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DATE COUNTRY

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REGIONAL

Trinidad and Tobago

Imbert: Budget to be read by Oct 30

The date for the country’s 2018 budget will be announced next week by

Finance Minister Colm Imbert.

TT companies help devastated islands

Efforts by corporations to assist Caribbean islands devastated by

Hurricane Irma continue even as they express their sympathies to all who

were impacted.

Energy Minister confident of Petrotrin turnaround

ENERGY Minister Franklin Khan on Thursday remained confident that State

oil company Petrotrin, “is fixable.” Khan expressed his confidence as he

defended the company’s recently appointed board of directors.

Jamaica

JN Insurance Snags NHT Account

JN General Insurance Company Limited has snagged the National

Housing Trust account, covering the peril insurance component of the

mortgage loans issued by the agency.

New Entrants Push SEZ Investments To US$120m

The Jamaica Special Economic Zone Authority, JSEZA, is reporting that as

new companies come on board, total investments through the nascent

SEZ market has risen to US$120 million, with substantially more projects in

the wings.

Barbados

Jobs gone

President of the Small Business Association (SBA) Dean Straker is reporting

a 20 per cent decline in business since the introduction of the

controversial National Social Responsibility Levy (NSRL).

Barbados Cont’d

Govt to address delays with tribunal

GOVERNMENT IS COMMITTED to resolving the administrative issues that are

affecting the smooth functioning of the Employment Rights Tribunal (ERT)

and to eliminating the backlog of cases which has been a source of

frustration for some members of the public.

The Bahamas

Businesses Face ‘Major Supply Chain Disruption’

Bahamian businesses were yesterday warned to brace for “significant

supply chain disruption”, with no freight vessels arriving at Nassau until

possibly “late next week”.

St. Kitts and Nevis

Resort developers step in to help St Kitts return to normalcy

BASSETERRE, St Kitts — Resort developer, Range Developments, and

construction company, Kier Group, have commenced work on the

Mansion sports pavilion in St Kitts that posed a safety risk for citizens and

residents in that community following the passage of Hurricane Irma.

Panama

Potential tax changes for Americans in Panama

For many years, the persistent call for change in the taxation of American

corporations and individuals abroad has gone unanswered. However, the

current administration’s actions, suggest the very real possibility of new tax

rules, sooner rather than later.

Laundering crackdown on insurance brokers

THE LICENSES of 745 Panama insurance brokers have been suspended for

failing to comply with a law governing money laundering.

Antigua & Barbuda

Antigua-Barbuda government reviews new education strategy for

relocated Barbuda students

The Cabinet of Antigua and Barbuda, having received an assessment

from local officials of the current conditions on Barbuda following the

passage of Hurricane Irma, has decided that no decision can be made at

this time as to the opening of schools on the island.

USAID lending assistance to storm-ravaged Barbuda

The United States government, through the United States Agency for

International Development’s Office of US Foreign Disaster Assistance

(USAID/OFDA), is providing assistance to the government and people of

Antigua and Barbuda following the recent passage of Hurricane Irma.

Other Regional

British troops arrive in Barbados for deployment to hurricane-affected

countries

British High Commissioner, Janet Douglas, and head of DFID Caribbean,

Colleen Wainwright, on Friday evening met the first British troops arriving in

Barbados for deployment to affected countries, to support the relief

efforts in the wake of Hurricane Irma.

INTERNATIONAL

United States

Futures higher as Irma weakens, North Korea tensions ease

U.S. stock index futures were sharply higher on Monday on relief that

Hurricane Irma weakened and North Korea did not conduct a nuclear

test over the weekend as feared.

Dollar bounces as risk appetite returns

The dollar edged higher on Monday, after posting its biggest weekly drop

in two months, as a revival in interest in riskier assets prompted some

investors to cut short bets against the greenback before U.S. inflation data

this week.

United Kingdom

London stays world's top finance center despite Brexit

London remains the globe’s most attractive financial center, extending its

lead over New York despite Britain’s looming departure from the

European Union, a survey found on Monday.

BoE expectations help pound recover vs. euro

Sterling rose to a three-and-a-half-week high against the euro on Monday,

helped by speculation that the Bank of England may sound more hawkish

on interest rates this week in defence of the currency.

Europe

German bond yields back away from recent lows as ECB unease lingers

Germany’s benchmark 10-year bond yield pulled further away from

recent 2-1/2 month lows on Monday, as unease about an unwinding of

ECB stimulus and relief that North Korea did not conduct another missile

test at the weekend hurt safe-haven assets.

Easy ECB policy to limit firming euro's negative impact: Coeure

European Central Bank policy will remain accommodative for longer than

in previous cases of demand shock, likely limiting the negative impact of

the euro’s appreciation, ECB Executive Board member Benoit Coeure said

on Monday.

China

China central bank relaxes yuan hedging rules as currency strengthens,

capital outflows ease

China’s central bank on Monday scrapped two measures that were put in

place to support the yuan when it was under significant selling pressure,

suggesting Beijing is anxious to quash one way bets on the yuan as

outflows ease and exporters face strain.

Japan

JGB yields pull away from lows as investors' risk appetite rises

Japanese government bonds slipped on Monday, pulling yields away

from recent lows, as investors’ risk aversion waned after the weekend

passed without any missile launches by North Korea and sapped some of

the safe-haven appeal of fixed-income assets.

Japan Cont’d

Japan regional bank consolidation "inevitable": adviser to regulator

Further consolidation among Japan’s regional banks is inevitable given a

rapidly ageing population and ultra-low interest rates, an adviser to the

country’s financial regulator said.

Global

Oil weakens on fears Irma could dent U.S. demand

Oil prices edged lower on Monday on concerns that Hurricane Irma’s

pounding of heavily populated areas of Florida could dent oil demand in

the world’s top oil consuming nation.

Imbert: Budget to be read by Oct 30 Monday 11th September, 2017 – Trinidad and Tobago Guardian

The date for the country’s 2018 budget will be announced next week by

Finance Minister Colm Imbert.

But Imbert assured the budget will be delivered in the House of

Representatives before October 30.

“I will be announcing the date soon. Maybe, not today. Maybe some

time next week I will be announcing the date for 2018 budget, which will

be before 30th of October. Next week I will let you know the date,” said

Imbert, who is acting as Prime Minister.

He made the disclosure at a press conference at the Parliament building

in Port-of-Spain yesterday.

Imbert said Government had to complete the budget exercise, which is

required by law.

He said this exercise must be completed in the Upper and Lower Houses

of Parliament by October 30th.

The debate in the Houses, Imbert said, will allow the Government to speak

about its policy and performance as well as put forward its plans.

“It will speak about what they (Government) would be doing about the

issues facing the country and so on. So a lot of that would be coming in

the budget statement in itself. So I would prefer not the pre-empt that until

the actual budget statement is delivered, which would not be long from

now,” Imbert said.

The Government is allowed to spend in October ten per cent of what was

spent in the previous year, Imbert said.

Although Prime Minister Dr Keith Rowley had indicated that the budget

could be delivered in the last week of September, Imbert has kept the

date close to his chest.

Asked yesterday how he would describe the upcoming budget in a

nutshell, Imbert insisted he would let the media know next week.

Will the budget turn around the disappointment within the citizenry which

the polls on Government’s two-year performance published this week

have picked up?

Imbert said: “I will let you know during the budget debate about that

one.”

The Appropriation Bill has to go to the President Anthony Carmona for his

assent before October 30th.

MPs will return to the House of Representatives today after the annual

mid-year break.

<< Back to news headlines >>

TT companies help devastated islands Monday 11th September, 2017 – Trinidad and Tobago Newsday

Efforts by corporations to assist Caribbean islands devastated by

Hurricane Irma continue even as they express their sympathies to all who

were impacted.

The latest companies – Digicel, bmobile, United Way Trinidad and Tobago

(UWTT), and GraceKennedy Money Services (GKMS) – are doing so in

ways both big and small for the people of Barbuda, St Martin/St Maarten,

St Barthélemy, Anguilla, the US and British Virgin Islands, Turks and Caicos,

the Dominican Republic, Haiti, the Bahamas and Cuba.

