Daily Archives: August 1, 2017

I retired at 37 as a self-made millionaire here’s the one-sentence secret to financial independence – INSIDER

Posted: August 1, 2017 at 6:40 pm

Jul. 31, 2017, 9:05 AM

14,802

No one gets rich from a savings account. Courtesy of Chris Reining I'm playing Jenga because that's what my nephews always want to play when I'm around. But then we move on to Xbox because kids get bored quickly, so we have to change from one thing to another.

So why when we grow up do we have to play the same game over and over again for the rest of our lives? I mean, as soon as you discover what you're good at you have to do that for your career.

And then because you can earn more money in that field than any other field you're forced to do it forever. You never get to say, "I'm bored and I hate my job and I want to play something else."

You might know how this feels because 70% of people hate their job and The 4-Hour Workweek spent more than four years on The New York Times bestseller list.

Most people tell themselves, "Well, that's just the way life is."

I know, because that's what I used to say until I discovered financial independence.

And I'm going to tell you everything you need to know about how to become financially independent in just one sentence. Are you ready?

Spend less than you earn and invest the difference.

There. I've written over 100,000 words about becoming financially independent that can be distilled down into those nine words.

And if you live your life by those nine words you'll eventually become financially independent maybe even retire early if you want to but more importantly you can go play something else.

Now, you might be thinking it's easy for me to say spend less, because after talking with thousands of my readers they all tell me it's hard. Why?

Spending less means giving things up, and we hate giving things up.

I was in Brooklyn recently and met this girl who started telling me about her money problems. How she was forced to cut everything to the bone.

So I'm imagining her sneaking into diners to steal leftover food off people's plates, but then I find out she owns one of those million dollar brownstones and has a housekeeper and a chauffeur and I'm thinking, "How is this to the bone?"

That's what the endowment effect is. Behavioral economists use this term to describe how we place more value on what we have than on what we don't have.

Like in one study people were given a coffee mug and when they were offered the chance to sell it or trade it for something of equal value they wanted double what they were willing to pay for the mug.

We hate giving things up.

But if you're willing to give things up you can get what you want. Take this comment from a reader:

"If you are willing to change your circumstances it is quite possible to quit. I did that this year, left a job I had been at for 13 years and was unfulfilled by, although we have 2 young children, the mortgage, a dog etc, all the regular attachments.

We downsized our house by half, weeded out many possessions, and moved to a city 15 minutes away with more job options where we could live with one vehicle. Now I am self-employed and taking a course on the side to expand my options, we are 3 years away from mortgage free instead of 15 years, I see my kids much more and everyone is happier, none of us were negatively affected by cutting less important things out of our lives.

This will not be the route for everyone, but it really is about what you are willing to do or not do, not so much about the attachments you have."

Most people hate reading stuff like this. Why? Because we want to believe everything in life is easy and just happens magically.

When I made the decision to become financially independent I'd ask myself every day, "What am I doing today to get there? What steps am I taking?"

It took years of hard work and discipline to spend less than I earned before I realized you can't cut your spending to nothing and that you need to earn more. And earning more took years of hard work and discipline, too.

Of course, you're investing all this money because no one gets rich from a savings account.

This is what works.

Yet, people still write me saying they're going to "get rich quick" by trading binary options or investing in cryptocurrency or whatever. Sometimes I'll follow up with them a year later to see how it's going (they never respond).

And that's why I always appreciate the people who are honest about their success, because if I want what they have then I know the steps I need to take to get there.

Anyways, this was going to be about my first year of early retirement and I just realized I didn't tell you anything about it. So real quick, it's changed my life.

Sure, sometimes you sleep in until 11 a.m. on a Tuesday knowing your money is working for you. But what I'm learning is it's really about having control of your time.

Mark Cuban said time is your most valuable asset:

"You can't buy it, you can't find it, you can't store it, you can't trade it."

What he's saying is if you're not doing what you want to be doing with your time you're wasting it, because you can't get any more of it.

When you become financially independent you get your time back because now you control it, and that's what financial independence is really about.

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These blue-chips could help you to achieve financial independence – AOL UK

Posted: at 6:40 pm

Finding companies with impressive growth outlooks is not particularly difficult at the present time. After all, the prospects for the global economy are relatively upbeat. However, unearthing companies which offer high growth prospects at a reasonable price may prove much more challenging. In many cases, the market has already priced in their upbeat outlooks, and their margins of safety may be somewhat limited.

However, these two companies could offer surprisingly attractive risk/reward ratios due to their low valuations and high chances for growth.

Tuesday's interim results from speciality chemicals company Elementis (LSE: ELM) showed it is making encouraging progress. For example, it was able to increase operating profit across all three of its main segments. Its sales growth of 24% was impressive and helped to boost adjusted operating profit by 26% versus the same period from the prior year. Furthermore, its outlook is unchanged and it remains on target to grow its operating profit across all three of its main business segments this year.

Elementis benefitted from short-term favourable conditions in Surfactants and the inclusion of the acquired SummitReheis business. Its Specialty Products division recorded adjusted operating profit growth of 18%, with strong growth in Personal Care and Energy, while Coatings saw steady revenue. The company's Chromium division saw revenue move 18% higher, with the US resilient and there being stronger demand in the rest of the world. Surfactants were boosted by strong pricing conditions, although they are not expected to be sustained in the second half of the year. A sale of that business is now being pursued.

