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No relief for banks’ traders as bosses signal enduring client activity slump

WALL STREET executives had a worrisome message for investors this week: The lack of client activity that sunk trading results in the second quarter has continued.

JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. are seeing declines ranging from 15% to 20% in the third quarter from the same period a year ago, executives announced at an investor conference hosted by Barclays Plc in New York. Goldman Sachs Group Inc. didn’t put a number on its performance, even as co-President Harvey Schwartz lamented “a pretty challenging environment” for fixed-income, currency and commodities (FICC) trading.

“While the direction was not a surprise, we would argue the magnitude of the weakness was greater than expected,” Charles Peabody, an analyst at Compass Point, wrote in a note to clients Wednesday. “We would expect FICC trading revenues to be much weaker than equity trading.”

The biggest investment banks posted declines in trading revenue in the second quarter as asset managers waited to see if central banks would raise interest rates and President Donald Trump’s administration could enact any of its policy goals. Goldman Sachs posted its worst first-half trading results in the 11-year tenure of Chief Executive Officer Lloyd Blankfein.

JPMorgan’s trading revenue is on pace to drop about 20% in the current period from a year earlier, CEO Jamie Dimon said Tuesday at the conference. The projected decline would be JPMorgan’s worst for the July-through-September period since 2011, and is bigger than the 15% drop Citigroup and Bank of America have signaled.

Last year’s third quarter was “particularly good,” Dimon said. Back then, the firm posted $5.7 billion of markets revenue, a 33% increase driven by fixed-income desks.

Another trading decline may mean more job cuts in that business, which already faces pressure from the constant creep of automation. Client-facing roles in equities trading at the 12 biggest global investment banks dropped 2% from a year earlier at June 30, while staff in fixed-income trading fell 1%, according to data from industry analytics firm Coalition Development Ltd. That was the fifth-straight annual decline in front-office headcount for both businesses.

Even with another weak quarter, Goldman Sachs said it was moving to grow more in its fixed-income business after years of cutting. The bank said its lateral hires from other firms were double that of a year ago as it adds salespeople and staff in its European business.

The outlooks didn’t stop the big banks’ stocks from rallying. Shares of each of the four firms have climbed every day this week.

Citigroup Chief Financial Officer John Gerspach said trading has suffered as volatility remains “somewhat subdued.” Last year’s performance benefited from a boost in activity as clients wagered on the prospects for the US election, he said Monday.

This quarter, even mounting tensions with North Korea, two deadly US hurricanes and escalating political turmoil haven’t provided a comparable catalyst. The last three weeks of this month could swing the quarterly results, he said.

SEPTEMBER MATTERS
“For the whole third quarter you really don’t know what happens until you figure out what the operating environment is in September,” Gerspach said.

Citigroup reported $4.07 billion of trading revenue in the third quarter of last year, according to the company’s earnings supplement. A 15% drop would mean revenue of $3.46 billion, which would be the lowest quarterly figure since the final three months of 2015.

At Bank of America, CFO Paul Donofrio said that trading revenue will probably decline 15% from last year’s third quarter. He said on Tuesday that some company CEOs and treasurers the bank counts as clients are less optimistic than they were before the election. The Charlotte, North Carolina-based bank had trading revenue of $3.6 billion a year ago. — Bloomberg

Cebu gov’t assessing more alternate routes to Cebu City as it opens access from Compostela town

AN ALTERNATE road from Compostela town going to Cebu City — skipping Mandaue City and the towns of Consolacion and Liloan — has been opened by the Cebu provincial government as part of its Greenway Links Project intended to help decongest traffic in the Metro Cebu area. “It’s not (a) shorter distance but definitely, shorter travel time kay wa man tay maagian nga (as there is no heavy vehicular) traffic,” said Vice-Governor Agnes A. Magpale in a statement. She added that the alternate road would be especially useful when traffic gets really bad in Liloan, Consolacion, and Mandaue City. She cited that “with terrible traffic,” traversing the 35-kilometer existing highway, “it takes a Capitol employee three hours to get to the town.” Governor Hilario P. Davide III, for his part, said the Cebu City-Compostela alternate route is just a start. “We are still looking for alternate roads for motorists in other parts of Cebu who want to avoid traffic in the national highway,” Mr. Davide said.

