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Meralco seeks to proceed with Atimonan power project

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MERALCO PowerGen Corp. (MGen) is seeking certification from the Department of Energy (DoE) to confirm that its Atimonan power project is exempt from the 2020 coal moratorium, allowing it to proceed with its proposed 1,200-megawatt (MW) coal-fired power plant.

“[The] project is on the committed list, so it’s outside of the moratorium. We’re trying to get a DoE certification to confirm… [and] to start discussions on the SIS (system impact study) and to look for an engineering study,” MGen President and Chief Executive Officer Emmanuel V. Rubio told reporters last week.

Atimonan One Energy, Inc. (A1E), a subsidiary of MGen, initially proposed to develop a 1,200-MW ultra-supercritical coal-fired power plant for the project site under the environmental compliance certificate issued in 2015.

The company previously dropped its plan and decided to repurpose the coal-fired power project to one that runs on gas.

Based on a project description document submitted to the Department of Environment and Natural Resources, A1E proposed to develop instead a 2,400-MW natural gas-fired combined cycle gas turbine and a liquefied natural gas terminal with floating storage unit.

Manila Electric Co. (Meralco) Chairman and Chief Executive Officer Manuel V. Pang-ilinan said that the project is currently “licensed, permitted, authorized to do a coal plant.”

“We don’t know yet whether we stay with coal or we switch it to natural gas,” Mr. Pangilinan said. “The inclination is to stay with coal. Because if it’s gas, we have to put up the terminal, the re-gas facility.”

In 2020, the DoE issued a moratorium on the development of new coal-fired power plants.

The government agency earlier clarified that the moratorium does not cover existing and operational coal-fired power generation facilities as well as any coal-fired power projects considered committed power projects.

Following a thorough review and verification by the Power Bureau, the DoE issues at the request of a project proponent a certification that a project is not covered by the moratorium.

Several proponents of coal-fired power projects have requested the DoE’s confirmation on non-coverage, and these were “ministerially issued” after verification, the DoE said.

“We believe that the project is part of the active project list as a coal plant. We just want to make sure that since there have been revisions in the past,” Mr. Rubio said in a Viber message.

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

TIFF 2024: The Wild Robot depicts technology and nature coexisting

TORONTO — The Wild Robot, an animated science fiction story by DreamWorks, explores both the good and the bad sides of technology, its star Lupita Nyong’o said on Sunday at the feature’s world premiere in Toronto.

Adapted from Peter Brown’s series of books by the same name, the movie follows a shipwrecked robot that must adapt to survive after being stranded on a remote, uninhabited island.

“This movie explores both the sinister side of technology and the potential for technology to be on our side,” Ms. Nyong’o, the voice of the protagonist Roz, said on the red carpet at the Toronto International Film Festival screening.

Director Chris Sanders, who also wrote the screenplay, said that portraying technology was a key creative challenge, especially considering Brown’s books were written long before artificial intelligence became a dominant conversation.

“We’ll find a balance. I think any kind of new, emerging technology is at first very exciting. It can be a little bit frightening, but we will eventually figure it out,” said Mr. Sanders, whose directorial credits include Lilo & Stitch and How to Train Your Dragon in 2010.

An ensemble cast, including Pedro Pascal, Catherine O’Hara, Bill Nighy, and Kit Connor, give voice to the animals that Roz encounters on the island.

Ms. Nyong’o’s robot character learns to communicate with the animals and uses kindness as a tool for survival.

“The message at the heart of the story is that kindness is a superpower,” said Ms. Nyong’o, who this year also starred in A Quiet Place: Day One, an apocalyptic horror movie.

“Roz is a robot that never loses sight of her essence, which is to be of help to anybody. She’s still able to adapt and become more than what she was programmed to be.”

Mr. Sanders also mentioned that Brown’s focus on kindness wasn’t explicitly stated in the book but became a crucial element he wanted to “memorialize” on screen.

The film lands in theaters on Sept. 27. It will open on Oct. 9 in the Philippines. — Reuters

Del Monte Pacific sees US gains by 2026

LISTED Del Monte Pacific Ltd. (DMPL) expects its United States operations to improve in the next two years, its chief financial officer said.

The improvements and profitability of the company’s US operations, led by Del Monte Foods, Inc. (DMFI), are anticipated by fiscal year 2026, DMPL Chief Financial Officer Parag Sachdeva said during the company’s annual general meeting in Singapore on Aug. 30. The minutes of the meeting were disclosed to the local bourse on Monday.

