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Two doctors among five people charged in ‘Friends’ star Matthew Perry’s death

By Office of National Drug Control Policy - https://en.wikipedia.org/wiki/File:Matthew_Perry_Office_of_National_Drug_Control_Policy_The_White_House.theora.ogv, Public Domain, https://commons.wikimedia.org/w/index.php?curid=139762070
By Office of National Drug Control Policy – https://en.wikipedia.org/wiki/File:Matthew_Perry_Office_of_National_Drug_Control_Policy_The_White_House.theora.ogv, Public Domain, https://commons.wikimedia.org/w/index.php?curid=139762070

LOS ANGELES – Two doctors and three others including a personal assistant to Matthew Perry have been charged with supplying the “Friends” star with ketamine, the powerful sedative that caused his overdose death nearly a year ago, authorities said on Thursday.

The defendants, including a woman known as the “Ketamine Queen,” were part of a criminal network that distributed the drug to Perry and others, US Attorney Martin Estrada said.

“These defendants took advantage of Mr. Perry’s addiction issues to enrich themselves,” Estrada said at a news conference.

Each defendant played a role in falsely prescribing, selling or injecting the ketamine that led to the actor’s death in October 2023, Anne Milgram, administrator of the U.S. Drug Enforcement Administration, said.

Two of the defendants – Jasveen Sangha, 41, and Dr. Salvador Plasencia, 42 – pleaded not guilty in US District Court in downtown Los Angeles on Thursday.

According to authorities, Sangha was known as the “Ketamine Queen” and sold the doses that killed Mr. Perry from her “stash house” in North Hollywood.

Ketamine is a short-acting anesthetic with hallucinogenic properties, sometimes prescribed to treat depression and anxiety but also abused by recreational users.

Mr. Plasencia was accused of distributing ketamine to Perry and to his personal assistant, 59-year-old Kenneth Iwamasa, without a legitimate medical purpose on at least seven occasions.

Mr. Iwamasa, who lived with Mr. Perry, admitted to repeatedly injecting the actor with ketamine including multiple times on the day he died, according to court documents. He has pleaded guilty to one criminal count.

Mr. Plasencia taught Mr. Iwamasa how to administer ketamine, authorities said, adding that the doctor also personally injected Perry with the drug without proper safety equipment, including once inside a parked car.

Attorney Stefan Sacks, speaking to reporters outside the Los Angeles courthouse, said Mr. Plasencia had prescribed ketamine to Perry appropriately and had properly supervised the treatment.

“While the US attorney may disagree with Dr. Plasencia’s medical judgment, there was nothing criminal,” Sacks said, adding that the drug that killed Perry was not supplied by his client.

Authorities said Mr. Plasencia obtained ketamine from Dr. Mark Chavez, 54. In text messages to Mr. Chavez, Mr. Plasencia discussed how much to charge Perry for the drug, stating, “I wonder how much this moron will pay.”

An investigation found that the defendants distributed roughly 20 vials of ketamine to Perry for $55,000 in cash between September and October 2023.

Mr. Chavez admitted to selling ketamine to Plasencia and has agreed to plead guilty to one charge, according to court documents.

The fifth person charged was Eric Fleming, 54, who admitted to obtaining ketamine from Sangha and to distributing 50 vials to Mr. Iwamasa. He has pleaded guilty to two criminal counts.

Mr. Perry died at age 54 from “acute effects” of ketamine and other factors that caused him to lose consciousness and drown in his hot tub, a December 2023 autopsy report said.

Toxicology tests found Perry’s body contained ketamine at dangerously high levels typically found in general anesthesia patients being monitored by professionals during surgery, the report said.

Other contributing factors were drowning, coronary artery disease and the effects of the opioid-addiction medicine buprenorphine.

Mr. Perry had publicly acknowledged decades of drug and alcohol abuse, including during the years he starred as Chandler Bing on the hit 1990s television sitcom “Friends.”

Witness interviews in the autopsy report said he had been undergoing ketamine infusion therapy for depression and anxiety. But his last known treatment was a week and a half before his death, so the ketamine found in his system by medical examiners would have been introduced since that infusion, the autopsy said.

At sentencing, Mr. Iwamasa faces up to 15 years in federal prison and Mr. Fleming faces up to 25 years. Mr. Chavez could be sentenced to up to 10 years.

If convicted on all charges, Mr. Sangha would face between 10 years to life in federal prison. Mr. Plasencia would face up to 10 years for each ketamine-related count and up to 20 years for each records falsification count. – Reuters

Trump tackles Harris’ economic record at rambling press conference

GAGE SKIDMORE- WIKIMEDIA.ORG

BEDMINSTER, New Jersey – Republican US presidential candidate Donald Trump sought to tie his Democratic rival Kamala Harris to the Biden administration’s economic record on Thursday during a meandering, 80-minute press conference at his New Jersey golf club, his latest effort to blunt her momentum.

Flanked by tables stacked with assorted grocery items, Mr. Trump blamed Ms. Harris, the US vice president, for the inflation that has caused the price of everyday goods to rise during President Joe Biden’s term in office.

“Harris has just declared that tackling inflation will be a day one priority for her,” he said. “But day one for Kamala was 3-1/2 years ago. Where has she been?”

The event was aimed at drawing a contrast with Ms. Harris, who has rarely answered questions from reporters since replacing Biden at the top of the Democratic ticket in late July.

But the press conference quickly became reminiscent of a Trump rally, with the former president leveling many of the same false claims he typically unleashes on the campaign trail and speaking for 45 minutes before taking his first question.

