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Asian markets edge up as calm returns but fears remain

HONG KONG — Asian markets edged up tentatively Thursday as a sense of stability returns after the turmoil earlier in the week, though investors remain alert to any signs of another flare up in the China-US trade spat.

Bargain buyers took advantage of the cheap valuations after Tuesday’s blow-out that came in response to the world’s top two economies threatening each other with tariffs on a mind-boggling amount of imports.

However, analysts warned the next plunge could come at any moment, while central bankers voiced concerns about the impact a trade war could have on the global economy.

US traders gave their Asian counterparts a mixed lead, with the Nasdaq hitting a new record close thanks to a surge in tech giants, while the Dow and S&P 500 finished in the red.

Tokyo ended the morning session 0.8 percent higher, with the yen weakening as investors shifted out of the safe-haven unit.

Hong Kong edged up 0.3 percent and Shanghai rose 0.5 percent — the two were the worst hit by Tuesday’s selling frenzy — and Sydney jumped more than one percent while Seoul was marginally higher.

Wellington jumped more than one percent after data showed that while New Zealand’s economy cooled in January-March, interest rates are not expected to rise in the near term.

Stephen Innes, head of Asia-Pacific trading at OANDA, said markets were “unsure if we’re in the calm after the storm, the lull between storms or even in the eye of the hurricane”.

But he added: “There’s certainly a pattern forming that while equity markets quiver during the trade dispute, stocks come roaring back with (Facebook, Apple, Amazon, Netflix and Google) consistently leading the charge.

“Despite the huge question mark over global trade, Wall Street quickly returns focus to the US economy, which there is no denying is doing exceptionally well.”

CENTRAL BANK CONCERNS
Trump’s protectionist America First agenda has also seen him threaten tariffs on steel and aluminium from the European Union and on Wednesday the bloc outlined retaliatory measures against several US goods such as blue jeans and motorcycles.

The upheaval has spooked the heads of the world’s central banks, who said Wednesday they were seeing confidence already being hit, forcing them to reconsider their forecasts for growth.

While the US economy is humming, Federal Reserve boss Jerome Powell warned at a European Central Bank conference in Portugal: “Changes in trade policy could cause us to have to question the outlook.

“For the first time, we’re hearing about decisions to postpone investment, postpone hiring.”

His remarks were in line with those of his peers including from Japan and Australia, while ECB head Mario Draghi said: “There have been lessons one can learn from the past. They are all negative.”

On currency markets the pound continues to struggle as British Prime Minister Theresa May pushed through key Brexit legislation but still faces pressure to pick up the pace of talks with the EU ahead of a planned March withdrawal.

Oil prices were mixed following a dip in US stockpiles and ahead of the start Friday of a key OPEC meeting, where kingpin Saudi Arabia and non-member Russia are pushing for an increase in output.

While a hike is expected some members of the cartel are against the move, including Iran and Venezuela who complain the proposed hike is the result of pressure from the United States.

“The market is still in search of some semblance of clarity,” Innes said, but added: “While clarity brings power, I suspect it will also bring waves of volatility as we’re indeed headed for some collision.” — AFP

Canada to legalize cannabis October 17, Trudeau says

OTTAWA, Canada  — Canada will become the first G7 country to legalize the consumption and cultivation of cannabis from October 17, Prime Minister Justin Trudeau announced Wednesday.

Both houses of parliament voted this week to legalize the drug for recreational use, making Canada the second country worldwide to do so after Uruguay’s move five years ago.

“We are committed to improving our system to better protect our youth and to take money away from organized crime,” Trudeau told a question session at the House of Commons.

He justified the delay to implement the law by noting that provinces requested the extra time to organize sales in authorized stores.

“We are accepting the request of the provinces, and we will be legalizing it as of October 17th, 2018,” Trudeau said.

Cannabis has been banned since 1923 in Canada, which legalized its therapeutic uses in 2001.

