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GraceKennedy acquires Scotia Insurance Caribbean Limited

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GraceKennedy completes the acquisition of Scotia Insurance Caribbean Limited which is a pivotal step for GraceKennedy’s strategic initiative both in its finance compartment and further broadening its presence in the Caribbean financial sector.

The new company will be branded under the name GK Life and the centers of operation of Scotia Insurance Caribbean Limited will now be operation GK Life.

Some of these businesses are within certain countries such as Barbados, Belize, the British Virgin Islands, the Cayman Islands, and the Turks & Caicos Islands.

Credit protection insurance will also be enacted in these countries under the new company.

Don Wehby, CEO of GraceKennedy was elated over the completion of the deal and is confident about future prospects of the business’s future within this area.

“This is another bold step towards the fulfillment of our strategy to grow GK’s insurance business in the Caribbean, as we continue to expand the footprint of our Financial Group in the region.

The addition of these five new territories to GK Life means that we have grown GK’s life insurance business to 12 new markets in less than two years. Congrats to our GK team who put in all the hard work to make this a reality.”

He also continued on to say that acquisitions will continue to be a vital strategy for the company’s interest. “M&A (mergers and acquisitions) continues to be a key strategic driver of growth for our Group as we move towards achieving our 2030 vision.

Our M&A Unit is in discussions regarding several M&A transactions locally and internationally, and we are looking forward to what the future has in store.”

Overall, this is an excellent acquisition for GraceKennedy and will put them in poised position to have further influence in the Caribbean insurance market.

 

 

The 10,000-hour rule fact or fiction? How long does it really take to master a skill

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I have always been fascinated by the 10,000-hour rule which states that it takes approximately 10,000 hours to master a skill.

If we should break this down in numbers, if someone spends 10 hours a week on a side skill, that would be 520 hours per year, it’s going to take close to 20 years or a little bit less to get the 10,000 hours needed to actually master a skill.

Now with that being said, there are many ways to optimize and compress that time, if you dedicate more hours a week you could get there shorter, if you dedicate 1000 hours per year minimum on that skill, you could see huge progress.

What took Jim 10,000 hours can take John 5,000 hours or less due to the intensity of focus during the sessions, background knowledge, and even intelligence.

Background knowledge is very important, Mozart started playing the piano from an early age and never stopped. He practically had done his 10,000 hours in his teens or earlier and stack another 20,000 on throughout the rest of his life.

Talent also goes a long way as well, I have seen persons who are just talented within a field and everything just seems effortless for them.

But most of us are pretty average, meaning that most of us have to work harder and longer than those who are gifted or grew up in the right environment which is important as well and shouldn’t be pushed under the rug.

Mastery is highly variable and it’s important to be self-aware as it relates to progress and how far you are on that journey.

The 10,000-hour rule is just a scorecard, mastery does not have any end. If you practice or you don’t, the world never stops, you are either getting better or getting worse and that is an important fact in life. You have to just play the long term, pick your mountain and begin the journey.

US legislators propose new law to tighten control over the internet

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A very important new bill is being circulated within the United States that will change the way how Americans use the internet and will probably affect other countries as well.

Earlier this month, a bill “S.686 Restrict Act” was proposed to allow the president to have further control over which tech companies can operate in North America.

This bill is being called the “TikTok Killer” because basically, they can now easily ban the new age social media giant because they are deemed as unsafe. One of the main reasons is privacy which is practically dead at this point and the NSA has a lot of say about that.

It is an illusion of privacy, that officials are betting on in order to probably ban TikTok. By selling to Americans that they are protecting them from the Chinese threat, could be a good sell in order to ban TikTok altogether whenever this new legislation passes.

Donald Trump tried to ban TikTok under his tenure and that never quite worked out, they tried to coerce the US arm of TikTok to convince ByteDance to sell but that didn’t work out either. Now this bill will tighten the noose around the social media giant.

Other parts of this bill state that, the federal government is basically going to keep an eye on companies operating in the United States that might pose a risk to the country.

“Specifically, the Department of Commerce must identify, deter, disrupt, prevent, prohibit, investigate, and mitigate transactions involving ICT products and services (1) in which any foreign adversary has any interest, and (2) that pose an undue or unacceptable risk to U.S. national security or the safety of U.S. persons.

