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Predictions (1)

First of three parts
The new season of the National Basketball Association is just weeks away and all indications point to yet another interesting run following landscape-altering moves across varying levels in the offseason.
While it is going to be tough to pinpoint how exactly things would pan out in The Association for the 2018-19 season, this space will nonetheless try to throw its take on things all NBA, beginning with how teams in the Eastern Conference would stack up.
With LeBron James deciding to take his talent to the Western Conference, which team takes hold of the East remains very open but this writer sees the Boston Celtics emerging with the best record in the conference.
Continuity and stability under coach Brad Stevens are key for this team which welcomes back erstwhile injured All-Stars Kyrie Irving and Gordon Hayward.
The Celtics have a good mix of veterans and young players that could put up a sustained fight throughout albeit I expect them to have some hiccups here and there early in the season as they assimilate back into the system their returning stars.
The Toronto Raptors should finish second with possibly the best two-way player in the conference, if not in the NBA, in Kawhi Leonard in their fold.
Much depends on the mindset and conditioning of “The Claw.” If he is committed to playing up North and brings the tremendous skills set and motor that he showed in San Antonio then upside for the Raptors could be tremendous.
Having its core, that led the team to the second-best record in the NBA last season, intact is key for the Raptors, who are now handled by Nick Nurse. The addition of journeyman big man Greg Monroe I also like as he further shores up the team’s frontline.
The Philadelphia 76ers had a breakthrough season last year as the “process” finally bore fruit.
Joel Embiid and Ben Simmons have proven themselves to be solid cornerstones for the team and judging from the preseason game I saw of them, this year could well see them further underscore that the future is now for the “City of Brotherly Love.”
Top rookie pick last season Markell Fultz finally gets to play after sitting out the rest of his supposed rookie year, giving coach Brett Brown another promising piece to build his team around.
Milwaukee should wind up fourth led by do-it-all forward Giannis Antetokounmpo and now coached by Mike Budonholzer.
The Bucks lost some key pieces but also got some good ones like Brook Lopez and Ersan Ilyasova but the proven record of Budonholzer of turning programs around (remember the Atlanta Hawks a couple of years back?) should do wonders for the “Greek Freak” And Company.
Washington comes in fifth for this space with the addition of big man Dwight Howard.
Howard has taken much flak for his play in the last few years but I still believe he still has it in him to make things happen given the right conditions.
Whether those conditions are in the Capital with John Wall and Bradley Beal and under coach Scott Brooks remains to be seen but with Howard and what he could potential bring I am not outrightly sleeping on the Wizards.
Indiana I expect to supplant the Wizards and the Bucks if things do not pan out for the last two teams as expected, a testament to the collective ability of the Pacers.
They have a sure identity now with All-Star guard Victor Oladipo leading and coach Nate McMillan at the helm, assuring a team with stability to compete.
This year would mark the farewell tour of Heat great Dwyane Wade but do not expect Miami to just go through the motions.
The Heat have the pieces to slug it out but need to have them working, notably Hassan Whiteside, who had a relatively down year last season.
He has to see eye-to-eye with coach Erik Spoelstra to get the needed result from him, which would go a long way in helping his team.
With Cleveland may be hard-pressed to get over the departure of James, Detroit fills in at eighth.
Blake Griffin and Andre Drummond can be solid but after them I do not see anybody steadily coming in day and day out, leaving sustained fight in suspicion.
Reigning coach of the year Dwane Casey is now manning the sidelines for the Pistons and he will definitely be tested.
The rest of the East I see Charlotte, Cleveland, Brooklyn, New York, Orlando, Chicago, and Atlanta on the basis of still lacking the needed pieces, including because of injuries, and/or still just in the process of regrouping.
Next week the Western Conference
 
Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.
msmurillo@bworldonline.com