According to a press release, bmobile partnered with UWTT to raise funds

for Hurricane Irma relief efforts via a text-todonate campaign. bmobile

customers can text “help” to 6683 and $5 would be automatically

deducted from their account to help rebuild homes and economies.

Individuals could donate as many times as they want.

UWTT Community Impact Manager Linda Ramsumir said, “We are excited

about using this to connect to the public.

It is so important. Money is the most effective input to mobilise and the

“Text to Donate” initiative opens up the means for everyone to give. You

may think that it’s only big corporations and wealthy individuals who can

give, however, by working together every small contribution can make a

difference – you can do it through just one text.” TSTT’s Vice President

Marketing, Camille Campbell explained that all contributions would go

into a virtual account and when the campaign was closed off, TSTT would

issue one cheque for the entire amount collected. Contributors would be

informed how much was collected, how it will be used, and which

organisations would receive the cheque.

UWTT CEO Jennifer Sancho added that since non-government

organisations were collecting basics supplies like food, water, clothing

and medicine, they were looking at longterm needs. “We are looking at

helping to rebuild communities as well as the immediate post-storm

needs. This is going to be a complex and long-term initiative. We’ll identify

suitable partners on the ground in the islands who need the most help,

and work with them.

Of course, this depends on the amount of money collected, so it is

important we work collectively.” Meanwhile, Digicel said it had mobilised

over 200 fleets of engineers, technicians and riggers to restore network

connection as soon as possible.

In its release on Friday, the company said its response teams were on the

ground in affected countries and they continue to work around the clock.

It said Digicel was also working with Governments of the region and

disaster response agencies to establish the pressing needs of the people

so that it can activate accordingly.

Commenting on the Digicel response, Caribbean and Central America

CEO, Vanessa Slowey, said, “Equally, we are committed to helping the

islands to recover and rebuild in the aftermath of these hurricanes. As we

continue to manage the impact of Irma and anticipate the passage of

Hurricane Jose swiftly behind it, we would like to assure the people of

these islands that we stand with them now – and into the future.” In

addition, GKMS, which includes Western Union, FX Trader, and Bill Express,

has decided to allow persons sending money to and from Antigua and

Barbuda to do so free of charge as of yesterday.

GKMS also encouraged its customers across the region to download and

use the Western Union app to track their remittances and to find their

nearest locations.

<< Back to news headlines >>

Energy Minister confident of Petrotrin turnaround Saturday 9th September, 2017 – Trinidad and Tobago Newsday

ENERGY Minister Franklin Khan on Thursday remained confident that State

oil company Petrotrin, “is fixable.” Khan expressed his confidence as he

defended the company’s recently appointed board of directors.

Speaking with reporters after a function at his ministry’s headquarters at

Tower C of the Port of Spain International Waterfront Centre, Khan said

there is no problem with the ministry’s permanent secretary Selwyn Lashley

being a member of the Petrotrin board.

He said Lashley consulted with the Head of the Public Service as to

whether his presence on the board would constitute a potential conflict

of interest., “From that level, he had no objection to his appointment,”

Khan said. Reiterating that the board’s appointment was “a collective

Cabinet decision,” Khan said Cabinet confirmed the note about the

Petrotrin board at its regular weekly meeting at the Diplomatic Centre in

St Ann’s on Thursday.

Describing the members of the Petrotrin board as “very competent,” Khan

said the company needs three things to improve its current

circumstances.

He identified these as: proper skill sets at the managerial and senior

managerial level; the right skill sets in Petrotrin’s core to effect the

turnaround and, “serious new capital injection.” Saying these things form

part of the new board’s mandate, Khan reiterated, “The Government

does not intend to handle the day to day operations of Petrotrin.” Khan

said he would speak again with the Oilfield Workers Trade Union (OWTU)

about their concerns with the new board.

However, Khan said the OWTU is acutely aware that, “the challenges are

extremly grave at Petrotrin.” Noting the union is a key player in the

company’s turnaround, Khan was confient that the OWTU would be

willing to work with Petrotrin’s board and management.

He said it is, “in their own interest that Petrotrin be put right.” Khan also

expressed optimism that this year’s revenues from the energy sector would

be higher than last year’s. He hoped this would be reflected in the

2017/2018 Budget.

Sources said the budget is expected to be presented in Parliament either

in the last week of September or the first week in October.

<< Back to news headlines >>

British troops arrive in Barbados for deployment to hurricane-affected

countries Sunday 10th September, 2017 – Caribbean News Now

British High Commissioner, Janet Douglas, and head of DFID Caribbean,

Colleen Wainwright, on Friday evening met the first British troops arriving in

Barbados for deployment to affected countries, to support the relief

efforts in the wake of Hurricane Irma.

These troops will supply immediate manpower, emergency supplies and

equipment to provide rapid assistance to affected communities.

Queen Elizabeth and British Prime Minister Theresa May have expressed

their sympathy for all those in the hurricane-affected islands of the

Caribbean.

Douglas said, “The United Kingdom stands in solidarity with all those

impacted by Hurricane Irma throughout the Caribbean.”

The UK is working closely with the Caribbean Disaster Management

Agency (CDEMA), local governments and other partners to bring much

needed relief to hard-pressed communities. The following is an overview

of the assistance being provided by the British government to the islands

of the Caribbean suffering the impact of hurricane Irma:

£32 million of funding to assist those affected

Four UK Aid humanitarian experts deployed to assist with needs

assessments and coordination

Royal Fleet Auxiliary Mounts Bay is providing immediate assistance,

including Royal Engineers and Royal Marines to repair vital services

ashore.

The ship carries a range of equipment to support humanitarian responses

including vehicles, tents and facilities to purify water.

HMS Ocean is being diverted to the Caribbean in order to provide help

with reconstruction once the hurricanes have passed.

<< Back to news headlines >>

JN Insurance Snags NHT Account Sunday 10th September, 2017 – Jamaica Gleaner

JN General Insurance Company Limited has snagged the National

Housing Trust account, covering the peril insurance component of the

mortgage loans issued by the agency.

NHT mortgagors are required to pay for life and peril insurance, but those

expenses are bundled into their mortgage payments.

NHT pays the premiums directly to its selected insurance partner, then

collects from mortgagors through their monthly loan payments.

On Friday, Jamaica National Group Assistant General Manager in charge

of Group Finance, Earl Samuels, described the NHT contract as "a very

complex thing" and that JN General was fronting the business in

partnership with several international reinsurers to provide full coverage.

He said the NHT portfolio was valued at $200 billion.

NHT's former peril insurance partner was American Home Assurance

Company, which rebranded as Chartis Jamaica in 2012, then later

became AIG Jamaica Insurance Company. AIG Jamaica stopped writing

business in January 2015 as it finalised arrangements to pull out of the

Jamaican market the following year.

The summary document naming American Home/Chartis as the peril

insurer was still on the NHT website up to Friday, whereas the document

naming JN General as peril insurer was either pulled off the site or rerouted

elsewhere.

NHT now oversees 106,000 mortgage loans and a portfolio valued at more

than $170 billion. But factoring for the Joint Finance Mortgage Programme

through which contributors can obtain financing from the NHT and its

partners, the trust said the portfolio tops $200 billion.

The NHT contract portends strong growth for JN General, which wrote

gross premiums of $5.2 billion in 2016, compared to $4.89 billion the year

before, according to its latest audited accounts. NHT has not been

forthcoming on the amount it currently collects in insurance premiums

from its mortgagors. However, four years ago, those collections for peril

insurance were tracking at $900 million, according to previous disclosures

by the housing agency.

COVERS LOAN BALANCE

JN General's boss, Chris Hind, did not respond to requests for comment. His

operation last contributed net profit of $530 million to the JN Group at

year ending December 2016. That's down from $601 million in 2015.

NHT said the peril insurance for strata units or apartments covers the loan

balance against loss or damage to the unit.

In general, NHT facilitates life and peril insurance coverage for

mortgagors. Mortgagors' monthly loan payments therefore include the

principal and interest, life insurance and peril insurance premiums.

The life insurance component, which is handled by Sagicor Life Jamaica,

covers the outstanding loan balance if a mortgagor dies. The peril

insurance policy covers fire, earthquake, hurricane, storm, flooding and

wind damage.

