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You can’t always be positive

Not everybody can be a cheerleader celebrating only things positive. A boss who dismisses suggestions because of doubts and perceived risks is considered “too negative.” A person always posing obstacles and challenges to any initiative is called behind his back as “Negatron,” after the Transformers movie character. As the subordinate in “Dilbert” being corrected by the boss for numbers that don’t add up complains — why is it so hard for you to give a compliment?

Sometimes, being negative is a good thing.

In medicine, negative results are welcomed with a sigh of relief, followed by a big celebration. One is tested for a possible ailment and the best news a doctor can give his nervous patient is that his laboratory results turned out to be negative — that the suspected condition is not present. (It’s just muscle tightness.)

In golf too, the higher the negative number, indicating how many strokes below par a golfer has racked up, the better his placing on the leader board.

Still, being negative is the opposite of affirming and supportive.

Negative campaigning in politics is publicly denounced as unethical. “Opposition research” is intended to flush out all the negatives about a candidate, even going to the extent of manufacturing nonexistent liabilities. Even candidates themselves use “oppo” research to check for their vulnerable spots and have talking points for demolition jobs, which has nothing to do with construction. Sometimes, foreign powers help tilt the balance by only releasing hacked negative material on one candidate to favor her opponent.

To allow the candidate to rise above the fray and be huggable to children and their moms, it is his operatives and proxies who take care of the attacks. These can be legal complaints from predictable personalities — they’re always the same names.

Politicians publicly declare that they want to discuss issues and not engage in personal attacks. Our brand of political discourse, even outside of elections (like nowadays) is more personal than ideological. Who follows a match of wits and ideas? Dirty linen, bales and bales of it, is what keeps the ratings up.

Why are some categories defined by what they are not? History and current affairs are referred to as “nonfiction” although some in this genre involve conspiracy theories and speculative realities. Fresh faces in politics that have no experience in the art of give and take are called “nontraditional” politicians. Healthy food is not referred to as nutritional but “non-fattening.” Peace agreements are called non-aggression pacts.

Some define themselves by what they don’t like. Hate objects are specified and categorized as personal allergies. CEOs are known for what irritates them — do not ask him to sign documents on his golf day. He is pissed off by loud voices and grating arguments.

Getting along entails avoiding negative traits that are known to be annoying to those you are trying to impress. Somebody who does not piss off the boss is regarded as satisfactory — he doesn’t have anything negative on his evaluation sheet — no room for improvement.

Architects interview customers to elicit what they dislike. Shown a home design, the negative thinker can pick the nits and observe that there are too many arches or the storage space is too small. But asked what design she has in mind, she draws a blank. In the construction stage for such a client, there are continuous change orders, with walls being torn down and floors ripped up, even before the cement has dried.

A negative list, because it is always shorter, seems easier to remember and follow. With a diet, food types to avoid (high fat, sugar, carbs) are a small slice of the food pyramid. Food not in the null list is therefore allowed. Rules for visa application (must not have a reason to stay indefinitely) or literary contests (must not have been previously published) also tend to be negatively phrased.

Negative criteria serve as an effective screening mechanism for medicine as well as life. Not having certain disadvantages like bad looks and awful attire get us through the door of an exclusive event faster than possessing unseen virtues like perseverance.

The positive approach of presuming limitless possibilities should be screened by what can’t be done. When asked to undertake a job, it’s all right to reply in the negative — no problem.

 

A. R. Samson is chair and CEO of Touch DDB.

ar.samson@yahoo.com

2 Abu Sayyaf members now under NBI custody

TWO MEMBERS of the bandit Abu Sayyaf group are now under the custody of the National Bureau of Investigation (NBI) headquarters in Manila. The two, presented to the media today, March 12, were captured in separate joint operations conducted last Feb. 27 in Zamboanga City by the NBI, the police and military. The suspects, identified as Hood Salvador Abdullah and Jimmy Sapih Bla have been linked to at least three different kidnap-for-ransom incidents. — Dane Angelo M. Enerio

Peace

EMPLOYEES of the Autonomous Region in Muslim Mindanao (ARMM) government gather this morning, March 12, to formally kick off the 7th Bangsamoro Week of Peace (BWP), with this year’s focus on the shared commitment of the Bangsamoro people for a just and lasting peace. Among the activities lined up for the annual event are the launching of the 2018 Pakaradjaan sa ARMM, introduction of the ARMM tribal villages, forum on autonomy and federalism, lakbay kultura, sports festival, peace concert, women’s summit, motorcade for peace, medical mission and Moro Youth Camp. The week of peace is held annually to commemorate the Jabidah Massacre, considered as one of the tipping points of the Bangsamoro struggle.