Reed’s revelations

In retrospect, Patrick Reed speaking out was, perhaps, the most predictable offshoot of a forgettable Ryder Cup experience. Christened “Captain America” for his unabashed, if over the top, displays of partisanship, he failed to live up to the promise borne of his two previous stints and was relegated to the far end of Team USA’s understandably somber post-event press conference. He wasn’t heard from then, but he clearly had a lot on his mind, and barely had an hour passed before he pounced on an opportunity to get his points across.
The interview with The New York Times’ Karen Crouse showed Reed in his typical candid self, aiming at specific targets, but, in shooting from the hip, likewise producing collateral damage. He lashed out at teammate Jordan Spieth, who, he argued, set aside a productive pairing with him in order to play with longtime buddy Justin Thomas. His pronouncement stemmed from the very last query in the Team USA presser that he hinted he was prevented from responding to.
Reed’s quotes on the Times pictured him as a jilted partner. And because they bore the same sentiments his wife Justine expressed via a series of Tweets earlier in the day, he had evidently been stewing in them for quite a while. Apart from Spieth, he likewise took aim at Team USA captain Jim Furyk, contending that “I don’t think it’s smart to sit me twice.” In the process of unloading his fusillade, he wound up zinging erstwhile idol Tiger Woods as well. The all-time great, he recounted, apologized to him for their twin losses, with his train of thought indicating that the failures were not his.
Whether or not Reed will dial down his criticisms remains to be seen. History seems to point to him standing his ground. From his college transfer to his estrangement with his family to his playing style to his off-the-cuff pronouncements, he has refused to apologize for being, well, himself. In part, it’s because taking on a steely countenance is how he has long responded to controversy. In larger measure, it’s due to his capacity to turn adversity to his advantage. And, admittedly, his me-against-the-world view has led to results on the course.
No doubt, there will be a lot of pushback on Reed’s revelations. Team USA’s chartered flight to Atlanta from Paris could not have been pleasant. If there’s anything stalwarts of the old red, white, and blue have proven time and again, its their capacity to weather even self-induced tempests. Then again, the fact that compartmentalizing is ingrained to them can’t be all good. And the negatives are, lo and behold, especially apparent in the Ryder Cup — where heart is most important, where head is often flummoxed, where humility is sometimes mistaken for surrender, and where homework is never a guarantee of favorable outcomes.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Prized Points: BAIC unveils two hopefuls for SUV, MPV categories