<< Back to news headlines >>

New Entrants Push SEZ Investments To US$120m Sunday 10th September, 2017 – Jamaica Gleaner

The Jamaica Special Economic Zone Authority, JSEZA, is reporting that as

new companies come on board, total investments through the nascent

SEZ market has risen to US$120 million, with substantially more projects in

the wings.

Kelli-Dawn Hamilton, JSEZA's director of investor relations and

communications, says prospective investors have floated projects totaling

US$1 billion and talks are ongoing with Jampro to help launch those

ventures.

The prospects include firms engaged in business process outsourcing,

logistics, warehousing, manufacturing and assembly.

Counted among the US$120 million are CEAC Outsourcing Company,

which aims to launch a call centre operation at Ferry in St Catherine

through subsidiary company International Business Spaces; and Happy

Sandy Bay, which plans to open a BPO facility in Hanover.

Hamilton said she was not at liberty to name the others.

"There are also companies in the dry docking and manufacturing sectors

as well," she said.

Jampro vice president for investments Claude Duncan later explained

that the SEZ regulations are still being finalised.

The Special Economic Zone Act passed in 2016 to replace the free zones

that were phased out to confirm with international free trade rules against

export subsidies.

Under the new system, developers in the zones will receive a raft of tax

incentives, but must have minimum paid up capital of US$1.5 million, while

the occupants of a designated SEZ must have US$25,000 of paid up

capital.

SEZ occupants are also required to invest a minimum US$50,000 in

equipment, buildings and plant during year one, while small and medium-

sized entities with the potential for high growth will be considered on a

case-by-case basis by JSEZA.

Hamilton said local investors should consider investing in real estate for use

by SEZ operators.

"One of the major challenges being faced locally is the availability of

space within which companies can conduct their SEZ business. This clearly

creates an opportunity for local developers to fill this gap in the SEZ space.

One of the major benefits to developers within the SEZ is that their rental

income will be tax free," she said.

As to how the SEZ operators will directly benefit the economy, the

communications director said they are required to pay a registration fee

for new applicants and annual fees thereafter, and that elements of the

programme incentivises them to do business with Jamaicans.

"Backward and forward linkages in the local economy are key to ensuring

that even those companies who are not SEZ can benefit from the

programme as well. Purchases made in the local economy are tax free

and therefore provides an incentive for companies to include local

companies in their supply chain," said Hamilton.

"Under the Jamaica Free Zone Act companies were required to export 85

per cent of their goods and services; there is no such requirement in the

SEZ regime. Companies can determine their own market breakdown,

export and/or local markets," she said.

SEZ companies will pay corporate income tax at a rate of 12.5 per cent.

There are no taxes on dividends and none on rental of property within the

zone. They can also get a tax credit against funds spent on research and

development, capped at 10 per cent of taxable income, among other

incentives.

Existing free zone operators, who currently pay no corporate taxes, will be

subject to the applicable 12.5 per cent rate, if they chose to migrate to

the SEZ. Those operators will be grandfathered or phased into the new

system, but the timeline is dependent on passage of the regulations,

Duncan said.

Last year, the Ministry of Industry and Commerce estimated that there

were 128 companies in operation under the repealed free zone law,

including Gulfray Americas Limited which is building out the Spanish Town

Free Zone and the Kingston Wharves port logistics facility.

<< Back to news headlines >>

Antigua-Barbuda government reviews new education strategy for

relocated Barbuda students Sunday 10th September, 2017 – Caribbean News Now

The Cabinet of Antigua and Barbuda, having received an assessment

from local officials of the current conditions on Barbuda following the

passage of Hurricane Irma, has decided that no decision can be made at

this time as to the opening of schools on the island.

Following a special meeting of the Cabinet late Friday night, it was

however directed that a plan be formulated immediately to integrate the

over 500 students from Barbuda into the public-school system in Antigua.

The Cabinet also agreed to commence consultations with the people of

Barbuda and stakeholders on Monday, during which Barbudans will

receive an update on the current situation on the island and given the

opportunity to be involved in the decision-making process.

The Cabinet of Antigua and Barbuda said it remains committed to the

education of the children of Barbuda, the rebuilding of the island and

most importantly the welfare of all Barbudans and Antiguans.

Meanwhile, global citizenship advisory firm Arton Capital is leading an

initiative to help rebuild a school in Barbuda destroyed by Hurricane Irma.

It is pledging an initial US$50,000, and calling on clients, stakeholders and

all global citizens to join this fund-raising effort.

“Like many people around the world we have felt the devastation in

Barbuda caused by the hurricane,” said Armand Arton, founder and

president of the Arton Capital. “Our hearts go out to the people of

Antigua and Barbuda, whose lives have been turned upside down by one

of the most powerful hurricanes in history.”

Through the Global Citizen Foundation, Arton had donated more than

US$20,000 for equipment to a school in Antigua just a few years ago.

“Proceeds from this year’s Global Citizen Forum, taking place this October

in Montenegro, will go the Global Citizen Foundation specifically to help

rebuild Barbuda,” said Arton, who is also an economic envoy of Antigua

and Barbuda.

The Global Citizen Foundation has not only donated funds in the past but

has had a hands-on experience in the rebuilding of schools.

“We have done it India, at refugee camps, and most recently in Nepal,”

Arton noted.

<< Back to news headlines >>

USAID lending assistance to storm-ravaged Barbuda Sunday 10th September, 2017 – Caribbean News Now

The United States government, through the United States Agency for

International Development’s Office of US Foreign Disaster Assistance

(USAID/OFDA), is providing assistance to the government and people of

Antigua and Barbuda following the recent passage of Hurricane Irma.

Working in partnership with Antigua and Barbuda’s Red Cross, the United

States government will provide US$100,000 in immediate disaster relief for

essential relief items including mattresses, bedding, hygiene kits, kitchen

sets, kits, and clean-up equipment.

The catastrophic category 5 storm decimated the smaller of the twin-

island state, damaging 90 percent of its buildings and leaving the country

“barely habitable” before continuing on its destructive path across the

region.

A USAID/OFDA assessment team is expected to be on the ground in

Antigua next week to conduct further assessments to determine what

additional assistance is needed, following the passage of Hurricane José.

USAID/OFDA is continuing to monitor the impacts of ongoing weather

systems, and has deployed response teams to countries in the projected

path of the storms. Disaster experts are prepared to conduct damage

assessments and provide immediate assistance to affected countries as

soon as conditions permit.

USAID supports a number of international NGO and UN partners in the

region that are equipped to immediately provide assistance to hard-hit

areas. As the US government’s lead federal coordinator for international

disaster response, USAID’s Office of US Foreign Disaster Assistance is

coordinating with disaster officials in the region, as well as with US

embassies in countries that could potentially be impacted by these storm

events.

USAID Administrator Mark Green called Prime Minister Gaston Browne of

Antigua and Barbuda to convey the condolences and support of the

United States to the people of that island nation following the destruction

wrought by Hurricane Irma.

Green and Browne discussed urgent needs on the ground, and the

administrator reiterated USAID’s commitment to provide immediate

humanitarian assistance, including critical relief items.

Noting USAID’s 50-year partnership with the island nation, Green

expressed solidarity with the people and government of Antigua and

Barbuda in this difficult time, and offered his prayers. USAID has deployed

a disaster assistance response team to the region, and will continue to

coordinate closely with governments and civil-society partners to provide

assistance.

<< Back to news headlines >>

Jobs gone Saturday 9th September, 2017 – Barbados Today

President of the Small Business Association (SBA) Dean Straker is reporting

a 20 per cent decline in business since the introduction of the

controversial National Social Responsibility Levy (NSRL).

Based on the impact of the tax, which was increased from two per cent

to ten per cent on July 1, Straker also said that some businesses have

been forced to send home workers, and he warned that if commonsense

did not prevail and a decision taken quickly to change how the tax is

applied to the manufacturing sector, more workers could soon be joining

the breadline soon.

Although Straker could not say exactly how many workers had gone

home, he told Barbados TODAY there was no doubt that the tax was

taking its toll on the sector.