Nation at a Glance — (03/13/18)

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

House starts plenary debates on divorce bill

The House of Representatives on Monday, March 12, began the plenary debates on House Bill (HB) 7303 which seeks to institute absolute divorce in the Philippines.

In his sponsorship speech, Albay Rep. Edcel C. Lagman, who is one of the authors of the measure, said “the State shall be steadfast in protecting marriage as a social institution and as the foundation of the family” even as HB 7303 should be passed into law.

Mr. Lagman also noted that “the State is also duty-bound to help couples in dysfunctional marriages where reconciliation is virtually nil.”

Gabriela party-list Rep. Emmi A. De Jesus, another co-author of the bill, stated that the bill seeks to provide a “rights-based option… based on the recognition that the right to enter into a marriage contract has the corresponding spousal right to end such contract when it has reached the point of irreparability.”

Ms. De Jesus also maintained that the “common fear that divorce will erode morals and personal values on marriage appears unfounded” as divorce only adds to already existing options of legal separation, declaration of the nullity of marriage, and annulment as remedy to spouses who want to quit a failed marriage.

She added that the divorce “isn’t a Biblical and religious question” as it recognizes the “plurality of religious beliefs and cultural sensibilities in the Philippines.”

“It should be emphasized that the issue should be approached on the rights-based realm beyond any moral or theological consideration,” Ms. De Jesus said.

For her part, bill co-author Taguig City Rep. Pia S. Cayetano used as example the reported wife who was chopped and skinned by his husband out of rage.

“My question to each and everyone of us here today is: what is so unacceptable about divorce if this will result in the saving of life, of the sanity, of the dignity of a woman before something like this happens to her?” Ms. Cayetano said.

“We are simply asking that we provide the legal vehicle for women or for men who would need this as a result of home that does not give them the peace, the sanctity, the respect that was the promise that they expected when they said ‘I do,'” Ms. Cayetano added.

Buhay party-list Rep. Jose L. Atienza, Jr., who challenged the bill in the plenary, said that there are existing laws which protect men and women from abuse.

Ang sabi po ng ating Saligang Batas, ang pamilya ang pundasyon ng ating lipunan. Ito’y dapat pinalalakas (According to the Constitution, the family is the foundation of the society. It should be strengthened.). Section 2 (of Article XV) states that marriage is an inviolable social institution,” Mr. Atienza added.

The bill adopts as grounds for legal separation and annulment under the Family Code as grounds for absolute divorce. It also allows summary judicial proceedings to grant divorce on the condition that the couple had been de facto separated for five years; the couple is legally separated; a spouse is in a bigamous marriage; six or more years of imprisonment of a spouse; or a spouse undergoes a sex reassignment surgery.

The divorce bill also provides for six months cooling period should the couple reconcile. — Minde Nyl R. Dela Cruz

Suspected Islamist militant who guarded US hostages nabbed

Philippine police have arrested a suspected Islamist militant who allegedly helped guard a group of tourists kidnapped in 2001 including an American missionary who was later killed, the justice department said Monday, March 12.

Hood Abdullah is accused of guarding hostages including US citizen Martin Burnham, who was killed and his wife wounded in the crossfire during a botched military rescue attempt in June 2002.

Abdullah was a member of Abu Sayyaf, an Al-Qaeda-linked group blamed for the archipelago’s deadliest bombings, ransom kidnappings and beheadings in recent decades, Justice Secretary Vitaliano Aguirre said.

“Burnham, an American hostage, was always handcuffed to Abdullah… especially on the move,” Aguirre told reporters.

Burnham died 13 months after Abu Sayyaf gunmen kidnapped a group of 20 tourists at an upscale western Philippine resort, including the Burnhams and another American, who was later beheaded.

The gunmen took their victims to their southern island stronghold of Basilan, authorities said.

While Abdullah did not take part in the resort raid, he guarded the Burnhams when several groups of hostages including the missionary couple were put together in one detention area, Aguirre said.

The other hostages were plantation workers and members of the Jehovah’s Witness religious sect — two of whom were rescued and helped to identify Abdullah, the justice secretary added.

Abdullah was arrested on February 27 in the southern port city of Zamboanga, where Aguirre said he was believed to be scouting for fresh victims while working as a motel security guard.

On February 28, authorities arrested a second Abu Sayyaf suspect, Jimmy Bla, elsewhere in Zamboanga, Aguirre said.