Trump’s White House: a gift or a curse for TV comics?

LOS ANGELES — If you thought the election of Donald Trump has been a gift for comedians, think again.

Just as news media outlets struggle to keep pace with the controversies and personalities at Trump’s White House, comedy writers, producers, and talk show hosts have scrambled to process material that a year ago appeared to be a comedy gold mine, but which some no longer see as a laughing matter.

“People say, you comedians must be so happy about Trump,” said Miles Kahn, writer and producer on Samantha Bee’s Full Frontal television show on TBS, a unit of Time Warner, Inc.

“I don’t think any of us are. We’re scared. We get very anxious, we’re kept on edge and when you’re anxious it’s really hard to concentrate and write something funny,” Kahn said.

Full Frontal is competing on Sunday for a variety talk series Emmy — the highest awards in American television — in a tight race that includes late-night shows featuring Stephen Colbert, John Oliver, and Bill Maher, who all have relentlessly attacked Trump and his policies.

Asked about the plethora of Trump material, Bee told reporters last week, “As citizens, we would actually ask for less…. We have what we have, so we make what we can out of it.”

Colbert’s skewering of Trump sent ratings soaring for his The Late Show and helped win him the job of hosting Sunday’s prime time Emmy Awards show.

After its most-watched season in 23 years, sketch show Saturday Night Live, got 22 Emmy nominations. Melissa McCarthy’s impersonations of former White House press secretary Sean Spicer brought her a guest actress Emmy last Sunday, while Alec Baldwin’s take on Trump and Kate McKinnon’s spoofs of Trump aide Kellyanne Conway are in the race this weekend.

STILL A LAUGHING MATTER?
In a nation divided by the 2016 presidential election, comedy fills a vital role, even if laughter is sometimes being replaced by outrage, said Dannagal Young, associate professor of communications at the University of Delaware.

“Comedy has a history of making light of tragedy. A lot of people are looking to these shows to make sense of the political world, to find some kinship with other people watching and in recognizing the insanity for what it is,” Young said.

TV comics like Bee, Colbert, Oliver and Seth Myers, host of Late Night with Seth Meyers, have been so hard-hitting that their material sometimes “comes close to being didactic, and not cheerful,” Young said.

In August, Meyers called Trump a “lying racist.” In May, Colbert said Trump has “more people marching against (him) than cancer.”

Writers on topical shows are constantly being outpaced by news from the White House and Trump’s freewheeling Twitter habit.

“Pretty much on a weekly basis we are throwing out something that we wanted to talk about. After we have rehearsed the show and are in rewrite, we are constantly checking the news to make sure we are not missing anything,” said Kahn.

Meanwhile, shows like White House comedy series Veep, which is bidding for its a third Emmy, and nefarious Washington drama House of Cards, a contender for best drama series, are in danger of being sidelined.

Young questioned whether the once far-fetched premise of such TV shows is still compelling.

“I have been a huge fan of House of Cards, but I’ve not even started watching the new season because I don’t have room for the fictional version. I’m already overflowing with the real version,” she said. — Reuters

Demonstrating potential new medicine safety and efficacy

THE QUALITY, safety, and efficacy of medicines are primary to the drug discovery and development process. When a candidate medicine demonstrates promising results, its entire history from the early discovery to the development stage will be written in a 100,000-page report for regulatory review.

The lengthy report contains results and data analysis from the entire clinical development program, pre-clinical testing, and proposals for manufacturing and labeling. It also includes results of extensive studies that demonstrate the safety and efficacy of a potential medicine.

With understanding about diseases at the molecular level, potential new medicines go through the discovery process, which includes early phases of basic research, drug discovery, and pre-clinical stages.

The discovery process could take approximately three to six years of identifying an investigational drug and conducting initial laboratory tests. It involves identifying potential targets and eventually narrowing it to one lead compound, or a promising molecule that could influence the target and, potentially, become a medicine.