“Sales are generally down anywhere between 15 and 20 per cent since

July 1 and we anticipate that things could get tougher coming down into

October . . . certainly people are feeling it,” he said.

“It is obvious that if your revenue is down 15 to 20 per cent, the only way

you can tackle it and deal with it on your own is to start looking at your

expenses, and your expenses are going to impact on employees. That is

where you are going to have to go. You are going to have to trim your

staff, and already yes, some people have started doing it,” he said,

adding that some companies simply could not hold on any longer.

Since the announcement of the tax by Minister of Finance Chris Sinckler in

his May 30 Budget, private sector operators have been complaining that

they could be forced to let go staff or go out of operation.

Some have also warned customers of possible price increases, given that

the situation was compounded by the introduction of a two per cent levy

on foreign exchange transactions, as well as a hike in fuel charges.

However, despite several meetings on the issue and strident calls for a

reversal of the onerous tax measures, which formed part of a $542 million

tax package, Government is still not budging.

It has been insisting that the private sector, as well as local trade unions,

which came together back in July to stage a march against the NSRL that

attracted 20,000 people, should give the tax some time to work and allow

for a review at the end of September.

However, Straker said local manufacturers were finding it hard to cope

with the NSRL, which is applied to all imports at the border and to the

production cost of goods used by the sector.

Suggesting that the way in which the tax was being applied to locally

produced items was “unjust and unfair”, the SBA spokesman warned that

“a number of things need to be worked out and worked out quickly.

“The fact that manufacturers in Barbados are being treated differently to

anybody else . . . makes producing things locally very hard to be

competitive with imports. So this is what we need to be addressed,”

Straker said.

He made it clear that local manufacturers were not against paying the

NSRL, but “they are against paying the NSRL at the end of the assembly

line and being asked to pay it on everything that goes into making that

product”.

Straker also said in some instances the Barbados Revenue Authority was

not calculating the tax payable in the same way as the companies.

“Accountants will tell you one thing and Barbados Revenue Authority will

tell you something else. Our understanding is that BRA has told us the

production cost is everything except your markup. So that is significant,”

he said.

“So what I had asked for is a clearly outlined policy from Barbados

Revenue Authority saying what they expected, all the line items that they

expected to be contained in your production cost. So far, we haven’t got

that and what’s happening is that manufacturers are treating it in their

own way,” he said.

“Therefore I am saying, outline a list of the items of what you expect to

make up in the production cost so that everybody is on the same page or

just come straight out and say, ‘we expect production cost would be 50

per cent or 40 per cent of your sales’, some definitive thing so that

everybody can follow,” Straker suggested.

<< Back to news headlines >>

Govt to address delays with tribunal Sunday 10th September, 2017 – Nation News

GOVERNMENT IS COMMITTED to resolving the administrative issues that are

affecting the smooth functioning of the Employment Rights Tribunal (ERT)

and to eliminating the backlog of cases which has been a source of

frustration for some members of the public.

Minister of Labour, Social Security and Human Resource Development,

Senator Dr Esther Byer Suckoo gave this undertaking recently during an

interview with the Barbados Government Information Service.

The Minister said now that the Tribunal had been functioning for some

time, they had been able to identify some weaknesses. She disclosed that

meetings were held internally and with the unions and employers to

identify some of the challenges and their possible solutions.

Senator Byer Suckoo also alluded to further meetings to be held shortly. “In

the next week or two I will be meeting with the members of the Tribunal to

put some new structures in place. I do admit that there have been

challenges and there is a back log. We have been working with limited

resources but I think that we have now been able to identify how we can

best use the resources that we have. When I meet with the chairpersons in

the next two weeks, I believe we will be able to put those new

mechanisms in place,” she stated.

The Labour Minister also hinted at a minor amendment to the legislation as

a means of reducing some of the burden on the ERT – a measure which

already has the buy-in from the employers and the unions. She also

disclosed that consultations were held on a number of suggested

amendments for better administration of the Act.

Pointing out that consultations were held on the Employment Rights Act

for close to two decades before its passage, she commended those

involved in the discussions that “came with an understanding about what

we were trying to do and the spirit behind the Act”.

“Most of what is in the Act was already in practice and some already in

our Protocol of the Social Partnership. The Employment Rights Act was in

draft for close to two decades with intense consultations. The parties

understood and agreed to what the Act was attempting to do. However,

since the enactment in 2012, employers, workers and attorneys are

interpreting this legislation in a way that we had not before envisaged.

She continued: “We have seen some very interesting interpretations of the

legislation and it has made for scenarios that none of the parties

imagined in the 20 years that it was being drafted. This is not unique to this

Act however, [but] now we are looking at specific areas in the legislation

to see how we can address the scenarios that are now arising out of the

Employment Rights Act,” Senator Byer Suckoo contended.

The Labour Minister pointed out that the Act was not meant to place any

undue hardship on employers but was meant to protect workers and to

ensure that there are fair structures in place for employers to deal with

challenges they have with their workers.

<< Back to news headlines >>

Futures higher as Irma weakens, North Korea tensions ease Monday 11th September, 2017 – Reuters

U.S. stock index futures were sharply higher on Monday on relief that

Hurricane Irma weakened and North Korea did not conduct a nuclear

test over the weekend as feared.

Irma pounded heavily populated areas of central Florida, but gradually

lost strength, weakening to a Category 1 hurricane overnight and is

expected to weaken to a tropical storm during the day.

The United States and its allies had been bracing for another long-range

missile launch for the 69th anniversary of North Korea’s founding on

Saturday, but its leader Kim Jong Un hosted a massive celebration

instead.

With the tensions easing, safe-haven assets lost appeal, with gold falling

from Friday’s 13-month high as the dollar edged up.

Wall Street ended mixed on Friday, with the major indexes all posting

declines for the week, as investors braced for Irma and fretted about

Pyongyang’s conducting a missile test.

Oil prices edged lower on Monday on concerns that Irma could dent oil

demand in the world’s top oil consuming nation.

Among stocks, Snap (SNAP.N) was down 1.56 percent in premarket

trading after Deutsche Bank downgraded the stock to “hold” from “buy”.

U.S.-listed shares of Teva Pharmaceuticals (TEVA.N) jumped 14 percent

after the generics drugmaker poached Lundbeck’s (LUN.CO) Kare Schultz

as its new chief executive.

GrubHub (GRUB.N) fell 1.41 percent after Credit Suisse downgraded to

“neutral” from “outperform”.

Futures snapshot at 6:57 a.m. ET (1057 GMT):

Dow e-minis 1YMc1 were up 119 points, or 0.55 percent, with 12,694

contracts changing hands.

S&P 500 e-minis ESc1 were up 13.5 points, or 0.55 percent, with 159,068

contracts traded.

Nasdaq 100 e-minis NQc1 were up 46 points, or 0.78 percent, on volume

of 17,535 contracts.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza)

<< Back to news headlines >>

London stays world's top finance center despite Brexit Monday 11th September, 2017 – Reuters

London remains the globe’s most attractive financial center, extending its

lead over New York despite Britain’s looming departure from the

European Union, a survey found on Monday.

Britain’s departure from the trading bloc has led to some politicians and

economists predicting London will lose its pre-eminent status as a financial

center, but there are few signs of that happening yet.

London was placed first, followed by New York, Hong Kong and

Singapore in the Z/Yen global financial centers index (GFCI), which ranks

92 financial centers on factors such as infrastructure and access to high

quality staff. New York was 24 points behind the British capital, the biggest

gap between the two since the survey started in 2007.

New York’s ranking fell 24 points from last year, the largest fall among the

top contenders, a dip the survey’s authors said was “presumably due to

fears over U.S. trade”.

Since becoming U.S. President in January, Donald Trump has pulled out of

a planned trans-Pacific trade agreement and is pursuing a more

isolationist economic policy.

Britain’s most powerful financial lobby group, TheCityUK, cautioned

against complacency and called for clarity on its transitional

arrangements for leaving the EU, which will apply beyond April 2019,

when Britain is due to formally leave.

“Absent this, many firms have already started to activate their

contingency plans and others will undoubtedly follow suit if these aren’t

confirmed as soon as possible - and by the end of this year at the very

latest,” said Miles Celic, Chief Executive Officer of TheCityUK.