Bla owns several powerful motorboats and is believed to have been providing “fast sea transport” to kidnappers, the justice department added.

The two suspects have denied involvement in terrorist activities. — AFP

First Gen unit, Meralco ink power supply contract

Lopez-led First Gen Corp. said its unit had entered into a power supply contract with distribution utility Manila Electric Co. (Meralco) for the sale and purchase of around 414-megawatts (MW) of baseload capacity.

First Gen told the stock exchange that with the power supply agreement (PSA), Meralco had secured “competitively priced” baseload electricity, or steady 24/7 power.

The power will be sourced from the listed generation company’s wholly owned subsidiary First NatGas Power Corp.’s “already constructed and currently operational” San Gabriel combined cycle natural gas-fired power plant within the First Gen Clean Energy Complex in Batangas City.

The term of the PSA is six years using gas from the Malampaya field, but, in the event that liquefied natural gas (LNG) becomes available, the term of the PSA could be extended upon mutual agreement with Meralco, First Gen said.

“The San Gabriel PSA offers a number of benefits that will enhance the quality of Meralco’s power generation portfolio by providing: (i) competitive dependable baseload capacity; (ii) an immediate source of replacement power during outages of other baseload plants; and (iii) the option for mid-merit supply matched with Meralco’s ramping requirement since San Gabriel has the ability to rapidly ramp up and down upon notice,” it said.

Under the terms of the PSA, power from San Gabriel is available for purchase by Meralco immediately.

However, the sale of electricity to the utility will only started upon its approval by the Energy Regulatory Commission. The PSA is set to expire on Feb. 23, 2024, unless extended by the parties.

Shares in First Gen were trading higher by 6.35% at P17.74 each, while those of Meralco were up 0.86% to P330 each at around noon on Monday. — Victor V. Saulon

Oil’s near $62 as US jobs fan optimism, rig drop eases fears

Signs of strength in the U.S. economy and data showing American explorers curtailed drilling activity is helping oil hold gains after its biggest jump in seven months.

Futures in New York were little changed after surging 3.2 percent Friday, the most since July 25. After the U.S. boosted rigs drilling for oil for six straight weeks, American explorers idled four rigs last week, easing fears over surging shale production. Meanwhile, the country’s jobs report topped estimates, increasing confidence in the world’s biggest economy and raising investors’ appetite for risk assets.

The renewed confidence in oil comes as investors increasingly grow concerned that U.S. crude producers may undermine efforts by the Organization of Petroleum Exporting Countries and its allies to curb output. While Friday’s jump helped push prices higher for the week, futures are still below their peak in January, with the market struggling to recoup losses from last month’s broader market slump.

As the rig count fell, “the market is starting to think that U.S. shale oil production may not steadily grow, which is supporting oil prices,” Takayuki Nogami, chief economist at state-backed Japan Oil, Gas & Metals National Corp., said by phone from Tokyo. “The U.S. economy getting better means oil demand will be stronger.”

West Texas Intermediate for April delivery traded at $61.76 a barrel on the New York Mercantile Exchange, down 28 cents at 7:14 p.m. in Singapore. The U.S. benchmark gained $1.92 to $62.04 on Friday. Total volume traded was about 34 percent below the 100-day average.

Brent for May settlement fell 38 cents to $65.11 a barrel on the London-based ICE Futures Europe exchange. The contract climbed 3 percent to $65.49 on Friday. The global benchmark traded at a $3.47 premium to May WTI.

American explorers cut the number of rigs drilling for oil by four, the first decline since mid-January, Baker Hughes data showed on Friday. That followed government data showing the U.S. added 313,000 jobs in February, the biggest increase since July 2016 and more than the median estimate of 205,000 new positions.

Still, fears over increasing U.S. production continue to weigh on producers and investors. Iran wants OPEC to work to keep oil prices at about $60 a barrel as an increase toward $70 will encourage shale oil output, Oil Minister Bijan Zanganeh said, the Wall Street Journal reported.

While OPEC nations have shown a high level of compliance with their pledged cuts, U.S. shipments eating into the cartel’s market share in Asia may prompt some nations to boost supplies, said Warren Patterson, a commodities strategist at ING Groep NV. The fallout could drag down prices to under $60, he said.

The pessimistic view was echoed in money managers’ short-selling position. Hedge funds boosted bets on falling WTI prices by the most this year after American production surged to record levels, according to the U.S. Commodity Futures Trading Commission. — Bloomberg

Trade war to US inflation to be in focus for emerging markets

Emerging-market investors will be gauging the effect of a possible trade war after President Donald Trump revealed his tariff plans. They will also be dissecting the U.S. inflation figures for clues on the Federal Reserve’s rate-hike path.

