US Secret Service denies China ‘nuclear football’ skirmish

February 20, 2018 | 4:47 pm

WASHINGTON — The US Secret Service denied Monday reports that one of its agents and White House Chief of Staff John Kelly wrestled with Chinese security officials over the “nuclear football” during President Donald J. Trump’s visit to Beijing in November.

Chinese security officials blocked the US military aide carrying the briefcase that carries the procedures and communications equipment that allow the US leader to launch nuclear missiles as the official entered the Great Hall, according to the Axios news website.

Then there was a commotion as Ms. Kelly got all the US officials accompanying the president to move toward the site of the nuclear football, Axios said, citing five unnamed sources familiar with the events.

A Chinese security official “grabbed” Mr. Kelly, who “shoved” the man’s hand off of his body, according to Axios, which said a US Secret Service agent then tackled the Chinese official to the ground.

The Secret Service denied the Web site’s characterization of the events.

“FACT CHECK: Reports about Secret Service agents tackling a host nation official during the President’s trip to China in November 2017 are false,” it said on Twitter.

In a separate statement, the presidential law enforcement agency provided further details about the incident.

“An individual, not part of the official delegation, attempted to prevent one of our protectees from entering a room,” it said.

“A US Secret Service agent quickly intervened and a short scuffle ensued.”

However, the Secret Service added, “the individual complied with the agent’s directions and no further action was necessary. At no time did anyone involved fall to the ground. The event continued without incident.”

Axios reported that US officials who learned about the incident were told to keep the information to themselves, adding that the Chinese did not have the nuclear football with them at any point or touch the briefcase at all.

The head of the Chinese security detail apologized to the Americans for the misunderstanding after the incident, it added.

The nuclear football bag, aluminum-framed and weighing 45 pounds (20 kilograms) goes everywhere the president goes, carried by a military aide.

The football has been omnipresent with the leader of the world’s most powerful nation since around 1963, according to Smithsonian magazine.

It has to stay close to the president, given that he would have less than five minutes to react before nuclear missiles launched at the US by, say, China or Russia, strike. — AFP

Bosch launches store as demand for construction tools goes up

February 20, 2018 | 4:45 pm

Bosch, the brand better known locally for its power tools, opened its first one-stop shop in Quezon city to cover the demand for construction technology solutions.

Bosch Philippines Power Tool Country Sales Director William Go in a statement said that the shop is a response to the increasing power tool demand as the construction sector gears up to accommodate the nationwide infrastructure programs under the government’s “Build Build Build” initiative.

“The government’s aggressive infrastructure efforts coupled with the rise of opportunities in the construction segment has led Bosch to step up in providing the most efficient solutions to serve the thriving market,” he added.

The one-stop shop is intended to serve end-users in need of heavy duty tools and related accessories in the National Capital Region.

A second shop is expected to also sprout in Davao.

“This new venture enables us to take active participation in this exciting time in the infrastructure industry,” Mr. Go said. — Anna Gabriela A. Mogato

NGCP, DICT reach agreement on use of fiber optics

February 20, 2018 | 4:30 pm

Privately owned National Grid Corporation of the Philippines (NGCP) said it had reached a “mutual decision” with the Department of Information and Communications Technology (DICT) on its way forward in relation to its fiber optic capacity available for the use of third parties in the implementation of the National Broadband Program (NBP).

In a statement, NGCP said it would enter into the agreement up to the life of its concession, which is until 2034, “provided that in the event that the Concession is extended, the bilateral agreement will also be extended.”

“NGCP will not object to any separate agreement DICT signs with TransCo for so long as the exclusive rights of the company in relation to transmission and related businesses, for the entire duration of its concession are upheld,” it said. — Victor V. Saulon

Prices of luxury condominiums at all-time high — Leechiu

February 20, 2018 | 4:14 pm

Prices of high-end residential condominiums in key financial business districts reached an all-time high last year, with a single square meter commanding a price of as much as P300,000, according to a property consultant.

Leechiu Property Consultants (LPC) said that high-end condominium units in Bonifacio Global City have peaked at P302,588 per sq.m., and a minimum price of P159,125 per sq.m. Residential units in Makati have the second highest rates, within the range of P164,600 to P294,827 per sq.m. — Arra B. Francia

Prime Orion elects new president and CEO

February 20, 2018 | 4:06 pm

The head of the Ayala Malls Group has been elected as the new president and chief executive officer of the company that owns and develops Tutuban Center.

