Magnitude 4 earthquake rocks Sagada

August 31, 2017 | 12:05 am

A MAGNITUDE 4 earthquake shook Mountain Province at 11:34 a.m. yesterday, with the epicenter recorded around the town of Sagada. No aftershocks were expected and there were no immediate reports of major damages, according to the Philippine Institute of Volcanology and Seismology (Phivolcs). Earlier in the day, two other moderately strong tremors were monitored by Phivolcs: 4.2 in Tarragona, Davao Occidental and 5.1 in waters off Calayan, Cagayan.

PSE sells Ortigas offices to PhilRealty

August 31, 2017 | 12:04 am

THE Philippine Stock Exchange, Inc. (PSE) has sold its Ortigas offices to Philippine Realty and Holdings, Corp. (PhilRealty) for P257.18 million, as the bourse prepares its transfer to Bonifacio Global City (BGC) in 2018.

In a disclosure on Wednesday, the PSE said it signed a deed of absolute sale with PhilRealty to sell its office units and parking slots at the Tektite Building in Ortigas Center, Pasig City.

The companies also signed a lease agreement that would allow the PSE to occupy the same office units.

PhilRealty was the developer of the Tektite building, composed of two towers being rented by brokers and dealers.

To recall, the PSE in 2015 bought office spaces worth P805.369 million in BGC from Fort Bonifacio Development Corp., the main developer of the 240-hectare business district in Taguig City.

The move is in line with the bourse’s intention to unify the trading floors currently in Ortigas and in Ayala Tower One in Makati City. The new headquarters consists of around 6,000 square meters of triple-A grade building that will also be made available to broker-dealers and trading participants.

“To be sure we’re targeting first quarter of 2018… Everyone will move. As to what we will do, to sell it or to operate it we don’t know yet. We’re talking to some property management companies to study what’s the best use for the property, if it’s to sell or to operate,” PSE President and Chief Executive Officer Ramon S. Monzon told reporters earlier this month.

PSE officials earlier said they will either sell the office spaces in Makati or to rent them out instead. The PSE recorded a net income attributable to the parent of P220.55 million for the first half, 26% lower than the P299 million it generated in the same period in 2016.

Shares in PSE climbed P2 or 0.84% to P239 apiece on Wednesday. — Arra B. Francia

Japan seeks new US missile radar as Pyongyang threat grows

August 31, 2017 | 12:04 am

TOKYO — Japan is worried the United States has so far declined to arm it with a powerful new radar, arguing the decision makes the US missile defense system it plans to install much less capable of countering a growing North Korean threat, three sources said.

Japan wants to have a land-based version of the Aegis ballistic missile defense (BMD) system operational by 2023 as a new layer of defense to help counter North Korea’s missile advances.

Yet, without the new powerful radar, known as Spy-6, Japan will have to field the system with existing radar technology that has less range than a new generation of BMD interceptor missiles, the sources who have knowledge of the discussion told Reuters. That could mean that while the interceptor has enough range to strike a missile lofted high into space, the targeting radar may not be able to detect the threat until it is much closer.

Japanese officials have witnessed a demonstration of Spy-6 technology, which boosts the range of BMD radars dozens of times, but efforts to secure the equipment from their ally have come to naught.

“So far all we have got to do is smell the eel,” said one of the officials, referring to a savory fried eel dish popular in Japan.

The military threat to Japan deepened on Tuesday when Pyongyang fired an intermediate range ballistic missile over Japan’s northern Hokkaido island. Japanese Prime Minister Shinzo Abe slammed the action as “reckless” and “unprecedented.”

Japan’s Defense Ministry and the Pentagon did not immediately respond to requests for comment.

IRONCLAD
Washington’s reluctance to share the radar may make Tokyo feel more vulnerable to North Korean attack and blunt US efforts to assure Japan about its commitment to defend its East Asian ally as tensions in the region intensify.

The new US Ambassador to Japan, William Hagerty, dubbed their security partnership as the “greatest on earth” in his first meeting with Mr. Abe on Aug 18.

The US’ top general, Joint Chiefs Chairman Gen. Joseph Dunford described that alliance as “ironclad” in talks with the Chief of Staff of Japan’s Self Defense Forces, Admiral Katsutoshi Kawano the same day.