He insulted Ms. Harris repeatedly, saying she is “not smart.” When a reporter noted that some Republicans have urged him to focus on policy, rather than personal attacks, he said, “I think I’m entitled to personal attacks.”

“She certainly attacks me personally,” Mr. Trump said.

Mr. Trump noted that Ms. Harris has called him and his running mate JD Vance “weird,” a criticism made viral by Democratic vice presidential candidate Tim Walz.

He also dismissed the suggestion that he alter his approach, telling reporters, “I have to do it my way.”

Ms. Harris’ entry into the race has galvanized Democrats, and polls show she has erased the lead Mr. Trump had enjoyed over Mr. Biden.

The Harris campaign sent out a mock “media advisory” ahead of Mr. Trump’s press conference with the headline, “Donald Trump to Ramble Incoherently and Spread Dangerous Lies in Public, but at Different Home,” a reference to his Bedminster estate.

Ms. Harris is scheduled to deliver a speech on economic policy on Friday in North Carolina.

The grocery staples Mr. Trump used as props included household brands like Wonder Bread, Oreo cookies, Folgers coffee and Campbell’s soup.

Bread and coffee prices have actually fallen over the last year, according to the Bureau of Labor Statistics’ monthly Consumer Price Index. Food costs more broadly are now experiencing an inflation rate comparable with when Trump was president – between zero and 2% a year.

Their substantial price rises in 2022 and 2023, however, have pushed them about 20% to 30% above their levels when Trump left office.

 

TRUMP ALLIES RETURN TO CAMPAIGN

Earlier on Thursday, the Trump campaign announced five hires, including Corey Lewandowski, who served as Mr. Trump’s first campaign manager during his successful 2016 campaign. Mr. Lewandowski voiced his excitement, posting on X: “Let Trump, Be Trump!”

A campaign official, who requested anonymity to discuss internal personnel matters, said the campaign needed more “soldiers” in the race’s closing months and that the hires were not indicative of any broader shakeup.

Other than Mr. Lewandowski, who will be part of the senior leadership team, the hires will largely work in communications and rapid response, according to another person familiar with campaign operations. The person added the campaign had been severely understaffed in that area.

Mr. Lewandowski was forced out of Mr. Trump’s 2016 bid in the months before the election, though Trump later said he regretted it. Mr. Lewandowski was later forced out of a pro-Trump super PAC in 2021 after a donor’s wife accused him of unwanted sexual advances.

At the press conference, Mr. Trump said the new hires did not signify a shift in strategy and praised his co-campaign managers, Chris LaCivita and Susie Wiles.

“It’s a sign that we want to close it out,” he said. – Reuters

Gaza ceasefire negotiations extend another day as death toll exceeds 40,000

A view shows houses and buildings destroyed by Israeli strikes in Gaza City, Oct. 10, 2023. — REUTERS

DOHA/CAIRO – Negotiators were to meet in the Qatari capital Doha again on Friday in an effort to hammer out a Gaza ceasefire agreement as Israel continued to slam targets in the Palestinian enclave.

Gaza health officials reported separately on Thursday that the death toll there had surpassed 40,000 people after more than 10 months of fighting.

This round of negotiations opened on Thursday, and the talks would resume on Friday for a second day, Qatari and US officials said.

A US official briefed on the discussions in Doha, who declined to be identified told Reuters, said that Thursday’s talks were “constructive.”

“This is vital work. The remaining obstacles can be overcome, and we must bring this process to a close,” US national security spokesperson John Kirby told reporters at the White House.

Israel, meanwhile, pressed its assault on Gaza. Gaza health officials said at least six Palestinians were killed on Thursday night in an Israeli air strike on a house in Jabalia in northern Gaza Strip.

Israeli troops earlier hit targets in the southern cities of Rafah and Khan Younis.

In a statement issued late Thursday on Telegram, Hamas politburo member Hossam Badran said Israel’s continuing operations were an obstacle to progress on a ceasefire.

He said the talks must move toward implementation of a framework agreement accepted previously and achieve a complete ceasefire, withdrawal of Israeli forces, return of displaced Palestinians and a hostage exchange deal.

“Hamas looks at the ongoing negotiations in Doha regarding a ceasefire and a hostage exchange from a strategic perspective with the goal of ending the aggression on Gaza,” Mr. Badran added.

Hamas officials did not join Thursday’s talks. Mediators planned to consult with Hamas’ Doha-based negotiating team after the meeting, the official told Reuters.

The Israeli delegation includes spy chief David Barnea, head of the domestic security service Ronen Bar and the military’s hostages chief Nitzan Alon, defense officials said.

The White House sent CIA Director Bill Burns and US Middle East envoy Brett McGurk. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani and Egypt’s intelligence chief Abbas Kamel also took part.

The negotiations, an effort to end bloodshed in Gaza and bring 115 Israeli and foreign hostages home, were put together as Iran appeared poised to retaliate against Israel after the assassination of Hamas leader Ismail Haniyeh in Tehran on July 31.

With US warships, submarines and warplanes dispatched to the region to defend Israel and deter potential attackers, Washington hopes a ceasefire agreement in Gaza can defuse the risk of a full-out wider regional war.

Israel and Hamas have each blamed the other for failure to reach a deal yet neither side has ruled out an agreement.

On Wednesday, a source in the Israeli negotiating team said Prime Minister Benjamin Netanyahu has allowed significant leeway on a few of the substantial disputes.

Gaps include the presence of Israeli troops in Gaza, the sequencing of a hostage release and restrictions on the free movement of civilians from southern to northern Gaza.

UN human rights chief Volker Turk said the Gaza death toll of more than 40,000 reported by the enclave’s health ministry was a “grim milestone for the world”.