He said the local unit, Del Monte Philippines, Inc. (DMPI), is expected to achieve double-digit growth for fiscal year 2025.

Despite the positive outlook, Mr. Sachdeva said that DMPL is expecting a net loss for fiscal year 2025 due to “high inventory levels and wastage-related costs.”

He also said that the company is already addressing these costs to improve profitability.

In July, DMPL said that it was focusing on selectively selling assets, injecting equity through partnerships, rightsizing its workforce, and reducing fixed costs to achieve a “reduced” net loss in 2025.

The company formed a task force to improve gross margins and cut costs, particularly in the US and across DMPL, starting in the second half of fiscal year 2025.

Some of DMPL’s cost-cutting initiatives include lowering inventory, minimizing waste and write-offs, cutting warehousing and distribution costs, consolidating manufacturing operations, enhancing planning through digitization, ensuring clear organizational accountability, and improving productivity for processed pineapple variety C74 over the next 12 to 24 months.

For the fiscal year ending April 2024, DMPL saw a $127.3-million net loss from a $16.9-million net income the previous year.

The company recorded a 30.4% decline in gross profit to $422.2 million due to inventory-related costs in its US operations and reduced pineapple supply in Asia.

DMPL has business interests in growing, processing, and selling packaged fruits, vegetables, and tomatoes, fresh pineapples, sauces, condiments, pasta, broth, and juices.

On Monday, DMPL stocks rose by 0.49% or two centavos to P4.12 per share. — Revin Mikhael D. Ochave

TIFF 2024: Amy Adams walks the red carpet after her run with the dogs in Nightbitch

TORONTO — Nightbitch, an amusing fable about motherhood and identity that premiered at the Toronto International Film Festival, has raised expectations for the movie come awards season, but its star Amy Adams is shrugging off the speculation.

Adapted from the bestselling novel by Rachel Yoder, the movie is a comeback performance for Ms. Adams, who is already a six-time Oscar nominee. She was last seen in Hillbilly Elegy, the 2020 film adaptation of a memoir by JD Vance, now the Republican candidate for US vice-president.

Nightbitch tells a feminist fantasy about regaining lost power and identity. Ms. Adams plays an artist-turned-suburban-housewife, named simply Mother. She loves her baby but can’t help but feel isolated and irrelevant in her new role.

Eventually, she notices a pack of neighborhood dogs gathering outside her house after dark. She notices changes within herself. Her sense of smell is heightened. Before long, she is out running through the night with her canine pals, rediscovering her identity and feelings of self-worth.

Asked if she hoped the movie was in line for an Academy Award, Ms. Adams told Reuters she was not focused on accolades. Instead, she said, she wanted every viewer to connect with the film in their own way.

“My experience of watching it with different people is this film tells one person’s story, but different people connect with it in different ways because each person’s journey is so unique to them,” she said on the red carpet on Saturday.

“Everyone’s catching glimpses of themselves in it through different aspects of the storytelling. And I’m really proud of that.”

Director Marielle Heller, whose credits include 2018’s Can You Forgive Me?, said she wanted to show through Nightbitch that movies made by women and for women can win commercial and critical acclaim.

“We are here to show that women also go to the movies and are more than half of the population and we are worthwhile and worth making movies for,” she said.

Ms. Heller said she was grateful that author Rachel Yoder allowed her to adapt the book by keeping the essence of the novel while departing from its internal, deeply emotional voice. That adaptation made the story more visually appealing on the big screen, the director said.

Ms. Yoder, who was also on the red carpet, said that she did not mind the departure from the text because Ms. Heller’s treatment made the book come alive visually. — Reuters

T-bill yields go down amid policy easing hopes

BW FILE PHOTO

THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday as yields went down on strong demand and expectations of more rate cuts by the Bangko Sentral ng Pilipinas (BSP) this year amid easing inflation.

The Bureau of the Treasury (BTr) raised P22.6 billion from the T-bills it auctioned off on Monday, higher than the planned P20 billion, as total bids reached P64.515 billion or more than thrice the amount on offer. This was also higher than the P53.105 billion in tenders recorded at the Sept. 2 auction.

Broken down, the BTr borrowed P6.5 billion as programmed from the 91-day T-bills as tenders for the tenor reached P22.7 billion. The three-month papers were quoted at an average rate of 5.84%, 10.7 basis points (bps) lower than 5.947% recorded last week, with the government only accepting bids with this yield.