Below are some of the events and issues likely to dominate trading in the coming days:

Trade and Tariffs

Russia releases January trade data amid concern the country could be among the most affected by U.S. tariffs. Shares of Russian metals companies tumbled in Moscow last week after Trump decided to impose levies on steel and aluminum.

Keeping China Growing

In China, the second week of the National People’s Congress may bring the announcement of a new head for the central bank, who will take on the task of keeping the economy growing while defusing debt risks and steering monetary policy. People’s Bank of China Governor Zhou Xiaochuan, who is due to retire soon, said last week that market access reforms should be accelerated, and that China “can be bolder in opening up.”

China also reports monthly retail sales, industrial production and fixed assets.

Indian Inflation

India on Monday unveils inflation data that will dictate the trajectory of interest rates. The yield on 10-year Indian government bonds fell last week after three weeks of gains.

Peruvian Politics

Peru’s politicians may try again to impeach the president.

President Pedro Pablo Kuczynski testifies before a congressional committee investigating the so-called Carwash bribery scandal on Friday, after which lawmakers may reopen an impeachment debate. The last time Kuczynski’s ouster looked likely, Peruvian bonds swooned and the sol traded at a record low. — Bloomberg

Stocks rebound as interest rate hike fears ease

By Arra B. Francia, Reporter

LOCAL EQUITIES bounced back on Monday, tracking positive developments in global markets as fears over interest rate hikes eased.

The bellwether Philippine Stock Exchange index (PSEi) climbed 0.96% or 80.99 points to close at 8,453.50 today, back in the green after two days of losses last week. The all-shares index was likewise up by 0.61% or 31.19 points to close at 5,083.98.

“Today’s PSEi rebound is more of tracking the rise of regional and overseas markets that were buoyed by the possible easing of interest rates pressures in the US. Some bargain hunting is also a factor given the overall market decline last week that have brought relative valuations down,” PCCI Securities Brokers Corp. Research Head Joseph James F. Lago said in an e-mail on Monday.

The Dow Jones Industrial Average jumped 1.77% or 440.53 points to 25,335.74 last Friday. The S&P 500 index also added 1.74% or 47.60 points to 2,786.57, while the Nasdaq Composite index gained 1.79% or 132.87 points to 7,560.81.

Papa Securities Corp. Trader Gabriel F. Perez also attributed the market’s increase to the strength of US markets, which also prompted markets in the Asia-Pacific region to rally.

Majority of local sectoral indices were in positive territory on Monday, with financials leading the charge with a 1.5% increase or 32.76 points to 2,213.51. Property followed with a 1.17% or 44.26-point climb to 3,818.33; services increased 0.67% or 11.81 points to 1,767.17; industrials rose 0.66% or 76.71 points to 11,549.73; while holding firms added 0.58% or 49.18 points to 8,426.02.

Mining and oil was the lone sub-index that declined, dropping 0.66% or 76.27 points to close at 11,445.18.

A total of 8.62 billion issues valued at P7.20 billion switched hands, higher than Friday’s value turnover of P6.58 billion.

Decliners narrowly beat advancers, 109 to 106, while 44 issues remained unchanged.

Foreigners continued their selling streak on Monday, as net foreign outflows rose to P731.71 million from the net sales of P573.73 million logged last Friday.

First Gen Corp was among the most actively traded stock on Monday, after disclosing that its San Gabriel Plant is now contracted with the Manila Electric Co. Papa Securities’ Mr. Perez noted the stock had the highest net foreign buying at P30.8 million.

Sought for an outlook, PCCI Securities’ Mr. Lago said the market may continue trading up, but may still be affected by the faster February inflation print of 4.5%, based on 2006 prices.

“The PSEi will certainly attempt to move back above the 8,500 level but it might be dependent on how investors will come to grips with local inflation that came in higher than expected for the first 2 months of the year,” Mr. Lago said.

China seen slowing spending on Belt and Road energy projects

China’s thirst for overseas energy investments is slaking, at least by one tally.

The nation’s financing for so-called Belt and Road Initiative energy projects dropped 28 percent to $14.3 billion last year from $19.9 billion, according to data released Monday by Boston University’s Global Development Policy Center. Spending last year included investments in gas pipelines in Malaysia, coal power plants in the Pakistani desert and an oil terminal in Bangladesh.

