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US judge says Trump can use Alien Enemies Act for deportations

REUTERS

A FEDERAL JUDGE in Pennsylvania ruled on Tuesday that the US could use the Alien Enemies Act to fast-track the deportation of accused Venezuelan gang members, in what appears to be the first court ruling that backs the Trump administration’s interpretation of the 1798 law.

Judge Stephanie Haines, of the US District for the Western District of Pennsylvania, ruled that President Donald J. Trump has authority to declare the Venezuelan gang Tren de Aragua a foreign terrorist organization and deport its members under the Alien Enemies Act, but she criticized the administration’s practice of deporting people sometimes “within a matter of hours.”

Ms. Haines, appointed by Mr. Trump during his first term, ruled that the administration must give potential deportees at least 21 days’ notice and the opportunity to challenge their removals, to avoid the possibility that people who are not gang members “may be errantly removed from this country.”

She made the ruling in court papers in the case of a Venezuelan man identified as A.S.R. Ms. Haines did not rule whether A.S.R. was a member of the gang, but she said people like him must be given more opportunity to challenge their deportations.

Ms. Haines required the government to provide notice in Spanish and English, and to provide interpreters when necessary.

Lee Gelernt, an attorney with the American Civil Liberties Union who is representing A.S.R., said he would appeal.

“We strongly disagree with the Court’s decision to allow the government to continue using this wartime authority during peacetime, and will appeal that aspect of the decision,” Mr. Gelernt said.

Ms. Haines’ ruling is contrary to other federal courts’ decisions on the Trump administration’s interpretation of the Alien Enemies Act, which the president invoked in March as legal justification for deporting hundreds of men whom his administration accused of being Tren de Aragua members.

Federal judges in New York, Colorado and Texas have ruled against Mr. Trump’s use of the law to deport Venezuelans.

Ms. Haines, in her ruling, noted that her district has jurisdiction over the petition filed by A.S.R., even though he was transferred from an Immigration and Customs Enforcement facility in Philipsburg, Pennsylvania, on April 15 to an ICE detention center in Texas, despite a temporary restraining order issued that day barring his transfer from the Western District of Pennsylvania.

The Trump administration has deported alleged gang members to a prison in El Salvador under an arrangement in which the United States is paying the Central American nation $6 million. It is part of Trump’s hardline approach toward immigration.

The White House did not immediately respond to requests for comment. — Reuters

Critical infrastructure and resources: priorities for Philippine policymakers

“The seven key growth sectors identified by the Arangkada Philippines Project – a 2010 policy paper that aims to boost the Philippine economy – are still relevant today, said Ebb Hinchliffe, executive director of the American Chamber of Commerce of the Philippines, Inc. (AmCham Philippines).

There are some legislative priorities that can help streamline the business environment in the Philippines, he also told BusinessWorld. These include the separation of regulatory and development functions in various government agencies, particularly for aviation and seaports, as well as the establishment of Water Resources and Disaster Resilience departments.

AmCham Philippines, Mr. Hinchliffe added, also advocates for job creation through increased foreign direct investment.

“The more investment we get in here, the more jobs we create…What better way to lift the Philippines out of poverty than bring in more foreign direct investment and create more jobs,” he said. “Things are going in the right direction here over the last 15 years.”

Interview by Patricia Mirasol
Video editing by Jayson Mariñas

Ukraine’s Zelenskiy insists on face-to-face talks with Putin in Istanbul

Ukrainian President Volodymyr Zelensky, June 2, 2024. — REUTERS

 – President Volodymyr Zelenskiy said on Tuesday he would attend talks with Russia on the war in Ukraine this week only if Vladimir Putin is also there, and goaded him by saying the Russian leader was scared to meet him face-to-face.

The Kremlin has yet to say whether Putin will take part in the talks scheduled to be held in Istanbul on Thursday, more than three years into the deadliest conflict in Europe since World War Two.

The planned talks have become the main focus of peace efforts led by U.S. President Donald Trump, who said he would send Secretary of State Marco Rubio and has also offered to attend.

Mr. Trump is also sending senior envoys Steve Witkoff and Keith Kellogg, three sources familiar with the plans said.

Mr. Zelenskiy said he wanted to negotiate an unconditional 30-day ceasefire as a step toward ending the war, and that Putin should take part in talks because “absolutely everything in Russia” depends on him.

“We want to agree on a beginning to the end of the war,” Mr. Zelenskiy told a press conference. But he added: “He (Putin) is scared of direct talks with me.”

Mr. Zelenskiy said he expected the U.S. and the European Union to impose “strong sanctions” if talks did not take place.

Moscow and Kyiv have both sought to show they are working towards peace after Mr. Trump prioritized ending the war, which has raged since Russia’s full-scale invasion of Ukraine in February 2022.

Russian bombs killed at least three people in Ukraine’s Kharkiv region on Tuesday, a local official said.

Mr. Putin on Sunday proposed direct talks with Ukraine, after ignoring a Ukrainian offer for an unconditional 30-day ceasefire. Mr. Trump publicly told Mr. Zelenskiy to accept the proposal.