Meanwhile, the government hiked its award of 182-day securities to P9.1 billion from the original P6.5-billion plan as bids for the tenor reached P21.51 billion. The average rate of the six-month T-bill stood at 5.98%, down by 2.2 bps from the 6.002% fetched last week, with the BTr only accepting tenders with this rate.

Lastly, the Treasury raised P7 billion as planned via the 364-day debt papers as demand for the tenor totaled P20.305 billion. The average rate of the one-year debt inched down by 1.1 bps to 6.029% from the 6.04% quoted last week, with accepted rates at 6.02% to 6.04%.

At the secondary market before the auction, the 91-, 182-, and 364-day T-bills were quoted at 5.9150%, 5.9879%, and 6.0734%, respectively, based on PHP Bloomberg Valuation Service (BVAL) Reference Rates data provided by the Treasury.

“The continual strong demand for short-tenored notes reflects increasing investor demand in securing high yielding returns ahead of further BSP rate cuts in the following months,” a trader said in an e-mail. “The lower awarded T-bill rates this week reflected lowered inflation expectations following the softer-than-expected August inflation rate.”

“Treasury bill average auction yields all slightly eased, similar to the slight weekly declines in the comparable short-term PHP BVAL yields after headline inflation eased to 3.3% in August,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

The BSP last month cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook, with its governor signaling at least one more reduction before the end of the year.

The Monetary Board on Aug. 15 reduced its policy rate by 25 bps to 6.25% from a 17-year high of 6.5%.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s last two policy-setting meetings this year are on Oct. 17 and Dec. 19.

Headline inflation eased to a seven-month low of 3.3% in August from 4.4% in July and 5.3% in the same month a year ago, the Philippine Statistics Authority reported on Thursday. This was within the BSP’s 3.2-4% forecast for the month and was well below the 3.7% median estimate in a BusinessWorld poll of 15 analysts.

In the first eight months, inflation averaged 3.6%, slightly above the BSP’s 3.4% baseline forecast but within its 2-4% annual target.

The slower-than-expected August print could justify further policy easing, analysts have said.

T-bill rates also declined amid “more dovish signals from most Fed officials recently would increase the odds of future Fed rate cuts, even the possibility of a larger 50-bp Fed rate cuts in the coming months to prevent the risk of recession,” Mr. Ricafort added.

Federal Reserve policy makers on Friday signaled they are ready to kick off a series of interest rate cuts at the US central bank’s meeting next week, noting a cooling in the labor market that could accelerate into something more dire in the absence of a policy shift, Reuters reported.

Their remarks were widely seen as endorsing a quarter-percentage-point reduction in the Fed’s policy rate, and leaving the door open to further and perhaps bigger moves should the job market continue to slow down.

Policy makers have kept the Fed’s benchmark borrowing rate in the current 5.25%-5.5% range since July 2023 after an aggressive rate-hiking campaign that began 18 months earlier in response to a surge in inflation.

“It is now appropriate to dial down the degree of restrictiveness in the stance of policy by reducing the target range for the federal funds rate,” New York Fed President John Williams said at a Council on Foreign Relations event.

Speaking at the University of Notre Dame, Fed Governor Christopher Waller went further, saying he could support back-to-back cuts, or bigger cuts, if the data suggests the need.

“I was a big advocate of front-loading rate hikes when inflation accelerated in 2022, and I will be an advocate of front-loading rate cuts if that is appropriate,” Mr. Waller said.

Chicago Fed President Austan Goolsbee, who has for months signaled he thinks rates need to come down, also said he wants to calibrate policy based on data as it comes in.

“I don’t think what happens at the next meeting alone is what’s the most important,” Mr. Goolsbee said in an interview with CNBC, adding that it would be critical for the Fed to understand the trend of the data over the next several policy meetings.

Data published earlier on Friday showed monthly job gains have averaged 116,000 in the June-August period, below what many economists estimate is needed to meet the job-growth needs of an expanding population.

All three policy makers noted progress on bringing inflation down, with Mr. Waller saying it is now on the “right path” to get to the Fed’s 2% goal.

Traders of futures that settle to the Fed’s policy rate are now pricing a 75% chance that the US central bank will start by cutting its policy rate by 25 bps.

They are pricing in a 4.25%-4.5% policy rate by the end of this year, a level that implies a bigger rate cut at one of the central bank’s last two meetings of the year.

On Tuesday, the BTr will offer P30 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of four years and eight months.