Under the new legislation, adults — either 18 or 19, depending on the province or territory — can legally buy, grow and consume cannabis in limited amounts.

Each Canadian household will be allowed to grow up to four plants at home, and one person may carry up to 30 grams (one ounce) of the drug in public.

Just prior to the announcement, the country’s leading cannabis producers reported a surge in stocks — with market leader Canopy Grown jumping 1.7 percent to Can$43.27 ($32.51 US) — following the Senate vote to legalize the soft drug.

‘DON’T DRIVE HIGH’
Health Minister Ginette Petitpas Taylor said she was “so proud” of the move.

“This historic legislation will end prohibition and replace it with a sensible, responsible and equitable cannabis policy,” she tweeted.

Public Safety Minister Ralph Goodale warned that driving while under the influence of cannabis or other drugs — or taking cannabis into or out of Canada — will remain illegal.

“Drug-impaired driving is extremely dangerous and can ruin your life in a heartbeat — don’t drive high,” he added.

Trudeau, who in 2013 said he had smoked a joint with friends “five or six times,” justified legalization on the grounds that it would take traffickers out of the equation and protect young people.

In an interview with AFP last month, Trudeau said the world was closely following Canada’s plans and predicted several nations would follow suit.

“There is a lot of interest from our allies in what we’re doing,” he said.

“They recognize that Canada is being daring… and recognize that the current regime (of prohibition) does not work, that it’s not preventing young people from having easy access to cannabis.”

The government will gain revenue from a market whose estimated value is Can$6-7 billion.

For each gram of cannabis sold at or below $10, a Can$1 excise tax will be imposed, and distributed between the federal government (receiving a quarter of the funds) and the provinces.

Federal and provincial consumption taxes will also apply — varying between 10 to 15 percent depending on the province.

Finance Minister Bill Morneau has estimated Can$400 million in fiscal revenue, with a goal to keep prices low in order to end the black market for the drug. — AFP

Global stocks mixed amid lingering trade war fears  

NEW YORK — World stock markets were a mixed bag on Wednesday as some investors fished for bargains and others gave in to anxiety over simmering trade tensions between China and the United States.

London and Frankfurt edged higher, mirroring earlier gains in Asia, while Paris was down at the European close.

Wall Street stocks were also mixed, with the Nasdaq jumping to a fresh record close and the Dow dipping.

Large tech companies such as Facebook and Microsoft scored solid gains, while Twenty-First Century Fox surged 7.5 percent after Disney lifted its bid for key assets of the media giant in the latest move in a burgeoning bidding war with Comcast.

Analysts said many market players could not get themselves to believe that US President Donald Trump would take the world into an all-out trade battle.

“The trade tensions will fade somewhat in coming months either because Trump finally strikes some trade deals with China and possibly even with the big EU or because markets and businesses get used to the noise,” said Holger Schmieding at Berenberg.

“On balance, we remain cautiously optimistic that Trump will either go for deals or at least not escalate tensions further and further throughout the summer,” he said.

But analysts also warned that fresh retaliatory moves could trigger another markets dive.

“Global equity bears (sellers) could transform the current rebound into a classical dead cat bounce if trade tensions between the United States and China continue to escalate,” predicted Lukman Otunuga, at FXTM.

European Trade Commissioner Cecilia Malmstrom said retaliatory tariffs against US goods such as blue jeans and motorcycles would go into effect Friday in response to US tariffs on imported aluminum and steel.

“We did not want to be in this position. However, the unilateral and unjustified decision of the US to impose steel and aluminum tariffs on the EU means that we are left with no other choice,” Malmstrom said in a statement on Wednesday.

US Commerce Secretary Wilbur Ross was grilled by US Senators over Trump’s trade policies, with Republicans such as Utah’s Orrin Hatch and Iowa’s Chuck Grassley balking at the risk to US industries and consumers.

“You are putting American jobs at risk, and you are destroying markets, both foreign and domestic, for American businesses of all types, sorts and sizes,” Hatch said.