Looking ahead, Elementis is expected to report a rise in its bottom line of 23% in the current year, followed by further growth of 13% next year. Despite this strong outlook, it trades on a price-to-earnings growth (PEG) ratio of only 1.4. This suggests that it offers a wide margin of safety following share price growth of 8% since the start of the year and could be worth buying now for the long term.

Also offering an upbeat investment outlook in the same sector is Johnson Matthey(LSE: JMAT). The speciality chemicals company is forecast to grow its earnings by 9% in the next financial year. Although lower than the forecast growth rate of Elementis, it has the same PEG ratio of 1.4. This suggests the sector may be somewhat undervalued by the market at the present time, and there could be growth opportunities for shrewd investors.

As well as growth potential, Johnson Matthey also has income appeal. It currently yields 2.9% from a dividend which is covered 2.7 times by profit. This suggests that dividends could increase at a significantly faster pace than profit over the medium term, without hurting the financial strength of the business. With inflation moving higher, this could increase the investment potential of the stock and make it more popular in future. The end result may be a higher share price.

As talks between the EU and UK continue, fear and indecision could hurt share prices in the coming months. That's why the analysts at The Motley Fool have written a free and without obligation guide called Brexit: Your 5-Step Investor's Survival Guide.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended Elementis. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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Is financial independence a myth? – AOL UK

Posted: at 6:40 pm

Financial independence is a goal to which many people aspire. The idea that it is possible to be independent of the wider economy and for a portfolio to deliver rising returns no matter how the macro outlook appears is clearly highly attractive. After all, to generate a high and consistent return is the fundamental goal of most investors.

See also: How much student debt will ever be repaid?

See also: What to do if friends or family don't pay you back

However, is this a realistic aim? Or, is it impossible for an investor to generate high returns without being reliant on one or more factors?

By its very nature, being financially independent means an individual's financial affairs are not dependent upon anything or anyone else. For example, someone seeking financial independence may no longer rely on a salary from an employer, or financial aid from a relative or family member. They may have a portfolio of assets which they believe makes them financially independent, thereby reducing their overall risk profile.

Furthermore, diversifying a portfolio may also provide a greater feeling of independence for an investor. This is because diversifying among a range of companies causes company-specific risk to fall. Similarly, buying shares in companies which report in different currencies causes currency risk to fall, while countering geographic risk by having a spread of companies across the globe means an investor may develop an even greater feeling of independence.

However, no matter how much capital an individual has in their portfolio, nor how well diversified they are, they are still dependent upon the performance of the global economy. Should the global macroeconomic outlook decline, their capital growth and income returns from risky assets such as shares may fall. Similarly, if the world inflation rate increased, they may see their spending power decline in real terms, for example.

As such, all investors depend on stable growth being present in the long run when it comes to risky assets. Even if they are invested in assets which are less reliant upon the performance of the global economy and may even rise during a global recession, such as gold, the reality is that in the long run those assets are dependent upon investor sentiment to a large extent. There is no guarantee that gold would become popular in a global recession, for instance, which means an investor buying gold in order to seek financial independence may in fact be reliant upon a rise in market sentiment in response to changing trading conditions.

Therefore, it may be prudent for investors to seek a state of limited financial dependence, rather than financial independence. Given the globalised nature of the world economy, it seems improbable that any investor could create a situation where they have high returns which are not dependent upon someone or something else in the long run.

As such, while reducing risk, increasing diversification and seeking to become less reliant on other individuals or factors are noble aims, all investors must accept that to at least some extent their financial future is simply out of their hands. That's why obtaining a wide margin of safety and seeking the best risk/reward opportunities could prove to be the best strategy for Foolish investors.

Of course, improving your financial prospects is no easy task. The world economy faces a number of major challenges, which is why the analysts at The Motley Fool have written a free and without obligation guide called The Foolish Guide to Financial Independence.

The guide could help you to achieve improved portfolio performance over a sustained period by selecting the best stocks in the most enticing sectors.

Click here to get your copy of the guide - it's completely free and comes without any obligation.

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What Do The Technicals Boil Down To For Sealand Natural Resources Inc (SLNR)? – Rockville Register

Posted: at 6:40 pm

Sealand Natural Resources Inc (SLNR)s moving averages reveal that the Tenkan line of the shares are below the Kijun-Sen line, indicating potential downwardmomentum building in the bearish chart. Sealand Natural Resources Inc moved-0.18 in the most recent session and touched0.3000 on a recent tick.

The Tenkan-Sen is generally used in combination with the Kijun-Sen to create predications of future momentum. A buy signal is created when the Tenkan-sen line moves above the Kijun-Sen, while a sell signal is created when the Tenkan-Sen line moves below the Kijun-Sen line.

Many technical traders use the Tenkan-Sen as a tool for predicting levels where the price of the asset will find short-term support.

When reading Ichimoku Kinko Hyo charts, investors should note that the Tenkan-Sen line leads the Kijun-Sen, and tracks price with more sensitivity because it covers a shorter period of time. When the Tenkan-Sen line crosses and moves above the Kijun-Sen line, this is generally considered a bullish signal. Alternatively, when the Tenkan-Sen line crosses below the Kijun-Sen line, it is considered a bearish signal.