The Treasury wants to raise P195 billion from the domestic market this month, or P80 billion through T-bills and P115 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.48 trillion or 5.6% of gross domestic product for this year. — A.M.C. Sy with Reuters

MBC Media Group to hold Annual Stockholders’ Meeting on Oct. 3

 

 


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The Philosophy of Passages: Harmonizing generational strengths for a sustainable future

FREEPIK

“The gap between the generations arises because the young person looks at the future, middle aged person looks at the present, and the old person looks at the past,” said Professor M.S. Rao. The theory offered by authors William Strauss and Neil Howe can partially explain why.

They introduced the concept of generational identities, suggesting that people born within a specific era were shaped by common historical events, societal attitudes, and values. These collective experiences led to shared beliefs and behaviors, giving rise to distinct identities shared by generational groups.

The world today is a complicated mess. We live in an era where knowledge abounds, and where technological advancements are fast and furious, and what used to be science fiction is now part of our routine and ordinary living. Yet it is when times are turbulent that we need a solid pillar to hang on to or risk being swept away and drown in nothingness, like an uprooted tree.  True, the circumstances where our ancestors lived are different from ours, and that is the reason why we must strengthen institutional and cultural memories so that our identities remain connected and become the shoulders we stand upon as civilization progresses.

These generational identities should be harnessed to combine the strengths of each, to make every generation better than the one that went before. We focus on the threads that connect rather than on the differences that divide. Inter-generational collaboration has the rich potential for building a more sustainable and inclusive future. Harmonizing the advantages every generation brings, blending the wisdom and experience of older generations with the innovation and technological savvy of younger ones, can help build more resilient organizations, communities, and societies.

What superpowers are brought to the table by these generations?

The Silent Generation’s (1928-1945) experience and resilience, rooted in the post-war era, and their values of discipline, loyalty, and responsibility can provide a stabilizing influence in today’s fast-paced world.

The Baby Boomers (1946-1964), who secured leadership roles, created established networks, and are used to arduous work, have the willingness to mentor younger generations, and can help bridge the gap between the old and new ways of thinking.

Generation X (1965-1980) are characterized by their adaptability, and that lessened the pain points of technological transitions, effectively bridging the analog and digital worlds. They can serve as role models who can balance traditional values with modern approaches.

The Generation Y or Millennials (1981-1996), who quickly became digital immigrants, are comfortable with technology, yet equally focused on work-life balance, and purpose-driven work. Their entrepreneurial spirit and social consciousness can drive innovation and social change.

The Generation Z or Gen Zs (1997-2012) are digital natives and strong advocates of diversity, activism, and their push for transparency, inclusivity, and sustainability. Their influence can now be felt on markets through new consumption patterns, and in organizations through their redefinition of workplace and influencing work conditions.

Generation Alpha (2013-present), who are born and are growing up in an entirely digital world, stand to benefit from the fruits of this inter-generational collaboration. Their collective strengths can develop the agility, creativity, and environmental consciousness for this upcoming generation. The collective experiences are shared memories that strengthen their roots and fortify their foundation and those coming next.

Today and in the future, the different generations shape market trends — from the Silent Generation’s brand loyalty to Gen Z’s preference for ethical consumption and instant gratification. They are the multi-generational workforce requiring a changed workplace dynamic and needing right-fit communication styles to foster a culture of inclusion. Companies need to leverage generational diversity, and factor this in product/service development to ensure they meet the needs of a wide demographic.

BUILDING A SUSTAINABLE FUTURE
Technology has the potential to bring these generations together, from digital literacy programs for older adults to inter-generational tech startups focused on solving global challenges. Older generations can impart wisdom so that the younger ones can enjoy the benefits of structured mentorship and in the process acquire fresh perspectives, manage learning curves, and use digital skills more effectively. All generations, in a constant state of collaboration, can drive sustainability initiatives, from policy advocacy by the more senior ones to grassroots activism led by younger groups.

They say that history repeats itself — or, as George Santayana aptly put it, “Those who cannot remember the past are condemned to repeat it.” The times we live in today are filled with astounding discoveries and the advancement of knowledge is rapid; but other than these physical manifestations, has the world really changed? Maybe because we tend to forget the past and are only concerned about the present.

The philosophy of passages that should have been taught from generation to generation are the value anchors that make for a just and humane society. While the world changes, the values are constant. Respect, integrity, honesty — these should be part of our core foundation because they will make individuals and society stable and unshaken despite turbulence and disruptions. They define our choices — knowing and showing respect means doing the right thing for individuals and institutions; having integrity will not allow one to benefit at the expense of others; and when there is honesty, one cannot be lured by the call of greed and corruption — and therefore, all three value anchors can enable the best outcomes.

