Nation at a Glance — (03/13/18)
News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
The House of Representatives on Monday, March 12, began the plenary debates on House Bill (HB) 7303 which seeks to institute absolute divorce in the Philippines.
In his sponsorship speech, Albay Rep. Edcel C. Lagman, who is one of the authors of the measure, said “the State shall be steadfast in protecting marriage as a social institution and as the foundation of the family” even as HB 7303 should be passed into law.
Mr. Lagman also noted that “the State is also duty-bound to help couples in dysfunctional marriages where reconciliation is virtually nil.”
Gabriela party-list Rep. Emmi A. De Jesus, another co-author of the bill, stated that the bill seeks to provide a “rights-based option… based on the recognition that the right to enter into a marriage contract has the corresponding spousal right to end such contract when it has reached the point of irreparability.”
Ms. De Jesus also maintained that the “common fear that divorce will erode morals and personal values on marriage appears unfounded” as divorce only adds to already existing options of legal separation, declaration of the nullity of marriage, and annulment as remedy to spouses who want to quit a failed marriage.
She added that the divorce “isn’t a Biblical and religious question” as it recognizes the “plurality of religious beliefs and cultural sensibilities in the Philippines.”
“It should be emphasized that the issue should be approached on the rights-based realm beyond any moral or theological consideration,” Ms. De Jesus said.
For her part, bill co-author Taguig City Rep. Pia S. Cayetano used as example the reported wife who was chopped and skinned by his husband out of rage.
“My question to each and everyone of us here today is: what is so unacceptable about divorce if this will result in the saving of life, of the sanity, of the dignity of a woman before something like this happens to her?” Ms. Cayetano said.
“We are simply asking that we provide the legal vehicle for women or for men who would need this as a result of home that does not give them the peace, the sanctity, the respect that was the promise that they expected when they said ‘I do,'” Ms. Cayetano added.
Buhay party-list Rep. Jose L. Atienza, Jr., who challenged the bill in the plenary, said that there are existing laws which protect men and women from abuse.
“Ang sabi po ng ating Saligang Batas, ang pamilya ang pundasyon ng ating lipunan. Ito’y dapat pinalalakas (According to the Constitution, the family is the foundation of the society. It should be strengthened.). Section 2 (of Article XV) states that marriage is an inviolable social institution,” Mr. Atienza added.
The bill adopts as grounds for legal separation and annulment under the Family Code as grounds for absolute divorce. It also allows summary judicial proceedings to grant divorce on the condition that the couple had been de facto separated for five years; the couple is legally separated; a spouse is in a bigamous marriage; six or more years of imprisonment of a spouse; or a spouse undergoes a sex reassignment surgery.
The divorce bill also provides for six months cooling period should the couple reconcile. — Minde Nyl R. Dela Cruz
Philippine police have arrested a suspected Islamist militant who allegedly helped guard a group of tourists kidnapped in 2001 including an American missionary who was later killed, the justice department said Monday, March 12.
Hood Abdullah is accused of guarding hostages including US citizen Martin Burnham, who was killed and his wife wounded in the crossfire during a botched military rescue attempt in June 2002.
Abdullah was a member of Abu Sayyaf, an Al-Qaeda-linked group blamed for the archipelago’s deadliest bombings, ransom kidnappings and beheadings in recent decades, Justice Secretary Vitaliano Aguirre said.
“Burnham, an American hostage, was always handcuffed to Abdullah… especially on the move,” Aguirre told reporters.
Burnham died 13 months after Abu Sayyaf gunmen kidnapped a group of 20 tourists at an upscale western Philippine resort, including the Burnhams and another American, who was later beheaded.
The gunmen took their victims to their southern island stronghold of Basilan, authorities said.
While Abdullah did not take part in the resort raid, he guarded the Burnhams when several groups of hostages including the missionary couple were put together in one detention area, Aguirre said.
The other hostages were plantation workers and members of the Jehovah’s Witness religious sect — two of whom were rescued and helped to identify Abdullah, the justice secretary added.
