Nation at a Glance — (04/11/18)
News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
Peso slightly strengthens vs dollar, touches P51 level
THE PESO slightly strengthened against the dollar on Tuesday, touching the P51 level intraday, due to weaker-than-expected jobs data in the United States.
The local currency ended yesterday’s session at P52 against the dollar, two centavos stronger than the P52.02-per-greenback finish on Friday.
The peso moved sideways for most of the day, opening the session stronger at P52.015 against the dollar. Its intraday low was at P52.03, while its best showing stood at P51.96 versus the US currency.
Dollars traded slid to $570.64 million from the $645.8 million recorded on Friday.
“Foreign exchange tradings were also quiet everywhere else, so I feel like there’s nothing to go on,” a trader said in a phone interview.
Meanwhile, another trader attributed the slightly stronger peso to the weak US nonfarm payroll data which were released last Friday.
“Peso gained strength today following the release of weaker-than-expected US non-farm payrolls data last Friday,” another trader said in an e-mail.
According to the Bureau of Labor Statistics, the US created 103,000 jobs in March, well below the 193,000 market expectations as well as the 326,000 nonfarm payrolls reported in February.
The jobless rate stayed at 4.1% last month, below the market expectations that it will go down to 4%.
Meanwhile, a third trader said the weaker dollar was due to the renewed concerns over the trade war between US and China.
Reuters reported Chinese President Xi Jinping vowed to open the country’s economy further and lower import tariffs on products including cars, as he attempted to defuse a growing trade dispute with the United States.
For today, the third trader sees the peso to move between P51.90 and P52.15, while the second trader gave a wider range of P51.80 to P52.20.
“The local currency is expected move sideways, with an upward bias, as investors will closely monitor the local trade balance data and inflation figures of US and China [today],” the second trader noted. — K.A.N. Vidal
BSP expects national ID legislation to pass in May
THE Bangko Sentral ng Pilipinas (BSP) expects legislation covering the national identification (ID) system to be enacted next month.
Speaking at the national convention of the Chamber of Thrift Banks in Makati, BSP Governor Nestor A. Espenilla, Jr. said the monetary authority expects bills calling for a national ID to be passed into law next month.
“Our great expectation is that we will have finally a proper national ID law as early as next month,” Mr. Espenilla said today, April 10, adding that the Senate and House versions have been certified as urgent.
The Senate and House versions of the bill establishing the national ID system have been approved on third and final reading. Mr. Espenilla said he expects the bicameral conference committee to convene next month to consolidate the two versions.
The national ID system will require Filipinos and foreign residents in the Philippines to have a single ID, making transactions with the government and private firms easier.
Implementing the national ID system, according to Mr. Espenilla, does not necessarily entail creating physical identification cards.
“It does not mean we have to create a physical ID… This is basically an identification system. It is going to be platform-based and digitally enabled,” he said.
“But the real authenticity of the information is the biometrics that are verifiable digitally. So you go to a terminal… Under a proposal, we will assign a randomly generated ID number which we will keep for life.”
The central banker added that the national ID system will address many issues, such as anti-money laundering compliance and new-customer acquisition, among others.
“We are ready to recognize the national ID to replace all other IDs that we require for our customer onboarding purposes. It will address many of the points in money laundering compliance… And it will also facilitate the acquisition of customers from a distance.”
Mr. Espenilla also noted that the measure “directly supports [BSP’s] aspiration to create a more digital economy.”
The passage of the national ID system is also expected to foster financial inclusion, as unbanked Filipinos will be able to enter the formal financial system through the use of the national ID.
“We have great expectations for this, and I can assure you we are ready to move forward quickly with the foundational biometric ID system,” Mr. Espenilla said, adding that he hopes the measure will not get any political derails.
“We really need it. Probably we’re the only [country in Southeast Asia] that doesn’t have one, so it’s time to move forward.” — Karl Angelo N. Vidal
Duterte touts innovation investments at Boao
PRESIDENT Rodrigo R. Duterte expects the Philippines to join the world’s most innovative economies by the end of his term in 2022, citing initiatives to upgrade worker skills and raise the competitiveness of small businesses.