Hierarchical authorities, while they provide stability and structure, are learning that to be effective, to get the results they want, they must learn to listen, be comfortable working with teams and individuals across multiple generations, and be more open to share power and use the benefits it brings to build a better world.

The 22nd International CEO Conference of the Management Association of the Philippines (MAP), which will tackle the challenges and opportunities in a multi-generational world with its theme “Business in Five Movements: Wisdom, Passion and Inspiration Across Five Generations,” will be held today, Sept. 10, from 8:30 a.m. to 5 p.m., at the Grand Ballroom of the Grand Hyatt Manila in BGC, Taguig City. For inquiries, contact the MAP Secretariat via map@map.org.ph.

 

Alma Rita R. Jimenez is the vice-chair of the MAP CEO Conference Committee, chair of the MAP Trade, Investments and Tourism Committee, president and CEO of Health Solutions Corp., and is a former undersecretary of the Department of Tourism.

map@map.org.ph

IDC Prime secures P630-M loan for CdO project

LISTED Italpinas Development Corp. (IDC) said its subsidiary IDC Prime, Inc. has secured a P630-M loan for a mixed-use project in Cagayan de Oro (CdO).

Sourced from the Bank of the Philippine Islands, the loan will be used for IDC Prime’s maiden project, Primavera City Phase III, also known as Citta Grande, IDC said in a regulatory filing on Monday.

“IDC agreed to act as surety for the loan. The loan documents and surety agreement were signed last Sept. 4, 2024,” the listed company said.

“The development loan is secured by a mortgage on the land on which Citta Grande will be constructed, and on the resulting improvements thereon,” it added.

Launched in December 2022, Citta Grande is the third phase of IDC’s Primavera City project. It is a green building project that will feature smart homes to improve daily living.

Primavera City is a mixed-use development that consists of dining and shopping destinations, offices, and residences. It is designed for completion in four stages.

The development features solar panels, 24/7 security surveillance, free Wi-Fi connection in selected areas, a sauna, a playground, a gym, a sky pool area, a sky garden, and a function hall.

IDC Prime is engaged in the design and development of green buildings for the open market.

IDC is a listed sustainable real estate developer. Some of the company’s projects include the 10-storey twin tower Primavera Residences condo complex in Cagayan de Oro and the Miramonti condo towers in Batangas.

On Monday, IDC shares declined by 0.72% or one centavo to P1.38 per share. — Revin Mikhael D. Ochave

BSP to shift to enhanced forecasting model by next year

THE BANGKO SENTRAL ng Pilipinas (BSP) aims to shift to an enhanced macroeconomic forecasting model by next year that will help in the formulation of monetary policy, officials said on Monday.

The BSP will adopt the Policy Analysis Model for the Philippines (PAMPh) for determining the path of monetary policy, which was made in partnership with the International Monetary Fund’s Institute for Capacity Development and the Japan International Cooperation Agency.

“The shift to conditional forecasts as a key input to monetary policy formulation is in line with best practices in inflation targeting central banks. Specifically, by representing the key economic gaps in the Philippine economy, the PAMPh allows a systematic, internally consistent, and economically coherent analysis of current and future economic conditions that will guide monetary policy formulation in the BSP,” BSP Department of Economic Research (DER) Economic and Financial Forecasting Group Deputy Director Dennis M. Bautista said at a briefing on Monday.

“Conditional forecasts will take the BSP in communicating current decisions and more importantly, the probable path of policy decisions helping to anchor inflation expectations,” he added.

The BSP will be shifting from its current multi-equation model (MEM) and single equation model (SEM).

The PAMPh generates a suggested policy path that Monetary Board members may use when making policy decisions. The previous models only forecast the inflation rate over a decided time frame based on a fixed policy rate.

“I think the key limitation is that the multi-equation model assumes a constant interest rate over the policy horizon,” BSP DER Director Dennis D. Lapid said. “So, this current model (PAMPh) ensures that when we give out a path for future inflation, it will have a corresponding path for not just GDP (gross domestic product), but also the policy interest rate along with it.”

The BSP will not disclose the policy paths forecasted by the PAMPh, and they will be for internal use for now, he added.

Mr. Bautista said the PAMPh uses 290 equations, while the MEM uses 24. The PAMPh also considers more sectors to see inflation drivers and other economic imbalances.

“The MEM has very good forecasting and performance but when you compare the two, the PAMPh considers more details of the economy. So, it can be used to address more, plus gives more explicit input on the monetary policy stance. It’s producing an entire path of the policy rate,” BSP Deputy Governor Francisco G. Dakila, Jr. said.