The Ukrainian leader then said he would be waiting for Mr. Putin in Istanbul on Thursday, though the Kremlin chief had never made clear he intended to travel himself.

Asked who would represent Russia at the talks, Kremlin spokesperson Dmitry Peskov said: “As soon as the president sees fit, we will announce it.”

 

TRUMP MAY ATTEND

During a speech in Saudi Arabia, Mr. Trump said Mr. Rubio would attend the talks on Thursday, as well as others. “We’ll see if we can get it done,” he said.

Mr. Kellogg, in an earlier interview on Fox Business Network, said Mr. Trump would join the talks in Istanbul if Mr. Putin showed up.

“We’re hoping President Putin shows up as well, and then President Trump will be there. This could be an absolutely incredible meeting,” he said. “We can get peace, I really believe, pretty fast if all three leaders sit down and talk.”

Mr. Kellogg told Fox Ukraine was willing to accept a “ceasefire in place” in which Ukrainian and Russian forces would each back up 15 kilometers (9 miles), creating a demilitarized zone. International forces would be stationed west of the Dnipro River as a deterrent.

Ukrainian officials have not publicly said what ceasefire terms it may accept. Russia has said it would not accept international forces in Ukraine.

Ukraine’s embassy in Washington did not immediately respond to a request for comment.

Newly elected Pope Leo promised Mr. Zelenskiy on Monday he would do his best to help bring about a just and lasting peace, a Zelenskiy aide said.

Reuters reported last year that Putin was open to discussing a ceasefire with Mr. Trump but that Moscow ruled out making any major territorial concessions and demanded that Kyiv abandon ambitions to join NATO.

Ukraine has said it is ready for talks but a ceasefire is needed first, a position supported by its European allies.

Russian Deputy Foreign Minister Sergei Ryabkov was quoted by Russian news agencies as saying Moscow was ready for serious talks on Ukraine but doubted Kyiv’s capacity for negotiations.

The agencies quoted him as saying realities “on the ground” should be recognized, including the incorporation of what Moscow calls “new territories” into Russia – a reference to territory in Ukraine that is occupied by Russian forces.

U.S. officials want Russia to agree to a comprehensive 30-day land, air, sea and critical infrastructure ceasefire, a senior U.S. official said. – Reuters

US says Cuba ‘not fully cooperating’ with counter-terrorism efforts

The U.S. State Department on Tuesday placed Cuba on a short list of countries it says did not fully cooperate with U.S. counterterrorism efforts in 2024, reversing a decision by the Biden administration the previous year.

The State Department said in statement that there are at least 11 U.S. fugitives in Cuba, including several facing terrorism-related charges and that Cuba’s government had “made clear it was not willing to discuss their return” to face justice in the United States.

Cuban Foreign Minister Bruno Rodriguez lashed out at the decision by U.S. Secretary of State Marco Rubio, a Cuban-American, saying it was based on lies.

“It’s worth reminding him that agencies of his own country in 2024 presented evidence to the contrary,” Mr. Rodriguez said on X late on Tuesday.

Biden administration officials the previous year took Cuba off the list, citing the resumption of law enforcement cooperation between Cuba and the U.S. as one the reasons why the previous designation was deemed “no longer appropriate.”

The cooperation against terrorism list, which the State Department is required by law to provide the U.S. Congress, is not the same as the State Sponsors of Terrorism list.

Biden had also removed Cuba from the State Sponsor of Terrorism list, but Trump promptly reversed the decision upon taking office, imposing harsh new sanctions on the Caribbean island nation.

The State Department on Tuesday also re-certified North Korea, Iran, Syria, and Venezuela as countries that failed to cooperate with the U.S in counter-terrorism efforts.

The non-cooperation certification results in a prohibition on the sale or license for export of defense articles and services to these countries. – Reuters

UN humanitarian chief slams aid plan for Gaza proposed by Israel, backed by US

REUTERS/MOHAMMED SALEM

 – United Nations aid chief Tom Fletcher on Tuesday criticized an Israel-initiated and U.S.-backed humanitarian aid distribution plan for Gaza as a “fig leaf for further violence and displacement” of Palestinians in the war-torn enclave.

“It is cynical sideshow. A deliberate distraction,” Mr. Fletcher told the U.N. Security Council.

No humanitarian aid has been delivered to Gaza since March 2, and a global hunger monitor has warned that half a million people face starvationa quarter of the enclave’s population.

Israel proposed last week that private companies would take over handing out aid in Gaza’s south once an expanded Israeli offensive starts in its war there, which began in October 2023 after militant group Hamas attacked Israel. Aid deliveries have been handled by international aid groups and U.N. organizations.

“We can save hundreds of thousands of survivors. We have rigorous mechanisms to ensure our aid gets to civilians and not to Hamas, but Israel denies us access, placing the objective of depopulating Gaza before the lives of civilians,” said Mr. Fletcher.

Israel has accused Hamas of stealing aid, which the militant group denies, and is blocking deliveries until Hamas releases all remaining hostages.

U.N. Secretary-General Antonio Guterres has rejected Israel’s proposal, saying in April it risked “further controlling and callously limiting aid down to the last calorie and grain of flour.”

The U.N. says any aid distribution must be independent, impartial and neutral, in line with humanitarian principles.