The tenkan sen/kijun sen cross is one of the most traditional trading strategies within the Ichimoku Kinko Hyo system. The signal for this strategy is given when the tenkan sen crosses over the kijun sen. If the tenkan sen crosses above the kijun sen, then it is a bullish signal. Likewise, if the tenkan sen crosses below the kijun sen, then that is a bearish signal. Like all strategies within the Ichimoku system, the tenkan sen/kijun sen cross needs to be viewed in terms of the bigger Ichimoku picture before making any trading decisions, as this will give the strategy the best chances of success. In general, the tenkan sen/kijun sen strategy can be classified into three (3) major classifications: strong, neutral and weak.

Conducting further technical review, shares of Sealand Natural Resources Inc (SLNR) have a 200-day moving average of 0.35. The 50-day is 0.39, and the 7-day is sitting at 0.39. Using a wider time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MAs may be used as strong reference points for spotting support and resistance levels. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. The moving average can be used as a reference point to assist with the discovery of buying and selling opportunities.

Investors have the ability to approach the stock market from various angles. This may include using technical analysis, fundamental analysis, or a combination or the two. Investors watching the technical levels may be trying to chart patterns and discover trends in stock price movement. Investors tracking the fundamentals may be looking closely at many different factors. They may be focused on industry performance, earnings estimates, dividend payouts, and other factors. They might also be studying how the company is run, and trying to figure out the true value of the firm. Keeping track of all the data may seem overwhelming, but it may help give a needed boost to the portfolio.

Sealand Natural Resources Inc (SLNR)s Williams Percent Range or 14 day Williams %R currently sits at -100.00. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.

Sealand Natural Resources Inc (SLNR) currently has a 14-day Commodity Channel Index (CCI) of -106.82. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Currently, the 14-day ADX for Sealand Natural Resources Inc (SLNR) is sitting at 9.99. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI is currently at 46.61, the 7-day stands at 42.80, and the 3-day is sitting at 31.97.

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Pacific Oceania ponder changes to Fed and Davis Cup preparation – Loop PNG

Posted: at 6:38 pm

The women finished in a share of fifth place last week in Asia/Oceania Zone Group Two, while the men defeated Turkmenistan to avoid relegation from Group Three.

This is the third year since the Pacific Oceania Fed Cup team was revived and captain Patrice Cotti said they travelled to Tajikistan with high hopes.

"Last year we lost against Philippines and Philippines was promoted so this year we expected to make a good result," he said.

"After our win against Iran we had to win against Hong Kong China to be in the semifinals. We lost 3-0 but it was pretty tough and pretty close because Steffi Carruthers lost the third game against the number two of Hong Kong China 7-5 6-3 so it was really close.

"And Abigail Tere-Apisah in the game against the number one of Hong Kong China she lost 6-4 6-4 but she was up 4-3 in each set and each game was pretty tough.

"I was disappointed because I think it was possible for us to win but Hong Kong China was strong and after that they won their semifinal and they were promoted."

Pacific Oceania's four Fed Cup players all live in different countries, and Patrice Cotti, who is based in Tahiti, said one of the biggest challenges facing them is distance.

"It's very difficult for Fed Cup and Davis Cup teams because we only meet one time during the year because we don't have any time to have a good preparation so we need each player of each team...to improve by themselves (throughout the year)," he said.

"So it's difficult but I think in the future if we have a player like Colin Sinclair in the Davis Cup and Carol Lee (in Fed Cup), because she's really young and really talented, we can have promotion for Davis Cup and for Fed Cup no problem and maybe more players - maybe we don't know them very well but we have to discover them."

Patrice Cotti wants to stay on for at least once more Fed Cup campaign and said they might need to explore.

"Maybe we have to meet altogether 15 days before the draw, before the competition, because even if we don't meet together along the year maybe if we stay maybe one month before at the competition (venue) maybe it will be better because we have to work on the doubles, we have to work on everything," he said.

"Maybe it's some details but after all, at the end, the details make the difference."

Photo:Supplied The Pacific Oceania Fed Cup team in Tajikistan.

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Air Seychelles reduces European network – ATWOnline

Posted: at 6:38 pm

Air Seychelles Airbus A330-200

Rob Finlayson

Air Seychelles will adjust its European route network, the Indian Ocean Mah Island-based airline said July 30, with plans to suspend its 2X-weekly Mah-Dusseldorf route from September 10. Additionally, Air Seychelles Mah-Paris Charles de Gaulle operation will be reduced from four to 3X-weekly flights from September 12.

We have made the difficult decision to suspend flying to Dusseldorf after an in-depth review of the route showed that the service is unsustainable, Air Seychelles CEO Roy Kinnear said.

The carrier launched the Dusseldorf route recently on March 30 and upgraded the Paris CDG route from three to 4X-weekly flights on March 28, 2017.

Due to year on year increase of cost of fuel, an extremely competitive aviation market in Europe, and the high number of significant airlines already serving Seychelles though their connecting hubs, it unfortunately results in Air Seychelles being forced to consolidate these services, Air Seychelles chairman Jean Weeling said.