Abdullah was arrested on February 27 in the southern port city of Zamboanga, where Aguirre said he was believed to be scouting for fresh victims while working as a motel security guard.
On February 28, authorities arrested a second Abu Sayyaf suspect, Jimmy Bla, elsewhere in Zamboanga, Aguirre said.
Bla owns several powerful motorboats and is believed to have been providing “fast sea transport” to kidnappers, the justice department added.
The two suspects have denied involvement in terrorist activities. — AFP
Lopez-led First Gen Corp. said its unit had entered into a power supply contract with distribution utility Manila Electric Co. (Meralco) for the sale and purchase of around 414-megawatts (MW) of baseload capacity.
First Gen told the stock exchange that with the power supply agreement (PSA), Meralco had secured “competitively priced” baseload electricity, or steady 24/7 power.
The power will be sourced from the listed generation company’s wholly owned subsidiary First NatGas Power Corp.’s “already constructed and currently operational” San Gabriel combined cycle natural gas-fired power plant within the First Gen Clean Energy Complex in Batangas City.
The term of the PSA is six years using gas from the Malampaya field, but, in the event that liquefied natural gas (LNG) becomes available, the term of the PSA could be extended upon mutual agreement with Meralco, First Gen said.
“The San Gabriel PSA offers a number of benefits that will enhance the quality of Meralco’s power generation portfolio by providing: (i) competitive dependable baseload capacity; (ii) an immediate source of replacement power during outages of other baseload plants; and (iii) the option for mid-merit supply matched with Meralco’s ramping requirement since San Gabriel has the ability to rapidly ramp up and down upon notice,” it said.
Under the terms of the PSA, power from San Gabriel is available for purchase by Meralco immediately.
However, the sale of electricity to the utility will only started upon its approval by the Energy Regulatory Commission. The PSA is set to expire on Feb. 23, 2024, unless extended by the parties.
Shares in First Gen were trading higher by 6.35% at P17.74 each, while those of Meralco were up 0.86% to P330 each at around noon on Monday. — Victor V. Saulon
Signs of strength in the U.S. economy and data showing American explorers curtailed drilling activity is helping oil hold gains after its biggest jump in seven months.
Futures in New York were little changed after surging 3.2 percent Friday, the most since July 25. After the U.S. boosted rigs drilling for oil for six straight weeks, American explorers idled four rigs last week, easing fears over surging shale production. Meanwhile, the country’s jobs report topped estimates, increasing confidence in the world’s biggest economy and raising investors’ appetite for risk assets.
The renewed confidence in oil comes as investors increasingly grow concerned that U.S. crude producers may undermine efforts by the Organization of Petroleum Exporting Countries and its allies to curb output. While Friday’s jump helped push prices higher for the week, futures are still below their peak in January, with the market struggling to recoup losses from last month’s broader market slump.
As the rig count fell, “the market is starting to think that U.S. shale oil production may not steadily grow, which is supporting oil prices,” Takayuki Nogami, chief economist at state-backed Japan Oil, Gas & Metals National Corp., said by phone from Tokyo. “The U.S. economy getting better means oil demand will be stronger.”
West Texas Intermediate for April delivery traded at $61.76 a barrel on the New York Mercantile Exchange, down 28 cents at 7:14 p.m. in Singapore. The U.S. benchmark gained $1.92 to $62.04 on Friday. Total volume traded was about 34 percent below the 100-day average.
Brent for May settlement fell 38 cents to $65.11 a barrel on the London-based ICE Futures Europe exchange. The contract climbed 3 percent to $65.49 on Friday. The global benchmark traded at a $3.47 premium to May WTI.
American explorers cut the number of rigs drilling for oil by four, the first decline since mid-January, Baker Hughes data showed on Friday. That followed government data showing the U.S. added 313,000 jobs in February, the biggest increase since July 2016 and more than the median estimate of 205,000 new positions.
Still, fears over increasing U.S. production continue to weigh on producers and investors. Iran wants OPEC to work to keep oil prices at about $60 a barrel as an increase toward $70 will encourage shale oil output, Oil Minister Bijan Zanganeh said, the Wall Street Journal reported.