Fletcher said the U.N. has met more than a dozen times with Israeli authorities about their proposed aid distribution model to find a solution but without success. Minimum conditions include the ability to deliver aid to all those in need wherever they are in Gaza, he said.

Amid the stalemate, the United States last week backed a mechanism for Gaza aid deliveries to be handled by private companies, an approach that appeared to resemble Israel’s proposalbut gave few initial details about the plan.

“We will not allow the old, broken system to remain in place,” Israel’s U.N. Ambassador Danny Danon told the council. “We appreciate the efforts to build a new mechanism, one grounded in accountability.”

 

US WORKING WITH ISRAEL

Senior U.S. officials were working with Israel to enable a newly established Gaza Humanitarian Foundation to “provide a secure mechanism capable of delivering aid directly to those in need, without Hamas stealing, looting or leveraging this assistance for its own ends,” acting U.S. Ambassador to the U.N. Dorothy Shea told the Security Council on Tuesday.

She urged the U.N. and aid groups to cooperate, saying the foundation would deliver aid consistent with humanitarian principles and would “ensure its own security so that commodities reach civilians in need.”

“While some humanitarian organizations may ultimately choose not to engage in these conversations, others have chosen a more constructive path, and they will be able to deliver aid in an appropriate way, hopefully very soon,” Ms. Shea said.

Fletcher said the Israeli-designed distribution model was not the answer. This was in part because Israel said it would limit aid distribution to south Gaza during its planned offensive and people would have to relocate to access aid there.

“It forces further displacement. It exposes thousands of people to harm,” Fletcher told the council. “It restricts aid to only one part of Gaza while leaving other dire needs unmet. It makes aid conditional on political and military aims. It makes starvation a bargaining chip.”

Most of the 15-member Security Council expressed concern about the proposed aid distribution plans.

“We cannot support any model that places political or military objectives above the needs of civilians. Or that undermines the U.N. and other partners’ ability to operate independently,” Britain, France, Slovenia, Greece and Denmark said in a joint statement before the council meeting.

The war in Gaza was triggered on October 7, 2023, when Hamas killed 1,200 people in southern Israel, and took some 250 hostages, according to Israeli tallies. Since then, more than 52,700 Palestinians have been killed, according to Gaza health authorities. – Reuters

Trump’s approval rating rises to 44%; Americans worry less about recession

US President Donald J. Trump — BLOOMBERG

 – President Donald Trump‘s approval rating rose this week as Americans worried less about his handling of the economy and prospects of a recession, according to a Reuters/Ipsos poll that closed on Tuesday.

The two-day poll showed 44% of respondents approved of the Republican leader’s performance, up from 42% in a prior Reuters/Ipsos survey carried out April 25-27. The poll had a margin of error of 3 percentage points.

Approval of Mr. Trump’s economic stewardship rose to 39% from 36%.

Mr. Trump began his term with a 47% approval rating, and saw his popularity tick lower as Americans worried about a series of trade wars he launched since taking office on January 20.

Mr. Trump’s moves to hike tariffs to historic levels on major trading partners, notably China, fueled stock market declines as many economists predicted a recession was looming.

In recent weeks, Mr. Trump has eased back on his sharpest trade actions and announced on Monday morning he was slashing tariffs on China. The benchmark S&P 500 stock index is up about 17% from its lowest closing of Mr. Trump’s second administration, hit soon after he unveiled sweeping tariffs.

Among the public, concerns about recession have also eased but remain high.

Some 69% of respondents in the new poll said they were concerned about a recession, down from 76% in a Reuters/Ipsos poll conducted April 16-21. The share who said they worried about the stock market fell to 60% from 67%.

Mr. Trump has said blame for the country’s economic problems should fall on former President Joe Biden, his Democratic predecessor. Inflation surged during Biden’s presidency amid the global economic chaos of the COVID-19 pandemic, but trended lower toward the end of his presidency. Annual price inflation cooled in April, the Labor Department said on Tuesday, though economists continue to warn that Mr. Trump’s trade actions are likely to boost prices later in the year.

In the Reuters/Ipsos poll, 59% of respondents said it would be Mr. Trump’s fault if the economy falls into recession this year, compared to 37% who said it would be Biden’s fault.

The Reuters/Ipsos poll, conducted nationwide online, surveyed 1,163 people. – Reuters

Gov’t open to seasonal tariffs for rice

PHILIPPINE STAR/EDD GUMBAN

By Luisa Maria Jacinta C. Jocson, Senior Reporter

MILAN, Italy — The government is open to adopting a seasonal tariff scheme for rice imports to better protect farmers.   

“Yes, we will need to study it. I would say if there are no operational or even legal impediments to it, I would favor it. Because that way, we can stabilize farmers’ incomes and prices that farmers receive,” Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan told BusinessWorld on the sidelines of the Asian Development Bank Annual Meeting here last week.

This comes after the Federation of Free Farmers (FFF) proposed implementing levies that are strategically timed to not clash with the height of the harvest season. Seasonal tariffs would also mean variable rather than fixed duties.

Since July last year, the government slashed tariffs on rice imports to 15% from 35% until 2028 to tame spiraling prices.

