean, and please help us to tell the story that The Bahamas, on the domestic level, is still a low tax jurisdiction. That is accurate, right? So please help us to tell the story.”
Mr Cooper, who spoke on the tourism sector and opportunities for accountants, also requested that the profession help the Ministry
INSURANCE RATED ‘MEDIUM TO LOW RISK’ ON FINANCIAL CRIME
By ANNELIA NIXON Tribune Business Reporter
THE Bahamian insurance industry is rated as a low-to-medium risk for money laundering and terror financing exploitation, the sector’s top regulator said yesterday.
Dana Munnings-Gray, the Insurance Commission’s superintendent, told the Bahamas Institute of Chartered Accountants (BICA) conference: “The Commission understands that a proper risk assessment is not just about predicting the future, but understanding the potential dangers for taking proactive steps to mitigate them.
“For this reason, the Insurance Commission of The Bahamas has intentionally engaged with the insurance industry to assess our anti-money laundering and terror financing risks and vulnerabilities. As a result, the Commission partnered with an antimoney laundering service provider, AML Analytics, to implement an online risk-based system for conducting anti-money laundering and counter terror finance risk assessments on its licensees.”
Mrs Munnings-Gray added: “What you will note is during May and June of this year, 41 insurance companies were assessed24 general companies and 17 long-term insurers. All of them were assessed and submitted their assessments on time. Then, in July to August, we had 65 insurance intermediaries that we reviewed and assessed, 19 of which were general and 46 of which were long-term intermediaries.
“They all were assessed and completed their assignments and assessments on time. When we looked at the residual risk with the insurance companies having been assessed, we were able to assess that the risk itself amongst insurance companies was medium-low. Amongst the insurance intermediaries, it was a medium risk.
“When we looked at general insurance as a whole, the score was a medium low. Long-term insurance as a whole, the score was medium risk. When we look at the general, the general view of our intermediaries and our insurance companies, the inheritance risk is a medium risk.”
of Tourism, Investments and Aviation investigate why Bahamians are reluctant to invest in hotels.
“We need accountants as financial advisors to demystify the difficulties involved in making money in tourism related entities. You can, perhaps, help us also to decode why all Bahamians are not getting involved in tourism, and why many Bahamians are not investing in hotels?” he inquired.
“You must help us to make it easier to comprehend that the greatest opportunities in the economy in The Bahamas are in the tourism space.” One accountant questioned if the Government is willing to promote Bahamian ownership by mandating new investors make shares in their project available for public purchase.
Noting that while many Bahamians may not have
access to the necessary capital financing to build their own resort, they added that many would be willing to purchase shares in new developments if there was a requirement to promote local ownership in the sector.
Mr Cooper, who is also minister of tourism, investments and aviation, said the Government is starting at the “ground level” by funnelling resources through the Tourism Development Cooperation to help businesses within the sector, inclusive of bonefish lodges and short-term rentals, to grow in the tourism space.
He added that work has also been done to renovate downtown Nassau, which will hopefully attract more local businesses to the area, and said the deal struck with Royal Caribbean for the construction of the Paradise Island Beach Club
aligns with this suggestion as it will be offering shares to the public.
However, he acknowledged “there could be more, I would be the first to concede this point”. Mr Cooper said while some investors have full financing for their projects, others are still seeking funding after obtaining land and preliminary approvals.
He said many accountants play a key role is drafting the agreements for investors to obtain financing, and encouraged the profession to look at approaching large financers
to back locally-funded projects.
“You are the experts at structuring deals, and you’ve been structuring them for other people…you can structure it for us,” said Mr Cooper.
“And it’s not beyond the realm of possibilities with the growing environment in The Bahamas, with your track record as professional and with your resume, that you can have an extremely impactful discussions with the Blackstones and the Blackrocks in the world who invest in these projects and for that funding as well.”
PM calls for $1trn fund to fight climate change
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
Mrs Munnings-Gray said the deficiencies exposed by the analysis included not identifying the ultimate beneficial owner; no screening for targeted financial sanctions; lack of employee screening; the lack of antimoney laundering training for staff and intermediaries; no anti-money laundering training of staff or intermediaries. She said delays which disrupt reporting represent another challenge.
“While audits are critical and crucial, the industry has shared challenges regarding audit processes that deserve attention. One recurring challenge is the timely submission of financial reporting, particularly audits,” Mrs MunningsGray said.
“While we appreciate the challenges associated with that word, IFRS 17 and the implementation standards, our licensees are reporting delays in receiving audit statements, often due to what they perceive as auditors prioritising engagements with larger clients, and that’s debatable, over smaller firms.
“Delays can disrupt reporting schedules, particularly for companies operating on tight regulatory deadlines. We understand that balancing workload across clients of different sizes is not always easy, but timeliness is essential for meeting regulatory expectations and fostering smooth industry operations,” the Insurance Commission chief added.
“Another key issue is the complexity of new standards, specifically IFRS 17, which has significantly changed how insurers report their financial results. Many insurers require additional support aligned with these requirements, and some companies have encountered challenges in adapting the standards within the designated timelines.
