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Davao Oriental aims to boost MSME goods production

MICRO, SMALL and medium enterprises (MSMEs) from Davao Oriental have their products on show at the 26th Sikat Pinoy Inalima 2018 Trade Fair and Exhibit organized by the Department of Trade and Industry (DTI) provincial office. The provincial government, in a statement, said each of the 10 municipalities and one city, along with the Department of Science and Technology, have a booth featuring fresh and processed food, wearables, furniture, organic agriculture products, and ornamental plants, among others. “Inalima is an expression of what Davao Oriental is in terms of enterprise. Displays are many of the examples (of how) robust… progressed the different industries,” said Gov. Nelson L. Dayanghirang in his message during the event opening. At the same time, Mr. Dayanghirang stressed that “overlooking abundance, there is still a need to look into the different gaps, different concerns of micro enterprises so that they can be strengthened and the production could grow.” “And when they produce more, they provide more income to people. That would lead to addressing poverty,” he added. The trade fair is on until June 30 at the Honey’s Hotel in Mati City. — Mindanao Bureau

Zamboanga City’s green space project to connect 3 public areas

THE P74-million green space project of Zamboanga City will “improve and connect the public open spaces in three identified areas,” according to Assistant General Services Officer Riza May Basing. In a statement from the city government, Ms. Basing, an architect, said the areas are: Waterfront city zone, which includes the RT Lim boulevard and Paseo del Mar; heritage city zone, covering the central business district along with the mini parks in the area, and the eco city zone that includes the Pasonanca and Abong-Abong areas. The project is one of the approved proposals under the Department of Budget and Management’s P2.59-billion Local Government Support Fund for “green” infrastructure. The project fund is expected to be released within the 3rd quarter this year. — Mindanao Bureau
>> See related story on Cities hoping to tap fund to improve open spaces

Nation at a Glance — (06/29/18)

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

Human nature and how it shaped our Constitution

As we move closer to possible changes to our Constitution, now is a good time to reflect and remember its philosophical and historical foundations. The Constitution was not made and does not exist in a vacuum. There is a context to it and much of that context is all too human.
constitution
Because the logical (really, natural) starting point when thinking about the Constitution is man and his nature.
Some people, of course, would deny that human beings have a nature. And they are very well entitled to that belief or thought. But the Constitution does contain a particular view of human beings and — like it or not — one that is peculiarly Western and Christian.
The first is that human beings are entitled to “dignity”. We see this in Article II. They then have certain inherent rights and these are found in Article III.
Chief Justice Reynato Puno speaks of the basis of these dignity and rights in his brilliant concurring opinion in Republic vs. Sandiganbayan. Thus, they “belong to every human being by virtue of his or her humanity. The idea superseded the traditional concept of rights based on notions of God-given natural law and of social contract. Instead, the refurbished idea of human rights was based on the assumption that each individual person was entitled to an equal degree of respect as a human being.”
The idea here is that man is a rational creature, endowed with almost god-like gifts: the ability to reason, to create, and to know truths. Hence, man is separate and of a different class from other creatures. Human beings, unlike animals, are never means but always ends.
With the intellect comes freedom to choose. And with it, by dint of practical reason and experience, the ability to determine acts leading to fulfillment of his being (“human flourishing or “happiness” or “eudaimonia”) and those that lead him away. Logically, the choice should be one that leads to that flourishing (i.e., the “good”) and not to acts that prevent it (i.e., the “bad”). Human morality is essentially the study of those choices.
Most of our laws, criminal or civil, are based on that idea of freedom and that ability to choose good from bad.
Hence, criminal laws punish those willfully committing malicious acts (or the grossly negligent), with concomitant reductions in liability if such freedom be diminished (i.e., aggression, insanity, etc.). The same with civil laws: contracts (including marriage) are only valid if freely and knowingly entered into.
Yet, our constitutional system also acknowledges that we human beings are not perfect, that our character and intellect is inherent flawed.
Thus, James Madison: “What is government itself, but the greatest of all reflections on human nature? If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself.”
And thus, the idea of checks and balances and the separation of powers: “A dependence on the people is, no doubt, the primary control on the government; but experience has taught mankind the necessity of auxiliary precautions. This policy of supplying, by opposite and rival interests, the defect of better motives, might be traced through the whole system of human affairs, private as well as public.”
Princeton’s Robert George puts a nonreligious explanation for man’s imperfect nature: that we are actually not entirely free. Citing Plato: “the project of a human life is overcoming what is perhaps the most abject form of slavery — the slavery to one’s own desires, the slavery to one’s self.”
Thus, government’s role is to set up the “common good”, i.e., the environment allowing people to achieve for themselves the “good life.”
But not only government.
As George points out (and may I add, our constitutional principle of “subsidiarity” actually places primacy the following over government), “our parents, and our religious institutions, and our schools (when they are healthy) are all about the business of soul-shaping. The goal of those institutions is getting the little baby, who is all absorbed in want satisfaction, to grow to be a responsible human being who is master of himself, who has control over his own desires. And when that works, then you have got human beings who are fit for freedom in the full political sense, who can be entrusted to be the guardians of their own liberty, who can be entrusted with republican government, who have the virtues that are necessary for ordered liberty.”
It has worked well for many countries, particularly the United States. The question we must ask ourselves is: Has it worked for us? And if not, why not?
Things to be pondered before we even think of changing our Constitution.
 
Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.
jemygatdula@yahoo.com
www.jemygatdula.blogspot.com
facebook.com/jemy.gatdula
Twitter @jemygatdula

Standby regime

President Rodrigo Duterte has denied ordering the arrest of “istambay” (the plural form of Filipino nouns is not formed with an “s”) despite the Philippine National Police’s detention of over 7,000 mostly young people, and the death, most likely through a police beating, of at least one individual who had stepped shirtless out of his home to get a cellphone “load” only to be arrested and jailed.
Those arrested have included a 24-hour convenience store customer, a young man standing in front of his own home, and others whose illegal detention once more demonstrates how easily the police can abuse the people they’re supposed to serve and protect. The two-week-long campaign is turning into another orgy of arbitrary arrests and detention, the denial of due process, and quite possibly of the right to life itself.
The human rights abuses that have been and are likely to be committed and the lawlessness of the campaign are more than evident. What are not are the drive’s problematic definition of istambay as do-nothings who’re potential and actual criminals, and the tenuous assumptions behind it that have led to this latest assault on a large segment of the urban population.
The Filipino word istambay or “tambay” is derived from the English “stand by,” one of those quaint outcomes of the encounter between two languages and cultures in the course of the Philippine experience with US colonialism and imperialism.
Like certain other words and phrases in English — such as “sanction,” which can mean to approve of, as well as to punish — the phrase “stand by” can have two conflicting meanings, depending on the context in which it is used. One is to support, as in “The newspaper stands by its reporter’s story.” The other is to do nothing or to ignore, as in (and it really happened) “The police were standing by while the partisans of the president drove a vehicle into the protesters’ ranks.”
The word istambay as it has evolved in Filipino is generally assumed to mean to do nothing if a verb, or to refer to someone who isn’t doing anything, if a noun. Hence nakatambay lang usually means not doing anything, while istambay lang refers to an idler. Both are disparaging terms.
These popular meanings notwithstanding, the istambay as a Philippine phenomenon is more complex than it appears, and has been the subject of sociological studies. It has obviously escaped Mr. Duterte’s and his brilliant covey of advisers’ grasp. But it is obviously due to the persistence of unemployment and poverty in Philippine society.
Unable to find work, the istambay whiles away his days and even nights in the streets and the local corner store. His fellow istambay could include those who prefer indolence as a way of life. But an individual’s being an istambay doesn’t necessarily mean he’s not looking for a job, only that he can’t find one. He may also be between jobs in this country of endless “endo,” or labor contracting — a system of job insecurity in which one could have been gainfully employed the previous week only to be jobless today.
Why istambay are in the streets or at the corner store rather than at home sociologists have attributed to the poverty that afflicts them, among the consequences of which is poor, even primitive housing in which space and ventilation are at such a premium the streets, no matter how mean and dangerous they often are, at least offer enough room to breathe and move around in. The brutal heat of the Philippines’ tropical climate also explains why many of them go shirtless in the streets and in their homes.
Mr. Duterte and his police look at istambay as potential trouble-makers or as actual criminals. This is at best only partly accurate. Some do linger in an area in the hope of snatching the handbag or cellphone of a passerby, or of stumbling into some other opportunity like breaking into a house, a parked car, an office or some other potential source of treasure. But these individuals do not usually tarry in their own neighborhoods but in other communities — say a business district or a street lined with upper middle-class homes — where they’re not known.
Not only do criminals usually avoid fouling their own nests. Committing a crime where one isn’t known also reduces the risk of being caught. But other, less morally-challenged istambay do try to find some honest means of surviving the day by earning a few pesos through intermittent work such as serving as “watch your car” or “wash your car” boys, setting up hollow blocks or wooden planks for people to walk on without getting their feet wet during floods, pushing stalled vehicles, repairing leaking roofs, etc.
As usual, however, the Duterte regime is grossly simplifying another social and economic problem perpetrated by the failure of government to address its root causes. Like the illegal drug trade and drug addiction, the istambay phenomenon is a multidimensional issue that arresting, jailing, or even killing people can’t eliminate. But it’s a truth beyond the comprehension of the hopelessly unteachable political clique this country is burdened with.
No regime has ever truly addressed the root causes of unemployment, poverty, criminality or any of the legions of problems that have kept the Philippines the development laggard of Asia for over seventy years. While pretending to address them, every administration merely stood by as the problems grew and multiplied.
From 1946 onwards — from the Quirino to the Marcos regimes, and from Corazon Aquino’s to her son Benigno S. C. Aquino III’s administrations — the government approach has never been the adoption of such basic reforms as land redistribution and national industrialization to boost productivity and generate employment. Instead it has always been the use of state violence to quell the protests, rebellions, uprisings, and insurgencies driven by the gross disparities in incomes and economic opportunity and the social injustice that have characterized life in these islands for centuries.
The Duterte regime is no exception, although it has distinguished itself in its singular focus on the use of force against the long suffering poor as its primary — some say its only — weapon in the futile enterprise of eradicating the symptoms while completely ignoring the causes of the poverty that afflicts nearly 25% of the population.
The police have announced that they will no longer use the word istambay or tambay in the regime campaign against petty criminality, but expect istambay to nevertheless continue to be its victims. The campaign is perfectly consistent with what the regime has been doing in such other areas as the drug trade, the misnamed tax reform law, and others in what is fundamentally a war against the poor who, though victimized by decades of incompetence, corruption, and bad government, are being blamed and punished for their own poverty.
The Duterte regime pretends to be addressing poverty and its attendant problems while in reality merely standing by while the country continues its rapid descent into chaos and mass despair. Like its predecessors, it too is an idler and a loiterer — or, to mix metaphors, another Nero, another fiddler while the Philippine version of ancient Rome burns.
 
