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▪ The Government of the Commonwealth of Dominica rating reaffirmed at CariBB

▪ The Government of the Republic of Trinidad and Tobago rating reaffirmed at CariAA+

▪ Eastern Caribbean Home Mortgage Bank’s rating reaffirmed at CariBBB+

▪ Sagicor Group Jamaica Limited’s initial rating assigned at CariA

▪ NIF Holding Company Limited’s TT$4 billion issue rating reaffirmed CariAA

▪ Goddard Enterprises Limited’s rating reaffirmed at CariAA-

▪ NCB Global Finance Limited’s initial rating assigned at CariA

▪ RHAND Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

▪ Development Bank of Jamaica Limited’s rating upgraded to CariA- ▪ Bourse Securities Limited rating reaffirmed at CariA- ▪ PLIPDECO’s rating reaffirmed at CariA+

▪ The Government of the British Virgin Islands’ rating reaffirmed at CariAA-

▪ Venture Credit Union Co-operativ Society Limited’s rating reaffirmed at CariBBB-

▪ Eastern Credit Union Co-operative Society Limited’s rating reaffirmed at CariBBB-

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REGIONAL

Trinidad and Tobago

Scotia drops by $2

Overall market activity resulted from trading in 19 securities of which four

advanced, nine declined and six traded firm.

CLF hit with $13b in new claims ...buyer chosen for Holiday Inn Express

CL Financial has been hit with three new claims totalling $13.2 billion in the

first six months of 2019, its joint liquidators assert, even as the group, which

collapsed in the first month of 2009, received $38 million in dividends and

loan repayments from its subsidiaries in that period.

T&T downgraded as gas prospects lowered

Last Week, on July 9, 2019, S& P Global Ratings lowered its long-term

foreign and local currency sovereign credit ratings on the Republic of

Trinidad and Tobago to 'BBB' from 'BBB+'. The outlook is stable. At the same

time, S& P Global Ratings affirmed its 'A-2' short-term foreign and local

currency sovereign credit ratings on the country. S& P Global Ratings also

revised down its transfer and convertibility assessment to 'BBB+' from 'A'.

GML declines 10 per cent

Last week, the first-tier market increased by 53.81 per cent on a total of

2,054,932 shares crossing the floor compared to 1,336,006 shares in the

previous week.

Jamaica

BCIC unveils plans and products

British Caribbean Insurance Company (BCIC) recently unveiled its

refurbished branch operations in downtown Kingston along with the

adjoining customer-centric first floor.

Customers get over $39 million for utility companies service breaches

The Office of Utilities Regulation (OUR) is reporting that utility customers

received over $39 million in 2019 between January and March from utility

providers for service breaches.

Jamaica continued

Jamaica earns US$2 billion in tourism revenue for January to June

Jamaica has welcomed approximately two million visitors for the first half

of 2019, earning US$2 billion in revenues.

GraceKennedy eyes larger Canadian market

Looking to secure a larger foothold in the ethnic market in western

Canada by year end, GraceKennedy has expanded retail space and

launched new products in that market.

Proven REIT to develop high-rise apartment complex in Mandeville

Proven REIT Limited is investing US$10 million or $1.3 billion in local currency

in a six-storey residential high-rise under phase two of its Bloomfield

development in Mandeville.

Coffee farmers to register by July 31 or lose business

The Jamaica Coffee Exporters Association, JCEA, says it is working with the

Jamaica Agricultural Commodities Regulatory Authority, JACRA, on a

registration drive for coffee farmers, an initiative that sector leaders say

could help clamp down on the theft of beans.

Another Spanish hotel chain coming to Jamaica

Princess Hotels & Resorts has achieved a long-held goal of buying land in

Jamaica and hopes to begin building its resort by next summer, says

Caribbean representative Rafael Millan.

Guyana

GNBS TO COMMENCE THE MONITORING OF GOLD JEWELLERY IN 2020

The Guyana National Bureau of Standards (GNBS) is set to commence

monitoring of the gold jewellery manufactured and offered for sale by

goldsmiths and jewelers. This monitoring will commence in January 2020,

and will be based on the requirements of the National Standard

Specification for Gold Articles (GYS 50:2010), which is a compulsory

standard.

Guyana to export 30,000 tonnes of rice to Cuba

ALIMPORT, the Cuban rice importing agency, has agreed to purchase

30,000 metric tonnes of rice from Guyana for the period July-September

2019, the Guyana Rice Development Board (GRDB) General Manager,

Nizam Hassan, said.

Antigua and Barbuda

PIMU announces new Barbuda project

The Project Implementation and Management Unit (PIMU) announced

during a recent press briefing that it will be embarking on a project to

repair buildings in Barbuda.

Antigua makes counter-offer for LIAT

Antigua and Barbuda government, says it is not aware that negotiations

with Barbados had broken down regarding the sale of the shares of the

cash-strapped regional airline, LIAT, owned by Bridgetown.

The Bahamas

Domestic Banks In 10% Cost Increase

Domestic banks and trust companies endured a near-ten percent

operating cost increase in 2018 amid continued expense and regulatory

pressures on the wider financial services industry.

INTERNATIONAL

United States

Citigroup profit beats estimates on gains in consumer lending

Citigroup Inc (C.N) beat analysts’ estimates for quarterly profit on

Monday, as a tight lid on costs and strength in consumer lending helped

the third-largest U.S. bank counter weakness in its trading business.

Stock futures slightly higher ahead of Citi results

U.S. stock futures extended last week’s gains to trade slightly higher on

Monday in the run up to the start of second-quarter earnings reports,

beginning with Citigroup.

United Kingdom

UK banks say business investment slowing further ahead of Brexit

Britain’s major banks have seen a growing number of business customers

delay decisions on investments and borrowing in recent weeks, as the

probability of a disorderly exit from the European Union inches higher.

United Kingdom continued

UK deals blow to insurers with change to discount rate

Britain will change the discount rate used to calculate compensation for

personal injuries to minus 0.25% from minus 0.75%, disappointing insurers

who were hoping for a higher rate to limit the money they must set aside

to cover payouts.

Bank of England can respond to Brexit impact on economy

Bank of England Governor Mark Carney said on Monday the British central

bank had the ability to respond to either slower growth or higher inflation

which could follow the country’s departure from the European Union.

Europe

Euro inches higher but expectations for dovish ECB cap gains

The euro remained within its recent trading range against the dollar on

Monday, its progress capped by expectations for a dovish European

Central Bank meeting next week and after investors turned more bearish

on the currency.

China

China approves airport project in Xinjiang region worth $111 million

China’s state planner on Monday approved a new airport project worth

760 million yuan ($110.55 million) in the western Xinjiang region.

China second-quarter GDP growth slows to 27-year low as trade war bites,

more stimulus seen

China’s economic growth slowed to 6.2% in the second quarter, its

weakest pace in at least 27 years, as demand at home and abroad

faltered in the face of mounting U.S. trade pressure.

Reassuring Chinese data nudges shares higher

Surprisingly upbeat economic soundings from China lifted the global

markets mood on Monday, pushing world shares toward an 18-month

high and steering the Aussie dollar and copper upwards.

India

India June business sentiment lowest since 2016

India’s slowing economic growth, water shortage and regulatory hurdles

have taken its business sentiment in June to the lowest level since 2016, a

survey by market research firm IHS Markit showed on Monday.

Global

Bitcoin drops more than 10% as scrutiny of cryptocurrencies grows

Bitcoin slumped more than 10% over the weekend to a two-week low as

fears of a crackdown of cryptocurrencies grew on mounting scrutiny of

Facebook’s planned Libra digital coin.

Oil prices edge higher on Chinese economic data

Oil prices rose slightly on Monday as Chinese industrial output and retail

data topped expectations but gains were capped by overall figures

showing the country’s slowest quarterly economic growth in decades.

BCIC unveils plans and products Sunday 14th July, 2019 – Jamaica Observer

British Caribbean Insurance Company (BCIC) recently unveiled its

refurbished branch operations in downtown Kingston along with the

adjoining customer-centric first floor.

BCIC Managing director Peter Levy said that the “refurbished branch,

while a model for how all our branches are soon to look and operate, was

just phase one of our modernisation plan.”

BCIC recently announced that it will completely refurbish its five-storey

Duke Street headquarters, which was originally designed by the

architectural firm Shearer & Morrison with “Moxy” Morrison as chief

architect.

Levy revealed in a press statement that the refurbishing will be done in

phases and now that phase one is completed, phase two will follow

shortly. The refurbishing will be done in phases so as not to inconvenience

the community or disrupt employee and commercial operations. He

added that the project will be led by the same team.

According to Levy, BCIC has been located downtown since its founding

and is enthusiastic about recent and anticipated investments, and

interests in the town.

In addition to the headquarters’ refurbishing, BCIC launched its new

marketing campaign 'For You', which focuses on the ease of doing

business with BCIC.

“We have spent the last eight-plus months talking to and listening to our

customers and now it's time to show them that we didn't just hear them,

but we have put their feedback into action; everything we are doing is

'For You!',” said Lori-Ann Glasgow, BCIC's general manager for Marketing.

“Every day we think about ways to make our customers' lives easier; our

management team is committed to problem-solving for real-life customer

issues and that's why we have simplified procedures such as in branch

kiosks allowing customers to file claims or buy policies at the click of a

button. We have implemented changes such as eliminating the need for

an estimate when filing a claim for comprehensive policyholders and are

pleased to announce the roll-out of new products such as Home Assist,

coming soon.”

The national campaign that kicked off last weekend hit the road to talk

with consumers and share giveaways to let them know “that the 'For You'

campaign is not just a campaign it's a reality for the company”.

