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Napoles as witness, Espinosa drug case to have top priority for review

NEWLY APPOINTED Department of Justice (DoJ) Secretary Menardo I. Guevarra on Monday said he “will give top priority to a review of recent DoJ actions on Kerwin Espinosa and Napoles.”
Mr. Guevarra was referring to high-profile cases that drew controversy for his resigned predecessor, Vitaliano N. Aguirre II, on whose watch a drug case involving confessed drug lord Kerwin Espinosa was dismissed, while alleged pork barrel-scam mastermind Janet Lim-Napoles was recommended for provisional coverage under the DoJ’s Witness Protection Program.
“I will reserve any judgment though till I have thoroughly studied the matter,” Mr. Guevarra, previously Senior Deputy Executive Secretary, said of these cases in a text message to reporters.
“For now I’m forming a small legal team to assist me, on top of the veteran guys at the DoJ,” he added.
Mr. Espinosa and other drug personalities were accused with violation of Republic Act 9165 or the Comprehensive Dangerous Drugs Acts of 2002.
Mr. Aguirre had defended the dismissal of their case, saying it was still subject to his review. State prosecutors Aristotle M. Reyes and John M. Humarang also drew flak for their dismissal of that case.
Before leaving the agency, Mr. Aguirre reassigned the drug case to a new panel of prosecutors consisting of Senior Assistant State Prosecutor Juan Pedro C. Navera, Assistant State Prosecutor Anna Noreen T. Devanadera, and Prosecution Attorney Herbert Calvin D. Abugan.
This would also give the Philippine National Police’s Criminal Investigation and Detection Group (PNP-CIDG) an opportunity to reinforce their weak evidence, which Messrs. Reyes and Humarang cited as the reason for the case’s dismissal.
Mr. Espinosa and his co-accused were ordered by the DoJ to present themselves at a hearing on Thursday, April 12. — Dane Angelo M. Enerio

Nation at a Glance — (04/10/18)

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

Banaue Rice Terraces Restoration: A case study on Tourism Sustainability

Let me start with a little scenario.
Tomorrow, one family or barkada will take a trip to the mountain resort of Baguio and then the magnificent rice terraces where tourists will pick up native carvings by the mountain tribes and if they are lucky, some authentic image of rice gods.
They are doing what tourists have always done: taking in a little sightseeing, a little sunbathing, enjoying the local flavors.
Tourism has always been an activity of man. In fact, a Greek philosopher once advised: “The world is a book. If you have not traveled, you have only read page one.”
Boracay has gained much fame around the world for its unequalled beauty, a signature label, and idyllic tourist destination. It has received numerous accolades and awards. On the positive side, it has provided a lot of economic benefits to the area and to the country as well.
Lately, however, the downside of neglect and disregard for environmental needs has threatened the future of the island paradise. The timely intervention of the government arrested what could have been an irreversible trend for the island, and great difficulty in resuscitating an ailing facility.
The same situation is believed to be happening in other destination areas, such as Bohol, Palawan, and Baguio. For instance, in the mountain resort of Banaue, the condition of the rice terraces is not healthy. In all of these cases, our eyes have been opened to the incapacity of the Filipinos to manage and sustain such tourism treasures. The negative effect of tourism development is upon us, and we are hard pressed to fend of the gloom.
Primarily, tourism affects the environment, the degree of which rises in direct proportion to the volume of tourists. The destruction maybe in terms of damage to plant and animal life (biological), pollution of air and water, or in the destruction of the landscape through uncontrolled building and inappropriate infrastructures and superstructures.
At a conference on the social and economic impact of tourism on pacific communities, held sometimes in the 70’s, one conclusion was reached unanimously: “Tourism promises dreams but produces nightmares.” This impression was a result of the information and insights shared by developing countries about the problems attendant to tourism growth. Tourism can be disruptive when it reinforces the desire for socioeconomic aspirations that are not locally attainable. A look at Boracay and other tourism resorts reveal the cultural degradation of the locality. They have lost their native identity. The injection of the culture of an alien element has greatly influenced the concept of development, so much so that basic considerations that impact of long-term operations are ignored or unattended too, all in the name of the might tourism dollars.
Coupled with the greed of national and local officials, the effects are really disastrous. Boracay and the rest of the booming tourist spots showcase irresponsible governance and lack of control mechanisms to achieve sustainability.
In 2016, a successful businesswoman, a philanthropist, a corporate social responsibility advocate was awakened after being briefed on the situation of the Banaue Rice Terraces by Mayor Jerry Dalipog, municipal mayor of Banaue. Dr. Milagros How is a visionary, a distinguished alumni awardee of the University of the Philippines for Corporate Social Responsibility in 2017. A physical inspection of the area exposed the stark reality that if no one will start, the Philippines stands to lose a rich UNESCO heritage, one of the 7 wonders of the world.
Universal Harvester, Inc., a private corporation, initiated the project that will restore a portion of the rice terraces as part of their Corporate Social Responsibility efforts. The project is a joint partnership with the Banawe Municipality under the leadership of its mayor.
The initial area for development is about 30 hectares. This will be the model that will create spill-over effect into other areas in order to achieve development and restoration of about 500 hectares within the next 3 years.
Aside from the physical restoration, the project hopes to revive the sociocultural values of the populace that has nurtured the rice terraces for the last 2,000 years.
rice terraces
One major objective of the project is to enhance the tourism value.
With its restoration, corresponding development in physical infrastructure will follow, which will create a big demand for tourism-oriented facilities like accommodation, transport, attractions, etc.
It aims not only to improve the physical condition of the natural heritage but also protect the cultural identity of the destination and the locals, and develop the cultivation of rice terraces that will enhance livelihood. Banaue is a good example of destination development as it promotes restoration and sustainability by improving or rehabilitating Banaue Rice Terraces with the involvement of the important stakeholders: the host community and the host government.
Ensuring that the community is part of the said project is necessary because the host community and the host government are more knowledgeable about the place. Community, private, and government partnership will ensure that the interests of the stakeholders are addressed.
Banaue will try to avoid the moves or mistakes that have resulted in the deterioration of Boracay, and other destinations. The reasons affecting sustainability can be attributed to lack of governance, command and control, and leadership.
Governance has been delegated to the local government units (LGUs). The LGUs by the nature of limited terms of their officials, dictated by periodic elections, reveal an absence of vision that must be achieved and perpetuated towards a long-term goal. Complicating sustainability is the myopic mind-set of local officials who view their office as a reward to perpetuate political and economic power.
Command and control are based on political allocation and accommodation. Local government regulations are so dysfunctional, resulting in massive inefficiency. These are the major obstacles to sustainability. It also discourages empowerment of people who must be the architects and engineers of sustainable development.
Last March 8, the Banaue International Music Composition Competition was launched. Composers of symphonic music from all over the world are sure to experience an in-depth musical and cultural immersion program and create music inspired by the Banaue people’s musical heritage.
Through a creative musical endeavor, we hope to showcase the Banaue Rice Terraces and raise awareness for restoration and prevention of its cultural significance to the Filipino people.
The Banaue Rice Terraces restoration project holds a lot of promise. It rests upon a solid foundation of strong private-public partnership under the stewardship of Dr. Milagros O. How, president and CEO, Universal Harvester, Inc., Banaue Municipal Mayor Jerry Dalipog and the people of Banaue. It is hoped that Banaue will become a success story in sustainability. It will be anchored on a responsible, moral, and ethical leadership. These attributes are always found wanting in the implementation of our tourism program. Brig. Gen. Yogyog (Ret), a native of Banaue, supervises the project on sight.
We shall make the difference.
While tourism is not the job of a soldier, it is better done with the application of the essential attributes of military leadership.
The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.
 