In a disclosure to the stock exchange on Tuesday, Feb. 20, Prime Orion Philippines, Inc. (POPI) said Maria Rowena M. Tomeldan has been elected to lead the company, replacing Jose Emmanuel H. Jalandoni for the post. Ms. Tomeldan was also part of the company’s board of directors at the time of the election.

Ayala Land took over Prime Orion in 2016 when the former subscribed to 2.5 billion common shares of the latter at P2.25 each for a total of P5.63 billion.

In January, Ayala Land further tightened its grip on POPI by purchasing 202.77 million shares of the company worth P496.80 million from Genez Investments Corp. through a block sale at the Philippine Stock Exchange. — Arra B. Francia

DTI reports progress in free trade talks with US

February 20, 2018 | 3:45 pm

The Department of Trade and Industry is expecting to see a considerable progress within one to two years amid the country’s attempt to seal a free trade agreement (FTA) with the US.

Trade secretary Ramon M. Lopez told reporters on Tuesday that while both sides are still conducting their own studies, it may not be far to reach deeper negotiations within two years’ time.

“Right now, it’s only exploratory but at least it’s moving, compared to last year when it wasn’t even moving. By the third year, we could be at really at an advanced stage,” he added.

As for the side of the Philippines, the DTI is currently looking into products that could be promoted further while the US is pushing for its meat exports.

This is the second bilateral trade agreement sought out by the Philippines, years after the country sealed the Philippines-Japan Economic Partnership Agreement.

“I won’t say [this negotiation] is [going too] fast, [but] this will be fast. It’s a big economy (US) but we want our interest to seal it within the administration,” Mr. Lopez said. — Anna Gabriela A. Mogato

Ethics complaints vs Lacson, Trillanes, De Lima dismissed

February 20, 2018 | 2:32 pm

The Senate Committee on Ethics on Tuesday, Feb. 20, has dismissed complaints filed against Senators Panfilo M. Lacson and Antonio F. Trillanes IV and has “dismissed without prejudice to refiling” the complaint filed against Senator Leila M. De Lima.

Former Bureau of Customs (BoC) commissioner Nicanor E. Faeldon has filed the ethics complaint against Messrs. Lacson and Trillanes September of last year in connection with the Senate investigation on the illegal drug shipment at the Bureau of Customs (BoC).

Meanwhile, three ethics complaints were filed against Ms. De Lima by House Speaker Pantaleon D. Alvarez, Majority Leader Rodolfo C. Fariñas, House justice committee chair Reynaldo V. Umali, then Kabayan representative Harry L. Roque and lawyer Abelardo De Jesus.

Their complaints stemmed from Ms. De Lima’s actions regarding the congressional inquiry on the illegal drug trade at the New Bilibid Prison (NBP). — Camille A. Aguinaldo

Deutsche Bank slashes up to 500 investment banking jobs: report

February 20, 2018 | 2:18 pm

Berlin — Germany’s biggest lender Deutsche Bank is letting hundreds of investment bankers go, Bloomberg News reported Monday, the latest round of deep cuts in a years-long battle for profitability.

“At least 250” and perhaps as many as 500 “senior and mid-level” bankers in London and the US have been shown the door in the past two weeks, Bloomberg said citing people familiar with the decisions.

Deutsche Bank declined to comment on the report when contacted by AFP.

In early February, executives acknowledged that 2017 had been on of the investment bank’s worst years yet, with revenues sapped by low volatility on financial markets and limited client activity.

Revenues at the division fell 16 percent to 14.2 billion euros ($17.6 billion) last year, leaving Deutsche lagging behind competitors in the US and Europe like Santander or BNP Paribas.

Under chief executive John Cryan, who took the helm in 2015, Deutsche has undergone a painful course of treatment to return to health, reducing exposure to risks and planning to shutter 200 branches in Germany while slashing 9,000 jobs worldwide. —

Mythical guitar-maker Gibson fighting for survival

February 20, 2018 | 2:00 pm

San Francisco — World-famous guitar maker Gibson, whose instruments have been played by the likes of John Lennon and Elvis Presley, is facing serious financial problems that threaten its very existence.