Mr. Balisacan said the government would need to study how to implement seasonal tariffs, adding that these used to be a primary instrument of the European Union and the United States prior to the World Trade Organization (WTO).

“Now, we have to find out how you navigate that, because who is following WTO at this time? Everybody’s just changing tariffs everywhere, so we have to find a way to study this.”

A seasonal tariff will shield farmers from the impact of volatile prices, he added.

“What you’re actually doing is establishing a price that you would want the farmers to face. Then when the world prices drop, you raise the tariff so as to keep the price. When the world prices rise sharply, you reduce the tariff. In other words, you’re stabilizing the price faced by farmers. So that’s good,” Mr. Balisacan said.

For the past few months, rice inflation has been on a downtrend after the government implemented several measures to tame the retail prices of the staple.

Apart from lower tariffs, it also declared a food security emergency on rice in February, which allows the release of buffer stocks. The Agriculture department also imposed a maximum suggested retail price on rice earlier this year.

In April, rice inflation further contracted to 10.9% from the 7.7% decline in March.

Data from the Philippine Statistics Authority showed the average price of a kilo of regular milled rice nationwide fell by 13.3% year on year to P44.45 in April. Average prices of well-milled rice dropped by 10.4% to P50.54 while special rice decreased by 6.2% to P60.69.

Despite this, farmers’ groups have said rice prices still remain elevated in most local markets.

The Committee on Tariff and Related Matters (CTRM) is already reviewing the proposal to implement seasonal levies, Mr. Balisacan said.

“From there, they will recommend it to the CTRM Cabinet, and then it will be elevated to the Economy and Development Council, which is formerly the National Economic and Development Authority Board.”

Farmers’ groups like the FFF and Samahang Industriya ng Agrikultura have also recommended bringing the rice tariff back to 35%.

Meanwhile, the Department of Agriculture (DA) said it is also open to considering seasonal tariffs pending further study.

“Conceptually, we are receptive to the idea and we’re willing to consider many ideas,” Agriculture Undersecretary Asis G. Perez told BusinessWorld on the sidelines of the same event. “But we have to find ways to implement it and also make sure, because when you do it at the seasonal level, sometimes it might cause uncertainty and unpredictability.”

“As for the concept itself, we are receptive to considering the idea as proposed. As always, the DA is like that. We don’t shut down an idea.”

Mr. Perez said their policies must aim to “take out the unpredictability” in food supply, which affects prices.

“That’s to ensure consistency, predictability, which is, I think, a critical element for a robust food supply system. Not only for rice but for everything, any other product,” he added.

The DA in January said it was expecting the palay or unmilled rice harvest to exceed 20 million metric tons (MT) this year. In 2024, palay output declined to a four-year low of 19.09 million MT, down by 4.84% from the previous year.

Rice imports will likely decline 1.9% to 5.2 million MT this year, according to the US Department of Agriculture. In 2024, rice imports hit a record 4.7 million MT.

Meralco power rates down in May

PHILSTAR FILE PHOTO

RESIDENTIAL CUSTOMERS of Manila Electric Co. (Meralco) could get some relief this month as the power distributor announced a decline in electricity rates for May, driven by lower generation and transmission charges.

Following three months of hikes, the overall rate for May is set to decrease by P0.7499 per kilowatt-hour (kWh) to P12.2628 per kWh from P13.0127 per kWh in April, Meralco said in a statement on Tuesday.

This will translate to a downward adjustment of around P150 in the total electricity bill of customers consuming 200 kWh. Those consuming 300 kWh, 400 kWh, and 500 kWh will see reductions of P225, P300, and P375, respectively. 

“The reduction in charges is due to lower generation and transmission costs, which we can see have decreased quite significantly,” Joe R. Zaldarriaga, Meralco vice-president and head of corporate communications, said partly in Filipino.

Generation charges, which cover the cost of power purchased from suppliers, decreased by P0.3144 per kWh to P7.4651 per kWh this month, primarily due to lower charges from the Wholesale Electricity Spot Market (WESM) and independent power producers (IPPs).

WESM charges went down by P1.1424 per kWh amid the improved supply situation in the Luzon grid, Meralco said.

“While the grid’s peak demand rose by 1,372 MW (megawatts), this was more than offset by the 1,475-MW reduction in average capacity on outage.”

Charges from IPPs also declined by P0.9555 per kWh amid higher average IPP dispatch and the peso’s appreciation, which affected around 97% of dollar-denominated costs. The peso mostly traded at the P56 level last month before closing at P55.833 on April 30, rising from its P57.21 finish on March 31, as weak US economic data fueled recession fears, which pulled down the dollar.

These reductions helped offset the P0.1884 per kWh hike in charges from power supply agreements (PSA) due to lower dispatch.

WESM, IPPs, and PSAs accounted for 26%, 33%, and 41%, respectively, of Meralco’s total energy requirement for the period.

The P0.2970 per kWh decrease in the transmission charge — driven by the decline in ancillary services charges from the reserve market and contracts — also contributed to the reduction in May electricity rates.

Other charges, including taxes, dropped by a net P0.1385 per kWh.