Jaime S. de los Santos is a member of the MAP National Issues Committee, presently Professorial Lecturer of Management (Part-time) UP — Diliman, Project Coordinator, Banaue Rice Terraces Restoration Project.
jaime_dlsantos@yahoo.com
jimmydlsantos@gmail.com
map@map.org.ph
http://map.org.ph

What do we do?

For those who know the drill, disaster response consists of a series of deliberately taken steps — awareness, mitigation, preparation, response, management, relief-rehabilitation, and recovery — to ensure survival and continuity. In a sudden happening, many of those aspects would be overlapping each other simultaneously. In a slowly evolving crisis, there’s time to do all that sequentially.
Let’s take the evolving trade war between the US and China.
As of 2018, the United States has the world’s largest economy and China has the second largest, although China has a larger GDP when measured by PPP. The United States and China have an extremely extensive economic partnership, a great amount of trade between the two countries necessitates somewhat positive political relations, yet significant issues exist.
It is a relationship of economic cooperation, hegemonic rivalry in the Pacific and mutual suspicion over the other’s intentions. Relations were strained by president Barack Obama’s Asia pivot strategy and support for Japan in the Senkaku Islands dispute. President Donald Trump’s threats to classify the country as a “currency manipulator” and strategic competitor have raised anxieties worldwide. Stock markets have gone south in recent days when both began imposing tariffs on each other’s products.
China’s main export markets, in order of importance, are the European Union (20.4%), United States (17.7%), Hong Kong (13.4%), and Japan (8.1%). China’s main import markets, in order of importance, are Japan (13.3%), European Union (11.7%), South Korea (10.9%), Taiwan (9.1%), and the United States (7.2%). Third World countries have long served as a market for Chinese agricultural and light industrial products. China has increased trade and investment ties with many African countries partly to secure strategic natural resources such as oil and minerals.
For the past 20 years, the US-China trade balance has favored China annually and incrementally without let-up. In 1997, China had a favorable balance of $50-billion. In 2007, it was $258.5-billion. By 2017, China was enjoying a favorable balance over the US by $376-billion. America’s exports to China were only $130 billion while imports from China were $506 billion. American companies can’t compete with China’s low costs that have impacted US competitiveness in the global marketplace.
In recent years, China fluctuated between the world’s largest and second-largest economy. It has the world’s largest population. It sets the value of the yuan equal to the value of a basket of currencies that includes the dollar.
When the dollar loses value, China buys US T-bills to support the dollar. In 2016, China began relaxing its peg resulting in currency volatility. China’s influence on the dollar remains substantial.
China is America’s largest lender. Japan is second. As of January 2018, the US debt to China was $1.17 trillion. That’s 19% of the total public debt owned by foreign countries. Many are concerned that it gives China political leverage over US fiscal policy. If China were to stop buying T-bills, interest rates would rise. That could throw the US and the world into recession. And this wouldn’t be in China’s best interests.
Among Southeast Asian countries, the Philippines could be the most affected in the worsening trade tension between the US and China.
In a surprise move that could further escalate the trade war between the two economies, President Donald Trump on Thursday said he has ordered the US trade representative to consider imposing an additional $100 billion in tariffs on Chinese goods. Trump’s pronouncement came after China said it plans to slap $50 billion in taxes on American products.
In a research note dated April 4, RHB Bank Berhad said the trade war’s impact on Southeast Asia will likely be felt through shipments to China that are used as inputs to Chinese exports. The Malaysian bank then explained that the Philippines could be most at risk, as 16.9% of its total exports are part of China’s value chain, compared with countries like Malaysia (11.4%) and Indonesia (10.9%).
The sectors likely to be hit badly from US tariffs are electronics, electrical machinery (computers, etc), and industrial. It appears that the impact on ASEAN, while small, will not be negligible.
Last month, Trade Secretary Ramon Lopez said the Philippines is in “wait and see” mode. Government data show the Philippines’ shipments to China valued at $591.91 million last January, making the Asian powerhouse the fourth top destination of Philippine exports for the month.
The US-China currency and trade wars have been unfolding since the time of President George W. Bush, Jr., perhaps even earlier.
Have we been paying attention? Have our economic managers and business community made it a habit to regularly monitor, assess, plan, and prepare for a bilateral economic war that could quickly zoom to global proportions? How can we best minimize the impact on our economy and people already struggling with poverty and social separation just to survive?
Economic security is human security is national security. Both the public and private sectors go through the ritual of discussing crisis management for natural and man-made disasters. I surmise they know the theory like the back of their hands.
But have they actually put their knowledge into practice in anticipation of worst case scenarios and to take all precautionary measures? An economic crisis calls for crisis management. This one’s been unfolding quite slowly and deliberately. What have we done in response?
Awareness triggers anticipation and foresight. Completed staff work — in this case regular group thinks by those who have power over economic policy — triggers teamwork and performance excellence. We now have a crisis on our front yard. Before it knocks down our door, we’d better be ready with the right mind-set, skill sets, and tool kits to absorb the blows.
If we don’t know what to do, let’s at least have the humility and good sense to outsource the job to those who can ably defend our economy. It may be expensive but that’s a trade-off we’d rather absorb over permanent ruin.
 
Rafael M. Alunan III served in the cabinet of President Corazon C. Aquino as Secretary of Tourism, and in the cabinet of President Fidel V. Ramos as Secretary of Interior and Local Government.
rmalunan@gmail.com
map@map.org.ph
http://map.org.ph