Since the survey was conducted in June, talks between Britain’s Brexit

minister David Davis and his opposite number at the European

Commission, Michel Barnier, have become increasingly acrimonious.

The past two months have also seen a pick-up in the number of banks

saying they plan to set up new EU subsidiaries after Brexit, with most major

U.S., British and Japanese banks saying they will establish units in Frankfurt

or Dublin.

Frankfurt has moved up to 11th in the table from 23rd a year ago and

Dublin has moved to 30th from 33rd.

(Reporting By John O'Donnell and Andrew MacAskill; Editing by Elaine

Hardcastle)

<< Back to news headlines >>

BoE expectations help pound recover vs. euro Monday 11th September, 2017 – Reuters

Sterling rose to a three-and-a-half-week high against the euro on Monday,

helped by speculation that the Bank of England may sound more hawkish

on interest rates this week in defence of the currency.

The pound hit a five-week high against the dollar last Friday after better

than expected manufacturing numbers, and market data also showed a

month-long build-up of speculative bets against the currency stalled in

the week to last Tuesday. That does not represent a full quelling of the

unease that has gathered over sterling in the first months of Brexit

negotiations.

But it comes ahead of a Bank of England meeting on Thursday that some

analysts and traders believe could show it is increasingly worried about

the weak pound’s effect on inflation.

“The firmer growth developments (last week) should provide more

confidence to the BoE that economic growth is still holding up relatively

well since the Brexit vote,” said Lee Hardman, a currency analyst at

Japan’s MUFG. “We expect the BoE to reiterate this week that the market

is underestimating the scale of rate hikes likely in the coming years,

although they will likely stop short of signaling a rate hike is imminent this

year.”

Against the euro, that mood helped the pound strengthen to less than 91

pence per euro for the first time since Aug. 18, gaining 0.2 percent on the

day against a broadly weaker euro. It dipped less than 0.1 percent to

$1.3188, a third of a cent off five-week highs hit after a stronger batch of

manufacturing data on Friday.

“The noise (around sterling) has not gone away and I‘m sure if we get to

the end of this week at highs then next Monday will look different,” said

Richard Benson, co-head of portfolio investment with currency managers

Millennium Global in London. “But if sterling is going to have a good week

then this is it. Cable (dollar rates) may prove sticky but euro sterling could

head towards 90 pence.”

(Writing by Patrick Graham; Editing by Saikat Chatterjee and Mark

Trevelyan)

<< Back to news headlines >>

Dollar bounces as risk appetite returns Monday 11th September, 2017 – Reuters

The dollar edged higher on Monday, after posting its biggest weekly drop

in two months, as a revival in interest in riskier assets prompted some

investors to cut short bets against the greenback before U.S. inflation data

this week.

Despite the bounce, net short bets against the dollar remain near their

highest levels since January 2013 as expectations of Federal Reserve

policy tightening have faded.

Currency markets now expect only one U.S. rate increase by the end of

2018, a sharp decline in expectations from a rate hike before the end of

this year a few weeks ago.

“The market is searching for dollar positive news and unless we see a

sustainable catalyst for a turnaround, the longer term dollar trend is likely

lower,” said Richard Falkenhall, a senior FX strategist at SEB.

U.S. inflation data later this week is unlikely to show a significant pick up in

price pressures with the August reading forecast to have risen 1.6 percent

on an annual basis versus 1.7 percent in July. The Fed has a 2 percent

inflation target.

The dollar added 0.6 percent against its Japanese counterpart to 108.49

yen, moving away from a 10-month low of 107.32 yen touched on Friday.

The dollar index, which tracks the U.S. unit against a basket of six major

currencies, was 0.2 percent higher at 92.51, after skidding to a 2-1/2 year

low of 91.011 on Friday.

“We have seen investors selling dollars for several weeks now and the

weekend combination of risk sentiment getting better and China’s reserve

requirement news has led to some much needed good news for the

greenback,” said Alvin Tan, an FX strategist at Societe Generale in

London.

World stocks climbed to a record high on Monday as investors breathed a

sigh of relief after North Korea marked the 69th anniversary of its founding

on Saturday without any further missile or nuclear tests, fuelling some

unwinding of safe-haven bets such as gold and bonds.

Elsewhere, the euro tumbled towards the day’s lows and bond yields

eased after ECB board member Benoit Coeure said improved euro zone

growth could offset some of the negative effects of the euro’s strength

but a persistent exchange rate shock could drag down inflation.

Coeure added that given the persistent challenges faced by the ECB in

raising consumer prices, its definition of ‘medium-term’, the time horizon

required to meet its inflation target, would be longer than usual.

The single currency fell below $1.20 after his comments to a low of $1.1935

before recovering partially.

The dollar’s gains were also helped by news that China’s central bank

plans to scrap reserve requirements for financial institutions settling foreign

exchange forward yuan positions with effect from Monday, according to

four sources with direct knowledge of the matter who spoke to Reuters

last Friday.

(Reporting by Saikat Chatterjee; Editing by Mark Potter)

<< Back to news headlines >>

China central bank relaxes yuan hedging rules as currency strengthens,

capital outflows ease Monday 11th September, 2017 – Reuters

China’s central bank on Monday scrapped two measures that were put in

place to support the yuan when it was under significant selling pressure,

suggesting Beijing is anxious to quash one way bets on the yuan as

outflows ease and exporters face strain.

The move comes as the yuan bounced sharply this year to hit a near two-

year peak on the dollar last week, giving authorities the confidence to

relax their grip on a currency that had stumbled badly in 2016 and raised

risks to economic stability.

With China’s economy humming along at a solid pace and putting to

bed concerns of a sharper slowdown, the central bank is likely to pursue a

more neutral yuan rate with the potential for increased two-way volatility,

analysts said in the wake of the rules changes.

“The central bank seems to convey the idea that China conducts a

dynamic policy making process,” Commerzbank analysts Hao Zhou and

Lutz Karpowitz wrote in a note.

“Against this backdrop, the capital control policies could be eased

somewhat if there is no undesired market turbulence following the

removal of the reserve requirements.”

The People’s Bank of China has scrapped reserve requirements for

financial institutions settling foreign exchange forward yuan positions, it

said in comments emailed to Reuters on Monday morning. The PBOC has

also stopped requiring foreign banks to put aside reserves for offshore

yuan deposits in China. Both changes are effective immediately.

Reuters, citing sources with direct knowledge of the matter, had reported

these changes earlier.

The PBOC’s statement said the changes took into consideration current

market conditions, adding that the yuan strength against the dollar this

year reflected an improving Chinese economy.

LOWER APPETITE FOR APPRECIATION

Markets were quick to react, with the yuan losing ground despite the

PBOC setting a higher midpoint of 6.4997 per dollar, strengthening it

beyond the key psychological 6.5 level for the first time since May 2016.

The offshore and onshore yuan were both trading weaker than the 6.5

level on Monday.

Still, around 6.52 to the dollar the onshore yuan was not too far off a 21-

month high at 6.4478 set on Friday, underpinned by capital curbs, broad

dollar weakness and the PBOC’s tighter control of the midpoint.

At the official local close on Monday, the onshore spot yuan was up

around 6.5 percent so far this year, which is about the same losses it

suffered in 2016.

Analysts at Goldman Sachs said the central bank’s recent policy signals

“seem to point to reduced comfort with the ongoing pace of

appreciation”.

They highlighted a shift in the “counter-cyclical” factor in yuan fixings that

had seen it turn more reactive to market appreciation pressures,

potentially pointing to a reduced propensity to accommodate much

more strength in the yuan.

The analysts were referring to the mysterious “counter-cyclical” factor that

the PBOC added to their calculations of the yuan’s daily reference point

to curb price swings in the Chinese currency.

Sources have told Reuters that Chinese policymakers are beginning to

worry about the strength of the yuan as exporters come under strain,

risking a hit to the economy ahead of an important Communist Party

gathering in the autumn.

All the same, intervening to cap it could expose China to accusations of

currency manipulation by U.S President Donald Trump.