“We are investing in innovation — in government processes, in technology and in human development. By 2022, the Philippines sees itself as joining the top one-third [in] the Global Innovation Index. We will empower more Filipinos with better skills and expertise and with our Innovation Council under the Department of Science and Technology, we will improve the competitiveness and productivity of our MSMEs,” the President said in his speech during the opening ceremonies of the Boao Forum for Asia (BFA) in Hainan, China on Tuesday.
With greater access to technology and financing, according to Mr. Duterte, the Philippine government “will apply Science, Technology and Innovation in agriculture and the [service] industries.”
“We will invest in improving research and development and intensify international cooperation in this area. We are willing to learn from others,” he added.
The President also stressed that his administration is “slowly making the Filipino dream a reality.”
“As we strive to [push] our economy forward, we encounter challenges. But we will not be deterred. We seek to partner with responsible businesses, home-grown and foreign based, to drive the progress we envision.”
Mr. Duterte said he continues to target illegal drugs, which he called “pernicious and rotten social diseases that devour my country.”
He added that the Philippines “will do more” to encourage investment in “infrastructure, innovation, and interconnectivity.”
“Our milestones are ambitious: We will spend 5-7% on infrastructure. We aim to reduce poverty from 22% in 2015 to 14% by 2022. We intend to achieve growth of 7-8% every year up to 2022.”
The President said he is confident that the infrastructure program will provide a “solid backbone” for the economic growth of the country.
“This will continue to upgrade the infrastructure, connect more people and communities and create more jobs. Already we have started a three-year rolling program amounting to over $69 billion until 2022,” he added.
Before his flight to Beijing on Monday, April 9, the President said he was flying to China “thinking about money because in truth, (he) needs money.”
In his interview with ANC on Tuesday morning, former ambassador Jose Apolinario L. Lozada, Jr. said Mr. Duterte’s words “were not really flattering to so many people who were listening.”
“But I think he was trying to get China’s attention, so that he will be given the best deal when he talks to him (President Xi Jinping). It’s a gamble. That’s how he looks at it, and we can only hope that his gamble will pay [off],” he added.
The “gamble,” according to Mr. Lozada, is that “the money, which has been promised to us as loans or whatever arrangements made by the President and China in the past, will start flowing into the country so that our projects can start to take off. Because right now, it is true, we have no money to really finance all of these ‘Build, Build, Build’ projects.”
“The only fear that I am having there is that will China really continue to support us even after President Duterte’s term? I think the most important thing that the President will be able to get from this initiative is to be assured of China’s continuous support for the Philippines even after his (Mr. Duterte) term. So, it is really important for the President, right now, to really show to the Filipinos who is going to succeed him,” he added. — Arjay L. Balinbin
MICC to review rest of mining industry this year
THE Mining Industry Coordination Council (MICC) hopes to start an independent review for all miners not earlier sanctioned by the government this year, the Department of Finance (DoF) said.
Finance Undersecretary Bayani H. Agabin said that after concluding the review of 26 suspended mines by May, he hopes to start the review for the rest of the country’s mines immediately.
“The MICC is supposed to conduct the audit of the operation of the mines. We’re starting with the 26. After this round, we hope to do the review of the other mines also, subject to availability of funds,” Mr. Agabin told reporters on Tuesday.
“If there’s some that’s left over, we’ll probably be able to pursue the second round. We’ll see if we can do it within the year as well. We hope to streamline the process,” he added.
Mines and Geosciences Bureau data show that there are a total of 50 operating metallic mines in the country.
Mr. Agabin said that the independent review for all the mines will take about “two and a half years.”
On Feb. 1, 2017, Environment Secretary Regina Paz L. Lopez ordered 26 mines closed or suspended from operation due to violations such as being located in watersheds and polluting surrounding bodies of water.
A team investigating the legal, technical and environmental aspects of the closure started its review last month, and is expected to come up with a preliminary report by May. This will be followed by a separate team reviewing the social and economic implications of the mines’ operations — which could start a month or two after the first team’s review, according to Mr. Agabin.
“The first phase will end May, but the site visit for all the mine sites would have been completed maybe by the third week of April… then we expect them to start preparing the reports. They’re supposed to submit a first draft of the report maybe by end of April,” he said.
The findings of the review team will serve as a policy recommendation to the President and the Department of Environment and Natural Resources, which co-chairs the MICC with the DoF.
Mr. Agabin said that Congress may be asked to provide funding for the interagency MICC.