Substantiating ‘Firsts’: Women, Peace, and Security in the Philippines

There will always be some kind of “bragging rights” for those that come as “the first’” — the first to do this, the first to do that. We are not immune to this.
In fact, in many gatherings on United Nations Security Council Resolutions 1325 (UNSCR 1325) through the years, the Philippines has always been acknowledged as the first country in Asia that launched and implemented a National Action Plan on Women, Peace and Security (NAP WPS) in 2010. This is a fact.
Other countries in Asia that launched their NAPs after the Philippines were Nepal (2011); Kyrgyztan (2013); Indonesia, Republic of Korea, and Iraq (2014); and Tajikistan, Japan, Afghanistan (2015).
In 2017, the Philippines could very well be the first country in Asia that has crafted and implemented its third generation NAP WPS and this time, clearly as integral to the peace process and not just an addendum to it.
But beyond the “license to brag” on being “the first” is also the necessity to substantiate what it means to be one.
For example, Action Point 5 of the substantive pillar on Empowerment and Participation of the NAP WPS 2017-2022 seeks to improve the role and status of women in the security sector. As such, it goes beyond female inclusion and participation (which was the focus of the first NAP WPS) and move more towards female leadership.
Without undermining the importance of “counting” women, there is thus the imperative to infer into women’s engagement in decision-making spaces as well in crisis/emergency situations.
Towards the tail-end of women’s month, I have had the privilege of witnessing concrete initiatives of the Department of National Defense (DND) on implementing the NAP WPS 2017-2022. The DND has been a member of the National Steering Committee on Women, Peace and Security (NSC WPS) since 2010 and thus mandated to implement the NAP WPS 2010-2016.
However, it was only fairly recently that it had began to actively strategize to implement the third generation NAP WPS.
For 2018, approved advocacy campaign activities included the conduct of a “Gender, Peace and Security Forum: Women in the Defense Sector” last March 27.
The first part of the moderated panel discussion focused on “Women Leaders” with female officers with several ‘firsts’ tucked in their belts: Colonel Maxima O. Ignacio, PAF (GSC) as the first female aviation student and first female pilot in the Philippine Air Force; Colonel Joselyn R. Bandarlipe CE PA (GCS) as the first female Engineering Battalion Commander in the Philippine Army; and Navy Captain Luzviminda A. Camacho PN (GSC) as the first female ship captain of the Philippine Navy as well as the first female United Nations Contingent Commander who led the 17th Philippine Contingent to the United Nations Stabilization Mission in Haiti (MINUSTAH).
For these women, being seen as “the first” depends on the significance one attached to it: either it is just used as a convenient brand and as a novelty since they are “trailblazing women” in a largely male-dominated institution or it is understood as a benchmark, as a standard for other women in the service to follow. These women have had illustrious careers guided by a certain work ethic that feminists would be proud to call transformative. And truly, they paved the way for other women who would succeed them.
The second moderated panel discussion centered on “Women in the Frontlines” that heard the stories and insights from Major Nancy R. Dacanay PAF, 1LT Mersheena Mahalail Silungan PN (M), MSg Astred T. Graganza PA (FS), and Ms Gecile Gonzales of the Office Civil Defense.
In the context of crisis and emergencies, these women did not boast any “firsts” and yet, they were one of the few who have clearly articulated that gender, at least in their experiences, was not relevant in the front lines — they did what they did not because they were women but because they were people with a mission. They were not “treated” as women by their colleagues, subject to protection, but as persons capable and trusted to deliver the task they set to do.
Interestingly, although there was the recurrent theme of accomplishing a mission effectively, the role of gender somehow rang differently in the experience of some hijab troopers I had a chance to converse with when I went down to Marawi City a few days after the forum.
The hijab troopers were deployed in August 2017 as part of the all-female Civil Relations Company (CRC), a joint initiative of the Armed Forces of the Philippines and the Philippine National Police. Their main task was to assist in the implementation of rehabilitation and recover programs in internally displaced peoples (IDP) camps. Needless to say, this was actually the first initiative to deploy such in an on-going conflict situation.
As their deployment comes to an end, only a few hijabi troopers remain in Marawi. In retrospect, these women believe that they have contributed to a more positive image of the military in the eyes of affected people, particularly, the children.
“When we were newly deployed in IDP camps, children would say they wanted to be ISIS when they grow up; after several months of being part of their lives, they now say they want to be like us, like hijab troopers.”