Still, a pledge to let Japan have Spy-6 has not been forthcoming. Japan has not yet placed an order for Aegis Ashore, but has informally asked Washington to let it have the new radar technology.

“There is no guarantee that Japan is going to get it,” said another of the sources. The US Navy supports giving Japan the new radar, the source said, but may be thwarted by reluctance from the Missile Defense Agency, which is responsible for developing BMD technology.

Officials there are wary to release advanced technology, even to a close ally, before the United States has fielded the technology. The United States’ first Spy-6 equipped Aegis warship is not slated to begin operations before 2022, one of the sources said.

Tokyo will need permission to use Spy-6 well ahead of that roll out date to give the maker, Raytheon Co and Aegis system integrator Lockheed Martin Corp time to build and test the system.

Any decision to hold back Spy-6 could therefore add significantly to Japan’s already rising bill for missile defense by forcing it to pay to upgrade or replace Aegis Ashore systems after deployment.

Tokyo plans to build two Aegis Ashore batteries, costing around $700 million each without missiles, the sources said. That would mean its southwestern Okinawa island chain would likely be protected by one of Japan’s existing BMD warships.

The Aegis system’s new SM-3 Block IIA defensive missiles, designed to hit warheads Pyongyang may try to fire over its missile shield, can fly more than 2,000 km — about twice the distance of the current SM-3 missiles.

The interceptor missiles will cost around $30 million each, the sources added. — Reuters

Diet guidelines biased vs poor nations — study

August 31, 2017 | 12:04 am

WIDELY PROMOTED guidelines to reduce fat intake could be unhealthy for people in low- and middle-income countries whose diets are already too starchy, researchers said Tuesday.

Health authorities in Europe and North America recommend eating more fruits and vegetables while curtailing consumption of fatty foods, advice also adopted by the United Nations and globally.

But people in poor nations cutting back on fat may wind up piling on more carbohydrates — such as potatoes, rice or bread — because fruits and vegetable are more expensive, the authors point out.

“The current focus on promoting low-fat diets ignores the fact that most people’s diets in low- and middle-income countries are very high in carbohydrates, which seem to be linked to worse health outcomes,” said Mahshid Dehghan, a researcher at McMaster University in Ontario, Canada and lead author of a study in The Lancet.

Meanwhile, a companion study, also published in The Lancet, concludes that the rich-world guidelines — backed by the World Health Organization — on fruit and vegetable consumption could be safely cut back from five to a more affordable three portions per day.

Dehghan and colleagues sifted through the health data of 135,000 volunteers from 18 countries across six continents, aged 35-70, who were monitored for a seven-and-half years.

People who met three-quarters or more of their daily energy needs with carbs were 28% more likely to die over that period that those who ate fewer starchy foods (46% or less of energy needs).

Surprisingly, the findings also challenged assumptions on fat intake: diets high in fat (35% of energy) were linked with a 23% lower risk of death compared to low-fat diets (11% of energy).

“Contrary to popular belief, increased consumption of dietary fats is associated with a lower risk of death,” Dehghan told AFP.

That covered a mix of saturated fats (from meats and milk products), along with monounsaturated and polyunsaturated fats (from vegetable oils, olive oil, nuts and fish), she added.

The study did not look at so-called “trans fats” from processed foods because “the evidence is clear that these are unhealthy,” Dehghan said.

The best diets include a balance of 50-55% carbohydrates and around 35% total fat, according to the authors, who presented their findings at the European Society of Cardiology Congress in Barcelona.

Current global guidelines — based mostly on studies done in Europe and the United States — recommend that 50-65% of one’s calories come from carbs, and less than 10% from saturated fats.

Overall, the study found that average diet consists of just over 61% carbohydrates, 23.5% “good” fat, and 15% protein.

But these averages hid important regional imbalances: In China, South Asia and Africa, intake of starchy foods was 67%, 65% and 63%, respectively.

A quarter of the 135,000 subjects — mostly in poorer nations — derived more than 70% of their daily calories from carbohydrates, while half had less than seven percent saturated fats in their diet.

The findings “challenge conventional diet-disease tenets” largely based on the lifestyles of Europeans and Americans, Christopher Ramsden and Anthony Domenichiello commented, also in The Lancet.