Ross countered that in Trump’s view, the United States was already the loser in a long-standing trade war and was only now beginning to fight back.

OPEC FOCUS
Eyes are turning to OPEC’s crucial meeting as Saudi Arabia pushes, along with non-member Russia, to ease an output ceiling that has supported oil prices for 18 months.

The two major producers are facing stiff opposition at the June 22-23 gathering from nations that have benefited from the resulting higher revenues.

Saudi Arabia’s energy minister Khalid al-Falih said he was convinced OPEC members would “do the right thing” and agree to ease an oil production cap this week despite strong resistance from arch foe Iran. — AFP

‘Strong’ case for further rate hikes: Fed’s Powell

WASHINGTON — Historically low unemployment and signs of rising inflation mean there is a “strong” case for continued, steady interest rate hikes, US Federal Reserve Chairman Jerome Powell said Wednesday.

The Fed this month adopted its seventh rate hike since 2015 and forecast an accelerated pace of increases in its benchmark lending rates, predicting a total of four hikes for the year due to robust hiring and economic activity amid rising prices.

Given current conditions, and with “the risks to the outlook roughly balanced, the case for continued gradual increases in the federal funds rate is strong,” Powell said in an address to a European Central Bank forum in Portugal.

The Fed was befuddled last year by the extended weakness in inflation even though unemployment has steadily trended downwards.

But measures of price pressures now show inflation is moving towards the Fed’s two percent target. Still, the central bank has signaled it will not overreact, allowing inflation to run a little hot to offset the years when it ran cold.

Nevertheless, analysts say 2018 could be the year when a set of circumstances — higher oil prices, a weakening dollar and simultaneous global growth not to mention a brewing global trade war — at last combine with scarce labor and rising employment to drive up prices.

Powell also noted, however, that the Fed faced heightened uncertainty when determining the so-called natural rate of unemployment — the level at which labor markets are balanced — making it harder to tell when the central bank should take action.

“Natural rate estimates have always been uncertain and may be even more so now as inflation has become less responsive to the unemployment rate,” he said, according to the text of his prepared remarks.

A less direct relationship between the unemployment rate and price pressures “makes it harder to assess whether movements in inflation reflect the cyclical position of the economy or other influences,” said Powell. — AFP

China Accuses U.S. of Trade `Abuses’ as India Hits Back at Trump

THE global trade war deepened Thursday with China reiterating it will hit back if the latest tariff threats from Donald Trump materialize, while India followed the European Union in slapping retaliatory levies on U.S. goods.

China is “fully prepared” to respond to any new list of U.S. tariffs, according to a commerce ministry spokesman, who said the nation will use a combination of quantitative and qualitative measures. Trump on Monday evening ordered up identification of $200 billion in Chinese imports for additional tariffs of 10 percent — with another $200 billion after that if Beijing retaliates.

India raised tariffs on a slew of items in retaliation for the U.S. imposing higher levies on some products shipped from the South Asian nation, echoing steps taken by China, the European Union and other trading partners. The import duty on chickpeas and bengal gram, or chana, has been increased to 70 percent and will take effect from Aug. 4.

The world’s most-powerful central bankers this week warned that escalating international trade tensions have started damaging confidence among companies, threatening the global economic expansion.

Case in point: Daimler AG late Wednesday slashed its earnings outlook for the year, saying fewer Chinese consumers will buy Mercedes-Benz SUVs because of tariffs Beijing is slapping on autos imported from the U.S.

“Changes in trade policy could cause us to have to question the outlook,” Federal Reserve Chairman Jerome Powell said during a panel discussion at a European Central Bank conference in Sintra, Portugal. “For the first time, we’re hearing about decisions to postpone investment, postpone hiring.” — Bloomberg

US sanctions on Iran crude stir up a corner of the oil market

EFFECTS of the U.S. decision to renew sanctions on OPEC member Iran are already spreading beyond the world of crude to some corners of the oil market.