For these hijab troopers, gender did matter — it was important on how women and children became more open to them, it was significant in a way that they were seen to be trustworthy and sincere, and it was relevant in a way that caring for the affected ones seemed to come more naturally for them.
Indeed, the Philippines may have been the “first” in implementing NAP WPS in Asia.
But there has to be further substantiation on what it means to be the “first.” As what I have learned from women in the security sector, there has been a lot of improvement as regards their role as leaders and decision makers and as women in the front lines. These must be celebrated, be they the “first” or not. But more importantly, their impact on the lives of others — such as the internally displaced children of Marawi — should also be given due worth. The “returns of peace” will not be seen today but rather will be felt at least a generation later… and in retrospect, that would be when we would probably say that gender did matter in peace and security.
 
Ma. Lourdes Veneracion-Rallonza is an Assistant Professor in the Department of Political Science, Ateneo de Manila University.
mrallonza@ateneo.edu

Unboxing your thoughts

In 2014, the top YouTube sensation in the Philippines belonged to a video series of toys being unboxed by two sisters recorded and uploaded by their father. After that, other similar unboxing shows followed. One involved toy eggs being peeled of their layers to show what’s inside. This version got an unbelievable 35 million views.
Now, the term “unboxing” has become a digital event featuring the filming of new gadgets being taken out of the box for evaluation and review by a tech guru.
The progressive revelation of a desirable object through the peeling away of outer layers of covers has always offered a titillating pleasure — Okay, let’s not go there.
What is it about boxes being unwrapped that casts such fascination? Is it the same thrill felt when unwrapping gifts? The celebration of “boxing day” on Dec. 26 for example specifically commemorates the opening of Christmas gifts, in England where the special holiday came from. There are mad sales promos on boxing day in many countries. The theory perhaps is that you would buy what you didn’t get as a gift.
Boxes too have become part of the manager’s vocabulary.
Exhortations to “think out of the box” require throwing away old-fashioned solutions and adopting heretofore unthought-of approaches. Stepping out of the box is a favorite mantra of consultants. After all, if everybody is comfortable with current practices, is there a need for outsiders to offer 10 ways to think out of the box? (Do you really need a box?)
Companies are comfortable with boxes. It defines their comfort zones. The traditional hierarchical structure itself is an array of boxes connected by lines, both solid and dotted, to denote reporting relationships or the flow of information and decision making. Boxes define jobs to avoid redundancies and overlaps.
Ideas out of the box are automatically seen as novel and creative, even if they first seem outrageous and unworkable. Planning sessions have an exercise precisely to get people out of the mental rut they have traveled too predictably before.
Exercises in creativity (think of 25 uses for a paper clip) are supposed to unlock the left side of the brain. This parlor game allows blue-sky, off-the-wall, and far-out ideas to percolate. The facilitator nonchalantly lists down even the weirdest ideas. (Don’t laugh, that’s good — cheese holder; bra fastener; fake beard…what else can a paper clip be used for? Okay, temporarily holding pieces of paper together… anybody else?)
The phrase “out of the box” is based on a puzzle designed by the British mathematician, Henry Ernest Dudenay to connect nine dots to form a box by crossing all the dots, without lifting pencil from paper or retracing any lines. The solution involves drawing beyond the nine dots to complete the puzzle. Extending the line outside is a creative breaching of a presumed limitation.
Even when there was no stated requirement to stay within the space of the nine dots, most of those tested did not think of venturing out of bounds — unless they had encountered this puzzle before.
There is only one rule for out-of-the-box thinking: if it is not explicitly forbidden, it is considered allowed. Sometimes, even stated rules can be broken — they’re already passé and should be changed.
The opposite of thinking outside the box is being “boxed in.” The latter refers to a sense of limits that turns us into creatures of habit and orthodox thinking.
In computer software terms, however, an application “out of the box” is one that is readily available to install and use without further modification. This other meaning ironically refers to a routine approach. It is similar to off-the-rack or ready-to-wear. It is the default setting that requires no further tinkering.
Can being out-of-the-box also imply lunacy? A maverick posture does not necessarily contribute to team play. Being out of the box can mean being unhinged, out of whack, the odd man out, undisciplined, a cowboy going off by himself into the sunset. (Is he on the same page?)
Thinking out of the box has its downside. It often requires a reality check. Straying too far away from the nine dots of life may mean not being able to get back to the box.
 