“One interpretation is that the pace of CNY appreciation has taken the

PBoC, as well as the market by surprise,” said Iris Pang, economist at ING,

in a note to clients.

“We believe that CNY appreciation will continue, but at a slower pace

from now on.”

(Reporting Elias Glenn and Winni Zhou; Editing by Shri Navaratnam)

<< Back to news headlines >>

Oil weakens on fears Irma could dent U.S. demand Monday 11th September, 2017 – Reuters

Oil prices edged lower on Monday on concerns that Hurricane Irma’s

pounding of heavily populated areas of Florida could dent oil demand in

the world’s top oil consuming nation.

Losses were capped by weekend talks between Saudi Arabia’s oil minister

and counterparts over a possible extension to a pact to cut global oil

supplies beyond next March.

Brent crude oil futures for November delivery LCOc1 were down 33 cents

at $53.45 a barrel while benchmark U.S. West Texas intermediate crude

CLc1 advanced by 22 cents to $47.70.

Hurricane Irma knocked out power to nearly four million Florida homes

and businesses on Sunday after millions were told to evacuate ahead of

the storm.

“We believe that Irma will have a negative impact on oil demand but not

on oil production or processing,” Goldman Sachs analysts said in a note.

Irma is forecast to weaken to a tropical storm over northern Florida or

southern Georgia later on Monday.

It comes on the heels of Hurricane Harvey, which struck the U.S. oil hub of

Texas two weeks ago, knocking out a quarter of the nation’s refineries,

many of which are now restarting operations.

The two hurricanes are expected to inflict a “bearish shock” on oil

balances in September of about 600,000 barrels per day (bpd), Goldman

said.

The longer-term focus, however, was on discussions over a possible

extension to the 15-month production pact between members of the

Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC

producers including Russia and Kazakhstan. The deal aims to curb an oil

supply glut that has weighed on crude prices for more than three years.

The deal agreed late last year to reduce output by about 1.8 million bpd

until March 2018 helped to keep prices as high as $58 a barrel in January,

but they have since sagged as global stocks have not fallen as quickly as

expected.

Saudi Arabia’s Energy Minister Khalid al-Falih met his Venezuelan and

Kazakh counterparts at the weekend to discuss an extension of the deal

by at least three months, the Saudi energy ministry said.

Venezuela Energy Minister Eulogio del Pino said on Friday that global oil

inventories remain too high and urged producers to look at exemptions

granted to countries such as Libya and Nigeria and their effect on the

market.

Elsewhere, Iran will reach an oil production rate of 4.5 million bpd within

five years, a senior Iranian industry official said on Sunday. Iran has been

producing about 3.8 million bpd in recent months.

(Additional reporting by Osamu Tsukimori; Editing by David Goodman)

<< Back to news headlines >>

JGB yields pull away from lows as investors' risk appetite rises Monday 11th September, 2017 – Reuters

Japanese government bonds slipped on Monday, pulling yields away

from recent lows, as investors’ risk aversion waned after the weekend

passed without any missile launches by North Korea and sapped some of

the safe-haven appeal of fixed-income assets.

The 10-year cash JGB yield added 1 basis point to zero percent, moving

away from Friday’s 10-month low of minus 0.015 percent.

The September 10-year JGB futures contract was down 0.13 point at

151.38, while the December contract was 0.11 point lower at 151.23.

North Korea refrained from any missile activity and instead observed the

69th anniversary of its founding on Saturday with a celebration honouring

the scientists behind the massive nuclear test it conducted last week.

Japanese stocks firmed with the Nikkei stock index up 1.3 percent in

afternoon trading.

Weaker U.S. Treasuries also undermined JGBs, as the benchmark U.S. 10-

year note yield rose to 2.088 percent from its close of 2.061 percent on

Friday.

Data released early on Monday showed that Japan’s core machinery

orders rose in July at the fastest pace since January 2016, rebounding

from a third straight month of falls and an encouraging sign of the

increased capital investment needed for sustained economic recovery.

(Reporting by Tokyo markets team; Editing by Subhranshu Sahu)

<< Back to news headlines >>

Japan regional bank consolidation "inevitable": adviser to regulator Monday 11th September, 2017 – Reuters

Further consolidation among Japan’s regional banks is inevitable given a

rapidly ageing population and ultra-low interest rates, an adviser to the

country’s financial regulator said.

The Bank of Japan’s radical stimulus programme, which has pushed

interest rates to near or below zero, is severely cutting into bank profits

and could destabilize the sector in the not-so-distant future, said Naoki

Ohgo, who advises Japan’s Financial Services Agency (FSA).

“There are only a handful of regional banks successfully making money in

niche areas,” while many others are struggling to find new business

models, Ohgo told Reuters on Friday.

More regional banks should consolidate, not just to cut costs but also to

restructure their businesses and boost profitability, he said.

“Consolidation is inevitable and a good thing,” said Ohgo.

The remarks are one of the bluntest warnings among financial regulators

of the dire prospects for Japan’s crowded regional banking sector,

underscoring the challenges smaller banks face in surviving a business

environment made difficult by years of ultra-low interest rates.

“There’s not much time left” for regional banks to take steps to survive the

hit from an ageing population and dwindling margins, said Ohgo, a

private consultant who also advises several local governments.

Unless regional banks boost profitability, it “might not take long” for

prolonged ultra-easy policy to destabilize the country’s banking sector, he

said.

Ohgo is a close associate of FSA Commissioner Nobuchika Mori, who has

called for speedier banking-sector reform and is considered among one

of candidates for next BOJ governor.

The BOJ added yield curve control (YCC) last year to its massive asset-

buying programme to achieve its elusive 2 percent inflation target. It now

buys bonds to guide short-term interest rates at minus zero percent and

long-term rates around zero.

The radical monetary experiment has squeezed the more than 100

regional banks whose local economies are slumping due to an ageing

population, with the younger generation leaving for bigger cities as many

firms shut down factories in regional Japan.

A draft FSA report obtained by Reuters showed profits from lending and

fees at Japan’s smaller banks were falling faster than expected, with more

than half of the institutions losing money on these core operations.

“Despite abundant supply of cash in the economy, inflation did not reach

2 percent. It’s clear monetary easing wasn’t enough to generate

inflation,” said Ohgo.

“When you’ve failed to meet your target and the demerits start to exceed

benefits, you’ll have to focus on addressing the demerits of policy.”

(Reporting by Leika Kihara; Editing by Shri Navaratnam)

<< Back to news headlines >>

German bond yields back away from recent lows as ECB unease lingers Monday 11th September, 2017 – Reuters

Germany’s benchmark 10-year bond yield pulled further away from

recent 2-1/2 month lows on Monday, as unease about an unwinding of

ECB stimulus and relief that North Korea did not conduct another missile

test at the weekend hurt safe-haven assets.

European Central Bank policy will remain accommodative for longer than

in previous cases of demand shock, likely limiting the negative impact of

the euro’s appreciation, ECB Executive Board member Benoit Coeure said

on Monday.

Those comments briefly pushed bond yields across the bloc lower but the

impact proved fleeting.

Analysts said Friday’s report from Reuters that ECB officials generally agree

their next move would be to cut bond purchases, and have discussed

four options, highlighted that a tapering of stimulus is on the way and

tempered demand for bonds.

“On Thursday there was a lot of relief that the ECB would stick to its

expansionary stance, but latest comments suggest there is an ongoing

discussion and that there are several council members in favour of a less

expansionary stance,” said DZ Bank strategist Daniel Lenz, referring to last

week’s ECB meeting.

“We learnt the buying volume could be lower than previous market

expectations.”

Options being considered, according to Friday’s report, include cutting

monthly asset purchases from the current 60 billion euros to 20 or 40 billion

from the start of 2018, with the scheme running for another six or nine

months.

Germany’s Bund yield rose 1.5 basis points to 0.33 percent, up 4 bps from

2-1/2 month lows hit on Friday. It briefly hit session lows around 0.32

percent after Coeure’s comments.

Two-year German bond yields also pulled back from last week’s 4-1/2

month lows to trade a tad higher at minus 0.78 percent.

“The bond market has now got to a certain level where it needs new

information before acting,” said Orlando Green, European fixed income

strategist at Credit Agricole. “There wasn’t anything really new in Coeure’s

comments.”