China has invested about $128 billion in energy projects in Belt and Road countries since 2001, according to Boston University’s research, which tracks finance data from the country’s two policy banks, the China Development Bank and the Export-Import Bank of China. The slowdown in spending last year came as the government cracked down on capital outflows, scrutinizing companies from HNA Group Co. to Anbang Insurance Group Co. that expanded rapidly overseas.

“In late 2016 and early 2017 China suffered a rush of capital outflows due to a mix of premature capital account liberalization and external conditions,” Kevin Gallagher, professor of Global Development Policy at Boston University, said by email. “This led to some fairly tight restriction on capital flows that slowed things down a bit across the board.”

President Xi Jinping announced the Belt and Road Initiative project almost five years ago to rebuild the ancient Silk Road, and to extend China’s reach through Europe, Asia and Africa via infrastructure projects. It includes investments in road, railways, ports and energy ventures across more than 60 countries to open new business opportunities for domestic companies.

Boston University’s research tracks projects in those countries since 2000, more than a decade before the official beginning of Belt and Road Initiative that have been backed by China’s two global policy banks. Other analysts sometimes include private company investments not funded by those banks when researching the initiative.

About half of total energy investments to date went toward electricity generation in countries from Pakistan to Ukraine. The financing is focused on coal power plants in Asia and Africa while gas- and oil-based projects for exploration and distribution dominate projects in Europe and Central Asia, according to the data.

The initiative traverses territory where most bond investors fear to tread. The infrastructure projects also carry uncertainty, with eight countries “at particular risk of debt distress,” according to a research report released last week by the Washington-based Center for Global Development.

It also targets energy sources that have fallen out of favor with international investors. Coal has been the biggest energy source targeted by the banks, with about $44 billion, or a third of energy investments, geared toward the fuel since 2001, according to the research. Oil followed at almost $31 billion and natural gas garnered roughly $27 billion, according to the data.

“Although the majority of development banks and even commercial banks have steered away from coal-fired power plants for environmental and social reasons, the demand is still there and China is filling it,’’ Gallagher said. “Financing so much overseas coal could be risky, as social protest and national policy changes for air pollution and climate change could leave China holding a bag of stranded assets.” — Bloomberg

Peso slips on cautious markets

THE PESO inched lower against the dollar on Monday as market players were cautious due to possible interest rate hikes coming from central banks here and in the US.

The local currency ended yesterday’s session at P52.04 versus the greenback, a centavo weaker than the P52.03-per-dollar finish on Friday.

The peso opened session stronger at P51.95 per greenback. Its intraday low stood at P52.07, while its best showing was at P51.92 versus the US currency.

Dollars traded decreased to $507.9 million yesterday from its $592.1 million finish the previous session.

“The peso closed sideways as investors remained cautious on the dollar in view of March rate decisions by the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve,” a trader said in an e-mail on Monday.

The Fed is widely expected to raise rates later this month, and two more times before the end of the year. Traders stuck to those expectations after a government report early Friday showed job gains surged in February but average hourly wages rose just four cents, slower than expected.

On the sidelines of an event in Makati City on Monday, BSP Governor Nestor A. Espenilla, Jr. said the Philippines does not need to follow the Fed’s move to tighten its monetary policy settings.

“People seem to want us to follow the US’ four rate hikes. But I think it is important to say if you look at the policy stance of the US by comparing its policy rate vis-à-vis its inflation, it is a much looser position than where we are, so why should we follow rate hike one-for-one,” Mr. Espenilla said, adding that the country’s monetary authority allows exchange rate flexibility.

“We are not married to the idea that the peso is of this value come hell or high water it must stand at this value. We let it move,” he said.

“It’s an appropriate response. The current account is widening, exchange rates move, and it creates a self-collecting mechanism so that’s part of the policy combination that we consciously chose.”

Meanwhile, another trader said the peso moved sideways yesterday as banks ignored the US jobs data as well as the domestic balance of trade data released on Friday.

“For today, I think [the data] were ignored,” he said.

The country’s balance of trade stood at a $3.32-billion deficit in January, higher than the $2.47 billion deficit booked in the same period last year, preliminary data showed.

Meanwhile, the US economy added 310,000 jobs in February, according to the US Labor Department. However, the unemployment rate remained steady at 4.1% last month, its lowest since December 2000.

For today, two traders see the peso moving between P51.90 and P52.10, while the first trader gave a slightly wider forecast range of P51.90 to P52.20.

“Rates are still expected to move sideways ahead of uncertainty to the US February inflation data to be released [today],” the first trader noted. — Karl Angelo N. Vidal with Reuters