BCIC is a leading general insurance company with a reputation spanning

57 years, operating in Jamaica and Barbados since 2017 and most

recently, Turks and Caicos in 2019.

<< Back to news headlines >>

Customers get over $39 million for utility companies service breaches Friday 12th July, 2019 – Jamaica Observer

The Office of Utilities Regulation (OUR) is reporting that utility customers

received over $39 million in 2019 between January and March from utility

providers for service breaches.

The OUR, in a statement a short while ago, pointed to its latest Quarterly

Performance Report for 2019 January – March, which revealed that

$39,409,921.36 was paid out to utility customers over the period because

of breaches of the Guaranteed Standards and as a result of intervention

by the OUR's Consumer Affairs Unit.

The OUR said, “JPS' compliance report on its Guaranteed Standards

performance indicated that 17,910 breaches were committed,

representing a 4 per cent increase compared to the preceding quarter.

The OUR said these breaches attracted compensatory payments of

approximately $37.31 million, which were made through automatic

compensation.

The company said the estimated bills accounted for approximately 93 per

cent of compensatory payments. This guaranteed standard restricts JPS

from sending more than two consecutive estimates without attracting a

penalty.

“The NWC's Guaranteed Standards compliance report indicates that 530

breaches were committed by the utility, a 12 per cent decrease,

compared with the preceding quarter. These breaches had a potential

pay-out of approximately $1.84 million. However, actual payments were

$1 million and were made via automatic credits.

“The Guaranteed Standards with the highest incidents of breaches for the

NWC were: Meter Repair/Replacement, which stipulates that meter

repairs or replacements are to be completed within 20 working days;

Access, which requires that new service connections are to be made

within 10 working days; Meter Reading, which restricts the NWC to sending

no more than two consecutive estimates, where it has access to its meter;

and Meter Installation, which stipulates that meters should be installed

within 30 working days upon request. These four standards represented

83% of potential payments,” the OUR added.

In addition to the payouts for Guaranteed Standards breaches, the OUR

said its Consumer Affairs Unit secured $1,099,921.36 for utility customers.

Of this amount, JPS, NWC, Columbus Communications (Flow) and the

small water provider, Can-Cara accounted for 86 per cent, 9 per cent, 4

per cent and 1 per cent, respectively.

<< Back to news headlines >>

Jamaica earns US$2 billion in tourism revenue for January to June Saturday 13th July, 2019 – Jamaica Observer

Jamaica has welcomed approximately two million visitors for the first half

of 2019, earning US$2 billion in revenues.

Last year, the country had record arrivals of 4.32 million visitors with

earnings of US$3.3 billion.

Minister without Portfolio in the Ministry of Economic Growth and Job

Creation, Senator Pearnel Charles Jr, highlighted the figures while opening

debate on the Tourism Workers Pension Act 2019 in the Senate yesterday.

The Bill seeks to establish a defined contribution pension scheme for

hospitality industry workers.

Charles Jr said tourism drives nine per cent of Jamaica's gross domestic

product (GDP) and contributes, in revenue terms, 20 per cent of GDP.

He noted, too, that sector earnings have grown from US$369 million in

2017 to US$431 million in 2018.

Senator Charles said the sector's continued growth and success are as a

result of the hard work and dedication of the tourism workers.

"It is the professionalism and high-excellence service of workers that have

contributed to Jamaica remaining top of mind and boasting an enviable

42 per cent repeat visitor rate," he said.

The Senator argued that an increase in visitors equates to greater

demand for more trained workers. "The data shows that as at January

2019 there were 120,500 workers in the sector, which represented nine per

of the labour force," he said.

He noted that employment in hotels and restaurants increased by four per

cent from January 2017 to January 2019.

"This was approximately an additional 5,000 jobs over the two-year

period," he said.

<< Back to news headlines >>

GraceKennedy eyes larger Canadian market Friday 12th July, 2019 – Jamaica Gleaner

Looking to secure a larger foothold in the ethnic market in western

Canada by year end, GraceKennedy has expanded retail space and

launched new products in that market.

But the food and financial services conglomerate has promised that more

is to come from its Canadian business, Grace Foods Canada Inc, GFC,

which had modest growth of 3.8 per cent in 2018. Canada is the fifth-

strongest performing country in year-on-year growth for the conglomerate

among eight geographic markets.

Sale of GFC products in supermarket chains across western Canada now

accounts for close to 65 per cent of overall revenue for the market,

something the Group CEO for GraceKennedy Group, Don Wehby,

believes is a direct response to increasing demand for Caribbean foods.

“The major western Canada chain stores have expanded their Caribbean

range offerings. This has opened the door for GFC to secure listings in

these chains,” he told the Financial Gleaner.

Consumers are now able to purchase Grace products at Federated

Coop, Loblaws, Sobeys, Walmart and Caribbean speciality supermarkets.

Canada contributes just over six per cent to GraceKennedy’s total yearly

group sales. For the financial year ending 2018, revenue for GFC climbed

by $226-million to $6.1 billion, or in Canadian dollar terms, by CDN$2.4

million to CDN$64.8 million. And of that $226 million growth in revenue, 25

per cent was derived from GFC further leveraging its category adviser

relationship with Walmart.

“In early 2016, Walmart selected Grace Foods Canada as the category

adviser for their Caribbean set. Through this three-year partnership, Grace

Foods Canada has grown the sales of Walmart’s Caribbean offering and,

in turn, the sales of the Grace products,” Wehby said.

Today, Grace Foods Canada claims the number one spot based on year-

over-year growth in the ethnic food category in Walmart. Wehby noted

that the conglomerate has also retained its position as the number one

jerk brand in Canada, based on sales data by brand and case volumes

purchased. Grace Coconut Water also showed double-digit growth in

volumes for 2018 and retained its number one product category position

based on volumes.

Grace Jerk Chicken Wings

Wehby hopes to secure a bigger share of the ethnic market by the end of

the year with the launch of the Grace Jerk Chicken Wings. The product,

which is available in three varieties – hot, mild and honey jerk – forms part

of the national expansion of the Grace brand in Canada.

The wings are expected to be on the shelves of Sobeys later this year.

“As proud sponsors of the Grace Jerk Festival in Toronto, Grace Foods

Canada continues to build the Grace brand as the authority on jerk, and

promote jerk to all Canadians,” the CEO added.

GraceKennedy’s venture into Canada began in 1981 at a time when

Caribbean families were migrating there in significant numbers. At the

time, the business was known as GraceKennedy (Ontario) Inc, but as

Caribbean families moved west in Canada, and Jamaica became a top

‘sun’ destination for Canadian tourists, GraceKennedy saw the

opportunity for GFC to expand westwards, and currently operates in British

Columbia, Alberta, Manitoba and Saskatchewan.

Grace Jerk is now available nationally and commands over 50 per cent

market share in Canada, Wehby added.

The conglomerate has set up a manufacturing facility in Denbigh,

Clarendon, to facilitate its diversification into value-added jerked

products for the international market. The facility became operational in

March.

<< Back to news headlines >>

Proven REIT to develop high-rise apartment complex in Mandeville Sunday 14th July, 2019 – Jamaica Gleaner

Proven REIT Limited is investing US$10 million or $1.3 billion in local currency

in a six-storey residential high-rise under phase two of its Bloomfield

development in Mandeville.

The company plans to break ground for construction in November, and

gave an 18-month timeline for the completion of the apartments. The

development will comprise 78 apartments – inclusive of 40 studios, with

the rest being a mix of two-bedroom apartments – ranging in price from

$14.5 million to $28 million.

“It is targeted at retired professionals looking to downsize; persons in the

diaspora seeking to invest in Jamaica, and general investors who see the

potential market for short-term rentals,” said Proven REIT CEO Aisha

Campbell.

She said focus groups have demonstrated strong demand for housing

that is modern and well secured and offers independence from relatives.

Marketing to these and other groups started recently, she said.

The plan for apartments derogates from the original concept back in 2016

to build a hotel in phase two of Bloomfield.

“That was the original concept, but not the concept now,” Campbell

said, adding that while Mandeville has few hotels the room count in the

Manchester capital was sufficient to serve the available market.

The Bloomfield complex covers nine acres of land. Phase one is the

preparation of four lots for sale to developers, one of which will become a

gas station. The other three are unsold. Phase two involves the

development of apartments, while the third will be the development of a

business process outsourcing complex, professional offices and retail

stores. Currently, Proven is in discussions with two BPO operators.

<< Back to news headlines >>

Coffee farmers to register by July 31 or lose business Wednesday 10th July, 2019 – Jamaica Gleaner

The Jamaica Coffee Exporters Association, JCEA, says it is working with the

Jamaica Agricultural Commodities Regulatory Authority, JACRA, on a

registration drive for coffee farmers, an initiative that sector leaders say

could help clamp down on the theft of beans.

The National Coffee Farmer Registration and Tracking System, FRATS, aims

to map all farms and farmers in the sector in both the Jamaica Blue

Mountain and non-Blue Mountain regions. Registration began this month.

JACRA has indicated that all coffee farmers must be registered by July31

in order to sell cherry coffee to processors as of August 1, which marks the

start of the new crop year for 2019-20.

JCEA president Norman Grant said Monday that 4,167 farmers and 4,578

coffee farms are now registered but appealed to the rest to become

registered before the deadline. The number of farms outnumbers the

number of farmers as some persons own more than one farm.

New forecast

“Originally, we estimated that there were approximately 7,000 coffee

farmers in Jamaica, but the registration has revealed that it is less, so we

are now projecting 5,000 as the new forecast,” said the JCEA president

regarding the FRATS target.