Demand for safe-haven assets generally also took a knock as the

weekend passed with no further missile tests from North Korea when it

celebrated its founding anniversary and powerful storm Irma weakened.

Irma has caused a number of deaths and knocked out electricity to 3

million homes and businesses on its way up the Florida coast, raising

concerns about impact on the U.S. economy.

Southern European bonds markets drew some comfort from a pick-up in

risk appetite globally.

Portuguese and Italian bond yields were down about 1.5 bps each,

having risen sharply on Friday.

(Reporting by Dhara Ranasinghe; editing by Jon Boyle)

<< Back to news headlines >>

Easy ECB policy to limit firming euro's negative impact: Coeure Monday 11th September, 2017 – Reuters

European Central Bank policy will remain accommodative for longer than

in previous cases of demand shock, likely limiting the negative impact of

the euro’s appreciation, ECB Executive Board member Benoit Coeure said

on Monday.

Coeure's comments suggest that policymakers are relatively relaxed

about the currency's 14 percent rise against the dollar EUR= this year,

even as ECB President Mario Draghi singled out the exchange rate last

week as a source of uncertainty which requires monitoring.

“Compared with past demand shocks, policy will remain more

accommodative for longer, thereby likely muting further the pass-through

of any growth-driven exchange rate appreciation,” Coeure told a

conference in Frankfurt.

“And with the current recovery in the euro area being largely driven by

domestic demand, euro strength may also have less of an impact on

growth than, for example, after the Great Financial Crisis,” he added.

The ECB targets inflation at almost 2 percent over the ‘medium term’, an

undefined concept that is influenced by the size of any inflation shock.

The bank has undershot its price growth target for four and a half years

and will not raise inflation back toward 2 percent before 2020, its new

projections from last week show.

Still, it is expected to curb stimulus when policymakers meet in October as

the threat of deflation is long gone and growth is far better than

policymakers expected just a few months ago.

“At the current juncture, however, the policy-relevant horizon – the

‘medium term’ concept in our monetary policy strategy – is likely to be

longer given the persistence of subdued inflationary pressures,” Coeure

said.

Although seemingly relaxed about the currency appreciation, Coeure

also warned that a persistent external shock could meaningfully alter the

inflation outlook.

“Exogenous shocks to the exchange rate, if persistent, can lead to an

unwarranted tightening of financial conditions with undesirable

consequences for the inflation outlook.”

(Reporting by Balazs Koranyi; Editing by Mark Trevelyan)

<< Back to news headlines >>

Businesses Face ‘Major Supply Chain Disruption’ Friday 8th September, 2017 – Tribune 242

Bahamian businesses were yesterday warned to brace for “significant

supply chain disruption”, with no freight vessels arriving at Nassau until

possibly “late next week”.

Michael Maura, the Nassau Container Port’s (NCP) chief executive, told

Tribune Business that Hurricane Irma’s forecast track suggested the

Category 5 storm could cause major damage to all Florida ports that

serve the Bahamas.

With the likes of Tropical Shipping and Mediterranean Shipping Company

(MSC) having sent their vessels out to sea to avoid the ‘super storm’, Mr

Maura said it was uncertain when they would be able to return and

resume normal cargo service to the Bahamas.

The ports at Palm Beach, Miami, Port Everglades and Jacksonville supply

75 per cent of freight destined for New Providence, and the NCP chief

acknowledged that the likely damage to Florida’s port infrastructure will

be a “major concern” for Bahamian companies in the short-term at least.

“NCP may not receive a vessel until late next week,” Mr Maura confirmed

to Tribune Business via e-mail. “The transportation infrastructure in Florida is

a major concern. Hurricane Irma is expected to impact the port of Miami,

Port Everglades, Port of Palm Beach and port of Jacksonville.

“As previously mentioned, approximately 75 per cent of cargo for New

Providence is loaded at these ports. Vessels serving the Bahamas trade

are being sent out to sea empty to avoid Irma. Once Irma passes they will

circle back to their home port to be loaded. This could be on Tuesday of

next week after the US Coast Guard provides an all-clear.”

Mr Maura, in a subsequent interview with this newspaper, said: “The

concern I have, and that our company has, is that it’s going to Miami as a

Category 4 or 5 hurricane.”

With forecasts suggesting that Irma could strengthen further as a result of

the warm waters between the Bahamas and Cuba, and favourable

atmospheric conditions, the NCP chief executive said the consequences

for Florida’s eastern seaboard ports could be “extremely significant”.

Irma’s forecast track last night showed the ‘super storm’, with its 175 mile

per hour winds, going straight up the middle of the US’s ‘sunshine state’. If

this holds, it would potentially place all the ports serving the Bahamas -

apart from, potentially, Jacksonville, on the eastern side of a major

hurricane where the worst weather is typically located.

Mr Maura predicted that the short 20-mile distance between them would

ensure Irma likely dealt out similar treatment to Miami and Port

Everglades. There is a further 60-70 miles to Port Palm Beach, which

typically delivers 50 per cent of the freight received by Arawak Cay-

based NCP, and even Jacksonville in northern Florida could receive

Category 4 winds.

“It will have a pretty significant impact on our supply chain,” Mr Maura

said of Irma. “I do not believe it will put us out of business for any extended

period of time, but I expect we will experience significant supply chain

disruption next week.”

Tropical Shipping, MSC and other carriers serving the Bahamas will have to

recall their ships once Irma is passed, and then wait for US Coastguard

and pilot inspections to ensure there are no hazards that will prevent them

from berthing back in Florida. Only then will freight deliveries resume.

“It is an extensive process, but I expect that by the end of next week to

receive cargo in Nassau,” Mr Maura said.

Apart from cargo shipping disruption, Irma is also likely to hit the

availability and price of construction material, groceries and other

commodities and essentials for post-storm recovery in the Bahamas (see

other article on Page 1B).

“Hurricane Harvey devastated Texas and, as the rebuilding effort

continues, building material supplies will be directed to Texas,” Mr Maura

said.

“If Hurricane Irma results in significant destruction to Florida, and parts of

Georgia and South Carolina, these disasters will also place additional

demand on building materials.

“As demand surges in the US, prices may rise which may affect the

Bahamian construction sector and Bahamas hurricane relief efforts.”

As for food-stuffs, Mr Maura added: “Approximately 60 per cent of the

groceries imported into Nassau are supplied by Florida-based suppliers. It

is worth noting that many of the Florida suppliers are on the west coast or

middle of the state, with the produce suppliers primarily being in Miami.”

But he said SYSCO Foods, the multi-billion dollar food supplier and

wholesaler, and owner of Bahamas Food Services (BFS), would ensure

supplies remained available to the Bahamas.

Emphasising that the Bahamas was in no danger of a food shortage, Mr

Maura told Tribune Business: “Tropical has brought in 30 refrigerated

containers, all of which left the Port today and were taken to wholesalers

and retailers to be placed in refrigerators and freezers.

“From a Nassau food suppliers perspective, we’re in good shape and will

definitely get through a week of inconvenience, depending on what

goes on, but supply chains will quickly recover.”

He added: “NCP, as of 12 noon today, has 520 loaded containers in port.

Many of these containers hold food and will serve to restock grocery

shelves throughout New Providence and our Family Islands.

“Many of the wholesale food agencies in Nassau represent well-known

grocery suppliers and will be guaranteed supply. Irma will disrupt supply

chains during the short-term,

Mr Maura said NCP’s efforts to get cargo off the dock, and out of its

Gladstone Road Freight Terminal, prior to Irma’s arrival in the Bahamas

had been successful.

“Container out-gates were 23 per cent up on Tuesday and 4 per cent up

on Wednesday, compared to prior week,” he revealed.

“Recent forecasts suggested that Irma would not make a direct hit on

Nassau, which likely influenced container collection on Wednesday.

Vehicles releases on Tuesday were 41 per cent over prior week, and 63

per cent over Wednesday compared to same day last week.”

He added that MSC and Tropical had partnered with NCP to evacuate

1,000 empty TEUS (twenty-foot equivalent units or containers) prior to

Irma’s approach, saying: “Empty containers are of greatest concern to us

as they are more likely to be moved during the storm.”