Text and photos by Kap Maceda Aguila

THE sports utility vehicle (SUV) and multi-purpose vehicle (MPV) segments are two of the fastest-growing and selling formats in the automobile industry. On Sept. 28, BAIC Philippines unveiled two new models in the aforementioned categories in a bid to stake a claim in the niches. The car brand (which opened shop here in 2014) is the fourth-largest auto group in China, where it is based in Beijing. The BAIC Group is ranked 124th on the Fortune Global 500 list, with an operating income of $69.6 billion, according to a company statement. Its design center is located in Turin, Italy.
The BJ20 compact crossover is the company’s first SUV offering locally, an entry-model into its Bravo line, while the M50S is an upgrade of the popular M20 platform.
Bayan Automotive Industries Corporation (distributor of BAIC in the Philippines) president and CEO George S. Chua said in a speech during the twin launch that “thanks to the implementation of the China ASEAN Free Trade Agreement, bringing down customs duties from 20% to 5% on certain vehicle models,” BAIC now has a “fighting chance to compete in certain categories in the domestic market.”
And, despite the “negative image of China-made products,” Mr. Chua said the company has been able to thrive — outpacing the double-digit growth of the Philippine auto industry from 2015 to 2017. In choosing the nameplates to bring to the local market, the executive maintained that the priority is to “look for models that the Philippine motoring public wanted and needed, at a price that would still be affordable.”
Replying to a question from BusinessWorld, the executive revealed, “Given the chance, we’d like to expand our product line into the more popular segments such jeepney replacements… electric vehicles, and delivery [truck] segment. All of these things are in the plans.”
BAIC Philippines currently has nine dealerships and 21 accredited service centers. The launch of the two additional vehicle models now pushes the number of local offerings to 10.
BJ20: ‘HIGH-PERFORMANCE’ FEATURES
The BJ20 was globally presented to the public in August 2016 — bannering a “futuristically functional, classically boxy, and ruggedly lived-in look.” The front-wheel drive crossover is powered by a Euro5-compliant, turbocharged Mitsubishi 4A91T 1.5-liter gasoline engine with MIVEC variable valve timing. The system generates 147 hp (at 6,000 rpm) and 210 Nm of torque (from 2,000 — 2,500 rpm). BAIC maintains that because the engine is turbocharged, it is fuel-efficient and powerful — “delivering the power of a 2.25-liter engine” when needed. The power plant is mated to a CVT transmission with a “deep starting ratio for heavy-hauling situations.”
BAIC claims a fuel economy figure of 13.15 kilometers per liter on “comprehensive driving conditions through inter-city highways and inner-city streets.”
The BJ20 clears the ground by 215 millimeters, and rides on 225/55 tires mounted on sporty 18-inch alloys. It features an electric power-assisted steering, auto-hold parking, an electronic parking brake, climate control with air filtration, and an infotainment system predicated on a 10.1-inch interactive touch screen.
“The BJ20 [has a] totally modern design you would expect from a much more expensive luxury vehicle, such as having a panoramic sunroof,” declared Mr. Chua. “Personally, the most endearing feature… is that it is turbocharged, and [has] a dual exhaust system — something you see only in high-performance vehicles.”
The BJ20 is priced at P1.148 million for the 1.5-liter turbo CVT Standard variant, and P1.288 million for the 1.5-liter turbo CVT Luxury edition.
M50S: ‘VERSATILE FAMILY CAR’
The sequel to BAIC’s three-row M20 boasts a “roomy cabin, rugged construction, responsive engine, and refined ride.” The brand positions this new vehicle with an updated series designation as a “versatile family car” with the qualities of a people mover and a utility vehicle.
Also boasting three rows, the M50S is tall and boxy, capable of a 2+3+3 seating configuration with a middle-row bench, or a 2+2+3 formation with individual seats in the middle. BAIC bestows some premium touches — such as microfiber synthetic leather-covered seats, electrically assisted steering, and an infotainment system with a reversing camera.
The rear-wheel-driven MPV has body-on-frame construction, and is motivated by a DAM15DL 1.5-liter, Euro5 gasoline engine with advanced dual variable valve timing promising 114 hp and 150 Nm. BAIC insists there is enough room for cargo even if the rear bench is not collapsed (the second row is foldable, too).
“With the introduction of the M50S, you get something much more than the M20,” continued Mr. Chua. “[It] is bigger, better, more advanced, and with more features. The best part is that if you consider the devaluation of the peso and the increase in excise tax rates, the introductory price of the M50S… is actually cheaper than the old price of the M20.”
The M50S seven/eight-seater Luxury variant costs P638,000; the Ultra-Luxury variant goes for P668,000.

New-generation Continental GT is latest Bentley in PHL


FUSING together sport and opulence, speed and long-distance coziness, has been the Bentley Continental GT’s brief from Day One — or since 2003, when the original model debuted. Three generations later, the car faithfully keeps to its reason for being, all while packing the latest in car-making technologies. The all-new Continental GT, launched in September last year at the Frankfurt Motor Show, is a rolling-sculpture proof of this. And, now, it has arrived in the Philippines (it’s now available at the newly refurbished Bentley Manila showroom in Bonifacio Global City).
The Continental GT gets a body wholly crafted from aluminum, which Bentley said has allowed its coach builders to sculpt the car’s iconic shape, not to mention its “power line,” which originates from between the head lamps, spears through the doors, and fades out as it reaches the rear haunches. This feature is an evolution of that which also graced the body of the R Type Continental from 1952.
Rakish than ever, the new Continental GT wears a swept-back silhouette, and is also lower and wider than the model it replaced. But the car retains the nameplate’s signature cues, albeit reinterpreted, such as the matrix grille that’s flanked by a pair of round head lamps on either side. The head lamp units are pieces of automotive jewelry — they’re made up of 82 LEDs, creating a cut-crystal effect. This treatment is echoed at the back by the elliptical tail lights.
The car’s cabin is a mixture of Old World craftsmanship and new technologies — think swaths of quilted leather and the finest forest veneers combined with touch screen panels, instrument displays that can switch between digital or analog readouts, and a 2,200-watt Naim audio unit that pump out tunes to 20 speakers scattered around the interior, including an active pair embedded in the seats. Every piece of furniture in there is power-operated, too.
Propelling the Continental GT is a 6.0-liter W12 — that’s 12 cylinders in a “W” formation — engine that, through two turbochargers, produces 635 hp and 900 Nm. An eight-speed dual-clutch transmission sends this output over to all four wheels. Top speed? 333 kph.
In Mulliner spec, the Continental GT is hauled down from speed by the largest brake discs ever to be fitted on a production car, which are grabbed by 10-piston calipers. The car rolls on 22-inch, open-spoke, hand-polished alloy wheels, which are suspended by Bentley’s Dynamic Ride System. This feature lets the car ride as comfortably as possible, yet still be agile to drive.
When Bentley said the Continental GT is designed and engineered to be the best grand touring car in the world, it was not spouting empty marketing slogans. The Continental GT is the best grand touring car in the world. — Brian M. Afuang

