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No takers

Considering the Timberwolves’ insistence on getting back for the buck, their intent to move four-time All-Star Jimmy Butler has not surprisingly hit a snag. Even as they were close to getting a deal done, going so far as to share medical records with the Heat, their 11th-hour demand “to amend the framework of the trade,” per ESPN.com’s Adrian Wojnarowski, led their otherwise-willing partner to back off.
That the Timberwolves actually “advanced to the brink of a blockbuster trade” was no small feat. True, Butler wanted out and made his plan to explore free agency next year public, effectively sealing his fate; one way or another, he was going, going, gone. On the other hand, his insistence on playing for employers with the wherewithal to offer him a maximum five-year, $190-million contract has severely limited options.
It also hasn’t helped that head coach Tom Thibodeau continues to hold out hope for Butler suiting up in blue and white anew. With his job on the line, he’s reluctant to part with the single biggest reason for the Timberwolves’ first playoff appearance in 14 years. The incongruity with owner Glen Taylor’s pronouncements has effectively shooed away potential suitors.
Taken in this light, the Heat’s offer prior to backing out may well be hard to top. Even as Butler’s the National Basketball Association’s finest two-way workhorse not named Kawhi Leonard, the miles on his odometer and notable predilection for injury discount his overall effectiveness. That he will be an aging financial albatross on the tail end of the contract he seeks likewise gives interested parties pause.
That said, the Timberwolves clearly believe they can get better. Forget that the little leverage they have is eroded by the day. Never mind that Butler isn’t planning on hitting the court unless and until he sports a new address. As far as they’re concerned, he’s worth more than what they’ve seen so far. It’s a gamble, but evidently one they’re willing to take. Too bad for fans; no matter what happens, they lose.
 
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Sea show


As Zamboanga City celebrates its month-long Hermosa Festival, crowds flocked to the R.T. Lim Boulevard Sunday, Oct. 7, to watch the Regatta de Zamboanga where some 200 traditional sailboats joined the annual race, followed by a 20-minute Capability Demonstration by the Philippine Navy, along with the Air Force, Marines, and the Army as well as the Philippine Coast Guard.

Nation at a Glance — (10/09/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Boracay task force sets guidelines to sustain island rehab

boracay
THESE new guidelines set provisions for sewage management, traffic alleviation, and, most significantly, a cap on the number of people allowed in Boracay at any one time. — PHILSTAR

By Anna Gabriela A. Mogato
THE Boracay Inter-Agency Task Force (BIATF) has set the guidelines for the island’s continued rehabilitation, following its formal opening on Oct. 26.
“We cannot and will not let the influx of people destroy Boracay again or undo all the improvements and innovations that we have introduced and will be introducing,” said Task Force Chief and Environment Secretary Roy A. Cimatu.
Mr. Cimatu said that these guidelines will be turned into resolutions by government agencies and adopted into ordinances by the local government unit.
Under the accepted guidelines, the taskforce has approved the use of electric vehicles, set the moratorium for water sports and building new establishments, while prohibiting casinos and online gambling businesses on the island.
They have also set provisions for sewege management among small and large resorts, and a revised traffic scheme to alleviate Boracay’s notorious congestion issues.
Most significantly, these guidelines also limit the number of people allowed to stay on the island, tourists and workers alike.
A study by the Ecosystems Research and Development Bureau found that Boracay’s capacities can can only accomodate 54,945 people at any one time.
That number breaks down to 19,215 tourists, and 35,730 residents, migrants, and stay-in workers.
Prior to Boracay’s closure, its population already exceeded its carrying capacity by almost 30% at 70,700.
The BIATF is currently working on a relocation facility for Boracay-based employees in nearby Aklan, as well as a transportation system to take workers from the mainland to Boracay.

PCC green-lights SYNNEX acquisition of Convergys

By Anna Gabriela A. Mogato
THE Philippine Competition Commission (PCC) has green-lighted American business process outsourcing firm Synnex Corp.’s acquisition of US-based call center company Convergys Corp.
In the decision signed last Sept. 20, PCC claimed that the acquisition would not result in a substantial lessening of competition in the market, citing continued post-transaction restraints from competitors and no added “significant barriers to entry and expansion in the market.”
SYNNEX earlier announced that it was set to acquire Convergys for $2.8 billion. Convergys would then be merged with Concentrix, a SYNNEX subsidiary which also operates call centers.

