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Everyone should be a populist and nationalist

I attended a Philippine-US relations forum in Makati last week. During one Q&A, the discussion drifted on the rise of so-called “authoritarian” regimes worldwide, particularly Asia.
The usual tropes were mentioned: the rise of populism, the return of nationalism, and xenophobia.
Bottomline, of course, what most wanted to say was: blame Trump (or Duterte).
But that’s being overly academic.
First of all, what is wrong with populism? Properly defined, a populist is “a believer in the rights, wisdom, or virtues of the common people” (see Merriam-Webster).
That pretty much sounds like a person in favor of a democratic form of government. One tweeter notably declared: “everyone is populist to some degree because elections are a popularity contest.”
Indeed. Hence, the popular (but ultimately vapid) slogan of Barack Obama: “Yes, we can.” Also his equally narcissistic: “We are the ones we’ve been waiting for. We are the change that we seek.” Which CNN later on adopted by employing Gandhi’s “Be the change that you wish to see in the world.” The leftists have their own particular chant built on people power: “The people, united, will never be defeated.”
So, deferring to “the people” didn’t seem to be a bad idea, even for the Left. Noynoy even referred to the Filipino as “his boss.”
So what changed?
Why is it that policy makers and academics that seem so enamored with the idea of “people empowerment” are now all of a sudden so against populism?
Trump and Duterte happened.
And with them policies crafted not from the halls of government or academia but from the grassroots: peace and order, jobs, income.
Executed by people who are not considered policy or academic experts but people with lives outside politics: businessmen, soldiers, and other various professionals.
With that, the elite political class, the class that thinks they know all the answers, were sidelined.
And now populism is suddenly a dirty word, associated with demagoguery (when a few years ago, Noynoy and Obama actually substituted oratory for governance) and intellectual mediocrity (considering that it is now that inflation is manageable, jobs are back, and — as far as the US is concerned — global security seems to be on the right track).
Yet what is being ignored in all this is that our constitutional system is based on populism. Our Constitution was authored by “the sovereign Filipino people.” A constitutional system described as “of the people, by the people, for the people.” And a citizenry, mind you, that loves invoking the phrase: vox populi vox dei.
And, as the Washington Post’s Marc Thiessen puts it, conservatives have long been populists “because we believe that millions of individuals can make better decisions about their own lives than a cadre of elite central planners ever could. As the founder of the modern conservative movement, William F. Buckley, Jr. famously declared, ‘I should sooner live in a society governed by the first two thousand names in the Boston telephone directory than in a society governed by the… faculty members of Harvard University’.”
In any event, with the rising distaste for populism comes the aversion to nationalism.
Again, people hate the word because Trump once said: “I am a nationalist.”
But if one — particularly a president — cannot love his country then what’s he to do?
For some, the answer be a “patriot.”
But this ridiculous word game is something only the most vain of globalists can say with the straightest of faces.
Merriam-Webster again: Nationalism: “loyalty and devotion to a nation”; Patriotism: “love for or devotion to one’s country.”
There is nothing wrong with being a nationalist, at least in our own particular Philippine system: it is recognizing that we are bound together not by blood, tribal loyalty, race, or even faith. We are not a country founded on religion. We are a secular country, respecting each other’s beliefs and differences, with a reliance on the rule of law, democracy, and human rights.
This nationalism is further bound to a territory, of fixed identifiable borders. As Roger Scruton puts it, our fellow citizens are our “neighbors,” who we identify with and share common beliefs, history, and tradition.
Which thus leads to this point: perhaps countries have not shifted to authoritarianism. Perhaps leaders have not become more dictatorial. Perhaps instead what happened is that policy makers, media, the academe, shifted so far to the Left, along with it their entire intellectual framework, that what was commonsensical yesterday is now considered Right or hard-Right. Hence, almost everyone they disagree with is authoritarianism.
Effectively, yesterday’s “defenders of democracy” are todays “authoritarian strong men.”
Rubbish.
Rubbish, considering the displaced members of the chattering political class are actually free anytime and anywhere to happily accuse their governments of being authoritarian.
What citizens should do is make their voices even louder. Be heard. Ignore the derogatory labeling of policy makers and academics.
Be confident in knowing that the people are often more right than the experts will ever be.
 
Jemy Gatdula is a senior fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.
jemygatdula@yahoo.com
www.jemygatdula.blogspot.com
facebook.com/jemy.gatdula
Twitter @jemygatdula

The freedom to fly

“Once you have tasted flight, you will forever walk the earth with your eyes turned skyward, for there you have been, and there you will always long to return.”