While OPEC nations have shown a high level of compliance with their pledged cuts, U.S. shipments eating into the cartel’s market share in Asia may prompt some nations to boost supplies, said Warren Patterson, a commodities strategist at ING Groep NV. The fallout could drag down prices to under $60, he said.
The pessimistic view was echoed in money managers’ short-selling position. Hedge funds boosted bets on falling WTI prices by the most this year after American production surged to record levels, according to the U.S. Commodity Futures Trading Commission. — Bloomberg
Emerging-market investors will be gauging the effect of a possible trade war after President Donald Trump revealed his tariff plans. They will also be dissecting the U.S. inflation figures for clues on the Federal Reserve’s rate-hike path.
Below are some of the events and issues likely to dominate trading in the coming days:
Trade and Tariffs
Russia releases January trade data amid concern the country could be among the most affected by U.S. tariffs. Shares of Russian metals companies tumbled in Moscow last week after Trump decided to impose levies on steel and aluminum.
Keeping China Growing
In China, the second week of the National People’s Congress may bring the announcement of a new head for the central bank, who will take on the task of keeping the economy growing while defusing debt risks and steering monetary policy. People’s Bank of China Governor Zhou Xiaochuan, who is due to retire soon, said last week that market access reforms should be accelerated, and that China “can be bolder in opening up.”
China also reports monthly retail sales, industrial production and fixed assets.
Indian Inflation
India on Monday unveils inflation data that will dictate the trajectory of interest rates. The yield on 10-year Indian government bonds fell last week after three weeks of gains.
Peruvian Politics
Peru’s politicians may try again to impeach the president.
President Pedro Pablo Kuczynski testifies before a congressional committee investigating the so-called Carwash bribery scandal on Friday, after which lawmakers may reopen an impeachment debate. The last time Kuczynski’s ouster looked likely, Peruvian bonds swooned and the sol traded at a record low. — Bloomberg
By Arra B. Francia, Reporter
LOCAL EQUITIES bounced back on Monday, tracking positive developments in global markets as fears over interest rate hikes eased.

The bellwether Philippine Stock Exchange index (PSEi) climbed 0.96% or 80.99 points to close at 8,453.50 today, back in the green after two days of losses last week. The all-shares index was likewise up by 0.61% or 31.19 points to close at 5,083.98.
“Today’s PSEi rebound is more of tracking the rise of regional and overseas markets that were buoyed by the possible easing of interest rates pressures in the US. Some bargain hunting is also a factor given the overall market decline last week that have brought relative valuations down,” PCCI Securities Brokers Corp. Research Head Joseph James F. Lago said in an e-mail on Monday.
The Dow Jones Industrial Average jumped 1.77% or 440.53 points to 25,335.74 last Friday. The S&P 500 index also added 1.74% or 47.60 points to 2,786.57, while the Nasdaq Composite index gained 1.79% or 132.87 points to 7,560.81.
Papa Securities Corp. Trader Gabriel F. Perez also attributed the market’s increase to the strength of US markets, which also prompted markets in the Asia-Pacific region to rally.
Majority of local sectoral indices were in positive territory on Monday, with financials leading the charge with a 1.5% increase or 32.76 points to 2,213.51. Property followed with a 1.17% or 44.26-point climb to 3,818.33; services increased 0.67% or 11.81 points to 1,767.17; industrials rose 0.66% or 76.71 points to 11,549.73; while holding firms added 0.58% or 49.18 points to 8,426.02.
Mining and oil was the lone sub-index that declined, dropping 0.66% or 76.27 points to close at 11,445.18.
A total of 8.62 billion issues valued at P7.20 billion switched hands, higher than Friday’s value turnover of P6.58 billion.
Decliners narrowly beat advancers, 109 to 106, while 44 issues remained unchanged.
Foreigners continued their selling streak on Monday, as net foreign outflows rose to P731.71 million from the net sales of P573.73 million logged last Friday.