Luis V. Teodoro is on Facebook and Twitter (@luisteodoro). The views expressed in Vantage Point are his own and do not represent the views of the Center for Media Freedom and Responsibility.
www.luisteodoro.com

Monsoon mood

On rainy, dreary days, people feel blue. It is a reaction to the absence of sunlight. The incessant monsoon rains exacerbate the mood of anxiety and restlessness.
In the temperate zones, prolonged periods of darkness and too much artificial lighting have debilitating effects on sensitive personality types. Seasonal Affective Disorder and depression set in.
In the tropical zone, where there is abundant sunshine, one can get claustrophobia by working in a windowless office. There is “cabin fever” syndrome similar to the effect of being confined in a prison cell. Ordinary fluorescent and incandescent laps cannot approximate natural sunlight.
Whenever the blues strike, one needs to step into the sunlight. Exposure to the sun’s beneficial rays improves one mood, and physical, emotional, and mental health.
The source of energy and strength, the sun maximizes and accelerates the processing of minerals, nutrients, and vitamins that humans derive from food. Without vitamin D, the body and the bones deteriorate. Without natural light, the brain does not function properly. Sleep is elusive. The body’s biorhythm goes out of synch.
On a psychic level, the sun plays a significant role in helping the individual get in touch with his soul. This explains why some of the ancient cultures worshipped the sun. The Earth revolves around the sun. The seasons — spring, summer, autumn, and winter — follow a chronological pattern based on the earth’s axial tilt towards the sun.
Linking with the sun increases vitality and verve. It elevates one’s consciousness, promotes inner growth, and expands awareness.
We have the resiliency to adjust to circumstances.
To alleviate sadness, stress, depression or anxiety, people have different ways of coping. Physical activities, sports and exercise trigger the happy hormones. Others immerse themselves in creative or spiritual activities — music, arts, prayer, meditation, and yoga.
Whenever possible, some people escape to the cool mountains. Amidst the familiar mist and towering pine trees, one can recapture a semblance of the bygone, carefree childhood days. The fresh air, brilliant colors, and fragrance of flowers invigorate the body and soothe the spirit. It recalls the nostalgic years when life was simple and easy. Rainy days and nights may come but one feels cozy and safe in a cocoon or a time bubble. The rhythmic patter on the roof is a counterpoint to the sound of crickets and cicadas.
Many people flee to the beach for sunshine. The healing rays work on brain, the immune system and the bones.
The water babies and sailors splash at the seashore, explore hidden coves and swim with the exotic fishes. The powder blue sky is cloudless and the wind blows the playful kits and vivid sails out to sea.
The hours can stretch to days of nonchalance and indulgence. After all, the body and mind deserve a brief hiatus from distress and pollution.
One of the best experiences at sea is watching the moods of the sky and the play of shadow and light. Sunrise is a pastel palette of peach, pink and blue streaks across the East. The sun seems like a pale lantern lighting up the distant lavender hills and rolling pastureland. Everything seems to be soft focus and hazy. The air smells of freshly cut grass. The happy sound of chirping birds announces a new day.
There is a cliff that overlooks a small lagoon. It is almost the mythical never land. The boisterous kids prove their bravery by diving into the clear water to play hide and seek inside the cavern underneath. Peter Pan, the lost boys and the mermaids, are imaginary playmates.