“I think if it will be an annual undertaking, we have to. It can be discussed, but right now we split it with the DENR and the DoF.” — Elijah Joseph C. Tubayan
BSP studying more regulation for cryptocurrencies
THE Bangko Sentral ng Pilipinas (BSP) said it may require cryptocurrency firms to register as electronic money issuers on top of securing a license as a virtual currency (VC) exchange operator.
Initial studies made by the central bank point to the possible need for enhanced oversight over financial firms issuing digital currencies, BSP Deputy Governor Chuchi G. Fonacier said, which would also entail bigger capital requirements.
“We are carefully reviewing or assessing whether just the registration of being a virtual currency exchange per se would suffice. The way things are right now, the business models that they are presenting to us might require another layer of authorization,” Ms. Fonacier told reporters on the sidelines of the Chamber of Thrift Banks national convention today, April 10.
Evaluating the business models submitted by these virtual currency issuers, Ms. Fonacier said companies might need to register as e-money issuers (EMI) under the BSP’s regulation.
“If the business model requires them (clients) to maintain a wallet, then it is but proper that they would be required to obtain an EMI license,” the central bank official said.
Signing up as e-money issuers will require exchanges to carry a minimum capital of P100 million — an amount bigger than what is required of rural banks, Ms. Fonacier said.
Existing BSP rules also impose P100,000 as the aggregate load limit for e-money instruments per month.
In February 2017, the BSP stepped up to regulate firms which convert cash into virtual currencies like Bitcoin and Ethereum, imposing some requirements for risk management and to guard against transactions that may provide cover for money laundering.
The BSP has so far accredited two virtual currency exchanges: Rebittance, Inc. and Betur, Inc. more popularly known as Coins.ph. Ms. Fonacier said the bank is reviewing applications from 29 other cryptocurrency firms.
The regulator issued its first public warning on the use of digital currencies in March 2014, when foreign regulators banned banks and brokers from handling the new currency following the collapse of Mt. Gox, a Tokyo-based Bitcoin exchange.
Digital currencies are not issued or guaranteed by a central bank, and can be sent or received by anonymous users internationally.
The BSP recognizes the benefits of using electronic currencies in terms of faster and cheaper remittances, but warned of the risk of rapidly changing values, potential use for crime, and cybersecurity concerns.
Bitcoin values have fluctuated from around $1,000 in January 2017 to a peak of nearly $20,000 apiece in December. Bitcoin is currently trading at the $6,000 level, according to its website. — Melissa Luz T. Lopez
Appetite for peso green bonds limited — ADB
THE MARKET for so-called “green bonds” remains unattractive for issuers even with the availability of environmentally friendly projects to fund, due to cost and demand issues, the Asian Development Bank (ADB) said.
The bank said that the Renewable Energy Act of 2008 opened a many doors for the development of renewable energy technology, such as the system of preferential feed-in tariffs, the mandated minimum percentage generation for renewable energy for power generators and distribution utilities, and tax perks.
Department of Energy data show that it has authorized 831 renewable energy projects as of June 2017 with a total capacity of 4,710.97 megawatts (MW). The total rose from 724 projects and capacity of 4,132.49 MW a year earlier.
However, the development of financing these projects through peso bonds has not gained traction.
“Philippine market participants see ample potential to issue green bonds for renewable energy and low-carbon transport, but do not anticipate rapid growth in issuance. There is no demand from domestic investors, and issuers see it as an unnecessary cost to raise capital,” the ADB said in a report, “Promoting Green Local Currency Bonds for Infrastructure Development in ASEAN+3.”
“There is large unmet demand for corporate bonds among domestic institutional investors, so issuers have little interest in incurring the additional costs for green issues when they will be able to place non-green issues without difficulty,” the ADB said.
“Both issuers and investors tend to view ESG (environmental, social, and governance) and CSR (corporate social responsibility) as largely public relations exercises,” it added.
The report also noted that while the Philippines co-chairs the Association of Southeast Asian Nations (ASEAN) Capital Markets Forum Green Bond Initiative, “knowledge of green bonds among market participants, excluding those involved with the inaugural Philippines green bond issue, remains quite limited.”
The country’s maiden green bond offer was issued by Aboitiz Power Corp.’s AP Renewables on February 2016 and raised P10.7 billion — for which the ADB provided technical assistance. In December, BDO Unibank, Inc. sold $150 million worth of green bonds to sole investor International Finance Corp.
