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Peso weakens on China tariffs

The peso slightly weakened anew against the dollar anew following the new tariffs imposed by China against the US.
The local currency ended at P52.12 against the greenback on Wednesday, April 4, four centavos stronger than the P52.08-per-dollar finish on Tuesday.
Dollars traded slipped to $504.4 million from the $657.5 million traded on Tuesday.
A trader said that the peso weakened against the dollar in the later session following the news about the ongoing trade spat between China and the US.
“We traded [weaker] only in the afternoon when the news came out that China will be putting also tariffs on US goods worth about $50 billion,” the trader said in a phone interview.
Beijing announced that it will launch another round of tariffs against 106 US imports, including soybeans, cars and whisky, amounting to $50 billion.
This was after it slapped tariffs on 128 American goods including frozen pork, wine and apples.
This is Beijing’s retaliation due to the duties imposed by President Donald J. Trump on Chinese steel and aluminum as well as the $50-billion tariffs that was the result a seven-month investigation into alleged intellectual property theft. — Karl Angelo N. Vidal
 

Index falls below 8,000 on JFC, US-China tension

THE LOCAL BAROMETER fell on Wednesday, tracking the negative sentiment in regional markets, alongside the sell-off of shares in Jollibee Foods Corp. (JFC) after the government ordered the company to regularize its workers.
The Philippine Stock Exchange index (PSEi) ended below the 8,000 level today, April 4, dropping 0.63% or 51.05 points to close at 7,997.67.
The broader all-shares index also gave up 0.28% or 13.87 points to end at 4,858.03.
“We’re still seeing concerns regarding trade tensions between US and China. So I think we’re still feeling the possible implications. And we basically followed regional markets, the market just focused on that news,” AB Capital Securities, Inc. Senior Equity Analyst Lexter L. Azurin said in a phone interview today. 
Most Asian indices edged lower on Wednesday’s close, primarily due to jitters caused by China’s latest response to the United States’ imposition of stricter trade restrictions on around $60 billion worth of Chinese goods.
A sell-off was also seen in shares in JFC, after the Department of Labor and Employment (DoLE) ordered the fastfood giant to regularize 6,482 workers deployed by two JFC contractors. DoLE also ordered the regularization of 704 workers in burger chain Burger King, to which JFC holds the master franchise. 
“Philippine markets sold off heavily in the afternoon after news that DoLE ordered to regularize over 6,000 work force in Jollibee’s management. Not only was this limited to Jollibee, but many other companies that would be affected were suddenly sold down,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.
This development pulled down the price of JFC stocks by 3.85% to close at P285 each.
Four sectoral counters moved to negative territory, led by services, which ended 1.08% or 18.14 points lower to 1,658.47. Holding firms declined 0.82% or 66.06 points to 7,980.61; financials slipped 0.69% or 14.29 points to 2,044.91, while industrials dropped 0.53% or 61.19 points to 11,310.09.
On the other hand, the mining and oil counter jumped 2.05% or 230.06 points to 11,438.13, while property gained 0.13% or 4.80 points to 3,687.54.
Some 1.67 billion issues exchanged hands for a value turnover of P6.93 billion, slightly higher than Tuesday’s turnover of P6.11 billion.
Decliners narrowly outpaced advancers, 107 to 103, while 46 issues were unchanged.
Foreign investors snapped a nine-day selling streak on Wednesday, posting net purchases of P57.46 million against net outflows of P238.61 million on Tuesday.
Meanwhile, Wall Street posted gains overnight as investors saw the slowdown in previous days as an opportunity to look for bargains. The Dow Jones Industrial Average added 1.65% to 24,033.36; the S&P 500 rallied 1.26% to 2,614.45; while the Nasdaq Composite index posted a  1.04% uptick to 6,941.28. — Arra B. Francia

Megaworld to raise $200 million in perpetual notes

Megaworld Corp. will be raising $200 million through the issuance of perpetual senior notes in the offshore bond market to refinance existing debt.
In a disclosure to the stock exchange on Wednesday, April 4, the listed property developer said the issuance has a fixed coupon rate for life of 6%. The perpetual notes will have a call option on April 2023, and any coupon payment date thereafter.
The Andrew L. Tan-led firm tapped American financial services firm JP Morgan to act as sole bookrunner for the issuance. The notes will then be listed at the Singapore Exchange Securities Trading Ltd.
Proceeds from the offer will be used to refinance the company’s existing indebtedness and general corporate purposes.
The issuance will mark Megaworld’s return to the offshore bond market since 2013, when it raised $250 million through 10-year bonds with a coupon rate of 4.25% per annum. The bonds were also listed at the Singapore Exchange Securities Trading Ltd.
Shares in Megaworld gained five centavos or 1.09% to close at P4.65 each at the stock exchange on Wednesday. — Arra B. Francia