“This unimaginable situation is overwhelmingly due to recurring failures by the Israeli Defense Forces to comply with the rules of war,” he said in a statement from Geneva on Thursday.

Separately, Israel’s military said it had “eliminated” more than 17,000 Palestinian militants in its Gaza campaign.

In shattered Gaza where the war has driven almost all of its 2.3 million population from their homes, there was a desperate desire for an end to the fighting.

“We are hopeful this time. Either it’s this time or never I am afraid,” Aya, 30, sheltering with her family in Deir Al-Balah in the central part of the Gaza Strip, told Reuters via a chat app.

The war started after a Hamas raid on southern Israel on Oct. 7 in which Israel says the militants killed some 1,200 people, prompting Israel to attack Gaza in retaliation. – Reuters

Political uncertainty may prod BOJ to pause, but not end, rate hike path

WIKIPEDIA.ORG

TOKYO – The political uncertainty left by Prime Minister Fumio Kishida’s decision to step down will likely lead to a pause, rather than a full stop, to the Bank of Japan’s plan to raise interest rates steadily from near-zero levels.

How long that pause could be will depend not just on how the ruling party leadership race plays out, but how market moves affect the political debate on the preferred pace of rate hikes, analysts say.

Mr. Kishida, who hand-picked Kazuo Ueda as BOJ governor last year, said on Wednesday he will not stand in his ruling Liberal Democratic Party’s (LDP) leadership race in September.

The BOJ worked closely with Kishida’s administration in preaching the benefits of higher wages. Days before the BOJ’s rate hike in July, Mr. Kishida said the central bank’s policy normalization would support Japan’s transition to a growth-driven economy in a sign of his backing towards exiting ultra-low interest rates.

Mr. Kishida’s departure leaves a political vacuum that heightens uncertainty on economic policy, and complicates the BOJ’s efforts to steer a smooth exit from easy monetary conditions in coordination with the government.

Those seen as leading candidates have mostly endorsed gradual increases in Japan’s current ultra-low interest rates, partly as a means to keep sharp yen falls at bay.

Shigeru Ishiba, seen as a frontrunner to succeed Kishida as next LDP leader and thus premier, told Reuters that the BOJ was “on the right policy track” in hiking rates gradually.

Other leading candidates, such as party heavyweights Toshimitsu Motegi and Taro Kono, have also called on the need for higher interest rates and hawkish communication by the BOJ.

The only advocate of aggressive easing is dark horse candidate Sanae Takaichi, who belongs to a party group that supported former premier Shinzo Abe’s stimulus policies.

“Takaichi might be an exception, but most candidates don’t seem to be against the BOJ’s policy normalization. If so, there won’t be much disruption to the bank’s long-term rate hike path,” said veteran BOJ watcher Mari Iwashita.

 

POLITICS-BOJ TENSION

The BOJ by law is granted independence from government interference in setting monetary policy. But it has historically come under political pressure to use its monetary easing tools to reflate the economy.

That policy tension is in part driven by the government’s power to appoint BOJ board members including the governor, which then needs parliament approval to take effect.

With the weak yen intensifying the strain on households through rising living costs, many politicians will likely nod to gradual rate hikes for now, analysts say.

That means the BOJ will likely stay the course and keep raising rates – albeit at a slower pace than initially thought.

A survey taken by think tank Japan Center for Economic Research on July 30-Aug. 6 showed many economists projecting another rate hike by year-end.

“The weak yen has been enemy No. 1 for many lawmakers, which means there is less political pushback against rate hikes than in the past,” said a source familiar with the BOJ’s thinking.

 

MOMENT FOR PAUSE

Data showing the economy rebounded in the second quarter on robust consumption helps justify further rate hikes, analysts say.

The BOJ has too much to lose by ditching a carefully crafted plan to roll back a decade-long radical stimulus program, which put an end to negative rates in March and led to an increase in short-term rates to 0.25% from 0-0.1% in July.

The BOJ remains a global outlier on monetary policy. The central bank kept rates ultra-low even as its US and European counterparts hiked aggressively since 2022 to combat red-hot inflation. Now, the BOJ is raising rates while its peers have begun easing and yet it’s some way off from normalizing policy.

Governor Ueda has said further rate hikes are necessary adjustments of excessive monetary support, rather than a full-fledged tightening – a stance he is likely to maintain.

But the BOJ also has good reason to ride out the storm by standing pat at the next policy meeting on Sept. 19-20, which will likely be close to the date of the LDP leadership race.

The US presidential election may also heighten market volatility and keep the BOJ from acting at a subsequent rate review on Oct. 30-31, analysts say.

“The BOJ will hold off on rate hikes at least until December, when Japanese and U.S. political events run their course,” said Toru Suehiro, chief economist at Daiwa Securities.

The BOJ would also need time to build trust with the new prime minister, who may have to wait until November to be approved by parliament.

An academic turned governor, Ueda has few associates in political circles, which heightens challenges in communicating smoothly with the new administration, some analysts say.

There is no guarantee politicians will keep favoring rate hikes, if the yen’s downtrend reverses course.

A spike in the yen, caused in part by the BOJ’s July rate hike, led to a plunge in stock prices that forced the central bank to back-track on its hawkish communication.

“If the weak-yen tide reverses, some politicians may begin to question whether the BOJ needs to hike rates further,” said Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities. – Reuters

Higher tax on SSBs to offset inflation, fund “First 1000 Days Grant” – AER

STOCK PHOTO | Image by Ernesto Rodriguez from Pixabay

The government should consider a higher tax on sugar-sweetened beverages (SSBs) to offset the impact of inflation on the fixed tax rate, and to fund the “First 1000 Days Grant,” which supports the nutritional needs of Pantawid Pamilyang Pilipino Program (4Ps) members, including lactating mothers and children under age of two, according to one of the co-founders of Action for Economic Reforms (AER).