— Leonardo da Vinci (Italian polymath, 1452 — 1519)

While I have been to many ASEAN countries, it was only recently that I have visited some South Asian countries like India (Mumbai only), Nepal, and Bhutan, all related to attending the Asia Liberty Forum (ALF) or the Economic Freedom Network (EFN) Asia conferences.
The big cities in our ASEAN neighbors are modern and developed, starting from their big and modern international airports. Flying from Manila is also easy because of (a.) the short distance, maximum four hours direct flight; (b.) lower fares due to many competing airlines; and, (c.) visa-free entry for ASEAN visits of less than 30 days.
The South Asians have a different environment. Bhutan and Nepal are very cold as they are up in the high Himalayan mountains — Mt. Everest can be seen from a distance when flying to Paro or Kathmandu. There are also no direct flights from Manila so the cost of travel is high, and there is a visa fee to pay.
All of my past trips to attend ALF and/or EFN conferences were sponsored by EFN Asia and the Friedrich Naumann Foundation for Freedom (FNF), except for the Nepal trip in 2015 where I was sponsored by Media 9 and Business 360 magazine, where I was a contributor for free market topics.
airplane airport
I will attend the ALF 2019 in another South Asian country, Sri Lanka, from Feb. 28 to March 1. One thing that is weird going there is that almost all airlines from East Asia — Malaysia, Singapore, Thailand, Hong Kong, South Korea, etc. — arrive in Colombo airport in the late evening to early morning. Only the Sri Lankan airline flying from these countries arrives in Colombo at day time. For me this is indirect local airline protectionism.
I checked the tourism numbers — South Asia is not exactly a favorite destination for many international visitors, unlike many ASEAN countries. India, with its population of 1.3 billion, attracted only 15.5 million foreign visitors in 2017, nearly comparable with Singapore’s (population 5.7 million) 13.9 million visitors (See Table 1). I did not include in the list countries with very small numbers of foreign visitors in 2017 like Brunei (0.26 M), Bhutan (also 0.26 M) and Nepal (0.94 M).
International Tourism in ASEAN and South Asia
Next, I wanted to know how many of those international visitors in the Philippines and its neighbors are from the ASEAN. The numbers are a bit surprising — less than half a million of the Philippine’s international visitors are from our neighbors in the ASEAN. We are not attractive to our neighbors, like Myanmar (See Table 2).
Intra- and Extra-ASEAN International Arrivals, Millions
Malaysia, Laos, and Cambodia are attractive to their neighbors — partly because one can travel from Singapore to Kuala Lumpur by car or bus in five hours or less, with no need to fly; and partly because Malaysia has huge competing airlines that cater to all visitors, from the rich to poor travellers seeking budget airlines and landing in budget airport terminals.
Thus, the Malaysia experience can be a model for the Philippines in attracting more foreign travelers. Indonesia too — it is expanding its airports to be bigger, more modern. I saw the new Soekarno Hatta Airport last year when I attended ALF 2018 in Jakarta and I was surprised by its modernity. The airport’s passenger traffic rose from 57.8 million in 2012 to 65.7 million in 2018.
More big domestic airlines, more regional airline competition, more budget terminals alongside main terminals to attract more budget airlines local and foreign — we need them. The freedom to fly for more Filipinos and more foreigners seeing the Philippines should increase.
 
Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.
minimalgovernment@gmail.com