Refiners in South Korea, a U.S. ally as well as one of Iran’s largest customers, are shunning a type of oil known as condensate from the Islamic Republic to feed the nation’s petrochemical plants, and instead buying unusually large amounts of a processed fuel known as naphtha from elsewhere. SK Innovation Co., the Asian country’s top processor, Hanwha Total Petrochemical Co. and Hyundai Oilbank Co. have all rushed to procure supply for the next two months.

While the U.S. and buyers of Iranian crude are yet to decide on potential limits to purchases from the Middle East nation, South Korea’s preemptive move signals the widespread shifts in trading strategies that the American sanctions may spur in the oil market. If condensate cargoes are restricted by the measures, that would be a “disaster” for Asia as importers in the region would be affected the most, industry consultant FGE said last month.

“The South Koreans are currently faced with tighter supplies of condensate from other sources outside Iran, and this has forced them to turn to naphtha as an alternative and replacement to South Pars cargoes,” Den Syahril, an analyst at FGE in Singapore, said on Wednesday.

GOVERNMENT NEGOTIATIONS
Refiners in South Korea will make a final decision on whether to buy Iran’s South Pars condensate for the third quarter only after negotiations between their government and U.S. President Donald Trump’s administration are completed, people with knowledge of the matter said earlier this month. Meanwhile, they haven’t bought supplies for July.

What they are buying is naphtha, and a lot of it. The oil product is key to the production of petrochemicals used to make a wide range of consumer products. While normally it would have been produced by feeding condensate into units known as splitters, the decision to hold off purchases of South Pars supply is spurring companies to buy the fuel directly from other suppliers.

South Korea’s Hanwha Total almost tripled its naphtha purchases to fourteen cargoes in July from five in February, according to traders who asked not to be identified and data compiled by Bloomberg. Meanwhile, Hyundai Oilbank was said to have bought a cargo for August when it usually doesn’t buy any of the product. SK bought six to eight cargoes for July delivery, more than its typical monthly purchases last year.

Heavy full-range naphtha premiums have risen since Trump last month announced that sanctions against Iran will be reimposed, according to data compiled by Bloomberg. Hanwha Total paid about $9 a metric ton over Japanese benchmark prices for first-half June cargoes bought in April, while the most-recently bought August cargoes were purchased at a $17 premium.

South Korea must source 7 million barrels of alternative condensate or 3.5 million barrels of naphtha next month if it needs to replace Iranian South Pars supply, according to a June 19 report from industry consultant Energy Aspects Ltd. — Bloomberg

He has spoken: Beckham tips England v Argentina final

BEIJING, China — Former captain David Beckham has tipped England to play Lionel Messi’s Argentina in the World Cup final, reflecting rising optimism about the Three Lions’ chances after a positive start in Russia.

Beckham was speaking at a promotional event in China after England beat Tunisia 2-1 in their opening game, boosting their chances of reaching the knockout rounds.

England have long stuttered on the big stage and they last reached the World Cup quarter-finals in 2006, when Beckham was captain. Their only World Cup final was way back in 1966, when they beat Germany at Wembley.

“I believe Argentina will play against England in the final,” Beckham predicted at an event to promote China’s largest collegiate football league.

“I think obviously my choice would be England to win the competition, but that’s me being biased and passionate about my country,” he added.

But the former Manchester United and Real Madrid midfielder, a veteran of three World Cups, warned that the road ahead looked hard for Gareth Southgate’s team.

“I’m very happy that we won the first game in the group,” he said. “England is a very young team, they don’t have a lot of experience yet and the journey of the World Cup will become harder and harder because there are many good teams in the tournament.”

Beckham’s assessment may also have been influenced by the struggles of some of the top teams in the early games, including Mexico’s defeat of defending champions Germany.

Argentina, who could meet England in the semi-finals or final, drew 1-1 with Iceland in their first game as Messi, their talisman, missed a penalty.