“The inflation rate has been quite high in the past few years but the tax rate for the sweetened beverage tax is fixed, P6 per volume a liter. So, the real value of the six pesos since the imposition of the tax has gone down,” Filomeno S. Sta. Ana III, coordinator of AER said in an interview during the 2nd day of the Department of Health (DOH) media conference in Baguio City on Wednesday.  

The bill of Party-list Representative Reyes on increasing sweetened beverage tax can ensure the effectiveness of tax rates and increase revenue, according to Mr. Sta. Ana.

“So, a rate of higher than P9, perhaps even P12 will be good, a tax structure that will include the feature that will automatically index the tax to inflation is also most welcome, that’s very similar to the design of the tax on tobacco and alcohol,” he said.  

“We need new revenues in light of the narrow fiscal space we have, in light of the need to finance nutrition.” 

The revenue from a higher SSB tax could be the ideal funding source for the “First 1000 Days Grant” model, Mr. Sta. Ana said, which requires a budget of P2.6 billion to P2.7 billion as it rolls out in 2025, according to the Department of Social Welfare and Development (DSWD). 

“Where do we get the resources (funds), and it is most sensible that such new resources be obtained from a tax like the sweetened beverage tax, (as it) is related somehow to the issue of nutrition,” Mr. Sta. Ana said.  

He also emphasized that the government should not hesitate to impose pro-health taxes, such as an increased tax on sugar-sweetened beverages (SSBs), as these have been proven to reduce obesity concerns and generate revenue for health initiatives and economic growth. 

“Let’s do it, let’s push for the sweetened beverage tax, let’s push for good taxes… not all tax will be harmful to the economy at this time, increasing revenues at this time will be contributing to GDP growth, will be contributing to expansions of investment and growth,” Mr. Sta. Ana said. – Edg Adrian A. Eva

Chinabank marks 104 years of dedication to consumers

From left: Directors Peter Dee and Philip Tsai, President and CEO Romy Uyan, Vice-Chairman Gilbert Dee, Miss Universe Philippines Michelle Dee, Chairman Hans Sy, Director Jose Sio, and Adviser Ricardo Chua

China Banking Corp., more known to many as Chinabank or CBC, celebrates its 104th anniversary this year by reiterating its commitment to stand by its customers “through every endeavor, challenge, and trimuph.”

Now the country’s 4th largest private universal bank, CBC stays true to its core values and heritage while modernizing its image with a new brand and its first brand ambassador.

Learn more about CBC’s recent strides, as well as its tailored products and services, in their recent publication on The Philippine STAR. Click the images below to view the pages.

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Philippine central bank sees room for one more rate cut this year

BW FILE PHOTO

MANILA – The Philippine central bank sees room for one more interest rate cut this year, its governor said on Friday.

“We will always be assessing the situation, but given our current assessment, I think we have room for one more cut this year,” Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona said in an interview with CNBC.

Mr. Remolona also said the monetary authority does not worry too much about the peso’s depreciation.

The peso slipped against the dollar on Thursday after the central bank cut its benchmark borrowing rate by 25 basis points to 6.25%, its first rate cut since November 2020. The peso further slipped to 57.15 pesos against the dollar when markets opened on Friday.

Prior to the rate cut on Thursday, BSP had held its policy settings steady for six straight meetings since November. Previously, it had raised rates by a total 450 basis points between May 2022 and October 2023 to rein in inflation.

Thursday’s rate cut followed data last week showing the economy grew 6.3% in the second quarter from a year earlier, boosted by government spending and investments growth. – Reuters

BSP cuts rate for 1st time since 2020

The Bangko Sentral ng Pilipinas (BSP) cut interest rates by 25 basis points, after second-quarter economic data showed a slowdown in private consumption. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Reporter

THE BANGKO SENTRAL ng Pilipinas (BSP) on Thursday cut policy rates for the first time in nearly four years amid an improving inflation outlook.

The Monetary Board on Thursday reduced the target reverse repurchase (RRP) rate by 25 basis points (bps) to 6.25% from the over 17-year high of 6.5%. This was in line with the expectations of nine out of 16 analysts surveyed in a BusinessWorld poll last week.

Rates on the overnight deposit and lending facilities were also lowered to 5.75% and 6.75%, respectively.

This was the first time that the BSP reduced rates in close to four years or since November 2020, when it last delivered a 25-bp cut amid the coronavirus disease 2019 (COVID-19) pandemic.

“With inflation on a target-consistent path, the current macroeconomic outlook supports a calibrated shift to a less restrictive monetary policy stance,” BSP Governor Eli M. Remolona, Jr. said at a briefing.

He said the BSP remains “mindful of lingering upside risks to prices.”

“The balance of risks to the inflation outlook continues to lean toward the downside for 2024 and 2025 with a modest tilt to the upside for 2026,” Mr. Remolona said.

The BSP adjusted its baseline forecasts to 3.4% for 2024 (from 3.3% previously), 3.1% for 2025 (from 3.2% previously), and 3.2% for 2026 (from 3.3% previously).

It also revised its risk-adjusted inflation forecasts for 2024 to 3.3% (from 3.1% previously), and 2.9% for 2025 (from 3.1%). The risk-adjusted forecast for 2026 was set at 3.3%.

Despite inflation accelerating to 4.4% in July, Mr. Remolona said inflation is expected to trend downward to within the government’s 2-4% target range.