Dehghan and colleagues set out to look for links between diet and cardiovascular disease, which kills some 17 million people around the world each year — 80% of them in low- and middle-income countries.

Many factors contribute to these diseases but diet is one of the few that can be modified to lessen risk.

But while high-carb and low-fat diets were clearly associated with greater mortality, no statistical link was found with the kind of life threatening events — strokes, heart attacks, and other forms of heart failure — that stem from cardiovascular disease.

“Most of the current debate about diet and health has focused on cardiovascular mortality,” noted Susan Jebb, a professor at the University of Oxford who did not take part in the study.

The reported link between high-carb diets and excess mortality “was from non-cardiovascular deaths and is unexplained,” she said. — AFP

Ormoc chosen one of 5 demo cities for climate resiliency project

August 31, 2017 | 12:04 am

ORMOC CITY, which was recently affected by a magnitude 6.5 earthquake and a deadly landslide in 1991, has been chosen as one of the five demonstration cities for the “Building Climate Resiliency through Urban Plans and Designs” project, which will run for three years at a cost of about P123.3 million. The four other cities are Angeles, Cagayan de Oro, Legazpi, and Tagum. The project is spearheaded by the Climate Change Commission in partnership with the Housing and Land Use Regulatory Board (HLURB), Department of Interior and Local Government, League of Cities of the Philippines, and UN Habitat. Ormoc Mayor Richard I. Gomez said he is proud that his city has been chosen and vowed to strengthen programs alongside existing local ordinances for climate change adaptation. — The Freeman

DENR seeking framework for valuing environmental damage

August 31, 2017 | 12:04 am

THE Department of Environment and Natural Resources (DENR) said it is looking into increasing the penalties for violations of environmental law by laying the groundwork for a system to properly value natural resources.

“It is imperative to impose higher fines for the commission of any violation against the country’s environmental laws if we are to really curb offenses like indiscriminate disposal of garbage, illegal logging, wildlife poaching and smuggling, to name a few,” Environment Secretary Roy A. Cimatu said in a statement on Wednesday.

The agency said it is holding a two-day consultation workshop during which law enforcers are expected to come up with a blueprint on the use of ecological damage assessment values by the courts to set parameters of liability, which will help guide the setting of fines.

“At present, damage from environmental crime cannot be fully accounted for as we have yet to develop a mechanism that would determine the full compensation cost for the damage made,” Mr. Cimatu added.

Among the considerations that will play a major part in framing the mechanism are the market value of the resource and the cost of restoring, rehabilitating or replacing the affected resource.

Under existing law, an offender in a criminal case can likewise be held liable for civil liabilities which include restitution, reparation of damages caused and indemnification for consequential damages.

The new mechanism for valuing resources and the impact of environmental damage involves the Department of Justice, the Bureau of Fisheries and Aquatic Resources, the National Bureau of Investigation, the Bureau of Customs, the Philippine Navy, the Philippine Coast Guard, and the Philippine National Police-Maritime Group.

Experts from the United States Department of the Interior and the United States Agency for International Development will also take part in the process. — Janina C. Lim

Bridging political divides

August 31, 2017 | 12:04 am

Filipinos have been characterized as highly tolerant people. Our preference for harmony, indirectness, and collectivism has been commented on by social analysts of the local psyche. In fact, our tolerance and agreeableness have sometimes been criticized as being a national fault that has encouraged bullies, oppressive leaders, and even the institutionalized abuse of martial law.

I favor candid exchanges of views and disapprove of those who impose their views on others, especially when they do it in a coarse and uncivil way. I enjoy a healthy debate over important issues, but I think each person has an inherent right to a point of view. Besides, social realities are so complex that no one person can claim a monopoly of wisdom on matters such as crime prevention, parenting, politics, sex, faith, and business.

The problem today is that the pendulum has swung to the other side. Because of the Internet, we are now more exposed to different ideas that are often opposed to ours. We weren’t prepared for this kind of diversity of views. Intolerance, incivility, and tribalism have become the common state of affairs between President Duterte’s supporters and those who oppose him. These two groups don’t just disagree with each other; they often characterize each other as evil, or at the very least, morally suspect. As a result, constructive exchanges of views are almost nonexistent.