Grab Philippines willing to cooperate during PCC review

Grab Philippines has assured the Philippine Competition Commission (PCC) of its cooperation in divulging information the anti-trust body may need to complete the review of the company’s acquisition of the Southeast Asian business of Uber Technologies Corp.
“The PCC can expect Grab’s cooperation in this motu proprio review. We will prepare the necessary documents and share information required by the PCC, and will closely work with the Commission to address whatever questions and clarifications they may have,” the company said in a statement posted April 3 on its website.
“We are willing to collaborate with the government and regulatory bodies, as always, to ensure that we fairly address the needs of our stakeholders,” it added.
The firm said it had expected the review, recognizing the mandate of the PCC to ensure robust competition in the country.
In the midst of a pending PCC review which will determine the fate of its acquisition of Uber, Grab said it will continue “to put our utmost support to ensure full transition of accredited Uber drivers onto our platform.”
The firm assured its registered drivers of quashing possible disruptions to their jobs while also assuring its consumers that its pricing mechanism will remain within regulatory guidelines.
Uber and Grab revealed the deal last week with the former intending to withdraw its operations in the Southeast Asia.
Other countries in the region have also raised concerns on the sale’s impact on local markets while Singapore took the first stride in launching a probe. — Janina C. Lim

DoLE orders regularization of over 7,000 workers under Jollibee group

The Department of Labor and Employment (DoLE) has ordered regular employment status for more than 7,000 workers of Jollibee Foods Corp. (JFC) contractors and refund nearly P20 million in “illegal payment collections” to affected employees as part of an ongoing check on quick service restaurants.
In a statement on Wednesday, April 4, DoLE cited a report to Undersecretary Joel B. Maglunsod by National Capital Region Director Henry John S. Jalbuena that the latter has ordered JFC “to regularize 6,482 workers” as well as 704 others employed by contractors operating branches of Burger King, which is one of the brands under the same company.
Aside from providing regular employment status to the workers, DoLE also ordered JFC “to return unlawful wage deductions, bonds, donations, shares and other illegal payment collections” totalling some P19.569 million.
In a statement issued Wednesday, JFC said it received the order from the Labor department and that it intends to cooperate with the agency.
“JFC remains committed to complying with the law and DO 174, which allow contracting arrangements with legitimate Service Providers. In compliance with regulations, we only deal with reputable Service Contractors that have been duly accredited and registered with DOLE. We have been cooperating and will continue to cooperate with DOLE,” the company said.

Stocks dip on Jollibee news, US-China trade war

The local barometer fell on Wednesday, April 4, tracking the negative sentiment in regional markets, alongside the sell-off of shares in Jollibee Foods Corp. (JFC) after the government ordered the company to regularize its workers.
The Philippine Stock Exchange index ended below the 8,000 level on Wednesday after plunging 0.63% or 51.05 points to close at 7,997.67. The broader all shares index also gave up 0.29% or 13.87 points to 4,858.03.
“We’re still seeing concerns with regard to trade tensions between US and China. So I think we’re still feeling the possible implications. And we basically followed regional markets, the market just focused on that news,” AB Capital Securities, Inc. Senior Equity Analyst Lexter L. Azurin said in a phone interview.
A sell-off was also seen in shares in JFC, after the Department of Labor and Employment (DOLE) ordered the fast food giant to regularize 6,482 workers deployed by two JFC contractors. DOLE also ordered the regularization of 704 workers in burger chain Burger King, to which JFC holds the master franchise.
“Philippine markets sold off heavily in the afternoon after news that DOLE ordered to regularize over 6,000 workforce in Jollibee’s management. Not only was this limited to Jollibee, but many other companies that would be affected were suddenly sold down,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.
This development pulled down stock prices in JFC by 3.85% to close at P285 each.
Four sectoral counters moved to negative territory, led by services which ended 1.08% or 18.14 points lower to 1,658.47. Holding firms declined 0.82% or 66.06 points to 7,980.61; financials slipped 0.69% or 14.29 points to 2,044.91, while industrial dropped 0.54% or 61.19 points to 11,310.09.
The mining and oil counter jumped 2.05% or 230.06 points to 11,438.13, while property gained 0.13% or 4.8 points to 3,687.54.
Some 1.67 billion issues exchanged hands, for a value turnover of P6.93 billion, slightly higher than Tuesday’s turnover of P6.11 billion.
Decliners narrowly outpaced advancers, 107 to 103, while 46 issues were unchanged.
Foreign investors snapped a nine-day selling streak on Wednesday, posting net purchases of P57.46 million, against net foreign outflows of P238.61 million in the previous session. — Arra B. Francia

