Wednesday, January 14, 2015 | 5:50 PM
KINGSTON, Jamaica — The US dollar on Wednesday, January 14 ended trading at J$115.14, up nine cents, according to the Bank of Jamaica’s daily foreign exchange trading summary.
Meanwhile, the Canadian dollar closed at J$97.78, up from J$96.12 while the British pound sterling ended trading at J$174.87 up from J$173.63.
View the original article here
Wednesday, January 21, 2015 | 4:51 PM
KINGSTON, Jamaica — The US dollar on Wednesday, January 21 ended trading at J$115.45, up six cents, according to the Bank of Jamaica’s daily foreign exchange trading summary.
Meanwhile, the Canadian dollar closed at J$96.39, up from J$95.98 while the British pound sterling ended trading at J$174.46 up from J$173.76.
Like our Facebook page https://www.facebook.com/jamaicaobserver
Follow us on Twitter https://twitter.com/JamaicaObserver
View the original article here
WASHINGTON, United States (AP) — The victims vary: fast-food colossus McDonald’s, technology giant Oracle, medical device maker Cooper Cos -the culprit’s the same: a surging US dollar.
A symbol of American economic might, the rising dollar is denting the earnings of US companies that operate overseas. The damage started showing up in results for the July-September period, and the picture will likely get uglier as companies report earnings for the final three months of 2014.
“It’s clearly a drag on corporate profits,” says David Kelly, chief market strategist at JP Morgan Funds.
A few months ago, Kelly notes, analysts had expected a double-digit annual rise in corporate profits in the fourth quarter. Now, in part because the dollar is carving into earnings, they’re forecasting just 4.6 per cent overall earnings growth for companies in the Standard & Poor’s 500 index.
A prolonged drop in profits risks rattling investors and pressuring stocks.
Among major industries, technology companies and producers of energy and raw materials generally derive the highest percentage of revenue from abroad, according to S&P Dow Jones Indices.
Since June 30, the dollar has jumped 16 per cent against the Japanese yen. Against the euro, it’s up 18 per cent. Against the Brazilian real, nearly 20 per cent.
Investors are buying dollars and driving it higher largely because the American economy is humming while other economies are sputtering. In Europe and Japan, growth has flat-lined. In China, it’s slowed.
Investors are also seizing on higher interest rates in the United States: The super-safe 10-year US Treasury note yields 1.74 per cent, miserly by historical standards but richer than the 0.46 yield on 10-year German government bonds or the 1.59 per cent on 10-year Spanish bonds.
A higher-valued dollar delivers a double blow to American exporters: It makes US products costlier and therefore less competitive in foreign countries. And it means the revenue that US companies collect in, say, euros is worth fewer dollars once they bring the money home. In that way, the strong dollar shrinks profits, too.
Across the S&P 500 index, nearly half of total revenue comes from outside the United States.
American companies are hardly alone in suffering from currency swings. Swiss companies are hurting because their currency, the franc, is much stronger than the euro. Their plight worsened on Thursday, when the Swiss central bank suddenly abandoned its effort to cap the value of the franc against the euro. The news sent the franc soaring against the euro. The Swiss National Bank abandoned the cap because it had proved too costly, requiring ever-larger purchases of euros.
Consider McDonald’s, which has locations in more than 100 countries. Revenue fell 6 per cent in November from a year earlier at its company-owned and franchise restaurants, and the drop was due largely to the rising dollar.
If currency values had remained flat, revenue would have inched up 0.1 per cent. McDonald’s warned last month that the higher dollar could shave up to 9 cents off its fourth-quarter earnings per share, which analysts expect to be US$1.23.
At Oracle, the stronger dollar was the difference between profit growth and decline in its last fiscal quarter. For the three months through November 30, Oracle’s net income fell 2 per cent. If the dollar had stayed flat, net income would have risen 3 per cent, Oracle said.
Companies can enter into hedging arrangements that act like insurance policies against the rising dollar.
“But hedging is never perfect,” says Mark Luschini, chief investment strategist at Janney Montgomery Scott. “They may be behind the curve,” given the dollar’s propulsive rise.
For foreign companies that do business in the United States, of course, the strong dollar has just the opposite effect: It helps.
Japanese auto giant Toyota in November raised its profit projection for the year through March 2015 by 220 billion yen (US$1.8 billion) to 2 trillion yen (US$16.7 billion), in part because the stronger dollar would boost earnings.