Finding the ‘Next China’ will confound investors

By Shuli Ren
Bloomberg Opinion
THERE’S an old Polish saying that when two people quarrel, a third will benefit. And so global investors are now looking for the country best positioned to gain from the US-China trade war.
China has been good to foreign investors over the past decade. Since the collapse of Lehman Brothers Holdings, Inc. in 2008, the MSCI China Index has offered an annualized 8.6% return.
But last year was bruising. China staged one of the world’s worst stock routs, with the benchmark MSCI index tumbling about 20%. Meanwhile, the yuan flirted dangerously close to the psychologically important seven-per-dollar, a level that hadn’t been reached since the global financial crisis, fueling concerns that Beijing may weaponize the currency.
Is it time to ditch China and look elsewhere? With the higher tariffs that China, Inc. faces, US companies will be tempted to buy semiconductor parts from Malaysia, data storage units from Thailand, or cotton from Pakistan. Indeed, some asset reallocation is already taking place. Vietnam, for instance, was the only emerging Asian nation outside of China that received net foreign stock inflows last year. Many investors in the region have been betting the Southeast Asian nation will be the big winner out of the US-China spat. Multinationals including Samsung Electronics Co. relocated factories there even before the trade war started.
Still, if you’re investing in dollars, moving assets out of China is nice only in theory. The devil is in the execution.
Any savvy global investor deciding where to deploy money at the beginning of the year has exchange-rate risk on their mind, as emerging-markets currencies are volatile and protecting against sudden movements can be expensive. For instance, in the first week of 2019, hedging the Indonesian rupiah or the Indian rupee with a one-year forward would set you back 5.4% and 4.2%, respectively. If you add the fact that stocks in those two nations already trade at elevated multiples of 16.8 times and 21.6 times earnings, this means any capital gain would likely need to come from earnings growth instead of from multiple expansion. Suddenly these hot emerging markets no longer look so appealing.
Hedging the yuan, on the other hand, is cheap this year. Using one-year forwards would cost you only 0.2 percent, peanuts compared with 5.6% or 2.2% at the beginning of 2017 and 2018, respectively. What’s more, China stocks now trade at only 11.5 times earnings, 28% cheaper than a year ago. From this view, China doesn’t look so bad, even with a trade war and economic slowdown.
Pressure on the yuan was in part helped by the US Federal Reserve’s sharp dovish turn in early January. The implied rate of December 2019 federal funds futures fell from 2.93% in early November to 2.37% in the first week of 2019. In other words, futures traders see no further tightening whatsoever this year.
It can’t be stressed enough how important a stable currency is for emerging markets. If you doubt the yuan, compare it with the Turkish lira, Russian ruble, or Brazilian real, which have all been on roller coaster rides. Foreigners that rushed into those markets over the past decade could only groan with envy as China’s stocks outperformed.
In the currency space, the most fragile economies are the ones suffering from twin deficits, in the fiscal and current accounts, which are indicators that governments can’t balance their budgets and populations consume more than they earn. Brazil, India, Indonesia, South Africa, and Turkey fall into this category. Even if smaller nations such as Vietnam follow China’s export-oriented model, boosting economic growth by shipping apparel, electronics, and toys to the world, a current-account surplus is likely to be short-lived.
China’s path illustrates that point. Just a decade ago, the nation was the root cause of global payment imbalances, with a current-account surplus exceeding 10% of its 2007 gross domestic product. But the surplus dwindled to 0.4% of GDP last year, and the nation may well dip into a deficit in 2019, reckons Morgan Stanley. This is because, contrary to President Trump’s perception, China is no longer a frugal nation that sells a lot abroad and buys little in return. In the third quarter of 2018 alone, China’s middle class spent about $63 billion on overseas travel, eating into the exporters’ hard-earned surplus.
Indeed, China would have dipped into a current-account deficit a lot earlier if not for its heavy industries. Like in other nations, the defining features of a middle-class family in China are home ownership, a car, and a few credit cards. Nowadays, Chinese buy more than 20 million passenger vehicles every year — but more than 90% of them were manufactured at home. As a result, China’s net imports remained stable at about $42 billion a year.
Consumer products such as cars and household electronics are scale businesses, and thanks to its one billion-plus population, China can support such industries. But the economics don’t make sense for smaller nations, which have to import goods including cars.
To maintain an account surplus, smaller countries could try to remain frugal, exporting and not spending overseas. But that won’t produce another China, where billions of dollars of wealth has been created over the past decade. A China 2.0 requires young, eager workers who’ll build manufacturing hubs and, in turn, use fatter paychecks to buy their first cars or designer bags.
Forty years after Beijing embraced capitalism, the yuan remains heavily managed. But it’s not a bad thing for foreigners. As for the entire emerging-markets asset class, an alternative to China hasn’t materialized yet. Investors better get used to the notion that China is here to stay.
 
Shuli Ren is a Bloomberg Opinion columnist in Hong Kong covering Asian markets.