In addition, the volume of connecting traffic from our partner airlines over Dusseldorf [i.e. airberlin] has not lived up to expectations, making it harder to sustain the necessary passenger loads to meet our commercial objectives, Kinnear said.

Kinnear cited weakened demand for air travel out of France as the carrier enters the off-peak season in September as the reasoning behind the reduction in Paris frequencies.

Air Seychelles operate Airbus A330-200s on its European routes, featuring a two cabin configuration with 18 business and 236 seats.

Etihad Airways acquired a 40% stake in Air Seychelles in 2012.

Kurt Hofmann, hofmann.aviation@netway.at

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Best island in Africa and the Middle East: Seychelles receives accolade – eTurboNews

Posted: at 6:38 pm

Seychelles was represented at the Travel + Leisures 2017 Worlds Best Awards ceremony held in New York City last Wednesday.

Some 200 guests attended the event hosted by Travel + Leisures Publisher, Mr. Joseph Messer, and Editor in Chief, Mr. Nathan Lump.

The ceremony saw the presentation of accolades to top hotels, islands, cities, airlines, cruise lines, spas, among others, as voted by readers of the New York-based travel magazine.

Readers of Travel + Leisure are given the opportunity to rate their travel experiences around the globe on an annual basis.

The Seychelles Tourism Boards Regional Director for Africa and the Americas, Mr. David Germain was presented with the award designating Seychelles as the best island in Africa and the Middle East.

Its the second year in a row that Seychelles is rated in the top spot in this category by Travel + Leisure.

Mr. Germain said: The Award is confirmation that our beautiful islands is becoming more and more popular in North America, topping the list of the most desirable holiday destinations worldwide.

Visitor arrivals from the Americas to the Seychelles increased by 69 percent from January to June.

Mr. Germain remarked that US consumers choose to visit Africa because of the wildlife, history, geography and people, hence Seychelles is in a unique position to attract visitors from the US thanks to its proximity to Africa.

Our mission is to promote this message, to a cross-section of US audiences: consumers with a passion for international travel and the travel suppliers who serve them, said Mr. Germain.

Opportunities to increase arrivals from the North American market lies in the Seychelles Tourism Boards ability to participate in exhibitions and trade shows in North America. Seychelles needs to be consistently present in the marketplace, in order to be included in travel packages with other destinations in Africa & the Middle East.

As part of efforts to improve connection with North Americas travel trade, the Seychelles Tourism Board (STB) recently joined the United States Tour Operator Association, USTOA.

The STB Chief Executive, Mrs. Sherin Francis, has also highlighted the intention to seek further collaboration with Ethiopian Airlines in the near future, to support twin-center holiday packages targeting specifically the US market.

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Air Seychelles to end Dusseldorf service – Flightglobal

Posted: at 6:38 pm

Air Seychelles is to axe its Dusseldorf route after six months of serving the German destination.

The African carrier says the flights will end on 10 September. Additionally, the frequency of Air Seychelles' Paris flights will be reduced from four per week to three as of 12 September.

Chief executive Roy Kinnear states that the airline made the "difficult decision" to suspend flights to Dusseldorf after "an in-depth review of the route showed that the service is unsustainable".

He adds: "Given the high number of airlines operating or offering connectivity out of Germany, the seasonal nature of the route where peak travel periods are outweighed by low demand during the off-peak season, the extremely competitive levels of fares and existing fuel prices, it is not viable for us to continue serving the market at this point in time."

The Etihad equity partner carrier began twice-weekly services to Dusseldorf on 30 March.

FlightGlobal schedules data shows no other carrier operating on the route.

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Royal Caribbean Cruises (RCL) Q2 2017 Results – Earnings Call Transcript – Seeking Alpha

Posted: at 6:37 pm

Royal Caribbean Cruises Ltd. (NYSE:RCL)

Q2 2017 Earnings Call

August 01, 2017 10:00 am ET

Executives

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Richard D. Fain - Royal Caribbean Cruises Ltd.

Michael Bayley - Royal Caribbean International

Adam M. Goldstein - Royal Caribbean Cruises Ltd.

Analysts

Harry Curtis - Nomura Instinet

David James Beckel - Sanford C. Bernstein & Co. LLC

Felicia Hendrix - Barclays Capital, Inc.

Robin M. Farley - UBS Securities LLC

Steven Wieczynski - Stifel, Nicolaus & Co., Inc.

Timothy A. Conder - Wells Fargo Securities LLC

Jared Shojaian - Wolfe Research LLC

Stuart J. Gordon - Joh. Berenberg, Gossler & Co. KG (United Kingdom)

James Hardiman - Wedbush Securities, Inc.

Stephen Grambling - Goldman Sachs & Co. LLC

Assia Georgieva - Infinity Research Ltd.

Dan J. McKenzie - The Buckingham Research Group, Inc.

Vince Ciepiel - Cleveland Research Co. LLC

Operator

Good morning. My name Dorothy and I will be your conference operator today. At this time, I would like to welcome everyone to the Royal Caribbean Cruises Limited Second Quarter 2017 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. I would now like to turn the call over to Jason Liberty, Chief Financial Officer. Sir, you may begin.