During low tide, they wander around inside the tunnels and make eerie echoes. When the tide rises, they scamper to safety on the rocks or the hidden corner of a rocky beach where the endangered species of pawikan sea turtles lay their precious eggs.
Monsoon season is unpredictable. The rainstorm may suddenly happen. Thunder and lightning precede the downpour. The towering clouds release gallons of water. The waves heave and break against the craggy cliff. The southwestern wind habagat howls. The trees shudder as leaves are shorn from the branches. The sea and sky turn slate and charcoal gray.
When the weather clears up, one can watch a spectacular sunset. As the magnificent orb descends from the heavens, a magical performance begins.
Cloud formations assume mythical shapes lit from within. The sky resembles a canvas with abstract splashes of yellow, copper, cobalt, crimson and indigo. Sea gulls soar then dip gently into the shimmering sea.
From the vantage point of a raft, one sees a new perspective. The sun on brink of the horizon takes on a new meaning. One feels the fluid pulse of the sea. Slowly, one learns to let go.
 
Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.
mavrufino@gmail.com

Harley-Davidson is an early casualty of trade war

By The Bloomberg Editors
IN A speech to a joint session of Congress shortly after his inauguration, President Donald Trump praised Harley-Davidson, the storied motorcycle manufacturer, as a great American company — the kind he most wanted to see succeed. Less than two years later, he is threatening to punish the firm for doing its best to survive his policies.
motorcycle
This absurd turn of events is no accident. It’s the logical consequence of Trump’s entirely illogical approach to trade.
The mistakes began with the president’s tariffs on steel and aluminum. These rested on a patently false justification: that excessive imports of those metals threatened national security. The tariffs wounded Harley-Davidson, and many other similarly situated US firms, in two ways: They raised the price of imported inputs, and they provoked US trade partners to retaliate.
The European Union has announced tariffs on Harley’s US-made products, rendering them uncompetitive in EU markets. The company has said it will therefore move more of its production bound for Europe offshore. An embarrassed Trump is accusing the firm of cowardice and threatening that Harley “will be taxed like never before.”
Moving production abroad to remain competitive was a well-established trend at Harley and many other US companies before Trump’s tariffs. But the trade war the president thinks he can win certainly won’t help keep Harley’s American workers employed. The administration is looking next at tariffs on imports of European cars. If they go forward, expect further retaliation — and a worsening, lose-lose cycle of shrinking trade, diminished US competitiveness, disrupted supply chains and ruined investment plans. US workers and consumers won’t be spared.
Harley-Davidson’s predicament has been especially awkward for a president who wanted to associate himself with the firm and its customers — but bear in mind it’s just one company. Trump’s misguided approach to trade will put many other US producers, famous and not so famous, in exactly the same quandary. The more the president escalates this fight, the more damage he is bound to do.
The president ought to stop his trade-war nonsense before it goes any further — preferably before he finds himself applying sanctions to the very companies he meant to champion.