“We are projecting 5,000 farms and 5,000 farmers, but when the

registration is completed, we will actually get the final number. This again

confirms another importance of the registration process,” he said.

The cost of administering the programme, he added, was estimated at

$10 million.

Grant noted that traders who are already registered and licensed will be

restricted to buying from the farmers who are registered in JACRA’s

database.

The JCEA president, who is also CEO of Mavis Bank Coffee Factory, said

registration would assist with the curtailment of praedial larceny, or the

theft of agricultural produce, “which now costs the agricultural sector an

estimated $6 billion”, by limiting transactions to registered operators only.

“If members of the JCEA buy from unregistered farmers, then it constitutes

a breach of the licence to operate,” said Grant. “The system, in my view,

is a game changer, and Government can use this as a way to address the

issue of farmer registration nationally.”

Efforts at comment from JACRA’s acting head, Gusland McCook, about

the process under way, were unsuccessful.

Insurance programme

Grant said the JCEA was also working with JACRA to pilot an insurance

programme for coffee farmers and farms. He told the Financial Gleaner

that with the business being very high-risk, the association would be

approaching local insurance companies to act as brokers with the

backing of international re-insurance firms.

The database being developed, he added, would allow for better

planning and administration of support programmes for farmers, and

could lead to increased production and productivity, as well as expansion

of the Jamaica coffee industry.

The Ministry of Industry Commerce, Agriculture and Fisheries will be

distributing 13,413 bags of fertiliser, each weighing 25 pounds, to 755

Jamaica Blue Mountain farmers and 335 Jamaica High Mountain farmers

registered under the FRATS exercise, Grant said.

The registered farmer must provide the name of the dealer to which they

will sell cherry coffee. Fertilizer distribution, under the ministry’s fertilizer-

assistance programme, will be proportionally allocated based on the

declared tree count in the FRATS database, he said.

<< Back to news headlines >>

Another Spanish hotel chain coming to Jamaica Wednesday 10th July, 2019 – Jamaica Gleaner

Princess Hotels & Resorts has achieved a long-held goal of buying land in

Jamaica and hopes to begin building its resort by next summer, says

Caribbean representative Rafael Millan.

The Spanish hotel chain has holdings in its home market, the Canary

Islands, Mexico, and the Dominican Republic and is looking to expand to

Jamaica and Costa Rica, Millan said on Monday.

Princess’ Jamaican resort is earmarked for 186 acres at Green Island in

Hanover. The seller was a private owner who was identified only as a

Jamaican-Canadian.

“We are currently working on the master plan,” said Millan. “We are doing

2,000 rooms in two phases – one phase of 1,000 and another phase of

1,000.”

June 2020, he said, is the date being considered for groundbreaking.

Princess Hotels was founded in 1967. Millan said the number of rooms

being operated in the Caribbean amounts to 5,000.

He said the company’s total investment in the Jamaican resort would

range between US$150 million and US$500 million.

Jamaica “is extremely interesting for the type of products we manage. It is

a very solid brand, internationally well known. Historically, Jamaica is one

of the first international brands in the market. Jamaica is where all-

inclusive started in the ’70s after the oil crisis,” said the hotel rep.

“The brand has been there for many years. Everyone respects and likes it.

You say ‘Jamaica’ to everyone in the world, and normally, what you get

back is a smile,” Millan added.

<< Back to news headlines >>

Bitcoin drops more than 10% as scrutiny of cryptocurrencies grows Monday 15th July, 2019 – Reuters

Bitcoin slumped more than 10% over the weekend to a two-week low as

fears of a crackdown of cryptocurrencies grew on mounting scrutiny of

Facebook’s planned Libra digital coin.

Bitcoin fell 11.1% from Friday to $9,855 early on Monday, its lowest since

July 2. The original cryptocurrency slumped 10.4% on Sunday alone, its

second-biggest daily drop this year. It was last up 1.3% at $10,319.

Politicians and financial regulators across the world have called for close

scrutiny of Facebook’s Libra coin, with concerns ranging from consumer

protection and privacy to its potential systemic risks given the social

media giant’s global reach.

In a sign of widening U.S. attention, a proposal to prevent big technology

companies from functioning as financial institutions or issuing digital

currencies has been circulated for discussion by Democratic lawmakers,

according to a copy of the draft legislation seen by Reuters.

U.S. President Donald Trump had last week criticized bitcoin, Libra and

other cryptocurrencies, demanding that firms seek a banking charter and

subject themselves to U.S. and global regulations if they wanted to

“become a bank”.

Bitcoin, which initially shrugged off Trump’s Tweet, fell sharply after U.S.

Federal Reserve Chairman Jerome Powell called for a halt to Facebook’s

project until concerns from privacy to money-laundering were addressed.

“Together they have increased the tail risk that the U.S. will look to crack

down on it in some way,” said Jamie Farquhar, portfolio manager at

crypto firm NKB Group in London.

Underscoring the growing attention on Facebook’s plans, Japanese

authorities have also set up a working group to look at Libra’s possible

impact on monetary policy and financial regulation, government sources

told Reuters.

European Central Bank policymaker Benoit Coeure is due to deliver a

preliminary report on the matter at a meeting of G7 finance ministers this

week in Chantilly, north of Paris.

Bitcoin climbed nearly 55% in nine days after Facebook unveiled its plans

for Libra on June 18, touching an 18-month high of nearly $14,000. The

project has boosted hopes among some investors that cryptocurrencies

could gain wider acceptance.

<< Back to news headlines >>

Oil prices edge higher on Chinese economic data Monday 15th July, 2019 – Reuters

Oil prices rose slightly on Monday as Chinese industrial output and retail

data topped expectations but gains were capped by overall figures

showing the country’s slowest quarterly economic growth in decades.

The positive Chinese data may indicate early success in the government’s

stimulus efforts and potentially more oil demand in the world’s second

biggest economy.

Brent crude futures LCOc1 rose 29 cents, or 0.43%, to $67.01 a barrel by

1125 GMT, while U.S. crude CLc1 was up 23 cents, or 0.38%, at $60.44 a

barrel.

Both contracts last week made their biggest weekly gains in three weeks

on cuts in U.S. oil production and diplomatic tensions in the Middle East.

Analysts at ANZ bank said China’s crude oil imports year-to-date still

looked impressive, even as imports fell in June for a second straight

month.

China’s crude oil throughput rose to a record of 13.07 million barrels per

day in June, up 7.7% from a year earlier, following the start-up of two new,

large refineries, official data showed on Monday.

Still, economic growth of just 6.2% in the second quarter of 2019 — the

worst in 27 years — highlighted the impact of trade tensions with

Washington and raised the possibility that more incentives might be

needed to jump start the economy.

Despite a truce agreed between the Chinese and U.S. presidents last

month, the trade war remains unresolved.

The Paris-based International Energy Agency’s monthly report on Friday

said that abundant output and sluggish growth would leave oil markets

increasingly over-supplied going into 2020.

“The basic message is that the second half of this year will see some

depletion in global oil inventories but this will be followed by a dismal 2020,

especially the first six months of next year,” PVM analyst Tamas Varga said.

Refineries in the path of Tropical Storm Barry continued to operate,

although the storm has slashed U.S. Gulf of Mexico crude output by 73%,

or 1.38 million barrels per day.

In the Middle East, Iranian President Hassan Rouhani said in a televised

speech on Sunday that Iran was ready to hold talks with the United States

if Washington lifts sanctions and returns to the 2015 nuclear deal it quit last

year.

British Foreign Secretary Jeremy Hunt on Monday said there remained a

“small window” of time to save the Iran nuclear deal as Tehran signaled it

would ramp up its nuclear program.

<< Back to news headlines >>

Citigroup profit beats estimates on gains in consumer lending Monday 15th July, 2019 – Reuters

Citigroup Inc (C.N) beat analysts’ estimates for quarterly profit on

Monday, as a tight lid on costs and strength in consumer lending helped

the third-largest U.S. bank counter weakness in its trading business.

New York-based Citi is the first major bank to report second-quarter

earnings. Wall Street titans JPMorgan Chase & Co (JPM.N), Bank of

America Corp (BAC.N) and Goldman Sachs Group Inc (GS.N) are

scheduled to report later in the week.

Citi continued to add loans and deposits in the most recent quarter,

allaying concerns that a weaker economic outlook was hurting

consumers’ ability to borrow.

Total loans at the third-largest U.S. bank by assets rose 3% to $689 billion,

while deposits increased 5% to $1.05 trillion, excluding foreign exchange

fluctuations.

Trading revenue remained challenged. Fixed-income trading fell 4%,

excluding a gain from Citi’s investment in Tradeweb, while it declined 9%

at its equities business. Executives at leading U.S. banks had warned that

trading revenue would be hit by a slump in client activity due to

burgeoning trade tensions and uncertainties around Britain’s planned exit

from the European Union.

“We navigated an uncertain environment successfully by executing our

strategy, and by showing disciplined expense, credit and risk

management,” Chief Executive Officer Michael Corbat said in a

statement.

Net income rose to $4.80 billion, or $1.95 per share, in the second quarter,

from $4.50 billion, or $1.63 per share, a year earlier. The quarter included a

one-time gain of 12 cents per share related to the investment in electronic

trading company TradeWeb (TW.O).

Revenue rose 2% to $18.76 billion, while expenses fell 2%.

Analysts had expected a profit of $1.80 per share and revenue of $18.50

billion, according to IBES data from Refinitiv.

<< Back to news headlines >>

Stock futures slightly higher ahead of Citi results Monday 15th July, 2019 – Reuters

U.S. stock futures extended last week’s gains to trade slightly higher on

Monday in the run up to the start of second-quarter earnings reports,

beginning with Citigroup.

