Tag Archives: caribbean

Uncategorized

The end of the world as we know it?

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And no, I’m not talking about Armageddon as induced by the Large Hadron Collider or Sarah Palin becoming president of the United States of America.

I’m talking about the incredible series of events unfolding as I write this, events that have shaken Wall Street, the City of London and the global financial system to its very core.

Unless you’re intimately involved in finance (or regularly read the Financial Times or the Wall Street Journal), your knowledge of what’s been happening in the financial markets over the past year or so may be limited to certain mainstream media friendly buzzwords – “subprime crisis” “credit crunch” “possible US recession” “probable US recession” “dead certain US recession”. And so on, and so forth.

You might think – if you live in the Caribbean, for instance – that what’s happening “out there” might not affect you.

You would be completely wrong.

As I write this, Lehman Brothers is hurtling toward a bankruptcy filing and Merrill Lynch is in advanced merger discussions with Bank of America. AIG – one of the world’s largest insurers, and the parent company of T&T’s ALGICO – is finalising plans to sell assets in order to raise enough money to fend off a crisis of its own.

These names may mean nothing to you, but the significance of these events is inescapable. Wherever you are, whatever you’re doing, you will be affected by the billions of dollars of losses being incurred by the pillars of the world’s financial markets; by the reshaping of the global financial system; by the subsequent job losses; by the inevitable slowdown in global growth.

Thousands of people have already lost their jobs, and thousands more will wake up tomorrow to find that their jobs (and their companies) have ceased to exist.

And those numbers do not at all reflect the job losses across industries like airlines, tourism, manufacturing and construction.

Stop, think, (re)assess. Think more carefully about the way you spend, about whether your lifestyle would be sustainable if the bank decided to raise the interest rate on your credit cards or loans (because it will happen, and sooner than you think).

No one knows what’s going to happen next – not the people on Wall Street or in the City of London or in Hong Kong or Sydney or Tokyo; not the governments; not the the Central Banks; not the regulators; and certainly not the media (this reporter included).

But two things are certain: this will not be over quickly, and you will not enjoy this.

And I, for one, do not feel fine.


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Rights & Freedoms, Uncategorized

Maybe I am my hair

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(Pace India.Arie)

I started growing my locs five years ago. Since then, I’ve fielded a host of questions from friendsfamilyclassmatescolleaguesrandomstrangers, including but not limited to:

– Do you wash it?

– How do you wash it?

– Can I touch it?

– Does it itch?

– Is it real?

– Does it hurt?

– Don’t you miss your real hair?

– Are you a Rasta?

– Why did you do it?

This last question, now as then, is the hardest to answer. My responses have varied, depending on the questioner, the context of our relationship and how I felt that day. I lacked a substantive, definite, “because.” I didn’t have “the answer” that the questioner – and I – was looking for.

Then I read this response to a column by Steven “Freakanomics” Levitt on the economic disadvantages of “sounding black” and of having a “black” or “Asian” name:

But if you’re intelligent and hard working, shouldn’t your resume get you in the door no matter what name is at the top? No, you’re saying. The world doesn’t work like that. But couldn’t it be said that the more HR people who encounter intelligent, hardworking people with names like Shaniqua Keisha Jones, the more people will stop pre-judging people with names like Shaniqua Keisha Jones.

Ditto “sounding black,” having a southern accent or a clearly Asian name. Deleting these things could be construed as self-hate, denial or disingenuousness. Is it better to be sneaky, calculating and take a “by any means necessary” approach in the workforce? Is “sounding black” something people need to apologize for? Do the people who “sound black” need to “invest in” the ability to sound more white? How best to bust a stereotype? By playing into it? Or defying it?

My hair is about defying stereotypes. To plagiarize myself,

I’m a twenty-something overachieving chick with dreadlocks and a predilection for wearing Converse to work

So there it is. I am my hair. I am challenging, I am defiant, I do not apologize.

And the next time some Wall Street multimillionaire or Oxbridge-educated middle-aged perpetually entitled white British editor encounters a twenty-something <insertracehere> woman from the Caribbean, or someone with locs, he will pause.

He will pause because he will remember someone else who was more than the stereotype.

Someone who was more than just her hair, or her ancestry, or her age, or her gender, or her accent, or her taste in shoes.

Media, Trinidad & Tobago

T&T needs better reporters

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There are many, many things about Trinbagonian media in general, and our newspapers in particular, that make me want to pull my hair out.