A. R. Samson is Chairman and CEO, TOUCH xda.
ar.samson@yahoo.com

Asian stocks rebound as investors assess impact of trade war

Asia stocks rebounded as concerns over the possibility of full-scale trade war between the world’s two biggest economies eased. Chinese equity markets reopened after a long weekend.
The MSCI Asia Pacific Index gained 0.8 percent 172.97 as of 12:16 p.m. in Hong Kong, led by gains in healthcare stocks. All of major markets from Japan to South Korea gained except for the Philippines.
U.S. President Donald Trump said Beijing will relax its restrictions “because it’s the right thing to do,” and added that deals will be made on tax reciprocity and intellectual property. Investors focus will now turn to China’s Boao Forum, where President Xi Jinping is among senior officials scheduled to speak. All major U.S. equity indexes on the cash market ended last week lower as data showed March payrolls were cooler than economists forecast.
“Investors started to realized that the risk from a trade war between U.S. and China is quite manageable and the impact should be limited to other countries in Asia, particularly those in Southeast Asia,” Jeffrosenberg Tan, head of investment strategy at PT Sinarmas Sekuritas, said. “The Federal Reserves might be more dovish after the payroll date which is good for the regional currencies.” — Bloomberg

Peso to climb on weak US data

THE PESO is seen to strengthen against the dollar in the first few days of the week due to lukewarm US labor data and escalating trade tensions between the US and China.
Last Friday, the peso strengthened against the greenback, ending the session at P52.02 ahead of the long weekend.
Week on week, the peso also strengthened from its P52.16-per-dollar finish on March 28.
“[The dollar will likely dip] due to weaker-than-expected US labor reports and escalating trade tensions between China and the US,” Guian Angelo S. Dumalagan, market analyst at Land Bank of the Philippines (LANDBANK), said in an e-mail.
According to the Bureau of Labor Statistics, the US created 103,000 jobs in March, well below the 193,000 market expectations as well as the 326,000 non-farm payrolls reported in February.
The jobless rate stayed at 4.1% last month, below the 4% market expectation.
Despite these weaker-than-expected US labor reports, the LANDBANK market analyst noted that “average hourly earnings, which is a leading indicator of inflation, surpassed consensus estimate.”
On the other hand, President Donald J. Trump instructed officials to consider slapping $100 billion worth of duties against China, following Beijing’s imposition of new tariffs on 128 American goods including frozen pork, wine and apples.
“These negative developments are expected to weigh down on the dollar, although their impact could be temporary given that the US still remains generally on track to raising rates two more times this year, Mr. Dumalagan said.
Toward the end of the week, LANDBANK’s market analyst noted that the dollar might recover from its initial fall as it will be supported by potentially upbeat inflation data and the release of the US Federal Reserve minutes.
“Prices on both the producer and consumer sides are expected to pick up in March 2018, aligned with the better-than-expected increase in average hourly earnings,” he said, adding that these suggests that the US inflation is inching closer toward the Fed’s target and that the tightening of the US labor market is staring to exert upward pressure on prices.
During the March meeting of the Federal Open Market Committee (FOMC), the Fed officials have upgraded their outlook on the American economy, suggesting a steeper path of rate adjustments until 2020.
“The FOMC minutes might provide additional details on these hawkish views, affirming widespread beliefs of at least two more rate hikes in 2018,” added Mr. Dumalagan.
For this week, Mr. Dumalagan expects the peso to trade between P51.65 and P52.35, while a foreign exchange trader said the peso will move from P51.90 to P52.15 as markets reopen today. — Karl Angelo N. Vidal