Additionally, Commerce must identify and refer to the President any covered holding (e.g., stock or security) that poses an undue or unacceptable risk to U.S. national security or the security and safety of U.S. persons.

If the President determines that the holding poses such a risk, the President may compel divestment of or otherwise mitigate the risk associated with the holding.

Commerce may (1) designate any foreign government or regime as a foreign adversary upon a determination that the foreign government or regime is engaged in a long-term pattern or serious instances of conduct significantly adverse to U.S. national security or the security and safety of U.S. persons, and (2) remove such a designation. Commerce must notify Congress before making or removing a designation; these actions are subject to congressional disapproval.”

The bill applies to technology connected to a “foreign adversary” of the U.S. Only six countries fall under this designation: China (including Hong Kong and Macau), Cuba, Iran, North Korea, Russia, and Venezuela.

The Act would give the government power to scrutinize just about any technology—from internet hosting services to satellite payloads to mobile apps—as long as they are used by more than 1 million people in the U.S.

This new bill is already prompting people, especially in the tech space to want to dig behind to find the real motives behind this bill. There was even a segment that states that you go to prison for up to a year minimum and be fined anywhere between $250 – $1000,000 if you use even a VPN to access these websites that are of “foreign adversaries” and deemed unsafe.

Let’s see how this plays out, if the bill does end up being passed we are in uncharted territories where the government will have tighter control over what they want us to see and hear.

Given that this now sounds like something straight from China’s playbook, it’s interesting to see how Washington is slowly morphing into the enemy they so despise.

TikTok faces growing pressure in the US as law makers are considering what to do with it

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As the days go by TikTok business is becoming more vulnerable in the United States. Last week CEO Shou Zi Chew was at the end of serious interrogation from lawmakers, senators from various parties, and other government officials as they want answers to various questions about the social media giant.

One of the main questions has to do with basic data protection and privacy laws.

Given the fact TikTok’s parent company ByteDance has close ties to the Chinese government, they are wondering how close is TikTok with this relationship. Given the decaying relationship between Washington and Beijing at the moment, this doesn’t help TikTok’s case either to prove that they walking a straight line.

The trust between both superpowers is in such a state right now that don’t be surprised to see TikTok being banned or over-regulated out of the US market.

To speculate a bit there are probably other invisible hands at play as well, I am sure Facebook, Twitter, and others are watching TikTok closely to see what might be the end result and how they can adjust and capitalize on the company’s demise if and when that happens.

TikTok currently has over 150 million monthly users from the US which is a pretty healthy number for a social media company. TikTok seems like a social media company that is on the verge of taking over while older companies ran out of ideas and innovation.

But like all things these days, there is more to the story and Washington seems to have more than one reason to be concerned about TikTok given the upcoming standoff they have with China.

FESCO had another stellar quarter

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FESCO has yet again shown that it has solid growth potential as it yet again beats analysts’ estimates and had its best quarter ever.

For the third quarter that ended December 31, 2022, the company recorded operating profits of J$155.59 million, which reflects a 134.10% increase which equates to J$89.127 million year-over-year increase.

Operating profits have also shown an increase as well, year to date they saw a 175.45% increase. Overall, this amounts to J$431.10 million which is up from J$156.50 million a year prior.

Income loss came in at J$2.27 million compared to an income of J$7.18 million last year, which reflects a decline of J$9.45 million. At the end of that same December 2022 quarter, profits after taxes closed at J$153.32 million, reflecting a growth of 108.20% which equates to J$79.68 million year-over-year.

Year-to-date net profit was recorded to be at J$434.40 million, which has exceeded the net profit achieved for the full year ended March 31, 2022, by J$176.51 million which is about 68.45%.

Revenue growth to J$8 billion, which reflects an 82.65% or J$3.03 billion year-over-year increase. Operating expenses were reported to be at J$84.81 million for the period and J$215.55 million year-to-date.

Character.ai raised US$150 million in series A funding to build out Chatbot product

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As the AI market continues to heat up against the backdrop of ChatGPT last year, we are starting to see an array of startups entering the scene specifically in the natural language space.