Cars and crustaceans (or what Volvo has to do with crayfish)

APPARENTLY, the idea for creating Volvo was hatched over a seafood meal.
According to Volvo Cars, company founders Gustaf Larson and Assar Gabrielsson had a chance meeting at seafood place Sturehof in Stockholm. Larson was drawn to the restaurant because it served crayfish, and once inside saw his friend Gabrielsson. Over a meal of crayfish, the two men’s conversation turned towards cars, with Larson supposedly wondering: “Couldn’t Sweden produce its own cars?” This meeting took place in August (some accounts put it in July) of 1924.
Actually, the Volvo name, derived from the Latin word “volvere,” or “I roll,” was registered as a trademark as early as May 1911. The name was not intended for a car though, but for a new line of ball bearings for the SKF brand.
It was not used on any SKF product though, and somehow Gabrielsson, a sales manager at SKF, managed to convince SKF to use the Volvo name for the car company he and Larson, an engineer, would start in 1924. The two men’s idea was to build cars specifically designed for Sweden’s rough roads and cold temperature, and by August 1926, Volvo started developing cars within the SKF group.
A year later the first Volvo car, called the OV 4, rolled off the production line in Gothenburg — Volvo considers this as the year it officially started as car company.
Volvo continues to toast the meal over which its founders began developing the idea of starting an auto company through a Crayfish Party. In the Philippines, the most recent was the one held on Sept. 8 together with the Nordic Chamber of Commerce in the Philippines at a Pasay City hotel. Displayed during the event were the Volvo S90 and XC60.

Shell brings out toy cars fueled by saltwater

SHELL has released toy cars propelled by electric motors with lithium batteries juiced by saltwater.
A chemical reaction creating electricity comes from the electrolytes supplied by the saltwater. The electricity produced then powers the cars’ motors. So included in every car, called Shell Saltwater Supercars, are two lithium batteries, a salt and water mixer, and a dropper.
Shell said the toy cars show children “an alternative source of energy in action.”
The four Saltwater Supercar models are also offered with customizable racetracks, which are made from Bagasse, fully biodegradable organic material containing no additive or chemicals, according to Shell. The company added it donates P2 to the Plastic Bank for every Saltwater Supercar or racetrack sold.
“At Shell, we champion innovation and new energy solutions. With the new Saltwater Supercars we hope to offer an elevated experience with toy cars, bringing cutting-edge technology to our loyal customers, and for all ages to enjoy,” said Mark Malabanan, Shell V-Power brand manager.
The Shell Saltwater Supercars and racetracks are available until Nov. 30 at participating Shell stations. They can be bought after purchasing Shell fuels and lubricants.