“The downside risks are linked mainly to lower import tariffs on rice, while upside risks could come from higher electricity rates and external factors,” he added.

In June, President Ferdinand R. Marcos, Jr. ordered that tariff on rice imports be lowered to 15% until 2028 from 35% previously.

Rice inflation, which accounts for nearly half of overall inflation, eased to 20.9% in July from 22.5% a month prior. This marks the fourth straight month of slower rice inflation.

Mr. Remolona also noted the impact of the latest economic growth figures on the decision to begin easing rates. The economy expanded by 6.3% in the second quarter, faster than 5.8% in the previous quarter and 4.3% a year ago.

“We’re somewhat more confident in the inflation numbers coming down than in the gross domestic product (GDP) numbers going up,” he said.

“Consumption was relatively weak. So, it doesn’t look like something that could easily be sustained. And so we went for a cut, partly because of that.”

Household consumption, which accounts for about three-fourths of the economy, slowed to 4.6% in the second quarter from 5.5% a year ago.

“Despite tight financial conditions, second-quarter GDP growth has been solid, and the unemployment rate has declined. Public investment alongside easing price pressures and robust employment conditions are expected to support economic activity,” Mr. Remolona added.

OUTLOOK
Meanwhile, the BSP chief signaled another 25-bp cut for the remainder of the year.

“My views have been consistent with a 25-bp cut today and another 25 bps sometime during the year, either in October or December. And we’ll see what happens in 2025,” Mr. Remolona said.

“By the way, the most relevant policy horizon for us is actually 2025 when looking at inflation, because there are long lags in the transmission mechanism of monetary policy. The decision we made today (Thursday) will mainly affect 2025,” he added.

The Monetary Board’s remaining policy-setting meetings this year are on Oct. 17 and Dec. 19.

Mr. Remolona said he also expects the US Federal Reserve to begin cutting rates next month.

“Possibly, 50 bps in September and then 100 bps until the end of 2024. And then maybe another 125 bps in 2025,” he said.

Mr. Remolona noted the impact of the interest rate differential once the Fed begins cutting rates.

“That would mean a wider differential. You know, the (US) policy rate is below our policy rate. But if they cut by more than we do, then the differential will be even wider.  That may exert pressure on the peso a little bit. But given that the peso has been appreciating already, it’s not a big deal.”

Mild US inflation readings this week have cemented hopes that the Federal Reserve will lower borrowing costs in September for the first time in four and a half years, Reuters reported.

Mr. Remolona said the central bank is trying to avoid any off-cycle moves. “Off-cycle decisions are either you think you fell behind the curve or you think you’re facing a hard landing. Otherwise, we avoid off-cycle decisions.”

BIGGER CUTS?
Meanwhile, Gareth Leather, senior Asia economist at Capital Economics, said he expects 25-bp cuts each at the Monetary Board’s last two meetings for the year.

“With inflation set to drop back further and growth likely to struggle, we expect another 50 bps of cuts before the end of the year,” he said in a note.

Easing price pressures will help reinforce the BSP’s decision to reduce rates further, Mr. Leather said.

“We expect inflation to drop back to target in August on the back of beneficial base effects and remain low throughout the rest of the year. If we are right, this should give the central bank the confidence it needs to loosen policy further over the coming months,” he said.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said that with the Fed expected to also begin its easing cycle, this may give the BSP room to deliver bigger rate cuts.

“We now see the Board cutting by a further 25 bps each in October and December, though the chances of much larger 50-bp moves, particularly in December, likely will rise if we’re right about the Fed pursuing more aggressive easing in the fourth quarter,” he said in a note.

The BSP can also continue cutting rates through next year, he added.

“All told, the BSP will have much more room for more rate cuts next year; our inflation forecasts see the annual average dropping further to 2.5% in 2025 from an estimated 3.5% this year, down from 6% in 2023,” Mr. Chanco said.

“The urgency and onus on the BSP to start providing the economy with some support is clear, especially with fiscal policy still constrained by the lagging consolidation efforts from the pandemic-era budget blowout.”

Approved foreign investments surge in Q2

A Philippine flag is seen along Aguinaldo Highway in Imus City, May 28, 2024. — PHILIPPINE STAR/EDD GUMBAN

By Lourdes O. Pilar, Researcher

APPROVED foreign investment pledges surged in the second quarter, driven by improved investor confidence, preliminary data from the Philippine Statistics Authority (PSA) showed on Thursday.

Foreign investment commitments jumped by 220.7% year on year to P189.5 billion in the April-to-June period, a turnaround from the revised 64% contraction in the first quarter.

It was the fastest year-on-year increase since the 4,445.6% surge seen in the first quarter of 2023.

The amount of foreign investment pledges in the second quarter was the biggest since the P394.46 billion approved in the fourth quarter of 2023.

“The quarter-on-quarter expansion of the Philippine economy was apparently taken as indication of market growth, at least in the short and medium term, prompting an increase in investment pledges and approved investments,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail interview.

The Philippine economy grew by 6.3% year on year in the second quarter, faster than the revised 5.8% in the first quarter and 4.3% in the April-to-June period in 2023.

In the second quarter, Switzerland was the top source of foreign investment pledges with P172.04 billion. This accounted for 90.8% of the total.

The PSA compiles the investment pledges from the government’s six investment promotion agencies: Board of Investments (BoI), BoI-Bangsamoro Autonomous Region in Muslim Mindanao (BoI-BARMM), Clark Development Corp. (CDC), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), and Zamboanga City Special Economic Zone Authority (ZCSEZA).

The BoI approved P175.08 billion in foreign investment pledges, accounting for 92.4% of this quarter’s total.