Pass-through charges for generation and transmission are paid by Meralco to the power suppliers and the grid operator, respectively. Taxes, universal charges, and Feed-in Tariff allowance are remitted to the government.

Meralco’s distribution charge has remained unchanged at P0.0360 per kWh since August 2022.

“Customers also continue to benefit from the ongoing implementation of the distribution-related true-up adjustment, equivalent to a reduction of P0.2024 per kWh for residential customers,” it said.

STABLE POWER DURING ELECTIONS
Meanwhile, Meralco said that electricity service across its franchise area remained stable during the midterm elections held on Monday.

“This was made possible by our early preparations that started November last year, conducting inspection and maintenance of power facilities, ensuring stable power to critical election sites,” said Froilan J. Savet, Meralco first vice-president and head of networks of Meralco.

Mr. Savet said the company deployed more than 3,000 personnel in strategic locations, including the Commission on Elections’ Command Center in Parañaque City, which served as the central hub for election monitoring, to ensure rapid response.

“Meralco will remain on full alert and on standby 24/7 to respond to possible concerns until the winners of the midterm elections have been proclaimed,” Mr. Zaldarriaga added. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

US-China trade truce could provide relief to Philippine markets

BW FILE PHOTO

By Aaron Michael C. Sy, Reporter

PHILIPPINE financial markets could get some short-term reprieve from the volatility it saw in recent months after the United States and China on Monday agreed to slash tariffs temporarily.

“The trade truce should be good for equities, including the PSEi (Philippine Stock Exchange index). The US dollar will be strong given that the probability of the US falling into stagflation has decreased significantly,” Bank of the Philippine Islands Treasurer and Global Markets Head Dino R. Gasmen said in a Viber message.

“The trade truce will likely be a positive driver for the stock market as it somewhat reduces the short-term likelihood of a global economic slowdown,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

He said their year-end target for the PSEi is now at 7,456, down from 7,752 previously. “This downgrade reflects our tempered gross domestic product growth outlook on the back of policy uncertainties from abroad, which directly and indirectly impact the profitability of local listed companies.”

Mr. Garcia added that the peso will likely maintain its strength in the short term, even as the dollar initially strengthened following the trade deal news.

A trader likewise said that the peso could remain within the P55 to P56 range in the short term as players continue to monitor the global trade picture.

“It’s still a wait-and-see scenario for the market as the trade deal is temporary. We still have to monitor headlines on developments between the two countries with regards to the tariffs. So, any news that may negatively affect the trade talks may result in renewed selling pressure against the dollar,” the trader said.

On Tuesday, the PSEi surged by 1.68% or 108.62 points to close at 6,566.82. This was the bellwether’s best finish in over four months or since it ended at 6,625.17 on Jan. 6, which was before US President Donald J. Trump returned to the White House for his second term.

Meanwhile, the peso closed at P55.795 per dollar, weakening by 28.5 centavos from its P55.51 finish on Friday, Bankers Association of the Philippines data showed. Year to date, it is still up by P2.05 from its end-2024 close of P57.845.

A rally in global stocks and the dollar lost some momentum on Tuesday, as initial euphoria over a trade truce between the United States and China gave way to the persistent concern among investors over the impact of the standoff on the global economy, Reuters reported.

The world’s two largest economies have initiated a 90-day pause in their trade war, bringing down reciprocal tariffs and removing other measures while they negotiate a more permanent arrangement.

The agreement has reignited investor appetite for stocks, cryptocurrencies and commodities, unleashing a 3.3% rally on Wall Street the previous day.

By Tuesday, some of that enthusiasm had ebbed. Futures on the S&P 500 and Nasdaq fell 0.4%, underscoring the caution towards US assets.

The dollar surged against a basket of currencies on Monday by the most in a day since April 22. By Tuesday, some of that had faded, leaving most other major currencies stronger across the board.

Following the Geneva talks, the US said it will cut tariffs imposed on Chinese imports to 30% from 145% while China said it would cut duties on US imports to 10% from 125%.

Ratings agency Fitch estimates the US effective tariff rate is now 13.1%, a notable decline from 22.8% prior to the agreement but still at levels unseen since 1941 and above the 2.3% that prevailed at the end of 2024.

The US government went one step further on Tuesday, announcing it will cut the “de minimis” tariff on Chinese shipments of items valued at up to $800.

Mr. Trump’s unpredictable approach to the economy, trade and international diplomacy has fanned concern about the outlook for US growth. Together with a lack of progress in hashing out deals with trade partners, these factors have driven investors out of US assets for weeks, to the benefit of safe havens like gold, the Japanese yen and Swiss franc.

The shift in US-China trade relations has also led traders to reduce their expectations for US Federal Reserve rate cuts, as they believe policymakers may have more leeway if the risks to inflation abate.

Traders are now pricing in 58 basis points (bps) of cuts this year, down from over 100 bps during the height of tariff-induced anxiety in mid-April.

This outlook could affect Philippine bond yields, the analysts said.

“Government securities yields should be slightly higher as the probability of rate cuts by the Monetary Board will be affected by the reduction in expected rate cuts by the US Federal Reserve,” Mr. Gasmen said.