Shares of the U.S. lender were up 0.7% in premarket trade. It will report

results at around 8 a.m. ET and will be followed by other Wall Street big

banks such as JPMorgan (JPM.N), Goldman Sachs (GS.N) and Wells Fargo

(WFC.N) on Tuesday.

As companies start reporting quarterly results, investors will look for the

impact of the long-drawn U.S.-China trade dispute on corporate profit.

Other companies slated for this week include Bank of America Corp

(BAC.N), Netflix Inc (NFLX.O), Microsoft Corp (MSFT.O) and Honeywell

International Inc (HON.N).

Profits from S&P 500 companies is expected to dip 0.4% year-over-year,

the first quarterly decline in three years, according to Refinitiv IBES data.

Last week, gains in stocks were powered by comments from Federal

Reserve Chairman Jerome Powell that reassured investors that an interest

rate cut was highly likely at the central bank’s policy meeting later this

month.

The S&P 500 .SPX closed above 3,000 points for the first time on Friday as

investors rebuilt their bets of a sharp 50 basis-point rate cut in the July 30-

31 meeting.

Also helping the mood was upbeat data out of China. Quarterly growth

at the world’s second largest economy beat analysts’ forecasts, while

June reports on industrial production, retail sales and urban investment

were also well above expectations.

At 6:53 a.m. ET, Dow e-minis 1YMcv1 were up 39 points, or 0.14%. S&P 500

e-minis EScv1 were up 4.25 points, or 0.14% and Nasdaq 100 e-minis

NQcv1 were up 8 points, or 0.1%.

Among stocks, Boeing Co (BA.N) fell 1.4% after a report that its 737 Max jet

may stay grounded until early 2020 as the company seeks to fix its

hazardous flight-control software.

General Electric Co (GE.N) slipped marginally after brokerage UBS

downgraded shares of the industrial conglomerate to “neutral” from

“buy”, according to traders.

Shares of paper packaging companies Westrock Co (WRK.N), Packaging

Corp of America (PKG.N) and International Paper Co (IP.N) fell between

3.3% and 2.4% and were the top losers on the benchmark index before

the bell.

KeyBanc downgraded their shares, citing risks from a further fall in

containerboard and pulp prices.

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China approves airport project in Xinjiang region worth $111 million Monday 15th July, 2019 – Reuters

China’s state planner on Monday approved a new airport project worth

760 million yuan ($110.55 million) in the western Xinjiang region.

The approval was announced by the National Development and Reform

Commission on its website.

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China second-quarter GDP growth slows to 27-year low as trade war bites,

more stimulus seen Monday 15th July, 2019 – Reuters

China’s economic growth slowed to 6.2% in the second quarter, its

weakest pace in at least 27 years, as demand at home and abroad

faltered in the face of mounting U.S. trade pressure.

While more upbeat June factory output and retail sales offered signs of

improvement, some analysts cautioned the gains may not be sustainable,

and expect Beijing will continue to roll out more support measures in

coming months.

China’s trading partners and financial markets are closely watching the

health of the world’s second-largest economy as the Sino-U.S. trade war

gets longer and costlier, fuelling worries of a global recession.

Monday’s growth data marked a loss of momentum for the economy

from the first quarter’s 6.4%, adding to expectations that Beijing needs to

do more to boost consumption and investment and restore business

confidence.

The April-June pace, in line with analysts’ expectations, was the slowest

since the first quarter of 1992, the earliest quarterly data on record.

“China’s growth could slow to 6% to 6.1% in the second half,” said Nie

Wen, an economist at Hwabao Trust. That would test the lower end of

Beijing’s 2019 target range of 6-6.5%.

Cutting banks’ reserve requirement ratios (RRR) “is still very likely as the

authorities want to support the real economy in the long run,” he said,

predicting the economy would continue to slow before stabilizing around

mid-2020.

China has already slashed RRR six times since early 2018 to free up more

funds for lending, and analysts polled by Reuters forecast two more cuts

by the end of this year. [ECILT/CN]

Beijing has leaned largely on fiscal stimulus to underpin growth this year,

announcing massive tax cuts worth nearly 2 trillion yuan ($291 billion) and

a quota of 2.15 trillion yuan for special bond issuance by local

governments aimed at boosting infrastructure construction.

The economy has been slow to respond, however, and business sentiment

remains cautious.

Trade pressures have intensified since Washington sharply raised tariffs on

Chinese goods in May. While the two sides have since agreed to resume

trade talks and hold off on further punitive action, they remain at odds

over significant issues needed for an agreement.

U.S. President Donald Trump in a tweet linked China’s slowing growth to

the U.S. tariffs.

“The United States Tariffs are having a major effect on companies wanting

to leave China for non-tariffed countries,” Trump wrote. “These Tariffs are

paid for by China devaluing & pumping, not by the U.S. taxpayer!”

Despite the trade dispute, Chinese net exports accounted for a striking

20.7% of the first-half GDP growth, as exporters had rushed to sell ahead of

higher U.S. tariffs and imports had weakened more sharply amid sagging

domestic demand.

For June, both exports and imports fell, and an official survey showed

factories were shedding jobs at the fastest pace since the global crisis a

decade ago.

“Due to the global slowdown and impact from the trade war, our exports

will continue to fall and it’s possible they may post zero growth for the

year,” said Zhu Baoliang, chief economist at the State Information Centre,

a top government think-tank.

The contribution from net exports will decline as domestic demand

gradually recovers, Zhu told the official Financial News ahead of the Q2

data, adding that he expects economic growth to slow to 5.8% next year.

MORE SUPPORT ON THE WAY

A string of downbeat data in recent months and the sudden escalation in

the trade row had sparked questions over whether more forceful easing

may be needed to get the economy back on steadier footing, including

some form of interest rate cuts.

China has “tremendous” room to adjust policies if the trade war worsens,

the central bank governor was quoted as saying in June.

Premier Li Keqiang said this month that China will make timely use of cuts

in banks’ reserve ratios and other financing tools to support smaller firms,

while repeating a vow not to use “flood-like” stimulus.

Analysts believe room for more aggressive monetary policy easing is being

limited by fears of adding to high debt levels and structural risks.

Moreover, June industrial production, retail sales and fixed-asset

investment data all beat analysts’ forecasts, suggesting that Beijing’s

earlier growth-boosting efforts may be starting to have an effect.

Industrial output climbed 6.3% from a year earlier, data from the National

Bureau of Statistics showed, picking up from May’s 17-year low and

handily beating an expected 5.2%.

Daily output for crude steel and aluminum both rose to record levels.

Retail sales jumped 9.8% - the fastest since March 2018 - and confounding

expectations for a slight pullback to 8.3%. Gains were led by a 17.2% surge

in car sales.

Mao Shengyong, a spokesman at the National Bureau of Statistics, told a

briefing that he expected the benefits of policy measures will be more

obvious in the second half.

Some analysts, however, questioned the apparent recovery in both

output and sales.

Capital Economics said its in-house model suggested slower industrial

growth last month, while the jump in car sales may have been partly due

to a one-off factor.

Car dealers in China are offering big discounts to customers to reduce

high inventories that have built up due to changing emission standards.

Motor vehicle production actually fell 15.2%, the 11th monthly decline in a

row, suggesting automakers don’t expect a sustained bounce in demand

any time soon.

INVESTMENT ALSO SLOWLY PICKING UP

Fixed-asset investment for the first half of the year rose 5.8% from a year

earlier, compared with a 5.5% forecast and 5.6% in the first five months.

Infrastructure expanded 4.1%, with railways continuing to grow in the

double digits.

Real estate investment, a major growth driver, also quickened in June,

rising 10.1% on-year, Reuters calculated. But new home sales shrank for a

second month.

“The monthly data were better than expected... (But) we are skeptical of

this apparent recovery given broader evidence of weakness in factory

activity,” said Julian Evans-Pritchard, senior China economist at Capital

Economics.

“Looking ahead, we doubt that the data for June will mark the start of a

turnaround.”

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Reassuring Chinese data nudges shares higher Monday 15th July, 2019 – Reuters

Surprisingly upbeat economic soundings from China lifted the global

markets mood on Monday, pushing world shares toward an 18-month

high and steering the Aussie dollar and copper upwards.

Investors were waiting for a torrent of second-quarter corporate earnings

this week and a G7 finance chiefs meeting in France, but there was plenty

to be getting on with before that.

China’s second quarter annual GDP growth rate fell to a 27-year low of

6.2% as expected, but its quarterly growth reading of 1.6% was ahead of

forecasts and June reports on industrial production, retail sales and urban

investment were also well above expectations.

Shanghai and Hong Kong stock markets had ended marginally positive,

only held back by the concern that such a brisk pickup in activity may see

economic policymakers ease back on the monetary and fiscal stimulus

measures that were deemed largely responsible for the acceleration.

A report by Reuters that Washington may approve licenses for companies

to restart new sales to Huawei in as little as two weeks also improved the

mood in China’s tech sector, while a steady start in Europe left MSCI’s

world index eyeing Feb. 2018 highs.

“It is no surprise that China is slowing down and if you look at the other

components of the data like retail sales and industrial production, they

are looking a little bit better than expected,” said CMC Markets analyst

David Madden.

“Traders seem to be content to maintain a bit of optimism.”

With the S&P 500 closing in record territory again on Wall Street on Friday

and above 3,000 for the first time, markets are confident the U.S. Federal

Reserve will cut its key interest rate by at least a quarter point late this

month.

In currency markets, the Australian dollar, often played as a liquid proxy

for the Chinese yuan, sprang to its highest since July 4 against the dollar as

it ticked higher against the yen and the Swiss franc.