Beckham added that China, which craves becoming a football power but has reached only one World Cup to date, was headed in the right direction — but still had a long way to go.

“In the future this country really does have real opportunities to become one of the big powerhouses in this sport, but it takes a lot of investment, a lot of hard work, but it’s going in the right direction,” he said. — AFP

Earth’s intact forests vanishing at accelerating pace: scientists

PARIS — Earth’s intact forests shrank by an area larger than Austria every year from 2014 to 2016 at a 20 percent faster rate than during the previous decade, scientists said Wednesday as the UN unveiled an initiative to harness the “untapped potential” of the land sector to fight climate change.

Despite a decades-long effort to halt deforestation, nearly 10 percent of undisturbed forests have been fragmented, degraded or simply chopped down since 2000, according to the analysis of satellite imagery.

Average daily loss over the first 17 years of this century was more than 200 square kilometres (75 square miles).

“Degradation of intact forest represents a global tragedy, as we are systematically destroying a crucial foundation of climate stability,” said Frances Seymour, a senior distinguished fellow at the World Resources Institute (WRI), and a contributor to the research, presented this week at a conference in Oxford.

“Forests are the only safe, natural, proven and affordable infrastructure we have for capturing and storing carbon.”

The findings come as the United Nations Development Programme (UNDP) and five major conservation organisations launched a five-year plan, Nature4Climate, to better leverage land use in reducing the greenhouse gas emissions that drive global warming.

“Thirty-seven percent of what is needed to stay below two degrees Celsius” — the cornerstone goal of the 196-nation Paris Agreement — “can be provided by land,” said Andrew Steer, WRI President and CEO.

“But only three percent of the public funding for mitigation goes to land and forest issues — that needs to change,” he told AFP.

Beyond climate, the last forest frontiers play a critical role in maintaining biodiversity, weather stability, clean air, and water quality.

Some 500 million people worldwide depend directly on forests for their livelihood.

A FUTURE WITHOUT INTACT FORESTS?
So-called “intact forest landscapes” — which can include wetlands and natural grass pastures — are defined as areas of at least 500 sq km with no visible evidence in satellite images of large-scale human use.

That means no roads, industrial agriculture, mines, railways, canals or transmission lines.

As of January 2017, there were about 11.6 million sq km of forests worldwide that still fit these criteria. From 2014 to 2016, that area declined by more than 87,000 km2 each year.

“Many countries may lose all their forest wildlands in the next 15 to 20 years,” Peter Potapov, an associate professor at the University of Maryland and lead scientist for the research, told AFP.

On current trends, intact forests will disappear by 2030 in Paraguay, Laos and Equatorial Guinea, and by 2040 in the Central African Republic, Nicaragua, Myanmar, Cambodia and Angola.

“There could come a point in the future where no areas in the world qualify as ‘intact’ anymore,” said Tom Evans, director for forest conservation and climate mitigation at the Wildlife Conservation Society.

“It is certainly worrying.”

In tropical countries, the main causes of virgin forest loss are conversion to agriculture and logging. In Canada and the United States, fire is the main culprit, while in Russia and Australia, the destruction has been driven by fires, mining and energy extraction.

Compared to annual declines during the period 2000-2013, Russia lost, on average, 90 percent more each year from 2014 to 2016.

For Indonesia, the increase was 62 percent, and for Brazil it was 16 percent.

The new results are based on a worldwide analysis of satellite imagery, built on a study first done in 2008 and repeated in 2013.

PROTECTED AREAS
“The high resolution data, like the one collected by the Landsat programme, allows us to detect human-caused alteration and fragmentation of forest wildlands,” said Potapov.

Presented at the Intact Forests in the 21st Century conference at Oxford University, the finding will be submitted for peer-reviewed publication, said Potapov, who delivered a keynote to the three-day gathering.

Addressing colleagues from around the world, Potapov also challenged the effectiveness of a global voluntary certification system.