PEZA came in second with P14.03 billion in foreign investment pledges which accounted for 7.4% of the total. This was followed by SBMA with P124.09 million, BoI-BARMM with P110.06 million, CDC with P107.81 million and ZCSEZA with P49.65 million.

Negros Island Region cornered nearly half (45.6%) of the foreign investment commitments with P86.46 billion. This was followed by Calabarzon and Central Visayas with P6.93 billion and P4.35 billion, respectively.

Meanwhile, investment pledges from Filipino nationals rose annually by 103.6% to P525.51 billion in the second quarter. It accounted for 73.5% of the combined pledges worth P715.01 billion.

Foreign and local investments pledged during the second quarter are expected to generate 26,915 jobs once the projects are realized.   

Electricity, gas, steam, and air-conditioning supply industry received the largest amount of approved commitments at P172.74 billion or 91.2% of the total. This was followed by manufacturing with P12.39 billion and administrative and support service activities with P2.84 billion.

“Pledges are pledges. Until we see the approved and actual investment happening, we will have to wait-and-see. This is not to rain on the parade of the great investment pledges performance so far, particularly this [second quarter]. But reality has to set in and approved and actual investments are still the best thing,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, Inc., said in an e-mail interview.

Mr. Asuncion said the higher investment pledges are a direct result of President Ferdinand R. Marcos, Jr.’s foreign trips, where he promoted the country as an investment destination.

“Hopefully, this bump in investment pledges will be sustained,” he said.

Mr. Terosa said the weaker peso in the second quarter made investments in certain sectors in the Philippines more attractive.

For the rest of the year, he said a possible recession in some developed countries, the continued weakness of China’s economy and geopolitical tensions may affect investment flows in developing countries like the Philippines.

“I expect investments to be restrained by these conditions in the second half of the year,” Mr. Terosa said.

Foreign investment pledges, which may materialize in the future, differ from the actual foreign direct investments data tracked by the Bangko Sentral ng Pilipinas (BSP). Aside from the projects, the BSP’s monitoring includes other items such as reinvested earnings and lending to Philippine units via their debt instruments.

Filipino households’ average annual income up 15% in 2023

The average annual income of Filipino families rose by 15% to P353,230 in 2023 from P307,190 in 2021, data from the statistics agency showed. — PHILIPPINE STAR /WALTER BOLLOZOS

THE AVERAGE annual income of Filipino families increased by 15% in 2023, as wages and quality of jobs improved, the Philippine Statistics Authority (PSA) said.

Preliminary data from the PSA showed that the average annual income of Filipino households rose to P353,230 in 2023 from P307,190 in 2021.

In 2023, the average annual spending of Filipino families went up by 12.8% to P258,050 from P228,800 in 2021.

How did average income and spending of a filipino family fare between 2021 and 2023?

The increase in income was attributed to the uptick in wages, salaries and entrepreneurial activities for the period, Undersecretary and National Statistician Claire Dennis S. Mapa told a news briefing.

By region, the National Capital Region (NCR) had the highest average annual family income in 2023 at P513,520, up by 22.9% from P417,850 in 2021.

Calabarzon followed in second place with P426,530 in 2023, up by 18.1% from P361,030 in 2021. This was followed by Central Luzon at P375,240 in 2023, 14.2% higher than P328,540 in 2021.

On the other hand, Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) posted the lowest average annual family income at P206,880 in 2023, followed by Zamboanga Peninsula at P257,140 and Negros Island Region at P266,290.

In terms of expenditure, NCR also had the biggest annual average family spending at P385,050 in 2023, followed by Calabarzon at P310,320 and Central Luzon at P298,700.

BARMM also had the smallest average family expenditure at P168,910, followed by Mimaropa Region at P189,770 and Eastern Visayas at P199,910.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan told BusinessWorld that the government is looking to improve the quality of jobs to increase Filipinos’ household incomes in the next few years,

“Quality of employment is the foremost priority of this administration because… we have historically low unemployment rate already. You can’t do any better than that now you know because that’s the kind of rate that you see in very mature economies,” he said.

In 2023, the jobless rate fell to a record low 4.3%. The underemployment rate — or the proportion of employed Filipinos looking for more work or longer working hours — declined to 12.3% in 2023 from 14.2% in 2022.

“The three-legged sources of economic growth, such as BPOs (business process outsourcing), OFW remittances, and tourism should be supplemented by growth in the manufacturing sector,” Union Bank of the Philippines, Inc., Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

Mr. Asuncion also said the government must build the necessary digital infrastructure to help bolster growth.

How income inequality compared across regions in 2023

PSA data also showed the Gini coefficient, which measures income inequality, slipped to 0.3909 in 2023 from 0.4063 in 2021, PSA data showed. A Gini coefficient reading of “0” would mean perfect equality, while “1” suggests perfect inequality.

POVERTY
Data from the PSA also showed the poverty rate dropped to 15.5% in 2023 from 18.1% in 2021 amid elevated inflation.

The number of poor Filipinos declined by 12.26% to 17.54 million in 2023 from 19.99 million in 2021.

“It’s good that the income increases faster than the food inflation. But, if food inflation will be lower, of course, the reduction in poverty could be much, much bigger,” Mr. Mapa said.

Inflation averaged 6% for 2023, the highest in 14 years. It also marked the second straight year that inflation breached the BSP’s 2-4% target band.

The PSA said a family with five members needed to have at least P13,873 a month to meet their minimum basic food and nonfood needs in 2023.

Among the regions, nine had poverty thresholds higher than the national average, led by Central Luzon with P16,046, followed by NCR with P15,713, and Calabarzon with P15,457.