If you’re 40 years old and above, you would want to read this

In January this year, the official Facebook page of the local MG distributor posted the following declaration: “Only for the young. If you’re 40 and above, please buy other brands.”
As a 46-year-old person, my first thought was: WTF. My second thought was: The days of this company as the official Philippine importer and seller of MG cars are numbered.
I mean, what straight-thinking business organization would alienate the very age group that has ever heard of its brand (and has the actual means to purchase its products)? If you ever needed a concrete illustration of the idiom “shooting oneself in the foot,” this would be it.
To be fair to MG Philippines — and its very affable president, Morgan Say — the cocksure assertion seemed like an innocent attempt at going viral and making more people aware of the not-so-popular British automotive brand. Mr. Say told me at the time: “Without any intent to offend anyone, we prefer to market MG cars to the younger millennial generation. The MG brand image we are building on is to manage its client base among those who are still dynamic and innovative in their way of life and thinking. We are not after volume selling but for advising the old-fashioned generation that this is not the car brand for them. It may sound offensive if people are sensitive, and we sincerely apologize for that. However, we hope that people will respect our direction to be selective and exclusive with our client preference.”
That was it. That statement erased any doubt in my mind that the distributor didn’t have an iota of clue about what it was doing. Well-meaning, yes. Competent, no. My 40-plus-year-old self was 100% sure that Shanghai Automotive Industry Corporation (or SAIC), the Chinese automaker that now owns MG, would take back whatever license it had granted to its Philippine distributor — like a concerned mother would sternly confiscate the iPad she had bought her eight-year-old kid.
Well, my gut feel just came true. On Monday, Oct. 1, the MG brand in our market was officially turned over to The Covenant Car Company, Inc. (TCCCI). If the latter sounds familiar, that’s because it’s also the authorized distributor of Chevrolet in the country. So this makes TCCCI a two-brand operation.
An inside source tells me that “TCCCI received an invitation to meet with the representatives of MG Global to explore the possibility of distributing their products in the Philippines. After evaluating the business potential of the brand, TCCCI saw how MG could complement its overall business strategy and growth plans.”
My mental translation: “SAIC got fed up with its clueless Philippine distributor and started shopping the MG brand around.”
But seriously, SAIC is the business and technical partner of General Motors (GM) — the parent company of Chevrolet — in the very important market of China. While my source maintains that GM and MG (what a coincidence) are totally independent of each other, I am betting my well-used Corvette shirt that this deal is indeed an agreement between SAIC and GM.
Anyway, my informant also shares with me some of TCCCI’s grand plans for MG: “An independent operational team will be established to focus solely on the MG brand. Independent dealer partners will construct and establish MG showrooms nationwide. The first phase of the dealer network plan will cover Metro Manila, regional Luzon, the Visayas and Mindanao. All are expected to be completed by the first semester of 2019. To address any after-sales service concerns the motoring public may have while the dealer network is being established, independent service outlets and mobile service caravans will be accredited and designated by TCCCI, and made easily accessible. Exciting sales pop-up stores and road shows are already scheduled for the fourth quarter of 2018, so the public can have a close encounter with all the exciting, new MG products.”
The formal brand re-launch will take place on Oct. 11, where three new MG models will be introduced to our market. I hear car buyers older than 40 will like these cars.
Maybe there’s a lesson to be learned here: Do not take a dig at the age bracket of the big bosses that decide the fate of your business.

Urban, religious violence spike in Bangsamoro: Study

By Anna Gabriela A. Mogato
THE Bangsamoro region of Mindanao saw a spike in urban violence as well as inter- and intra- religious identity violence last year, a new report found. This, despite the drop in rebellion-related violence.
International Alert Philippines’ Conflict Report 2018 pointed to a string of increasing conflict caused and reinforced “by the cycle of violence in the Bangsamoro.”
The study also noted that there is a “newly-emerging strand of violence extremism” due to these combatants having experienced struggles in the past, mostly related to politics, land disputes, and identity.
The study cited the recently-formed Maute Group/Dawlah Islamiya and the Bangsamoro Islamic Freedom Fighters as having branched out from the Moro Islamic Liberation Front and Moro National Liberation Front, shifting their alliance to Islamic State of Iraq and Syria.
International Alert Senior Peace and Conflict Adviser for Asia Francisco J. Lara Jr. said in a Tuesday press briefing at the World Bank office in Taguig City that last year’s five-month siege in Marawi City was a “product” of the unrest in the region, not a cause.
“We need to look at conflict as a string of violence running alongside the main cause,” Mr. Lara said.
“We saw the case of BIFF and the Maute which had not been resolved despite having been neutralized,” he added.
International Alert Country Manager Nikki de la Rosa noted that there should still be ongoing consultations among the government, traditional leaders and clans in the region to ensure lasting peace amid the ongoing Bangsamoro transition.