At 12.39%, the Vix volatility gauge had its lowest close since April. Ten-year

Treasury yields continued to nudge higher, with the yield curve between 3

months and 10 years – whose inversion for much of the past two months

was widely seen as a harbinger of recession over the next couple of years

– back probing positive territory for the first since mid-May.

Most euro zone government bond yields edged down from recent 3 1/2-

week highs in early moves, although the reassuring signs from the global

economy meant the moves were small in scale.

Germany’s benchmark 10-year bond yield was down just a basis point at

minus 0.25%, edging off Friday’s 3 1/2-week high but still about 16 basis

points above record lows reached earlier this month.

“The whole movement in bonds lost steam last week,” said Norbert Wuthe,

a rates strategist at Bayerische Landesbank.

RELIEF

Commodities markets struggled to make up their minds about how to

interpret the Chinese data.

Brent crude was off 10 cents at $66.62. U.S. crude fell 21 cents to $60 a

barrel, although that also came after both contracts had posted their

biggest weekly gains in three weeks on diplomatic tensions in the Middle

East and cuts in U.S. oil production.

Gold slipped to 1,414.25 an ounce, drifting away from a recent six-year

top of $1,438.60, but most industrial metals climbed on the data and

nickel prices were boosted by additional supply worries from major

producer Indonesia.

“This (China data) is a big relief. It seems that the government’s support

has eventually had some positive impact on the economy, especially in

the seasonally weak month of June,” said analyst Helen Lau of Argonaut

Securities.

Later in the week, U.S. retail sales and industrial production data will

provide clues about the health of the world’s largest economy. The U.S.

Federal Reserve will release its ‘Beige Book’ on Wednesday, which

investors will scour for comments on how trade tensions were affecting the

business outlook.

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India June business sentiment lowest since 2016 Monday 15th July, 2019 – Reuters

India’s slowing economic growth, water shortage and regulatory hurdles

have taken its business sentiment in June to the lowest level since 2016, a

survey by market research firm IHS Markit showed on Monday.

The aggregate of private-sector companies forecasting output growth

during this year fell to +15% in June from +18% in February. The level was

earlier hit three years ago - its lowest since data became available in

2009, according to the report here

Hopes of pro-business government policies and a better financial flow

continue to underpin optimism toward output and profitability growth in

the year ahead, said Principal Economist Pollyanna De Lima said.

“As such, firms plan to expand capacities by taking on additional workers,

though sentiment for all measures of expenditure are anaemic.”

Capital investment confidence in India is among the weakest of all

countries for which comparable data are available, ahead of only China

and the UK, while optimism regarding research and development is below

the average for emerging markets, she said.

India expects its economy to grow 7% this year, after growth slowed to a

five year-low of 6.8% in the last fiscal year, as New Delhi cautioned of

challenges in keeping fiscal deficit in check earlier this month.

The country is also staring at a deficit monsoon this year, raising concerns

over the output of summer-sown crops in a nation where 55% of arable

land is rain-fed.

The survey also found companies were concerned about potential

depreciation in the rupee pushing prices for imported materials higher, a

lack of skilled labor, likely tax hikes, financial difficulties and customers

increasingly demanding discounts.

The IHS Markit reports are produced on a triannual basis, with data

collected in February, June and October.

A similar survey report last month by Thomson Reuters/INSEAD showed

confidence among broader Asian companies was also at a 10-year low

and showed little signs of easing.

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UK banks say business investment slowing further ahead of Brexit Monday 15th July, 2019 – Reuters

Britain’s major banks have seen a growing number of business customers

delay decisions on investments and borrowing in recent weeks, as the

probability of a disorderly exit from the European Union inches higher.

Britain’s banks have largely played up the resilience of businesses since

the June 2016 referendum decision to leave the EU, but senior executives

speaking to Reuters say that in recent weeks they have seen a dip in firms’

activity levels.

The country’s largest lenders - Royal Bank of Scotland (RBS) (RBS.L), Lloyds

(LLOY.L), Barclays (BARC.L), HSBC (HSBA.L), and the UK arm of Spain’s

Santander (SAN.MC) - are all set to publish half-year results in the coming

weeks, with investors watching for any signs of strain.

Bankers responsible for tens of billions of pounds in business debt told

Reuters that activity among corporate customers had fallen in recent

months, as the two candidates to be Britain’s next prime minister have

both said they are ready to take the country out of the EU without a

withdrawal deal.

“The world has changed a bit,” one bank executive who asked not to be

named told Reuters. “There is a slowdown across the commercial piece. It

started off with people holding off investment, now they’re just not

transacting.”

An executive at a second bank said more big corporates were delaying

investment decisions, with the conversion rate of the bank’s potential new

commercial business pipeline falling from 70% to 50% in recent months,

although lending to smaller firms was holding up.

The executives said they were preparing for a potentially disorderly Brexit,

including refining ‘early warning’ systems to identify struggling clients and

spot possible weak links in their supply chains.

Frontrunner to be the next prime minister, Boris Johnson, has committed to

Britain leaving the EU by the Oct. 31 deadline with or without a deal,

concerning firms that want to see an orderly departure to avoid disruption

to cross-border trade.

RBS, HSBC and Barclays have all previously taken multi-million pound

provisions against potential future loan losses if the economy dips. The

Bank of England has said lenders are resilient enough to cope with a no-

deal Brexit.

Banks are also braced for an expected spike in costs for meeting claims

for mis-sold insurance known as PPI, which has already cost more than 35

billion pounds ,ahead of an August deadline for claims.

Britain’s economy grew more than expected in May, according to official

statistics published last week, but economists warned the outlook

remained weak.

Small businesses in Britain are planning the least investment in two years, a

survey by the Federation of Small Businesses found this month.

GETTING ON WITH IT

One bank executive said communication efforts with business customers

about potential Brexit disruption had been stepped back up after a lull

following the extension of the original departure date from March 29.

This lender was trying to offer clients products to help, such as extending

supplier financing and currency hedging, but said take up had been slow.

Britain’s state-backed RBS has committed 5 billion pounds of its 6 billion

pound small business growth fund - partly designed to help businesses out

with Brexit – although only a small proportion of this has been drawn

down, a source familiar with the situation said.

RBS has contacted 15,000 businesses to assess their potential exposures,

mapping risks across supply chains from big retailers like Sainsbury’s

(SBRY.L) and Tesco (TSCO.L) through to farmers and putting in extra credit

lines where necessary.

The political impasse is frustrating lenders, who believe the Bank of

England and Treasury are likely to step in to boost the economy if Britain

does leave without a deal.

“I think there will be a raft of government and central bank measures to

support the economy (in a no deal scenario) because they’ll be

needed,” said Ian Smith, chief financial officer at mid-sized lender CYBG

(CYBGC.L).

Jeremy Hunt, Johnson’s rival to be prime minister, has pledged a 6 billion

pound no-deal Brexit fund to help farmers and the fishing industry cope

with any fallout.

Although businesses are delaying big spending decisions, this is creating

pent-up demand, the executive at the second lender said.

“If I’m in my optimistic frame of mind, and my glass half full, you could get

a very positive Brexit bounce, because people know all the things that

they want to do, but they’re just not pressing the buttons.”

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UK deals blow to insurers with change to discount rate Monday 15th July, 2019 – Reuters

Britain will change the discount rate used to calculate compensation for

personal injuries to minus 0.25% from minus 0.75%, disappointing insurers

who were hoping for a higher rate to limit the money they must set aside

to cover payouts.

The decision by the ministry of justice follows a review in response to

lobbying from motor insurers, whose profits were hit by the move to cut

the so-called ‘Ogden Rate’ from 2.5% in 2017.

UBS analysts said insurers had been expecting a rate of around 0.5% and

had moved to setting their reserves based on a rate of 0%.

The lower rate chosen by the ministry means insurers will have to set aside

more money than expected for lump sum payments for people seriously

injured in car crashes, potentially denting their profits and pushing up

drivers’ premiums.

“This is a bad outcome for insurance customers and taxpayers that will

add costs rather than save customers money,” said Huw Evans, director

general of the Association of British Insurers.

“This will remain the lowest discount rate in the Western world, leaving

England and Wales an international outlier at a time when we need to

boost our attraction to international capital,” Evans said.

Shares in British motor insurers Admiral (ADML.L), Direct Line (DLGD.L),

whose brands include Churchill, Green Flag and Privilege, and esure,

Hastings (HSTG.L) and Sabre (SBRE.L) all fell on Monday, before recouping

losses. Analysts see Admiral and Direct Line as most affected by the new

rate.

The discount rate corresponds to the return victims should expect from

investments. A lower Ogden rate requires insurers to make larger lump sum

payments on personal injury claims, as it assumes lower annual investment

returns for those amounts.

The Association of Personal Injury Lawyers welcomed the new discount

rate, which will be introduced on Aug. 5 and reviewed again within five

years.

“The government has faced sustained pressure from the insurance

industry to set a rate which would not be appropriate for injured people,

who should not be forced to take any risk with their investments,”

president Gordon Dalyell said.

Insurer LV= said claimants would remain over-compensated and

expected the rate to be challenged again at the next review.

The rate takes into account returns available to investors and investments

made, allowances for tax, inflation and investment management costs, as

well as wider economic factors, the ministry said in a release.

Car insurance premiums increased by 3.5% (27 pounds) in the second

quarter of 2019, with UK motorists now paying 789 pounds on average, 37

pounds more than they were paying this time last year, according to the

latest Confused.com Car Insurance Price Index in association with Willis

Towers Watson.