Another six to seven years are required for the next stage called the development process. Clinical trials are an integral part of the development process. These are conducted in three phases with specific purposes to help researchers answer particular questions on safety, efficacy, and the benefits and risks of the candidate medicine. It involves careful coordination in the various clinical trial sites and close monitoring of about 5,000 patients across the globe.

After hurdling the complex clinical trials stage, and when results indicate that a candidate medicine is both safe and effective, a biopharmaceutical company may now submit a new drug application (NDA) or biologics license application (BLA) to the regulatory agency requesting approval to market the drug.

Accelerating the availability of medicines to patients with serious diseases — or where there is an unmet medical need — is possible when the regulatory agency implements expedited approaches to accelerate the development and review of new medicines. The agency may grant a fast track, breakthrough therapy, accelerated approval, or priority review status to a medicine which meets its criteria.

A medicine under “fast track” status allows an expedited review of drugs that treat serious conditions and fulfill an unmet medical need. “Breakthrough therapy” status, on the other hand, provides for an expedited development and review of drugs that may demonstrate substantial improvement over available therapy.

“Accelerated approval” status gives accelerated approval for drugs that address a serious condition or fulfill an unmet medical need, based on a surrogate or an intermediate clinical endpoint.

“Priority review” status, meanwhile, accelerates regulatory agency evaluation of drugs that would have significant improvements in the safety or effectiveness of the treatment, diagnosis, or prevention of serious conditions.

The regulatory agency, on the other hand, reviews the report containing all the results of the studies with their own scientists, physicians and statisticians. They will weigh the benefits and risks of the potential medicine and decide whether to grant approval. They may also ask for additional data before granting approval or convene an independent expert advisory panel to further review the data submissions.

(For more information about R&D, read the “Biopharmaceutical Research and Development: The Process Behind New Medicines” on phrma.org.)

(To be continued)

Medicine Cabinet is a column of the Pharmaceutical and Healthcare Association of the Philippines (PHAP), representing the research-based medicines and vaccines sector in the country. The author is the executive director of PHAP. E-mail the author at medicinecabinet@phap.org.ph.

Captain picks

No eyebrows were raised when United States captain Steve Stricker last week chose Phil Mickelson to be one of his two at-large picks for the 2017 Presidents Cup. It didn’t matter that the 47-year-old veteran carried a spotty record for the season and finished 15th in points standings. As far as the skipper was concerned, the unique blend of leadership, commitment, and experience slated to be provided by the 42-time PGA Tour winner trumped perceived performance deficiencies.

All the same, Stricker couldn’t have been anything but pleased by Mickelson’s sixth-place finish at the Dell Technologies Championship the immediate past weekend. If nothing else, it underscored the strides the Hall of Famer had been making to a hitherto-iffy game. So previously mediocre was he that he actually wound up splitting with longtime caddie and close friend Bones Mackay in an effort to get something — anything — going.

For Stricker, it doesn’t hurt that Mickelson is beloved in the Tri-State Area, not to mention a member of the Liberty National Golf Club, where the Presidents Cup will be held late this month. As he noted in the formal presser of the biennial event, “The way the people have treated me and my family has been remarkable…To be able to play in the Metropolitan area, where the fans are so supportive, is exciting. And to do it in the golf course I love is just as meaningful.”

Significantly, Mickelson’s selection keeps alive his streak of appearances in the Presidents Cup since its inaugural in 1994. And while he will likely be less busy inside the ropes through his 12th tour of duty, he figures to be just as influential in the sidelines. Not for nothing has he invariably been viewed as the consummate teammate. “He adds so much to the team,” Stricker said. “Great in the team room, great in the golf course, and it would [have been] hard to imagine not having him on the team.” Simply put, his importance to the cause of the hosts cannot be understated. Whether as a player, or as a mentor, or as a de facto vice-captain, he’ll stand front and center for the red, white, and blue.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Stocks extend rally as market sentiment improves

THE Philippine Stock Exchange index (PSEi) rose on Thursday, tracking Wall Street to hit a record, reaffirming investor interest in local equities.