“As these reporting standards continue to evolve, the demand for expertise grows and we recognise that this evolution calls for even more skill and precision on your part. As you are aware, IFRS 17 has reshaped the financial reporting landscape to insurance contracts. The new standard demands increased details and complexity in financial statements, require substantial adjustments for insurers and auditors.”
THE Prime Minister yesterday called for greater global transparency as he added his voice to calls for the creation of a $1trn fund to combat climate change.
Philip Davis KC, speaking at the COP 29 conference, said The Bahamas is “advancing” its first Biennial Transparency Report on progress towards meetings its climate change goals with funding from the Capacity-Building Initiative for Transparency (CBIT).
The Enhanced Transparency Framework (ETF) framework allows countries to track and report on national climate change mitigation policies and adaptation actions, and gain support towards achieving the global temperature and adaptation goals, including their progress on achieving individual national determined contributions (NDCs).
“Transparency is not merely a reporting requirement. It’s the backbone of real, lasting climate action. For countries, transparency means acknowledging where we stand and what we need,” said Mr Davis.
“The Enhanced Transparency Framework (ETF) under the Paris Agreement is central to this accountability, requiring countries to submit their first Biennial Transparency Reports (BTRs) by the end of 2024, with biennial submissions thereafter. These reports serve as the primary means for each nation to demonstrate its progress, making the ETF a living record of our global climate commitments.
“The Bahamas is actively preparing for this new era of accountability. With funding from the Capacity-Building Initiative for Transparency (CBIT), we are advancing our fourth national communication and our first Biennial Transparency Report. For us, transparency is a pledge to secure our future.”
Mr Davis said companies also benefit from being transparent as it will enable them to adhere to their emission reduction targets.
“Businesses, too, benefit immensely from transparency. As corporations set ambitious goals to reduce emissions and commit to net-zero targets, they need access to reliable data,” he added.
“Transparency allows them to track their impact, align with international standards and invest in sustainable practices with confidence. In a world where consumers are increasingly calling for
corporate responsibility, transparency ensures that green commitments are more than just promises but real contributions to our planet’s future.”
Mr Davis also spoke at the high level roundtable on enabling climate finance yesterday, where he “doubled down” on calls for an “equitable and simplified mechanism” to provide small island developing states (SIDS) with climate financing.
“Today we double down on our call for an equitable and simplified mechanism to address the significant gaps in the financial flow to ensure climate resilience and sustainable development,” said Mr Davis. “In the Caribbean, the impact of climate change is more than a policy issue; it is an existential threat that strikes at the core of our economies, our livelihoods and our way of life.”
Mr Davis called for countries and international financial institutions to include national disaster and pandemic clauses in debt agreements, and for 70 percent of mobilised climate finance to be given to vulnerable countries for adaptation efforts.
“We call on all countries, international financial institutions and investors to include natural disaster and pandemic clauses in debt agreements, giving vulnerable nations the flexibility needed during crises,” said Mr Davis.
“Furthermore, we urge that at least 70 percent of all mobilised climate finance be directed toward adaptation efforts in the most vulnerable countries. This is not a request for charity; it is a matter of justice.
“We also ask that multilateral development banks establish specific climate finance windows to make funds more accessible for climate-vulnerable nations, emphasising grants over loans to avoid deepening
the debt burden we already carry.”
Mr Davis said this year’s COP could be memorialised as a “turning point” in the fight against climate change and called for a $1trn climate fund to be established.
“We are calling for a $1trn climate fund, not as an act of charity, but as an essential step to correct the imbalances of this crisis,” said Mr Davis.
“The countries most responsible for climate change must shoulder the greatest responsibility, demonstrating their commitment to a just and sustainable future for all. Let COP 29 be remembered not as a moment of hesitation, but as a turning point.
“This gathering can be a signal to future generations that we stood here today, choosing responsibility over rhetoric and justice over neglect. The world is watching, and history will remember how we respond.”
CHESTER COOPER
PHILIP DAVIS KC
Retailers face ‘sleepless nights’ over Amazon delivery response
However, the Mark A Turnquest Consulting chief said the sudden disruption caused by Amazon’s strategy was especially ill-timed for Bahamian retailers given that it has occurred just when they are finalising preparations for the ‘Black Friday’ to Christmas shopping period that for some generates 75-80 percent of their annual sales.
While it may be too late to adjust pricing and inventory levels, as much Christmas merchandise will have already arrived, Mr Turnquest said many retailers now face the prospect of having to pay extra overtime to staff as they assess how much of their offering may be affected by the world’s largest online retailer and its aggressive distribution strategy.
“What they have to do, and it’s amazing, surprising, but they have to do it,” he told Tribune Business. “They have to do their market research and look at what Amazon is selling in reference to their inventory,
and look at which products will be impacted negatively.
“It might be, say, be only two or three but, depending on what they are, that could take dollars off their profitability. If it’s 15, 20, 30, that’s a lot of product lines and then they’ll be very concerned. They will have to go back to the table.