The mythical company — in Nashville, Tennessee since 1894 — on Monday brought in a new financial director, Benson Woo, to try to rescue the ailing group.

Gibson Brands, which also sells audio systems for both professionals and the general public, is working with an investment bank to set up a debt refinancing plan, the company said in a statement.

The group has a $375 million debt payment due in early August, the Nashville Post reported.

“While the musical instrument and pro audio segments have been profitable and growing, they are still below the level of success we saw several years ago,” CEO Henry Juszkiewicz said in the statement.

He said the company, as part of a broad review of its business strategy, was continuing to streamline its Philips brand consumer audio business while eliminating some underperforming products.

He said Gibson expects this strategy will lead “to the best financial results the company has seen in its history within the next year,” with full repayment of company debt “within several years.”

Gibson produces one of the most prestigious guitar models in the world, the Les Paul.

Among the stars who have played Gibson instruments are the bluesman B.B. King, the Rolling Stone Keith Richards and Jimmy Page of Led Zeppelin. — AFP

Asian stocks fall; dollar rises with bond yields

February 20, 2018 | 1:40 pm

Most Asian equity benchmarks declined with US futures and the dollar rose as Treasury yields climbed back toward recent four-year highs.

Japan’s Topix index dropped after staging its second-best performance this year, while shares in Australia and South Korea also fell, taking their cue from European markets as US equities and Treasuries took a break for the Presidents’ Day holiday. The MSCI Asia Pacific Index declined. Hong Kong shares bucked the trend, climbing after traders returned to their desks after a holiday.

Investor focus now turns to the US Treasury, which opens its auction floodgates this week, beginning with $151 billion of short-term bills on Tuesday. With little in the way of significant economic data on the schedule, the sales will provide the clearest gauge yet of how steeply bond yields may rise in the world’s largest economy. Traders will also be parsing minutes from the Federal Reserve’s latest meeting.

Bank of Japan Governor Haruhiko Kuroda did not discuss monetary policy during an appearance in parliament. Speculation has been swirling about the possibility the BOJ is scaling back its stimulus since the central bank reduced its purchases of government bonds in January.

Elsewhere, oil climbed above $62 a barrel for the first time in more than a week as an alliance of some of the world’s largest oil producers signaled further cooperation to tighten supplies through the end of the year. Bitcoin broke above $11,000.

Here are some key events scheduled for this week:

The Federal Reserve will release minutes on Wednesday of its Jan. 30-31 meeting, Janet Yellen’s last as chair, where officials kept the rate unchanged. Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the U.S. Monetary Policy Forum in New York City. Companies announcing earnings this week include: Walmart, Home Depot, HSBC, BHP Billiton, Glencore, Barclays. Chinese markets reopen on Thursday.

These are the main moves in markets:

Stocks
The Topix fell 1% as of 12:13 p.m. in Tokyo. Japan’s Nikkei 225 Stock Average declined 1.2%. Australia’s S&P/ASX 200 Index fell 0.1%. South Korea’s Kospi index was down 0.7%. The Hang Seng Index in Hong Kong rose 0.6%. Futures on the S&P 500 lost 0.1%. The MSCI Asia Pacific Index fell 0.5%.

Currencies
The Bloomberg Dollar Spot Index was up 0.2%. The euro declined 0.2% to $1.2388. The yen fell 0.1% to 106.74 per dollar.

Bonds
The yield on 10-year U.S. Treasuries climbed two basis points to 2.90%. Australia’s 10-year yield rose two basis points to 2.91%.

Commodities
West Texas Intermediate crude rose 1% to $62.29 a barrel. Gold fell 0.3% to $1,341.99 an ounce. — Bloomberg

Asia debt binge to dampen growth but not derail It, Oxford says

February 20, 2018 | 1:21 pm

Asia’s soaring levels of debt will weigh on growth over the next decade — especially in China, Malaysia, Thailand and India — but it won’t be enough to derail the region’s economy.

That’s because of mitigating factors such as high domestic savings and resilient supply side dynamics, according to Priyanka Kishore, lead Asia economist at Oxford Economics Ltd. in Singapore.