The bellwether index climbed 91.03 points or 1.13% to close at 8,144.91. This is a new record high for the PSEi, besting the 8,127.48 finish logged on April 10, 2015.

The all-shares index rose by 39.56 points or 0.82% to 4,815.91.

“Philippine stocks traded higher as it challenged the previous all-time closing high today. Investors are anticipating the approval of a revised tax reform to be passed in October,” Luis A. Limlingan, business development head at Regina Capital Development Corp., said on Thursday.

“US stocks closed slightly higher on Wednesday, notching another record high, as a gain in the energy sector offset losses in tech,” he said. “President [Donald J.] Trump’s push for bipartisan support on tax reform helped to support the greenback with some short covering on the dollar ahead of next week’s FOMC (Federal Open Market Committee) meeting and expected details of the shrinking of the balance sheet.”

Wall Street edged up to a record high on Wednesday. The Dow Jones Industrial Average rose 39.32 points or 0.18% to 22,158.18 The S&P 500 gained 1.89 points or 0.08% to 2,498.37, and the Nasdaq Composite added 5.91 points or 0.09% to 6,460.19.

Mr. Limlingan also told Reuters that “some investors are also hopeful that the Senate will pass the tax reform measures next month.”

The House passed the tax reform bill in May aimed at generating revenue to fund a multibillion-dollar infrastructure program key to the government’s economic agenda.

“It seems money is now coming back after the ghost month. But the volume is not significant, so it’s too early to say that this is sustainable,” Joseph Y. Roxas, president of Eagle Equities Inc. told Reuters.

Analysts say China’s “ghost season” stalls momentum in the markets as some Chinese investors reduce trading during this period.

All counters finished higher, with property stocks leading the charge as it logged a 68.32-point rise or 1.79% to 3,876.61.

Holding firms rose by 123.86 points or 1.56% to 8,042.56; mining and oil jumped 143.47 points or 1.02% to 14,088.15; services gained 4.59 points or 0.26% to 1,726.32; financials advanced by 4.37 points or 0.22% to 1,982.68; and industrials rose 16.55 points or 0.14% 11,292.04.

Value turnover dropped to P8.45 billion from Wednesday’s P12.88 billion, with 1.26 billion  shares changing hands.

Advancing stocks totaled 111, outpacing decliners at 85, while 62 issues finished unchanged.

Foreigners however sold their shareholdings, with net outflows logged at P99.81 million yesterday, a reversal of the P3.34-billion net inflow seen on Wednesday. — V.V. Saulon with Reuters

Climate change and hurricanes: Do we need a smoking gun?

PARIS — Many climate scientists are convinced that mega-storms Harvey and Irma — which left scores dead and caused massive economic losses — were boosted by global warming, but hesitate to say so in as many words.

Call it the hurricane paradox.

On the one hand, top experts point to the laws of physics, computer modeling, and measurable increases in sea levels and the temperatures of both ocean water and the atmosphere — all pointing to destructive tropical cyclones.

Taken together, they are like the overwhelming body of circumstantial evidence a prosecutor might lay out in a murder trial.

On the other hand, there is something crucial missing: the fingerprints on the weapon, the smoking-gun proof that would convince a jury to lock up the culprit and throw away the key.

In climate science, that gold-standard evidence comes from observation over a long period of time.

“It is incredibly frustrating,” said Dann Mitchell, an expert on atmospheric circulation at the University of Bristol in England. “We still can’t say with 100% certainty that hurricane Irma was enhanced by climate change, while with other extreme events — such as heat waves — we can.”

A lot of scientists, however, think the case is already solid enough to nail down a conviction.

“The physics are very clear: hurricanes get their destructive energy from ocean heat,” said Anders Levermann, a professor at the University of Potsdam in Germany.

“Greenhouse gas emissions from burning coal, oil, and gas raise our planet’s temperatures and provide the energy for ever stronger tropical storms.”

And then there is the global ocean watermark, which has gone up 20 centimeters (eight inches) on average since the 1880s, and is set to rise far more by century’s end.

‘NOISY’ PHENOMENA
“We are extremely confident that sea level rise is happening and will continue to happen as the climate warms,” said Chris Holloway, a hurricane expert at the University of Reading. “This adds to the risk of storm surge flooding from any event,” he told AFP.