Online hiring jumps 18% in August — Monster.com

By Anna Gabriela A. Mogato
Online hiring activity in the Philippines grew by 18% year on year in August, data from job listing platform Monster.com showed.
In its latest Monster Employment Index, which measures online job posting activities, the retail and healthcare industries led the double-digit growth with a 40% and 33% increase respectively.
The business process outsourcing and information technology-enabled services industries, consistent economic drivers, saw online recruitment activities stagnate in August. Meanwhile, education posted the lowest growth, with a 3% decline year on year.
Despite the high surge in retail and healthcare online hiring activities, professionals in the fields of purchase, logistics, and supply chain management were the most sought after, posting a 38% increase in demand.
Professionals in sales and business development, healthcare, human resources, and administration followed with a 32% increase in demand.
Customer service jobs, on the other hand, saw its demand slip by 1%.
Monster.com Chief Executive Officer for Asia Pacific and Middle East Abhijeet Mukherjee pointed to the country’s ongoing infrastructure drive as the reason behind the high demand for talent in logistics and supply chain management.
“The government’s Build, Build, Build campaign is looking to pave the way for a new era of growth and prosperity in the Philippines,” Mukherjee said.
But while numbers were positive in August, Mukherjee cautioned firms to stay vigilant against potential irregularities.
“While the medium-term outlook may be positive, the labour market can be exposed to domestic risks and vulnerabilities as a consequence of market irregularities and structural changes,” he said.

Meet the Roaming Mantis, the world’s most pervasive smartphone malware threat

Meet the Roaming Mantis. No, it’s not a yoga pose. Or Poblacion’s newest speakeasy. It’s likely one of the largest, fastest-growing cybersecurity threats the world is facing today.
The Roaming Mantis was first discovered in April by Kaspersky Lab’s Global Research & Analysis Team (GReAT) APAC Director Vitaly Kamluk. At the time, it was a formidable piece of malware worming its way into Android phones across Asia. Now, it’s expanded to users in Europe and the Middle East. Latest reports claim the Roaming Mantis is now digging into iOS devices as well.
“We’re pretty much looking at cyber criminals who show no traces of stopping anytime soon,” said Suguru Ishimaru, security researcher at GReAT.
Speaking at Kaspersky Lab’s Annual Cyber Security Weekend in Siem Reap, Cambodia, Mr. Ishimaru shared the latest developments in the Roaming Mantis’ global campaign:

It spreads through various means

While the Roaming Mantis has its roots in MoqHao, a related piece of SMS-carried malware that spread through South Korea in July 2017, it has since moved on to hijacking Domain Name Systems (DNS), a protocol that commands how devices on the Internet communicate.
Through the DNS, the malware has been able to target Android smartphones, creeping in through various means, including routers with weak passwords. As soon as malicious actors gain control of the DNS, Mr. Ishimaru says, they control the network.
Other methods include redirecting users to fake sites that request for their private data, and SMS spoofing delivery services that pretend to send messages from legitimate sources. Phishing, essentially.
The malware has also begun targeting iOS devices used for cryptocurrency mining through CoinHive.

It evolves really fast

“[The Roaming Mantis undergoes] rapid change, very fast., Mr. Ishimaru said. “In one day, they can modify one line, next day, two lines and edit new features. They are so active and very aggressive and rapidly improving.”
The Roaming Mantis initially launched with four languages supported, essentially targeting users communicating through those languages. Today, the malware supports 27 languages — including Tagalog. What does this mean?
If the malware supports a particular language, Mr. Ishimaru says, that means the hacker group behind it sees money to be made among those users. With a vast majority of Filipino smartphone owners on the Internet and using Android, there is absolutely every incentive for hackers to support Tagalog.

It’s difficult to measure damages, but the scale is definitely huge.

Mr. Ishimaru confessed that his team has had a difficult time measuring the scale of the Roaming Mantis’ damages. They’ve found that at least 4,000 users have experienced data leaks due to malware installed in their devices. But that doesn’t begin to paint the full picture.
“But they don’t only use malware. They use malware and phishing sites, and mining to get money,” Mr. Ishimaru said. “I can’t imagine how big, but I’m going to say it’s a very big campaign.”
Based on their research, Mr. Ishimaru’s team found that the Roaming Mantis has managed to glean names, addresses, credit card numbers, and bank information from affected users.
Security questions and their answers were intercepted as well, meaning cybercriminals have a chance to regain access to accounts even after passwords are changed.

Cybercriminals are like “mafia or yakuza.”