Set up in 1994 and backed by green groups such as the World Wildlife Fund, the self-stated mission of the Forest Stewardship Council (FSC) is to “promote environmentally appropriate, socially beneficial and economically viable management of the world’s forests.”

Many forest-products carry the FSC label, designed to reassure eco-conscious consumers.

But approximately half of all intact forest landscapes inside FSC-certified concessions were lost from 2000 to 2016 in Gabon and the Republic of Congo, the new data showed.

In Cameroon, about 90 percent of FSC-monitored forest wildlands disappeared.

“FSC is an effective mechanism to fragment and degrade remaining intact forest landscapes, not a tool for their protection,” Potapov said.

National and regional parks have helped to slow the rate of decline.

The chances of forest loss was found to be three times higher outside protected areas than inside them, the researchers reported. — AFP

BSP tightens anew to temper inflation

By Melissa Luz T. Lopez
Senior Reporter
THE Bangko Sentral ng Pilipinas (BSP) raised rates yesterday after a similar move in May in a bid to arrest future inflation and keep local yields competitive.
The Monetary Board raised policy settings by another 25 basis points (bp) during their fourth review for the year. Rates now stand at 4% for the overnight lending rate, 3.5% for the overnight reverse repurchase rate, and 3% for the overnight deposit rate.
“In deciding to raise the BSP’s policy interest rate anew, the Monetary Board noted that inflation expectations remained elevated for 2018 and that the risk of possible second-round effects from ongoing price pressures argued for follow-through monetary policy action,” BSP Governor Nestor A. Espenilla, Jr. said during Wednesday’s briefing.
The BSP also tightened rates by 25bp during the May 10 meeting. Back then, policy makers saw adjusting benchmark yields “will help arrest” possible second-round effects of tax reform, as it would temper inflation expectations.
Now, policy makers see inflation rising further due to “future wage and price outcomes.”
“The BSP is prepared to take further policy action as needed to achieve its price and financial stability objectives,” Mr. Espenilla added.
Prices of widely used goods rose by 4.6% in May, the fastest climb seen in at least five years. This brought the year-to-date inflation tally to 4.1%, higher than the central bank’s 2-4% target.
Four of 10 economists polled by BusinessWorld last week said the BSP will likely raise rates further to catch up with above-target inflation and rising global yields as well as to lend some strength to the peso, which has been depreciating versus the dollar.
Mr. Espenilla noted that they are observing “more volatility” in the exchange rate — which ended yesterday at P53.48 per dollar — which warrants attention as this “potentially adds” to inflation dynamics.
The BSP’s decision also came a week after another 25-bp increase in rates in the United States, with Federal Reserve chair Jerome H. Powell hinting at more rate hikes in the coming months as the US economy performs “very well.”
Meanwhile, a further reduction in bank reserves was not discussed during Wednesday’s meeting, Mr. Espenilla said.
SLOWER INFLATION
The central bank expects slower inflation momentum over the next few months.
BSP Deputy Governor Diwa C. Guinigundo said they now expect inflation to average 4.5% this year, lower than the previous 4.6% forecast but still above the government’s 2-4% target for the year. By 2019, price increases are seen as averaging 3.3% from 3.4% previously.
Inflation is also seen to rise further within June to August owing to higher oil prices, coupled with higher minimum wages as well another P2.50 increase in excise taxes per pack of cigarettes, Mr. Guinigundo added.
Meanwhile, economic activity is seen to remain robust for the remaining quarters, sustaining the momentum from the 6.8% during the first quarter.
“We’re still looking out whether inflationary trends will further broaden and whether there will be second-round effects. That remains to be seen,” Mr. Espenilla added. “Right now, the action taken in our view is sufficient for the information we see at this point in time.”
“It’s still a very complex environment and there are uncertainties. What the BSP is signalling to the market is that first and foremost, we really put a lot of focus on hitting our inflation target. This year seems like it is no longer possible but definitely, we’d like to hit the target next year.”
Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, initially expected that the BSP will stay on hold but noted that markets have been “so volatile” so far.
“Thus, with so much uncertainty ahead, I am expecting more moves to stabilization with the BSP’s move to hike once more. I am expecting more hikes at this point,” Mr. Asuncion said when sought for comment.
“It is clear that their role is to help stabilize an unstable market to eventually guard economic growth.”
Analysts at Capital Economics, however, said the BSP’s latest hike may be the last for now. “The main reason why we suspect the central bank will not rush to hike rates again is that inflation is close to peaking.”
The central bank last introduced back-to-back rate hikes in July and September 2014, at a time when inflation was breaching its 3-5% target.