J.P. Morgan’s Kelly says the higher dollar could help the ailing economies of Europe and Japan.
“It may help stabilise the global economy,” Kelly says.
View the original article here
Wednesday, January 14, 2015 | 5:50 PM
KINGSTON, Jamaica — The US dollar on Wednesday, January 14 ended trading at J$115.14, up nine cents, according to the Bank of Jamaica’s daily foreign exchange trading summary.
Meanwhile, the Canadian dollar closed at J$97.78, up from J$96.12 while the British pound sterling ended trading at J$174.87 up from J$173.63.
Like our Facebook page https://www.facebook.com/jamaicaobserver
Follow us on Twitter https://twitter.com/JamaicaObserver
View the original article here
Friday, January 02, 2015 | 5:17 PM
KINGSTON, Jamaica — The US dollar on Friday, January ended trading at J$114.68, up two cents, according to the Bank of Jamaica’s daily foreign exchange trading summary.
Meanwhile, the Canadian dollar closed at J$97.65, down from J$97.70 while the British pound sterling ended trading at J$176.31 down from J$177.68.
View the original article here
Tuesday, January 06, 2015 | 5:36 PM
KINGSTON, Jamaica — The US dollar on Tuesday, January 6 ended trading at J$114.72, up eight cents, according to the Bank of Jamaica’s daily foreign exchange trading summary.
Meanwhile, the Canadian dollar closed at J$96.70, down from J$96.82 while the British pound sterling ended trading at J$173.61 down from J$174.90.
Like our Facebook page https://www.facebook.com/jamaicaobserver
Follow us on Twitter https://twitter.com/JamaicaObserver
View the original article here
Wednesday, December 17, 2014 | 5:36 PM
KINGSTON, Jamaica — The US dollar on Wednesday, December 17 ended trading at J$114.48, up seven cents, according to the Bank of Jamaica’s daily foreign exchange trading summary.
Meanwhile, the Canadian dollar closed at J$97.90, down from J$98.82 while the British pound sterling ended trading at J$180.05 up from J$179.17.
Like our Facebook page https://www.facebook.com/jamaicaobserver
Follow us on Twitter https://twitter.com/JamaicaObserver
View the original article here
Monday, December 15, 2014 | 7:33 PM
KINGSTON, Jamaica — Generation 2000 (G2K) has again expressed concern about the effects of the sliding Jamaican dollar on the poor and most vulnerable, this time during the current Christmas season.
G2K, the young professional affiliate of the opposition Jamaica Labour Party (JLP), in a release today noted that since December 1 the dollar has lost over 60 cents in value against its US counterpart, moving from $113.58 cents to $114.12 cents at the start of trading Monday morning.
“On Friday the dollar traded as high as $118 dollars against the US dollar,” G2K pointed out.
“It appears as if the Minister of Finance just does not understand, or is clearly insensitive to the effect that that the rapid devaluation is having on the pockets of Jamaican,” the G2K release said.
“We are all quite aware that there is a direct relationship between the devaluation of the Jamaican dollar and the rise in basic food prices. Therefore, if urgent steps aren’t taken to stem this slide, we are all looking at basic food items which have increased by more than 30 percent since December 2011 are going to see another significant rise during this Christmas.”
“The Minister continues to fail to realize that his job description requires him to do far more than just meet IMF targets. His response cannot be to simply curtail Government capital expenditure to meet the primary surplus demand. The minister is slowly stifling our economy and the hopes and dreams of every Jamaican,” G2K stated.
It said that enough is not being done to compliment IMF policies, with reforms that would soften the effects of austerity measures and growth of small businesses. And that, contrary to the concept of creating incentives to start and develop businesses, new taxes have been forced upon businesses across the board.
Like our Facebook page https://www.facebook.com/jamaicaobserver
Follow us on Twitter https://twitter.com/JamaicaObserver
View the original article here
The Government of Jamaica is reporting a J$6 billion shortfall in revenue at the end of August. This was due to lower than expected revenues and grants.
Tax revenues under-performed, mainly as corporate income tax and General Consumption Tax (GCT) intake were below target.
The issue of lower than projected corporate income tax collection has been raised by Richard Byles, Chairman of the Economic Programme Oversight Committee (EPOC). Mr. Byles said he would seek answers from Tax Administration.
Lower than expected GCT suggests that the expected growth in consumers spending power continues to lag behind the pick-up in economic activity.