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Bank of England can respond to Brexit impact on economy Monday 15th July, 2019 – Reuters

Bank of England Governor Mark Carney said on Monday the British central

bank had the ability to respond to either slower growth or higher inflation

which could follow the country’s departure from the European Union.

“We have the flexibility to respond to circumstances in either direction -

stronger growth or weaker inflation - if necessary,” Carney said when

asked about the risk of a recession in Britain and whether the BoE had the

tools to respond.

He also said Britain’s financial system was strong enough to withstand any

Brexit turbulence.

Carney was responding to a question from a reporter at an event to

announce the selection of mathematician Alan Turing, who helped Britain

win World War Two with his code-cracking, to appear on a new 50-pound

banknote.

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Euro inches higher but expectations for dovish ECB cap gains Monday 15th July, 2019 – Reuters

The euro remained within its recent trading range against the dollar on

Monday, its progress capped by expectations for a dovish European

Central Bank meeting next week and after investors turned more bearish

on the currency.

Foreign exchange markets were quiet on Monday and volatility low

ahead of major central bank policy meetings next week. The Australian

dollar - enjoying a boost from encouraging Chinese economic data - was

the only real mover.

Money markets have priced in an ECB rate cut of 10 basis points in

September and another one in March. The meeting on July 25 may

reinforce those expectations.

Investors expect the Federal Reserve to cut its key rate by 25 basis points

at the end of July, followed by another cut in September.

Forecasts for dovish moves by both central banks have kept euro/dollar

stuck in a narrow range for weeks.

The euro EUR=EBS was up 0.08% at $1.1281, still within the recent range of

$1.14 to $1.11.

An index that tracks the dollar against a basket of six other major

currencies .DXY was flat at 96.761.

Investors are more bearish on the euro, since Treasury yields look set to

remain among the highest in developed markets despite future Fed rate

cuts, analysts say.

However, the euro “should recover somewhat as it looks to me like the

eurozone economy and expectations are bottoming,” said Marshall

Gittler, chief strategist at ACLS Global.

Speculators added to their short positions against the euro in the week to

July 9, according to U.S. Commodity Futures Trading Commission data.

Leveraged funds extended their net long dollar positions for the first time

in seven weeks.

Some analysts are surprised the euro is not gaining as the market prices in

Fed easing.

“For the world’s most-traded and least-exciting currency pair, a dovish

Fed, a weak-dollar President and a hint of global economic optimism,

‘ought’ to mean EUR/USD rallies. If it can’t stage a move back to 1.14 in

the next week or two, what on earth could make it rally?” said Kit Juckes,

FX strategist at Societe Generale.

Elsewhere, the Australian dollar reached a 10-day high on stronger-than-

expected economic data from China, which some analysts saw as

signaling that moves to revive spending in the world’s second-biggest

economy are working.

China’s industrial output rebounded in June from a 17-year low in May.

June retail sales surged 9.8% from a year earlier. The Chinese economy

grew at the slowest rate in nearly 30 years, though this was expected.

The Aussie AUD=D3 gained 0.2% to $0.7037 against the U.S. dollar, its

highest since July 4.

China's offshore yuan was up 0.1% to 6.8742 yuan per dollar CNH=EBS.

Sterling was lower by 0.1% at $1.2565 GBP=D3 and by 0.2% against the

euro to 89.81 pence EURGBP=D3.

The Swiss franc was up 0.1% at 1.1080 francs per euro, near a three-week

high EURCHF=EBS.

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GNBS TO COMMENCE THE MONITORING OF GOLD JEWELLERY IN 2020 Sunday 14th July, 2019 – Kaieteur News

The Guyana National Bureau of Standards (GNBS) is set to commence

monitoring of the gold jewellery manufactured and offered for sale by

goldsmiths and jewelers. This monitoring will commence in January 2020,

and will be based on the requirements of the National Standard

Specification for Gold Articles (GYS 50:2010), which is a compulsory

standard.

All goldsmiths and jewelers are required to possess a copy of the National

Standard, which will help them to understand the requirements and

modify their businesses and products to ensure compliance.

In addition, commencing 2020, these stakeholders will be required to

register annually with the GNBS; and facilitate routine inspections at their

sale outlets.

During inspections, Inspectors of the GNBS will examine jewellery offered

for sale for compliance to labelling requirements stipulated by the

standard. Samples would be routinely tested to verify the quality of the

jewellery based on what is declared on the label.

For example, if a piece of jewellery is labelled 14 Karats (K), it will be tested

to verify that it is the same.

For manufacturers of gold jewellery, complying with the requirements of

the Gold standard will prevent fraud and deception arising from

misleading labels. The standard gives guidance to manufacturers and

helps them to provide adequate labelling information.

Consumers can also benefit when jewelers implement the standard, as

during purchases they will be guided by labels affixed to the jewellery. In

addition, when jewelers and goldsmiths across Guyana conform to the

standard, consumers are able to access the right quality of gold articles,

and overtime, gain confidence in the fact that they are receiving value

for their money.

Finally, during the months of July and August 2019, the GNBS will be

conducting a series of awareness sessions on the requirements of the

National Standard for Goldsmiths and Jewelers.

The first in the series of session will be held in Georgetown of Wednesday

July 17, 2019 from 13:00h at the Regency Suits, Hadfield

Street,Georgetown. Other sessions are scheduled for Region 2, 3, 5, 6, and

7 and further details will be communicated to all stakeholders directly or

via the press. It is important that goldsmiths and jewelers attend and

participate in these sessions to know what is required of them as the GNBS

works to standardize the industry.

<< Back to news headlines >>

Guyana to export 30,000 tonnes of rice to Cuba Sunday 14th July, 2019 – Guyana Chronicle

ALIMPORT, the Cuban rice importing agency, has agreed to purchase

30,000 metric tonnes of rice from Guyana for the period July-September

2019, the Guyana Rice Development Board (GRDB) General Manager,

Nizam Hassan, said.

Hassan said loading operations have commenced in Georgetown.

Ambassador to Cuba, Halim Majeed, said this achievement by the

government is the result of intense negotiations between the Guyana

Embassy in Cuba and the Cuban Ministry of Foreign Trade.

The collaboration, he said, is also between MINCEX and ALIMPORT which

started in December 2018 and continued throughout the past several

months with support from Nand Persaud Group of Companies, A.

Cayume Hakh and Sons (ACHS) and GBTI.

On May 3, 2019, Minister Counsellor, Heather Seelochan, and Ambassador

Halim Majeed met with Jose Chaple and Jesus Gonzalez from the Cuban

Ministry of Foreign Trade and Investment (MINCEX) and Alejandro

Mustalier, President of ALIMPORT, to continue discussions on a

government-to-government rice agreement. It was at this meeting that

consensus was reached for Cuba to continue purchasing rice from

Guyana.

Guyana re-commenced rice exports to Cuba in 2017. In 2017, Guyana

exported 15,512 metric tonnes to Cuba and 44,948 metric tonnes in 2018.

The hope this year is to exceed the previous year’s exports.

Ambassador Majeed has been in on-going discussion with MINCEX to

develop a government-to-government rice agreement that would give

Guyana preferential and guaranteed access to the Cuban rice market

which requires between 400,000 and 500,000 metric tonnes of rice

annually.

<< Back to news headlines >>

Domestic Banks In 10% Cost Increase Friday 12th July, 2019 – Tribune 242

Domestic banks and trust companies endured a near-ten percent

operating cost increase in 2018 amid continued expense and regulatory

pressures on the wider financial services industry.

The Central Bank’s survey of the sector’s 2018 contribution to Bahamian

GDP, released earlier this week, revealed that wage pressures,

government taxes and non-staff administrative costs drove a 9.7 percent

rise in the domestic sector’s costs to almost $500m.

“Domestic banks and trusts companies’ total expenditure rose by ten

percent to $511.1m in 2018, exceeding the 1.3 percent uptick recorded a

year earlier and the average gain of 3.1 percent over the last five years,”

the Central Bank said.

“Underpinning this development, total operational costs - which

accounted for 97 percent of the total - expanded by 9.7 percent to

$495.9m, outstripping the 1.7 percent increase in the prior year. This

outcome reflected an 11.5 percent rise in other non-staff administrative

costs to $234.1m, following a two percent gain recorded in the preceding

year.

“In addition, salary outlays advanced by 7.2 percent to $196m, extending

the previous year’s 2.3 percent advance, as both base salaries and

bonuses registered growth of 7.8 percent and 0.8 percent, respectively.

Further, Government fee payments, inclusive of license fees, work permits

and ‘other’ taxable inputs, grew by 10.9 percent to $63.7m, a reversal

from a slight 0.4 percent fall-off in 2017.”

As for the financial services industry’s international segment, the Central

Bank said that despite closures and the outsourcing of back office

functions, total spending increased by 1.3 percent to $249m in 2018. This

partially reversed the 9.3 percent fall-off witnessed during the prior year.

“Underlying this outturn was a nearly three-fold increase in capital

spending to $10.2m from $3m following a significant 59.3 percent decline

a year earlier,” the Central Bank said. “In contrast, operational outlays,

which comprised 95.9 percent of total expenditure, contracted by 1.6

percent to $238.8m, although lower than the 7.9 percent decrease in

2017.

“In particular, salary payments fell by 5.5 percent to $133.7m as the 8.7

percent reduction in base salaries outweighed the 3.6 percent uptick in

bonuses. Government fee payments also decreased by 5.6 percent to

$9.2m following a 13.5 percent contraction recorded a year earlier.

“Providing some offset, other administrative costs moved higher by 4.9

percent to $95m, a reversal from a 12.2 percent reduction in 2017. In

addition, outlays for staff training grew marginally by 0.4 percent after a 6

percent fall-off in the prior year.”