First Gen Corp was among the most actively traded stock on Monday, after disclosing that its San Gabriel Plant is now contracted with the Manila Electric Co. Papa Securities’ Mr. Perez noted the stock had the highest net foreign buying at P30.8 million.
Sought for an outlook, PCCI Securities’ Mr. Lago said the market may continue trading up, but may still be affected by the faster February inflation print of 4.5%, based on 2006 prices.
“The PSEi will certainly attempt to move back above the 8,500 level but it might be dependent on how investors will come to grips with local inflation that came in higher than expected for the first 2 months of the year,” Mr. Lago said.
China’s thirst for overseas energy investments is slaking, at least by one tally.
The nation’s financing for so-called Belt and Road Initiative energy projects dropped 28 percent to $14.3 billion last year from $19.9 billion, according to data released Monday by Boston University’s Global Development Policy Center. Spending last year included investments in gas pipelines in Malaysia, coal power plants in the Pakistani desert and an oil terminal in Bangladesh.
China has invested about $128 billion in energy projects in Belt and Road countries since 2001, according to Boston University’s research, which tracks finance data from the country’s two policy banks, the China Development Bank and the Export-Import Bank of China. The slowdown in spending last year came as the government cracked down on capital outflows, scrutinizing companies from HNA Group Co. to Anbang Insurance Group Co. that expanded rapidly overseas.
“In late 2016 and early 2017 China suffered a rush of capital outflows due to a mix of premature capital account liberalization and external conditions,” Kevin Gallagher, professor of Global Development Policy at Boston University, said by email. “This led to some fairly tight restriction on capital flows that slowed things down a bit across the board.”
President Xi Jinping announced the Belt and Road Initiative project almost five years ago to rebuild the ancient Silk Road, and to extend China’s reach through Europe, Asia and Africa via infrastructure projects. It includes investments in road, railways, ports and energy ventures across more than 60 countries to open new business opportunities for domestic companies.
Boston University’s research tracks projects in those countries since 2000, more than a decade before the official beginning of Belt and Road Initiative that have been backed by China’s two global policy banks. Other analysts sometimes include private company investments not funded by those banks when researching the initiative.
About half of total energy investments to date went toward electricity generation in countries from Pakistan to Ukraine. The financing is focused on coal power plants in Asia and Africa while gas- and oil-based projects for exploration and distribution dominate projects in Europe and Central Asia, according to the data.
The initiative traverses territory where most bond investors fear to tread. The infrastructure projects also carry uncertainty, with eight countries “at particular risk of debt distress,” according to a research report released last week by the Washington-based Center for Global Development.
It also targets energy sources that have fallen out of favor with international investors. Coal has been the biggest energy source targeted by the banks, with about $44 billion, or a third of energy investments, geared toward the fuel since 2001, according to the research. Oil followed at almost $31 billion and natural gas garnered roughly $27 billion, according to the data.
“Although the majority of development banks and even commercial banks have steered away from coal-fired power plants for environmental and social reasons, the demand is still there and China is filling it,’’ Gallagher said. “Financing so much overseas coal could be risky, as social protest and national policy changes for air pollution and climate change could leave China holding a bag of stranded assets.” — Bloomberg
THE PESO inched lower against the dollar on Monday as market players were cautious due to possible interest rate hikes coming from central banks here and in the US.
The local currency ended yesterday’s session at P52.04 versus the greenback, a centavo weaker than the P52.03-per-dollar finish on Friday.
The peso opened session stronger at P51.95 per greenback. Its intraday low stood at P52.07, while its best showing was at P51.92 versus the US currency.
Dollars traded decreased to $507.9 million yesterday from its $592.1 million finish the previous session.
“The peso closed sideways as investors remained cautious on the dollar in view of March rate decisions by the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve,” a trader said in an e-mail on Monday.
The Fed is widely expected to raise rates later this month, and two more times before the end of the year. Traders stuck to those expectations after a government report early Friday showed job gains surged in February but average hourly wages rose just four cents, slower than expected.