But — convincing as they may be — these remain “it stands to reason” arguments, not direct measurements of the major tropical storms known variously around the world as hurricanes, cyclones, and typhoons.

And that’s where things get a little dicey, and scientific opinion divides.

“Increased intensity of storms is an expected climate change signature, but it is too early to tell if this particular storm was enhanced in this way,” Mitchell said of Irma.

The problem, he and other scientists caution, is several-fold.

To begin with, major tropical storms — category 4 or 5 on the Saffir-Simpson scale, keyed to wind speed — are very rare compared to heat waves, drought, or intense bouts of rainfall.

In science, a small sample size makes it hard to pick out patterns, a problem exacerbated in this case by poor quality data only reaching back a few decades.

When it hit Texas in late August, Harvey rapidly jumped to a category 4 storm packing sustained winds of 209 to 251 km/h (130 to 156 mph), while category 5 Irma rampaged across the Caribbean blowing at nearly 300 km/h before losing steam as it moved over Florida.

Hurricanes are also “particularly ‘noisy’ phenomena,” said Mitchell.

Translation: Whether it’s heat waves or cyclones, discerning the fingerprint of human influence depends on being able to distinguish between the “noise” of natural fluctuations in weather and the patterns caused by man-made global warming.

DRIFTING POLEWARD
“It’s a little like listening to someone next to you speak with some very loud music in the background,” said Sally Brown, a research fellow at the University of Southampton.

“You have to ask the person to repeat themselves several times to be sure you understand.”

Some scientists say that clear trend lines have emerged despite these limitations.

“Globally we have observed over the past 30 years that the strongest storms are getting stronger due to warming oceans,” James Elsner, a professor of atmospheric science at Florida State University, told AFP.

“The evidence is already solid.”

Perhaps the strongest case that global warming has already exerted an influence on super-storms comes from Jim Kossin, a scientist at the US National Oceanic and Atmospheric Administration’s National Centers for Environmental Research.

In a 2014 study that went largely unnoticed in the media but sent shockwaves among his fellow hurricane experts, Kossin presented iron-clad evidence that all tropical cyclones around the world have been steadily drifting poleward for at least 30 years, at the rate of 50 to 60 kilometers (30 to 35 miles) per decade.

This, he showed, could only be caused by global warming.

“The historical data is sparse, mostly confined to the Atlantic, and not very good,” said hurricane guru Kerry Emanuel, co-director of the Lorenz Center at MIT in Boston.

“Kossin’s genius was to recognize that the latitude at which storms reach their peak could be identified easily even if the wind speed measurements for that storm were completely different than another storm.” — AFP

Trump, Democrats agree on DACA, but no border wall for now

WASHINGTON — Top US congressional Democrats emerged from a meeting with President Donald J. Trump Wednesday claiming progress on a deal that protects young immigrants and boosts border security, while not including a border wall.

Senate Minority Leader Chuck Schumer and top House Democrat Nancy Pelosi said they had a “very productive” dinner meeting with Mr. Trump in which the discussion focused on the fate of young immigrants who arrived in the country illegally as children.

Mr. Trump’s predecessor Barack Obama protected such immigrants, known as “dreamers,” through his Deferred Action for Childhood Arrivals (DACA) order.

But Mr. Trump rescinded that executive order, and urged Congress to craft a legal solution within the next six months.

“We agreed to enshrine the protections of DACA into law quickly, and to work out a package of border security, excluding the wall, that’s acceptable to both sides,” Mr. Schumer and Ms. Pelosi said in a joint statement.

The White House, which had earlier put out a muted statement about the “constructive working dinner” addressing tax reform, border security, DACA and the need for bipartisan solutions, quickly pushed back against the Democrats’ characterization.

“While DACA and border security were both discussed, excluding the wall was certainly not agreed to,” White House Press Secretary Sarah Sanders said on Twitter.

A Schumer aide also weighed in to clarify.

“The president made clear he would continue pushing the wall, just not as part of this agreement,” Matt House tweeted.