Choosing a new World Bank boss is a chance to rethink

Bloomberg Opinion Editorial
PRESIDENT TRUMP has nominated David Malpass, a senior Treasury official and former Wall Street economist, to succeed Jim Yong Kim as next leader of the World Bank. Rather than rubber-stamp the US nomination, as the bank’s other member governments are generally inclined to do, they should ask whether Malpass is the best available candidate — and, even more important, start an open discussion about what the job should entail.
By longstanding agreement, the US chooses the head of the World Bank, and Europe’s governments choose the head of the International Monetary Fund. This arrangement is increasingly irksome to other countries, and ever harder to justify. The US is the largest shareholder in the bank, with roughly 16% of the votes; Europe’s governments have 26%. Acting together, they’ve been able to exert control. But it’s in the interests of all concerned to find the best qualified leader, and that requires a genuinely competitive process.
Malpass is coming in for criticism, partly no doubt just because he is Trump’s choice. It’s also true that he’s expressed doubts about globalism in general and the role of multinational institutions in particular. He’s been roundly rebuked, in addition, for dismissing concerns about the economy in 2007, just before the crash. He was hardly alone in that, however. For what it’s worth, his experience as a finance professional and high-ranking economic official make him a lot better prepared for the role than his predecessor was.
What matters more than credentials, though, are the ideas that the next president will bring to the job. The World Bank’s proper role is indeed in doubt. Frequent reorganizations — including the one undertaken by Kim — have been heavy on turmoil, recrimination, and movement of office furniture, but not so potent when it comes to envisioning what the bank should be doing.
Malpass has asked whether the bank should continue to lend to China and other non-poor countries, for instance — and that’s a good question. The bank describes China as an “upper middle-income country.” It has $3 trillion in foreign reserves, a handsome surplus of domestic saving over investment, and a far-reaching foreign-lending program of its own. It shouldn’t need to tap a taxpayer-supported development institution for cash.
This is not just about China. The acute shortage of capital for development that justified the bank’s creation more than 70 years ago no longer exists. Private capital markets can do all the lending the bank was originally designed to do.
All this has been well understood for years, if not decades. But the radical repurposing the bank requires still hasn’t happened. The World Bank needs to move away from outmoded development lending toward supporting programs that the private sector cannot adequately finance — including programs to supply global public goods, especially efforts to mitigate climate change; programs that prioritize knowledge and information over money; and initiatives to improve the lives of the poor in the countries that global markets have left behind.
None of these ideas are new. Indeed, they are drearily familiar. They need to be recognized as urgent. The process of naming a new World Bank leader should provoke a public debate about ends and means, and demand a detailed plan of action from each of several strong candidates. It’s entirely within the power of the bank’s board to insist on this. The governments concerned owe it to the taxpayers who support the institution.
 
Editorials are written by the Bloomberg Opinion Editorial Board.

None authorized by Duterte for campaign fund

MALACAÑANG HAS warned that President Rodrigo R. Duterte’s name is being used by some “unauthorized” groups to “solicit or accept campaign contributions” for his Senate bets.
“It has come to the attention of the Office of the President that President Rodrigo Roa Duterte’s name has been used or dropped to solicit or accept campaign funds, contributions or materials in favor of the senatorial candidates he has personally endorsed,” Presidential Spokesperson Salvador S. Panelo said in a statement released to reporters on Wednesday night, Feb. 13.
He said that Mr. Duterte “has not authorized anyone in either the private or public sector, including government agencies like the Bureau of Customs, to resort to such illegal undertakings.”
Mr. Panelo said the Filipino people by now “should know that such a practice goes against the very principle which this Administration protects and advocates.”
He said further that any individual, “regardless if one works in the government as an official or employee, who is or has been made the subject of solicitation using the name of the President, whether deliberate or inadvertent, should report immediately such fraud to the National Bureau of Investigation or to other law enforcement agencies.”
“This is yet another money-making scheme and those involved in this scam shall be dealt with in accordance with law,” the spokesman said.
The President was set to attend on Thursday afternoon the kick-off rally of the ruling Partido Demokratikong Pilipino-Lakas ng Bayan (PDP-Laban) in San Jose del Monte City, Bulacan.
PARTISAN ACTIVITIES
Meanwhile, the Presidential Anti-Corruption Commission (PACC) and the Commission on Elections (Comelec) called on government officials and employees to refrain from partisan activities relating to the midterm elections in May.
In a press conference on Thursday, PACC Chair Dante L.A. Jimenez said politicians need to heed the words of Mr. Duterte, who has previously stressed that government officials should not be biased with certain candidates.
“I would like to warn all those government agencies under the control and the supervision of the President to take the words of the President very seriously,” the PACC chair said.
In the same press briefing, Comelec Spokesperson James B. Jimenez said they are looking forward to their partnership with the PACC intended to address the perennial problem of government officials committing partisan political activities.
“That has always been a problem in terms of enforcement because syempre may mga (of course there are) government officials na sumisimple na nakakalusot sa kanilang (who do it subtly and get away with their) partisan political activities, but with PACC on the job and PACC on the lookout, we hope that we will remove the motivation of these people to engage in partisan activities,” Mr. Jimenez said.
The Comelec spokesperson also raised the issue of candidates using government workers to aid their campaign.
He said, “If an agency of a government were to deploy workers to put up streamers or banners of a political candidate, then we have a case for partisan political activities.”
The Comelec will flag the use of government vehicles for motorcades and other resources for political activities.
Section 261 Article 22 of the Omnibus Election Code states that intervention of public officials and employees and use of public funds and facilities for campaigning are some of the prohibited acts during the election period.
PACC Executive Director Eduardo V. Bringas said that more than the Omnibus Election Code, partisan political activity is against the 1987 Constitution.
“Under Article, Section 2, paragraph 4 of the Constitution, it says that no officer or employee of the Civil Service shall engage directly or indirectly in any election hearing or participate in the campaign,” he said. — Arjay L. Balinbin and Gillian M. Cortez