On the sidelines of an event in Makati City on Monday, BSP Governor Nestor A. Espenilla, Jr. said the Philippines does not need to follow the Fed’s move to tighten its monetary policy settings.
“People seem to want us to follow the US’ four rate hikes. But I think it is important to say if you look at the policy stance of the US by comparing its policy rate vis-à-vis its inflation, it is a much looser position than where we are, so why should we follow rate hike one-for-one,” Mr. Espenilla said, adding that the country’s monetary authority allows exchange rate flexibility.
“We are not married to the idea that the peso is of this value come hell or high water it must stand at this value. We let it move,” he said.
“It’s an appropriate response. The current account is widening, exchange rates move, and it creates a self-collecting mechanism so that’s part of the policy combination that we consciously chose.”
Meanwhile, another trader said the peso moved sideways yesterday as banks ignored the US jobs data as well as the domestic balance of trade data released on Friday.
“For today, I think [the data] were ignored,” he said.
The country’s balance of trade stood at a $3.32-billion deficit in January, higher than the $2.47 billion deficit booked in the same period last year, preliminary data showed.
Meanwhile, the US economy added 310,000 jobs in February, according to the US Labor Department. However, the unemployment rate remained steady at 4.1% last month, its lowest since December 2000.
For today, two traders see the peso moving between P51.90 and P52.10, while the first trader gave a slightly wider forecast range of P51.90 to P52.20.
“Rates are still expected to move sideways ahead of uncertainty to the US February inflation data to be released [today],” the first trader noted. — Karl Angelo N. Vidal with Reuters
Philippine banks resumed availing of rediscount loans from the Bangko Sentral ng Pilipinas (BSP) in February after it stood untapped a month ago, the central bank reported on Monday, March 12.
Peso rediscount loans surged to P5.81 billion in February, after lenders did not avail of the loans in January. This also came from the P447 million they borrowed in December.
Philippine banks may borrow from the BSP’s rediscount facility so that they can meet their short-term funding needs, which also allows the central bank to fulfill its duty as lender of last resort.
The facility lets banks submit promissory notes from outstanding debts as collateral to acquire fresh money supply. The cash — which may come in the peso, dollar or yen — can then be used to grant more loans or service withdrawals.
The BSP said the majority of the availments, or 71.86%, went to other credits, when broken down, are particularly distributed to capital asset expenditures (67.78%), permanent working capital (3.94%), housing (0.09%) and other services (0.05%).
The remaining portions, on the other hand, went to commercial credits at 28.1% and production credits at 0.04%. — Karl Angelo N. Vidal
The Department of Environment and Natural Resources (DENR) called for the local government unit in Aklan to strictly enforce the legislation that requires both households and establishments to connect to a sewerage system.
In a statement released on Monday, March 12, Environment and Natural Resources Secretary Roy A. Cimatu said that the LGU of Malay, Aklan had already enacted the ordinance since 2012 but it has not been strictly enforced.
“Boracay’s sewage is the number one problem in the island, and it requires urgent action from us. We are giving companies not connected to the sewer lines one month to link up. If they fail to do so, they will face sanctions,” he added.
The Ordinance 307 states that establishments and households that are within the 61-meter proximity of a sewerage system are required to connect their pipes into the facility.
Those that are farther from the facility are mandated to have their own waste water treatment plants as well as septic tanks.
Boracay Island Water Corp., one of the island’s water concessionaires and the operator of the sewage facilities, in earlier reports said that only 195 of 578 establishments are not connected to its sewer lines while only 5% of 4,331 residents are connected to their waste water treatment facilities.
“Companies release a huge volume of waste water, so it is important for us to crack down on them. And we do not know if these 195 establishments are causing problems with the island’s drainage system,” Mr. Cimatu said.
“For residents, we will help them connect to the sewers if possible, or provide alternatives for them in cooperation with the water concessionaires.”