ADB said that benefits that the Aboitiz group received from issuing a green bond include a broader relationship with international institutional investors who place much higher priority on ESG issues than do Philippine domestic investors.
It added that Aboitiz saw additional costs for developing and implementing the green bond framework. “Completing the financing arrangements took longer than the more typical Philippine bank consortium financing.”
“The underwriter priced the issue aggressively, possibly for the prestige of doing the first Philippines green bond issue. Unusually for a Philippine corporate issue, the underwriter continued to hold the bonds on its own book more than a year after initial issuance,” the lender said.
“The pricing of subsequent Philippines green bond issues is unlikely to be as favorable for the issuer,” it added. — Elijah Joseph C. Tubayan
Pepsi PHL seeks permission to sell HFCS inventory to AAC
BEVERAGE manufacturers Asian Alcohol Corp. (AAC) and Pepsi-Cola Products Philippines, Inc. (PCPPI) have asked the Sugar Regulatory Administration to authorize AAC the use of PCPPI’s remaining high fructose corn syrup (HFCS) inventory.
In a letter dated April 4, AAC requested to purchase PCPPI’s 418 containers of high fructose corn syrup which it intends to use for its own production.
The 418 container loads amount to 9,196 metric tons of HFCS.
AAC said that the HFCS will serve as an additive to molasses which is needed for the production of potable grade alcohol.
“The distillery sector […] is in constant search for materials that could make its production cost-efficient to remain economically competitive amidst the issues of increasing prices of molasses and stresses in its supply,” the parties said in a letter.
TAAC clarified that the use of HFCS will not be used as a replacement for sugar and molasses, but will only be used to spur the production of yeast in the fermentation process to produce ethanol.
In a letter dated April 5, PCPPI said that while it will abide by SRA’s memorandum issued on the disposal of its HFCS stock, it wants to take AAC’s offer in consideration.
“In this connection, we humbly request for reconsideration and instead of destroying these stocks, we may be allowed to dispose these in favor of AAC,” PCPPI said.
“[AAC] intends to apply the total volume of the subject HFCS as an additive to molasses, hence, as an aid to the fermentation of its potable-grade alcohol products.”
Late last month, the SRA allowed PCPPI to reclassify its remaining HFCS stocks from Class D or for export to Class B or for public consumption, but also ruled the stocks must be disposed of without the company profiting from it.
PCPPI chose not to use HFCS after the first package of the tax reform law took effect, which imposed a P12 per liter tax for beverages using HFCS. PCPPI then decided to shift to cane sugar, which in beverages is taxed at P6 per liter.
The SRA will rule on the matter after its board meeting on April 12. — Anna Gabriela A. Mogato
Consumer group calls for LTFRB to stop meddling in review of Uber-Grab deal
Consumer group Laban Konsyumer Inc. on Tuesday told the Land Transportation Franchising and Regulatory Board (LTFRB) to stop meddling in the ongoing review of the Philippine Competition Commission of the Uber-Grab deal, instead focus on fast-tracking the accreditation of prospective ride-hailing companies.
In a statement on Tuesday, Laban Konsyumer President Atty. Vic Dimagiba said that the LTFRB should avoid a “turf war” with PCC by issuing statements that might affect the regulatory review by the anti-trust agency. — Janina C. Lim
Oil rises after Xi’s speech on optimism US-China spat may ease
Oil advanced above $64 a barrel after Chinese President Xi Jinping’s conciliatory tone in a closely watched speech raised hopes that U.S.-China trade tensions may ease, lifting global risky assets.
Futures in New York erased earlier losses in the day to rise as much as 1.5 percent as Xi vowed to open sectors from banking to auto manufacturing, increase imports and lower foreign-ownership limits. That came after U.S. President Donald Trump expressed optimism on reaching a deal with China. Markets from global equities to metals gained on expectations that a trade war between the world’s two largest economies can be averted.
Oil has struggled after touching a high of more than $66 a barrel in March as investors worry that tit-for-tat tariff increases between the U.S. and China could impact wider economic growth and curb energy demand. Record level of U.S. crude production also counters efforts by the Organization of Petroleum Exporting Countries and its allies to curb output and drain a global glut.