Why is Unioil Philippines building more e-vehicle charging stations in Metro Manila?

UNIOIL Petroleum Philippines, Inc. has launched on Wednesday its second electric vehicle charging station at its outlet along the northbound side of EDSA in Guadalupe in the hopes that it will encourage more drivers to switch from their fuel-powered cars.

Unioil became the first petroleum company in the Philippines to launch an e-vehicle (EV) charging facility at its fueling station along Congressional Ave. Extension in Quezon City on Nov. 27, 2017.
Even though there are no electric vehicles currently using its charging stations, Unioil is anticipating demand to spike in the future.
“Right now, we are doing this to encourage more people to try the e-vehicles, to bring in e-vehicles. We’re also showing the government that we’re already building the infrastructure. No need to wait. We’re just waiting for the incentives for more e-vehicles to be sufficient,” Unioil President Kenneth C. Pundanera told reporters during the opening of the charging site..
Read the full story.

Germany has more to worry about than going out of the World Cup

Call it Germany’s spoiled summer.
For all that’s going well in this country of about 83 million people — a growing economy, booming real estate market and record-low unemployment — national pride has taken some crushing hits in recent weeks. While Germans like to remind the rest of the world that they make awesome cars, play some mean soccer, elect stable governments and possess a solid bank of global repute — those accepted truths have begun unraveling.
Chancellor Angela Merkel, the bulwark of European stability, is fighting a rising mutiny in her own government; the once-proud auto industry is limping from one scandal to the next; Deutsche Bank AG is crawling into a shell of its former self. And topping it off was the shock of the national soccer squad’s humiliating defeat on Wednesday, when Germany, the defending champion, stumbled out of the World Cup in the first round, the first time since 1938.
“I didn’t expect us to win the cup again, yet to not get past the first round is a real shocker,” Reiner Malberger, a visibly shaken soccer fan from Dortmund, dressed in a German national team jersey, said after sipping beer from his plastic cup at a public-viewing event in Berlin.
The loss was an event of such national significance that even the chancellor felt compelled to weigh in: “Honestly, all of us are very sad tonight,” Merkel said at a public event in the aftermath of the 0-2 upset at the hands of South Korea, a team that ranks 57th on the FIFA scale that is led by Germany. Now the future of German soccer coach Joachim ‘Jogi’ Loew, who has led the squad for almost 12 years, is being called into question.
Merkel, in office for one year longer than Loew, also faces an uncertain future — just three months after she cobbled together a new coalition for her fourth term. Her Bavarian allies are threatening the stability of the government with vows to act unilaterally to get tough on migrants trying to enter the country if she doesn’t seal a European Union-wide deal on the matter at a summit starting Thursday.
While the political drama caught many observers accustomed to a stable political system in Germany off guard, Merkel’s mess was eclipsed on Wednesday by the national outrage following the defeat on the pitch. The banner headline from Bild, Germany’s biggest newspaper, on Thursday morning summed it up: “Without Words!” The story even led the serious Frankfurter Allgemeine Zeitung, while Der Spiegel called the team’s performance a “historical disgrace.”
That’s a description also befitting the German auto industry. Not a week passes by without new revelations about the diesel cheating scandal that first enveloped Volkswagen AG in 2015. The CEO of Audi was arrested last week, accused by prosecutors of trying to tamper with evidence in their ongoing investigation, and has remained in jail since, an unprecedented downfall in Germany of a senior corporate leader. The steady stream of bad news prompted the organizer of the country’s most prestigious automotive awards to cancel the glitzy event last week, saying there were no reasons for jubilation.
Further knocking the car industry, Germany’s most important export machine, has been President Donald Trump’s threat to slap painful tariffs on vehicles imported into the U.S. Daimler AG, which sponsors the German soccer team, was forced to dramatically revise its profit forecast for this year, saying its exports are being hurt in a global trade war.
“We regret the loss for the team and for the German fans,” a Daimler spokeswoman said. Mercedes had built a massive marketing machine around the national squad and the world cup, toying with the prospect of a fifth world-cup title and presenting the players and their trainer as cool rock stars posing around sleek limousines.
And then there’s Deutsche Bank. Seemingly every day, there’s another departure of a key banker as Germany’s largest lender tries to shave off thousands of jobs in a push to return to profit. The bank is by far the worst performer on Germany’s benchmark index this year, having lost 43 percent of its value since the beginning of 2018.
And while Germany mourned its humiliation on the pitch, spectators abroad couldn’t help display some gloating and Schadenfreude. In England, whose team hasn’t progressed to the semi finals since 1990 and only won the trophy once more than half a century ago, the tabloid media could barely contain its glee. The Sun’s front page headline was a definition of the term Schadenfreude and a photo of some dejected German players.
Discount airline Ryanair Holdings Plc, meanwhile, used the defeat for some ambush marketing, touting its “Loew fares” for any traveling soccer fan who might suffer the misfortune of an early trip home. And former England player Gary Lineker, who famously once said that Germany always won at soccer, provided an update on his much-quoted rule.
“Football is a simple game,” Lineker wrote on Twitter after the match. “Twenty-two men chase a ball for 90 minutes and at the end, the Germans no longer always win. Previous version is confined to history.” — Bloomberg