On the other hand, the Soccsksargen Region posted the lowest poverty threshold with P12,241.

By region, the NCR recorded the lowest poverty incidence among the population at 1.8%, while the BARMM had the highest rate at 32.4%.

Meanwhile, the national poverty incidence among families with five members improved to 10.9% in 2023 from 13.2% in 2021. This is equivalent to 2.99 million Filipino families that do not have enough income to meet their basic food and nonfood needs.

Among the regions, NCR had the lowest poverty incidence at 1.1%, while the Zamboanga Peninsula had the highest at 24.2%.

The Caraga Administrative Region showed the biggest improvement as its poverty incidence declined by 11 percentage points to 14.9% in 2023 from 25.9% in 2021.

FOOD THRESHOLD
According to the PSA, the food threshold for a family of five rose by 14.7% to P9,581 in 2023 from P8,353 in 2021, mainly due to high food inflation. This would mean the food threshold per person in a day is at P64.

Food threshold refers the minimum income an individual or a family needs to meet their basic food needs, “which satisfies the nutritional requirements for economically necessary and socially desirable physical activities.”

Mr. Mapa said the food threshold is based on a sample food bundle with three meals and snacks.

Based on the national food bundle, breakfast is composed of scrambled egg, coffee and boiled rice or rice-corn mix, while lunch is boiled monggo with malunggay and dried dilis, banana and boiled rice. Dinner is composed of fried fish or boiled pork, vegetables and boiled rice, while snacks include bread and boiled root crops.

“This is really basic,” Mr. Mapa said. “Most probably, a lot of people will not be happy about it. But that’s how the bundle was arrived at. And of course, there’s science to it.”

Mr. Mapa said the PSA is reviewing the methodology used for the food poverty threshold.

“There is a review process that we’re doing and as I said we have already initiated to the technical staff ng PSA to review our methodology, the menu,” Mr. Mapa said in mixed English and Filipino. — BMDC

A historic Olympic journey for the Philippines’ golden generation of athletes

From left: Aira Villegas, Carlos Edriel Yulo and Nesthy Petecio — Photos from Philippine Sports Commission Facebook page | Medal photos from olympics.com

Rooted in the ancient games held in Olympia, Greece, the modern Olympic Games are the world’s foremost competition with 206 teams representing sovereign states and territories from around the globe vying for the coveted gold medal in any sport. Only the best of the best athletes get to compete in the international sporting games, which is why winners of any of the 329 medal events become a great source of pride, honor, and excellence for their home country.

Prior to the recently-held Olympic Games in Paris, France, the Philippines has won a total of one gold medal, five silvers, and eight bronze medals since its debut in the 1924 Paris Olympics. The previous Olympic Games in Tokyo, Japan last 2022 witnessed Hidilyn F. Diaz securing hers and the country’s lone gold medal in the women’s 55-kilogram (kg) category in weightlifting.

This year’s edition of the Olympics saw the Philippines send 22 total athletes across nine different disciplines including rowing, boxing, weightlifting, gymnastics, athletics, fencing, golf, swimming, and judo, with Tokyo 2020 silver medalists Nesthy A. Petecio and Carlo Paalam as flag bearers.

Aiming to match — or even surpass — the country’s performance in the prior games, this year’s team won two golds and two bronze medals and has landed 37th in the Olympic medal chart. With this historic Olympic run, the Philippines earned its highest Olympic ranking since the 1964 Tokyo Games, where the country finished 30th with a single silver medal.

After a somewhat disappointing performance in the 2020 Games, Filipino gymnast Carlos P. Yulo bounced back in spectacular fashion reaching the finals of three artistic gymnastic events namely: the individual all-around, floor exercise, and vault competitions.

To start his campaign for a gold medal, Mr. Yulo stumbled as he dismounted during the pommel horse portion of the individual all-around final and scored a measly 11.900. Making up for the disheartening first rotation, the Filipino gymnast followed up with a score of 13.933 in the rings, a solid 14.766 in the vault, 14.500 in the parallel bars, 13.600 in the horizontal bar, and a 14.333 in the floor exercise. Overall, Mr. Yulo overcame a slow start and finished in 12th place.

For his second finals event, the Filipino gymnast had to face Tokyo gold medalist Artem Dolgopyat of Israel and qualification stage first-placer Jake Jarman of Great Britain in the men’s floor exercise.

In a historic moment that secured the country’s second Olympic gold medal ever, Mr. Yulo stuck his three-and-a-half twist dismount, capped by his signature double fist pump towards the judges and a salute to fans in Paris. His performance gave him a score of 15.000, narrowly beating out Mr. Dolgopyat (14.966) and Mr. Jarman (14.933) who won silver and bronze, respectively.

Going for back-to-back gold medals, the Filipino gymnast headed to the vault competition brimming with confidence, as seen in his performance at the event. For his first vault, Mr. Yulo attempted and landed one of only two 6.0-difficulty valued vaults in the competition. His piked Dragulescu, two front flips with a half twist at the end of the move in a pike position, earned him a score of 15.433.

Mr. Yulo then executed a triple twist for his second vault with enough precision to give him a score of 14.800. This brought his total score to 15.116 to give him the lead in the event, which he never relinquished en route to his second gold medal in less than 24 hours and the country’s third all-time.

Meanwhile, in the boxing ring, the Philippines’ biggest boxing delegation since the 1996 Atlanta Games was out in a quest to finally capture the country’s first boxing gold medal. Alongside Ms. Petecio and Mr. Paalam were Tokyo 2020 bronze medalist Eumir DS. Marcial and two debutants, Hergy Bacyadan and Aira Villegas.