Facebook just had a giant security breach. No, you don’t need to panic.

Another day, another giant privacy and security controversy, care of our friends at Facebook.
On Sept. 28, Facebook quietly published an update outlining a security issue their engineering team had discovered that affected the access tokens of nearly 50 million accounts.
Cybersecurity expert Kaspersky Labs was quick to chime in on the breach, assuaging fears that users’ accounts had been irrevocably compromised.
Whether or not Facebook is a responsible steward of the literal terabytes of data they have on each of its over two billion users is largely debatable. But as far as this security breach is concerned: your account is likely fine.
Here’s what Kaspersky had to say:
What you need to do about the recent Facebook security breach:

  • Nothing.

What you don’t need to do about the recent Facebook security breach:

  • Don’t rush to change your password. Passwords were not affected during the breach, so they’re as safe as you’ve made them.
  • Don’t panic. Even if you find yourself logged out of Facebook for some reason, Facebook says there’s no need to worry; it will have already reset the authentication token for you so that nobody but you can gain access to your account. You’ll need to log in again by entering your password and 2FA (that is, Two-Factor Authentication) code (if you have enabled it), but that’s all.
  • Don’t delete your Facebook account. Well, of course you can always do that, but this breach is not a reason to be quite that worried.

Here’s what happened:
An access token is, as Facebook describes it, basically a key to your account. If a person has it, Facebook considers that person authorized to enter that account and doesn’t request login, password, and 2FA codes. So, having stolen 50,000,000 user access tokens, the malefactors could potentially access those 50,000,000 accounts. But that doesn’t mean they got access to your passwords or somehow broke the two-factor authentication mechanism. Your password is secure and 2FA is still working as intended. But stealing a token is a way to bypass those defenses.

Facebook explains that investigation of the incident is in the very early stages, but for now they suspect that somebody found a vulnerability in their “View as” feature and exploited it, gaining access to 50 million account tokens. That’s why they have turned the feature off, reset the user authentication tokens for those accounts, and are in the process of resetting those tokens for another 40 million users who have used this feature in the past year. The last part seems like just a precaution, but at the moment, they can hardly be too careful.

When the token is reset, the person who has it can no longer access the account and will need to log in again. The malefactors don’t have your login or password, so even if you were affected initially, they can no longer pretend to be you and access the account.

Facebook promises to update the post once it’s clear what exactly happened and whether any of the affected accounts were somehow misused, but for now we suggest doing what we described in the beginning of the post: nothing.
 

Megaworld plans P500-M boutique hotel in Bacolod township

By Anna Gabriela A. Mogato
MEGAWORLD Corp. said it will be building a P500 million luxury boutique hotel in The Upper East Township, its 34-hectare property in Bacolod City, set to open by 2022.
In a disclosure to the Stock Market on Tuesday, Megaworld announced that the 48-room boutique hotel will be designed by heritage architect and conservationist Dominic Galicia to preserve the features of the heritage structures it will be built into.
The project will see the old Bacolod-Murcia Milling Co. compound’s “guest house” repurposed to serve as its main lobby.
“The entire hotel complex is anchored in the oldest structure, and it expands from this like wings, with the Ballroom Wing to the left, and the Guest Room Wing to the right,” Mr. Galicia said.
Mr. Galicia is most recently known for redesigning the much-celebrated National Museum of Natural History.
“As a landmark of Bacolod, it will express the noble intent of remembering and anchoring in a glorious past as we move towards what we dream to be a glorious future,” he added.
Megaworld Bacolod Vice President for Sales and Marketing Rachelle Peñaflorida, in the same disclosure, said that the hotel’s features can further help the meetings, incentives, conferences, and exhibitions tourism industry in Bacolod.
The hotel, to be situated along the Upper East Avenue, will house an all-day dining restaurant, ballroom, café, courtyard, swimming pool, fitness center,lanai, and a hotel bar concept Zabana Bar.