Mr. Trump has maintained his desire to build a wall, even threatening a government shutdown last month if he did not get his way. Funding for its construction would likely be pursued through budget talks and not DACA legislation.

But the progress that was apparently achieved at the dinner is another sign that the Republican president is comfortable dealing with the opposition, as much or more than the congressional leaders within his own party.

Last week, over the objection of House Speaker Paul Ryan, Mr. Trump struck a deal with Mr. Schumer and Ms. Pelosi to fund a hurricane relief package that also included a debt ceiling hike and three-month extension of government funding. — AFP

What to see this week

6 films to see on the week of September 15-22, 2017

The Mimic

The Mimic
A KOREAN horror movie, The Mimic revolves around the Jangsan Tiger, a mythical creature that mimics the voices of humans. Directed by Huh Jung, it stars Park Hyuk-kwon and Yum Jung-ah. “A familiar but slicky told piece that is perfect throwback horror fodder, with an excellent cast run through the genre mill,” writes thereelbits.com’s Richard Gray.
MTRCB Rating: R-13

9/11

9/11
FIVE PEOPLE find themselves trapped in an elevator in the North Tower of the World Trade Center on Sept. 11, and must work together to escape. Directed by Martin Guigui, it stars Charlie Sheen, Gina Gershon, and Whoopi Goldberg. “Proves so exploitative that its end credits’ dedication to the victims and first responders feels tawdry,” writes Frank Scheck of the Hollywood Reporter.
MTRCB Rating: R-13

Loving In Tandem

Loving In Tandem
A STAR CINEMA rom-com, Loving in Tandem follows a hopeless romantic wishing to meet the love of her life who suddenly meets him. Directed by Giselle Andre, it stars Edward Barber and Maymay Entratas.
MTRCB Rating: PG

American Assassin

American Assassin
MITCH RAPP, a CIA black ops recruit under the instruction of Cold War veteran Stan Hurley, are enlisted by the CIA Deputy Director to investigate a wave of random attacks on military and civilian targets. Together, the three discover a pattern in the violence leading them to a joint mission with a lethal Turkish agent. Directed by Michael Cuesta, it stars Dylan O’Brien, Michael Keaton, and Sanaa Lathan. “Works best when it’s trying to replicate the rhythms of a pulpy page-turner and least when pausing to consider the deeper implications of politics and personal reponsibility in a post-9/11 world,” writes Todd Gilchrist of The Wrap.
MTRCB Rating: R-16

American Made

American Made
POPULAR WITH the critics on review aggregate site Rotten Tomatoes, which gave the film an 88% “fresh” rating, American Made stars Tom Cruise as a TWA pilot recruited by the CIA to provide reconnaissance on Communists in Central America. He is eventually put in charge of a covert CIA operation that spawns the Medellin cartel and the Iran Contra scandal. Directed by Doug Liman, it also stars Domhnall Gleeson and Jayma Mays. “A sweat-slicked, exhausting but glibly entertaining escapade on its own terms, Americn Made is more interesting as a showcase for the dateless elasticity of Cruise’s star power,” writes Guy Lodge of Variety.
MTRCB Rating: R-13

The Last Face

The Last Face
A love affair between the director of an international aid agency in Africa and a relief aid doctor set against the backdrop of a political revolution. Directed by Sean Penn, it stars Charlize Theron and Javier Bardem. With a measly Rotten Tomatoes score 5%, the review aggregate site’s Critic Consensus says that the film’s “noble intentions are nowhere near enough to carry a fundamentally misguided story that arguably demeans the demographic is wants to defend.”
MTRCB Rating: R-16

Towards a resource efficient and pollution free Asia Pacific

By Shamshad Akhtar and Erik Solheim

SENIOR government officials from across Asia and the Pacific recently met in Bangkok for the first-ever Asia-Pacific Ministerial Summit on the Environment. The high-level meeting was co-convened by the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) and UN Environment and was a unique opportunity for the region’s environment leaders to discuss how they can work together towards a resource efficient and pollution-free Asia Pacific.

At the core of the meeting is the question: how can we use our resources more efficiently to continue to grow our economies in a manner that does not tax our natural environment or generate pollution affecting public health and ecosystem health?