“They weren’t expecting this. They will have sleepless nights between now and the end of the month. They have to bring a team together to go through their inventory to determine the impact. They were side punched by this.”
Concerns have also been voiced as to how due Customs duties and VAT will be levied on Amazon’s ‘free delivery’ shipments, and who will be responsible for paying them, as well as the possibility consumers may be hit with so-called ‘hidden fees’ and charges. The Bahamas’ consumer watchdog, the Consumer Protection Commission, is seeking details from DHL on how the initiative will work by today.
Mr Turnquest, meanwhile, said having to adjust to the competitive threat posed by Amazon was distracting retailers from their Christmas preparations.
“Black Friday to January, that’s when a lot of retailers make 75-80 percent of their profits,” he added.
“They are very disappointed that Amazon has done this knowing we have a small economy, knowing we can’t withstand that Amazon influence with the end consumer. They are very disappointed that Amazon is doing this.
“But this is business and there are no friends in business like that. They have to go back to the drawing board, and a lot of them have to put together a team of two to five staff inside their business using some overtime pay to determine what products will be impacted,” Mr Turnquest said.
“They have to go through their product line, then they have to go through Amazon’s product line to determine what items are included in this ‘free
delivery’ and have the most major impact on profitability.” However, he added that small Bahamian retailers are drawing some comfort from the fact the online giant is not offering ‘free delivery’ on every item.
“They are somewhat relieved that there are only selective products being sold with this free shipment,” Mr Turnquest said. “They do not know exactly the range. They have to do their own investigation. It’s not straight across the board, but they say it’s going to impact them one way or the other because if one product is not impacted then another will be. A majority of retailers in this country are concerned.
“It all boils down to customer loyalty, customer service and availability, access and response to complaints. It boils down to whatever the end-consumer wants to do.” Mr Turnquest said small Bahamian retailers had always known the competitive threat from e-commerce was there, but had been expecting it
BAHAMAS FACING NEW TERROR FINANCE THREATS
most recently in some of the other foreign FIUs.
“So we have to make sure that, yet again, with our technology, we are keeping up-to-date because, as most of you can appreciate, the information that we have in our system, there might be a lot of people trying to get their hands on that information.”
Ms Creary said the FIU Act 2023 enhanced the agency’s legal framework to address evolving financial crimes, including those involving crypto currencies and cyber security threats. Key changes included expanding the types of disclosable transactions, enhancing domestic cooperation with other regulatory and law enforcement agencies, and
NOTICE
RCGC Assets Inc. In Voluntary Liquidation
Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, RCGC Assets Inc. is in dissolution as of November 8, 2024.
International Liquidator Services Ltd. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.
L I Q U I D A T O R
NOTICE
LAES LTD.
(In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 11th day of November, 2024. Articles of Dissolution have been duly registered by the Registrar. The liquidator is (Amicorp Bahamas Management Limited, whose address is Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas).
Dated this 11th day of November 2024.
(AMICORP BAHAMAS MANAGEMENT LIMITED) LIQUIDATOR
NOTICE
LONG ROSE LTD.
(In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 27th day of September, 2024. Articles of Dissolution have been duly registered by the Registrar. The liquidator is (Amicorp Bahamas Management Limited, whose address is Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas).
Dated this 11th day of November 2024.
(AMICORP BAHAMAS MANAGEMENT LIMITED) LIQUIDATOR
increasing freeze order durations to 14 days.
She explained that the FIU always had the power to put a three or five-day hold on accounts under investigation, but now can extend that for up to 14 days to allow more time to undertake investigations.
“We’ve always had the power to freeze accounts. However, we had a threeday freeze and a five-day
freeze. The importance of our freeze orders is that it assists law enforcement if they need to get a permanent freeze order on any account, where there is some issue or that individual may be a relative or have proceeds of crime,” she said.
“Law enforcement always found that the timeframe that we can freeze an
NOTICE
INTERNATIONAL BUSINESS COMPANIES ACT, 2000 URIELLA COMPANY LIMITED (IN VOLUNTARY LIQUIDATION)
NOTICE IS HEREBY GIVEN that in accordance with section 138(4) of the International Business Companies Act, 2000, as amended, URIELLA COMPANY LIMITED is in dissolution.
The dissolution of the said Company commenced on November 11, 2024, when the Articles of Dissolution were submitted to and registered with the Registrar General in Nassau, The Bahamas.
The sole liquidator of the said Company is Kim D Thompson of Equity Trust House, Caves Village, West Bay Street, P O Box N 10697, Nassau, Bahamas.
Kim D Thompson Sole Liquidator
BROADLAND INVESTMENT CO. LTD.
Pursuant to the provision of Section 138(8) of the International Business Companies Act, 2000 (Chapter 309) NOTICE is hereby given that the above-named company has been dissolved and struck off the Register of Companies. A Certificate of Dissolution has been issued by the Registrar General. The date of completion of the Dissolution is 4th November 2024.
Brittany Investment Company Limited Liquidator
NOTICE
RODIEZMO RESERVE LTD.