With less money available, the Government has cut back spending on programmes, wages and salaries, as well as capital programmes, while realising savings from lower interest rates on the debt.
View the original article here
The Government of Jamaica is reporting a J$6 billion shortfall in revenue at the end of August. This was due to lower than expected revenues and grants.
Tax revenues under-performed, mainly as corporate income tax and General Consumption Tax (GCT) intake were below target.
The issue of lower than projected corporate income tax collection has been raised by Richard Byles, Chairman of the Economic Programme Oversight Committee (EPOC). Mr. Byles said he would seek answers from Tax Administration.
Lower than expected GCT suggests that the expected growth in consumers spending power continues to lag behind the pick-up in economic activity.
With less money available, the Government has cut back spending on programmes, wages and salaries, as well as capital programmes, while realising savings from lower interest rates on the debt.
View the original article here
BRIDGETOWN, Barbados, July 23, 2014, CMC - With Barbados’ foreign reserves standing below the 2013 level, International credit rating agency, Moody’s has warned that strain could be put on the dollar.
“Any further erosion in reserves would likely put further pressure on Barbados’ currency, which is pegged to the US dollar,” Moody’s stated in a July 21 report.
The agency issued its analysis based on the Central Bank of Barbados’ fiscal first quarter report issued on July 15.
The analysis is titled, ‘Barbados’ Mounting Fiscal Challenges and Persistent Economic Weakness Are Credit Negative’.
Click here to receive free news bulletins via email from Caribbean360. (View sample)
“After recovering slightly during the previous three quarters, foreign exchange reserves have resumed their decline, and as of 30 June remained around 25 per cent below early-2013 levels,” Moody’s noted. “This decline occurred despite a slight recovery in long-term private financial inflows that traditionally help support the central bank’s international reserves.”
In its July report the Central Bank set Government’s financing needs for the remaining three quarters of the current fiscal year at BDS$300 million, to be financed by commercial banks, NIS, and other non-bank organisations.
But stating that the fiscal first quarter, ended in June, was an important test for the government’s ability to deliver its deficit reduction program introduced in August 2013, Moody’s raised the level of Government’s estimated financial needs.
Any further erosion in reserves would likely put further pressure on Barbados’ currency, which is pegged to the US dollar
“Given the larger budget gap in the last fiscal year, we now estimate that the authorities need a total adjustment of at least BD$450 million (5.2 per cent of projected 2014 GDP) to reach their deficit objective in the current fiscal year,” Moody’s stated.
Moody’s stated that although it expects Barbados’ fiscal consolidation to accelerate over the next three quarters, “it will remain constrained by revenue underperformance, difficulty reining in transfers and subsidies and rising interest costs.
“Consequently, we are adjusting our 2014 budget deficit projection to 8.5 per cent of GDP from 8.0 per cent, about two percentage points above the government’s target, with risks firmly tilted to the downside.”
View the original article here
KINGSTON, Jamaica, Friday July 11, 2014, CMC – The decision by the Bank of Jamaica (BoJ) to intervene in the foreign currency market in a bid to stabilize the local currency has been praised by financial experts.
The BoJ stepped in to stabilise the local currency, which on Thursday traded at J$112.71 to one US dollar. But there are concerns as to whether or not the BoJ has enough reserves to maintain the intervention.
Assistant Trading and Treasury Manager at Jamaica Market Money Brokers (JMMB), Kwame Brooks, said the intervention is possible for the immediate future.
“I think they will maintain a presence in the market to ensure orderly movement going forward. Usually the Central Bank doesn’t indicate how many days of intervention… it’s on a need to be basis.
Click here to receive free news bulletins via email from Caribbean360. (View sample)
“What they will do is be vigilant and to keep a close eye to ensure that the movement is orderly,” he said, adding that the move by the BoJ to stabilize the dollar, will benefit from the assistance of major foreign exchange dealers.
President of the Private Sector Organisation of Jamaica (PSOJ) Chris Zacca is urging Jamaicans to focus on working efficiently to improve growth in the country instead of continuously talking about the devaluation of the Jamaican dollar.
Zacca addressing the Jamaica Observer Monday Exchange forum, acknowledged that the sliding dollar is causing real pain. But he believes that the emphasis being placed on the currency’s value is distracting businesses from focusing on production.
“The dollar is a market-determined rate, anyway. Let’s stop talking that it is going to be that much at the end of the year and let us put our heads down and do what we have to do to run the country and our businesses… Let’s stop talking down the dollar,” he told the forum.