VMware expects revenue growth as business in PHL looks ‘promising’

VMware, Inc. is anticipating revenue growth in the country given the increasing digitalization of companies.
Vice president and managing director for Southeast Asia and Korea Sanjay R. Deshmukh said that business looks “promising” in the Philippines.
“Philippines is growing, one of the top 10 countries in terms of GDP (gross domestic product) growth, so it is a promising business for us in terms of expectation of revenue growth,” Mr. Deshmukh said in a media roundtable on June 28. He didn’t elaborate however on how much growth the company is aiming for.
Country manager Victor Silvino said that the company is in a good position to address the need of companies to use not only data centers or cloud but to continue to move to hyper distributed applications.
“Companies move from putting their data in the data center, to creating digital workspace and…moving to centers of data at the edge, we are well-positioned [in the market],” Mr. Silvino said.
The company recently launched the virtual cloud network, a software-defined network architecture that delivers services to applications and data, whatever the location.
VMWare has major banks as it clients, including Metropolitan Bank and Trust Co. (Metrobank), as well as telecommunications giant Globe Telecom, Inc. It also recently was tapped by Landbank of the Philippines for the state-owned financial institution’s virtualization needs. — Patrizia Paola C. Marcelo

Oil trades near three-year high as Libya crisis tightens supply

US crude traded near the highest in 3 1/2 years as disruption at Libyan ports and a plunge in American stockpiles reinforced fears of a supply squeeze.
U.S. oil stockpiles declined the most since September 2016, the Energy Information Administration reported Wednesday, just as some buyers of Iranian crude faced increasing pressured from President Donald Trump to halt imports from the Persian Gulf nation. A breakaway faction of Libya’s National Oil Corp. ordered the halt of eastern ports placed under its control by a militia leader.
“We are looking at a near-term future where supply risk will support the price,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. “We have seen before the major impact that Libya can have on the market. Europe could end up having to source oil from different locations on a combination of Iran sanctions and the risk of falling Libyan production.”
Prices have been on an upward swing as Trump’s administration seeks to dissuade purchases of oil from Iran, the third-largest producer in the Organization of Petroleum Exporting Countries. The efforts to isolate and hobble the Islamic Republic have overshadowed Saudi Arabia’s plan to lift output to a record within weeks following OPEC’s agreement to relax output caps.
West Texas Intermediate crude for August delivery traded at $72.86 a barrel on the New York Mercantile Exchange, up 10 cents, at 10:54 a.m. in London. Total volume was 25 percent below the 100-day average. The contract rose $2.23 to close at $72.76 on Wednesday, the highest settlement since Nov. 2014.
The spread between front-month WTI futures and the September contract widened for a seventh day to $1.55 in New York as shrinking inventories strengthened the market structure known as backwardation.
Brent futures for August settlement rose 33 cents to $77.95 a barrel on the London-based ICE Futures Europe exchange. Prices on Wednesday climbed $1.31, to $77.62. The more-active September contract was 35 cents higher at $77.81.
The global benchmark traded at a $5.10 premium to WTI for August, after closing at the narrowest since April on Wednesday. The spread has collapsed since settling at $11.43 on June 7, the widest since February 2015.
In Libya, the eastern National Oil Corp. in Benghazi ordered the halt of exports from Es Sider, the country’s biggest terminal, as well as Ras Lanuf, Zueitina, Brega and Hariga, according to company chief Faraj Said. Forces loyal to militia commander Khalifa Haftar gave eastern NOC control of the terminals earlier this month.
The internationally-recognized NOC in Tripoli said it was confident the eastern splinter organization isn’t capable of exporting crude. National production has slumped to 700,000 barrels a day from about 1 million.
In the U.S., nationwide stockpiles declined by 9.89 million barrels last week, U.S. government data showed. That’s a surprise drop from the 3-million-barrel fall expected in an earlier Bloomberg survey. Inventories in the storage hub at Cushing, Oklahoma, also drew down by about 2.7 million barrels last week, while exports rose, hitting 3 million barrels a day for the first time. This was despite concerns about a pipeline bottleneck in the Permian region.
“The massive $11 Brent-WTI spread in early June was probably a significant factor in the jump in exports,” said Stephen Innes, head of trading for Asia Pacific at Oanda Corp. “All the while, supplies will continue to run tight in North America. And without question, the markets are bedeviled again by enormous supply uncertainties. The oil bulls are back in charge.”
Meanwhile, some buyers of Iranian crude in the world’s top oil market such as Japan’s Fuji Oil Co. and Taiwan’s Formosa Petrochemical Corp. are considering ending imports from Iran. The U.S. wants allies to stop all imports of crude from the country by a Nov. 4 deadline. — Bloomberg