Airswift opens booking for Davao-El Nido flights

DAVAO CITY — Ayala-owned boutique airline Airswift Transport Inc. has officially opened booking for its El Nido-Davao flights.
The airline’s El Nido-Davao flights will start on May 22 with a thrice-a-week schedule using ATR42600 aircraft.
In February this year, Airswift has announced expanding its routes to and from El Nido, Palawan with the launch of flights from Puerto Princesa, Davao City, and Tagbilaran City.
The El Nido route to Tagbilaran, Bohol is planned for launch this month. — Maya M. Padillo

Woman wounds three at YouTube HQ, kills self

SAN BRUNO, CALIFORNIA — A woman opened fire with a handgun at YouTube’s headquarters near San Francisco on Tuesday, wounding three people before shooting herself dead as employees of the Silicon Valley tech company fled into the surrounding streets, authorities said.
Police did not identify the suspect or say what might have motivated the shooting at YouTube, a video-sharing service owned by Alphabet, Inc.’s Google which employs nearly 2,000 people at the San Bruno, California offices.
The woman approached an outdoor patio and dining courtyard on the campus around lunchtime and began firing before entering the building, police said.
The San Jose Mercury News, citing a law enforcement source, said that she was targeting her boyfriend due to a domestic dispute.
A US government security official told Reuters there was no known connection to terrorism.
ABC News, citing unnamed law enforcement sources, said the suspect was 35-40 years old, and lived in Southern California, with no apparent connection to YouTube.
A YouTube product manager, Todd Sherman, described on Twitter hearing people running, first thinking it was an earthquake before he was told that a person had a gun.
“At that point every new person I saw was a potential shooter. Someone else said that the person shot out the back doors and then shot themselves,” Mr. Sherman said in a tweet.
“I looked down and saw blood drips on the floor and stairs. Peaked around for threats and then we headed downstairs and out the front.”
The shooting was the latest in a string of mass killings carried out in the United States in recent years. Most recently, the massacre of 17 people at a Florida high school has led to calls for tighter restrictions on gun ownership.
In a recording of a 911 call posted online by the Los Angeles Times, a dispatcher can be heard saying: “Shooter. Another party said they spotted someone with a gun. Suspect came from the back patio… Again we have a report of a subject with a gun. They heard seven or eight shots being fired.”
Dozens of emergency vehicles quickly converged on the YouTube campus, and police could be seen on televised aerial video systematically frisking several employees leaving the area with their hands raised.
One of the victims, a 36-year-old man, was listed in critical condition at San Francisco General Hospital. A 32-year-old woman was listed in serious condition and a 27-year-old woman in fair condition. Authorities did not release names of the victims.
The three patients taken to San Francisco General Hospital were all awake, Dr. Andre Campbell, a trauma surgeon at the hospital, said at a news conference. All three people were victims of gunshot wounds, Campbell said, but none of them had undergone surgery. A fourth person was taken to a local hospital with an ankle injury from fleeing the scene.
YouTube Chief Executive Officer Susan Wojcicki declined to comment to reporters as she left the building.
“It’s with great sadness that I tell you — based on the latest information — four people were injured in this horrific act of violence,” Google Chief Executive Sundar Pichai said in letter to employees that was posted on Twitter.
“I know a lot of you are in shock right now. Over the coming days, we will continue to provide support to help everyone in our Google family heal from this unimaginable tragedy.”
In a separate tweet, Pichai said he and Wojcicki were “focused on supporting our employees & the @YouTube community through this difficult time together.” President Donald Trump said on Twitter that he had been briefed on the shooting.
“Our thoughts and prayers are with everybody involved,” Mr. Trump tweeted. “Thank you to our phenomenal Law Enforcement Officers and First Responders that are currently on the scene.”
In response, Twitter Chief Executive Jack Dorsey tweeted: “We can’t keep being reactive to this, thinking and praying it won’t happen again at our schools, jobs, or our community spots. It’s beyond time to evolve our policies.”
Last month, YouTube announced it would ban content promoting the sale of guns and gun accessories as well as videos that teach how to make guns.
Female mass shooters are rare. A recent Washington Post analysis shows only three out of 150 US shootings with more than four victims since 1966 were done by women. In 2015, a husband and wife killed 14 people in San Bernardino, California. — Reuters