Praising his staff, Mr Maura added: “The team did a phenomenal job. If

you come out to the port four days ago you would have seen well over

1,000 TEUs, both empty and loaded.

“Now we don’t have any stacks more than two high. The port is very

empty as far as we’re concerned. All crane booms are booms are

lowered, and they have been walked back 300 feet from the berth.

Containers have been placed around them to protect from sea surges.

We’re in good shape.”

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Potential tax changes for Americans in Panama Sunday 10th September, 2017 – Newsroom Panama

For many years, the persistent call for change in the taxation of American

corporations and individuals abroad has gone unanswered. However, the

current administration’s actions, suggest the very real possibility of new tax

rules, sooner rather than later.

Indeed, assuming no major legislative disturbance or some catastrophe,

such as a Russian-related scandal or open conflict with North Korea, some

are predicting new tax rules before the end of this year or early next year.

For American citizens living in Panama, this would mean relief from

onerous compliance requirements and potential penalties that can lead

to financial ruin.

Expected changes include a long-awaited transition from our anomalous

“worldwide” tax regime imposed upon American corporations to a

“territorial” tax system. Currently, American corporations are subject to tax

on their worldwide income, whether that income is earned in the U.S. or

abroad. Under a territorial system, only a corporation’s U.S.-source income

would be subject to U.S. tax, leaving foreign-source income generally

exempt from U.S. tax.

Significantly, the administration’s advancement on the corporate

“territorial” front simultaneously indicates the possibility of a corresponding

change in the tax treatment of American individuals living abroad. The

House Republicans’ “blueprint” for tax reform, adopting a “territorial”

approach for corporations, expressly raises the possibility of changes for

individuals. On the Senate side, Finance Committee Chairman Hatch’s

proposal calls for reconsidering the taxation of nonresident citizens.

Additionally, at a Congressional hearing held on July 18, eliminating

citizenship-based taxation was said to be on some Members’ wish list.

Currently, the U.S. taxes its citizens and green card holders on their

worldwide income, whether earned in the U.S. or abroad (“citizen-based

taxation” or “CBT”). Under this burdensome system, Americans living

abroad face a daunting array of tax rules and forms. Penalties for

incorrect reporting, usually due simply to not understanding the rules, can

be disastrous. For American individuals, residency-based taxation (“RBT”)

treatment would provide a solution to these problems in the form of

“territorial” treatment. This would mean that Americans abroad would

only be taxed on U.S.-source income. Led by groups like American

Citizens Abroad, which proposed RBT to Congress in 2016, efforts to make

this change have steadily progressed. Since the 2016 elections, these

efforts have “gone public,” with grassroots lobbying and “crowd-funding”

of the costs of revenue estimates.

The U.S. CBT system stands out among the rest of the industrialized

countries of the world—and not in a good way. The vast majority of

countries treat their citizens fairly under a RBT system. Americans living in

Panama are acutely aware of the burdens imposed upon them by the

CBT system. And recent legislation like the Foreign Account Tax

Compliance Act (FATCA) has only increased these burdens, making it

difficult for many Americans to even get bank accounts abroad, because

some foreign financial institutions refuse to do business with Americans to

avoid the hassle of FATCA’s special due diligence and reporting

requirements.

Fortunately, the RBT system fits comfortably alongside all of the

international tax reform proposals being developed. Furthermore, it

attracts bipartisan support. While differing on details, Democrats Abroad,

Republicans Overseas, Americans for Tax Reform, the Heritage

Foundation, American Citizens Abroad, a number of American Chambers

of Commerce overseas, and other business groups, all support the

approach.

The RBT system is finally within reach, and now is the best time to

aggressively advocate for it. Work on the legislation is in progress.

Revenue estimates, which hopefully will show little or no revenue loss, are

in the making. This is a change that can be made easily, possibly

achieved without a loss of tax revenue, and with careful drafting,

loopholes can be prevented. For more information, go to the American

Citizens Abroad website. www.americansabroad.org.

<< Back to news headlines >>

Laundering crackdown on insurance brokers Saturday 9th September, 2017 – Newsroom Panama

THE LICENSES of 745 Panama insurance brokers have been suspended for

failing to comply with a law governing money laundering.

The Superintendency of Insurance and Reinsurance has suspended the

licenses to sell and renew policies or collect commissions

for noncompliance with Law 23 of 2015 under which insurers and

insurance brokers are required to report transactions in cash and

suspicious transactions. To do so, they must register with the Financial

Analysis Unit (UAF online)).

Superintendent José Joaquín Riesen said that they were issued circulars

warning of the obligation to register on the UAF online portal. On May 10 ,

the regulator granted a deadline up to July 31 to comply.

Since the law came into force two years ago, some 950 licenses have

been suspended. The suspension is for a period of three months

extendable another similar period. If at that time they have not

complied), the licenses are cancelled.

Riesen said that this is a drastic measure, but noted that “we must enforce

the rules that we adopted as a country. ”

Law 23 identifies the professions that must report suspicious transactions in

financial activities. The insurance sector has the largest number of

obligated people (2,400).

In February 2016, after approving the package of measures to prevent

money laundering and the financing of terrorism, Panama left the gray list

of the Action Group which it had entered 2014 due to the weakness of its

legal framework to combat the crime.

This year, the Latin American arm of the Financial Action Task Force is

making a new evaluation, which included a visit to Panama in May to

gauge the effectiveness of the new rules.

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Resort developers step in to help St Kitts return to normalcy Sunday 10th September, 2017 – Caribbean News Now

BASSETERRE, St Kitts — Resort developer, Range Developments, and

construction company, Kier Group, have commenced work on the

Mansion sports pavilion in St Kitts that posed a safety risk for citizens and

residents in that community following the passage of Hurricane Irma.

At the request of Prime Minister Dr Timothy Harris, the two companies are

now helping to remove life threatening materials at the pavilion after

several sheets of galvanized metal from the pavilion were sent flying

across the Mansion playing field and into the yards of nearby homes as a

result of the strong winds associated with Hurricane Irma on Wednesday

morning.

Located on the east coast of St Kitts, the sports pavilion currently presents

a danger to the community, which is now in major clear-up efforts and

was also preparing itself for the approach of Jose. The complex was

renovated back in 2009 at a cost of $1.3 million, and this recent natural

disaster has meant that further renovation will now be needed.

Range Developments is currently working with the local government and

alongside the Kier Group to minimize the risk to the public and to try and

prevent any potential collateral damage.

Mohammed Asaria, vice chairman at Range Developments commented

on the emergency work being carried out: “Our efforts at present,

financial and human, are focused on assisting the government with the

demolition and repair of the Mansion Sports Complex in St Kitts. There is

some urgency in this regard given Jose’s potential impact.”

Health, safety and environment manager at Kier, Keisha Smith, said their

aim is to ensure the overall safety of residents living in the immediate

vicinity of the pavilion.

In outlining the scope of the work, Smith explained, “We’re going to use a

man lift to take the guys up so we can start to cut off the loose material

that is dangling, then after that we are going to cut off the rotted purlins.

So basically, we are just trying to make this area safe. So in case the next

hurricane arrives, we won’t have any material sailing or flying around.”

Harris expressed his gratitude to both the Kier Group and Range

Developments for readily responding to the needs of the country.

He said, “Here it is you have the private citizens coming forward to render

assistance to the country in getting it back on its feet again. It was a

distinct pleasure to have met the leadership of both the Kier and the

Range Developments to acknowledge their good corporate social

responsibility.”

Harris said this example of good public-private sector partnership

established by Range Developments and Kier can serve as a model for

the corporate community in St. Kitts and Nevis.

Range Development and Kier are developing the 126-room Park Hyatt St

Kitts Christophe Harbour luxury resort. That development accounted for

the employment of some 800 persons during the construction phase and

will see another 288 residents permanently employed when the hotel

opens on November 1, 2017.

This isn’t the first time Range Developments has helped with disaster relief.

In August 2015, the company sent over 100 tons of food and household

goods to bring much-needed relief to the Island of Dominica after

Tropical Storm Erika wiped out much of the island’s infrastructure.

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