(In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 25th day of October, 2024. Articles of Dissolution have been duly registered by the Registrar. The liquidator is (Amicorp Bahamas Management Limited, whose address is Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas).
Dated this 11th day of November 2024.
(AMICORP BAHAMAS MANAGEMENT LIMITED) LIQUIDATOR
would come from Bahamians seeking to replicate this model rather than Amazon itself.
“They were surprised Amazon is doing it directly,” he added. “A lot of organisations wanted to do similar things online but didn’t have the ability and scope and funding mechanism to make available a vast array of products at affordable prices with convenient and timely delivery.”
Mr Turnquest called on local shipping companies to better enable Bahamian merchants to compete with the likes of Amazon by improving their customer service. “Eighty-five percent of my customers and members say they get poor service from at least 55 percent of shipping companies,” he added.
“They’re not happy with their shipping companies, but they deal with them because they have no other choice and Peter is no better than Paul. They are going to speak to the shipping companies to up their game to be more customer
account was not sufficient for them in order to go to court and get a permanent freeze order. As a result, we have now amended the legislation, and we can now freeze an account up to a period of 14 days.”
The FIU also improved its e-filing portal, Case Connect, to streamline processes and better coordinate with financial institutions and law enforcement. The updates aim to align with global standards and ensure effective analysis and dissemination of financial intelligence.
Ms Creary said the agency can now issue compliance notices to financial institutions under the new legislation. A compliance notice is issued when financial institutions fail to produce information requested by the FIU in 14 business days. Institutions that fail to comply will incur an administrative penalty not exceeding $1,000 per day until they do.
“We now can issue a compliance notice to our financial institutions, so if a financial institution receives a production order and they fail within the 14 working day period to, of course, provide us with that information, we can now send you a compliance notice,” said Ms Creary.
“That compliance notice would outline the failure of the financial institution.
service oriented because they say they are not good on this.”
But, while Bahamian retailers harbour both short and long-term misgivings over Amazon’s initiative, Mr Turnquest said it was simply too late to adjust inventories and prices for the Christmas season with merchants not worried that they will be forced out of business over the next few months. “The engine has already rolled,” he added.
“My clients will have to go line by line to see what the gross margins are on their products. If gross margins are high, they have to put some serious emphasis on buying and reducing shipping costs. If it’s a loss leader product that attracts more business to their store they are not going to hurt their head.”
Mr Turnquest also urged Bahamian retailers to get creative by “bundling” products, and employing discounts and offers, such as reduced prices on necklaces and shoes if someone buys a dress.
And, of course, we’re going to give you some additional time in order to provide us with that information. If, however, you fail to provide us with the information within the timeframe noted in your compliance notice, you are now subjected to an administrative penalty.
“The director may order the financial institution to pay the Financial Intelligence Unit a penalty not exceeding $1,000 for every day from the date the financial institution was required to comply with the compliance notice to the date the financial institution rectifies the non-compliance.”
Ms Creary said since the practice was adopted she has issued three compliance notices, and the institutions responded to those notices and provided the information within hours.
“I’ve issued, very minimally, three compliance notices so far, and I would have issued those notices on the day, and a couple hours later, we were in receipt of the information,” she added.
“So I can say that right now, so far, we do think that this ability is going to assist us in ensuring that the information that is needed for us to continue our function will be gathered on a timely basis.”
NOTICE
Decourt Investimentos Ltd.
Incorporated under the International Business Companies Act, 2000 of the Commonwealth of The Bahamas. Registration Number 209489 B (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 12th day of November A.D. 2024.
Articles of Dissolution have been duly registered by the Registrar. The Liquidator is Mr. Luciano Decourt, whose address is RUA FERNANDES DE ABREU 90 17AND, Sao Paulo, 04543-070, Brazil. Any Persons having a Claim against the above-named Company are required on or before the 13th day of December A.D. 2024 to send their names, addresses and particulars of their debts or claims to the Liquidator of the Company, or in default thereof they may be excluded from the benefit of any distribution made before such claim is proved.
Dated this 12th day of June A.D. 2024. Luciano Decourt Liquidator
NOTICE
YG OCEAN INVESTMENT LIMITED (In Voluntary Liquidation)
Notice is hereby given that the above-named Company is in dissolution, commencing on the 8th day of November, 2024. Articles of Dissolution have been duly registered by the Registrar. The liquidator is (Amicorp Bahamas Management Limited, whose address is Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas).
Dated this 11th day of November 2024.
(AMICORP BAHAMAS MANAGEMENT LIMITED) LIQUIDATOR
Bitcoin neared $90,000 in a new record high. What to know about crypto’s post-election rally
By WYATTE GRANTHAM-PHILIPS
AP Business Writer
AS money continues to pour into crypto following Donald Trump's reelection last week, bitcoin has climbed to yet another record high.
The world's largest cryptocurrency topped $89,000 for the first time, briefly peaking at $89,995 early Tuesday, according to CoinDesk. Bitcoin's price oscillated throughout the day, but is still up more than 27% over the last week — standing at about $88,288 as of 5 p.m. ET.