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Thank you, Operator. Good morning and thank you for joining us today for our second quarter earnings call. Joining me here in Miami are Richard Fain, our Chairman and Chief Executive Officer; Adam Goldstein, our President and Chief Operating Officer; Michael Bayley, President and CEO of Royal Caribbean International; and Carola Mengolini, our new Vice President of Investor Relations.

During this call, we will be referring to a few slides, which have been posted on our investor website, http://www.RCLinvestor.com. Before we get started, I would like to refer you to our notice about forward-looking statements, which is on our first slide.

During this call, we will be making comments that are forward-looking. These statements do not guarantee future performance and do involve risks and uncertainties. Examples are described in our SEC filing and other disclosures. Please note that we do not undertake to update the information in our filing as circumstances change. Also, we will be discussing certain non-GAAP financial measures, which are adjusted as defined, and a reconciliation of all non-GAAP historical items can be found on our website. Unless we state otherwise, all metrics are on a constant-currency adjusted basis.

Richard will begin by providing a strategic overview of the business. I will follow with a recap of our second quarter results, provide an update on the booking environment and then provide an update on our full-year and third quarter guidance for 2017. We will then open up the call up for your questions.

Richard?

Richard D. Fain - Royal Caribbean Cruises Ltd.

Thank you, Jason, and good morning, everyone. I'm really very pleased to be able to speak with you all this morning and to give you some color on where we are. At the beginning of the year, I commented that we sensed an intangible tone in the market that was as good as or better than any time I could recall. This tone was hard to pinpoint or to define, but it gave us a very tangible sense that 2017 could be a particularly positive year. Since then, the outlook has only gotten better.

Our earnings forecast now exceed even the high end of our original range of expectations. In a normal year, we have a lot of pluses and minuses and they usually balance each other out. But this year, we are experiencing many more positive forces than negative ones. Part of this appears to be industry-wide. People have bought all the stuff that they need, and they're now looking towards gaining more experiences.

Instead of buying TVs and cars, they seem to be buying memories as never before. Since we're in an industry that specializes in providing great memories that trend plays to our sweet spot. Even better, the trend shows no respect for borders and seems to be occurring all around the world. Our sailings in the U.S., Europe, Alaska, Baltic, Asia, all demonstrate this marvelous phenomenon.

Now, looking to next year, we're conscious of the fact that a particularly strong 2017 also provides particularly difficult comparables for 2018. This is definitely a very nice problem to have, but it is nevertheless a very real issue. On top of this marvelous industry-wide growth in demand, we're also seeing powerful drivers coming from the unique positioning of our special brands.

All of our brands are performing at a level we've simply never seen. Our guest satisfaction ratings are at the highest point in our history, and they keep rising. Our onboard revenue figures are doing well, both in terms of sales and satisfaction.

Some of this is driven by our wonderful new ships, such as Harmony of the Seas, Mein Schiff 6, Symphony of the Seas or Celebrity Edge, but much of it also comes from greater engagement by our officers and our crew.

This is very much of a people business, and it is all about the people. In addition, there are a few specific programs at Royal Caribbean that have proven very attractive in driving change. The first, of course, is our DOUBLE-DOUBLE. This program has been extremely successful in galvanizing our entire workforce to a common set of goals. You all heard me say before that if we give our people focus and a clear vision, nothing stops them from achieving extraordinary results.

The success of the DOUBLE-DOUBLE provides very tangible proof of that fact. For that, I extend to all of them my sincerest thanks. Remember, however, that the DOUBLE-DOUBLE was never just about 2017. It's always been about positioning Royal Caribbean to the future.

I believe that's the real success of the DOUBLE-DOUBLE, not just the 2017 results. As we approach the end of DOUBLE-DOUBLE, we are putting thought into providing direction again for a multi-year period.

As you know, our mantra is continuous improvement, so I wouldn't expect our next announcement to be simply a clone of the DOUBLE-DOUBLE. First of all, that would be boring. But also we need to focus on the drivers of success. So I would expect that that's the kind of picture that we would be painting.

I know that the some of you have suggestions for the structure of this program, and you are absolutely free to share them with us. Be aware that any good idea you come up with will be shamelessly stolen without any credit to the author.

Now, as part of the DOUBLE-DOUBLE, we've adopted a number of specific initiatives that support our overall objectives. One of these is our price integrity program, which some of you have asked about.

Fortunately, we've only good news on that front. As we had predicted, the early stages of the program cost us revenue in both 2015 and 2016. That hurt, but once we established our consistency and credibility with the travel agents, with the public and with our own revenue managers, the benefits started flowing in.

Today, it's clear that the program is accomplishing our goal of rewarding those who book early, while disincentivizing those who push for last-minute discounts. The key to this success has been consistency.

We don't do it only when it's painless or convenient. We maintain the program even when it hurts, and sometimes we have to let cabins sail empty. That goes against every one of our instincts, but the focus and the discipline have proven their value.

Ironically, the program has been so successful that we're now expecting to achieve a record load factor this year. That, in turn, causes slightly higher operating costs per lower berth, but obviously the bottom line impact is very positive.