“These should act as substantial buffers,” Kishore wrote in a note. “Even with growth slowing to 3.5% by 2030 (from around 5% currently), we expect Asia to remain the largest contributor to global growth in the long run.”

Oxford forecasts that in the long run, the debt of households and non-financial companies will remain above 100% of gross domestic product in most Asian economies, excluding Japan.

Noting that conventional analysis indicates this should weigh on growth, Kishore said country specific factors such as the distribution of private sector leverage by assets/income level found that China, Malaysia and Thailand, and India to a lesser extent, stand out as vulnerable to debt-induced spending cutbacks.

But Asia will still remain the world’s growth engine, Kishore wrote. — Bloomberg

Draft terms for 3rd telco player out

February 20, 2018 | 12:33 am

THE GOVERNMENT’s bid to improve telecommunications services in the country has taken a step forward with the Department of Information and Communications Technology’s (DICT) release on Monday of draft criteria for selecting the third major service provider.

The draft joint memorandum circular — to be issued by the Department of Finance (DoF), DICT, National Security Council and the National Telecommunications Commission (NTC) — that was posted on the DICT’s Web site provided that the prospective third player:

• should have a net worth of at least P10 billion;

• should prove, in the case of a consortium, that it has the capacity to raise equity from potential consortium members to enable it to have a net worth of at least P10 billion;

• by itself, “or at least one of the members of the consortium,” should have “proven technical capability” to provide telecommunications services;

• has a congressional franchise — or if a consortium, Filipinos must have at least 60% in the group with at least one of the members holding such a franchise;

• is not related to any telecom group with mobile and broadband wireless market share of at least 40% — in reference to PLDT, Inc. and Globe Telecom, Inc.; and

• should not have any “bidder’s liabilities,” defined as “uncontested obligations” to the NTC as of Jan. 31, including supervision and regulation fees, spectrum user fees, penalties, surcharges and interest.

Once chosen, the third major telecommunications player should also have a 70:30 maximum debt-to-equity ratio; will have to post a performance bond equivalent to one-half of one percent, or 0.005%, of investment committed for the first five years of operation; and will have to deposit at least 30% of the committed investment for the first year with a government financial institution specified by the Finance department within 30 days of the award, among others.

The new player should also submit its rollout plan within 15 days from date of award, start commercial operations by the 12^th month from such date and cover at least 80% of provincial capital cities and towns and 80% of chartered cities within five years.

The DICT will present the draft to stakeholders in a Feb. 27 consultation at Novotel Manila, Araneta Center in Quezon City. The department said it expects “at least 300 participants” in that event “to provide inputs on the draft MC before it will be finalized and take effect…” Another consultation will be held on March 6 at the NTC Building along BIR Road in Diliman, Quezon City.

DICT Officer-in-Charge-Secretary Eliseo M. Rio, Jr. said last week that the department aims to issue the final joint memorandum circular on March 21 with April 5 as effectivity date, hold the auction on May 18 and announce the winner that same month.

With this tentative timetable, the DICT hopes to give interested parties more time to prepare, despite President Rodrigo R. Duterte’s order to have the third player selected by next month.

Interested companies include NOW Corp., Philippine Telegraph and Telephone Corp. and Converge ICT Solutions, Inc., among others. Mr. Rio said by phone yesterday that over 30 companies have congressional franchises.

“The third player will have to shell out big to be able to compete with Globe and PLDT,” Jervin S. de Celis, equities trader at Timson Securities, Inc., said in a mobile phone message. “It will be capital-intensive, so raising cash through issuance of debt or additional shares in the open market may help the potential player raise additional funds.”

For Luis A. Limlingan, managing director at Regina Capital Development Corp., interested parties also face time constraints. “The drafts will definitely narrow the third player if ever to a few suspects, if you look at some of the terms such as the 60:40 ownership rule, no bidders liabilities, a net worth of at least P10 billion, must have a congressional franchise, etc…,” Mr. Limlingan said in separate text. “My main concern is the timing issue because proposals need to be sent in a few months. Perhaps some potential players may find this a huge obstacle as they could be seeking a foreign partner.” — Patrizia Paola C. Marcelo