Mr. Bautista said the BSP will not be abandoning the old model but will use it along with the PAMPh.

“The MEM will then be one of the so-called satellite models. The PAMPh is quarterly because many of the variables are available only quarterly. But you need more detailed information on the development of inflation on a higher frequency basis, so that means you need a lot of so-called satellite or complementary models. The MEM will be one of them because it produces forecasts of inflation in the near term,” Mr. Dakila added.

University of the Philippines Los Baños Economics Senior Lecturer Enrico P. Villanueva said in a social media message that the main difference between the old and the new models could be better inflation forecasts.

“The past few months or year, their forecasted range of inflation, although a bit wide in range, normally captured the actual inflation figure,” he said.

“Due to the inherent difficulty of capturing and forecasting levels of economic variables, my suggestion is actually to temper the model’s output using expert judgment,” Mr. Villanueva added. “While macroeconomic modeling through graphical depiction is a doable and practical undertaking, its translation into mathematical or econometric models to be used in forecasting is not tractable. Econometric forecasting models are typically laden with assumption and oversimplification of complex real-life relationships among variables.” — AMCS

TIFF 2024: Cast of Ron Howard’s Eden bonded during an arduous filming

Jude Law in a scene from Eden. — IMDB

TORONTO — Ron Howard’s Eden may be based on a true story, but its actors at the Toronto International Film Festival said on Saturday the Darwinian story of survival departed from the historical record in one significant way: the cast members got along famously.

Eden is a story of eight idealistic Germans who move to an uninhabited island in the Galapagos archipelago in late 1920s. Before departing, the settlers had little in common except the will to escape a mundane of life in Weimer-era Germany and build new lives in an unspoiled paradise.

Eventually, however, the forces of nature and unscrupulous newcomers begin to pit the islanders against one another, and many of them mysteriously disappear.

Although the movie is set in the Galapagos, the island chain made famous by Charles Darwin, the movie was shot in Queensland, Australia.

Vanessa Kirby, known for her roles in The Crown and Napoleon, took the role of Dore Strauch, the love interest of German philosopher Friedrich Ritter, played by Jude Law.

Ms. Kirby told Reuters, the filming of Eden felt a bit like working on the reality TV show Survivor.

“It felt really intense, in the wilderness we were in the 100-degree heat in Australia in summer,” Ms. Kirby told Reuters on the red carpet. “We were sweaty we were bitten by everything, so it was real.”

Even so, everybody bonded on the set. “We got along really well,” she said. “Everyone in German accent: can you imagine that? It was really nice,” she said.

Daniel Bruhl, who plays the idealistic Heinz Wittmer, told Reuters that the moment the cast came together they were committed to the story.

“We knew that we were doing this for Ron. This was his passion project for years,” Mr. Bruhl said of the Oscar-winning director. “He has a contagious and good energy, and he did the job of casting people from different places. It is a very eclectic mix.”

Unlike the characters they portrayed in the film, he said, the cast enjoyed the project and are still in touch with one another. — Reuters

Bangko Sentral may cut rates again next month as inflation slows

BW FILE PHOTO

METROPOLITAN Bank & Trust Co. (Metrobank) expects the Bangko Sentral ng Pilipinas (BSP) to cut benchmark interest rates again next month, with inflation is seen to remain within target in the next two years.

“The market is currently pricing in four rate cuts from the US Federal Reserve and we believe we could see the BSP going ahead of the Fed and reducing policy rates at its October meeting. This would cement Remolona’s reputation as a front runner as BSP remains focused on supporting growth now that the inflation outlook remains favorable,” Metrobank Chief Economist Nicholas Antonio T. Mapa said in a note on Monday.

“We retain our 2+1 rate call (two cuts with a possibility of a third cut) for up to 75 bps (basis points) worth of rate cuts by the central bank,” he added.

The Monetary Board on Aug. 15 reduced its policy rate by 25 bps to 6.25% from a 17-year high of 6.5%, marking its first easing move in nearly four years.

Prior to the cut, the BSP kept its policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to rein in elevated inflation.

BSP Governor Eli M. Remolona, Jr. has said they could cut rates by another 25 bps within the year. The Monetary Board’s last two policy-setting meetings this year are on Oct. 17 and Dec. 19.

Meanwhile, the Federal Open Market Committee’s remaining reviews for the year are scheduled for Sept. 17-18, Nov. 6-7, and Dec. 17-18.