Now, since we last spoke, there have been several other developments, which I'd like to touch on today. First, we announced the deployment of the first Quantum Ultra sailing in China in 2019. With the Quantum class of ships, we're giving the most technologically-advanced hardware to a market that is very digitally focused. This move is a continuation of our strategy to have premium hardware in China. And that strategy is what has enabled us to gain and to hold a leadership position in the eyes of the Chinese consumers, such that today, Quantum is essentially synonymous with cruising in China.

It's hard to believe, but we've now been operating there for almost 10 years. There's been a tremendous growth during this period of time, and we're finding that China is starting to behave more like a typical market. Most markets have ups and downs, and we've seen both in China.

Most recently, the restrictions on travel to Korea have been painful. Nevertheless, throughout these variations, our outlook for the future in China has not changed. Our team on the ground is motivated, focused and making strides in driving the evolution of cruise distribution and destinations.

Speaking of evolution, one of the most important and most quickly changing is the use of digital tools for marketing, for product development and for delivering and enhancing the consumer experience. We are proud to have focused on this for several years, and that gives us a leg-up on expanding our capabilities. We're currently working on what some might call version 2.0 of our capabilities, but, as I previously reported, we've dubbed it Project Excalibur. One advantage with Excalibur is that we already have years of experience in the area that allows us to build on.

In addition, because we spent so much effort during these developmental years, we have an infrastructure in place today that allows us to scale our innovations quickly. For example, we expect to have Excalibur functioning on 15% of our fleet within five months of today, and over half of our fleet by the end of next year.

I said before that our efforts in this arena are not nice to have. They are vital to keeping cruises relevant as a great vacation experience. We are also aware that several of our competitors have announced plans to expand their digital capabilities as well. We welcome those plans, too, because it will make cruising even more powerful as a relevant vacation option.

Another aspect of the business that's sometimes underappreciated is the work to ensure the ocean and the communities surrounding it are healthy and protected. We're very proud that the World Wildlife Fund is our long-term partner in this journey, and they are the gold standard in environmental stewardship. With their help, we have established specific and measurable targets related to greenhouse gas emissions, sustainable food supply and destination stewardship. We remain committed to this effort. And we look forward to following a path to achieve our long-term targets in this endeavor as well as on the financial front.

As you can see, we've got lots of reasons to feel optimistic about the future. Demand is good. We're attracting new guests. We're developing young markets. Our employees are happy. All of this positions us beautifully for long-term success.

With that, it's a pleasure to hand the call back over to Jason. Jason?

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Thank you, Richard. I will begin by talking about our results for the second quarter. Second quarter results are summarized on slide 2. For the quarter, we generated adjusted earnings of $1.71, which is 57% higher than same time last year.

These results are better than guidance due to strong close-in demand, better fuel trends and a better-than-expected performance from our equity investments. Net revenue yields are up 11.5%, which is better than previous guidance.

Strong demand for North American products allowed for better close-in pricing trends and record high load factors. Strong trend in beverage, shore excursion and high-speed WiFi all contributed to an 8.3% year-over-year increase in onboard revenue.

Net cruise costs excluding fuel were down 0.9% for the quarter. Costs in the second quarter came in slightly higher than our guidance, driven by higher load factors, timing and additional investments in revenue-generating activities.

Moving on to the booking environment, over the past three months, new bookings have been up double digits compared to last year and at higher prices. Booking volumes have been up more for sailings that are further out, due to the ongoing extension of the booking window.

As a result, both load factor and APD are higher than same time last year for 2017 and in each of the next four quarters. We are enjoying the benefits from our global sourcing model, revenue management strategies and the price integrity program.

When we first announced the price integrity program in 2015, we knew that it would have a negative impact on our load factors in the short-term, but that it would contribute to long-term yield growth.

Now, two years after its inception, we are experiencing the benefits of the program through an extended booking window, strong close-in pricing, higher overall APDs and record load factors.

North America remains our largest sourcing market and the strength in demand we have seen from U.S. and Canadian guests have been unwavering for sailings on both sides of the Atlantic.

Now, I'll provide an update on each of our key product groups, starting with Europe. While most itineraries have benefited from strength from the North American consumer, we have seen particularly strong trends on European sailings, both in the Mediterranean and in the Baltics.

Fewer geopolitical events and stable air pricing have contributed to a surge in demand from our higher-paying North American guests. As a result, North American guests will account for a larger percentage of Europe itinerary sourcing than in any other recent year.

This sourcing shift, which is made possible due to our significant global footprint and yield management capabilities, has contributed to higher ticket prices and higher onboard spend.

Our booked APDs for Europe sailings are significantly higher than same time last year and load factor is up nicely. North American itineraries account for about 58% of our 2017 capacity and have been trending well.

The Caribbean, our largest product group at close to half of our capacity, has continued to please and remains up year-over-year in both rate and load factor.

On our last earnings call, we noted that Alaska was outperforming last year's record season. That trend continued throughout the last three months, and we continue to expect record yields for the product.

In the Asia-Pacific arena, we increased capacity by 5% year-over-year, with a combination of China, Australia and Southeast Asia itineraries now accounting for 21% of our 2017 capacity. We achieved record load factors in the second quarter for our China itineraries and expect to meet or exceed prior year occupancies in both Q3 and Q4.

Unfortunately, the South Korea travel restrictions created a challenge for this year's China season, resulting in less-than-ideal itineraries and lower pricing. Our strong relationship with key travel partners, combined with expanding direct business, contributed to a relatively quick stabilization in demand after the travel restrictions were announced.