Former finance minister Audley Shaw said the intervention of the BoJ, is in line with the policy of stability “promoted and successfully applied by the opposition Jamaica Labour Party (JLP).
“We have been warning the government for months that devaluation is hurting business, hurting people and hurting Jamaica. We were criticized for our positions, but as the higher prices and speculation have become chronic along with undeniable reductions in exports, it seems the BoJ has finally woken up,” Shaw said in statement.
But even as he welcomed the initiative, Shaw, the JLP’s spokesman on Finance, declared that it did not go far enough.
“Investors do not know the direction of the government so businesses cannot plan. The Government could decide next week to start devaluation again and this possibility does not bring confidence to the market and to the business sector,” he said.
He has called on the government to “state its policy direction clearly, and its policy must create a stable and predictable environment.”
Shaw said that if Jamaica is to benefit from the current IMF (International Monetary Fund) agreement, “the government must also come up with a proper growth and development policy that is bankable and saleable,” one that includes a robust growth strategy”.
View the original article here
The man at the centre of the J$1 billion fraud racket was remanded when he appeared before the Corporate Area Criminal Court on Monday.
He is Christopher Moore an employee of Tax Administration Jamaica (TAJ) and a resident of Portmore in St. Catherine.
Moore who is scheduled answer several charges including fraud and breaches of the Cyber Crime Act, will return to court on July 21.
It’s alleged that over an unspecified period, Moore, an Information Technology (IT) expert employed to the East Street branch of the TAJ, manipulated the system and reduced tax assessments of companies and individuals.
After the TAJ assessed taxpayers, Moore would enter the computer system, reduce the tax levied resulting in the Government losing more than one billion dollars.
It’s also alleged that he collected fees.
The Revenue Protection Division in the Ministry of Finance which led an operation on June 20, seized documents and computers at Moore’s house with the names of individuals and companies.
The year long operation, which also involved the Major Organised Crime and Anti-Corruption Taskforce, stretched across the Corporate Area and St. Catherine.
View the original article here
ST. JOHN’S, Antigua, Friday June 27, 2014, CMC – Law enforcement authorities say they have intercepted a vessel originating from Jamaica with more than 2,300 pounds of marijuana worth more than EC$30 million (One EC dollar = US$0.37 cents).
A statement from the Office of National Drug and Money Laundering Control Policy (ONDCP) said it participated in a joint operation involving the Antigua and Barbuda Defence Force (Coast Guard) in intercepting the 65ft vessel on Wednesday.
It said the vessel, which it did not name originated from Jamaica and “was being operated by six Jamaican men whose ages range from 38 years old to 67 years old.
Click here to receive free news bulletins via email from Caribbean360. (View sample)
“The Captain and his crew are assisting the officers with their investigations,” the statement said, noting that the drugs had a street value of over EC$37 million.
The ONDCP said that the seizure is the third successful interdiction during this week and that law enforcement authorities have embarked on a programme specifically targeting young people about the consequences of illegal drugs.
View the original article here
NCB Capital Markets plans to launch two US-dollar unit trust products within the next three months.
“We are excited at the prospect of offering US dollar unit trust funds for our customers seeking foreign currency investment alternatives,” said NCB Capital Markets CEO Steven Gooden. “We plan to launch this product before the end of our current financial year in September.”
The newest entrant to the unit trust market has already become the third largest player in terms of portfolio size.
Sagicor Investments is the market leader followed by Scotia Investments.
The other market players are Jamaica Money Market Brokers and Barita Investments.
“We’re not yet at the top, but the growth to $5 billion in assets under management within the six months following the product’s introduction is a noteworthy achievement and a testament to the value that our customers have found in the new offering,” said Gooden. “NCB Cap Funds, our Unit Trust product was launched in order to expand the investment options available to our clients.
“The unit trust offers clients better rates of returns and allows them to pursue a mix of investment strategies based on their individual risk appetites and personal investment goals.”
Yields ranging from 7.8 to 8.1 per cent on its fixed income and equity-based unit trust funds placed NCB Capital Markets’ estimated yearly income above the others. Barita’s Income Portfolio product came the closest at 7.76 per cent.
However, NCB Capital Markets unit trust products fell in the middle of the field in terms of growth for the year to June 12, 2014 — ranging from 2.9 to four per cent. Sagicor’s Sigma Global Equity fund grew by 10.7 per cent during the first five and a half months of 2014.