India shelves plan to punish journalists behind ‘fake news’

NEW DELHI — Indian Prime Minister Narendra Modi on Tuesday ordered the withdrawal of rules punishing journalists held responsible for distributing “fake news” — giving no reason for the change — less than 24 hours after the original announcement.
The move followed an outcry by journalists and opposition politicians that the rules represented an attack on the freedom of the press and an effort by Mr. Modi’s government to rein in free speech ahead of a general election due by next year.
Late on Monday, the Information and Broadcasting Ministry had said the government would cancel its accreditation of journalists who peddled “fake news.”
After Mr. Modi’s intervention, the ministry announced the withdrawal in a one-line statement.
Journalists said they welcomed the withdrawal but could not rule out the possibility that it was a “trial balloon” to test the waters for putting more restrictions on the press.
“A government fiat restraining the fourth pillar of our democracy is not the solution,” a statement issued by the Press Club said.
Co-opted by US President Donald Trump, the term “fake news” has quickly become part of the standard repertoire of leaders in authoritarian countries to describe media reports and organizations critical of them.
Welcoming the change of heart, media groups in India nevertheless cautioned the government against changing its mind.
“The government has no mandate to control the press,” Gautam Lahiri, president of the Press Club of India, told journalists.
The events in India followed Malaysia’s approval this week of a law carrying jail terms of up to six years for spreading “fake news.”
Other countries in Southeast Asia — including Singapore and the Philippines — are considering how to tackle “fake news” but human rights activists fear laws against it could be used to stifle free speech.
India slipped three places last year to rank 136 among 180 countries rated in the world press freedom index of the watchdog Reporters Without Borders.
The non-profit body said Hindu nationalists, on the rise since Mr. Modi’s Bharatiya Janata Party swept to power in 2014, were “trying to purge all manifestations of anti-national thought.” — Reuters

Trump seeks Syria pullout with hard work ahead

WASHINGTON — US President Donald Trump said on Tuesday he wanted to “get out” of Syria but offered no timetable, as his advisers warned of the hard work left to defeat Islamic State and stabilize areas recaptured from the hardline militant group.
Mr. Trump told a news conference the United States would “not rest until ISIS is gone,” using an acronym for the militant group.
But he also suggested that victory was imminent.
The Pentagon and State Department have held that a longer term US effort would be needed to ensure that Islamic State’s defeat is a lasting one.
“It’s time,” Mr. Trump told reporters, when asked if he was inclined to withdraw US forces.
“We were very successful against (Islamic State). We’ll be successful against anybody militarily. But sometimes it’s time to come back home and we’re thinking about that very seriously.”
The United States is waging near-daily air strikes in Syria and has deployed about 2,000 troops on the ground, including US special operations forces whose advising has helped Kurdish militia and other US-backed fighters capture territory from Islamic State.
US Army General Joseph Votel, who oversees US troops in the Middle East as the head of Central Command, estimated on Tuesday that more than 90% of the group’s territory in Syria had been taken back from the militants since 2014.
Mr. Trump estimated the percentage of territory recaptured in Iraq and Syria at “almost 100%,” a figure that US officials say is correct — it is about 98% — but does not highlight the work left in Syria.
The big hurdle, in the US military’s view, is seizing Islamic State-held territory around the Syrian town of Abu Kamal.
That effort that has been slowed as US-backed Kurdish fighters shift their focus away from Islamic State toward a Turkish offensive against Kurdish allies elsewhere in Syria’s complex, multi-pronged civil war, now in its eighth year.
Brett McGurk, the special US envoy for the global coalition against Islamic State, speaking alongside Votel at an event in Washington on Tuesday, said the US fight against Islamic State was not over.
“We are in Syria to fight ISIS. That is our mission and our mission isn’t over and we are going to complete that mission,” Mr. McGurk said. — Reuters