Experts complete first phase of mining review

By Elijah Joseph C. Tubayan
Reporter
THE RESULTS of a technical review of the 26 mining sites ordered closed or suspended by the Department of Environment and Natural Resources (DENR) are set to be presented to the inter-agency Mining Industry Coordinating Council (MICC) today.
Finance Undersecretary Bayani H. Agabin said in a mobile phone message yesterday the technical review team will discuss its findings with the MICC, after completing the first phase of the review which involved visits to mine sites, impact areas and host communities.
The review conducted by independent mining experts began in March — a little over a year since then-Environment Secretary Regina Paz L. Lopez ordered the closure of 26 mines over environmental violations.
Mines and Geosciences Bureau (MGB) Director Wilfredo G. Moncano meanwhile said in a phone interview: “We expect that the findings will show that some mining companies who fail and some that have passed their parameters.”
The first phase of the technical review addresses the legal, technical and environmental concerns on mining operations. The second phase, which covers the social and economic aspects of the mining operations, is expected to take another three months.
“From this meeting, the MICC will decide what to do with these findings,” Mr. Moncano said, but added President Rodrigo R. Duterte will make the final decision on the MICC recommendation.
To recall, the MICC in October 2017 recommended the lifting of the Department of Environment and Natural Resources (DENR) order banning open-pit mining — but the President has yet to act upon it.
“Upon learning whatever will be the findings, and what will be the penalties, mining companies still have the right to appeal,” Mr. Moncano said.
The review teams visited iron, gold, copper, chromite and nickel mines in the Cordillera Administrative Region, Cagayan Valley, Mindoro, Marinduque, Romblon, Palawan, Central Luzon, Eastern Visayas and the Caraga region.
Chamber of Mines of the Philippines Executive Director Ronaldo S. Recidoro said earlier that he welcomed the independent review initiative, as it will give its mining operations a “fair assessment.”
The MICC, which was created in 2012, is tasked to ensure full enforcement of environmental standards, review the performance of existing mining operations, ensure that mining sites operate inside designated areas, establish mineral reservations, and dispose of mine wastes.
Finance Secretary Carlos G. Dominguez III, who co-chairs the MICC with Environment Secretary Roy A. Cimatu, had previously said he wants the rest of the country’s mines be subjected to an independent audit.