Recent developments in the Roaming Mantis campaign follow a global trend in cyber threats: Criminals are upscaling their attacks in a major way.
Mr. Ishimaru noted that the criminals behind the Roaming Mantis were strategic, but rapid in how they scaled their operations. “They just supported all platforms,” he said. “That’s it. Any platform that gives access to their server. They host malicious content for each device, each platform.”
As to why there are cyber threats such as Roaming Mantis still being developed by individuals, Kaspersky’s researchers have noted that it is all just for profit.
“Cybercriminals [are] like mafia or yakuza, they have a strong financial motivation,” Mr. Ishimaru said. “They want the money.” While their methods are sophisticating by the day, Mr. Ishimaru noted that at least understanding the group’s motivations provides clues to what may lie in store.

Thankfully,  it’s pretty simple to find out if the Roaming Mantis has found its way to your device.

“In my experience and [in the] case in Japan, the first time Roaming Mantis used DNS hijacking — any connection to the bad guy’s server, if you want to connect to Google, [you] cannot. If you want to connect to Yahoo, [you] cannot. If you want to access the bank, you cannot,” Mr. Ishimaru said.
Mr. Ishimaru said the key to keeping safe is a simple rule-of-thumb: Don’t allow third-party apps on your device. He noted that it’s very rare for malware to be found in the Google App store. As an added precaution, any user should have an anti-malware app installed on their device by default.
Home routers, which are not as frequently checked as phones and PCs, should also receive some TLC. Mr. Ishimaru said that IDs and passwords should be frequently changed.
While the Roaming Mantis is up for another update anytime soon, these safety precautions should keep it at bay.
“The intense financial motivation of this group is undoubtedly fueling it to try different attack and evasion tricks to widen its reach in a short period of time,” he said. “In its haste to jump on different platforms, languages, and territories, Roaming Mantis is leaving crumbs of clues that guide us in understanding and predicting its next moves.”
“We will keep monitoring their activity,” Mr. Ishimaru said. “We have to keep watching to save the world.”
As of writing, the Roaming Mantis was found to support the following languages:

  • Arabic
  • Armenian
  • Bulgarian
  • Bengali
  • Czech
  • English
  • German
  • Georgian
  • Hebrew
  • Hindi
  • Indonesian
  • Italian
  • Japanese
  • Korean
  • Malay
  • Polish
  • Portuguese
  • Russian
  • Serbo-Croatian
  • Simplified Chinese
  • Spanish
  • Tagalog
  • Thai
  • Traditional Chinese
  • Turkish
  • Ukrainian
  • Vietnamese

 

Coming out of seclusion

Once an off-the-grid destination preferred by expats, Misibis Bay is opening up to welcome adventure-seeking weekend warriors.

Money on my mind

We asked, they answered: Where do you spend your cash?

Economists watch if inflation has peaked

INFLATION can now go either way towards yearend after September logged a fresh nine-year high, economists said in separate assessments last weekend.
Prices of basic goods rose by 6.7% in September from a year ago to mark a fresh nine-year high, although a tad slower than market expectations.
The Philippine Statistics Authority said on Friday last week that food, transport and utility prices led the increase last month, worsened by the impact of typhoon Mangkhut, locally called Ompong, and unrelenting oil prices.
That pushed the nine-month pace to five percent, a percentage point higher than the 2-4% target set by the Bangko Sentral ng Pilipinas (BSP) for the entire 2018.
Headline inflation rates in the Philippines (September 2018)
Both the central bank as well as President Rodrigo R. Duterte’s economic team are of the view that inflation has already peaked, and will clock in slower during the last three months of 2018.
On a month-on-month basis, inflation clocked in at 0.9% in September, steady from August’s pace.
Financial markets reacted in different ways to Friday’s inflation report, with the Philippine Stock Exchange index shedding 0.21%, though shallower than Thursday’s 1.63% fall, while the peso actually rebounded against the dollar, strengthening by nine centavos from Thursday.
But Emilio S. Neri, Jr., chief economist at the Bank of the Philippine Islands (BPI), said inflation could still pick up.
“The behavior of inflation has a direct link with oil. Unless the said commodity shows a consistent deceleration, then consumer prices may continue to rise significantly,” Mr. Neri said in a report sent by e-mail late last Friday.
Citing historical data, BPI’s report said inflation usually breaches target when average global oil prices surge by at least 30% year-on-year. The benchmark West Texas Intermediate (WTI) crude oil price rose by 40% last month, according to the report.
“Recent global oil price trends are likely to prevent a turn in the headline inflation print in the near term. Inflation could peak in December should oil prices fall month-on-month in October and November but the turn could be delayed further if WTI Crude and Brent continue to soar,” Mr. Neri cautioned, adding that the impact of damage from typhoon Ompong may spill into this month.
Still, Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said that inflation is “starting to drop” after September, when Ompong’s impact on food prices contributed 30-50 basis points in the September inflation print.
London-based Capital Economics also said that inflation could ease over the months ahead as government interventions to boost rice supply help ease price pressures.
“[E]ven if oil prices remain elevated, oil price inflation will start to moderate over the next few months. Finally, the impact of previous tax hikes on items such as fuel, alcohol and high-sugar drinks will drop out of the annual comparison at the beginning of next year,” the think tank said in a report, even as it said it expects two more rate hikes from the Bangko Sentral ng Pilipinas (BSP) either in its Nov. 15 or Dec. 13 policy review — the last two for 2018.
The analysts also pointed out that the sustained depreciation of the peso may push the BSP to hike rates further, apart from the goal of reining in inflation expectations. — Melissa Luz T. Lopez