That's part of a rally across cryptocurrencies and crypto-related investments since Trump won the U.S. presidential election. Analysts credit much of the recent gains to an anticipated "crypto-friendly" nature of the incoming administration, which could translate into more regulatory clarity but also leeway. Still, as with everything in the volatile cryptoverse, the future is hard to predict. And while some are bullish,
‘Pay
involving small, every day-type corruption such as paying public officials ‘lunch money’, continues to undermine integrity in governance, a fair competitive playing field and sustainable economic development.
“Again, when we get this kind of international attention, ORG typically takes it as yet another reminder of the opportunity to move forward on things that have been stalled, delayed or not seen as a priority,” Mr Aubry reiterated. “We’ve had a lot of discussion lately on the cost and ease of doing business. It’s already been noted that our bureaucracy and access to capital is challenging.
“Build in a component where there’s expectation of a ‘pay to play’ model is only going to further inhibit development of the local economy.” Mr Aubry said research by ORG post-Dorian had shown developing a strong, resilient local Bahamian economy was the best defence in adapting to climate change and preparing for hurricanes and other natural disasters, but this is directly undermined by the IDB study’s findings.
“Transparency International in 2018 said The Bahamas was the highest in the region for paying bribes before people were even asked,” the ORG chief recalled. “It was just accepted that this is what
This kind of currency is designed to work through an online network without a central authority — meaning it's typically not backed by any government or banking institution — and transactions get recorded with technology called a blockchain.
Bitcoin is the largest and oldest cryptocurrency, although other assets like Ethereum, Tether and Dogecoin have gained popularity over the years. Some investors see cryptocurrency as a "digital alternative" to traditional money — but it can be very volatile, and reliant on larger market conditions.
others continue to warn of investment risks.
Here's what you need to know.
Back up. What is cryptocurrency again?
Cryptocurrency has been around for a while now, but has come under the spotlight in recent years.
In basic terms, cryptocurrency is digital money.
you do. It becomes part of the cost of doing business, which it shouldn’t be.
“The main point is that money is not going to support businesses, it’s not going to support and improve government, it’s not going to be used for tax money and expenditures. It’s going into a space where it will be lost. This becomes another reason for us making this a priority, integrity in governance and the mechanisms we have in place to be fully resourced and active is absolutely key.
“The benefits that come out of it far outweigh the difficulties of making it happen.” Mr Aubry reiterated that this involves fully enacting and funding the Freedom of Information Act, plus ensuring the Public Procurement Act is fully defined and built-out, with bids issued in a timely manner and state-owned enterprises (SOEs) fully using the system.
He added that The Bahamas also needs to “push forward” with fully implementing the Ombudsman Act, which has already been passed by Parliament, and reforms to the Public Disclosure Act to ensure there is greater transparency.
“All these things are geared up,” Mr Aubry told Tribune Business. “In all honesty, The Bahamas has done a lot of this; the legislative foundation, and a lot of work is being done in government and the private
any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 6th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Why are bitcoin and other crypto assets soaring now?
A lot of the recent action has to do with the outcome of last week's election.
Trump was previously a crypto skeptic, but changed his mind and embraced cryptocurrencies during this year's presidential race. He has pledged to make the U.S. "the crypto capital of the planet" and
create a "strategic reserve" of bitcoin. His campaign accepted donations in cryptocurrency and he courted fans at a bitcoin conference in July. He also launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.
Crypto industry players welcomed Trump's victory, in hopes that he would be able to push through legislative and regulatory changes that they've long lobbied for. And Trump had previously promised that, if elected, he would remove the chair of the Securities and Exchange Commission, Gary Gensler, who has been leading the U.S. government's crackdown on the crypto industry and repeatedly called for more oversight.
"Crypto rallied as Election Day progressed into the night and as it became increasingly clear that Trump would emerge victorious," Citi analysts David Glass and Alex Saunders wrote in a Friday research note, pointing to larger industry sentiment around
Bahamian and local sources by undermining confidence.
The IDB report itself referred to this, stating:
sector to push forward and everything is above board.
“We’re not leveraging all of this together. This creates gaps and spaces which those looking to circumvent the system and go outside the law can exploit. By and large, as we talk to folks over the years, a lot of people want The Bahamas to be a place where you succeed based on your business plan, not your affiliation or association.”
While actual incidents of corruption, bribes and rent seeking are notoriously hard to prove, given that few victims are willing to go ‘on the record’ for fear of being victimised, Mr Aubry argued that even the “perception” of what is detailed in the IDB report could drive away blue chip, quality investment from both
“This type of rent-seeking behaviour is detrimental to the business environment. It directly increases the costs of doing business and generates policy distortions. Using early rounds of investment climate surveys, the World Bank estimated that 68.8 percent of firms in Latin America and the Caribbean reported paying bribes, with an average amount totalling 7 percent of sales.