Lastly, the upcoming Australia season, which accounts for more than 10% of winter capacity, is in a strong book position, despite industry capacity growth. While it's too early in the booking window to provide a lot of color on our overall 2018 expected performance, what I am willing to say is that we are currently booked ahead of same time last year in both APD and load factor for 2018.

Now, we can turn to our updated guidance for full year 2017, which is on slide 3. We are now 95% booked for the year, and we now expect our net revenue yields to increase in the range of 5.5% to 6%. This is an increase versus prior guidance, driven mainly by the out-performance in the second quarter and further strength in demand from our North American sourced passengers.

Net cruise costs excluding fuel are expected to be up approximately 1%. The increase in the cost guidance is driven by higher-than-anticipated load factors, timing and investment in revenue-generating activities. We anticipate fuel expense of $706 million, which is down slightly relative to prior guidance.

We are 64% hedged for the remainder of the year at a price of $487 per metric ton. Based on current fuel prices, interest rates and currency exchange rates, our adjusted earnings per share guidance is in the range of $7.35 to $7.45 for the year.

In summary, a strong second quarter, coupled with the benefits of a weaker dollar, better fuel prices, better demand trends, some additional investment in revenue-generating activities and better-than-expected performance from our joint ventures, are driving the improvement in our guidance for the year.

Before getting into the third quarter guidance, I wanted to reiterate a point that we have emphasized on the past couple of earnings calls. Our yield improvement in the first half of the year was greater than the yield improvement we expect in the back half of the year, as we have already lapped the new entry benefits of Harmony of the Seas and Ovation of the Seas, as well as the impact from the 51% sale of Pullmantur. Additionally, Q3 yields are benefiting from very strong demand trends for Europe. Since Europe makes up about a third of our capacity in Q3 and approximately 10% in Q4, we expect Q4 yield growth to be lower than Q3.

Now, we can turn to our guidance for the third quarter, which is on slide 4. We anticipate a net yield increase of 4% to 4.5%. The year-over-year improvement is mainly being driven by strong North American demand trends for our core products on both sides of the Atlantic.

Net cruise costs excluding fuel are expected to be up approximately 4% on a constant-currency basis. The year-over-year increase in our cost metric is mostly due to a year-over-year capacity reduction for the quarter. Taking all of this into account, we expect adjusted earnings per share to be approximately $3.45.

Before we open up the call for a question-and-answer session, I wanted to note that our next earnings call is tentatively scheduled for November 7.

And with that, I would like to ask our operator to open up the call for a question-and-answer session.

Question-and-Answer Session

Operator

[Operating Instructions] Your first question comes from the line of Harry Curtis with Nomura Instinet.

Harry Curtis - Nomura Instinet

Hey, good morning, everyone. Two quick questions, we've gotten several questions on the sources of the $0.30 increase for the year. And when you back out roughly $0.08 for the beat, that leaves $0.22. Of that, is it fair to say that half of that is currency, but the balance of that is just stronger operating performance?

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Yeah. That's exactly right, Harry. About half of the beat is driven by the weakening of the dollar and the balance of that is driven by improvement in business trends.

Harry Curtis - Nomura Instinet

Okay. And then my second question is given the strength of these trends and this is the year that you should be generating a significant amount of cash, any explanation as to your hesitancy to buy back stock in the quarter?

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Well, I wouldn't necessarily say it's hesitancy. I would point out that, one, we've said from the start of the program that we were going to be doing it opportunistically. And we also said we were going to be doing it in line with free cash flow. And most of the free cash flow gets generated really on the back half of the year.

Harry Curtis - Nomura Instinet

Okay. So the message is stay tuned.

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Stay tuned.

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Climate Adaptation Finance Update: Caribbean Resilience Receives Boost – IISD Reporting Services

Posted: at 6:37 pm

30 July 2017: Over the month of July, the Caribbean Development Bank (CDB) approved a number of grants that will support climate and disaster risk resilience in Caribbean countries. The Adaptation Fund, which is celebrating its 10-year operational anniversary in 2017, approved US$20 million in new project funding. Countries in Africa and Latin America will receive support for projects that build on the synergies of sustainable agriculture and climate action.

CDB and EU Support Resilience in the Caribbean

In July, the CDB approved a series of grants that support climate and disaster risk resilience in Caribbean Forum countries and are funded through the African Caribbean Pacific-EU-CDB Natural Disaster Risk Management (ACP-EU-CDB NDRM) programme.