Apple gets second supplier for OLED iPhone screens

Apple Inc. will soon land a second supplier for the organic light-emitting diode screens used in high-end iPhones, according to people familiar with the matter, a key step in the U.S. company’s push to reduce iPhone costs and its dependence on Samsung Electronics Co.
South Korea’s LG Display Co. will initially supply between 2 million and 4 million units, small relative to Apple’s sales, as it continues to work on ramping up capacity, said one of the people, who asked not to be identified because the matter is private. That would however help Apple gain leverage in price negotiations with Samsung, the sole supplier of OLED displays for the iPhone X and Apple’s primary rival in smartphones. The expense of that component is a key reason iPhone X pricing starts at $1,000 and sales haven’t met initial expectations.
A successful supply deal would help both Apple and LG. The Cupertino, California-based company would be able to buy significant volumes from LG for next year’s iPhone model, as it tries fight off a slump in smartphone sales. LG needs a fresh source of revenue as it battles a slide in the price of liquid crystal displays.
“Securing a second supplier for OLED screens is crucial for Apple as it will allow the company to reduce its reliance on Samsung, which is currently the sole supplier,” said Jerry Kang, a senior principal analyst at IHS Markit. “At the same time, it will help accelerate a broad adoption of OLED screens. More suppliers means more volume, and in turn, lower pricing.”
The first OLED screens from LG will be used in one model of the new iPhones slated for release this year, the people said. LG wants to supply all the screens for that Apple model, though it’s not clear it can yet achieve that, one of the people said. The shipment is subject to two layers of approval, the first of which is expected around July, the people said.
Apple and LG Display declined to comment. LG Innotek Co., a supplier to LG Display, reversed losses to rise 0.4 percent in Seoul. Samsung Electronics and LG Display fell with a broader slide in the Korean market.
Apple plans to release a trio of smartphones later this year, including two with OLED screens, Bloomberg News reported earlier this year. The latest move doesn’t indicate Apple is aiming for adoption of OLED screens for all of its iPhones next year and it’s more about diversifying its suppliers, one of the people said.
LG Display has been investing billions of dollars into the next-generation technology, which boasts more accurate colors and a thinner structure than LCDs. But it has fallen behind Samsung in signing a deal to supply screens for Apple’s OLED iPhones, as it maintained momentum in developing larger-sized screens. Apple is also in discussions with China’s BOE Technology Group Co. to supply OLED displays for iPhones, Bloomberg News reported in February.
Separately, Apple and Samsung told a judge Wednesday they’d resolved their last remaining legal dispute in a seven-year patent battle. The string of lawsuits started in 2011 after Apple co-founder Steve Jobs threatened to go “thermonuclear” on rivals that used the Android operating system.
The ensuing litigation cost each company hundreds of millions of dollars in legal fees, and tested their reputations as innovators. The companies didn’t disclose the terms of the accord. — Bloomberg

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