“All risk assets are rallying after President Xi’s speech as the Chinese leader expresses greater openness,” said Will Yun, a commodities analyst at Hyundai Futures Corp. “Investors’ sentiment is turning positive as China’s willingness to open up the market gives confidence to the global economy and it could lead to better demand.”
West Texas Intermediate for May delivery rose as much as 96 cents to $64.38 a barrel on the New York Mercantile Exchange, and was at $64.29 as of 3:10 p.m. in Singapore. The contract climbed $1.36, or 2.2 percent, to $63.42 on Monday. Total volume traded was about 50 percent above the 100-day average.
Brent for June settlement was 91 cents higher at $69.56 a barrel on the London-based ICE Futures Europe exchange. The contract on Monday rose $1.54, or 2.3 percent, to $68.65. The global benchmark crude traded at a $5.29 premium to June WTI, the widest since March 29.
Yuan-denominated futures for September delivery were 2.8 percent higher at 413.5 yuan a barrel on the Shanghai International Energy Exchange. The contract rose 8 yuan to 402.3 yuan a barrel on Monday.
Xi’s Speech
The Chinese leader pledged a “new phase of opening up” and said Cold War and zero-sum mentalities were “out of place” in his keynote address Tuesday to the Boao Forum for Asia. The long-planned speech was being closely watched by traders for any response to Trump’s plan to hit hundreds of Chinese products with duties in an escalating trade spat. Following Xi’s speech, Asian stocks and U.S. futures jumped in Asian morning trading.
In the oil market, U.S. crude inventories were forecast to fall by 1.5 million barrels last week in a Bloomberg survey before U.S. government data on Wednesday. That would be a second consecutive week of declines after a surprise drop of 4.6 million barrels last week. — Bloomberg
While the world cracks down, Japan emerges as a crypto haven
Japan’s emergence as a global center for cryptocurrencies didn’t start with open-minded lawmakers or prescient investments by the country’s financial giants. Instead, it began with an American felon who arrived in the country looking for a fresh start.
Roger Ver came to Japan in 2006 after getting out of prison for selling explosives online and stumbled upon bitcoin in its early days. He became an enthusiastic supporter who threw parties and gave away coins to encourage their use. He also forged a relationship with Mark Karpeles, a young Frenchman in Tokyo who bought Mt. Gox — then the world’s largest bitcoin exchange — and relocated its headquarters to the city.
Together, the pair helped create a community of crypto experts who popularized the currencies, seeded early startups and persuaded government officials of the concept’s potential. That helped Japan emerge as a bitcoin haven, even as the rest of the world cracked down. It has maintained a supportive regulatory environment, despite troubles ranging from investor fraud to the $500 million hack of a Japanese crypto-exchange this year.
“If it wasn’t for Mt. Gox, I wouldn’t have been involved with Bitcoin regulation at all,” says Mineyuki Fukuda, a former Liberal Democratic Party lawmaker who helped create the country’s rules.
After a boom in the popularity of cryptocurrencies, governments from the U.S. to China have proposed tight regulations or outright bans to prevent abuse. Japan has been particularly hard hit with hackers swiping a total of almost $1 billion.
But the nation’s lawmakers have remained firmly supportive. They’re moving to regulate new exchanges, rather than ban them outright. Last week, they took the first step toward legalizing initial coin offerings, or ICOs, a controversial fundraising technique outlawed in places like China and South Korea. Emboldened by the government’s stance, tech and financial firms are stepping up investment.
“Personally I was thinking, OK, they’re probably going to take the Chinese approach of ‘We’re just going to ban this thing and nobody’s going to be able to do it again’,” says Thomas Glucksmann, a former employee of Mt. Gox. “But they kind of went the opposite way.”
Ver didn’t have any of this planned when he came to Japan. He was a millionaire thanks to the same online business that landed him in trouble with authorities in the U.S. He said he’d had a Japanese girlfriend once and decided to move to the country in part to find a new one. Karpeles also landed in Japan on a whim, attracted by its culture and anime.
After discovering Bitcoin in early 2011, Ver began buying coins on Mt. Gox and talking up the prospects for currencies independent of any government. He organized gatherings for enthusiasts, first at a fruit parlor and then at a bar in Tokyo’s Roppongi neighborhood. Bitcoin Jesus, as he became known, also gave away coins when they were worth about $1. (A single Bitcoin now trades at about $6,700.) He estimates he handed out more than 10,000 coins.