The US central bank is widely expected to begin its easing cycle at this month’s policy meeting, with markets pricing in a 25-bp cut at the review and 100 bps in reductions for this year. It has kept the federal funds target rate at the 5.25%-5.5% range following increases worth 525 bps from March 2022 to July 2023.

“Governor Remolona displayed central bank independence by forging ahead of the Fed last August given his expectations for domestic inflation amid a landscape of moderating Philippine growth,” Mr. Mapa said. “The central bank expects inflation to stay within target this year, next year, and the year after that, suggesting that the primary objective of price stability remains well in-hand.”

The BSP expects inflation to average 3.4% in 2024, 3.1% in 2025, and 3.2% in 2026 under its baseline scenario, within its 2-4% annual target.

Headline inflation slowed to a seven-month low of 3.3% in August from 4.4% in July and 5.3% in the same month last year. In the first eight months, the consumer price index stood at 3.6%.

“This indicates that the BSP is probably the central bank in the region with the most runway to reduce policy rates to more normal levels to help chase growth objectives. A healthy 150 bps of cumulative reduction over the next couple of months could help generate a takeoff for private investment and ensure a more sustainable course for growth,” he added.

Philippine gross domestic product expanded by 6.3% in the second quarter, bringing first-half growth to 6%.

To meet the lower end of the government’s 6-7% target for this year, the economy must expand by at least an average of 6% in the second half. — AMCS

Secure in Uncle Sam’s protection

FREEPIK

In defense of the proposed P256.1-billion budget of the Department of Defense for 2025, Defense Secretary Gilbert Teodoro, Jr. told the House appropriations panel on Aug. 29 that the country acted too late to upgrade its naval and air force capabilities and establish forward posts in the South China Sea. “The lesson is we procrastinated in putting aside a threat,” Mr. Teodoro said. The Philippines is now scrambling “double time” to correct this mistake.

Procrastinate means to “keep delaying” something that must be done. We did not procrastinate, or delay, the upgrading of our naval and air force capabilities. We simply did not act because we felt secure in the iron-clad protection of Big Brother America, which emerged after World War II as the dominant economic and military power and still is.

BACKGROUND
The sinking of the United States Navy ship USS Maine in Havana, Cuba, a colony of Spain, in February 1898 caused tension between the United States and Spain, eventually leading to the outbreak of all-out war between Spain and the United States in late April that year. Commodore George Dewey, commander of the Asiatic Squadron in Hong Kong, was ordered to destroy the Spanish fleet in Manila Bay. That he did decisively on May 1.

Emilio Aguinaldo, who, while in exile in Singapore, had made arrangements with representatives of the American consulate and Commodore Dewey to return to the Philippines to assist the United States in the war against Spain, returned on May 19. By then, the Filipino revolutionists had gained control of much of the country and had surrounded Manila.

However, Governor-General Fermin Jaudenes chose to surrender to white people rather than to what he considered inferior people, the dark Filipinos. To save Spain’s honor, a mock battle between Spanish soldiers and American forces was staged in Manila on Aug. 13. On Dec. 10, the Treaty of Paris, by which Spain ceded the Philippines to the United States for $20 million, was signed, officially ending the Spanish-American war.

Advocates of American expansionism insisted that the United States annex the Philippines as a base for expanding trade and influence in the Pacific. Vice-President Theodore Roosevelt, a promoter of American naval and military power, argued that if the United States did not keep the islands, Japan or Germany, which at that time was in search of colonies, would take them instead. Senator Henry Cabot Lodge of Massachusetts maintained that the United States needed to have a strong navy and be more involved in foreign affairs.

Addressing the US Congress in 1899, President William McKinley declared, “The Philippines are ours, not to exploit but to develop, to civilize, to educate, and to train in the science of government.” What he did not say was to project America as a world power, to use the Philippines as a military and naval base, and to establish a re-fueling station for American vessels sailing to and from China, a growing market for American manufactured products.

On Jan. 23, 1899, the Malolos Constitution was proclaimed and Aguinaldo was elected president. That made relations between Americans and Filipinos hostile. On Feb. 4, 1899, fighting broke out between the American forces and Filipino nationalists led by Aguinaldo.

President McKinley was re-elected president in 1900. He justified the annexation of the Philippines with his policy of benevolent assimilation, citing the intentions of the United States not as a conqueror but as a nation that will help uplift the Filipino people. After three years of bloody fighting, the Philippine-American War was brought to an end when Aguinaldo was captured on March 4, 1901.