Last week, Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. told Bloomberg that the central bank is open to cutting benchmark interest rates by a further 75 bps this year amid cooling inflation.

The Monetary Board last month resumed its easing cycle after an unexpected pause in February, cutting borrowing costs by 25 bps to bring the policy rate to 5.5%. Its next meeting is on June 19.

A second trader said in a phone interview that local debt yields could move sideways in the short term as trade talks continue to develop and as interest in US bonds wanes.

“If trade talks are good, foreign investors will buy bonds in the Philippines. Demand and rates could move sideways because trade talks are still developing,” the second trader said. — with Reuters

Business groups call on new lawmakers to pass key measures

PCOO

THE PHILIPPINE Chamber of Commerce and Industry (PCCI) has called on the new Congress to pass key economic measures to promote competitiveness and business growth in the country.

“As the country anticipates the final and official results of the midterm elections, the PCCI, the largest business organization in the country, hopes for the new Congress to pass economic measures that support and promote competitiveness and business growth,” the group said in a statement on Tuesday.

Among these measures is the Magna Carta for micro, small, and medium enterprises (MSMEs), which the PCCI said will extend banks’ mandatory loan allocation for small businesses. It will also remove the Bangko Sentral ng Pilipinas’ regulatory cover on SB Corp., which will allow the extension of MSME loans within an out-of-the-box framework.

The group also called for the passage of the International Maritime Trade Competitiveness Act, which was recently filed as House Bill No. 10507.

The proposed law aims to strengthen the oversight functions of government agencies over the imposition of shipping charges by international shipping lines.

This will “ensure that the shipping charges are based on international best practices, reasonable, and subject to taxes, as these are charged at a local level,” the PCCI said.

The bill has been pending with the House Committee on Transportation since Aug. 29.

The PCCI is also pushing for amendments to the charters of the Philippine Ports Authority (PPA) and the Civil Aviation Authority of the Philippines (CAAP).

“The developmental functions [should] be given to a private entity that will be responsible for the development and commercial functions of ports, allowing PPA and CAAP to focus on their core function of regulatory oversight,” the PCCI said.

Another measure that the group is pushing for is the National Quality Infrastructure Act, which is seen to help in facilitating access of Filipino products to global markets by ensuring that they meet international quality benchmarks.

The group also asked for the rationalization of the mining fiscal regime, which it said will allow for predictability in tax policies, enabling long-term decisions in the sector where exploration to production takes five to 10 years.

“These are some of our wishes that, hopefully, this new Congress will consider enacting. These reform measures are essential if we want to build a better and progressive economy,” PCCI President Enunina V. Mangio said.

She added that it is important to elect legislators who can “champion policies that foster economic stability and growth and promote a conducive environment for business.”

She said she hopes the Filipino people will elect leaders “with good economic and financial literacy and understand global trade and investment.”

Meanwhile, Makati Business Club (MBC) Executive Director Rafael A.S.G. Ongpin said the business group is happy as the midterm elections “seem to have been a very free and fair election by Philippine standards.”

“The smoothness of this political exercise shows that we are a stable country politically, and that has implications for our economy as it makes us more investor-friendly,” Mr. Ongpin told reporters on Tuesday.

“There really were many different factions competing, and they all had varying degrees of success, so that for us is good… So, we are happy that it went well with no big glitches,” he added.

For MBC, he said they hope the incoming Congress will prioritize the Freedom of Information (FOI) bill.

“The MBC has been trying to press on this for decades. Actually, the first FOI bill was filed in Congress in the 80s. It is a long-standing effort, and the Senate finally was able to consolidate all their versions and have just one bill,” he said.

“There are various other measures such as taxation and so on that we are sponsoring in line with our initiatives, and we feel that we have a much better chance of success with this Congress,” he added.

Mr. Ongpin said the incoming Congress seems to be a “more functional assembly of people and are not going to be squabbling amongst each other.”

He added that he is happy with the results of the elections, noting that “it shows that there are people who vote on issues rather than personalities.” — Justine Irish D. Tabile

Horsepower vs torque: What these mean for cars

Performance on the road is crucial in choosing a vehicle, whether for personal or business use. Vehicles rely on speed, power, precision, and control to perform at their best; and these are made possible by mechanical forces built in each vehicle, among them horsepower and torque — two aspects that speak of what a car’s engine carries within. Thus, these are considerations worth including when choosing a car, on top of features that best suit a driver’s preferences, among others.

Horsepower

Simply put, a horsepower is a unit of measurement used to indicate engine power in cars. It influences speed, acceleration, and overall power of a vehicle.

“Horsepower is a major factor in how fast your car goes when you step on the gas pedal,” an online article from automotive authority Kelley Blue Book (KKB) noted.

Generally, the larger the engine of a vehicle, the greater the horsepower; and the smaller the engine, the lesser the horsepower.

Each type of vehicle has a distinct horsepower. Typically, a standard car carries at least 150 to 175 horsepower; while smaller crossovers and sport utility vehicles (SUVs) measure between 200 to 250 horsepower; and electric vehicles at 250 horsepower. Among larger sized vehicles, larger SUVs consist of 250 to 300 horsepower; while trucks have 200 to 300 horsepower.