Currently, NCB Capital Markets invest in money market instruments, medium to long-term corporate and government debt instruments as well as local and regional stocks.
Gooden remains confident that the funds will continue to do well, based on the company’s track record of strong financial performance and providing customers with value enhancing investment options.
View the original article here
Sunday, June 22, 2014 | 10:09 AM
BRIDGETOWN, Barbados (CMC) — There is no immediate danger of the currency being pushed below its present value although other economic indicators are sliding, says Clyde Mascoll, the opposition Barbados Labour Party’s (BLP) spokesman on finance.
“In spite of the fact that we were having a fiscal crisis problem, and we continue to have one; in spite of the fact that our economy has not been growing for the last six years; in spite of the fact unemployment has been rising, the one economic indicator in Barbados that was positive for the last six years was the adequacy of the foreign reserves at the Central Bank,” Mascoll said recently.
He added: “If we can get the fundamentals right and do other things and get the policy prescription right, then we should not even be using the word [devaluation] in Barbados”.
These comments from Mascoll, came at the same day other economic pundits were pointing to increased difficulty in obtaining foreign exchange from the Central Bank and a continued slide of the economy behind those of the CARICOM region.
Disputing a government minister’s claim that there is no problem for individuals and companies obtaining money for overseas transactions, immediate past president of the Institute of Chartered Accountants of Barbados, David Simpson, claimed that a squeeze on foreign currency access is on.
“I’ve heard some denial from one Cabinet minister this week, but I have experienced it, and one or two of my clients have as well,” Simpson said.
While speculating that the current difficulty in obtaining foreign exchange might be a case of the Central Bank strictly applying an old Barbados policy on release of such funds, Simpson insisted that the restrictions are now in place regardless of the reason.
“I can tell you it is the case, which suggests there is still some concern in terms of the foreign exchange reserves,” he added.
With no conventional natural resources in significant quantity, Barbados depends on earnings gained through licensing offshore companies, tourism, and a small manufacturing export industry for its foreign currency.
The Central Bank reported that as of March, 2014, the island’s foreign reserves stood at BDS$1.1 billion (Bds $1.00 = US$0.50) that covers 16 weeks of imports.
Also on that day, leading investment banker, Jason Julien, spoke of a need to ring ‘alarm bells’ if there was not economic improvement.
He spoke of the island’s weak economic growth, high debt levels, weak foreign exchange earnings, and its susceptibility to external shocks.
“When we look at the Barbados economy compared to the rest of the region as a whole, the reality is we are lagging behind at this point…The average growth rate expected for Barbados is 0.6 per cent, and when you look at the Caribbean as a whole, it exceeds that,” said Julien.
Like our Facebook page https://www.facebook.com/jamaicaobserver
Follow us on Twitter https://twitter.com/JamaicaObserver
View the original article here
Thursday, January 23, 2014 | 5:38 PM
KINGSTON, Jamaica — The US dollar traded at an average J$107.19 on Thursday, January 23, 2014, according to the Bank of Jamaica’s daily foreign exchange trading summary.
Trading closed at an average J$107.20 to one $US on Wednesday, January 22.
Meanwhile, the Canadian dollar traded for J$97.09 and the British pound ended trading at J$177.61 on Wednesday.
View the original article here
News
Tuesday, December 31, 2013 | 5:54 PMHOUSE RULES
1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.
2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
4. Please do not write in block capitals since this makes your comment hard to read.
5. Please don’t use the comments to advertise. However, our advertising department can be more than accommodating if emailed:mailto:advertising@jamaicaobserver.com.
6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
7. Lastly, read our Terms and Conditions and Privacy Policy
comments powered byView the original article here
Latest News
Tuesday, December 31, 2013 | 5:54 PMHOUSE RULES
1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.
2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
4. Please do not write in block capitals since this makes your comment hard to read.
5. Please don’t use the comments to advertise. However, our advertising department can be more than accommodating if emailed:mailto:advertising@jamaicaobserver.com.
6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
7. Lastly, read our Terms and Conditions and Privacy Policy
comments powered byView the original article here
News
Thursday, September 12, 2013 | 5:06 PMHOUSE RULES
1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.
2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
4. Please do not write in block capitals since this makes your comment hard to read.
5. Please don’t use the comments to advertise. However, our advertising department can be more than accommodating if emailed:mailto:advertising@jamaicaobserver.com.
6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
7. Lastly, read our Terms and Conditions and Privacy Policy
comments powered byView the original article here