Ressa out on bail as Keng asserts Rappler never got his side

JOURNALIST MARIA A. Ressa has posted a P100,000 bail and been freed after an overnight detention at the National Bureau of Investigation following her Feb. 13 arrest for the cyber libel complaint filed by businessman Wilfredo D. Keng.
Mr. Keng, in a statement through his legal counsel, welcomed the charging of Ms. Ressa and emphasized that he is “committed to see this legal battle to the very end.”
He also said that online new site Rappler, where Ms. Ressa is chief executive officer and executive editor, never attempted to get his side or fact-check the allegations against him and that he never had criminal records.
The Department of Justice (DoJ), in a Jan. 10 resolution, indicted Rappler, Inc. Ms. Ressa and former researcher Reynaldo Santos, Jr. for cyber libel over an article published on May 29, 2012 titled “CJ Using SUVs of Controversial Businessman.”
The article, updated on Feb. 19, 2014, tagged Mr. Keng, the alleged owner of the vehicle used by former chief justice Renato C. Corona, as involved in various illegal activities.
Mr. Keng said that with the development in the case, “it is thus high time that we remember that the foundation of our independence, democracy and freedom is based on one simple truth: no one is above the law.”
“As I pursue this case to its just conclusion, I pray that the dispensation of justice be lawful and swift in recognition of the global platform of the perpetrators,” he said.
The businessman also noted that his complaint is a “test case” on the how the judicial system in the country will “fare against the dangerous precedent that is being set by one reckless and irresponsible member of the media and of the online community.”
Ms. Ressa’s lawyer, Jose Jesus M. Disini, Jr.,, said they will file a motion to quash the information filed by the DoJ before the court last Feb. 6.
“The judge basically agrees with the probable cause of the Department of Justice,” Mr. Disini told reporters. “What we will do is we will file a separate motion to question what was filed and try to have it quashed.”
For her part, Ms. Ressa said her arrest is a demonstration of “abuse of power and weaponization of the law.”
“This isn’t just about me, and it’s not just about Rappler. The message the government is sending is very clear. And someone actually told our reporter this last night, ‘Be silent or you’re next.’ So I’m saying and appealing to you not to be silent even if and especially if you’re next,” she told reporters after posting bail.
She also hit Justice Secretary Menardo I. Guevarra, saying that her case was due to his actions.
“DoJ, Secretary Guevarra who I thought is professional, these are your actions. The ripple effects are what we feel as a society but you don’t want to be known as Secretary of Injustice. I also have the right to hold you accountable. I am a citizen of this country and you can’t violate my rights,” she said.
The DoJ, on the other hand, disputed “unfounded allegations” that the arrest of Ms. Ressa is an attack against press freedom.
In a statement issued by Undersecretary and Spokesperson Markk L. Perete, the DoJ said the courts have consistently held that libel “does not enjoy protection” under the Constitution.
“It is therefore irresponsible to claim that press freedom is being curtailed because Ms. Ressa was arrested and faces prosecution for libel. Certainly, the freedom of the press, of speech and of expression, do not give any person — whether journalist, a blogger, or any person of whatever occupation —t he license to engage in libel,” Mr. Perete said.
The DoJ also emphasized that Ms. Ressa has the opportunity to defend herself and disprove the accusations against her.
The arrest of Ms. Ressa has been widely criticized by local and foreign personalities, organizations, and institutions.
Speaking at Naga City on Thursday, Vice President Maria Leonor G. Robredo said the harassment on Rappler was reminiscent of martial law under former dictator Ferdinand E. Marcos.
The Commission on Human Rights (CHR) said the rule of law must prevail in the case of Rappler and Ms. Ressa.
“As there are questions on the arrest of Rappler chief executive officer Maria Ressa, we urge the government to ensure Constitutional guarantees, including due process and equal protection of laws, are equally applied to her,” said CHR spokesperson Jacqueline Ann de Guia on Thursday.
Meanwhile, David Kaye, United Nations (UN) Special Rapporteur on the promotion and protection of right to freedom of opinion and expression, sees the arrest as “inconsistent” with the Philippines’ international obligations on freedom of expression.
“Let’s be clear: this very serious escalation of media inconsistent with Philippines obligations to promote and protect freedom of expression,” he said on Twitter.
The Philippines is a state party in the International Covenant on Civil and Political Rights (ICCPR), a treaty adopted by the UN General Assembly in 1966.
Opposition lawmakers also expressed condemnation, including detained Senator Leila M. De Lima.
“For DoJ to give due course to this case, in spite of its clear infirmities, is demonstrative of an ongoing vendetta against the media outfit,” she said.
International groups also expressed disappointment.
International Center for Journalist (ICFJ) said on Wednesday that “journalism is not a crime.”
“We are outraged over Maria’s arrest,” said ICFJ President Joyce Barnathan in a statement.
The Foreign Correspondents Association of the Philippines (FOCAP) also flagged the incident.
“We will continue to hold those in power led by President Rodrigo R. Duterte or any other leader and their administrations accountable every time we need to. We will speak truth to power with all independent media across the Philippines,” said FOCAP President Jamela Alindogan in a statement.
In Twitter post, CNN Chief International Anchor Christiane Amanpour said: “You know a government is desperate when they arrest a journalist.”
Former US Secretary of State Madeleine Albright described the arrest as “outrageous.”
Meanwhile, Ateneo de Manila University President Ramon Jose Villarin, a Jesuit priest, encouraged everyone to “speak when we see things which are not right.”
“In an atmosphere of fear and silence, we are obliged to speak when we see things which are not right, even if doing so can bring individuals and institutions to peril. Speaking truth can be daunting but the greater imperative is to stand our ground against those who sow fear when the truth is spoken,” said Mr. Villarin in a statement on Wednesday night.
De La Salle Philippines President Armin A. Luistro also made a statement on Wednesday through his Instagram account.
“Let’s defend press freedom. Let’s make our voices heard. Let’s vote with our feet and stand with Maria Ressa,” said Mr. Luistro.
The University of Santo Tomas Journalism Society questioned the cyber libel case filed against Ms. Ressa. — Vann Marlo M. Villegas and Vince Angelo C. Ferreras