Of course, this worsening animosity over political differences is not just happening here. The Americans and the British are experiencing deep divides among themselves that seem worse than what they’ve experienced in the past.

For example, a survey by the Pew Research Center among Americans shows that the numbers of Republicans and Democrats with very unfavorable views of the opposing party have grown. Worse, the numbers saying the other party threatens the nation’s well-being have also increased by almost 10 percentage points from two years ago!

What’s going on?

Research done by social psychologists on in-group conflicts can provide helpful clues to understand these worrisome developments. More importantly, we can try to do some things to improve the situation, especially if it involves people and issues we care about.

Jonathan Haidt, an American social psychologist who wrote The Righteous Mind: Why Good People Are Divided by Politics and Religion, explains that people become polarized on political issues because they prioritize different principles of morality.

For example, based on an online survey of more than 20,000 Americans, Haidt found out that most conservatives value in-group loyalty and authority very highly while liberals do not. Liberals highly value openness to other people and new experiences and prefer to question authority while conservatives do not.

Haidt says that “liberals speak for the weak and oppressed and want change and justice even at the risk of chaos.” Haidt explains that in contrast, “conservatives speak for institutions and traditions; they want order even at cost to those at the bottom.”

Is it possible that strong supporters of President Duterte are like American conservatives who prioritize authority in support of social order? Could the President’s critics be closer to the American liberals who prioritize defending the weak? If so, then we can understand why they don’t trust each other on how to deal with the drug issue. They tend to see the other side as a threat to the country’s well-being, but only from their own limited moral lens. Their tribalism tends to confirm their biases about the other side.

Here’s the thing: Haidt points out that both sides are right. For a society to survive, it needs authority as well as caring for the weak and oppressed. It needs order as well as openness to others. But a good thing carried to an extreme can be a vice.

Haidt concludes, “Morality binds and blinds. It binds us into ideological teams that fight each other as though the fate of the world depended on our side winning each battle. It blinds us to the fact that each team is composed of good people who have something important to say.”

So, it doesn’t make sense to demonize the other side. Society is not necessarily a fight between good and evil. The key is to sustain conversations on how different moral priorities can be pursued in a balanced way.

What can we do to have more civil political conversations? Let us reach out in a friendly way to people from the other side and acknowledge their valid concerns whether in person or over social media. For example, an occasional “Like” on a challenger’s Facebook comment could lessen the social poison just a little bit. Then, let us calmly share our own concerns. In this respectful spirit, creative options can emerge.

Dr. Benito L. Teehankee is Full Professor of Management and Organization at De La Salle University and Vice-Chair of the CSR Committee of the Management Association of the Philippines.

benito.teehankee@dlsu.edu.ph

Dumaan: a resilient gold medalist in pencak silat

August 31, 2017 | 12:04 am

JUST as Team Philippines started the process of realization of experiencing one of the tougher campaigns it has had in the Southeast Asian (SEA) Games, the sport of pencak silat infused some form of cheer after it finally ended a decade of gold medal drought care of a resilient athlete in Dines Dumaan.

Dumaan: a resilient gold medalist in pencak silat — Dines Dumaan of the Philippines after winning the gold medal in the men’s tanding putra class A 45-50 kg. division of the 29^th Southeast Asian Games pencak silat competition Tuesday at the Kuala Lumpur Convention Center. — *PSC-POC MEDIA GROUP*

Competed in the men’s tanding putra class A 45-50 kg. category, the Capiz native Dumaan, competing in his first SEA Games, captured the gold medal by defeating Firman of Indonesia, 4-1, in the gold-medal match held at the Kuala Lumpur Convention Center last Tuesday.

It was a product of not giving up, Mr. Dumaan said, as he endured reeling from a solid hit by his opponent before taking Firman down thrice on his way to hacking out the gold medal-winning victory.

“I got dizzy when I got hit. I really had no idea if I can continue fighting,” said Mr. Dumaan, who got his shot at representing the country in the 29^th SEA Games in Malaysia after claiming the bronze medal in the 5^th Asian Beach Games and fourth place in the 17^th World Pencak Silat Championship last year, after his victory.