ChatGPT was the inflection point that led to all of this media hype and attention to this space. Some of the hype is justified as the tools that are now being created are a bit novel and amazing.

Character.ai is one that has caught my attention recently and it’s a very interesting app. This company was founded by two ex-Google employees who have experience within the AI space.

Basically, it allows us to talk to different characters from some of them fictional and some are based on real people, for example, I spoke to Elon Musk and Nicki Minaj, I could ask conversational questions and I would get back conversational answers. It’s a very interesting technology.

Recently the company raised US$150 million from major VC funds such as a16z, SV Angel, A Capital and from investors such as Nat Friedman and Elad Gil. They will use this money to build out the platform and create more characters on top of the 1 million they already have.

It seems like since the crypto market has practically cooled, the metaverse is practically not coming out the way Zuckerberg wants, and we are seeing a lot of money being poured into the AI market. The overall market is valued at close to US$200 billion at the moment and is expected to rise.

I think given the time that we are in, it’s the moment for AI and we are going to see a lot of changes in our society because of it.

Ideas are the new oil

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“The new oil is ideas. It’s all digital. All the new fortunes are being created in ideas space.” – Naval Ravikant

As someone who has his hands on the pulse of technology, I am starting to see a wave ahead coming that will bring a lot of changes. For example, I have been looking at a set of different ideas within the technology space that I know will change the industry forever.

For example, the ability of a person to single-handedly create an application without grasping all the concepts is becoming easier with AI.

For example, to create a basic web application, back then, an individual will have to learn about backend development, frontend development, networking, databases, APIs, distributed systems, etc.

Like with most things in software development, it is a lot of grunt work and even then, your application might not come out the way you like. There is a new field of engineers that are coming up and they are called prompt engineers, these prompt engineers are basically interfacing with the artificial intelligence system and creating natural language commands for the AI system to then understand and act upon.

I have seen lots of examples on YouTube already starting to pop up:

Because of these trends, individuals can be able to bring a product to market faster than ever before albeit it might not be perfect in the beginning but it will get the idea across. This now brings me to the title of this post, “Ideas are the new oil.”

Persons with the most creative ideas and the skills to execute those ideas into a working product will be able to win over the others.

You don’t have to be a genuine expert at anything anymore especially digitally related, you have to know how to combine ideas in various industries and you will have enough customers to make a profit from.

Additionally, you can be able to create multiple products/services at the same time which could improve your rate of success. It’s all up to ideas, creativity, and execution.

New details from Barita Investments reorganization have emerge

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Barita Investments’ reorganization is going to be a major turning point for the company. A major announcement that has come out is that the company will be delisted from the stock market and will likely reappear under a new name.

The overall reorganization from the outside looking in, never really caused a lot of scuffles with Jamaica’s Central Bank (JCB) as Cornerstone United Holdings Jamaica (CUHJL) secured a non-object from JCB.

Malindo Wallace, Chief Legal Officer, and Company Secretary came out with statements that gave us more information as to how the organization will look. Basically, the reorganization will ensure that all regulated entities within the Group are held under one holding company to enable consolidated supervision under the Banking Services Act by the BOJ.

This new structure covers a broad scope, Cornerstone Trust & Merchant Bank Limited (CTMB), Barita and its subsidiary, Barita Unit Trusts Management Company Limited (BUTMC) will be held under the financial holding company (FHC). All of these subsidiaries will come under one main umbrella where Cornerstone Financial Holdings Limited (CFHL), will be holding all the assets and liabilities.

Additionally, the shares held by CUHJL in CTMB and Cornerstone USA will be transferred to CFHL. This will now see existing shareholders who currently own an equal number of shares in each of the Cornerstone entities owning one set of shares in the combined entity of CFHL.

As such, a newly formed FHC will be created as a subsidiary of CFHL. The FHC, post incorporation, will issue shares to CFHL in exchange for the transfer by CFHL to the FHC of shares it owns in Barita and CTMB. The FHC will thereafter become the direct parent of Barita and CTMB.

Additionally, the statement explains that “the Cornerstone shareholders in CFHL will continue to hold their shares in CFHL in the same proportion as they did prior to the implementation of the Scheme.”