ESTABLISHMENT OF US MILITARY, NAVAL BASES
Vice-President Roosevelt became president in September 1901 after President McKinley died from a shot by an assassin. A war monger against Spain, and a military hero during the Spanish-American war, President Roosevelt issued soon after he became president an executive order establishing the first American military bases in the Philippines.

The 2,800 hectares in Subic Bay, where the Spanish colonial government had developed a naval station because it was typhoon-free and the bay deep, was converted into a reservation for the US navy.

The old Spanish naval base at Sangley Point, outside Cavite City, that was captured by Commodore Dewey was converted into a US naval base to function as a fueling station, and subsequently as a communication and hospital facility.

During the Philippine-American War, the land owned by Captain Juan Gonzales in Taguig, Rizal, was expropriated without compensation and declared a US military reservation. It was named Fort William McKinley.

In 1903, 3,420 hectares of the ancestral land of the Aetas of Pampanga, where the grass was suitable for the horses because it was sweet, were developed into a reservation for the US Cavalry and named Fort Stotsenberg. The fort was enlarged to accommodate Clark Airfield in 1918. In 1919, Nichols Airfield, south of Manila, was built for the US Army Air Forces in the Southwest Pacific Theater.

In July 1941, the Mariveles Naval Base in Bataan was built for the use of the US Navy’s Asiatic Fleet. In November of that year, the development of Del Carmen Field in Floridablanca, Pampanga, intended to be a major aerodrome with multiple runways designed to serve heavy bombers, was started. But the engineers were not able to complete the field, and only P-38 aircraft flew from there.

Subic Naval Base, headquarters of the US 7th Fleet, and Clark Air Base, home of the US Air Force’s 13th Squadron, were the largest and the two most important US military installations outside the mainland USA.

All these military and naval facilities were destroyed by the same Imperial Japanese Naval Air Services that bombed the US Naval Base in Pearl Harbor, Honolulu on Dec. 7, 1941. The sneak attacks on Pearl Harbor and on US military and naval facilities in the Philippines brought World War II to the Pacific Theater. The Philippines fell under the brutal control of the Japanese Imperial Army beginning May 6, 1942.

THE PHILIPPINES REGAINS ITS INDEPENDENCE
The guerilla resistance and the American forces liberated the Philippines from Japanese control when General Tomoyuki Yamashita, Commander of the Japanese 14th Army in the Philippines, surrendered on Sept. 2, 1945. On July 4, 1946, the United States recognized the Philippines as an independent, sovereign country and withdrew its authority over the bases.

World War II demonstrated to the US military establishment the importance of establishing an elaborate network of military bases worldwide. Thus, officials in Washington easily convinced the profoundly grateful leaders of the Republic of the Philippines to enter into an agreement regarding the military bases the US had built in the Philippines when it was its colony.

The Military Bases Agreement, signed on March 14, 1947, allowed the United States to establish military facilities in the country for a term of 99 years. It placed no restriction on the use to which the US could put the bases nor the type of weapons that it could deploy or store there. It also prohibited the Philippines from granting base rights to any other country. The agreement practically allowed the bases named above, plus those built during World War II like the Leyte-Samar Naval Base, to remain under the authority and full operational control of the US Defense Department.

Just a week after the bases agreement was signed, another agreement was entered into by the two countries. The Military Assistance Agreement commits the US to provide the Armed Forces of the Philippines with military aid, military advice, and, for Filipino military officers, training in the US. The agreement was not intended for defense against foreign aggression but against the internal Communist insurgents.

The US Defense Department lost control of the bases specified in the Military Base Agreement — Clark Air Base in 1991 and Subic in 1992 — after the Philippine Senate rejected the extension of the agreement by another 10 years, but Philippine officials were still firm in their belief that the country was secure because there was the Mutual Defense Treaty to bank on.

The treaty dictates that both nations would support each other if either the Philippines or the United States were to be attacked by an external party. Philippine officialdom firmly believes that America’s military might is superior to any force on earth.

US President Joe Biden, State Department Secretary Antony Blinken, and Defense Secretary Lloyd Austin III have assured President Ferdinand Marcos, Jr. that the Mutual Defense Treaty will immediately take effect the moment a Philippine metropolitan territory or the island territories under its jurisdiction in the Pacific, or its armed forces, public vessels, or aircraft in the Pacific are attacked.

So, why upgrade our defenses when mighty Uncle Sam has got our back, ask our top officials rhetorically.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He is an avid reader of Philippine history.