The other water concessionaire, Boracay Tubi System Inc., only offers to siphon waste water instead of directly connecting their customers to its own treatment plant. — Anna Gabriela A. Mogato
BEIJING — When China called on the US to engage in direct talks with North Korea, it probably never imagined it would be absent from the table.
Beijing, which chaired failed international talks on North Korea that collapsed a decade ago, has long seen itself as central to the negotiations to end Pyongyang’s nuclear program.
But when US President Donald J. Trump agreed last week to hold a historic meeting with North Korean leader Kim Jong Un at a yet-to-be-decided day and place, China was nowhere to be seen.
Chinese President Xi Jinping has not even met Mr. Kim since the young North Korean autocrat took power following his father’s death in 2011.
While China remains North Korea’s only ally and main economic lifeline, relations between the two neighbors have soured as Mr. Xi, under pressure from Mr. Trump, has backed a slew of UN sanctions to punish Pyongyang for its nuclear and missile tests.
In a Friday phone call with Mr. Trump, Mr. Xi praised the US leader’s “positive” move, saying he hoped the US and North Korea would start talking as soon as possible and that China was devoted to solving the nuclear issue through dialogue.
But not everyone was so happy: China’s top-selling nationalist tabloid the Global Times dashed out an editorial aimed at soothing the jangled nerves of Chinese patriots afraid that the country would be sidelined by a Trump-Kim love-in.
“Chinese people should stay calm and remain poised, and avoid the mentality that China is being marginalised,” it said.
“China’s prime interest on the Korean peninsula is its denuclearisation and peace, both of which are more important than China’s relations with North and South Korea and power politics.”
Mr. Trump’s surprise agreement to meet Mr. Kim appears to have shocked many in China, who wonder if the Asian giant — which is increasingly trying to put itself at the centre of global diplomacy — has been cut out of the loop by Pyongyang.
“Given that parts of Trump’s own national security team were not informed of this major change in policy, I’m doubtful that President Trump informed the Chinese, and definitely not with any significant lead time,” said Oriana Skylar Mastro, an expert on China, North Korea relations at Georgetown University and the American Enterprise Institute.
While Washington is happy to use China to squeeze North Korea economically, it is not as interested in involving Beijing in the more delicate work of negotiations.
“The Trump administration sees China as primarily an obstacle to the peaceful resolution of the DPRK nuclear issue and not so much as a critical diplomatic interlocutor,” Skylar Mastro said.
It is natural that Beijing would have reservations about what a Kim-Trump meeting could mean for its own interests in the region, said Zhang Liangui, a professor of the International Strategic Academy of the Party School of the Central Committee of the Communist Party.
“As a neighbor, if North Korea continues to develop nuclear weapons, China could be the biggest casualty,” he told AFP: “so you could say, China is the most important party involved.”
Those concerns came sharply into focus when North Korea literally shook China with an underground nuclear test that produced an earthquake felt over the border.
Beijing also worries that Mr. Kim’s weapons could trigger an arms race in the region, leading its historical rival Japan and perhaps even South Korea to seek nuclear weapons.
SIX PARTIES
While China has long pushed for US-North Korean dialogue, it always saw it as a first step towards returning to the long-dormant Six-Party Talks, which grouped China, the US, Japan, Russia and the two Koreas.
North Korea abruptly quit the international forum in 2009.
“Beijing would be most comfortable to play the mediating role,” said Wenran Jiang, senior fellow at the Institute of Asian Research of the University of British Columbia.
China “still believes” that all six parties must be part of the denuclearization process, he said.
Mr. Xi and his “very experienced foreign policy team seem to have displayed a high level of confidence that China is too big and too important to be left out of the negotiations.”
“They are waiting patiently for the right opportunity and they are quite certain relevant parties will knock on China’s door soon.”
Bonnie Glaser, senior adviser for Asia at Washington’s Center for Strategic and International Studies, said China may offer to host the Trump-Kim meeting, which would “at least increase the possibility that they will be heard.”
“The Chinese traditionally have always worried about the US and North Korea cutting a deal at their expense,” she said, adding that “people in the US have always laughed at those concerns.” — AFP