“These types of payments are prevalent in two-thirds of Caribbean firms. The share of establishments required to make gifts or informal payments to public officials to ‘get things done’ varies by country. It can reach up to 78 percent of firms (Dominica and Grenada) but is less frequent in St Vincent and the Grenadines (42 percent) and Guyana (43 percent). Additionally, the
NOTICE
NOTICE is hereby given that MARCELINE RICHEMOND ARESTIL , P.O. Box AP-59247, Davis Street, Fox Hill, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Trump being "cryptofriendly" and a potential shift in regulatory backing. But even before the postelection rally, assets like bitcoin posted notable gains over the past year or so. Much of the credit goes to early success of a new way to invest in the asset: spot bitcoin ETFs, which were approved by U.S. regulators in January. Inflows into spot ETFs, or exchange-traded funds, "have been the dominant driver of Bitcoin returns from some time, and we expect this relationship to continue in the near-term," Glass and Saunders noted. They added that spot crypto ETFs saw some of their largest inflows on record in the days following the election.
In April, bitcoin also saw its fourth "halving" — a preprogrammed event that impacts production by cutting the reward for mining, or the creation of new bitcoin, in half. When that reward falls, so does the number of new bitcoins entering the market. And, if demand remains
reported amounts of informal payments average 3 percent of annual sales in the Caribbean.”
Elsewhere, the IDB report found that The Bahamas was among the most pessimistic Caribbean nations when it came to the COVID-19 pandemic with businesses in this nation having expected the restart of normal operations to take longer than all their regional counterparts.
“Firms that anticipated normal activities would resume expected that this would happen after 13 months, on average. That period varies by country, ranging from 10.6 months in Belize to 14.3 months in The Bahamas,” the study added. And this country’s expectation that the pandemic would last 28.07 months, or just over two years, was greater than the 25.09 month Caribbean average.
And, when it came to access to financing, the IDB study said The Bahamas and other Caribbean
strong, some analysts say this "supply shock" can also help propel the price long term.
What are the risks?
Crypto assets like bitcoin have a history of drastic swings in value — which can come suddenly and happen over the weekend or overnight in trading that continues at all hours, every day. In short, history shows you can lose money as quickly as you've made it. Long-term price behavior relies on larger market conditions.
At the start of the COVID-19 pandemic, bitcoin stood at just over $5,000. Its price climbed to nearly $69,000 by November 2021, in a time marked by high demand for technology assets, but later crashed during an aggressive series of Federal Reserve rate hikes aimed at curbing inflation. Then came the 2022 collapse of FTX, which significantly undermined confidence in crypto overall.
nations compare poorly to more developed nations when it comes to credit as a percentage of gross domestic product (GDP) or economic output. This nation’s ratio stood at just over 52 percent when compared to the triple digits more developed economies enjoy.
“The six Caribbean countries analysed here compare poorly with the average for both high income and middle income countries, which stood in 2022 at 162 percent and 132 percent, respectively,” the report added. The countries also fare poorly when compared to the Latin America and Caribbean average.
“Only Barbados has a deeper credit market than the regional average of 56 percent. Country size does not seem to be the determining factor, since the six countries are also all below the average for small states globally.”
NOTICE
NOTICE is hereby given that VERNA MAE MUSGROVE, of #54 sherwood drive, San Souci, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of November, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
REPUBLICAN presidential candidate former President Donald Trump speaks at the Bitcoin 2024 Conference Saturday, July 27, 2024, in Nashville, Tenn. Photo:Mark Humphrey/AP
Wall Street makes wagers on the likely winners and losers in a second Trump term
Associated Press
WALL Street is already making big bets on what take two for a White House led by Donald Trump will mean for the economy.
Since Election Day, investors have sent prices zooming for stocks of banks, fossil-fuel producers and other companies expected to benefit from Trump's preference for lower tax rates and lighter regulation. For retailers, meanwhile, the outlook is murkier because of uncertainty about whether they'll be able to absorb any of the higher costs created by tariffs.
Professional investors are warning about the risk of getting carried away by the momentum. While strong rhetoric on the campaign trail can cause these big swings, not all of the promises turn into actual policy. Plus, the broad U.S. stock market tends to move more on long-term growth in profits than anything else.
Stan Choe
—
Here's a look at where Wall Street is placing its bets at the moment:
Technology
Technology stocks soared in Trump's first term, helped by the administration's tax policies. But the relationship was tempestuous: Trump's immigration stance threatened a source of highskilled immigrants that comprises a significant part of the industry's work force and his trade wars threatened international sales and supply chains.
This time around, tech could benefit from an anticipated loosening of antitrust regulation that discouraged big deals from getting done and threatened to rein in the power of Google, Apple and Amazon. What's more, Trump is expected to clear the way for Big Tech to make more inroads in artificial intelligence technology — an area increasingly seen as a crucial battleground in the duel for global power between the U.S. and China.
Trump's vow to impose tariffs and other restrictions on trade does pose a potential downside for chip makers, particularly stock market darling Nvidia. A possible rollback of Biden administration efforts to boost U.S. semiconductor production also is a concern.
Still, in a sign of tech's more conciliatory attitude, Trump's election was greeted by congratulatory posts from most of the industry's luminaries, including Apple CEO Tim Cook, Amazon CEO Andy Jassy and Google CEO Sundar Pichai.