I am continually bemused by our haphazard approach to errors and corrections, for instance.

But it is our apparent lack of reporters who actually understand business, finance, law and (the non bacchanalist aspects of) politics that is most worrying.

These are complex, multi-layered, specialist subjects, and to successfully cover them requires, in no particular order:

– Knowledge of/training in the subject areas, either academic or professional
– A commitment to keeping abreast of changes and developments in the field
– A significant amount of research and reporting, often on a daily basis
– A solid and informed network of sources and contacts

And even more so than in other areas of journalism, those charged with covering these beats must be able to explain often complicated concepts in a manner that can be grasped by non-specialists.

From my obsessive perusal of the major dailies, I’d say all of the above are lacking – or at least not evident.

There are exceptions: Camini Marajh of the Trinidad Express is an excellent business reporter.

Ms Marajh broke the story of RBC’s $2bn offer for RBTT, scooping the international news media who took days to catch up

Her coverage of the deal should be framed and used as a model by editors and reporters in other newsrooms:

In what is likely to be the biggest takeover deal in the Caribbean in recent times, Royal Bank of Canada (RBC) is getting ready to buy out local banking giant, RBTT, in an acquisition priced at well over US$2 billion.

Sources report that an acquisition agreement is close to sign off by the Peter July-led Board of RBTT Directors.

Perfect. She leads on the significance and size of the deal, and immediately backs it up with reference to her sources.

She continues:

The RBC offer is said to contain a mix of cash and stock in a buyout that sources say has already secured the approval of key shareholders, among them the National Insurance Board (NIB) which has a 22 per cent interest, Guardian Holdings Ltd, a 14 per cent stakeholder and business tycoons Arthur Lok Jack, Richard Azar and Imtiaz Ahamad, who are listed among the largest individual stakeholders.

A crucial bit of information, although she could have explained why this important: if RBTT’s major shareholders were opposed to the deal, it would be unlikely to succeed.

And while the Peter July board has refused to say anything more than the bank is having “strategic discussions with other parties”, the Sunday Express understands that RBC, the latest in a series of Canadian suitors to knock on RBTT’s door, is the favoured partner for a takeover deal.

Both have financial incentives to see the deal through, according to financial sources. RBC, Canada’s largest bank is flush with acquisition dollars, assets of Can$563 billion and a market capitalisation of Can$69 billion.

Wonderful. Wonderful. And it gets better:

It is also trailing behind rivals Bank of Nova Scotia and First Caribbean International Bank (FCIB),a subsidiary of Canadian bank, CIBC in its Caribbean operations.

RBTT, Trinidad’s largest bank with assets of US$7 billion, has stumbled in recent years on issues related to management, flat earnings and growth limitation.

The RBC offer, comprising 60 per cent cash and 40 per cent RBC stock, if approved by shareholders, would give RBTT stockholders a much-needed boost with an option of cash and RBC shares – Can$55.26 at the close of trade on the Toronto Stock Exchange on Friday.

These paragraphs establish why the deal would be beneficial to both parties, are neatly hedged (“if approved by shareholders”) and give relevant financial details.

Still to be worked out, however, is the price of RBC shares which are to be listed on the local Stock Exchange under the depository receipt system used on the Nasdaq and other major Exchanges where a specified number of shares of foreign companies are issued and traded.

Sources say the listing of a big international bank like RBC on the TT Stock Exchange would be a major coup for this country and could well catapult Trinidad centre stage and a step closer to the Prime Minister’s dream of making this country the financial capital of the Caribbean.

When I got to this point in the story, I was tempted to applaud. Ms Marajh clearly had spectacular sources on this one, because details like that are gold dust. She explained, clearly and concisely, the concept of depositary receipts and gave still more context on why the deal would be important for T&T.

Financial analysts say if 20 per cent of the cash or $TT1.6 billion from the RBTT sale goes back into the local market, it could help the recovery process of the stock market which has been in the doldrums in recent time.

Speculation of a takeover has seen RBTT stock climb from the start of September by $3 closing at the end of trade on Friday at $34.01.

GHL, a substantial shareholder in RBTT, has also benefitted from the market speculation, closing at $25 on Friday after starting September at $20.02.

This story had everything – the interested players, the context of the negotiations, and crucially for an acquisition story, all the important numbers given in context.

But this story was exceptional. Too often, our media fail to get the basics, the fundamentals right.

More on that soon.