Peso plunges vs dollar

FOR Friday, the peso is expected to trade between P52.30 and P52.50.

THE PESO plunged against the dollar on Thursday propelled by optimism on the US-China trade negotiations.
The local unit closed Thursday’s session at P52.38 versus the greenback, 25 centavos weaker than the P52.13-per-dollar finish last Wednesday.
The peso traded weaker the whole day, opening the session at P52.24 against the greenback. It declined to as low as P52.39, while its best showing stood at P52.185 per dollar.
Trading volume thinned slightly to $1.097 billion from the $1.098 that switched hands the previous day.
“For the past few days, the peso-dollar movement was quite hard to predict. I’m not sure if there’s demand for the dollar, but it looks like many are trying to break the resistance levels,” a foreign exchange trader said in a phone interview.
The trader added that the dollar was strong overnight due to a slew of factors, including the weak euro as well as market optimism to political developments in the US such as its trade talks with China.
In a report from Reuters, US Treasury Secretary Steven Mnuchin said he was looking forward to the three-day deputy-level meetings in Beijing as it moved to a higher level in attempts to de-escalate a tariff war ahead of the March 1 deadline.
American tariffs on $200 billion worth of Chinese goods is scheduled to be increased to 25% from 10% if no deal was reached within the 90-day truce.
Meanwhile, President Donald J. Trump is set to sign a border security deal to avoid another partial government shutdown.
Last month, Mr. Trump decided to end a 35-day state shutdown, the longest to date, without securing funding to his proposed southern border wall.
“Combining all these factors, it led to a stronger dollar against major currencies and the peso as well,” the trader added.
Meanwhile, another trader said the peso depreciated after the US inflation report came out stronger than expected.
The US consumer price index grew 1.6% year-on-year in January, the slowest since June 2017 and the 1.9% annual pace in December.
“The markets focused to the unchanged core inflation data both on an annual and monthly basis, which eased off some dovish expectations that the US economy might be starting to show signs of slowdown as have been observed in other developed economies,” the other trader said in an e-mail.
For today, the second trader expects the peso to trade between P52.30 and P52.50, while the other gave a slightly wider P52.30-P52.55 range. — K.A.N. Vidal