Vehicles with higher horsepower engines offer advantages, specifically in speed and acceleration. These engines can maintain higher speeds for longer periods and are considered super-efficient for driving on highways. In trucks, higher horsepower contributes to better towing abilities, as well as highway driving.

At present, horsepower is a key consideration when designing high-performance vehicles. Examples include supercars, or muscle cars, and sports cars, many of which produce at least 500 horsepower in their engines.

However, not every driver needs a vehicle with high horsepower. Some might prefer economic cars, which are smaller, and thus have lower horsepower and consume less fuel. These vehicles are known for their fuel efficiency while keeping top-speed performance.

Torque

Another important engine specification is torque. While horsepower refers to a vehicle’s power, torque refers to its strength. A torque is defined as a measurement of how much force the engine can generate. It is a force that flows from engine to transmission and translates into speed and acceleration. This driving force is what allows cars to either speed up, maintain its pace, or slow down. Additionally, it plays a significant role in how fast vehicles can start or move.

In vehicles, torques are usually measured in Newton-meters (Nm) in the International System of Units, or pound-feet (lb-ft) or pound-inches (lb-in) in the US system. The function of torque is to accelerate the speed of the vehicle. The pistons, which move in up and down motion, produce force and then transfer it to the vehicle’s wheels through transmission and drivetrain.

“Torque is more important than horsepower when you first accelerate. Horsepower is more important than torque when you want to maintain peak performance,” KKB said. “Engineers tune for both, balancing horsepower and torque curves for the desired action.”

Most engines generate at least 100 to 400 lb-ft of torque, and having more torque in an engine means better capabilities for vehicles dealing with heavy tasks. For example, torque is especially important in larger vehicles (i.e., trucks, buses, SUVs, etc.), which are used for carrying heavy loads, pulling trailers, and moving cargos, among others. As a result, these vehicles prioritize higher torques than horsepower, with many of them equipped with at least 400 lb-ft of torque or more in their engines.

Diesel car engines, notable for impressive torque and more power, are usually found in trucks that are equipped with long strokes, allowing pistons with better leverage during rotation, leading to increased force in the engine. Aside from higher torques, diesel car engines are known for having better fuel efficiency and durability.

Electric vehicles (EVs), meanwhile, include instant torque in their engines. In EVs, a torque is produced by an electric motor, which operates through electromagnetism. Unlike traditional engines, torque in EVs is delivered instantaneously. With instant torque, EVs have faster acceleration, increased energy efficiency, simplified mechanical design, and improved driving experience. Furthermore, such EVs can deliver maximum torque that allows seamless acceleration with no lag, with a response time of less than 50 milliseconds. High-performance driving vehicles with instant torques are a better option for a smoother and more efficient driving experience.

Factoring in the two

When looked at closely, a horsepower and torque are interconnected. This relationship is similar to a push-pull dynamic, where the torque does the pushing and horsepower does the pulling in an engine. In essence, a torque is what gets a vehicle moving while the horsepower is responsible for maintaining the top speed.

“You can’t have one without the other, but you can have one high and one low,” the KKB article pointed out.

With horsepower and torque reflecting the capacity of car engines, one should consider whether a car’s engine best suits their needs from a car. While higher torque and horsepower in a vehicle sounds promising, however, it is not always ideal for every vehicle. Those with smaller engines that operate in lower torque and horsepower are equally as efficient.

With each vehicle serving a different purpose, drivers must choose the right engine specifications for their vehicles. Vehicles with higher horsepower are better suited for highways, making it much easier to maintain speeds and overtake vehicles, just when necessary. These vehicles include city cars and motorcycles that are designed for short distance travel.

But with larger vehicles, the higher number of horsepower or torque is not equivalent to more towing capacity, acceleration, or speed. For example, cars with low torque are useful for mountainous areas; while trucks equipped with high torque are needed for towing purposes.

In the local market, advancement in automotive technology have led manufacturers to offer various car models with more horsepower and greater torque.

Recently, Toyota Motor Philippines (TMP) has launched the Toyota GR Supra, a new sports car with 387 horsepower, running at 6,500 revolutions per minute, and 500 Nm of torque.

Another high-performance model is the Toyota Tundra Hybrid engine, which boasts 437 horsepower and 583 lb-ft torque. The Toyota Land Cruiser, a diesel car engine equipped with 302 horsepower and 700 Nm torque, is perfect both on and off-road environments.

TMP has also been driving sustainability further in automobiles through its various hybrid electric vehicle (HEV) models, like the Toyota Prius, with 194 horsepower and 139 lb-ft torque, and the Toyota Prius Prime, with 220 horsepower and 139 lb-ft torque. — Angela Kiara S. Brillantes

The right balance of power for your vehicle’s intended purpose

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In everyday life, power has become so ingrained in society that it has become a necessity and a public utility, making machines work and life a little easier. However, in vehicles, the term is still somewhat looked at as a luxury, with potential consumers leaning towards purchasing the more expensive, more “powerful” models as symbols of status and performance.