Oil trades below $63 as investors assess US-China trade battle

Oil’s decline slowed after prices fell to an almost three-week low as investors continued to evaluate the potential impact of an escalating trade conflict between the U.S. and China.
Futures in New York traded below $63 a barrel after dropping 4.4 percent last week. While U.S. President Donald Trump predicted the Asian nation will be first to buckle as the world’s two largest economies teeter on the brink of a trade war, a speech by China’s Xi Jinping at a conference on Tuesday may shed some light on his plans. Meanwhile, money managers slashed bets on rising West Texas Intermediate crude by the most since August, while short-selling surged.
Oil is losing steam after rising more than 5 percent last month as Trump repeatedly raised the stakes against China, rattling markets in recent weeks. Along with other risky assets, oil took a blow on concern the escalating tension will threaten growth that drives energy demand amid record U.S. output, hindering efforts of the Organization of Petroleum Exporting Countries and its allies to curb a global glut and prop up prices.
“It’s a tough market at the moment. There’s weakness in the next session or two, and a constrained range until we get more global market news,” Michael McCarthy, chief market strategist at CMC Markets, said by phone from Sydney. “There’s potential for a breakaway announcement from President Xi Jinping. There will be fairly cautious Asia Pacific trading ahead of that tomorrow.”
WTI for May delivery traded 17 cents higher at $62.23 a barrel on the New York Mercantile Exchange at 8:23 a.m. in London. Prices fell 2.3 percent to $62.06 Friday, the lowest close since March 19. Total volume traded was about 15 percent above the 100-day average.
Brent for June settlement was up 24 cents to $67.35 a barrel on the London-based ICE Futures Europe exchange. The contract dropped $1.22, or 1.8 percent, to $67.11 on Friday. The global benchmark crude traded at a $5.08 premium to June WTI.
Futures for September delivery were little changed at 402.3 yuan a barrel on the Shanghai International Energy Exchange. The exchange was closed Thursday and Friday for Chinese holidays.
In the U.S., President Trump ordered a review of tariffs on another $100 billion of imports from China, bringing the total to $150 billion of Chinese goods under consideration. In response, a senior Chinese official said the nation will “retaliate immediately, intensively, without any hesitation.”
Adding bearishness to the market, hedge funds cut their WTI net-long position — the difference between bets on a price increase and wagers on a drop — by 9.4 percent in the week ended April 3, according to the U.S. Commodity Futures Trading Commission. Longs fell 7.4 percent as funds shed the largest number of bullish bets in almost a year, while shorts jumped the most since August. — Bloomberg