Indonesia to postpone new coal, palm oil shipping rules to 2020

JAKARTA — Indonesia will delay until 2020 trade rules requiring exporters of coal and crude palm oil to use only Indonesian-flagged vessels, government officials said, putting off efforts to develop local shipping and save foreign exchange reserves.
The decision to postpone the rules by two years may come as a relief to the coal, palm oil and shipping industries, which had raised concerns over the availability of local vessels.
Indonesia is the world’s biggest exporter of thermal coal and the top producer of palm oil.
The rules, that were due to take effect this month and intended to boost the archipelago’s shipping industry, were initially postponed in February.
“The trade ministry regulation will be revised,” Oke Nurwan, director general of foreign trade at the Trade Ministry, told Reuters by text message on Wednesday, adding that there was a “high probability” the policy will be postponed for two years as announced on Tuesday.
Ministers and government officials on Tuesday had met to discuss the regulation, and had decided “the timing will be adjusted,” Industry Minister Airlangga Hartarto said after the meeting. “A special two-year period will be given for shipping (industries).”
The government will push for so-called cost, insurance and freight shipping contracts, allowing exporters to choose transportation, whereas most shipments are currently made on a free-on-board basis, Mr. Airlangga said. “We can save foreign currency and at the same time develop our national shipping industry.”
Rules mandating the insurance of shipments by Indonesian insurers would still be imposed with an additional grace period of three months from when the trade rules were initially due to come into effect in May.
“As long as national shipping companies are ready, we’ll support this,” said Hendra Sinadia, executive director of the Indonesian Coal Mining Association. — Reuters

Preparations for Tokyo 2020 Olympics ‘back on track’ after rocky start


TOKYO — On a nondescript patch of land east of Tokyo, cranes are whirring frantically against a city skyscraper backdrop as 200 workers toil on the 2020 Olympic canoe venue.
With the Pyeongchang winter games closed, Tokyo is stepping up preparations for the next event on the Olympic calendar, with busy building sites dotted around the Japanese capital.
Unlike in previous Olympic host countries, where there was a scramble to finish venues on time, Japan appears to be living up to its reputation for efficiency, with foreman after foreman saying in recent tour of sites: “We are on schedule.”
The Aquatics Center in Tokyo Bay is a hive of activity with workers scurrying around the huge site, pushing to finish a venue that will eventually welcome 24,000 cheering supporters.
“Roughly 25% of the work is already done,” said Daishuu Tone, director of venues for the Tokyo Metropolitan Government.
“We are confident we will be on time,” he added, with the first test events scheduled for mid-2019.
The city’s governor Yuriko Koike told AFP in an interview that Tokyo was making “steady progress” towards hosting the games, the second in its history after 1964.
“We hope to make it a wonderful Games,” she said during an interview in an imposing 48-floor office looming over the Tokyo skyline.
And Tokyo 2020 Chief Executive Officer Toshiro Muto is also bullish, telling reporters: “Everything is going very smoothly and I can clearly say that most of the competition venues are on track and they will be completed as scheduled.”
During the bid process, Japan sold itself as a “safe pair of hands” — an advanced economy with a history of efficiency and excellence.
But organizers are still battling to wrench the Games back on track following a series of PR disasters after Tokyo beat Madrid and Istanbul to win the bid in 2013.
The main issue has been the budget, which rapidly spiralled out of control and forced a red-faced Prime Minister Shinzo Abe to tear up the blueprints for the original Olympic stadium.
Ms. Koike admitted: “There was a time when Tokyo’s budget seriously ballooned. We have reviewed it and then we reviewed it again. So it has been very much squeezed from the previous budget.”
In December, Tokyo 2020 organizers announced a “significant” cut of $1.4 billion in the budget, bringing the overall bill to ¥1.35 trillion ($12.6 billion).
“The budget should be reduced to the greatest extent possible,” said Ms. Koike, adding she would continue to make efforts towards “creative” budget solutions.
Tokyo 2020 organizers were also embarrassed by a plagiarism scandal that led to the scrapping of the original games logo due to its similarity to that of a Belgian theater and a separate Spanish design.
But the unveiling last month of a pair of futuristic “superhero” mascots picked by schoolchildren around Japan sought to draw a line under that scandal and rekindle enthusiasm for the Olympics and Paralympics.
If the pace of constructing venues is unlikely to cause headaches for Tokyo, plenty of challenges remain, notably dealing with the summer heat in the Japanese capital where temperatures regularly top 35°C (95°F).
“In Tokyo, we will… need to implement various creative efforts and ideas to deal with the heat,” she said.
Organizers are looking at coating pavements with a substance to reduce the surface temperature and making sure there are trees to provide shade for competitors and spectators alike, Ms. Koike said.
There are also worries over contamination in Odaiba Bay, where the triathlon and open-water swimming events will be held.
Water samples taken between July and September last year showed levels of e-coli bacteria more than 20 times higher than permitted — apparently brought about by unseasonably heavy rain.
Mr. Muto said organizers plan to solve this problem by using special “underwater filters” that have proved successful in cleaning water in testing. — AFP