Average salaries paid by the international banks increased by an

estimated $5,218 or 4.9 percent to $111,129 in 2018, which the Central

Bank said was due mainly to “a decline in lower paid administrative-

related staff”. Average salaries at domestic banks firmed by $3,261 or 6.2

percent to $56,289 per year.

Painting a bleak picture of the financial services industry’s near-term

growth opportunities, the Central Bank survey added that its findings

“continued to underscore the fact that the sector is in the midst of

adjustment to economic and regulatory forces”.

It said: “Cost considerations and weak credit market conditions continue

to contain the operating prospects for the domestic sector. For

international businesses, the response to tax transparency requirements

has exacerbated operating cost pressures, culminating in both the

repositioning of business outside the jurisdiction and significant outsourcing

of support for the remaining operations.

“In this regard, The Bahamas continued to experience employment

retrenchment in international banking, notwithstanding an increasing

expenditure footing for domestic banking.... The corporate and financial

services is also facing adjustments, as The Bahamas transitions to

enhanced international transparency around the use of international

business companies (IBCs).”

Looking ahead, the Central Bank said: “Near to medium-term prospects

for the financial services sector’s contribution to the economy remain

contingent on strengthening the competitive profile of the sector. For

some business models, this has meant increasing the attention on markets

outside of the major industrial countries, with strengthened focus on

attracting tax compliant clientele.”

<< Back to news headlines >>

Scotia drops by $2 Saturday 13th July, 2019 – Trinidad Express Newspaper

Overall market activity resulted from trading in 19 securities of which four

advanced, nine declined and six traded firm.

The Composite Index declined by 4.51 points (0.32 per cent) to close at

1,384.54. The All T& T Index declined by 9.44 points (0.52 per cent) to close

at 1,788.78. The Cross Listed Index advanced by 0.08 points (0.06 per cent)

to close at 132.55.

The SME Index remained at 90.00.

Trading activity on the first-tier market registered a volume of 530,639

shares crossing the floor of the Exchange valued at $4,771,589.97.

JMMB Group was the volume leader with 289,305 shares changing hands

for a value of $650,841.25, followed by Sagicor Financial Corporation with

a volume of 106,521 shares being traded for $1,065,228.83. Unilever

Caribbean Ltd contributed 42,709 shares with a value of $1,075,197.20,

while FirstCaribbean International Bank added 26,308 shares valued at

$218,882.56.

Massy Holdings Ltd registered the day's largest gain, increasing $0.56 to

end the day at $55.08. Conversely, Scotiabank T& T registered the day's

largest decline, falling $2 to close at $60.

On the mutual fund market 31,090 shares changed hands for a value of

$737,485.50. CLICO Investment Fund was the most active security, with a

volume of 29,548 shares valued at $715,400. CLICO Investment Fund

advanced by $0.01 to end.at $24.21. Calypso Macro Index Fund declined

by $0.68 to end at $14.32.

The second-tier market did not witness any activity.

CinemaOne was the only active security on the SME market, posting a

volume of 1,000 shares valued at $9,000. CinemaOne remained at $9.

The USD equity market did not witness any activity. MPC Caribbean Clean

Energy remained at $1.

<< Back to news headlines >>

CLF hit with $13b in new claims ...buyer chosen for Holiday Inn Express Sunday 14th July, 2019 – Trinidad Express Newspaper

CL Financial has been hit with three new claims totalling $13.2 billion in the

first six months of 2019, its joint liquidators assert, even as the group, which

collapsed in the first month of 2009, received $38 million in dividends and

loan repayments from its subsidiaries in that period.

The joint liquidators described the $13.2 billion in new claims as

'exceptionally complex' and said they required 'extensive review and

investigation by our staff.' The new claims took the total value of claims

against CL Financial to $31.9 billion.

The details are contained in the Fourth Report of the Joint Liquidators (JL's)

of CL Financial dated June 14 and signed by David Holukoff (who

replaced Marcus Wide in December 2018) of the international

accounting firm, Grant Thronton.

But there was no hint in the document as to the names of the new

claimants or the legitimacy of their claims.

According to the joint liquidators report, CL Financial hopes to gain an

additional $55 million in the coming months, once tax matters related to

the money are resolved.

The report noted that:

• A buyer has been selected for the Holiday Inn Express and has already

entered into a sale and purchase agreement with two CLF subsidiaries-

the Home Construction Ltd and Trinidad Hotels Ltd;

• The divestment of Methanol Holdings (International) Ltd (MHIL) is

'significantly advanced' and 'will complete during the period following this

report;'

• As of May 2019, CL Financial had $165.68 million in the bank;

• CL Financial has also applied to the court to approve the sale 3,027

acres land for about $850 million;

'Although significant in gross value, not all of the proceeds from these

sales are likely to be available to the unsecured creditors of the Company

as,regrettably,therearea varietyof claims over these assets which must be

settled before any net proceeds are remitted to the company,' the report

said.

It encompassed the period December 2018 to June 14.

'The company's ability to return value to its creditors is largely dependent

on its ability to release value from the wider group. This being the case,

the safeguarding and monitoring of the group (and its value) has been a

primary strategic aim from the outset of the liquidation,' the report said.

To this end, the company voted to replace the board of directors of 23

active subsidiaries 'with directors who represent the interests of the

company and, where appropriate, their other shareholders.'

Those companies are - Home Construction Ltd, Eastern Commercials

Lands Ltd, Plaza Development Ltd, Planviron Ltd, Safeguard Services Ltd,

Trincity Commercial Centre Ltd, Trinidad Hotels Ltd, Beta Realty

Investments Ltd, Highgate Development Co Ltd, HCL Premier Malls

Holdings Ltd, The HCL Group Ltd, Trincity Commercial Parks, Mariners

Haven Ltd, CL Ventures Ltd, Caribbean Petrochemical Manufacturing Ltd,

CL Marine Ltd, Teri Services Ltd, Caribbean Dockyard & Engineering

Services, Base Energy Services & Transportation Company Ltd, Caribbean

Engineering Marine Services Ltd, Rene Investments Ltd, CL World Brands

Ltd, Rumpro Company Ltd.

One director was added to the board of the Colonial Fire and General

Insurance Company Limited (COLFIRE).

'In summary, the joint liquidators have sought to implement new boards

and improve the general corporate governance across the group with

the introduction of audit, operational and human resources committees.

These committees work together with management to ensure proper

information isprovidedtothe boards so as to ensure informed and efficient

decision making. The closer scrutiny and input afforded by this structure

ensures that the operations and governance of the group entities are

safeguarded as their businesses and assets are prepared for sale,' the

report said.

It described the exercise as an essential step in providing the new boards

with the level of insight required to effectively guide the operations whilst

the divesture strategy is unrolled.

Legal Matters

The liquidators noted there had been significant legal activity impacting

the company during the last six months.

The Proman matter - the matter of CL Financial and CLICO v Proman

Holdings (Barbados) Ltd, Process Energy and Lawrence Duprey reached

trial during the period.

'CLF is claiming the defendants paid approximately US$70 million less than

they should have paid when acquiring an asset of CLF in 2009 and is

accordingly seeking recovery of that amount plus interest,' the report said.

'Whilst it was expected that the trial would have completed during May,

due to numerous additional and unusual applications submitted by the

defendants, there will be several more days of sitting in June and July 2019

before the trial will conclude.'

NEVICOTT - the report noted that the Court had approved the post-

liquidation transfer of 5,878 shares of the company (0.08 per cent of its

total share capital) to NEVICOTT Ltd. The liquidators noted that it complied

with the court order to release confidential information to NEVICOTT after

it made representations it would provide US$2 billion in financing to the

company.

'The liquidators are cognisant of their role to ensure the assets of CLF are

preserved for the interest of its creditors and are cautious in engaging with

third parties unless credible evidence is available that such engagement

will provide value to creditors. Unfortunately, the liquidators were required

to expend considerable time and costs and incur significant legal fees in

defending the application of the new shareholder. If successful in

defending

the application, the liquidators intend to seeks costs from NEVICOTT on the

indemnity basis so as to recompense the liquidation estate for the

expenses incurred,' the report said. The date of the judgement is set for

July 23.

Trust Deeds - The liquidators said that when they were appointed they

identified six declarations of deeds of trust which assert HCL, Methanol

Holdings (International) Limited and CL World Brands for the benefit of

CLICO or CIB while ownership remained in the name of the company.

'The liquidators have completed their investigations with respect to one of

the trusts and have received preliminary legal advice with respect to its

validity. The liquidators anticipate filing an application with the Court

which will present the legal advice and the liquidator's recommendation

as to the validity of the trust, at which point the liquidators will request the

Court provides a directions order with respect to the validity of the trust,'

the report said.

Grant Thornton's Fees

The liquidators told the court that they have worked at a discounted rate

for the company since they were appointed in July 2017.

From December 1, 2018 to May 31, 2019, their costs were US$1,232,721.

The report put the discounted value at US$536,353.

It noted that since it has been appointed, fees have amounted to

US$3,236,155, with a total discount of US$1,450,231 and expenses of

US$261,718.

They were appointed by the High Court on July 25, 2017 to manage CL

Financial with the power, amongst others, to secure the assets and

undertakings of the group and to investigate its affairs.

On July 11, 2017 the Government petitioned and was successful in the

High Court to have the conglomerate, once chaired by Lawrence

Duprey, wound up because it was unable to pay its debt and that

liquidators be appointed to manage its affairs. The Government's case

was that CL Financial is insolvent and continued operation was 'reckless',

that it was in the public's interest to have it wound up to repay the debt

owed to Government and other creditors. CL Financial's most valuable

asset, its insurance company-Colonial Life Insurance Company (CLICO)-

remains under management of the Central Bank of Trinidad and Tobago

(CBTT) under Section 44D.