Headline inflation rates in the Philippines (September 2018)

INFLATION can now go either way towards yearend after September logged a fresh nine-year high, economists said in separate assessments last weekend. Read the full story.
Headline inflation rates in the Philippines (September 2018)

AMRO adds to expectations of PHL growth slowdown as price hikes bite

A REGIONAL research group has slashed its growth forecast for the Philippines, noting that surging inflation and consumer pessimism will likely weigh on household spending and dampen overall expansion.
The ASEAN+3 Macroeconomic Research Office (AMRO) joined multilateral lenders in trimming the growth estimate for the Philippines to 6.5% from 6.8% previously, as reported in the October issue of its Regional Economic Outlook.
That puts the Philippines as the sixth fastest-growing economy among the 10 Association of Southeast Asian Nations (ASEAN) members plus China, Hong Kong, Japan and South Korea, while domestic inflation is the fastest across the 14 markets covered.
“For the growth rate revision, the main reason is that inflation is higher than previously expected, and high inflation continued to erode the purchasing power of household and consumer confidence,” AMRO chief economist Hoe Ee Khor said via e-mail when sought for an explanation.
Myanmar is expected to post the fastest growth at 7.4%, followed by Cambodia (7.2%), Vietnam (6.9%), Laos (6.7%) and China (6.6%).
Philippine gross domestic product (GDP) posted a disappointing six percent expansion in the second quarter, fueling last semester’s climb to 6.3% against the government’s 7-8% target for the full year and the 6.6% actually clocked a year ago.
Meanwhile, inflation is projected to soar to 5.2% for 2018, a leap from the 3.2% average last year. Mr. Khor said rising costs of basic goods are eating into real GDP growth, and are expected to be the major hurdle to expansion.
September inflation churned a fresh nine-year high at 6.7% as food, transport and utility costs kept increasing amid supply bottlenecks and elevated oil prices. This placed the third-quarter average at roughly 6.3% while the nine-month pace hit five percent, well above the 2-4% target band for 2018.
“Private consumption has already shown some weakness and GDP growth decelerated to six percent in Q2 2018. Moreover, consumer confidence contracted in Q3 2018 for the first time since Q3 2016. Thus, as private consumption takes up around 70% in GDP, it led to the revision,” the AMRO official said.
The central bank’s Consumer Expectations Survey bared a net -7.1% reading in the third quarter, showing that more Filipinos were pessimistic towards economic prospects as they see commodity prices maintain their ascent. This is the first time since mid-2016 when the confidence score was in the negative, and is the lowest since the fourth quarter of 2015.
The AMRO’s revisions mirror similar downgrades by the World Bank and the International Monetary Fund, while the Asian Development Bank pencilled in a lower forecast of 6.4% the past week.
AMRO said that the downward-revised growth rate “still reflects the robust growth of the Philippine economy.”
Budget Secretary Benjamin E. Diokno last week conceded that the state’s growth goal is as good as missed, but could still manage to hit 6.7-6.9% as he expects economic activity to improve this semester.
In 2019, AMRO sees Philippine GDP growth slowing further to 6.4%. This is slower compared to the 6.7% given by the IMF and the World Bank.
Mr. Khor said his group was watching external risks “closely,” after it maintained the ASEAN+3 region forecast at 5.4% this year, “as most economies are on track to achieve their growth targets,” even as it shaved its 2019 projection to 5.1% from 5.2% initially.
Still, AMRO expects the Philippines to be resilient to external shocks, as its macroeconomic fundamentals remain sound.
“The macroeconomic fundamentals of the Philippines are generally sound, with no serious external imbalance and it has ample international reserves,” Mr. Khor said.
“Moreover, the latest data suggest that the current account deficit remained contained and the basic balance is still positive. Thus, the economy is expected to remain resilient against external shocks.” — Melissa Luz T. Lopez and Elijah Joseph C. Tubayan

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