— Michael Liedtke Retail
Trump's victory brings a big dose of uncertainty for the retail industry.
Trump has proposed extending 2017 tax cuts for individuals and restoring tax breaks for businesses that were being reduced. He also wants to further cut the corporate tax rate. Those would be tailwinds
for shoppers and businesses, analysts said. But the president-elect's trade proposals could have a huge downside. He's proposed 60% tariffs on Chinese goods and tariffs of 10% to 20% on other imports. Neil Saunders, managing director of GlobalData, a research firm, said retailers would either take a big hit on profits or be forced to increase prices.
As opposed to Trump's first term, retailers will have a harder time absorbing tariffs this time because their costs of doing business are already higher, Saunders said.
Many companies, including Nike and eyewear retailer Warby Parker, have been diversifying their sourcing away from China.
Shoe brand Steve Madden says it plans to cut imports from China by as much as 45% next year.
The National Retail Federation is forecasting higher prices for U.S. shoppers if Trump's new tariffs are implemented. For example, an $80 pair of men's jeans would cost $90 to $96.
— Anne D'Innocenzio
Energy
Trump has said he wants to "drill, drill, drill" starting on Day 1 of his presidency, so it's expected that traditional fossil fuel-focused companies will get a boost and renewable energy outfits could be disadvantaged.
Oilfield services companies including Haliburton and Schlumberger would likely benefit from initiatives to expand drilling in the Gulf of Mexico and Alaska.
Natural gas companies including EQT and CNX Resources could benefit from facilities and pipeline projects. Meanwhile, clean energy companies, such as First Solar and many electric vehicle makers, could have a harder time growing if Trump cuts tax credits and other incentives for the industry.
But remember Trump's first term, says Austin Pickle, investment strategy analyst at Wells Fargo Investment Institute. The thought back then, like now, was that Trump would boost prices for oil-and-gas stocks. But energy stocks ended up struggling late in his term when the price of oil briefly went below zero during the COVID-19 pandemic.
— Damian Troise
Health Care
Drugmakers, insurers and other health care companies could benefit from fewer regulatory roadblocks to mergers and a lighter regulatory stance overall.
Insurers, in particular, may see some regulatory relief for Medicare Advantage plans, which are privately run versions of the government's Medicare program mainly for people ages 65 and older. Under Democratic leadership, some insurers were facing smaller bonus payments tied to their Medicare Advantage plans. Some drugmakers are facing revenue hits on certain drugs covered by Medicare.
Those challenges could abate under Republican rule, analysts at Morningstar noted.
A second Trump administration also may challenge health care companies.
The approval of drugs and vaccines could become less predictable, depending on the role anti-vaccine activist Robert F. Kennedy Jr. plays, said Morningstar analyst Karen Andersen.
Health insurers that sell coverage on the Affordable Care Act's insurance marketplaces or manage state-and-federally funded Medicaid coverage could face challenges if Republicans attempt to dismantle parts of the law, said Julie Utterback of Morningstar.
In particular, extra subsidies that help people buy marketplace coverage are slated to expire at the end of next year, which could lead to enrollment drops.
— Tom Murphy Autos
The auto industry is another that should welcome less restrictive regulations but dread tariffs. Trump is likely to roll back or scrap tailpipe emissions limits for 2027 through 2032 imposed by the Biden administration. Companies like General Motors, Ford and Stellantis could more easily sell larger, lessefficient vehicles without paying hefty fines.
Companies would also face less pressure to sell more electric vehicles to offset emissions from big trucks and SUVs, which make big profit margins, said Kevin Tynan, research director for The Presidio Group.
Tariffs are a different story. Trump has threatened tariffs on imported vehicles to force more production in
the U.S. The threat of 100% tariffs on vehicles imported from Mexico is a big concern.
Morningstar analyst David Whiston said such tariffs could potentially cost General Motors, Stellantis and Ford billions in profits. About 30% of GM's North American production comes from Mexico, while it's 24% for Stellantis and about 15% for Ford.
Whiston notes that tariffs on vehicles built in Mexico would violate the U.S.-Mexico-Canada free trade agreement negotiated during Trump's first term. But that can be reworked in July of 2026. Whiston said those tariffs would mean higher prices and many buyers already can't afford the current average price of over $47,000.
Trump also has threatened to get rid of electric vehicle tax credits that have helped boost sales of EVs.
— Tom Krisher
Banks Bank stocks could benefit if Trump's policies boost the U.S. economy and more customers apply for loans.
In addition, Wells Fargo banking analyst Mike Mayo believes the Trump victory can usher in a "new era" of lighter financial regulation after 15 years of stricter oversight following the financial crisis of 2008-2009. Under Biden, banks were facing requirements to set
aside more capital to reduce risk, but the Trump administration is likely to take a step back.
Dealmaking could see a revival under Trump, which would help banks with large investment banking operations like Morgan Stanley and Goldman Sachs. That also increases the odds the pending merger between Capital One Financial and Discover Financial gets federal clearance. Regional banks should benefit if a growing economy prompts the creation of new small businesses or the expansion of existing ones.