Bourse breaks 4-day fall, but ends short of 8,000

THE Philippine Stock Exchange index (PSEi) snapped its four-day losing streak on Thursday as foreigners returned to buying mode, but this was not enough to pull the bourse back above the 8,000 mark.
PSEi rose by 0.89% or 71.01 points to finish 7,991.25 yesterday, while the broader all-shares index likewise gained 0.82% or 39.65 points to end 4,851.64.
“Philippine shares finally charged ahead after successive profit-taking sessions with major indices nearing overbought, more hope on a trade deal being reached between US and China and, the US Core CPI (consumer price index) being firmer,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.
Chinese President Xi Jinping is set to meet key members of a US trade talks delegation in Beijing on Friday, which is seen as a positive step towards arriving at a concrete deal before their 90-day truce expires on March 1.
Mr. Limlingan also noted that US core inflation clocked in at 2.2% in January, surprising economists.
These developments propped up Wall Street’s main indices overnight: the Dow Jones Industrial Average by 0.46%, the S&P 500 index by 0.3% and the Nasdaq Composite index by 0.08%.
Many of Asia’s major indices, however, retreated: Japan’s Nikkei 225 by 0.02%, the Shanghai SE Composite by 0.05%, Hong Kong’s Hang Seng by 0.23%, while South Korea’s KOSPI Index surged 1.11%.
For AAA Southeast Equities, Inc. President William Matthew M. Cabangon, PSEi will need market-moving good developments to help sustain an ascent. “Over the last few years, the market has believed ‘no bad news means good news’, leading to rallies. Now, it seems like ‘no good news means bad news’,” Mr. Cabangon said in a text message. “With positive fundamental news coming out in January, it seems the market is starved for even more in order to continue its upward trajectory.”
Five of the six local sectoral indices gained: financials by 31.44 points or 1.74% to close 1,835.10, property by 66.13 points or 1.66% to 4,029.77, industrials by 110.72 points or 0.96% to 11,548.88, services by 9.01 points or 0.57% to 1,590.46 and holding firms by 4.76 points or 0.06% to 7,892.41. Only mining and oil fell this time — by 53.67 points or 0.62% to finish 8,516.19.
Turnover slimmed to P5.11 billion after some 3.79 billion issues switched hands, versus Wednesday’s 4.63 billion issues worth P7.27 billion. Stocks that gained outnumbered those that declined 115 to 92, while 39 ended flat.
Foreign investors returned to net buying mode with P251.90-million net purchases, versus Wednesday’s P246.03-million net sales.
Thursday’s list of 20 most active stocks showed only five declined: Xurpas, Inc. (down 4.79%), GT Capital Holdings, Inc. (-2.67%), Petron Corp. (-1.33%), JG Summit (-0.71%), and Ayala Corp. (-0.43%).
Those that gained included Filinvest Development Corp. (10.94%) and Bloomberry Resorts Corp. (3.25%). — Arra B. Francia

SM North EDSA Complex declared as IT Park zone

PRESIDENT RODRIGO R. Duterte has formally “created and designated” a 26,741 square-meter (sq.m.) area at the EDSA corner North Avenue in Quezon City as an Information Technology Park, which will be known as the SM City North EDSA Complex.
Malacañang released a copy of Proclamation No. 672 on Thursday, citing that the President’s decision is “upon the recommendation of the Board of Directors of the Philippine Economic Zone Authority.”
The proclamation is “subject” to the provisions of Republic Act No. 7916, the Special Economic Zone Act of 1995, as amended.
The President has also signed Proclamation No. 673, creating and designating a building, which will be known as the Milestone at Fifth Avenue, and the land on which it stands, as a special economic zone (SEZ).
The site, covering more than 27,000 sq.m., is located at 4th and 5th Avenues at the Bonifacio Global City in Taguig City.
Locators at IT Parks and SEZs get investment incentives. — Arjay L. Balinbin

Locsin in Hungary to strengthen ties

Foreign Affairs Secretary Teodoro L. Locsin Jr. with Hungarian National Assembly Speaker Laszlo Kover. PHOTO BY DFA