“That would be worth more than $50 million dollars today,” Ver says.
Ver stayed bullish even after Mt. Gox filed for bankruptcy in 2014, sending prices tumbling. He says the laws Japan implemented last year in the wake of the bankruptcy — regulating crypto exchanges and allowing bitcoin use in retail payments — were more industry-friendly than he expected. But ever a libertarian, he says he’d prefer no rules at all.
“I’m a bit averse to dealing with politicians, regulators and lawmakers,” says Ver, who resides in Japan but also holds citizenship in the tax haven of St. Kitts. “The regulators aren’t technologists. They don’t know about this.”
Those laws are now responsible for an influx of corporate interest. Electronic retailers like Yamada Denki Co. have embraced bitcoin for payments. Large tech firms including messaging provider Line Corp. are launching crypto exchanges. And big banks are pouring millions into blockchain startups that promise to disrupt the financial order.
“You’ve gone from Japan as this inconspicuous crypto hub which happened organically because of the presence of Mt. Gox and a handful of crypto evangelists like Roger Ver,” says Glucksmann. “To now very much a top down driven ‘Welcome to Japan. We want to be the crypto hub of Asia, if not the world’.”
Ver says he can’t take full credit for the country’s embrace of crypto, but agrees he played a role in the early years. Karpeles, still on trial for embezzlement charges related to Mt. Gox, didn’t respond to interview requests. But reflecting on the past decade, he wrote recently that he’s glad he came to Japan.
“I’d guess I lost everyone except for a few close friends,” he wrote last week in online posts on Reddit. “I don’t regret it (despite all that happened).” — Bloomberg
China’s Xi pledges greater openness amid Trump trade dispute
Chinese President Xi Jinping reiterated pledges to open sectors from banking to auto manufacturing in a speech that also warned against returning to a “Cold War mentality” amid trade disputes with U.S. counterpart Donald Trump.
Xi pledged a “new phase of opening up” in his keynote address Tuesday to the Boao Forum for Asia, China’s answer to Davos. While the speech offered little new policy, Xi affirmed or expanded on proposals to increase imports, lower foreign-ownership limits on manufacturing and expand protection to intellectual property — all central issues in Trump’s trade gripes.
“Human society is facing a major choice to open or close, to go forward or backward,” Xi told hundreds of investors gathered on the resort island of Hainan, in a speech that didn’t mention Trump’s name. “In today’s world, the trend of peace and cooperation is moving forward and the Cold War mentality and zero-sum-game thinking are outdated.”
Trade talks between the world’s biggest economies broke down last week after the Trump administration demanded that China take steps to curtail support for high-technology industries, a person familiar with the situation said. The conciliatory tone of Xi’s speech helped bring risk appetite back to Asian markets as shares from Sydney to Hong Kong rose alongside oil and metals and Treasuries extended declines with gold and the yen.
Xi’s long-planned speech — marking 40 years after the first economic reforms transformed China — was being closely watched after Trump’s plan to hit hundreds of Chinese products with duties. The country faces a credibility gap after years of promises to free up the economy were followed by more centralized control, market-access barriers and state support for local companies.
Those practices are at the center of Trump’s threats to levy some $150 billion of tariffs against China. The U.S. has asked the country to reduce its trade surplus by $100 billion, cut tariffs on cars and stop forced technology transfers by foreign corporations, among other things.
A White House official who watched a broadcast of Xi’s speech said the Chinese president’s reference to autos following Trump’s Twitter complaints about the issue appeared to be an opportunity to develop trust between the two sides. The official said that the U.S. was expecting China to put concrete proposals forward.
What our economists say…
“The U.S. side will likely want to see deeds, not just words, before it considers softening its protectionist stance,” Bloomberg Economics Chief Asia Economist Tom Orlik wrote in a note. “Even so, with Xi’s speech positioning China as conciliatory, the chances of a damaging trade war appear a shade lower.”
The speech was attended by leaders including Philippine President Rodrigo Duterte, Singaporean Prime Minister Lee Hsien Loong, and International Monetary Fund Managing Director Christine Lagarde.
“I read much of that speech as being about cementing China’s regional leadership as an open country fostering free trade and development,” Jim McCaughan, chief executive officer at Principal Global Investors, told Bloomberg Television. “The idea that there is going to be a quick fix on this is unlikely.”