“But I didn’t lose hope. I don’t want to quit and lose the chance of winning the gold medal for the country,” he added.

Mr. Dumaan’s gold medal was the first in the sport for the country since 2005 in the Games held here in the Philippines where Earl Buenviaje took gold in it.

Loosely described as the martial arts forms practiced throughout the Malay Archipelago, “silat” is traditionally practiced in Malaysia especially, Southern Thailand, Singapore, Vietnam, Brunei, Philippines and Indonesia. Silat is a combative form of the Malay fighting arts. It can be divided into two main categories which are “Silat Seni” (Artistry event) and “Tanding” (Match event).

Meanwhile, the Philippines was to wrap up its campaign in the SEA Games in Kuala Lumpur yesterday, falling way short of its goal of winning at least 50 gold medals out of 37 sports events it fielded athletes in. It currently has 24 gold, 33 silver and 64 bronze medals, good for sixth place in the 11-country field.

As of this writing, Filipino speed skater Kathryn Magno is the lone athlete left to compete. — Michael Angelo S. Murillo

Britain’s PM May visits Japan with eye on Brexit fears

August 31, 2017 | 12:03 am

OSAKA — British Prime Minister Theresa May arrived in Japan on an official visit Wednesday with an eye to soothing Brexit fears and pushing ahead on early free-trade talks with the world’s number three economy.

Ms. May is scheduled to sit down with Toyota’s chairman during her three-day tour which starts in Osaka before moving to Tokyo where she will meet with Emperor Akihito and Prime Minister Shinzo Abe, who visited Britain this year.

Britain formally told the EU in March it will withdraw from the 28-member bloc, stirring fears in Japan about what the move would mean for companies with significant business interests in the country.

“We’re going to ask for transparency and predictability so as to minimize the impact on (our) companies,” a Japanese foreign ministry official in charge of European affairs said ahead of Ms. May’s visit.

More than 1,000 Japanese companies do business in Britain, employing some 140,000 local people with many using Britain as a staging post to do business in Europe.

Among them, automakers Toyota and Nissan have factories in Britain while tech giant SoftBank last year announced the $32-billion purchase of British iPhone chip designer ARM Holdings.

But Britain is now at risk of losing the “passporting rights” financial firms use to deal with clients in the rest of the European bloc.

That, along with political uncertainty surrounding Brexit negotiations, has spurred foreign companies that have set up shop in Britain, or established European headquarters there, to begin looking for alternative locations.

Japanese megabank Mitsubishi UFJ has said Amsterdam and Paris were favorites to be the new European base for its securities operations.

Brokerage Nomura, Daiwa Securities and Sumitomo Mitsui Financial Group are planning to move their main EU bases from London to Frankfurt.

‘BEST SCENARIO’
Britain’s foreign minister Boris Johnson boasted about Japan-UK investment when he visited this summer, but local firms will be looking for solid assurances from Ms. May, who is traveling with a business delegation.

“The best scenario for us is that Britain cancels its Brexit decision,” said Ichiro Hara, head of the international affairs bureau at Japan’s top business lobby Keidanren.

“But if that isn’t an option, we are saying we need a transitional period… to mitigate the negative impact,” he told AFP.

Ms. May — who arrived in Osaka Wednesday and is to attend a traditional tea ceremony in nearby Kyoto — will also be discussing issues tied to global terrorism and regional security, after North Korea sharply escalated regional tensions by launching a ballistic missile over Japan on Tuesday.

“The prime minister is outraged by North Korea’s reckless provocation and she strongly condemns these illegal tests,” a spokeswoman for Ms. May said Tuesday.

“From our perspective, we are willing to continue to work with our international partners to keep the pressure on North Korea.”

Ms. May is also expected to focus on pushing forward with plans for a Britain-Japan free trade agreement.

But analysts said there would not likely be much progress until Japan and the EU wrap up a nearly-finalized trade deal, and details of Brexit are worked out.

“You cannot start official talks about such an idea until Britain leaves the EU,” said Osamu Tanaka, a senior economist at Daiichi Life Research Institute. — AFP

Better use of water key to Middle East’s future — WB

August 31, 2017 | 12:03 am

POLITICAL STABILITY and economic growth in the Middle East and North Africa could hinge on better management of scarce water resources, the World Bank (WB) said in a report released Tuesday.