CL Financial's main shareholders include CL Duprey Investment Trust (21.8

per cent), Dalco Capital Management Company Ltd (26 per cent),

Ministry of Finance (14.2 per cent), Other parties (38 per cent).

Proposed Next Steps

These are the next steps the JL's identified moving forward:

continue monitoring the active subsidiaries through communication with

the new boards; complete the divestiture of the Hotel and MHIL Shares

during the early part of quarter three; subject to the approval of the

Court, work with Active Subsidiaries to launch a comprehensive marketing

process for the Land Bank; completing and updating the valuations of

assets where they remain outstanding; continue to advance the

divestiture of certain other direct and indirect businesses and assets in the

early part of quarter three of 2019, with a view to submitting a number of

applications for the Court's approval of these sales shortly following the

date of this report; advance legal matters and, where appropriate,

bringing formal claims against relevant parties; progress our review of the

Trust Deeds and seek direction from the Court as and when there is

sufficient information for the Court to be in a position to assess the trusts;

and, continued adjudication of creditors' claims.

<< Back to news headlines >>

T&T downgraded as gas prospects lowered Sunday 14th July, 2019 – Trinidad Express Newspaper

Last Week, on July 9, 2019, S& P Global Ratings lowered its long-term

foreign and local currency sovereign credit ratings on the Republic of

Trinidad and Tobago to 'BBB' from 'BBB+'. The outlook is stable. At the same

time, S& P Global Ratings affirmed its 'A-2' short-term foreign and local

currency sovereign credit ratings on the country. S& P Global Ratings also

revised down its transfer and convertibility assessment to 'BBB+' from 'A'.

The downgrade reflects lower than expected energy production and

economic growth that we believe will weaken the Government's revenue

base and delay plans to balance its budget by the 2020-2021 fiscal year.

It also reflects delays in making institutional reforms to strengthen tax

revenue collection and to improve the provision of timely economic data.

These factors weaken the country's resilience against external shocks.

The investment-grade ratings continue to reflect Trinidad and Tobago's

favourable external profile and stable democracy. They also reflect the

country's solid level of government financial assets that mitigate the effect

of economic cycles on Trinidad and Tobago's fiscal and external

performance.

The country accumulated savings over the past decade that stabilise the

economy in the face of fluctuating commodity prices. This is particularly

relevant for Trinidad and Tobago given the economy's concentration in

the energy sector, which represents over one-quarter of GDP, over a third

of government revenues, and over 80 per cent of exports.

Nevertheless, the sector's sharp downturn over the past several years and

the limited effectiveness of policy response particularly given a heavily

managed exchange rate and a small open economy that we believe

limit the role of monetary policy pose risks to the country's ability to

respond to shocks. Our ratings also reflect the country's poor long-term

growth performance, with a per capita GDP contraction of 0.4 per cent

on average over the last ten years.

The revised transfer and convertibility assessment reflects our view of a

higher likelihood of Trinidad and Tobago restricting non sovereign access

to foreign exchange needed to satisfy non sovereign debt service

obligations. We now view this risk as only slightly lower than the sovereign

foreign currency rating, as informed by the country's persistent foreign

exchange restriction, economic policy orientation, and external policy

flexibility. (S& P Global Ratings) OMOs.

There were no OMO maturities last week and the week before. The next

OMO maturity will be mid-August 2019.

Liquidity

The commercial banks closed last week with an excess reserve of $3.9

billion compared to $3.4 billion last week, up by $0.5 billion.

US Treasury Bills

The yield on two-year notes opened at 1.89 per cent and closed last

week at 1.84 per cent, down five basis points (bps).

The yield on ten-year notes opened at 2.05 per cent and closed this week

at 2.11 per cent, up six basis point (bp).

<< Back to news headlines >>

GML declines 10 per cent Sunday 14th July, 2019 – Trinidad Express Newspaper

Last week, the first-tier market increased by 53.81 per cent on a total of

2,054,932 shares crossing the floor compared to 1,336,006 shares in the

previous week.

The value of the shares traded more than doubled, up 130.09 per cent to

$21,629,677.15 from the previous week's value of $9,400,677.33.

For the second consecutive week JMMB Group Ltd (JMMBGL) was the

volume leader capturing 57.96 per cent of the market activity or 1,191,100

shares traded. JMMBGL has been in the top three for the past four weeks.

In second place was Sagicor Financial Corporation Ltd (SFC) with 14.63

per cent or 300,631 shares traded. SFC has been in the top three for the

past two weeks. NCB Financial Group Ltd (NCBFG), followed with 6.23 per

cent or 128,123 shares traded.

The indices ended the week in negative territory. The Composite Index fell

by 1.15 per cent or 16.11 points to close at 1,384.54. The All Trinidad and

Tobago Index decreased by 0.66 per cent or 11.89 points to end at

1,788.78. The Cross Listed Index closed at 132.55, down 2.06 per cent or

2.79 points and the Small and Medium Enterprise Index ended at 90.00, a

drop by 9.55 per cent or 9.50 points.

Last week, there were four stocks advancing and 13 stocks declining,

while five stocks were at their 52week high and eight stocks at their 52-

week low.

The major advance was JMMBGL, up 7.14 per cent or $0.15 to close the

week at $2.25, its 52 week high. In second place was Prestige Holdings Ltd

(PHL) with an increase of 2.78 per cent or $0.25 to close at $9.25, followed

by One Caribbean Media Ltd (OCM) up 0.30 per cent or $0.03 to close at

$10.10.

Guardian Media Ltd (GML) was the major declining stock last week, down

9.80 per cent or $1.25 to close at $11.50, which was its 52-week low.

NCBFG was in second place with a decrease of 4.90 per cent or $0.49 to

close at $9.50. In third place was Point Lisas Industrial Port Development

Corporation

Ltd (PLD) down by 4.43 per cent or $0.16 to close at $3.45, its 52 week low.

There was no activity on the second-tier market last week.

On the TTD mutual fund market 42,259 CLICO Investment Fund (CIF) units

traded with a value of $1,023,271.13. CIF's unit price closed at $24.21, an

increase of 0.79 per cent or $0.19 from the previous week. Also, 1,608 units

in Calypso Macro Index Fund (CALYP) traded with a value of $23,075.50.

CALYP's unit price closed at $14.32, down by 1.24 per cent or $0.18 from

the previous week.

On the Small and Medium Enterprise Market, CinemaOne Limited (CINE 1)

closed the week at $9, a decrease of 9.55 per cent or $0.95, with 1,261

shares traded valued at $11,349.

On the USD Equity Market, MPC Caribbean Clean Energy Ltd (MPCCEL)

closed at US$1 with no shares traded.

<< Back to news headlines >>

PIMU announces new Barbuda project Monday 15th July, 2019 – The Daily Observer

The Project Implementation and Management Unit (PIMU) announced

during a recent press briefing that it will be embarking on a project to

repair buildings in Barbuda.

Project Coordinator Dennis Cudjoe spoke briefly about the Barbuda

project.

“There is another project that will be rolled out dealing with Hurricane

Irma, and that is another loan from the Caribbean Development Bank

(CDB) that will realise some of the repairs to some of the public buildings

on Barbuda,” he said, adding that improvements to the water supply and

the Fisheries Department will be a part of that project.

Cudjoe added that a project engineer has been identified but planning

for the Barbuda project remained in its early stages, and behind the

planning for the 2020 second road rehabilitation project on Antigua.

In September 2017, Hurricane Irma decimated Antigua’s sister island,

Barbuda, which has not yet recovered from the devastation.

However, earlier this month Director of the National Office of Disaster

Services (NODS), Philmore Mullin stated that he was confident that the

repair work done in Barbuda should ensure that the island will be better

prepared for any major hurricane threat during the 2019 Atlantic

Hurricane Season.

<< Back to news headlines >>

Antigua makes counter-offer for LIAT Saturday 13th July, 2019 – Trinidad Express Newspaper

Antigua and Barbuda government, says it is not aware that negotiations

with Barbados had broken down regarding the sale of the shares of the

cash-strapped regional airline, LIAT, owned by Bridgetown.

Media reports in Barbados had suggested that the talks, which began a

week ago, had broken down after only 'a few hours'.

But in a WhatsApp message sent to the Caribbean Media Corporation

(CMC), Antigua Prime Minister Gaston Browne said that he is 'not aware

that it has stalled,' adding 'not to my knowledge'.

Browne said 'a counter-offer was made by Antigua', telling CMC he would

not be disclosing the counter-offer. 'At this time, I am not at liberty to

discuss the details,' Browne said.

Barbados negotiating team is led by Attorney General Dale Marshall and

includes the Minister for Tourism, Kerrie Symmonds and Director of Finance

and Economic Affairs, Ian Carrington.

The Barbados media reports had indicated that Bridgetown was not

impressed with St John's initial proposals.

Antigua and Barbuda is seeking to become the largest shareholder

government of the airline and is in negotiations with Barbados to acquire

most of that country's shareholding in the Antigua-based airline. The other

shareholders are Dominica, St Vincent and the Grenadines and Grenada.

Antigua and Barbuda currently holds 34 per cent of the shares and if it

succeeds in convincing Bridgetown to part with its LIAT shares, would have

81 per cent of the airline that employs over 600 people and operates 491

flights weekly across 15 destinations.

St John's said it would seek to acquire the LIAT shares owned by Barbados,

through a take-over of the liability of Barbados to the Caribbean

Development Bank (CDB).

<< Back to news headlines >>