What to watch in commodities: aluminum, Trump Vs Xi, copper, soy

We live in interesting times. Just as investors weigh up the U.S.-China trade punch-up, markets need to adjust to a whole new front. U.S. sanctions against Russian companies and oligarchs are upending aluminum. The metal’s surging, while shares in United Co. Rusal are in the grinder. What should we expect this week? And what does it mean for Glencore Plc?
On top of that, there are two gatherings that’ll shape the big-picture agenda. In Asia, China’s leadership, including President Xi Jinping, will deliver their take from the Boao Forum for Asia. And in Peru, heads of state from across the Americas will gather in Lima for a summit that may provide a backdrop for a breakthrough on fraught Nafta talks between the U.S., Mexico and Canada.
Beyond that lot, trade tensions still feature prominently: the copper industry meets in Chile for Cesco week to assess the outlook; agricultural investors will pore over snapshots of supply and demand from the U.S. and Brazil; and the world’s oil heavyweights congregate in India just before OPEC and the International Energy Agency offer their latest assessments.
Davos, Without Snow
With the spotlight on China’s leadership as trade tensions spike, investors will track the tenor and substance of remarks coming out of this week’s Boao Forum for Asia in Hainan, the local equivalent of Davos. President Xi’s going, together with other senior officials and invitees including International Monetary Fund head Christine Lagarde. The fight with the U.S. carries implications for materials across the board, especially soy, metals and gold.
Before the meeting, Foreign Minister Wang Yi signaled there’d be details on new reforms, including measures to further open the second-largest economy. After the talking’s done — with Xi’s address due on Tuesday — mainland trade data on Friday will give a snapshot of how commodity demand stacked up over the first quarter. Watch for the prints on oil, iron, steel, copper and soybeans.
Nafta Deal or No Deal?
A gathering of heads of state and business leaders in Lima, Peru, this week may be the stage for some good news on trade. The U.S. administration is said to be pushing for a preliminary Nafta deal to announce at the Summit of the Americas on Friday or Saturday. President Donald Trump has said that the exemption to steel and aluminum tariffs granted to Canada and Mexico will expire May 1 if he’s not satisfied with the Nafta talks.
On Thursday, Barrick Gold Corp. president Kelvin Dushnisky and Freeport-McMoRan Inc. chief executive officer Richard Adkerson participate in a series of CEO panels. Investors, traders and analysts will be eager to learn how executives are navigating the U.S.-China trade friction and how they would assess impact on demand for metals.
Bear Baiting
Global trade tensions extend well beyond the U.S.-China standoff, with Washington’s robust new sanctions against Russian tycoons, companies and allies of President Vladimir Putin roiling markets. Push-back from the Kremlin will come: Russia’s Foreign Ministry is working on measures, ministry spokeswoman Maria Zakharova said on a state television channel.
The fallout is hitting aluminum given the importance of United Co. Rusal, the world’s biggest producer outside China, and billionaire owner Oleg Deripaska. Rusal’s initial assessment is the sanctions may result in technical defaults, and it’s likely the moves will hurt the company’s business. Aluminum is rallying in London on Monday, extending Friday’s gains, while Rusal stock plunges. All that may pose a challenge for Glencore, one of Rusal’s top holders.
CESCO Meet
Over in Santiago, top mining executives, traders and investors will gather for the annual Cesco copper week, with talking points spanning the global trade brawl to labor tensions. The market is enduring something of an identity crisis, with its short-term outlook dimmed by large stockpiles and the U.S.-China trade showdown that threatens to undermine demand.
Strikes, or the lack thereof, will also likely feature in conversations among the attendees. Prices climbed last year after a 44-day strike at BHP Billiton Ltd.’s Escondida mine in Chile disrupted supply, helping push the market into a deficit. While this year is poised to be the busiest on record for workers’ contract negotiations, there’s growing optimism that companies and unions could reach an agreement, avoiding disruptions.
WASDE and Conab
Soybeans have been a target of China’s planned retaliation against the U.S. tariffs, derailing the oilseed’s rally this year. Is the worst yet to come for American growers? The U.S. Department of Agriculture’s World Agricultural Supply and Demand Estimates, known as WASDE, may provide some clues. The data is due on Tuesday, the same day Brazil’s crop agency Conab releases its soybean and corn outlook. The U.S. and Brazil compete against each other in supplying grains and soybeans to the Asian nation.
Traders will scrutinize both estimates for exports for clues on what to expect from the tensions between the U.S. and China. The brewing trade war also has roiled grain and livestock markets and it’s likely volatility will persist. A pork tariff issued by the Chinese government, and the threat of similar taxes on soybeans, have led to an uncertain view for American agricultural shipments, just as farmers gear up to plant the coming season’s crops.
Oil’s Biggest Guns
This week oil traders will watch out for reports from two of the industry’s most influential institutions — OPEC and the International Energy Agency. The pair will publish monthly reports with their latest forecasts for supply and demand in 2018, which may be provide clues which way prices are headed.
The snapshot from OPEC, which has been curbing supply to reduce a glut comes on Thursday, with the IEA assessment due the next day. Also in the focus this week, the market’s biggest guns including Saudi Arabia’s Energy Minister Khalid Al-Falih, OPEC Secretary-General Mohammed Barkindo and IEA Executive Director Fatih Birol will gather in New Delhi for International Energy Forum.
Bulls Versus Bears
Hedge funds have been increasing their net-short position on raw sugar and traders aren’t optimistic on the sweetener’s outlook either, as a global glut persists. Half of the analysts and traders surveyed by Bloomberg were bearish, the most since December.
Sentiment was also negative on soybeans, while traders and analysts were split on natural gas and gold. — Bloomberg

Finals loss just a bump in the journey — Magnolia

By Michael Angelo S. Murillo
Senior Reporter
AS CLICHÉ as it sounds, the Magnolia Hotshots Pambansang Manok are viewing their recent campaign in the PBA Philippine Cup as more of the journey than the destination; that the experience they had in it should only serve to make them stronger as they continue to make their trek back to league elite status.
Back in the Philippine Basketball Association (PBA) finals after four years, the Hotshots saw their bid for another title thwarted by the San Miguel Beermen after they lost, 4-1, in their best-of-seven All-Filipino title series.
Magnolia took the series-opener against San Miguel but just could not add up to it as the Beermen strung up four straight victories, capped by a 108-99 double-overtime win in the title-clinching Game Five on April 6, en route to making history with their fourth consecutive Philippine Cup crown.
Despite falling short though, the Hotshots are not completely down on themselves, believing they have surpassed the goals they set for the just-concluded tournament and knowing they gave their all amid the tough odds they were facing, which together is something they could build on moving forward.
“As a rebuilding team this is would only help us. We take our experience here and learn from it,” Magnolia coach Chito Victolero told sportswriters following their Game Five defeat.
“I’m talking here as a group for we know Paul Lee has the experience in the finals, Mark Barroca, PJ Simon and Rafi Reavis have the experience but as a group we don’t have it yet as compared to San Miguel which already have the chemistry as a team and the mental toughness to fight their way,” the coach added.
Making things tougher for Magnolia in the finals was the absence of key cogs Marc Pingris and Justin Melton who were sidelined by injuries as the team made its playoff run.
Mr. Victolero said the two injured players could have greatly helped their cause but would not use it as an excuse, and that he was still proud with the way his players handled themselves given the handicap they had against the Beermen.
“I’m very proud of my players. I don’t want to make an excuse that we had injuries but it’s the reality. It’s a big loss because we lost two of our best defenders in Ping (Pingris) and Justin. But despite that my players forged ahead and I’m very proud of that,” Mr. Victolero said.
He added, “We played a very good team and despite our best efforts it was not enough. Hopefully we get back to the finals with a complete lineup. Our ultimately goal is to win the title. We will not give up and just do what we need to do.”
Asked for takeaways as a coach who made his maiden PBA finals appearance, Mr. Victolero said he, too, learned a lot.
“I learned a lot as a coach especially how to prepare the mind-set of the players. We played a lot of back-to-back games and it was a challenge to motivate the players and prepare them to battle,” he said.
“I’m happy with the character we have built with the team of never giving. We overcame a lot in the tournament and surpassed expectations. We just met a strong and ready team in the finals. But we need to move on,” Mr. Victolero ended.
Magnolia now channels its attention to the import-laden PBA Commissioner’s Cup which begins on April 22. It will be backstopped by reinforcement Vernon Macklin.