Resources such as fossil fuels, biomass, metals and minerals are essential to build economies. However, the region’s resource efficiency has regressed in recent years. Asia is unfortunately the least resource efficient region in the world. In 2015, we used one third more materials to produce each unit of GDP than in 1990. Developing countries use five times as many resources per dollar of GDP in comparison to rest of the world and 10 times more than industrialized countries in the region. This inefficiency of resource use results into wastage and pollution further affecting the natural resources and public health which are the basic elements for ensuring sustainable economic growth.

As the speed and scale of economic growth continues to accelerate across the region, pollution has become a critical area for action. While the challenge of pollution is a global one, the impacts are overwhelmingly felt in developing countries.

About 95% of adults and children who are affected by pollution-related illnesses live in low and middle-income countries. Asia and the Pacific produces more chemicals and waste than any other region in the world and accounts for the bulk — 25 out of 30 — of cities with highest levels of PM 2.5, the tiny atmospheric particulate matter that can cause respiratory and cardiovascular diseases and cancer. More than 80% of our rivers are heavily polluted while five of the top land-based ocean plastic sources are from countries in our region. Estimates put the cost of marine pollution to regional economies at a staggering $1.3 billion.

If left unattended, these trends threaten to up end hard-won economic gains and hamper human development. But while these challenges appear intractable, the region has tremendous strengths and opportunities to draw from. Many countries hold solid track records of successful economic transformation. The capacity for promoting environmental sustainability as an integral pillar of sustainable development must now be developed across all countries in the region.

There are some profound changes underway in Asia and the Pacific. The region is experiencing the largest rural to urban migration in history. Developing these new urban areas with resource-efficient buildings, waste water and solid waste management systems can do much to advance this agenda.

Advancing the “sharing economy” might mean we have better utilization of assets such as vehicles, houses, or other assets, greatly reducing material inputs and pollution. The widespread move to renewable energy should rein in fossil fuel use. And advances in recycling, materials technology, 3-D printing, and manufacturing could also support greater resource circularity.

Moving to green technologies and eco innovation offer economic and employment opportunities. Renewable energy provided jobs for 9.8 million people worldwide in 2016. Waste can be converted into economic opportunities, including jobs.

In Cebu City — the second-largest city in the Philippines, concerted Solid Waste Management has borne fruit: waste has been reduced by 30% in 2012; treatment of organic waste in neigborhoods has led to lower transportation costs and longer use period in landfills. The poor have largely benefited from hundreds of jobs that have been created.

At the policy level, it is vital that resource efficiency and pollution prevention targets are integrated into national development agendas, and targeted legal and regulatory measures to enforce resource efficiency standards should be established.

For example, the Government of China has instituted a national system of legislation, rules and regulations that led to the adoption of a compulsory national cleaner production audit system that has been in place for more than 10 years. The direct economic benefits from this system is estimated to be more than $3 billion annually.

Further, we need an urgent reform of financial instruments. Too little capital is supporting the transition to green and resource efficient economy — a major portion of current investments is still in high-carbon and resource-intensive, polluting economies. Polluter pay principle and environmental externalities are not yet fully integrated into pricing mechanisms and investment models. The availability of innovative financing mechanisms and integrated evaluation methods are important for upscaling and replicating resource-efficient practices.

For example, the large-scale promotion of biogas plants in Vietnam was made possible by harnessing global climate finance funds. Several countries in the region area are already emerging as leaders in the development of comprehensive, systemic approaches that embed sustainable finance at the heart of financial market development, such as Indonesia and Sri Lanka, and we should draw from the positive lessons learned from these experiences.

Resource efficiency and pollution prevention must be recognized as an important target for action by science, technological, and innovation systems. This is important for the ongoing development of technology, and for scaling up technologies. Research shows that developing countries could cut their annual energy demand by more than half, from 3.4% to 1.4%, over the next 12 years. This would leave energy consumption some 22% lower than it would otherwise have been — an abatement equivalent to the entire energy consumption in China today.