FOREIGN AFFAIRS Secretary Teodoro L. Locsin, Jr. is in Hungary for an official visit to strengthen relations between Manila and Budapest, the Department of Foreign Affairs (DFA) said on Thursday. Mr. Locsin is scheduled to meet his counterpart Hungarian Foreign Minister Peter Szijjarto “to discuss bilateral relations as well as regional and global developments.” He also had a courtesy call with Hungarian National Assembly Speaker Laszlo Kover. “Secretary Locsin’s visit will provide an opportunity for him to share with Hungarian policy makers, business leaders, and members of the academe developments that have been taking place in the Philippines,” the DFA said. The Foreign Affairs Secretary will also visit the headquarters of the Hungarian Water Technology Corporation, which builds water and wastewater treatment systems, flood protection infrastructures, and hydro construction structures worldwide. After his Hungary visit, the DFA said Mr. Locsin will head to Germany to attend the Munich Security Conference from Feb. 15 to 17, which will tackle European Union’s transatlantic cooperation as well as the future of arms control and cooperation in defense policy. — Camille A. Aguinaldo

SC affirms dismissal of charges vs ex-DBM usec Relampagos

THE SUPREME Court (SC) upheld the 2013 resolution and 2014 order of the Office of the Ombudsman dismissing the usurpation of authority or official function charge against Mario L. Relampagos, former undersecretary of the Department of Budget and Management (DBM). In a 13-page decision, the SC’s Third Division dismissed the petition of Negros Oriental Gov. Roel R. Degamo, which assailed the dismissal of his petition against Mr. Relampagos. The SC said that “without proof that [the Ombudsman] acted with grave abuse of discretion,” it “shall not interfere with public respondent’s determination of probable cause.” The case stemmed from the P480.78-million worth of Special Allotment and Release Order (SARO) released by the DBM following the P961.55-million requested by the National Disaster Risk Reduction and Management Council for Negros Oriental in 2012 to pay for infrastructure projects damaged by the typhoon Sendong and 6.9-magnitude earthquake. The SARO was withdrawn by Mr. Relampagos, following instructions from then Budget Secretary Florencio B. Abad, due to non-compliance with the guidelines on large-scale fund releases for infrastructure projects. — Vann Marlo M. Villegas

SWS survey: Who cares about age gap in a relationship?

FILIPINOS ARE split on whether age gap matters in a relationship, a December survey by the Social Weather Stations (SWS) showed.
The noncommissioned survey, released on the eve of Valentine’s Day, Feb. 13, also noted that half of Filipinos (51%) are also “very happy” with their romantic relationships.
The survey asked respondents: “In your opinion, does age gap matter in a relationship?” (Sa inyong palagay, mahalaga po ba ang pagitan sa edad sa isang relasyon?)
As opposed to the 50% of Filipinos who believe that age gap somewhat matters (17%) and definitely matters (33%), 41% said it somewhat does not matter (13%) and definitely does not matter (28%). Undecided respondents were at 9%.
The poll also revealed that the age gap matters most among older men aged 55 and above, compared to the younger age groups. Among women, the age gap in a relationship matters most among the youngest (18-24 age group) and oldest women (55 years old and above).
The survey also asked respondents on their willingness to have a relationship with someone 10 years old younger or older than them.
Results showed that women “are relatively unwilling” to have a relationship with a partner 10 years younger than them (23% willing, 58% not willing). Nearly half of men, or 48%, are willing while 31% are not willing.
Men aged 25-34 and 35-44 are most willing to be with a partner 10 years younger than them.
Meanwhile, women are “more willing” to have a relationship with someone 10 years older than them (54% willing, 28% not willing), compared to men with 43% willing and 33% not willing.
Both women and men aged 35-44 were among those most willing to have a relationship with someone 10 years older than them.
‘VERY HAPPY’
The December 2018 survey also showed that half of Filipinos (51%) said they are “very happy” with their love life, lower than 57% reported in 2017.
Thirty-six percent said “it could be happier,” up from the 29% in 2017. Meanwhile, 13% said they “do not have a love life,” a percentage point lower than the 14% in 2017.
A bigger portion of those who said their love life are very happy were married men and women. Meanwhile, a wish for a happier love life is stronger among those with live-in partners, the polling firm said.
Those who said they have no love life was higher among single women at 59%, compared to men at 43%.
The survey was conducted from Dec. 16 to 19, 2018 using face-to-face interviews with 1,440 adults nationwide, 360 each in Balance Luzon, Metro Manila, Visayas, and Mindanao. Sampling error margins are at ±2.6% for national percentages and ±5% for each region. — Camille A. Aguinaldo

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