CFHL will become the ultimate holding company for the Group. As a pre-requisite of the process, an application will be made to the Supreme Court for the convening of meetings by the Group companies that will be reorganized to allow the shareholders to consider and vote on the Scheme.”

After the process, FHC will now be listed on the stock market instead of Barita.

UBS bailed out Credit Suisse from the jaws of death

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UBS, Switzerland’s largest bank has agreed to buy rival Credit Suisse in a deal that could save the bank but for how long? Earlier this month we have seen major banks teetering on the edge of collapse, banks such as Silicon Valley Bank (SVB), Silvergate Bank, and many others have had a hard time.

It seems these issues were not localized to just the United States of America, it has also spread to Europe and other areas around the globe.

“UBS today announced the takeover of Credit Suisse,” the Swiss National Bank said in a statement Sunday. It said the rescue would “secure financial stability and protect the Swiss economy.”

The terms of the deal will lead investors out to dry as they would say. UBS is paying 3 billion Swiss francs (USD $3.25 billion) for Credit Suisse. This is 60% less than the bank was worth when the market closed on Friday. The majority shareholder pool will be wiped out, and owners of $17 billion worth of “additional tier one” bonds will get practically nothing a Swiss regular said.

To make matters worse, with a little arm-twisting from the government, a law was changed to remove the approval that shareholders had to make to see whether the deal should go forward. This deal is like someone holding a gun to your head and issuing a take it or leave it offer.

This is a huge miscalculation from Credit Suisse bank’s managers who was managing a 167-year-old generational bank. In 2022 they recorded the worst loss since the last global financial crisis which lowered investors’ confidence in the company.

If this deal never went through, other banks would’ve collapsed and we don’t even know where we would end up.

“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue,” UBS chairman Colm Kelleher told reporters.

“It is absolutely essential to the financial structure of Switzerland and … to global finance,” he told reporters.

“Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome,” Credit Suisse chairman Axel Lehmann said in a statement.

“This has been an extremely challenging time for Credit Suisse. While the team has worked tirelessly to address many significant legacy issues and execute its new strategy, we are forced to reach a solution today that provides a durable outcome.”

The emergency takeover was agreed to after days of frantic negotiations involving financial regulators in Switzerland, the United States, and the United Kingdom. UBS and Credit Suisse rank among the 30 most important banks in the global financial system, and together they have almost $1.7 trillion in assets.

Let’s see how this affects the rest of the market, this is far from over and probably just the beginning of something new unraveling somewhere.

Jamalco’s sale is in sight

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Noble Group Holding Limited (NHGL), which is an asset holding company based in Hong Kong is on the verge of offloading General Alumina Holdings assets to a third party through a call option. A deal to sell its 55% stake in (GAH) which could be seen as the umbrella company that owns the majority stake in Jamalco has been on the books for close to a year.

Since the early stages of 2022, the holding company has been seeking ways to offload the assets and focus on other interests. Interestingly the Jamaican Government which holds the rest of the 45% of the company was drumming up a process to privatize Jamalco and list it on the Jamaica Stock Exchange. This deal will definitely have an impact on such activities when the new majority of stakeholders are in charge.

The board came out with that statement which states that it was in the best interest of all the stakeholders involved in the company to practically sell it at this moment,

“Following this, the board concluded that it was in the best interests of NGHL, GAH, Jamalco, and their respective stakeholders to enter into the call option. The call option, if exercised by the third party, will result in NGHL transferring its interest in Jamalco to an owner with significant operational expertise and supply chain capabilities. The foregoing transaction will divest all the NGHL Group’s interests in GAH and Jamalco,” Noble said.

A call option is a contract that gives the buyer the right to acquire an asset at a given price by a set time period.

Looking at the situation, it is clear Jamalco has had a tough couple of years, the incident that took place in August 2021 where the Jamalco refinery, located at Halse Hall in Clarendon practically halted the entire production line there for months.

Normalcy has been brought back to the facility but on the balance books it shows that created a financial black hole for NHGL, the business has been unable to see any reasonable signs of revenue ever since.

To make matters worse, for the first three quarters of 2022, it recorded a net loss of US$97 million which is worse than the year prior when it sustained a loss of US$67 million.

As a result, it is pretty easy to see why they would want to get rid of this asset from their books and focus on other opportunities.