Hoping to improve upon his performance from the prior games, Mr. Marcial suffered a devastating defeat in points at the hands of Uzbekistan’s Turabek Khabibullaev in the round of 16 of the men’s 80 kg division.

Meanwhile, Mr. Paalam bid farewell to his Olympic gold medal dreams after losing in the quarterfinals to Australia’s Charlie Senior via split decision in the men’s 57 kg division. Additionally, Ms. Bacyadan failed to pull off the upset against Li Qian of China in a unanimous decision loss in the round of 16 of the women’s 75 kg.

However, not all was lost for the boxing team, as Ms. Villegas and Ms. Petecio each won their round of 16 and quarterfinal matches to advance to the semifinals of their respective divisions.

During her semifinal match at the women’s 50 kg division, Ms. Villegas settled for bronze after a spirited fight against the more experienced Buse Naz Cakiroglu of Turkiye who dominated in the ring and the scorecards winning via unanimous decision with three judges scoring the match 30-27 while the remaining two with 30-26.

In another heart-stopping match, Ms. Petecio fell short against Poland’s Julia Szeremeta, losing via a split decision in their women’s 57 kg boxing semifinal bout. Despite the upset defeat, her valiant effort earned her a well-deserved bronze medal as she became one of only four Filipinos with at least two medals in the quadrennial games.

Ernest John Obiena — Philippine Sports Commission Facebook Page

Aside from these three medalists, several Filipino athletes also came agonizingly close to securing podium finishes. World No. 2 pole vaulter Ernest John U. Obiena faulted on his third attempt to clear 5.95 meters as he lost the bronze to Greece’s Emmanouil Karalis.

Additionally, Filipino golfers Bianca Pagdanganan and Dottie Ardina showed out in their competition. Ms. Pagdanganan, in particular, ranked third after finishing the final round six-under 282 with only a few golfers remaining. This moment, however, will be short-lived as China’s Xiyu Lin birdied in her final hole to close with seven-under 281 and snatch the bronze medal. Meanwhile, Ms. Ardina carded a three-under 285 to respectably place 13th in her Olympic debut.

With heavy expectations after Ms. Diaz’s triumph in the prior games, Filipina weightlifter Eireen Q. Ando placed sixth in the women’s weightlifting 59-kg division after lifting a total of 230 kgs, just five shy of a medal finish. Fellow weightlifters Vanessa Sarno and John Ceniza bowed out early after failing to lift in the snatch portion of the women’s 71 kg and men’s 61 kg weightlifting event, respectively.

Other Filipino athletes who also competed in this year’s Olympics include: Lauren Hoffman and John Cabang Tolentino in athletics; Aleah Finnegan, Emma Malabuyo, and Levi Jung-Ruivvar in women’s artistic gymnastics; Kayla Sanchez and Jarod Hatch in swimming; Joannie Delgaco in rowing; Samantha Catantan in fencing; and Kiyomi Watanabe in judo.

As the 2024 Paris Olympics concludes and the world sets its sights for the 2028 Los Angeles Olympics in the United States, the Philippines can take immense pride in its golden generation of athletes who, for two consecutive Olympics, have showcased to the world what Filipinos can do. With two golds and two bronze medals, this year’s Olympic journey, in a precise twist of fate, has been nothing short of historic. — Jomarc Angelo M. Corpuz

PSE says up to P48.36-B fundraising set for rest of 2024

THE local bourse could see up to P48.36 billion in fundraising activities for the remainder of the year, which could help boost market activity, according to the top official of the Philippine Stock Exchange (PSE).

“In terms of listing, our fund-raising pipeline at this time includes five follow-on offerings (FOOs), one stock rights offering (SRO), and one initial public offering (IPO), which will generate up to P48.36 billion in capital,” PSE President and Chief Executive Officer Ramon S. Monzon said in an e-mailed statement on Thursday.

According to the PSE, three of the five FOOs are expected to proceed in September, while the IPO, SRO, and the remaining two FOOs are tentatively scheduled for the fourth quarter.

 “We hope to see more active trading for the rest of the year on expectations of a rate cut and the record first-half earnings of banks and other listed firms,” Mr. Monzon said.

As of now, the PSE has completed three IPOs, reaching halfway to its target of six IPOs for the year. The completed IPOs include OceanaGold Philippines, Inc., Citicore Renewable Energy Corp., and NexGen Energy Corp.

For the second quarter, the PSE saw a 28% decline in its attributable net income to P155.74 million from P215.06 million last year.

Second-quarter revenue surged by 3.2% to P369.4 million compared with P357.8 million in 2023.

For the first half, the PSE saw a 4.8% drop in its attributable net income to P398.53 million from P418.7 million in 2023.

Revenue fell by 2.3% to P722.75 million due to a 10.7% drop in average trading value during the semester, which reduced income from service fees by P6.2 million and transaction fees by P9.07 million.

Listing-related revenues grew by 0.2% as listing fees surged by 0.2% to P290.98 million. Other income rose by 20% to P161.98 million due to interest income and foreign exchange translation gains.

Total expenses increased by 9.4% to P416.13 million from P380.5 million.

During the first half, the PSE saw two IPOs, three FOOs, one SRO, and three private placements.

“Persistent high interest rates and geopolitical concerns contributed to tepid trading in the first half,” Mr. Monzon said.

“PSE continues to pursue projects that will sustain the company’s growth over the years. This includes the planned acquisition of the Philippine Dealing System Holdings Corp., which we target to complete in the next few months,” he added.

On Thursday, PSE shares rose by 2.27% or P4 to P180 apiece. — Revin Mikhael D. Ochave

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