With poor access to water and poor sanitation, the region is suffering annual economic losses of as much as $21 billion, according to the report, published to coincide with the global “Water Week” events which opened Monday in Stockholm focusing on innovative solutions for these issues.

The estimate reflects costs from health care and lost productivity due to illness and premature death from water-borne disease, Anders Jagerskog, a World Bank specialist in water-related matters, told AFP.

Hafez Ghanem, World Bank vice-president for the Middle East and North Africa, said the region was living beyond its means in terms of water.

“If we think of water resources as a bank account, then the region is now seriously overdrawn,” he said in a statement, adding that consuming water faster than it could be replenished undermined the region’s long-term wealth and resilience.

Water scarcity also can spark conflicts, the report’s authors warned.

The “fragility and conflict” in the region can be blamed on “the failure of governments to address/manage water scarcity,” Claudia Sadoff, who led the study, told AFP.

“The often-cited example is Syria, where decades of poor water planning made people and agriculture vulnerable to drought,” she said. This in turn led to “failed agricultural harvests (that) contributed to unemployment and unrest.”

The solution requires improving water management methods, they said.

More than 60% of the region’s population live in areas under high or very high water stress compared to just 35% worldwide.

Despite the scarcity of water, the regional authorities impose the world’s lowest consumption charges.

“Low service tariffs discourage efficient use of water,” said the authors, who are calling for higher fees that reflect water’s true value.

More realistic fees could encourage the public to reduce consumption while generating revenue to pay for resource protection measures and maintaining infrastructure, they say.

Guangzhe Chen, head of the World Bank’s Global Water Practice, also recommends less conventional methods of sourcing water, such as desalination and recycling.

Currently, more than half of waste water in the region is dumped into the environment untreated, resulting in waste and health risks.

Jordan and Tunisia already safely reuse waste water in irrigation and to replenish supplies, according to the World Bank. — AFP

AboitizPower unit inks $800-M notes facility

August 31, 2017 | 12:03 am

ABOITIZ POWER Corp. on Wednesday said its unit GNPower Mariveles Coal Plant Ltd. Co. (GMCP) signed a notes facility agreement amounting to $800 million with a consortium of lenders.

“The proceeds of the notes will be used by GMCP to, among others, refinance its existing loans and for other general corporate purposes,” the energy arm of the Aboitiz group told the stock exchange.

The noteholders are BDO Unibank, Inc., China Banking Corp., Land Bank of the Philippines, Security Bank Corp. and Philippine Bank of Communications, it said. BDO Capital & Investment Corp. is acting as sole mandated lead arranger.

GMCP is a partnership among AboitizPower units Therma Mariveles Holdings, Inc., and Therma Mariveles Camaya B.V., with Mariveles Coal Project GP Corp., Power Partners Ltd. Co., and AC Energy Holdings, Inc.’s affiliates Arlington Mariveles Philippines GP Corporation, and Arlington Mariveles Netherlands Holdings B.V.

GMCP owns a subcritical coal-fired power plant, including associated and auxiliary assets.

The plant has two units each with a capacity of 345 megawatts (MW). The plant is in Mariveles, Bataan.

On Wednesday, shares in AboitizPower slipped by 0.25% to close at P39.40 each. — Victor V. Saulon

Construction contract for 3rd Mactan-Cebu bridge ready for awarding

August 31, 2017 | 12:03 am

CONSTRUCTION OF the P27.9-billion Cebu-Cordova Bridge project is expected to start soon as the government is ready to award the contract, according to the Cebu provincial government. Secretary Adelino B. Sitoy of the Presidential Legislative Liaison Office told Governor Hilario P. Davide III last week that two foreign contractors, one a Spanish firm and the other Korean, are in the final list of contenders. “Ang target this month i-award to the most qualified bidder,” said Mr. Sitoy who was in Cebu City last week for a forum. The Cebu-Cordova Bridge, the third bridge to link Mactan island to mainland Cebu, is a public-private partnership project with Metro Pacific Tollways and Development Corp. (MPTDC). A groundbreaking ceremony for the toll road was held in March.