Reed captures Masters title in thriller

AUGUSTA — Fending off epic challenges from three top rivals in a dramatic Masters final round, Patrick Reed captured his first major title Sunday, grinding out a one-shot victory at Augusta National.
The 27-year-old US Ryder Cup firebrand showed the same grit he displays in match-play battles, dispatching Jordan Spieth, Rickie Fowler and Rory McIlroy in an emotional battle that had spectators roaring.
“Today was probably the hardest mentally a round of golf can possibly be,” Reed said. “I knew it was going to be a dogfight.”
Reed, whose breakthrough came in his 17th major start, fired a 1-under par 71 to finish 72 holes on 15-under 273, one stroke ahead of Fowler with Spieth third on 275 and Spain’s Jon Rahm fourth on 276.
“Having to shoot under par in the final round to win my first major, it was awesome,” Reed said. “It was really satisfying.”
In addition to the iconic winner’s green jacket, Reed pocketed $1.98 million from an $11-million purse.
Reigning British Open champion Spieth, the 2015 Masters champion and twice a runner-up, matched the low final-round in Augusta National history with a 64, a closing bogey thwarting his bid for the biggest comeback to win in Masters history.
“I started nine back,” Spieth said. “I wanted to shoot a low round and see if something crazy happens.”
Fowler, still seeking his first major win, birdied six of the last 11 holes. He sank a seven-foot birdie putt on 18 to pull within one and keep Reed under pressure to the 72nd hole.
Needing a two-putt par from 25 feet at 18 to win, Reed gently tapped the first putt and saw it race four feet past the cup. He sank the comeback effort and pumped his fist in celebration.
“To have to two-putt the last hole to win my first major, it definitely felt right,” Reed said. “I was glad to end the drought.”
Reed’s last-pair partner McIlroy kept near on the front nine, chasing his dream of a Masters win to complete a career Grand Slam, but managed only one birdie in the last 14 holes.
“Tough day. But I’ll be back.”
KUDOS FROM TRUMP TO REED
US President Donald Trump congratulated Reed, who won a 2014 World Golf Championships event at Trump-owned Doral, although Trump mistakenly cited it as in 2013.
“Congratulations to Patrick Reed on his great and courageous MASTERS win!” Trump tweeted. “When Patrick had his amazing win at Doral 5 years ago, people saw his great talent, and a bright future ahead. Now he is the Masters Champion!”
Reed, who had never cracked 70 in 12 Masters rounds before this week, became the fourth straight first-time Masters winner and the ninth first-time winner in the past 10 majors.
Reed’s approach at the par-5 13th clung to a bank above Rae’s Creek, his title bid nestled with it, but he escaped with par to stay deadlocked with Spieth for the lead at 14-under.
Reed sank an eight-foot birdie putt at the par-4 14th to regain a one-stroke lead and parred to the clubhouse to win.
Spieth clipped a tree branch off the 18th tee and needed three to reach the green, where he missed an eight-foot par putt that would have seen him match the 18-hole course record.
Spieth was only the seventh player to shoot 64 in the last round, the first since Bo Van Pelt in 2012.
American Charley Hoffman aced the par-3 16th with a 6-iron, the 20th time the hole has surrendered a hole-in-one, while compatriot Tony Finau birdied six consecutive holes from the 12th to 17th.
Dustin Johnson fired a 69 to share 10th on 281 and retain his world number one ranking. Spieth, Rahm or Justin Thomas could have overtaken him by winning.
TIGER ROARS LATE
Tiger Woods, playing his first major event since 2015 in a comeback from nagging back pain and spinal fusion surgery, fired a 69, his week’s low round.
“It was possibly the highest score I could have shot today,” Woods said. “All in all it was a bittersweet ending.”
The 14-time major champion sank a 29-foot eagle putt at the par-5 15th and birdied 17 but a closing bogey denied his goal of level par overall.
Woods, a four-time Masters champion, failed to deliver on promise showed in two top-5 tune-up finishes but said he was glad to be back.
“I really missed it,” Woods said. “I made too many mistakes. But overall it was a lot of fun. It felt great to be able to compete again.” — AFP

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