— Paul Harloff
Building materials and construction
Construction companies are looking at a mixed bag, with lighter regulations a plus but higher materials costs a potential minus.
Construction companies, including homebuilders KB Home and PulteGroup, could benefit from tax incentives and more friendly regulations. A surge in development could help relieve some pressure on a housing market pressured by a lack of supply for new homes. A boost in construction could also help suppliers of raw materials including steel and aggregates used in concrete. But the potential for overall raw material price increases is a threat. Higher costs could cut into profits
for construction companies and homebuilders. Steel tariffs could help shield U.S. producers from competition, but a jump in global prices as a result could negate that benefit, while also squeezing construction companies. Plans for an immigration crackdown could worsen an existing labor shortage and result in delays for projects.
— Damian Troise Crypto
Trump, once a crypto skeptic, has pledged to make the U.S. "the crypto capital of the planet" and create a "strategic reserve" of bitcoin. Money has poured into crypto assets since he won. Bitcoin, the largest cryptocurrency, has surged above $86,000. Shares of crypto platform Coinbase have surged more than 60% since the election.
Crypto industry players welcomed Trump's victory, in hopes that he would push through legislative and regulatory changes that they've long lobbied for. And Trump had promised that, if elected, he would remove the chair of the Securities and Exchange Commission, Gary Gensler, who has been leading the U.S. government's crackdown on the crypto industry and repeatedly called for more oversight.
— Wyatte Grantham-Phillips
CONSTRUCTION workers start their day as the sun rises on the new Republic Airlines headquarters building in Carmel, Ind., Aug. 27, 2024.
Photo:Michael Conroy/AP
Wall Street drifts lower as the Trump trade cools
By STAN CHOE AP Business Writer
U.S. stocks drifted lower Tuesday as momentum cooled for the torrid "Trump trade" that swept Wall Street following Donald Trump's presidential victory.
The S&P 500 slipped 0.3% a day after setting its latest all-time high. The Dow Jones Industrial Average dropped 382 points, or 0.9%, and the Nasdaq composite fell 0.1%.
Stocks had been broadly rising since last week on expectations that Trump's preference for lower tax rates and other policies may mean faster economic growth, as well as bigger U.S. government debt and higher inflation. Some areas of the market rocketed on particularly high-grade fuel, such as smaller U.S. stocks seen as benefiting the most from Trump's America First ideas.
They gave back some of their big gains Tuesday, and the Russell 2000 index of smaller companies fell a market-leading 1.8%.
Even Tesla, which is run by Trump's ally Elon Musk, sank. It dropped 6.1% for
its first loss since before Election Day. The stock that's become most entwined with Trump's popularity, Trump Media & Technology Group, fell 8.8%.
UnitedHealth Group was one of the heaviest weights on the S&P 500 and fell 1.7% after the U.S. Justice Department sued to block its $3.3 billion purchase of Amedisys, saying the deal would hinder access to home health and hospice
services. Amedisys sank 1.8%.
A jump in Treasury yields also added pressure on the stock market, as trading of U.S. government bonds resumed following Monday's Veterans Day holiday. The yield on the 10-year Treasury jumped to 4.42% from 4.31% late Friday, which is a notable move for the bond market.
Treasury yields have been climbing sharply since September, in large part
because the U.S. economy has remained much more resilient than feared. The hope is that it can continue to stay solid as the Federal Reserve continues to cut interest rates in order to keep the job market humming, now that it's helped get inflation nearly down to its 2% target. Some of the rise in yields has also been because of Trump. He talks up tariffs and other policies that economists say could drive
inflation and the U.S. government's debt higher. That puts upward pressure on Treasury yields and could hinder the Fed's plans to cut interest rates. While lower rates can boost the economy, they can also give inflation more fuel.
The next update on inflation will arrive Wednesday, when the U.S. government will give the latest reading on prices that U.S. consumers are paying across the country. Economists expect it to show inflation accelerated to 2.6% in October from 2.4% the month before. But they're also looking for underlying inflation trends, which ignore prices for groceries and fuel that can zigzag sharply from one month to another, to stay steady at 3.3%.
Helping to limit Wall Street's losses was Live Nation Entertainment, which joined the lengthening list of U.S. companies delivering stronger profit for the summer than analysts expected. The
Nov.
company behind Ticketmaster said concert fans around the world are spending more to hear artists, and it said trends are already encouraging for 2025 stadium tours for Coldplay and others. Its stock rose 4.7%.
Tyson Foods jumped 6.5% after likewise topping analysts' forecasts for profit. The producer of beef, chicken and pork also raised its dividend for investors.
Home Depot pulled back 1.3% despite beating analysts' profit expectations, as it continues to contend with a pullback in spending by customers.
All told, the S&P 500 slipped 17.36 points to 5,983.99. The Dow dropped 382.15 to 43,910.98, and the Nasdaq composite fell 17.36 to 19,281.40
Stocks usually rally following close elections, but this spurt is "clearly faster than prior ones," according to Parag Thatte and other strategists at Deutsche Bank.