In Jamaica, a 219,000 grant will enable the upgrading of a damaged flood early warning system at a major river. The country will also receive a 332,000 grant for strengthening disaster risk management capacities at a vulnerable municipality through enhanced planning, policy integration, geographical information systems (GIS) and community resilience. [CDB Press Release on Jamaica Flood System] [CDB Press Release on Jamaica DRM Capacity]

Two regional-level capacity-building projects were also approved. The Caribbean Institute for Meteorology and Hydrology will receive 773,000 for strengthening national and regional institutional capacity for weather and climate forecasting and for developing climate early warning systems for the health sector, aimed at predicting mosquito-borne disease outbreaks. Another grant (amount undisclosed) will assist the Caribbean Disaster Emergency Management Agency in its work on strengthening emergency response procedures in participating States through planning, development of guidelines and a workshop. [CDB Press Release on Climate Forecasting] [CDB Press Release on Emergency Response Procedures]

Tajikistan, in Central Asia, will also receive support for disaster risk preparedness and climate resilience. Between 1992 and 2016, the country is estimated to have suffered US$41.8 billion in economic losses from natural disasters, including floods, earthquakes and landslides. Funded by the World Bank and implemented with the UN Development Programme (UNDP), funding totaling US$50 million will support proactive approaches by crisis management centers and entities responsible for disaster risk identification. [World Bank Press Release]

Adaptation Fund Turns 10, Approves US$20 Million in New Funding

Also in July, the Adaptation Fund Board approved funding, totaling US$20.4 million, for one country-level and two regional projects. A US$14 million capacity-building project on the Colombian-Ecuadorian border, implemented by the World Food Programme (WFP), will aim to improve food security and autonomy among local populations through reviving traditional and local knowledge with various co-benefits, including climate change resilience. In East Africa, a US$5 million capacity-building project will support the integration of climate resilience measures into transboundary water catchment management. Also, a US$1.3 million project in Senegal will support infrastructure resilience through improving the resilience of mangroves in a number of coastal communities. [Adaptation Fund Press Release]

Marking its 10-year operational anniversary, the Adaptation Fund is publishing a series of articles and short stories.

Marking its 10-year operational anniversary, the Adaptation Fund is publishing a series of articles and short stories that highlight its partnerships and project successes, including the Funds work on resilience-building with the UNDP and support to a community lending model in Antigua and Barbuda. The Fund also released two short documentaries that demonstrate how its projects are delivering results in Guatemala by promoting the reintroduction of cocoa production and by supporting community-level adaptive capacities. [Adaptation Fund 10 Years Pages] [Adaptation Fund Video on Cocoa] [Adaptation Fund Video on Resilience Project]

Agriculture and Food Security Efforts in Latin America and Africa Funded

New CDB funding also included a US$295,000 technical assistance grant for Guyana to develop a framework to guide nationwide agricultural adaptation measures. A large share of the countrys population is employed by agriculture, which is threatened by rising sea levels and increasing rainfall and temperatures. The project will identify vulnerable areas and promote the adoption of climate-smart agricultural practices. [CDB Press Release]

In Zambia, funding was announced for two projects that support food security and climate action. The World Bank announced US$17 million to the Zambia Integrated Forest Landscape project, which will promote climate-smart agriculture and sustainable landscape management practices in the countrys Eastern Province. The project will also aim to generate funds of up to US$30 million through the World Banks BioCarbon Fund from resulting emissions reductions. The International Fund for Agricultural Development (IFAD) will provide a US$21.2 million loan and US$1 million grant for the Enhanced Smallholder Agribusiness Promotion Programme (E-SAPP), which is also receiving US$3.4 million in co-financing from the private sector. The project will facilitate a transition from subsistence to business-oriented farming and includes interventions to support the integration of climate risk into relevant policies. [World Bank Press Release] [IFAD Press Release]

The Global Environment Facility (GEF)-financed Integrated Approach Programme on Fostering Sustainability and Resilience for Food Security in sub-Saharan Africa was launched in Addis Ababa, Ethiopia. Running for five years, the US$116 million programme, which is supported by several multilateral development agencies and banks, will promote sustainable natural resources management, smallholder farmers resilience and food security in countries that are facing simultaneous challenges from land degradation, biodiversity loss and climate change. [GEF Press Release]

In Kenya, which has been facing severe drought and famine for several months, the African Development Bank (AfDB) announced US$1 million emergency humanitarian assistance for delivery of food aid and water purification supplies. Non-governmental organizations (NGOs) have previously drawn attention to the role of climate change in exacerbating the drought and humanitarian crises in East African countries, including Kenya. [AfDB Press Release] [Oxfam Briefing on Climate Crisis]

Work on On-the-ground Gender Mainstreaming Advances

A workshop by the CDB-managed, multi-donor Community Disaster Risk Reduction Fund, held in Belize, sought to enable local stakeholders to understand how gender considerations can be integrated into a local adaptive capacity-building project. Interventions highlighted included gender-sensitive infrastructure design, and public awareness and training. [CDB Press Release]

The Nordic Development Fund (NDF) highlighted lessons from a regional project in Asia aimed at harnessing climate change mitigation initiatives to benefit women, which has engaged in policy development, institutional support and gender-inclusive pilot interventions. The regional project has provided lessons for another NDF-funded gender mainstreaming project in Cambodia, which has already resulted in the inclusion of climate change mitigation consideration into two ministries gender mainstreaming policies. [NDF Press Release]

* * *

The SDG Knowledge Hub publishes monthly climate finance updates, which largely focus on multilateral financing and cover, inter alia, mitigation and adaptation project financing news and lessons, institutional events and news, and latest developments in carbon markets and pricing. Past IISD climate finance updates can be found under the tags: Finance Update: Climate Change; and Finance Update: Sustainable Energy.

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Climate Adaptation Finance Update: Caribbean Resilience Receives Boost - IISD Reporting Services

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