Facebook taps ‘News Feed’ head to run Instagram after founders leave

By Bloomberg
Instagram has a new boss: Adam Mosseri, who led Facebook Inc.’s news feed team for many years.
Mosseri takes on one of Facebook’s fastest-growing properties after Instagram founders, Chief Executive Officer Kevin Systrom and Chief Technology Officer Mike Krieger, resigned last week following tension with Facebook over the direction of the service, according to people familiar with the matter.
Mosseri, whose title will be Head of Instagram, announced his new role in an Instagram post posing with the founders.

Today in global market news

By Bloomberg
It took a while to get there, but the U.S., Canada and Mexico have struck a revised trade deal. Meanwhile, oil reached the highest level since 2014, and India vowed liquidity support to a debt-laden financier. Here are some of the things people in markets are talking about.
Nafta 2.0
President Donald Trump celebrated a trade deal with Canada and Mexico to replace Nafta as a “historic” win that vindicated his strategy of threatening tariffs on trade partners. Trump called the accord “the most important trade deal we’ve ever made by far.” He predicted the renamed U.S.-Mexico-Canada Agreement, or USMCA, would “easily” pass Congress after he signs it by late November. The pact could spell relief for car manufacturers including Toyota and Honda; here are some other highlights. U.S. stocks rose, as did the Canadian dollar.
Crude Surge
Oil jumped to the highest level in nearly four years as a slowdown in American drilling added to concern over supply losses from Iran and Venezuela. Crude futures gained more than 3 percent in New York on Monday. As U.S. sanctions dissuaded importers from purchasing Iranian oil, President Donald Trump and King Salman bin Abdulaziz of Saudi Arabia discussed efforts to maintain supplies. Meanwhile, the number of rigs drilling for American crude dropped for a second week, signaling a potential slowdown in output growth.
Peak Steel
The world’s largest steel market is about to go into reverse. Production in China will peak in 2018 and then shrink next year as local demand drops, according to forecasts from the Australian government, which says the shift will add to headwinds for core ingredient iron ore. After topping out at 886 million metric tons, output is expected to drop to 861 million tons in 2019 and hit 842 million in 2020, the Department of Industry, Innovation & Science said. Over the same time frame, local demand is seen contracting by 34 million tons.
India’s IL&FS Move
The Indian government, which seized control of debt-laden financier Infrastructure Leasing & Financial Services Ltd., has pledged to ensure the beleaguered lender has the money to prevent further defaults. Superseding the board of IL&FS, which has defaulted on more than five of its obligations, was essential to restore the confidence of the financial markets, according to a statement by the finance ministry on Monday. Government officials on Monday ousted IL&FS’s management and instituted a new six-member board. The dramatic move underscored the government’s concern that defaults at the systemically important shadow bank may spread to other lenders. The nation has sought to take control of a company on just two prior occasions, and only followed through once, with Satyam Computer Services Ltd. in 2009.
Defensives Lead Nikkei Charge
Japan’s blue-chip Nikkei 225 Stock Average soared to its highest in almost 27 years, but it’s not the usual suspects — the country’s giant exporters — that have been leading the charge this year. Retailers, drugmakers and other more defensive shares have been driving the increase. The Nikkei’s turnaround has been fast and decisive. It’s up almost 9 percent from a recent low on Sept. 7. But while the recent rally has been brisk, some money managers say it’s lacking in confidence. “People had doubts over whether the global economy will continue to fare well,” said Kiyoshi Ishigane, chief strategist at Mitsubishi UFJ Kokusai Asset Management Co. in Tokyo. “They had little choice but to go for defensives.”

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