We need to move to a more resource efficient and pollution free growth path that supports and promotes healthy environments. The cost of inaction for managing resources efficiently and preventing pollution is too high and a threat to economies, livelihoods and health across the region.

Shamshad Akhtar is the Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). Erik Solheim is the Executive Director of the United Nations Environment Program.

Diversity sounds great until companies are asked to show it

A MAJORITY of big companies say gender and racial diversity are key factors in picking a new director. Fewer than half are willing to show whether they are succeeding.

About 45% of companies disclose the gender of directors and about 40% reveal the race or ethnicity, according to a detailed analysis of the regulatory filings of 500 of the largest US-listed public companies by Equilar. That’s less than the 60-plus% that say each of those factors is important in picking board members, according to the study being released Wednesday.

“There is no standard” for how companies disclose such information, said Matthew Goforth, Equilar senior governance adviser and one of the study’s authors. “But if that were to happen, that would put more pressure on boards to diversify if they were perceived as being less diverse.”

Institutional investors such as State Street Global Advisors and BlackRock, Inc. are pressuring boards to add women as directors and are more likely than in the past to support shareholder proposals that call for better disclosure of diversity. Lacking federal requirements, such as those for disclosing director pay, the way companies are presenting the information varies widely.

Women lost ground on new board seats for the first time in eight years last year, taking just under 28% of the 421 open board seats in Fortune 500 companies, according to executive recruiter Heidrick & Struggles. The number of people of color appointed as directors fell in 2016 and the rate of minorities serving on boards has been mostly unchanged over the last decade, according to executive recruiter Spencer Stuart. 

The desire for more information exposes some of the difficulty in presenting it, Goforth said. Gender is more readily apparent than race, which more often than not requires the director to self-identify, he said. Where even a picture might let an investor determine gender, it can be less reliable for race or ethnicity, Goforth said. Also, in different countries, racial and ethnic diversity have different meanings where gender doesn’t, he said.

Some companies disclose the overall diversity of their board while others give the information for each director individually, Equilar found. The information is often in a chart or graphic, making it more difficult to find with keyword searches. Using one such search last year, an Equilar study found that only 13% of companies in the S&P 500 disclosed diversity in ways that were evident in the text.

Companies most likely to disclose the gender or racial diversity of their directors were in the health care and industrial goods sectors and the least likely were in basic materials, which includes energy and oil and gas companies, Equilar found.

Increasingly, the evidence is that diversity leads to better financial return and investors are pushing the business case, Goforth said. In a 2015 study, McKinsey found that companies with above-average gender equity are 15% more likely to outperform markets than those who lag the average. Last year, a Credit Suisse report determined that companies with a more diverse work force return more money to investors.

Different boards see diversity in different ways — for example, some may consider geographic diversity, age, experience and skills in finance or cybersecurity — adding to the complexity of reflecting the board makeup, Goforth said. If a standard is developed, it would likely have to let directors to describe their own race and gender, because there would be too much resistance to any sort of external designation.

“Ultimately, investors want to avoid the board becoming an echo chamber of 8-12 people sitting in a room,” Goforth said. — Bloomberg

Sopranos’ Frank Vincent, 78

LOS ANGELES – American actor Frank Vincent, who was known for his memorable gangster roles in Goodfellas and The Sopranos, died on Wednesday.

Television network HBO saluted Vincent on its Twitter account, saying, “Our family will never forget the Leotardo Legacy. RIP to an HBO legend.”

The reference was to Phil Leotardo, Tony Soprano’s ruthless antagonist at the end of the wildly popular series starring James Gandolfini, who died in 2013.

Celebrity news site TMZ said Vincent died of complications following open heart surgery in New Jersey. He had suffered a heart attack a week earlier.

According to his biography on the Internet Movie Database (IMDb) he was 78 years old.

The actor had standout gangster roles in Martin Scorsese’s 1980 film Raging Bull, Casino (1995) as well as Goodfellas (1990).

He also voiced the character of a Mafia boss in several Grand Theft Auto computer and video games.

His film credits also include The Pope of Greenwich Village (1984) and Spike Lee’s Do the Right Thing (1989). – AFP

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