Asia business sentiment slips from 7-year high

KUALA LUMPUR — Business confidence among Asian companies slipped for the first time in three quarters, on mounting worries that US President Donald Trump’s protectionist policies would trigger tit-for-tat reprisals and undermine the global trading system.
The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing a six-month outlook from 61 firms, fell to 74 in the second quarter from a seven-year high of 79 in the prior three months. The survey was conducted over June 1-15.
While a reading above 50 indicates a positive outlook, this is the first time the number has dropped since September 2017.
The risks to growth are increasingly real now, said Antonio Fatas, a Singapore-based economics professor at global business school INSEAD. “Trade war is not a risk but a reality,” he said.
“US tariffs are going up against China but also against some of its traditional allies, such as Canada and the European Union. They are all about to retaliate and today we do not see an easy way out,” Mr. Fatas said.
Mr. Trump has riled key allies with his protectionist policies, including the imposition of steel and aluminum tariffs on the European Union, Canada and Mexico. On Monday, he threatened to hit China with new tariffs on $200 billion in goods.
“Companies can try to go around tariffs by moving production to other countries, this is costly and inefficient. It is a short-term solution but not optimal,” Mr. Fatas said.
However, Malaysia-based RHB Banking Group’s chief economist, Arup Raha, noted that some Asian economies, with strong external balance sheets, are relatively resilient to global turmoil.
“Besides, global growth, especially in the US and China, is still good. Also, wage growth in Asia is signalling domestic strength,” Mr. Raha added.
China’s GDP has expanded at a steady 6.8% for three straight quarters, though there are concerns overly rapid credit growth and trade frictions could pose risks for the world’s second-largest economy.
By industry, retail and leisure was the most bullish, while construction and engineering as well as autos were the weakest. Most sectors expressed concern about trade tensions and higher interest rates, the survey showed.
Respondents to the survey include Oil Search, Hero MotorCorp., Mahindra & Mahindra, Suzuki Motor, Asahi Group, SoftBank Group, Metropolitan Bank & Trust, SM Investments, Ayala Corp., Delta Electronics, and Intouch Holdings. — Reuters

ALI unit expands Davao luxury residential project

By Arra B. Francia, Reporter
AYALA LAND Premier (ALP) is launching the second tower of its luxury residential project in Davao City within the year, after seeing strong demand for the first tower where it generated P2.6 billion in sales.
The luxury unit of Ayala Land, Inc. (ALI) said on Wednesday it has sold out the first tower of The Residences at Azuela Cove during its launch last May 12. The 21-storey seaside tower offers 70 three-bedroom units spanning 181 to 196 square meters (sq.m.), priced at around P36.7 million each.
It also has two penthouse units with four bedrooms each. The 377-sq.m. penthouse unit is priced at P80.8 million each. This indicates a selling price of P194,000 per square meter, making it the most expensive residential property in Davao City.
The company said Davao-based individuals purchased around 70% of the units, while 15% came from Manila residents that had businesses or families in Davao. The remaining 15% came from buyers abroad and neighboring provinces.
“Given the good response for the North Tower, we’re gearing up for the launch of the second tower. And we expect to launch the second tower in the next few months, so very soon,” ALP Head of Sales Paolo O. Viray said in a press briefing on Wednesday.
Mr. Viray said the company will be raising prices of units by 8-10% for the second tower, which could deliver around P3 billion in sales from 77 units.
ALP will be adding garden units at the ground floor of the second tower, instead of the amenity area that will cover the first tower’s ground level.
Mr. Viray said both towers will be completed by 2023, with turnover to residents expected by the end of that year.
Amenities include a residents’ lounge, fitness center, social hall, a 25-meter lap pool, kiddie pool, and play area.
The Residences sits on a one-hectare property within Azuela Cove, ALI’s P20-billion mixed-use estate in Davao City through a 60-40 joint venture partnership with the Alcantara Group of Companies. The project is the first residential development to rise within the 25-hectare property in Lanang, Davao.
Alcantara Group Executive Vice-President Anton M. Hechanova said this is the first high-rise development under their portfolio. Asked if they plan on pursuing more similar projects, the executive said they are still studying its prospects.
“Possible, the Alcantara group we have a lot here in Mindanao. We’re nurturing the area. Our power business alone has thousands of hectares. There are untapped areas in the power location that we might get into. At the moment we’re studying those options,” Mr. Hechanova said during the briefing.
ALI’s development of Azuela Cove started in 2017, and will continue for the next seven to 12 years.
Operational areas inside Azuela Cove include The Shops — a retail strip featuring various restaurants, a 2,000-sq.m. event tent operated by Enderun Colleges which can accommodate up to 1,500 people, and a standard-sized soccer field, basketball court, and volleyball court. The sports facilities are managed by SPARCorp., a company that includes members of the Davao sports and business communities.
Azuela Cove will also house the first St. Luke’s Medical Center outside of Metro Manila. The medical facility will have 250 beds and will be operational by 2022.

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