For car enthusiasts, “power” is often referred to using its unit names: horsepower (hp) for gas vehicles and kilowatts (kW) for electric cars. These units measure the rate at which the engine or motor can perform work — in other words, how quickly it can generate force to move the vehicle. The higher the number, the more capable the vehicle is of accelerating quickly, climbing steep roads, or carrying heavy loads.

But while enthusiasts and manufacturers usually highlight these figures to signal performance or prestige, it’s important to understand that power does not automatically equate to a better driving experience for everyone. Generally, too much power also translates to more fuel burned. With gas prices in today’s economy, it may be too costly to purchase a vehicle just because of its power.

What truly matters is how that power is delivered and matched to your lifestyle. Looking at Metro Manila’s traffic situation, every vehicle should serve a purpose that matches its power, whether that’s for daily city commutes, weekend getaways, or heavy-duty work. Instead of getting caught up in numbers and buying vehicles with the most horsepower, it’s more practical to evaluate how a car may perform in real-world situations.

Basic for traffic

Even with a car, navigating the streets of Manila can be tedious and time-consuming, especially during rush hour when traffic becomes even more congested. During these bumper-to-bumper moments, it is better to opt for a smaller, more fuel-efficient car than a vehicle that can’t fully utilize its power.

Vehicles such as subcompacts, hybrids, and small electric vehicles (EVs) are well-suited for these conditions. Subcompacts are easy to maneuver and fuel-efficient, while hybrid vehicles’ electric motors can power the car at low speeds and for short distances, making them ideal for traffic. Similarly, small electric vehicles are well-suited for city traffic due to their compact size, agile handling, and instant torque.

An automobile that encapsulates these qualities is Toyota Motor Philippines’ subcompact crossover, Yaris Cross, which comes in two versions: one with a three-cylinder engine producing 118 hp and 145 Newton meters (Nm) of torque, and another with the same engine paired with a hybrid system. Both options are designed to handle the daily demands of driving in Metro Manila; but the hybrid variant especially shines in heavy traffic, where its electric motor can take over and help reduce fuel consumption and emissions.

For higher requirements

More and more Filipinos are becoming enchanted by the prospects of road trips and traveling around the Philippines in their own cars. However, these scenarios often require a vehicle with slightly more power for expressways, more speed for overtaking, and more comfort to handle long drives.

Midsize sedans, sport utility vehicles (SUVs), or crossovers with moderate horsepower (or kilowatts in the EV segment) are the perfect travel companions to take you to wherever you want to go. Midsize sedans are known for their balance of power, efficiency, and practicality. SUVs are famous for their family-friendly space, good fuel economy, and versatile power capabilities. Likewise, crossovers offer just enough muscle to handle highway overtakes and uphill climbs while having enough cargo space for travelers.

Drivers looking for these qualities may need to look closely at the Honda HR-V V-Turbo variant, which boasts a 1.5-liter VTEC Turbo engine pushing out 174 hp and 240 Nm of torque. That is more than enough power for expressway overtakes and long-distance travel, all while maintaining fuel efficiency.

Heavy-duty vehicles

Hauling, towing, and navigating through rough terrains are difficult situations where the power of a vehicle truly matters. Filipinos seeking heavy-duty vehicles in case of the occasional provincial road trips, carrying of heavy cargo, or simply want the assurance of strength under the hood, the more power, the better.

In these cases, pickups or large SUVs with a high-torque engine are the obvious and practical choice. Pickup models that offer robust engines with high horsepower and torque are more than suitable for towing and hauling heavy loads for prolonged periods. Many of today’s SUVs do have some towing and hauling capabilities, considering the increasing demand for versatility in daily drivers.

Still one of the most popular pickup trucks in the country, the Ford Ranger is a prime example of a vehicle built to handle these demanding tasks. The model can come equipped with a 2.0-liter Bi-Turbo EcoBlue diesel, delivering 210 hp and 500 Nm of torque that is made for towing large trailers, navigating rough roads, or hauling heavy cargo. The Ford Ranger is also known as one of the pickup trucks that marked the transition from rugged, basic workhorses to more lifestyle-oriented vehicles, making the truck a good option for those seeking both utility and comfort as well.

Electric vehicles

Environmentalists and eco-conscious drivers are also becoming more mindful of the power they choose in their vehicles, considering both fuel efficiency and emissions. As they often choose to purchase electric or hybrid vehicles, they not only need to be mindful of the power of their vehicles but also of the battery to ensure that they get adequate range for their lifestyle needs. 

Unlike traditional internal combustion engines, electric motors can provide instant torque, which allows for a smooth, responsive driving experience even at low speeds. This is especially valuable in city driving, where stop-and-go traffic is the norm. However, like every other EV in the country, these vehicles are hampered by the lack of infrastructure to support them. 

Nevertheless, Toyota HEVs like the Camry, Corolla Altis, Corolla Cross, Rav4, Yaris Cross, Alphard, and Zenix are great picks for car enthusiasts searching for the power of conventional engines with the fuel savings and eco-friendliness of electric motors. 

Ultimately, the power of a vehicle, while amazing in its capabilities, must still align with one’s needs and lifestyle. In the end, the best power is the one that complements your daily life and a companion to the journey both on the road and in the world. — Jomarc Angelo M. Corpuz